Q1 2020 IMS Presentation
Net impairment charge 133bps in Q1 2020
Net impairment (charges) / gains bps
5pbs
(2pbs)
(26bps)
(133bps)
2017
2018
2019
Mar 201
Ireland
GDP1
Unemployment²
Economic outlook
2019
2020 (f)
2021 (f)
5.5%
(8.0%)
7.5%
5.0%
13.5%
8.0%
Bank of Ireland Q1 2020 IMS Presentation
Net impairment charge €266m / 133bps
•
At Q1 2020, no loan loss outcomes related to COVID-19
have been experienced
Charge includes COVID-19 management overlay of
€250m; primarily reflecting the initial impact of IFRS 9
Forward Looking Information (FLI) driven by deterioration in
macroeconomic outlook
Charge does not reflect any material migration from Stage 1
to Stage 2 loans
H1/H2 2020 impairment will capture combination of:
Potential for updated FLI impacts
Significant increase in credit risk with credit migration of
loans from Stage 1 to Stage 2
Actual loan loss experience
There are a range of published macroeconomic scenarios
and the outlook remains uncertain
UK
2019
2020 (f)
2021 (f)
GDP1
1.4%
(8.5%)
6.5%
Unemployment²
3.8%
9.0%
6.2%
Source (Economic outlook): Forecasts by Bank of Ireland Economic Research Unit
1 Annual real growth
2 Annual average
Bank of Ireland
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