Investor Presentaiton

30.01 Bank of Ireland Group Property market recovering Residential and commercial activity improving Residential transactions up c27% year-on-year in Jan - Aug 2015 (cash purchases c.50% of market in H1 2015) Volume of mortgages up 44% year-on-year in H1 2015; cost of servicing average 25 year mortgage < 30% of gross income versus peak of c. 45% House prices rising, albeit at a slower pace than in 2014 Supply shortages in urban areas - supporting construction activity Property Prices and Rents Public finances improving 7-year consolidation programme ended in 2014 Budget 2016 package injects €1.5bn into economy Deficit projected to fall to 2.1% of GDP this year; debt to GDP ratio down to 97% by year end and Euro area average by end of 2016 Ireland is fully engaged in debt markets, sovereign yields at low levels (approaching semi-core, well below peripherals), rating upgraded General Government Deficit 20.0 10.0 0 -10.0 -20.0 -30.0 2011 2012 2013 0 -1- -2- -3- -4- 2014 2015 -5- Rents National National Ex Dublin Dublin Graph shows year-on-year change in residential property prices and private rents Source: CSO Commercial Capital Growth 21.7% Rental Growth 17.4% Graph shows year-on-year change Q3 2015. Source: IPD -6- 2013 2014 2015(f) Euro Area 2016(f) 2017(f) Ireland Graph shows general Government deficit as a % of GDP. Source: IE dept of finance stability programme and EU Com Spring outlook 18

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