2018 Credit Presentation

NIM - Strong commercial discipline on pricing 2.23% 2018 Q4 NIM Movement (3bps) 2.20% (10bps) 2.10% 2018 Credit Presentation NIM-2.20% in 2018 • Maintaining strong commercial discipline on pricing e.g. recent price adjustments on Irish mortgages Competitive pressures in UK mortgage market driving lower front book pricing and shorter customer revert periods Adjustment to UK mortgage revert period (10bps) in Q4 2018 reflects faster refinancing activity Average Q1 - Q3 2018 NIM UK competitive pressures Underlying Q4 2018 Exit NIM UK Mortgage revert period (Non-recurring) Q4 2018 Reported NIM 2019 Outlook 2.20% Underlying Q4 2018 Exit NIM Outlook for 2019 NIM (3bps) (1bps) UK Credit Cards MREL issuance c.2.16% Expected 2019 NIM Expect 2019 NIM to be c.2.16%: - - Strategic repositioning of the UK cards portfolio adversely impacts NIM by c.3bps MREL issuance (c.1bps) UK competitive pressures expected to be offset by positive impact from new lending margins and strong commercial discipline on pricing Bank of Ireland 12

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