2022 Interim Results - Debt Investor Presentation

46 46 Structural hedge, liquid assets, net interestank of Ireland 2022 Interim Results - Debt Investor Presentation margin and negative interest rates Liquid assets² Structural hedge¹ Average volume €35.1bn €38.3bn • €31.0bn €38.5bn €46m €41m €18m €12m (€24m) Interest (€28m) Income €28m €29m + H1 21 GBP H1 22 EUR H121 H122 Liquid Asset interest income NIM movement Application of NIR delivering reduction in funding costs €8.5bn c.7bps (c.9bps) 1.94% 1.92% Year-end deposit TLTRO -8bps TLTRO -19bps volumes on negative rates €30m 1.86% 1.73% €14.8bn €47m FY 21 Pricing discipline & cost of deposit Liquid asset growth/ lower yield H1 22 H1 21 Reduction in funding costs H1 22 1 Gross interest income from fixed leg of hedging swap 2 Excludes any impact from TLTRO on liquid assets Structural hedge & liquid assets Structural hedge and liquid asset income reducing as a result of the negative interest rate environment - Avg structural hedge yield fell from c.26bps to c.21bps between H1 21 and H1 22 Decline in liquid asset income primarily from c. €7.5bn increase in liquid assets (reflecting retail deposit growth), partially offset by increase in avg 3 month Euribor rate (c.10bps) Net interest margin (NIM) • Underlying NIM -2bps vs FY 21 - Pricing discipline on lending and deposits +c.7bps contribution to NIM Growth in volume of liquid assets (ex TLTRO) and lower yields -c.9bps impact on NIM TLTRO mechanically lowers NIM by 19bps Negative interest rates (NIR) • Application of NIR to deposit customers expanded during 2021, minimal attrition during H1 22 Volume of customer deposits on negative rates was €14.8bn at June 2022 Reduction in funding costs of €47m in H1 22 Bank of Ireland

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