2018 Credit Presentation

2018 Credit Presentation Risk Weighted Assets (RWAs) Customer lending average credit risk weights - Dec 2018 1/2 (Based on regulatory exposure class) EBA Transparency Exercise 2018 Country by Country Average IRB risk weights Residential Mortgages - June 2018 EAD³ RWA Avg. Risk (€bn) (€bn) Weight ROI Mortgages 24.2 8.3 34% Sweden 4.2% Belgium 9.7% UK Mortgages SME 21.5 4.8 22% 15.8 11.9 75% UK Finland 10.3% 10.7% France 11.3% Corporate 10.4 9.2 88% Netherlands 11.6% Other Retail 5.8 4.0 68% Austria 11.9% Spain 12.8% Customer lending credit risk 77.8 38.1 49% Denmark 14.1% Germany 14.3% • IRB approach accounts for: Norway 17.9% Portugal 19.5% Italy 19.9% Ireland 38.0% 70% of credit exposure at default (Dec 2017: 70%) 74% of credit RWA (Dec 2017: 73%) RWA has increased from €45.0bn at Dec 2017 to €47.8bn at Dec 2018 primarily driven by changes in book size and mix and the impact of TRIM • The Group's ROI mortgages average risk weight increased from 29% at June 2018 to 34% at Dec 2018, driven primarily by the impact of the TRIM exercise Corporates - June 2018 Sweden Denmark Germany Norway Netherlands Belgium Austria Finland UK Italy France Spain Ireland Portugal 26.9% 32.2% 40.4% 41.0% 43.3% 44.9% 46.3% 47.6% 48.3% 50.2% 54.1% 55.2% 61.7% 63.8% 26 26 1 EAD and RWA include both IRB and Standardised approaches and comprises both non-defaulted and defaulted loans 2 Securitised exposures are excluded from the table (i.e. excludes exposures included in CRT executed in Nov 2017 and Dec 2016) 3 Exposure at default (EAD) is a regulatory estimate of credit risk exposure consisting of both on balance exposures and off balance sheet commitments Bank of Ireland

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