IAS19 Defined Benefit Pension + Mortgage Portfolio Analysis
Diversified loan book and strong asset quality
Group loan book segment mix (net)
Consumer
€5.7bn
Property and
7%
Construction
10%
€7.8bn
€80.5bn
25%
■Non-property SME
and corporate
€20.5bn
1.8%
3.6%
€2.6bn
€12.6bn
€57.8bn
Ireland Mortgages
38%
€31.0bn
20%
UK Mortgages
€15.4bn
Group loan asset quality
1.7%
3.6%
€2.9bn
€13.8bn
€65.1bn
Dec 22
Jun 23
Stage 1
Stage 2 Stage 3
ILA coverage
NPE %
Bank of Ireland
Considered approach to customer lending
•
Disciplined credit underwriting approach based on adherence to
prudent risk appetite, credit policies, and portfolio and single-name
concentration limits
Loan book strongly collateralised
•
.
Weighted average LTV of Ireland mortgages 53%; H123 new lending 76%
Weighted average LTV of UK mortgages 56%; H123 new lending 71%
Property and Construction portfolio c.10% of Group loan book; c.90%
of CRE lending in investment property, weighted average LTV of 59%,
c.70% in Ireland
Non property SME and corporate includes acquisition finance book of
c. €4.9bn with strong credit track record; CRT covers c.50% of this book
Prudent provisioning approach
Coverage of 1.7%; reduction in H123 primarily reflects KBCI transaction
Stage 2 loans increase of €1.2bn reflects model updates and SICR
assessments
NPE ratio stable vs Dec 2022 at 3.6%; KBCI transaction added €0.2bn in
NPES
Ambition to further reduce NPE ratio
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