Investor Presentaiton
Net interest income
Impacted by lower liquid asset yields
Net interest margin drivers
2.15%
2.21%
2.17%
2.11%
269 bps
269 bps
264 bps
253 bps
Bank of Ireland Group
Net interest income
Net interest income of €1,135m; impacted in H1 2016 by
the low interest rate environment, lower liquid asset yields
and FX translation effects
Average interest earning assets
Decreased by €2.9bn to €105.1bn primarily due to FX
translation effects
53 bps
34 bps
22 bps
9 bps
H2 2014
H1 2015
H2 2015
H1 2016
NIM
NIM
Loan Asset Spread
Liquid Asset Spread
€108.8bn
€24.3bn
Average interest earning assets
€108.0bn
€22.4bn
€105.1bn
€22.5bn
€84.6bn
€85.6bn
€82.6bn
H1 2015
H2 2015
H1 2016
Average Loans & Advances
Average Liquid Assets
H1 2016 NIM of 2.11% reflects;
Commercial discipline maintained on lending and
deposit margins
Stable loan asset spread¹ of 264 bps
Lower liquid asset spread¹ of 9 bps
Maturity of expensive CoCo (€1bn; 10% fixed coupon) in
July 2016 will positively impact NIM in H2 2016
'Spread Loan asset yield / Liquid asset yield less Group's average cost of funds
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