2018 Credit Presentation

Robust capital ratios CET1 ratios: Fully Loaded Regulatory Dec 2017 Dec 2018 2018 Credit Presentation Tier 1 & Total Capital • Tier 1 and Total Capital ratios reflect growth in the CET1 ratio in the period and movement in the haircuts associated with subordinated debt issued by BOIG subsidiaries¹ Total Capital ratios also include the partial amortisation of Tier 2 instruments 13.8% 13.4% 15.8% 15.0% • Tier 1 ratios: Fully Loaded 14.9% 14.4% Regulatory 17.0% 16.0% Total Capital ratios: Fully Loaded 17.9% 17.2% Regulatory 20.2% 18.8% MREL: MREL ratio 23.1% Leverage ratios: Fully Loaded 6.2% 6.3% Regulatory 7.0% 7.0% Risk Weighted Assets: Fully Loaded €44.8bn €47.6bn Regulatory €45.0bn €47.8bn 23 23 MREL • MREL target of €13.3bn (representing 26.4% of RWA at Dec 2016) to be met by 1 Jan 2021: - MREL issuance of c.€1.2bn completed in 2018 - Improved MREL ratio of 23.1% at Dec 2018 up from 21.6% at Jun 2018 (based on RWA at Dec 2018 and Jun 2018 respectively) Modest MREL eligible issuance expected of c.€1bn - €2bn p.a. Risk Weighted Assets • RWA has increased from €45.0bn at Dec 2017 to €47.8bn at Dec 2018 primarily driven by loan book growth, RWA mix and the impact of ROI Mortgage TRIM exercise 1 Further to EBA Q&A 2017_3329 the calculation of Tier 1 and Total Capital ratios is stated after a prudent application of the requirements of Articles 85/ 87 of CRR. The application of the requirements of Articles 85 /87 by SSM banks is under review by the ECB Bank of Ireland

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