Q1 2020 IMS Presentation slide image

Q1 2020 IMS Presentation

Net impairment charge 133bps in Q1 2020 Net impairment (charges) / gains bps 5bps (2bps) (26bps) (133bps) 2017 2018 2019 Mar 201 Ireland GDP1 Unemployment² Economic outlook 2019 2020 (f) 2021 (f) 5.5% (8.0%) 7.5% 5.0% 13.5% 8.0% Bank of Ireland Q1 2020 IMS Presentation Net impairment charge €266m / 133bps • At Q1 2020, no loan loss outcomes related to COVID-19 have been experienced Charge includes COVID-19 management overlay of €250m; primarily reflecting the initial impact of IFRS 9 Forward Looking Information (FLI) driven by deterioration in macroeconomic outlook Charge does not reflect any material migration from Stage 1 to Stage 2 loans H1/H2 2020 impairment will capture combination of: Potential for updated FLI impacts Significant increase in credit risk with credit migration of loans from Stage 1 to Stage 2 Actual loan loss experience There are a range of published macroeconomic scenarios and the outlook remains uncertain UK 2019 2020 (f) 2021 (f) GDP1 1.4% (8.5%) 6.5% Unemployment² 3.8% 9.0% 6.2% Source (Economic outlook): Forecasts by Bank of Ireland Economic Research Unit 1 Annual real growth 2 Annual average Bank of Ireland 11
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