2018 Credit Presentation

Defined Benefit Pension Schemes Group IAS19 Defined Benefit Pension Deficit 2018 Credit Presentation Mix of BSPF* Defined Benefit Pension Scheme Assets (%)¹ 1.60% €1.19bn 2.20% 2.10% 2.00% €0.45bn €0.48bn €0.23bn €4.0bn €5.5bn €5.6bn 45% 61% 72% 11% 21% 44% 18% Dec 12 Dec 17 23% 5% Dec 18 19 49 €313m Jun 16 Dec 16 IAS19 DB Pension Deficit Dec 17 Dec 18 EUR Discount Rate IAS19 Pension Deficit Sensitivities (Jun 2016 / Dec 2016 Dec 2017 / Dec 2018) €176m €173m €162m €162m €153m €122m €124m €128m €90m €118m €102m €71m €55m €28m €28m Interest Rates¹ Credit Spreads² Inflation³ Global Equity 1 Sensitivity of Group deficit to a 0.25% decrease in interest rates 2 Sensitivity of IAS19 liabilities to a 0.10% decrease in credit spread over risk free rates 3 Sensitivity of Group deficit to a 0.10% increase in long term inflation 4 Sensitivity of deficit to a 5% decrease in global equity markets with allowance for other correlated diversified asset classes Listed equities Diversified assets2 Credit / LDI / Hedging * BSPF = Bank of Ireland Staff Pensions Fund Graphs shows BSPF asset allocation. BSPF represents approx. 77% of DB Pension assets 2 Diversified assets includes infrastructure, private equity, hedge funds and property • IAS19 Pension deficit of €0.23bn at Dec 2018: schemes in deficit €0.27bn, schemes in surplus €0.04bn • The primary drivers of the movement were: - - Deficit reducing contribution of c. €82m to BSPF and c.€34m to other schemes Net positive impact of changes in long term assumptions and experience in 2018 • The Group has continued to support Trustees in diversifying asset portfolios away from listed equity into other return-seeking but potentially less volatile asset classes. In Q4 2018 the BSPF investment in listed equities was reduced from 15% to 5% • BSPF asset returns of +1.5% and +2.6%.p.a. were achieved over 1 year and 3 years respectively to end Dec 2018 Bank of Ireland

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