2019 Interim Results Credit Presentation
Strong capital generation and robust
capital position
0.2%
13.2%
Fully loaded CET1 ratio
Increased by 40bps
2019 Interim Results Credit Presentation
90bps
(30bps)
(25bps)
(20bps)
30bps
(5bps)
13.6%
1 Jan 19
CET1
(post IFRS 16
impact 20bps)
Organic
capital
generation!
Loan Growth/
RWA²
Transformation
investment
Dividend Accrual
NPE Disposal
Other
Jun 19
CET1
CET1 ratio CET1 movements
25
25
Capital position
.
•
Strong capital position with fully loaded CET1 ratio of 13.6% at June 2019, net increase of 40bps during H1 2019
Continued organic capital generation with 90bps of capital generated in H1 2019
Securitisation of Irish BTL mortgage NPES (c.€0.4bn) completed in April 2019 unlocked 30bps of CET1 capital
No change to capital guidance;
The Group expects to maintain a CET1 ratio in excess of 13% on a regulatory basis and on a fully loaded basis by the end of the
O-SII phase-in period³
This includes meeting applicable regulatory capital requirements plus an appropriate management buffer4
1 Organic capital generation primarily consists of attributable profit and movements in regulatory deductions
2 Loan Growth / RWA primarily consists of RWA movements from net loan growth and changes in asset quality and book mix
3 The Other Systemically Important Institution (O-SII) buffer was introduced at 0.5% in July 2019, increasing to 1.0% in July 2020 and 1.5% in July 2021
4 The Central Bank of Ireland has requested the power to introduce a Systemic Risk Buffer (SyRB) in Ireland, which could increase capital demand.
The size, timing and application of any potential SyRB are currently unknown
Bank of IrelandView entire presentation