Investor Presentaiton
Overview H1 2018
Underlying profit before tax of €500m
Other income of €322m
Operating expenses of €882m, broadly in line with H1 2017;
reduction of €27m (3%) vs. H2 2017
Income Statement
H1 2017
H1 2018
•
(€m)
Net interest income of €1,076m
(€m)
Total income
1,532
1,398
•
Operating expenses
(887)
(882)
Transformation Investment charge²
(49)
(51)
Levies and Regulatory charges
(63)
(67)
Net Impairment (losses) / gains
(59)
81
•
Underlying profit before tax
492
500
Non-core items
(32)
(46)
Net Interest Margin (NIM)
2.32%
2.23%
Robust balance sheet metrics
Transformation investment in H1 2018 of €141m (CET1 ratio
impact of c.30bps); €51m charged to the income statement (36%)
Net impairment gains of €81m, reflecting the positive economic
environment and outlook in Ireland
Non-core charge of €46m primarily related to costs associated
with the Group's restructuring programme
Balance Sheet
Group loan book of €76.6bn at Jun 2018 reflecting;
New lending of €7.7bn
•
Customer redemptions of €6.6bn
Redemptions on NPES and GB non-core book³ of €0.5bn
IFRS 9 day 1 / FX/ other of €0.1bn
Group customer deposits of €76.7bn at Jun 2018, an increase of
€0.8bn
•
Dec 2017
Jun 2018
Customer loans (net)
€76.1bn
€76.6bn
Customer deposits
€75.9bn
€76.7bn
•
Non-performing exposures (NPES)
€6.5bn
€5.9bn
CET1 ratios: Fully Loaded
13.8%
14.1%
15.8%
15.8%
Regulatory Total Capital Ratio
20.2%
19.8%
•
136%
139%
127%
127%
100%
100%
Regulatory
Liquidity metrics: LCR
NSFR
LDR
Bank of Ireland Group
NPES of €5.9bn, reduction of 10% during H1 2018
Strong organic capital generation continues; capital and liquidity
available to support growth
HoldCo senior investment grade ratings of Baa3, BBB-, and BBB
from Moody's, S&P and Fitch. Positive Outlook from Moody's and
S&P (see Slide 17 for full ratings)
¹Comparative figures have been restated to reflect the impact of: (i) the voluntary change in the Group's accounting policy for Life assurance operations in H2
2017 and (ii) the reclassification of €6 million of costs from the Transformation Investment charge (formerly the Core Banking Platform Investment charge) to
Operating expenses (before Transformation Investment and levies and regulatory charges) for the six months ended 30 June 2017
Transformation Investment charge was previously disclosed as 'Core Banking Platforms Investment', it has been updated for the six months ended 30 June
2018 to include the broader scope of Transformation covering Culture, Systems and Business Model
3GB business and corporate loan books, which BOI was required to run down under its EU approved Restructuring Plan
(Remaining stock: H1 2017 - £0.7bn; H2 2017 - £0.6bn; H1 2018 - £0.5bn)
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