2018 Credit Presentation
Underlying profit before tax of €935m
FY 2017
FY 2018
(€m)
(Єm)
Total income
3,049
2,805
Operating expenses (before levies and
(1,900)
(1,852)
regulatory charges)
•
Levies and Regulatory charges
(99)
(101)
Net Impairment (losses) / gains
(15)
42
Share of associates / JVs
43
Underlying profit before tax
1,078
41
935
Non-core items
(226)
(100)
Profit before tax
852
835
Net interest margin (NIM)
2.29%
2.20%
Adjusted ROTE¹
6.9%
7.2%
Dec 17
Dec 18
Customer loans (net)
€76.1bn
€77.0bn
•
Customer deposits
€75.9bn
€78.9bn
Non-performing exposures (NPES)
€6.5bn
€5.0bn
CET1 Ratios:
Fully Loaded
13.8%
13.4%
Regulatory
15.8%
15.0%
Total Capital Ratio: Regulatory
20.2%
18.8%
•
Liquidity Metrics:
LCR
136%
136%
NSFR
127%
130%
LDR
100%
97%
Leverage Ratios:
Fully Loaded
6.2%
6.3%
Regulatory
7.0%
7.0%
1 See Slide 52 for calculation
2018 Credit Presentation
Income Statement
Net interest income of €2,146m
Other income of €659m includes sustainable and diversified
business income of €672m
Operating expenses (before levies and regulatory charges) of
€1,852m; reduction of €48m (3%) vs. 2017
• Total transformation investment in 2018 of €306m
• Net impairment gains of €42m, reflecting positive economic
environment in Ireland and effectiveness of our NPE resolution
strategies
•
Non-core charge of €100m primarily related to costs
associated with the Group's restructuring programme
Balance Sheet
Group loan book of €77.0bn at Dec 2018 reflecting;
- New lending of €15.9bn; an increase of 13% vs. 2017
Redemptions of €14.6bn; 3% reduction vs. 2017
Customer deposits of €78.9bn predominantly sourced through
retail distribution channels
NPES of €5.0bn, 24% reduction during 2018
Strong organic capital generation continues; capital and
liquidity available to support growth
HoldCo senior investment grade ratings of Baa3, BBB- and
BBB from Moody's, S&P and Fitch. Positive Outlook for
Moody's and S&P (see Slide 20 for full ratings)
Bank of Ireland
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