2019 Interim Results Credit Presentation

Capital Guidance and Distribution Policy 2019 Interim Results Credit Presentation Capital Guidance • The Group expects to maintain a CET1 ratio in excess of 13% on a regulatory basis and on a fully loaded basis by the end of the O-SII phase-in period¹ Distribution Policy • Dividend Accrual • This includes meeting applicable regulatory capital requirements plus an appropriate management buffer² • The Group expects that dividends will increase on a prudent and progressive basis and, over time, will build towards a payout ratio of around 50% of sustainable earnings • Dividend level and rate of progression will reflect, amongst other things: • Strength of the Group's capital and capital generation; - Board's assessment of growth and investment opportunities available; Any capital the Group retains to cover uncertainties; and Any impact from the evolving regulatory and accounting environments • Other means of capital distribution will be considered to the extent the Group has excess capital Regulatory rules require that an accrual is made at the half year in respect of potential dividends; in that regard the Group has made an accrual of €100m (c.20bps) in arriving at its CET1 ratio of 13.6% which would be equivalent to an annualised dividend per share of 18.5c 1 The Other Systemically Important Institution (O-SII) buffer was introduced at 0.5% in July 2019, increasing to 1.0% in July 2020 and 1.5% in July 2021 2 The Central Bank of Ireland has requested the power to introduce a Systemic Risk Buffer (SyRB) in Ireland, which could increase capital demand. The size, timing and application of any potential SyRB are currently unknown Bank of Ireland 52 59

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