Bank of Ireland 2019 Credit Presentation
Strong cost discipline - net reduction €67m (4%)
Cost Movement 2017-2019
€1,900m
€1,852m
€1,785m
Operating expenses¹
•
€104m
€113m
(€108m)
€41m
€108m
•
Bank of Ireland 2019 Credit Presentation
Gross cost savings of €108m (6%):
Process efficiencies, organisational design and sourcing
strategically
Portfolio disposals including UK cards
4% net reduction after absorbing wage inflation and higher
depreciation
€1,796m
€1,739m
€1,677m
•
Staff costs and average FTE down 2%
.
Cost income ratio reduced by 2% to 63%
2017
2018
Cost reduction Inflation / Investment
2019
Transformation Investment Charge Operating Expenses
Transformation
•
Investment of €263m split across the income statement
(41%), balance sheet (38%) and non-core items (21%)
Transformation Investment: €1.4bn (2016-2021)
Average of €275m p.a.
€306m
€263m
€195m
€105m
Outlook
• 2020 costs to be lower than 2019
• 2021 cost target lowered by €50m to €1.65bn
. Total transformation investment of €1.4bn 2016-2021
unchanged
2016
2017
2018
2019
2020
2021
1 See slide 44 for further detail
Bank of Ireland
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