Investor Presentaiton
Strong capital generation; dividend payments recommencing
12.3%
Fully loaded CET1 ratio movement
0.25%
1.40% (0.40%)
0.50%
(0.25%)
Dec 16 Organic
CET1
Care
Capital
Banking
Generation Platforms
Capital position
•
•
Investment
0.20%
13.8%
13.6%
Dividend
Credit Risk RWA
Transfer Methodology
Transaction Changes
Dec 17
CET1
1 Jan 2018
(post IFRS 9
impact)
CET1
Strong organic capital generation of 140bps in 2017;
•
Regulatory CET1 ratio of 15.8%
• Fully loaded CET1 ratio of 13.8%
•
Regulatory Total Capital ratio of 20.2%
Extent of capital volatility arising from interest rate and
inflation risks in the pension schemes materially reduced
following increased hedging; IAS19 pension scheme
deficit of €0.48bn2 (Dec 16: €0.45bn)
• Investments in Core Banking Platforms of c.40bps / €195m
Capital returns / dividends
• Dividend of 11.5c per share proposed and deducted from the
capital ratios in line with regulatory guidance (€124m)
Expect that dividends will increase on a prudent and progressive
basis and, over time, will build towards a payout ratio of around
50% of sustainable earnings
Capital guidance
•
IFRS 9 transition adjustments reduce the fully loaded capital ratios
by c.20bps on 1 Jan 2018
Capital benefit of CRT transaction (50bps) could be absorbed,
in full or in part, following the outcome of the TRIM process
expected during 2018
• RWA methodology changes include a revised regulatory
treatment relating to the maturity of certain corporate loans and a
reclassification of forborne collateral realisation loans to align with
EBA classifications
• The Group expects to maintain a CET1 ratio in excess of 13% on
a regulatory basis and on a fully loaded basis by the end of the
O-SII phase-in period³. This includes meeting applicable regulatory
capital requirements plus an appropriate management buffer
Bank of Ireland Group
1Organic capital generation primarily consists of attributable profit, RWA book size and quality movements and movements in regulatory deductions
2Deficit reducing contributions of c.€100m during 2017 have limited impact on regulatory ratios and do not impact fully
loaded capital ratios while the schemes are in deficit
³The Other-Systemically Important Institution (O-SII) buffer will be introduced at 0.5% in July 2019, phasing in at 0.5% per annum to 1.5% in July 2021
24View entire presentation