2020 Results Announcement

Structural hedge, liquid assets and negative rate deposits Bank of Ireland 2020 Results Announcement Interest income from structural hedge and liquid assets reducing from low interest rate environment Structural Hedge¹ Liquid Assets Structural hedge & liquid assets • Average volume €33.3bn €35.6bn €23.4bn €27.6bn €165m €124m €95m Interest €60m income €67m €70m €64m 2019 2020 2019 EUR GBP €13m 2020 Liquid Asset interest income Increased application of Negative Interest Rates delivering reduction in funding costs Year-end deposit volume on Negative Rates €2.7bn €8.5bn €55m €31m €18m €13m 2019 2020 Annualised reduction in funding costs Actual reduction in funding costs 1 Gross interest income from fixed leg of hedging swap - Average structural hedge volume in 2020 of €35.6bn (EUR 84%, GBP 16%); c.73% of equity and credit balances hedged and weighted average life of c.3.5 years In 2020, €4bn of hedges matured at 0.51% and were replaced at (0.40%) Liquid Asset income primarily impacted by higher liquid asset volumes at negative yields and the impact of lower EUR and GBP rates 2021 interest income from structural hedge and liquid assets is expected to reduce as the low interest rate environment persists Negative Interest Rates • • As a mitigant to the negative interest rate environment, the application of negative interest rates to non-personal customers was expanded during 2020 - - Volume of customer deposits on negative rates increased to €8.5bn at Dec 20 vs. €2.7bn Dec 19 Reduction in funding costs of €31m in 2020; €55m on an annualised basis The Group continues to evaluate options to expand the application of negative interest rates Bank of Ireland 37

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