Investor Presentaiton

Capital Guidance and Distribution Policy Capital Guidance • The Group expects to maintain a CET1 ratio in excess of 13% on a regulatory basis and on a fully loaded basis by the end of the O-SII phase-in period¹ Distribution Policy • This includes meeting applicable regulatory capital requirements plus an appropriate management buffer The Group recommenced the payment of dividends with a payment of €124m equivalent to 11.5c per share in respect of the 2017 financial year • The Group expects that dividends will increase on a prudent and progressive basis and, over time, will build towards a payout ratio of around 50% of sustainable earnings • Dividend level and rate of progression will reflect, amongst other things: ° Strength of the Group's capital and capital generation; Board's assessment of growth and investment opportunities available; Any capital the Group retains to cover uncertainties; and Any impact from the evolving regulatory and accounting environments • Other means of capital distribution will be considered to the extent the Group has excess capital H1 2018 Position Regulatory rules require that a deduction is made at the half year in respect of potential dividends; in that regard the Group has made a deduction of €75m (c.20bps) in arriving at its CET1 ratio of 14.1% which is equivalent to an annualised dividend per share of 14c Bank of Ireland Group 'The Other Systemically Important Institution (O-SII) buffer will be introduced at 0.5% in July 2019, increasing to 1.0% in July 2020 and 1.5% in July 2021 39

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