2018 Credit Presentation

Economic backdrop Irish credit growth emerging Annual % Change 4 0 -4 -8 2012 2013 2014 2015 2016 Stock of lending to households Stock of lending to businesses (non-financial corporations)1 Solid growth in Ireland; UK growth also positive notwithstanding Brexit uncertainties 7.2% 6.8% 4.5% House price growth continuing in Ireland, softening in UK 9.0% 12.1% 6.5% kki kkı 1.8% 1.4% 1.4% 4.5% 2.6% 2017 2018e ■ROI GDP UK GDP (annual real growth) 2019f 2016 2017 2017 2018 2018 Credit Presentation Unemployment rate trending down in Ireland, remains historically low in UK 6.7% 5.7% 5.0% 4.4% 4.1% 4.1% 0.5% 2018 ROI residential property prices national (change, Dec on Dec) UK residential property prices national (change, Dec on Dec) Sources: Bank of Ireland Economic Research Unit, CSO, Office for National Statistics, Nationwide, Central Bank of Ireland Forecasts assume current UK-EU trading arrangements continue to apply 1 Banks balance sheet basis, excludes loan sales and securitisations 2017 2018 2019f ROI unemployment rate UK unemployment rate (annual average) Bank of Ireland 4

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