Investor Presentaiton

Non-performing loans and impairment charges Significant reduction in non-performing loans and impairment charges €14.7bn €1.4bn Non-performing loan volumes €12.0bn €1.4bn €9.9bn €1.2bn €13.3bn €10.6bn €8.7bn Jun 15 Dec 15 Defaulted Loans Probationary Mortgages Jun 16 Net impairment charges on customer loans 48% 49% 49% Bank of Ireland Group Non-performing loan volumes¹ - €9.9bn €2.1bn reduction during H1 2016 Reductions in all asset classes Defaulted loans component of €8.7bn; down >50% from reported peak in June 2013 Expect further reductions in H2 2016 and beyond; pace influenced by a range of factors Impairment charges on customer loans Net charge of 21 bps for H1 2016 vs 28 bps in H2 2015 Gross H2 2016 impairment charge to remain at broadly similar levels Coverage ratio of 49% (49% at Dec 15) Expect normalised impairment charge of 30-35bps 36 bps 28 bps 21 bps H1 2015 H2 2015 H1 2016 Coverage ratio, being impairment provisions divided by non-performing loans Annual impairment charges on customer loans as a % of average gross loans for the period 1 Non-performing loans comprise defaulted loans plus probationary mortgages 9

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