Investor Presentaiton
Strategic progress with significant
improvement in UK performance in H1
Retail UK
Net interest income
Other income
H1 2019 H1 2020
£250m
H1 2021
£239m
£268m
Costs (excl. intangibles)
Operating profit
Impairment
JV income
£14m
Underlying profit/(loss)
Cost income ratio
Loan book
Deposits
NIM
(£6m) £1m
(£1m)
(£147m) (£136m) (£121m)
£97m £96m¹ £146m
(£31m) (£242m) (£2m)
£1m (£5m)
£80m (£145m) £139m
60%
56%
45%
£24.8bn £24.5bn £23.6bn
£19.2bn £19.5bn £16.9bn
1.81% 1.66% 1.95%
•
Increase in Bespoke mortgage lending mix and margin
1.84%
0.98%
0.67%
3%
8%
21%
•
97%
92%
79%
Bank of Ireland 2021 Interim Results - Debt Investor Presentation
52% improvement in operating profit in H1 2021 vs H1 2020
• 12% increase in net interest income
11% reduction in costs
Significantly reduced impairment charge
Travel restrictions continue to impact retail FX JV income
Lower lending balances (reduction of £0.9bn vs £24.5bn Dec 2020), in
line with strategy of lower volume, higher margin balance sheet
Reduction in deposits (£1.4bn lower vs £18.3bn Dec 2020) supporting
margin performance (c.11bps improvement in deposit margins in H1
2021 vs H2 2020)
Strategic actions to further improve returns
Growth in Bespoke² as a proportion of new mortgage lending, with
increased margins
Bespoke new lending of £259m in H1 2021 (up 170% vs H1
2020); now represents 21% of total new mortgage lending
(vs 8% H1 2020)
Bespoke has lower LTV (72% H1 2021) than standardised (80%)
Progress on cost initiatives including:
Northern Ireland branch closures commenced in June
>300 FTE (c.21%) leaving in 2021 under redundancy programme
Building blocks to increase UK returns remain:
-
-
Higher new lending margins - - a focus on value versus volume
Reduced funding costs
H119
H1 20
H1 21
Bespoke Margin
■Non-Bespoke Bespoke
1 Includes £8m goodwill intangible write-off
2 Bespoke is a personalised and flexible underwriting service for good quality more complex cases
Lower operating costs
Smaller balance sheet
Bank of Ireland
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