Investor Presentaiton
ROI Mortgages: €24.1bn
ROI Mortgages (gross)
27%
24%
26%
€25.0bn
28%
€3.9bn
€8.1bn
€1.2bn
€0.8bn
€0.8bn
€12.9bn
ROI Mortgages (gross)
€24.3bn
€24.1bn
€5.3bn
€7.3bn
€7.2bn
€5.8bn
€11.8bn
€10.9bn
€0.6bn
H1 2016
Pricing Strategy
•
H2 2016
New Lending Volumes¹
H1 2017
Market Share
H2 2017
Fixed rate led mortgage pricing strategy which provides value,
certainty and stability to our customers and to the Group
• Fixed rate products accounted for c.89% of our new lending
in 2017, up from c.30% in 2014
Wider proposition
• 7 in 10 ROI customers who take out a new mortgage
purchase a life assurance policy through BOI Group
•
3 in 10 ROI customers who take out a new mortgage take out
a general insurance policy through BOI Group with insurance
partners
Market Share
•
Market share grew in each quarter in 2017 from 26% in Q1
2017 to 29% in Q4 2017
•
Expect to re-enter the Irish mortgage broker market in 2018
Dec 15
Dec 16
Tracker Variable Rates Fixed Rates
Dec 17
LTV profile
Average LTV of 63% on existing mortgage stock at Dec
2017 (Dec 16: 72%, Dec 15: 80%)
• Average LTV2 of 69% on new mortgages in 2017 (Dec 16:
67%, Dec 15: 67%)
Tracker mortgages
•
€10.3bn or 94% of trackers at Dec 17 are on a capital and
interest repayment basis
• 78% of trackers are Owner Occupier mortgages; 22% of
trackers are Buy to Let mortgages
• Loan asset spread on ECB tracker mortgages was c.66bps³
•
in 2017, compared to Group net interest margin (including
ECB trackers) of 229bps in 2017
Trackers reduced by €0.9bn since Dec 16; this includes an
impact of €0.4bn of mortgages that are now on a tracker
rate following the adjustments made as part of the Tracker
Mortgage Examination Review in H2 2017
Bank of Ireland Group
Excluding portfolio acquisitions (H1 2016 - €0.1bn; H2 2016 - €0.1bn; H1 2017 - Nil; H2 2017 - €0.1bn)
2Note that the LTV on new business includes the impact of the acquired portfolios
³Average customer pay rate of 108bps less Group average cost of funds in 2017 of 42bps
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