2020 Results Announcement

Net interest income declines on surplus liquidity and low rate environment Net interest income / NIM Bank of Ireland 2020 Results Announcement €2,180m €2,167m €2,115m 286bps 282bps 281bps 23% 23% 26% (12bps) (19bps) (26bps) 2018 2019 2020 Loan asset spread¹ Liquid asset spread¹ Liquid assets as % of AIEAS 2.14% NIM movement (12bps) (4bps) 2bps 2.00% FY 2019 Liquid assets Structural hedge Lending mix FY 2020 20 20 Net interest income and NIM lower from surplus liquidity and low rates • Pricing discipline maintained across all portfolios Improved margins on new UK mortgage lending (+43bps in 2020 vs. 2019) Reduced yield on liquid assets and structural hedges the primary driver for income and margin decline - Liquid assets as a % of average interest earning assets increased to 26% in 2020 vs. 23% in 2019 Application of negative rates to business customers expanded to €8.5bn in 2020; further expansion in 2021 planned Reduction in funding costs of €31m in 2020; €55m on an annualised basis Lower wholesale funding costs (average wholesale funding yield c.30bps lower in 2020 vs. 2019) 1 Spread = Loan asset yield or Liquid asset (excl. NAMA bonds) yield less Group's average cost of funds Bank of Ireland

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