2018 Credit Presentation slide image

2018 Credit Presentation

Debt Securities at fair value through other comprehensive income (FVOCI) 2018 Credit Presentation ROI UK France Other Dec 18 (€bn) (€bn) (€bn) (€bn) (€bn) Dec 171 (€bn) Sovereign bonds 2.6 0.8 2.6 6.0 7.5 Senior debt 0.3 1.9 2.2 2.1 Covered bonds 0.2 0.4 0.9 2.2 3.7 3.1 Subordinated debt 0.1 0.1 0.4 Asset backed securities 0.0 0.1 Total FVOCI Reserve 2.8 0.2 0.4 2.0 6.8 12.0 13.2 0.2 0.3 Portfolio • On 1 Jan 2018, debt securities classified as AFS financial assets under IAS39 were reclassified in accordance with IFRS 9 • . The Group held €12.0bn of FVOCI debt securities at Dec 2018. Weighted average instrument level credit rating of the FVOCI portfolio is A+ Other exposures of €6.8bn include supranational entities (€1.7bn), Spain (€0.9bn), Belgium (€0.9bn), Sweden (€0.8bn), and Other (€2.5bn - all exposures less than €0.5bn) NAMA • • On 1 Jan 2018, on transition to IFRS 9, the previous unamortised discount² which was amortising to the income statement under IAS39, was transferred in full to retained earnings (NIM impact c.2bps) In April 2018, the Group sold €0.2bn of NAMA subordinated bonds in a buy-back auction generating an additional gain in the income statement of c.€9m • The Group holds NAMA subordinated bonds - €70m nominal value, valued at 104% at Dec 2018 (Dec 17 - 104%) 1 The Group held €13.2bn of AFS financial assets at Dec 17 which were reclassified under IFRS 9 to FVOCI (€10.1bn), Amortised Cost (€2.8bn) and FVTPL (€0.3bn) 2 An initial discount was recognised on the NAMA subordinated bonds with subsequent changes in fair value being recognised in the AFS Reserve Bank of Ireland 45
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