2022 Interim Results - Debt Investor Presentation
Net interest income positively geared
to higher interest rates
Net interest income sensitivity to parallel shift in
interest rates (annualised)
EUR (Obps)
GBP
-100bps +50bps
+100bps
(€160m)
(€80m) €25m
(€10m) €10m
€200m €370m¹
€50m
€15m
Total
(€250m)
€235m
€435m
USD
Bank of Ireland 2022 Interim Results - Debt Investor Presentation
Key simplifying assumptions
•
An instantaneous and sustained parallel movement in
all interest rates
Starting point for ECB deposit rate / Euribor of 0%
A static balance sheet in size and composition
Assets and liabilities whose pricing is mechanically
linked to market / central bank rates assumed to reprice
accordingly
Certain other assumptions including pass-throughs to
assets and liabilities
The sensitivities should not be considered a forecast of
future performance in these rate scenarios as they do
not capture potential management actions
Net interest income sensitivities will change depending
on interest rate starting point
TLTRO
.
Any incremental benefit from TLTRO is excluded from
the sensitivity table above
Potential for aggregate incremental net interest income
of c.€100m from TLTRO in 2023/24 assuming an ECB
deposit rate of 0.75% at end-2022 and 1.25% at end-
2023 and no change to terms and conditions
1 +100bps interest rate sensitivity at FY21 = €190m. The difference to €370m at HY22 is explained by deposit balances (c.€15bn) on
negative interest rates, the impact of positive interest rates on Euribor floored loans (€7bn), balance sheet growth in the period and
other smaller items
Bank of Ireland
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