Investor Presentaiton
Underlying profit before tax of €500m
H1 2018
Net interest income of €1,076m, reduction of €75m vs. H1
2017 reflecting lower NIM (H1 2018: 2.23%) primarily due to
the cost of securities issued in advance of TRIM and MREL
during H2 2017
Other income of €322m includes:
H1 2017
(€m)
(€m)
Total income
- Net interest income
1,532
1,398
1,151
1,076
Other income (net)*
381
322
Total costs
(999)
(1,000)
- Operating expenses
(887)
(882)
- Transformation Investment charge
(49)
(51)
- Levies and Regulatory charges
(63)
(67)
Net Impairment (losses) / gains
(59)
81
Share of associates / JVS
18
21
Underlying profit before tax
492
500
Non-core items
(32)
(46)
•
•
Profit before tax
460
454
°
*Of which additional gains
16
10
Net interest margin (NIM)
2.32%
2.23%
Average EUR/GBP FX rates
0.86
0.88
•
Sustainable and diversified business income of €323m,
broadly in line with H1 2017
Additional gains of €10m (H1 2017: €16m)
Valuation and other adjustments on financial instruments
- net charge of €11m (H1 2017: net gain of €38m)
Operating expenses of €882m, broadly in line with H1 2017;
reduction of €27m (3%) vs. H2 2017
Transformation investment in H1 2018 of €141m (CET1
ratio impact of c.30bps):
€51m charged to the income statement (36%)
€39m capitalised as intangible asset (28%)
€51m charged as non-core restructuring costs (36%)
Net impairment gains of €81m, reflecting successful
resolution strategies and the positive economic environment
and outlook in Ireland
Non-core charge of €46m primarily related to costs
associated with the Group's restructuring programme
Bank of Ireland Group
'Comparative figures have been restated to reflect the impact of: (i) the voluntary change in the Group's accounting policy for Life assurance operations
in H2 2017 and (ii) the reclassification of €6 million of costs from the Transformation Investment charge (formerly the Core Banking Platform Investment
charge) to Operating expenses (before Transformation Investment and levies and regulatory charges) for the six months ended 30 June 2017
2Transformation Investment charge was previously disclosed as 'Core Banking Platforms Investment', it has been updated for the six months ended 30
June 2018 to include the broader scope of Transformation covering Culture, Systems and Business Model
9View entire presentation