Bank of Ireland 2021 Interim Results - Debt Investor Presentation
Interest rate sensitivity
Bank of Ireland 2021 Interim Results - Debt Investor Presentation
The table below shows the estimated sensitivity of the Group's income (before tax) to an instantaneous and sustained
1% parallel movement in interest rates
Estimated sensitivity on Group income (1 year horizon)
100bps higher
100bps lower
Dec 20
(€m)
Jun 21
(€m)
c.220
c.260
(c.220)
(c.240)
The above sensitivities are based on certain simplifying assumptions such as:
the assumption of a static balance sheet by size and composition;
assets and liabilities whose pricing is mechanically linked to market / central bank rates are assumed to reprice
accordingly; and
the sensitivities should not be considered a forecast of future performance in these rate scenarios as they do not
capture potential management action in response to unexpected changes in the interest rate environment
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