Bank of Ireland 2019 Credit Presentation

25 25 Strong capital generation and robust capital position Bank of Ireland 2019 Credit Presentation RWAs €48.2bn 13.2% 170bps Fully loaded CET1 ratio Increased by 60bps 40bps (50bps) (50bps) (40bps) (10bps) RWAS €49.9bn Capital Generation . 13.8% • Growth in loan book • Jan 19 CET1 (post IFRS 16 Organic capital Capital Loan Transformation Dividend initiatives Growth/RWA2 investment Other (inc. pension) Dec 19 impact 20bps) generation' Robust Capital Position • Fully loaded CET1 ratio of 13.8% • Regulatory CET1 ratio of 15.0% . Regulatory Total Capital ratio of 18.6% Outlook • 2020 CET1 capital ratio to benefit from organic generation and capital initiatives • • Transformation • Regulatory capital Dividend / distributions 1 Organic capital generation primarily consists of attributable profit and movements in regulatory deductions 2 Loan Growth/ RWA primarily consists of RWA movements from net loan growth and changes in asset quality and book mix • Capital Management Organic capital generation of 170bps in 2019 Capital initiatives of 40bps in 2019: Securitisation ROI BTL mortgage NPEs (c.30bps) Sale of UK credit card portfolio (c. 10bps) Continuing to pursue opportunities to unlock capital in balance sheet Net lending growth of €2.0bn (c.50bps) in 2019 CET1 of c.30-35bps p.a. to support further net lending growth in 2020 and 2021 Investment of €263m (c.50bps) in 2019 Average investment of 50-60bps p.a. to 2021 Investment to continue beyond 2021 at a lower level of capital investment Net impact of evolving regulatory framework including EBA and ECB guidelines expected to consume up to 80bps of CET1 by end 2021, with the majority expected in H1 2020 Unchanged dividend policy Dividend increased by 9% to 17.5c per share, €189m / 40bps (2018: 16c / €173m / 40bps) Bank of Ireland

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