2020 Interim Results

21 21 Strong cost discipline - €31m / 3% reduction €903m Cost Movement Bank of Ireland 2020 Interim Results Strong cost discipline - €31m / 3% reduction • (€47m) . €4m €12m €872m H1 2019 Cost initiatives COVID-19 costs Other costs H1 2020 • €31m / 3% net reduction after absorbing wage inflation of 2.6% Gross cost savings €47m: - Process efficiencies, organisational design and sourcing strategically (€21m) Change demand reduction and efficiencies driving lower levels of investment spend and value for money savings (€26m) COVID-19 costs €12m, incremental expenditure managing response to the pandemic Non-core items • €136m charge included in non-core related to impairment of intangible assets: Charge incurred on software assets, as no longer expected to provide future economic benefits No impact on capital ratios €27m of charges related to business model restructuring H1 2019 Non-core items (€m) H1 2020 (€m) Impairment on intangible assets (136) - Customer redress programme (62) (7) - Tracker Mortgage Examination (55) (7) - Other programme (7) Cost of restructuring programme (27) (27) • Investment return on treasury stock held 1 17 • for policyholders Other 27 Total non-core items (61) (153) Outlook 2020 costs to be lower than 2019 2021 costs to be below previous guidance of €1.65bn Bank of Ireland

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