H1 2020 Credit Presentation slide image

H1 2020 Credit Presentation

Regulatory Ratios Regulatory CET1 ratio Bank of Ireland H1 2020 Credit Presentation 40bps RWAS €50.1bn 50bps (25bps) (40bps) RWAS €47.9bn (10bps) (15bps) (60bps) 45bps 5bps 15.0% Impairment (190bps) IFRS9 Addback 60bps 55bps RWA reduction 35bps EL offset Net impact (40bps) (15bps) Regulatory capital demand 14.9% Dec 19 Pre-impairment 2019 Dividend organic capital CRD Phasing Credit deterioration Loan Growth/ Transformation. RWA² investment factor Definition of SME supporting Other / Pension Default / IRB Jun 20 generation¹ models Regulatory Capital Metrics CET1 Ratio Dec 19 15.0% Jun 20 14.9% Tier 1 Items/Instruments: 1.3% 1.4% Tier 1 Ratio 16.3% 16.3% Tier 2 Items/Instruments: 2.3% 2.4% Total Capital Ratio³ 18.6% 18.7% Risk Weighted Assets €50.1bn €47.9bn MREL Ratio Leverage Ratio 23.8% 7.1% 24.4% 6.8% CET1 Movement in CET1 ratio broadly aligned with movement in fully loaded ratios with reduced impact of credit deterioration due to IFRS9 addback Tier 1 & Total Capital No material change in Tier 1/ Tier 2 buckets pending further AT1 / Tier 2 issuance to meet increased Tier 1 / Tier 2 requirements following P2R composition change MREL . • AT1 and senior debt issuance of c.€0.75bn during H1 2020 MREL ratio of 24.4% based on RWA at Jun 2020 1 Pre-impairment organic capital generation primarily consists of attributable profit excluding impairment and movements in regulatory deductions 2 Loan Growth/RWA movements from net loan growth, changes in asset quality and book mix and movements in other RWAS 3 Further to EBA Q&A 2017_3329 the calculation of the Total Capital ratio is stated after a prudent application of the requirements of Articles 85/87 of CRR. The application of the requirements of Articles 85/87 by SSM banks is under review by the ECB Bank of Ireland 26
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