Bank of Ireland 2019 Credit Presentation slide image

Bank of Ireland 2019 Credit Presentation

Capital - fully loaded CET1 ratio improved by 60bps Capital ratios - Dec 2019 Bank of Ireland 2019 Credit Presentation Total equity Less Additional Tier 1 Deferred tax Intangible assets and goodwill Foreseeable dividend' Expected loss deduction Other items² Common Equity Tier 1 Capital Credit RWA Operational RWA Market, Counterparty Credit Risk and Securitisations Other Assets/10/15% threshold deduction Total RWA Common Equity Tier 1 ratio Total Capital Ratio Leverage ratio Phasing impacts on Regulatory ratio Regulatory ratio (€bn) Fully loaded ratio (€bn) 10.5 10.5 (0.8) (0.8) (0.5) (1.0) (0.8) (0.8) (0.2) (0.2) (0.4) (0.4) (0.3) (0.4) 7.5 6.9 40.5 40.4 4.4 4.4 1.6 1.6 3.6 3.5 50.1 49.9 15.0% 13.8% 18.6% 17.4% 7.1% 6.5% • Deferred tax assets - certain DTAs are deducted at a rate of 50% for 2019, increasing annually at a rate of 10% thereafter until 2024 • IFRS 9 - the Group has elected to apply the transitional arrangement which, on a Regulatory CET1 basis, resulted in minimal impact from initial adoption and will partially mitigate future impacts in the period to 2022. The transitional arrangement allows a 85% add-back in 20194, decreasing to 70%, 50%, and 25% in subsequent years 1 Dividend deduction of €189m (c.40bps of CET1 capital), equivalent to an annualised dividend per share of 17.5c 2 Other items - the principal items being the cash flow hedge reserve, securitisation deduction and 10%/15% threshold deduction 3 Deferred tax assets due to temporary differences are included in other RWA with a 250% risk weighting applied 4 The IFRS9 addback to the Regulatory CET1 was c.15bps at 31 Dec 2019, reduced from c.18bps at 31 Dec 2018 Bank of Ireland 50 50
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