2019 Interim Results Credit Presentation
NPE ratio now at 5.3%; a reduction of
100bps in six months
Non-performing exposures (NPEs)
€5.9bn
7.5%
€5.0bn
220bps reduction in 12 months
6.3%
€4.2bn
5.3%
Jun 2019
•
Jun 2018
Dec 2018
NPEs as a % of gross customer loans Non-performing exposures
18bps
€72m
Net impairment gains /(charges)
(9bps)
(21bps)
2019 Interim Results Credit Presentation
Asset quality continues to improve
. NPE ratio improved by 100bps to 5.3% in H1 2019
•
NPES of €4.2bn, a reduction of €0.8bn (16%) during H1
2019; NPE reductions achieved broadly within impairment
loss allowance
NPE resolution strategies
•
•
Irish Buy to Let mortgage securitisation (c.€0.4bn) was
executed in April 2019, unlocking 30 bps of CET1 capital.
Further c.€0.2bn of loans prioritised for transaction in
H2 2019
NPE reduction strategies will be kept under review to respond
to the associated and evolving regulatory framework
Expect further reductions in H2 2019 and beyond. Pace will
be influenced by a range of factors including new 'Definition
of Default' regulatory rules expected to be implemented by
the Group during 2020
Net impairment charge of €81m / 21bps in H1 2019
•
Net impairment charge on loans and advances to customers
of €81m for H1 2019 (21bps)
Absent a change in the economic environment or outlook,
expect net impairment charge to be in the range of 20bps -
30bps p.a. during 2019-2021
Bank of Ireland
(€36m)
•
(€81m)
HT 2018
H2 2018
H1 2019
Net impairment gains /(charges) Net impairment gains /(charges) bps
13View entire presentation