2022 Interim Results - Debt Investor Presentation
Significant buffer to potential MDA'
restrictions
Regulatory CET1 ratio vs. MDA Threshold
Bank of Ireland 2022 Interim Results - Debt Investor Presentation
16.0%
Jun-22
Regulatory
CET1 ratio
32.4%
MDA
6.2%
MDA
Buffer
4.7%
Buffer
1.5%
1.5%
1.5%
Pillar 1
Pillar 2
CCB
2.5%
2.5%
■O-SII
11.27%
9.77%-
1.27%
1.27%
CCYB
4.5%
4.5%
Jun-22
Future Regulatory
Regulatory CET1
CET1 requirement²
ratio requirement
MREL ratio vs. MREL-MDA Threshold
7.4%-
MDA
Buffer
MDA
Buffer
2.9%
c.5.5%
4.0%
c.24.0%
20.95%
SRB Target
CBR
•
•
Regulatory CET1 ratio of 16.0% at Jun 2022
Continued phase-in of existing transitional
adjustments expected to consume c.25bps per
annum in 2023/2024
Completion of KBCI transaction and transition to
IFRS17 expected to consume capital in Q1 2023
Jun 2022 Regulatory CET1 ratio of 16.0% provides a
buffer of c.6.2% to current MDA threshold
Future regulatory CET1 requirement reflects phase-in
of recently announced UK CCYB (1% from Dec 2023;
2% from Jul 2023) and ROI CCуB (0.5% from Jun 2023;
expected to increase to 1.5% from mid-2024)
Jun 22 MREL ratio of 32.4% (11.4% on a leverage basis)
provides a buffer of c.7.4% to current MREL-MDA
threshold
Future MREL requirement expected to increase
to c.29.5%, reflecting phase-in of O-SII and CCYB
requirements. MREL requirement of 7.6% on a leverage
basis
MREL eligible senior debt issuance of c.€1bn-€2bn p.a.
anticipated
Jun-22
MREL ratio
Jan-22
MREL requirement
Future MREL
requirement²
1 The Maximum Distributable Amount is determined as a percentage of attributable profits earned in the period to which the
buffer breach and MDA calculation pertains, and will vary depending on the extent of the breach of the CBR which is measured
in quartiles (bottom quartile - 0%, second quartile - 20%, third quartile - 40% and top quartile - 60% of profits)
2 Future capital and MREL requirements reflect expected increase in ROI CCYB to 1.5% and UK CCуB at 2%. The ROI CCYB
increase to 1.5% is expected by mid-2024 subject to approval by the Central Bank of Ireland.
Bank of Ireland
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