2019 Interim Results

Costs continue to reduce - - net reduction €30m (3%) €1.9bn Operating expenses continue to reduce €1,796m €1,739m €840m €104m 2017 €113m 2018 €63m 2019 2020 Operating expenses Transformation Investment charge Operating Expenses (including transformation investment charge) c.€1.7bn 2021 Bank of Ireland 2019 Interim Results Transformation of cost base continues • Expect operating expenses (including transformation investment charge) in 2019 to be lower than 2018 and to reduce every year to c.€1.7bn in 2021 Operating expenses (before levies and regulatory charges) of €903m reduced by €30m net (3%) vs. H1 2018 Operating expenses of €840m - down €42m (4.8%) • Staff costs decreased by €19m (5%) vs. H1 2018 reflecting; 4% lower average staff numbers - Changing staff mix with fewer management layers, partially offset by Wage inflation of c.2.6% under the Group Career and Reward framework Other costs and depreciation reduced by €14m from process efficiencies and strategic sourcing, partially offset by higher depreciation from investment in technology Includes cost reduction of €26m relating to exiting UK Cards and ATMs Transformation Investment charge of €63m • Total transformation investment in H1 2019 of €138m, in line with expectations €63m (46%) charged to the income statement Levies and Regulatory charges of €73m Expect levies and regulatory charges to total €115m - €120m for FY 2019 H1 2018 (€m) H1 2019 (€m) • Total staff costs 442 414 - Staff costs 369 350 - Pension costs 73 64 Other costs¹ 339 277 Depreciation¹ 101 149 Operating Expenses 882 840 Transformation Investment charge 51 63 Operating Expenses (before levies and 933 903 regulatory charges) Levies and Regulatory charges 67 73 Total Operating Expenses Average staff numbers 1,000 10,752 Cost-income ratio² 66% 976 10,368 65% 1 The adoption of IFRS 16 resulted in a decrease in other costs of €42m and an increase in depreciation of €38m 2 See Slide 51 for calculation Bank of Ireland 16

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