Investor Presentaiton
Defined Benefit Pension Schemes
Group IAS19 Defined Benefit Pension Deficit
€313m
1.60%
€1.19bn
2.10%
2.00%
Bank of Ireland 2019 Results Announcement
Total Group Defined Benefit Pension Scheme Assets (%)
€7.1bn
1.30%
€7.2bn
€7.2bn
€8.4bn
58%
55%
65%
65%
€0.48bn
17%
21%
€0.23bn
€0.14bn
21%
23%
25%
24%
12%
12%
Jun 16
Dec 17
IAS19 DB Pension Deficit
Dec 18
Dec 19
Jun 16
Dec 17
Dec 18
Dec 19
EUR Discount Rate
Listed equities
Diversified assets Credit / LDI / Hedging
IAS19 Pension Deficit Sensitivities
(Jun 2016 Dec 2017 / Dec 2018 / Dec 2019)
€173m €162m €153m
€181m
€122m €128m
€118m 102m €109m
€90m €102m
€71m
€28m €28m €38m
Interest Rates¹
Credit Spreads²
Inflation³
Global Equity4
1 Sensitivity of Group deficit to a 0.25% decrease in interest rates
2 Sensitivity of IAS19 liabilities to a 0.10% decrease in credit spread over risk free rates
3 Sensitivity of Group deficit to a 0.10% increase in long term inflation
4 Sensitivity of deficit to a 5% decrease in global equity markets with allowance for other correlated
diversified asset classes
•
'Diversified assets includes infrastructure, private equity, hedge funds and property
IAS19 Pension deficit of €0.14bn at Dec 2019 (€0.23bn Dec 2018).
Schemes in deficit €0.27bn, schemes in surplus €0.13bn
The net negative impact of changes in long term assumptions was
substantially offset by the return on scheme assets
The interest rate and inflation rate hedging strategies in the investment
portfolios have largely offset the impact of the significant reductions in
discount rates in 2019
• De-risking strategies have also reduced the schemes' sensitivity to
global equity movements. Listed equity asset holdings have been
reduced in favour of increases in Diversified assets and Credit / LDI /
Hedging allocations
•
In 2019, the Group continued to support Trustees in further asset
diversification and increasing the level of hedging
BSPF asset returns of +17.3% and +5.9% were achieved over 1 year
and 3 years respectively to end December 2019
Bank of Ireland
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