Investor Presentaiton
Defined Benefit Pension Schemes
Group IAS19 Defined Benefit Pension Deficit
1.60%
2.20%
2.30%
2.10%
2.05%
Mix of BSPF Defined Benefit Pension Scheme Assets (%)¹
€4.0bn
€5.5bn
€5.6bn
€1.19bn
45%
61%
61%
11%
€0.45bn
€0.49bn
€0.48bn
€0.26bn
21%
44%
18%
Jun 16
Dec 16
Jun 17
Dec 17
Jun 18
IAS19 DB Pension Deficit
EUR Discount Rate
Dec 12
Dec 17
24%
15%
Jun 18
IAS19 Pension Deficit Sensitivities
(Jun 2016 / Dec 2016 Dec 2017/ Jun 2018)
Listed equities Diversified assets² Credit / LDI / Hedging
'Graphs shows BSPF asset allocation. BSPF represents approx. 77% of DB Pension assets
2Diversified assets includes infrastructure, private equity, hedge funds and property
• IAS19 Pension deficit of €0.26bn at Jun 2018: schemes in
deficit €0.33bn, schemes in surplus €0.07bn
• The primary drivers of the movement were:
€313m
€176m
€173m €162m €162m €159m
€122m €124m €128m €123m
€118m 106m
€71m €55m
€28m €25m
Interest Rates¹
Credit Spreads²
Inflation³
Global Equity
*Sensitivity of Group deficit to a 0.25% decrease in interest rates
2Sensitivity of IAS19 liabilities to a 0.10% decrease in credit spread over risk free rates
3Sensitivity of Group deficit to a 0.10% increase in long term inflation
"Sensitivity of deficit to a 5% decrease in global equity markets with allowance for other correlated
diversified asset classes
.
Strong asset performance in H1 2018;
•
Positive impact of changes in long term assumptions; and
•
Deficit reducing contributions of €25m to BSPF
• The improvement in the pension deficit reduced the regulatory
capital deduction required by €160m (c.35bps)
• The Group continues to support the Trustees in taking action
to improve the correlation between assets and liabilities and
reduce volatility
Bank of Ireland Group
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