2019 Interim Results Credit Presentation
Transformation Investment of €1.4bn supporting growth
/ driving efficiencies
Costs will decrease every year in absolute terms
2019 Interim Results Credit Presentation
Investment: €1.4bn (2016-2021)
c.65%
c.65%
c.€1.9bn
€1,796m
€1,739m
€104m
2017
€113m
2018
2019
2020
Operating expenses Transformation Investment charge
Cost income ratio
c.50%
c.€1.7bn
€306m
Average of €275m p.a.
2021
2016
2017
2018
2019
2020
2021
Transformation investments are supporting growth and
driving efficiencies - Investor day targets
2018
H1 2019
Expected¹
Treatment
(€m)
(€m)
Total
(€m)
%
Cost target of c.€1.7bn in 2021
40%
Transformation Investment charge
113
63
176 40%
•
Costs reduce every year: 2018 - 2021
40%
Cost income ratio expected to improve from 65% to c.50%
in 2021
20%
Capitalised as Intangible Assets
Non-core restructuring costs
100
54
154 35%
93
21
114 25%
100%
Total
306
138
444 100%
50-60bps p.a. CET1 (bps)
60bps 25bps
1 As outlined at Investor Day in June 2018 in respect of the average investment of €275m p.a. for 2018-2021
Bank of Ireland
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