2021 Interim Results - Debt Investor Presentation
Defined benefit pension schemes
Group IAS19 Defined Benefit Pension (Deficit) / Surplus
1.60%
2.10%
2.00%
Bank of Ireland 2021 Interim Results - Debt Investor Presentation
Total Group Defined Benefit Pension Scheme Assets (%)
€7.1bn
€7.2bn
€7.2bn
€8.4bn
€8.9bn
€8.9bn
1.30%
1.25%
58%
55%
0.80%
65%
65%
69%
65%
60
60
(€0.23bn) (€0.14bn)
(€0.13bn)
(€0.48bn)
(€1.19bn)
Jun 16
Dec 17
Dec 18
€0.21bn
17%
21%
23%
23%
21%
24%
25%
24%
12%
12%
10%
11%
Jun 16
Dec 17
Dec 18
Dec 19
Dec 20
Jun 21
Dec 19
Dec 20
EUR discount rate
Jun 21
IAS19 DB pension (deficit) / surplus
IAS19 Pension Deficit Sensitivities
(Jun 2016 / Dec 2017 / Dec 2018 / Dec 2019 / Dec 2020/Jun 2021)
€313m
€118m
€102m
€109m
|
€88m
€103m
€173m
€162m
Interest rates¹
€153m
€181m
€196m
€183m
Credit spreads²
€71m
€28m
€38m
€28m
€22m
€22m
Inflation³
1 Sensitivity of Group deficit to a 0.25% decrease in interest rates
€122m
€128m
€90m
€102m
€132m
€121m
Global equity4
2 Sensitivity of IAS19 liabilities to a 0.10% decrease in credit spread over risk free rates
3 Sensitivity of Group deficit to a 0.10% increase in long term inflation
4 Sensitivity of deficit to a 5% decrease in global equity markets with allowance for other
correlated diversified asset classes
•
•
Listed equities Diversified assets Credit / LDI / Hedging
1 Diversified assets includes infrastructure, private equity, hedge funds and property
IAS19 pension surplus of €0.21bn at Jun 2021 (€0.13bn deficit Dec 2020)
Schemes in surplus €0.39bn, schemes in deficit €0.18bn
Both euro and sterling discount rates increased over the half year due to
increases in long term risk free interest rates, leading to a reduction in long
term liabilities
The interest rate hedging in the investment portfolios offset some of positive
impact of the increase in risk free rates
The implied credit spread component of the discount rates remained largely
unchanged over the period
Both long term euro and sterling inflation assumptions also increased in the
period, with the resulting increase in liabilities partially offset by the increase
in inflation hedging assets
De-risking strategies in recent years have also reduced the schemes'
exposure to global equity movements and increased exposure to
non-correlated assets
Listed equity asset holdings have been reduced in favour of increases in
diversified assets and credit / LDI / hedging allocations
Bank of IrelandView entire presentation