2019 Interim Results Credit Presentation
Strategic investment and rigorous allocation
of capital
Organic capital generation
(90bps)
2019 Interim Results Credit Presentation
1
Growth in
loan book
200-250bps
2
Transformation
50-60bps p.a.
3
Regulatory
.
.
•
capital
demand
•
•
Investment / allocation of capital
CET1 of c.200-250bps to accommodate loan book growth of c.20% over 4 years
(2018-2021)
Net lending growth of €1.2bn (c.30bps) in H1 2019
Transformation Programme: investment of 50-60bps p.a. (2018-2021)
Transformation investment of €138m (c.25bps) in H1 2019
On track to reduce costs in 2019 and every year to c.€1.7bn in 2021
IFRS 16 impact of c.20bps on 1 Jan 2019
Evolving regulatory framework including EBA and ECB guidelines (Definition of
Default, IRB models, NPE requirements, etc.) could consume c.80bps of CET1 by
end 2021
The Central Bank of Ireland has requested the power to introduce a Systemic Risk
Buffer (SyRB) in Ireland, which could increase capital demand. The size, timing and
application of any potential SyRB are currently unknown
Will pursue opportunities to unlock capital in balance sheet as appropriate
4
Dividend /
distributions
•
Dividend accrual of €100m (equivalent to an annualised dividend per share of 18.5c)
•
No change to dividend policy or guidance
Bank of Ireland
26
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