Investor Presentaiton
Asset Quality
Available for Sale Financial Assets
ROI
UK
France
Other
Dec 17
(€bn)
(€bn)
(€bn)
(€bn)
(€bn)
Dec 16
(€bn)
Sovereign bonds
4.8
0.5
0.8
1.4
7.5
5.2
Senior debt
0.3
1.8
2.1
1.7
Covered bonds
0.2
0.6
0.4
1.9
3.1
3.5
Subordinated debt
0.3
0.1
0.4
0.3
Asset backed securities
0.1
0.1
0.1
Total
5.3
1.2
1.5
5.2
13.2
10.8
AFS Reserve
0.34
0.34
0.35
Portfolio
2017
2018
•
During 2017, €1.8bn of Irish Government HTM bonds
were reclassified to AFS
Interest received on NAMA
subordinated bonds
IAS 39
IFRS 9
(€m)
(€m)
•
Weighted average credit rating of the AFS portfolio is
AAA to AA-
NAMA
•
The Group's holding of €0.5bn of NAMA senior bonds at
Dec 2016 was fully redeemed during 2017
• The Group holds NAMA subordinated bonds - €0.3bn
nominal value, valued at 104% (Dec 16 - 98%)
Interest coupon @ 5.264%
Amortisation of previous impairment¹
On transition to IFRS 9, the previous impairment is treated as an
adjustment to revenue reserves and is no longer amortised in
the income statement (NIM impact c.2bps); the Group's capital
position is unaffected
15
15
19
Recognised in Net Interest Income
34
15
Bank of Ireland Group
'In 2014, the Group revised its assumption as to future expected cash flows on the NAMA subordinated bonds, resulting in an impairment reversal of €70m
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