Investor Presentaiton

Defined Benefit Pension Schemes Group IAS19 Defined Benefit Pension Deficit 1.60% €1.19bn €313m 2.20% 2.30% 2.10% 2.05% €0.45bn €0.49bn €0.48bn €0.26bn Jun 16 Dec 16 Jun 17 Dec 17 Jun 18 IAS19 DB Pension Deficit EUR Discount Rate Mix of BSPF Defined Benefit Pension Scheme Assets (%)¹ €4.0bn €5.5bn €5.6bn 45% 61% 61% 11% 21% 44% 18% Dec 12 Dec 17 24% 15% Jun 18 Listed equities Diversified assets² Credit / LDI / Hedging 'Graphs shows BSPF asset allocation. BSPF represents approx. 77% of DB Pension assets 2Diversified assets includes infrastructure, private equity, hedge funds and property IAS19 Pension deficit of €0.26bn at Jun 2018: schemes in deficit €0.33bn, schemes in surplus €0.07bn • The primary drivers of the movement were: IAS19 Pension Deficit Sensitivities • (Jun 2016 / Dec 2016 Dec 2017 / Jun 2018) • Strong asset performance in H1 2018; • Positive impact of changes in long term assumptions; and • Deficit reducing contributions of €25m to BSPF €176m €173m €162m €162m €159m €122m €124m €128m €123m €118m €106m €71m €55m €28m €25m Interest Rates' Credit Spreads² Inflation³ Global Equity ¹Sensitivity of Group deficit to a 0.25% decrease in interest rates 2Sensitivity of IAS19 liabilities to a 0.10% decrease in credit spread over risk free rates 3Sensitivity of Group deficit to a 0.10% increase in long term inflation "Sensitivity of deficit to a 5% decrease in global equity markets with allowance for other correlated diversified asset classes • The improvement in the pension deficit reduced the regulatory capital deduction required by €160m (c.35bps) • The Group continues to support the Trustees in taking action to improve the correlation between assets and liabilities and reduce volatility Bank of Ireland Group 45

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