2018 Credit Presentation
Transformation Investment
2016-21 investment: €1.4bn
€306m
2018 Credit Presentation
Increasing our investment to support growth and drive
efficiencies
Average of €275m p.a.
•
Scope: Culture, Systems, Business Model
2016
2017
2018
2019
2020
2021
Average annual investment of €275m from 2018-2021;
equates to CET1 capital of c.50-60bps p.a.
Expected accounting treatment of investment
(average €275m p.a.):
-
40% capitalised as intangible asset
40% charged as Transformation Investment charge in the
Income statement
20% charged as non-core restructuring costs in the
Income statement
-
Costs will decrease every year in absolute terms
c.65%
c.65%¹
c.50%
c.€1.9bn
€1,796m
€1,739m
€104m
2017
€113m
2018
Operating expenses
1 See Slide 51 for calculation.
2019
2020
Transformation Investment charge
Cost income ratio
c.€1.7bn
2021
Efficiency targets
•
Cost target of c.€1.7bn in 2021
Costs reduce every year: 2018-2021
Cost income ratio improves from 65% to c.50% in 2021
Bank of Ireland
43
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