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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) 9
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