Bank of Ireland H1 2020 Credit Presentation
Lower business income from reduced economic activity
Wealth and Insurance
Retail Ireland
Bank of Ireland H1 2020 Credit Presentation
14% decrease in business income
•
16% decrease in Wealth and Insurance:
New business sales (APE) decreased by 21% vs.
H1 2019
Decrease in existing book income due to COVID-19
impact on returns and experience vs. 2019
Retail Ireland 20% lower vs. H1 2019:
H1 2019
(€m)
H1 2020
(€m)
119
100
129
103
Retail UK
(11)
2
Corporate and Treasury
77
67
Group Centre and other
(3)
(6)
Business Income
311
266
-
Additional Gains
3
2
IFRS income classifications¹
10
(16)
Valuation and other items
18
(109)
Other Income
342
143
Business income by quarter
€152m
€144m
€167m
32%
•
-
Reduced economic activity driving lower current
account income
Decrease in FX income from reduced travel
Q2 card transactions 9% lower than Q1 2020
Retail UK €13m increase due to lower commissions paid
Corporate and Treasury income impacted by lower FX
income
Valuation and other items (€109m)
•
€114m
•
Falling equity markets and widening credit spreads
relating to unit linked assets and bond portfolio
valuations in Wealth and Insurance (€90m)
Financial instruments valuation adjustments and other
items (€19m)
Outlook
Q1 19
Q1 20
Q2 19
Q2 20
•
Increased economic activity and accelerated reopening
2020 business income to be 20%-30% lower than 2019
1 IFRS income classifications include c.€6m of interest income in H1 2020 on 'Life loan mortgage products' which on transition to IFRS 9
were mandatorily classified as FVTPL, with all income on such loans reported in 'net other income'. IFRS income classifications are fully
offset in net interest income
Bank of Ireland
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