Bank of Ireland H1 2020 Credit Presentation
Impairment coverage increased to 2.7%
Net impairment charge
€77m
€76m
€37m
€25m
€6m
Mortgages (ROI) Mortgages (UK)
€365m
corporate
€246m
€24m
€124m
(€11m)
Property and
construction
Consumer
Non-property
SME and
- H1 2019 I H1 2020
Impairment loss allowance (ILA) by portfolio
Dec-19
Jun-20
ILA % of
ILA % of
ILA
ILA
gross
gross
(€m)
(€m)
loans
loans
Mortgages ROI
369
1.6%
448
2.0%
Mortgages UK
63
0.3%
133
0.6%
Non-property SME and
487
2.4%
818
4.0%
corporate
Property and construction
230
2.8%
455
5.6%
Consumer
159
2.8%
268
5.1%
Total
1,308
1.6% 2,122
2.7%
Stage 1 impairment coverage
0.2%
0.7%
Stage 2 impairment coverage
3.4%
3.4%
31.5%
29.4%
Bank of Ireland H1 2020 Credit Presentation
Impairment coverage increased to 2.7%
•
•
Net impairment charge €888m1 / 222bps (H1 2019:
21bps) on loans and advances to customers
Increased impairment charge driven by:
-
-
Change in macro-economic outlook due to COVID-19
Estimated future credit migration related to payment
breaks
Actual loan loss experience (€0.3bn) primarily in
corporate and property portfolios, including €0.2bn
on legacy property exposures
60% of impairment charge recognised on performing
Stage 1 and Stage 2 loans
ILA increased by €0.8bn to €2.1bn since Dec 2019,
€0.5bn of increase on performing Stage 1 and Stage 2
loans
Group impairment coverage increased from 1.6% to
2.7% at June 2020
Stage 3 impairment coverage
1 Net impairment charge €888m on loans and advances to customers, net impairment charge on other financial instruments €49m,
total net impairment charge €937m
Bank of Ireland
17View entire presentation