Bank of Ireland 2019 Credit Presentation

Defined Benefit Pension Schemes Group IAS19 Defined Benefit Pension Deficit €313m 1.60% €1.19bn 2.10% 2.00% Bank of Ireland 2019 Credit Presentation Total Group Defined Benefit Pension Scheme Assets (%) €7.1bn 1.30% €7.2bn €7.2bn €8.4bn 58% 55% 65% 65% €0.48bn 17% 21% €0.23bn €0.14bn 21% 23% 25% 24% 12% 12% Jun 16 Dec 17 IAS19 DB Pension Deficit Dec 18 Dec 19 Jun 16 Dec 17 Dec 18 Dec 19 EUR Discount Rate Listed equities Diversified assets Credit / LDI / Hedging IAS19 Pension Deficit Sensitivities (Jun 2016 Dec 2017 / Dec 2018 / Dec 2019) €173m €162m €153m €181m €122m €128m €118m 102m €109m €90m €102m €71m €28m €28m €38m Interest Rates¹ Credit Spreads² Inflation³ Global Equity4 1 Sensitivity of Group deficit to a 0.25% decrease in interest rates 2 Sensitivity of IAS19 liabilities to a 0.10% decrease in credit spread over risk free rates 3 Sensitivity of Group deficit to a 0.10% increase in long term inflation 4 Sensitivity of deficit to a 5% decrease in global equity markets with allowance for other correlated diversified asset classes • 'Diversified assets includes infrastructure, private equity, hedge funds and property IAS19 Pension deficit of €0.14bn at Dec 2019 (€0.23bn Dec 2018). Schemes in deficit €0.27bn, schemes in surplus €0.13bn The net negative impact of changes in long term assumptions was substantially offset by the return on scheme assets The interest rate and inflation rate hedging strategies in the investment portfolios have largely offset the impact of the significant reductions in discount rates in 2019 • De-risking strategies have also reduced the schemes' sensitivity to global equity movements. Listed equity asset holdings have been reduced in favour of increases in Diversified assets and Credit / LDI / Hedging allocations • In 2019, the Group continued to support Trustees in further asset diversification and increasing the level of hedging BSPF asset returns of +17.3% and +5.9% were achieved over 1 year and 3 years respectively to end December 2019 Bank of Ireland 55

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