Bank of Ireland Financial Overview
118
Defined benefit pension schemes
Group IAS19 defined benefit pension (deficit)/surplus
3.60%
3.40%
€7.2bn
Bank of Ireland
Total Group defined benefit pension scheme assets (%)
€7.2bn
€8.4bn
€8.9bn
€9.6bn
€6.9bn
€7.1bn
2.10%
2.00%
1.30%
1.35%
55%
65%
65%
69%
66%
66%
69%
0.80%
€0.70bn
€0.60bn
€0.68bn
21%
23%
23%
21%
24%
29%
25%
24%
12%
12%
10%
10%
(€0.23bn)
(€0.48bn)
Dec 17
Dec 18
(€0.14bn)
(€0.13bn)
5%
6%
Dec 17
Dec 18
Dec 19
Dec 20
Dec 21
Dec 22
Dec 23
Dec 19
Dec 20
Dec 21
Dec 22
Dec 23
Credit/LDI/Hedging
EUR discount rate
IAS19 DB pension (deficit)/surplus
IAS19 pension sensitivities
(Dec 2017 / Dec 2018 / Dec 2019 / Dec 2020 / Dec 2021 / Dec 2022 / Dec 2023)
€m
88
Interest rates¹
Credit spreads²
107
108
Inflation³
4
128
06
102
121
137
3
Global equity4
1 Sensitivity of Group funding requirement to a 0.25% decrease in interest rates
2 Sensitivity of IAS19 liabilities to a 0.10% decrease in credit spread over risk free rates
Sensitivity of Group funding requirement to a 0.10% increase in long term inflation
4 Sensitivity of Group assets to a 5% movement in global equity markets with allowance for other correlated
diversified asset classes
73
•
•
•
Listed equities Diversified assets¹
1 Diversified assets includes infrastructure, private equity, hedge funds and property
IAS19 net pension surplus of €0.68bn at Dec 2023 (€0.7bn net surplus Dec 2022).
Schemes in surplus €0.69bn, schemes in deficit €0.01bn
Both euro and sterling discount rates decreased over the year (20 bps and 25 bps
respectively). The euro discount rate change was due primarily to reductions in long
term risk free interest rates, while the sterling discount rate change was a combination
of reductions in the corporate bond credit spreads and long term risk free interest rates
The discount rate reductions resulted in an increase in Group DB pension scheme
liabilities, partially offset by a corresponding increase in the interest rate hedging assets
Long term euro inflation assumptions (2.3%) and sterling inflation assumptions (3.15%)
reduced in the period (30 bps and 15 bps respectively). The resulting decrease in
liabilities was partially offset by the decrease in inflation hedging assets
Further progress was made over the course of the year on the de-risking of the
investment strategy of the BSPF, the Group's largest pension scheme. When completed
this will result in a further reduction in return-seeking assets and illiquid assets, and an
increase in Credit/LDI/ Hedging assets
The IAS19 pension sensitivities graphs demonstrate the reduction over recent years in
the sensitivity of the Group's pension schemes to movements in interest rates, credit
spreads, inflation and equities
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