H1 2020 Credit Presentation

Strategic progress in Retail UK business with further restructuring required Retail UK Net interest income H1 20181 H1 2019 H1 2020 £250m £239m £258m (£16m) (£6m) £1m (£155m) (£147m) (£136m) (£12m) (£31m) (£250m) • . Other income Costs Impairment JV income £15m £14m • £1m Underlying profit/(loss) £90m £80m Cost income ratio Loan book 64% £24.2bn 60% £24.8bn £24.5bn (£145m) 57% • Deposits ₤19.0bn £19.2bn £19.5bn 1 Excludes credit cards, exited 2019 Bank of Ireland H1 2020 Credit Presentation Net interest income: back book deleveraging, lower base rates and mortgage competition impacting NII; partial offset from actions taken on pricing of deposits and new lending Other income: commission mix enhanced; income increased £7m vs. H1 2019 Costs: 7% cost reduction in H1 2020; 23% reduction since 2017 Asset quality: Increased impairments from deteriorating macro-economic outlook; historic loan losses favourable to industry average JV income: no. 1 travel business (FRES) in UK; 2020 income impacted by COVID-19 and reduced travel Loan book: improving loan book mix; bespoke mortgage growth and legacy portfolio 30% lower Strategic imperative to improve returns Protracted difficult market conditions necessitate further restructuring of our retail businesses in UK. A multi-year restructuring programme now commenced: GB Retail restructuring A smaller balance sheet and higher margin business: Run-down of lower margin and less profitable mortgages over time (UK mortgage loan book £19.6bn) Grow bespoke mortgage business; c.150 brokers / £320m of new lending since launch Leverage expertise in travel money and car finance Smaller balance sheet will enable further funding cost reductions Material reduction in cost base from smaller scale, efficiency and operating model Northern Ireland Retail • Strategic review recently commenced to assess options impacting: £2.5bn of consumer, mortgage and business loans Northern Ireland - £5.0bn of deposit and current accounts c.200k consumer and business customers GB Bank of Ireland 36

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