Bank of Ireland 2020 Debt Investor Presentation
FY 2020 impairment charge €1.1bn; H1 €0.9bn
FY 2020
IFRS 9 models
macro-economic update
€515m
Updated IFRS 9 models
incorporating latest macro-
economic conditions and
outlook
Central scenarios' assume
improving HPI and GDP.
However domestic
economy challenging and
unemployment higher than H1
assumption
Group management
adjustment (including
payment breaks)
€181m
Lower than expected
forbearance on payment
breaks at this stage
Risk that impacted SME
sectors and post payment
break mortgage/consumer
customers require longer
term supports
Ongoing COVID-19
restrictions impacting
Bank of Ireland 2020 Debt Investor Presentation
Actual loan loss experience
€437m
Actual loan loss experience:
-
Property and construction
€270m, includes €253m
related to legacy
investment property
positions
Non-property SME and
corporate €130m
-
Mortgage and consumer
portfolios €22m
2021 Outlook
Reflects positive impact of
government support schemes
management adjustment
-
Other financial assets
€15m
Subject to no further deterioration in the economic conditions or outlook, the majority of the credit
impairment risk associated with COVID-19 has been captured; we expect the 2021 impairment
charge to be materially lower than 2020
1 See slide 52 for 2021-2025 macro-economic assumptions used in IFRS 9 models
Bank of Ireland
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