Bank of Ireland 2021 Interim Results - Debt Investor Presentation

ILA sensitivity to macro-economic scenarios Bank of Ireland 2021 Interim Results - Debt Investor Presentation The following table indicates the approximate extent to which impairment loss allowance (ILA), excluding Group management adjustments, would be higher or lower than reported were a 100% weighting applied to the central, upside and downside future macro-economic scenarios respectively 30 June 2021 Impact of applying only a central, upside or downside scenario rather than multiple probability weighted scenarios¹ Total Multiple scenarios Central scenario Change in impairment loss allowance Upside scenario Downside scenario 1 Downside scenario 2 Impairment loss allowance €m Impairment loss allowance €m Impairment Impact % loss allowance €m Impact % Impairment loss allowance €m Impairment Impact % loss allowance €m Impact % 1,906 (82) (4%) (222) (12%) 223 12% 662 35% The following table indicates the approximate extent to which impairment loss allowances for the residential mortgage portfolios, excluding post model Group management adjustments, would be higher or lower than the application of a central scenario if there was an immediate change in residential property prices. Although such changes would not be observed in isolation, as economic indicators tend to be correlated in a coherent scenario, this gives insight into the sensitivity of the Group's impairment loss allowance to a once-off change in residential property values. 30 June 2021 Impact of an immediate change in residential property prices compared to a scenario impairment loss allowance Central scenarios Total Residential property price reduction of 10% Change in impairment loss allowance Residential property price reduction of 5% Residential property price increase of 5% Residential property price increase of 10% Impairment loss allowance €m Impairment Impairment loss allowance Impact % €m loss allowance €m Impact % Impairment loss allowance €m Impact % Impairment loss allowance Impact % €m 432 44 10% 20 5% (18) (4%) 33 (8%) Bank of Ireland 1 The scenarios outlined in the table are based on the FLI weightings outlined on page 52 53

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