Bank of Ireland 2022 Interim Results slide image

Bank of Ireland 2022 Interim Results

Strong business performance in H1 2022 H1 2021 H1 2022 (€m) (€m) Net interest income 1,080 1,072 Business income 282 320 Additional gains, valuation and other items 36 Total Income 1,398 (3) 1,389 Operating expenses (837) (849) Levies and Regulatory charges (96) (95) Operating profit pre-impairment 465 445 Net impairment charges (1) (47) Share of associates /JVs 1 21 Underlying profit/(loss) before tax 465 419 Non-core Items (59) (84) Profit before tax 406 335 H1 2021 H1 2022 (€m) (€m) Net interest margin (NIM) 1.90% 1.73% Cost income ratio¹ 61% 61% Underlying earnings per share 33.6 27.3c Return on Tangible Equity (ROTE) - adjusted² TNAV² 8.8% 8.1% 789c 922c Bank of Ireland 2022 Interim Results H1 22 performance³ reflects positive business income momentum and continued focus on cost reduction, offset by market and TLTRO impact Operating profit pre-impairment -4% y/y reflecting Net interest income modestly higher excluding TLTRO impacts Business income4 +16% y/y reflecting increased customer activity and recovery from COVID-19 impacts in H1 21 Additional gains, valuation and other items (€3m) vs €36m in H1 21 Operating expenses +1% y/y; 1% lower excluding acquisitions and one-off investment to capture opportunities from exiting banks Net credit impairment charge of (€47m); consideration given to the current macro uncertainties Non-core items of (€84m); primarily comprise acquisition, Tracker Mortgage Examination and transformation costs Adjusted ROTE² of 8.1% 1 See slide 51 for calculation 2 Updated basis of calculation for adjusted ROTE, which excludes the pension surplus, is set out on slide 50 3 H1 22 reflects stronger yoy performance of €63m in net interest income, business income, costs and share of associates & JVs. Impairments are (€46m) higher and other impacts of (€63m) from lower TLTRO income, valuations, bond sales impact, additional investment costs, partially offset by positive FX impact 4 Including Share of Associates and JVs and excluding Davy Bank of Ireland 16
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