Investor Presentaiton
Risk weighted assets (RWA)
RWA Density
47%
41%
37%
42%
Dec 16
Dec 17
Total RWA/ Total Assets (Incl BOI Life Assets)
Total RWA/ Total Assets (Excl BOI Life Assets)
Bank of Ireland Group
Customer lending Average Credit Risk Weights 1/2
(Based on regulatory exposure class)
Credit
EAD³
Avg.
RWA
Risk
(€bn)
(€bn)
Weight
ROI Mortgages
24.7
7.3
30%
UK Mortgages
22.4
4.5
20%
SME
16.2
11.6
71%
Corporate
9.4
8.4
90%
Other Retail
5.1
3.3
65%
Total customer lending
77.8
35.1
45%
IRB approach accounts for:
•
70% of credit EAD (Dec 2016: 74%)
73% of credit RWA (Dec 2016: 77%)
• The decrease in RWA density in 2017 is primarily driven
by the improving asset quality, the execution of the CRT
transaction and changes in methodology and policy
• RWA has reduced from €50.7bn at December 2016 to
€45.0bn at December 2017 primarily driven by:
•
°
Impact of FX movements (€1.0bn)
Changes in book size and quality (€1.8bn)
Changes in methodology and policy (€1.2bn)
CRT transaction in November 2017 (€1.6bn)
Sourced from the Group's Pillar III disclosures. EAD and RWA include both IRB and Standardised approaches and comprises
both non-defaulted and defaulted loans
2Securitised exposures are excluded from the above table (i.e. excludes exposures included in CRT executed in December 2016 and November 2017)
Exposure at default (EAD) is a regulatory estimate of credit risk exposure consisting of both on balance exposures and off balance sheet commitments
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