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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 Ireland
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