Investor Presentaiton

Overview of Irish Mortgage Market €bn 160 140- 120- 100- 80- 60- 40- 20 0 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Mortgage debt Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 €bn 45+ 40- 35- Volume Outstanding Source: CBI Mortgage drawdowns Dec-15 Dec-16 Bank of Ireland Group +6 -5 €bn Structure of Irish Mortgage Market Size of Irish mortgage market reduced c.28% from 2009 peak (c.€107bn Dec 2016) Predominantly principal and interest structured market New lending ► Total new mortgage lending of c.€5.7bn in 2016, 12.3% increase vs 2015 Increase largely driven by FTB and Mover Purchaser Macro prudential rules Nov 2016 CBI amended rules; PDH for first time buyers: Limit increased to 90% PDH for movers: 80% limit remains BTL 70% limit remains 5% of new lending to FTB, 20% to movers, 10% to BTL allowed above limits LTI at 3.5 times loan to gross income remains. 20% of new lending can be above this cap Help to buy The Government has introduced a help to buy scheme to the end of 2019 for FTBS; tax rebate of 5% of purchase price (up to a maximum rebate of €20,000) 30- 25- 20- 15- 10- 5. 0 2006 2012 2013 2014 2015 2016 Top up Remortgage BTL Movers FTB Source: BPFI 19

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