Bank of Ireland 2020 Debt Investor Presentation
Impairment coverage increased to 2.9%
Net impairment charge
€512m
€388m
€108m
€76m
€60m
€57m
€23m
€30m
€24m
(€8m)
Mortgages
(UK)
Non-property
SME and
corporate
Property and
construction
Consumer
Mortgages
(Ireland)
2019 2020
Impairment loss allowance (ILA) by portfolio
Bank of Ireland 2020 Debt Investor Presentation
Impairment coverage increased from 1.6% to 2.9%
Net impairment charge €1.1bn¹ / 134bps (FY 2019:
27bps)
Dec 19
Dec 20
ILA % of
ILA % of
ILA
ILA
gross
(€m)
(€m)
loans
gross
loans
.
Mortgages Ireland
369
1.6%
393
1.7%
Mortgages UK
63
0.3%
86
0.4%
Non-property SME and
487
2.4%
931
4.7%
corporate
Property and construction
230
2.8%
596
Consumer
159
2.8%
236
6.9%
4.5%
Total
1,308
1.6%
2,242 2.9%
Stage 1 impairment coverage
0.2%
0.6%
Stage 2 impairment coverage
3.4%
3.5%
30.6%
30.1%
Ireland mortgage impairment charge reflects
macro-economic outlook offset by incorporation of
additional external data on the Irish property market
Non-property SME and corporate charge, 77% relating
to performing loans, includes increased charge on
higher impacted sectors and portfolios
Property and construction charge primarily reflects
loss emergence on a small number of legacy
exposures
c.60% of the charge is on performing loans reflecting
macro-economic assumptions and management
adjustment
Actual loan loss experience €0.4bn / c.40% of charge
ILA increased by 71% to €2.2bn with impairment
coverage increasing across all portfolios
Not included in the impairment charge is an additional
€214m of calendar provisioning for aged NPEs taken
as a direct deduction to capital in line with regulatory
requirements
Stage 3 impairment coverage
1 Net impairment charge €1,061m on loans and advances to customers, net impairment charge on other financial instruments €72m,
total net impairment charge €1,133m
Bank of Ireland
16View entire presentation