Investor Presentaiton
Sustainable business income
Bank of Ireland 2018 Results Announcement
20
20
FY 20171 FY 2018
(€m)
287
207
(€m)
267
250
E&r ¢ @ 8€ &b。
ཊྛ8ཆ༈༙ས8༞ 8*
662
672
Retail Ireland
Wealth and Insurance
Retail UK
Corporate and Treasury
Group Centre and other
Business Income
Additional gains
Valuation and other items
CVA, DVA, FVA, other
IFRS income classifications²
Wealth and Insurance
- Interest rate movements
1
175
74
65
37
(3)
22
29
(20)
- Unit-linked investment variance
(27)
Other Income
801
659
•
Business income of €672m, increasing from €662m in 2017;
-
Retail Ireland: reduction vs. 2017 due to strategic customer
initiatives and solutions
Wealth and insurance: investments in improved customer
experience are driving growth in customer and business value;
21% income growth vs. 2017
Market share +2%, APE +13%, increased penetration of
our customer base (23% to 26%)
Corporate and Treasury: primarily driven by lower fee
income in Acquisition Finance and lower equity income
Additional gains of €9m driven by repurchase of the high
yielding subordinated bonds by NAMA. Gains of €74m in 2017
included €45m related to bond sales to protect capital ahead
of IFRS 9
Valuation and other adjustments on financial instruments:
-
-
Net charge of €22m (2017: net gain of €65m)
Interest rate movements; impact primarily due to
movements in financial markets (widening of credit spreads,
higher euro interest rates)
Unit-linked investment variance; due to lower equity
markets, particularly in Q4 2018, impacting the value of
policyholder unit-linked funds and the associated value of
the Group's future fee income
1 Comparative figures have been restated to reflect the impact of the Group's decision to re-organise the Wealth and Insurance operating segment
(formerly Bank of Ireland Life) which resulted in a decrease of €30 million in business income in Retail Ireland and a corresponding increase in
Wealth and Insurance for 2017
2 IFRS income classifications include €15 million of interest income in 2018 on 'Life loan mortgage products' which on transition to IFRS 9 were
mandatorily classified as FVTPL, with all income on such loans reported in 'net other income'. IFRS income classifications are fully offset in net
interest income
Bank of IrelandView entire presentation