IAS19 Defined Benefit Pension + Mortgage Portfolio Analysis
Summary highlights
Capital
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RWA
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MREL
Economy
Asset Quality
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Bank of Ireland
Strong net organic capital generation of 180bps in H1 2023; expected to be broadly similar in H2
CET1 ratio comfortably above CET1 guidance of > 14%
Tier 2 index eligible following rating actions; Future capital issuance influenced by market conditions and
refinancing/ growth
IRB RWA density across largest customer loan portfolios continues to exceed a wide distribution of European peers
RWA density offers potential mitigation against future implementation of Basel IV
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Pro forma MREL ratio of 31.0% at Jun 2023¹. Future MREL requirement expected to increase to c.29.5%
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MREL eligible senior debt issuance of c.€1bn-€2bn p.a. anticipated; Green bonds will continue to form part of
capital and MREL issuance
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Ireland is set to be the EU's fastest growing economy for the fourth successive year with inflation moderating
Economic environment remains supportive; both Ireland and the UK have essentially full employment
•
Asset quality remains resilient; prudent coverage levels of 1.7% at Jun 2023
The Group's NPE ratio is unchanged from Dec 2022 at 3.6% following a material reduction in FY22; ambition to
further reduce NPE ratio
Includes MREL eligible senior debt issuance of €750m issued on 4 July 2023 and redemption of €600m on 10 July 2023.
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