Bank of Ireland 2019 Credit Presentation slide image

Bank of Ireland 2019 Credit Presentation

Underlying profit before tax of €758m FY 2018 (€m) FY 2019 (€m) Total income 2,805 2,836 • Operating expenses (before levies and (1,852) (1,785) regulatory charges) • Levies and Regulatory charges (101) (117) • Net Impairment (losses) / gains 42 (215) Share of associates / JVs 41 39 - Underlying profit before tax 935 758 - Non-core items (100) (113) Profit before tax 835 645 - Net interest margin (NIM) 2.20% 2.14% Adjusted ROTE 7.2% 6.8% - Dec 18 Dec 19 Customer loans (net) €77bn €79bn Customer deposits €79bn €84bn Non-performing exposures (NPEs) €5.0bn €3.5bn - CET1 Ratios: Fully Loaded 13.4% 13.8% • Regulatory 15.0% 15.0% Total Capital Ratio: Regulatory 18.8% 18.6% Liquidity Metrics: LCR 136% 138% NSFR 130% 131% . LDR 97% 95% Leverage Ratios: Fully Loaded 6.3% 6.5% Regulatory 7.0% 7.1% 1 On a constant currency basis Bank of Ireland 2019 Credit Presentation Income statement Operating profit pre-impairment increased 10% from higher income and lower costs Stable net interest income Other income up 4% 4% reduction in operating expenses Increased impairment charge reflects: More normalised level of impairments Losses on small number of cases in 2019 Non-core items include charges associated with: Tracker Mortgage Examination (€67m, of which €12m in H2 2019) Restructuring costs Balance Sheet Group loan book of €79.5bn at Dec 2019: New lending of €16.5bn increased by 3% in 20191 Redemptions of €14.5bn; in line with 2018 Customer deposits of €84bn predominantly sourced through retail distribution channels NPES of €3.5bn with NPE ratio now at 4.4%, a reduction of 190bps during 2019 Continued organic capital generation with 170bps of fully loaded CET1 generated in 2019 HoldCo senior investment grade ratings of Baa2, BBB- and BBB from Moody's, S&P and Fitch Bank of Ireland 10
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