Bank of Ireland 2020 Debt Investor Presentation
Meaningful buffer to potential MDA¹ restrictions
Regulatory CET1 ratio vs. MDA Threshold
5.4%
Current
MDA
Buffer
0.2%²
0.2%²
1.5%
1.0%
2.5%
2.5%
14.9%
Bank of Ireland 2020 Debt Investor Presentation
Regulatory CET1 ratio of 14.9% at Dec 2020
-
Continued phase-in of existing transitional adjustments
expected to consume c.20-40bps per annum to 2025
Previously guided 80bps impact of regulatory capital
demand by end 2021 is now materially complete
O-SII buffer expected to increase to 1.5% in Jul 2021
Dec 2020 Regulatory CET1 ratio of 14.9% provides a buffer
of c.5.4% to MDA threshold, reducing to c.4.9% from Jul
2021 as O-SII buffer increases
Dec 20
Regulatory CET1 ratio
1.27%
1.27%
4.5%
4.5%
Dec 20
Dec 21
Regulatory CET1 ratio requirement
- ССВ
Pillar 2 Requirement
Pillar 1
Tier 2 shortfall
O-SII
Further Tier 2 issuance could increase distance to MDA
threshold to c.5.6% (5.1% post Jul 2021)
MREL-MDA expected to come into effect from Jan 2022
1 The Maximum Distributable Amount is determined as a percentage of attributable profits earned in the period to which the
buffer breach and MDA calculation pertains, and will vary depending on the extent of the breach of the CBR which is measured in
quartiles (bottom quartile - 0%, second quartile - 20%, third quartile - 40% and top quartile - 60% of profits)
2 Assumes static capital stack with no incremental Tier 2 issuance
Bank of Ireland
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