Bank of Ireland 2020 Debt Investor Presentation
Summary
Bank of Ireland 2020 Debt Investor Presentation
2020
Performance
€374m
Underlying loss
before tax
Return to profitability in H2 2020
6th straight reporting period of reductions; costs reduced by further
4% vs. 2019
Irish mortgage market share increased 2% to 25.5% in 2020
Asset Quality
5.7%
NPE Ratio
•
Impairment charge of €1.1bn; c.60% relates to performing loans
NPE ratio increased from 4.4% in 2019 to 5.7%; stable in H2
Payment break outcomes more positive than expected; 94%
concluded and only c.4% have migrated into 'new' arrears status¹
Transformation
Capital
c.€1.7bn
Cost target reached
14.9%
Regulatory
CET1 ratio
•
Achieved 2021 cost target of c.€1.7bn one year early
New cost target of €1.5bn by 2023
Further progress in the UK; Northern Ireland strategic review complete
Digital progress supports new branch strategy; c.33% of branches to close
Strong capital position; regulatory CET1 ratio 14.9% and c.510bps
headroom to minimum regulatory requirements; fully loaded CET1
ratio 13.4%
Pre-impairment organic capital generation of 80bps in H2 vs. 45bps
in H1
€975m AT1 capital issued in 2020
1 Balances now categorised as arrears that were not previously in arrears prior to payment breaks; as at 12 February 2021
Bank of Ireland
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