Bank of Ireland 2021 Interim Results - Debt Investor Presentation slide image

Bank of Ireland 2021 Interim Results - Debt Investor Presentation

NPEs reduce to 5.5% NPE movements 6.3% 4.4% 5.7% €5.0bn €3.5bn H Dec 18 Dec 19 + €4.5bn (€0.3bn) €0.2bn 5.5% €4.4bn H Dec 20 NPE Transaction Net Inflows Jun 21 Net impairment charges (gains) €365m €246m €124m €77m €47m €76m €14m €0m (€15m) (€34m) Mortgages (Ireland) Mortgages (UK) Non-property SME Property and and corporate construction Consumer 19 19 Bank of Ireland 2021 Interim Results - Debt Investor Presentation Non-performing exposures • • • NPES reduced by €0.1bn to €4.4bn and NPE ratio decreased 20bps to 5.5% Irish residential mortgage NPE transaction successfully completed in H1 2021 Government fiscal supports continue to be supportive Proven track record of working with customers to implement sustainable solutions Stock of ILA of €2.1bn • • Impairment coverage reduced slightly to 2.7%, remains significantly higher than pre-COVID (1.6% Dec 2019) Net impairment charge¹ €12m / 3bps (H1 2020: 222bps) ILA charge and increased impairment coverage on Irish residential mortgage portfolio relates to changes to LGD model parameters resulting in net increase of c.€135m including removal of Dec 2020 stage 3 management adjustment Group management adjustment of €0.2bn provides material coverage for further COVID-19 impairment Bank of Ireland - H1 2020 E H1 2021 1 Net impairment charge €12m on loans and advances to customers, net impairment gain on other financial instruments €11m, total net impairment charge €1m
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