Investor Presentaiton
NIM - Strong commercial discipline on pricing
Bank of Ireland 2018 Results Announcement
2.23%
Average
Q1 - Q3 2018
NIM
2.20%
2018 Q4 NIM Movement
(3bps)
2.20%
(10bps)
2.10%
NIM-2.20% in 2018
.
Maintaining strong commercial discipline on pricing e.g.
recent price adjustments on Irish mortgages
Competitive pressures in UK mortgage market driving lower
front book pricing and shorter customer revert periods
Adjustment to UK mortgage revert period (10bps) in Q4 2018
reflects faster refinancing activity
UK competitive
pressures
Underlying
Q4 2018
Exit NIM
UK Mortgage
revert period
(Non-recurring)
Q4 2018
Reported NIM
2019 Outlook
Outlook for 2019 NIM
(3bps)
(1bps)
Underlying
Q4 2018
Exit NIM
UK Credit Cards
MREL issuance
c.2.16%
Expected
2019 NIM
Expect 2019 NIM to be c.2.16%:
-
-
Strategic repositioning of the UK cards portfolio adversely
impacts NIM by c.3bps
MREL issuance (c.1bps)
UK competitive pressures expected to be offset by
positive impact from new lending margins and strong
commercial discipline on pricing
Bank of Ireland
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