Investor Presentaiton
Strategic investment and rigorous allocation
of capital
Bank of Ireland 2018 Results Announcement
Organic capital generation
(180bps)
1
Growth in
loan book
200-250bps
Investment / allocation of capital in 2018
CET1 of c.200-250bps to accommodate c.20% in loan book growth over 4 years
(2018-2021)
Net lending growth of €1.3bn in 2018 (c.40bps)
2
Transformation
50-60bps p.a.
3
4
•
Transformation Programme: investment of 50-60bps p.a.
Transformation investment of €306m (c.60bps) in 2018
On track to reduce costs every year to €1.7bn in 2021
26
26
Regulatory
capital
demand
Dividend /
distributions
•
.
IFRS 16 impact of 20 bps on 1 Jan 2019
Capital resilience demonstrated in 2018 EBA Stress Test
Evolving regulatory framework including EBA and ECB guidelines (definition of default,
IRB models, NPE requirements, etc.) could consume c.80bps of CET1 by end 2020
Will pursue opportunities to unlock capital in balance sheet as appropriate
Dividend increased to 16c per share (€173m / 40bps) from 11.5c per share
(€124m / 25bps) in 2017
No change to dividend policy or guidance
Other means of capital distribution will be considered to the extent the Group has
excess capital
Bank of IrelandView entire presentation