Bank of Ireland H1 2020 Credit Presentation
H1 2020 Financials
H1 2019 H1 2020
(€m)
(€m)
Net interest income
1,069
1,079
Business income
311
266
Additional gains, valuation and other items
31
Total income
1,411
Operating expenses
(123)
1,222
(903) (872)
Levies and Regulatory charges
(73)
(70)
Impairment of goodwill
(9)
Operating profit pre-impairment
435
271
Net Impairment gains /(charges)
(79)
(937)
Share of associates/JVs
20
(3)
Underlying profit/(loss) before tax
376
(669)
Non-core items
(61)
(153)
Profit before tax
315
(822)
•
H1 2019 H1 2020
(€m)
(€m)
Net interest margin (NIM)
Cost income ratio¹
Underlying earnings per share
2.16%
2.02%
65%
66%
25.2c (58.8c)
1 See slide 54 for calculation
Bank of Ireland H1 2020 Credit Presentation
Underlying loss before tax €669m
Total income 13% lower; net interest income stable
Business income 14% lower from reduced economic
activity
Falling equity markets and widening credit spreads
impacting Wealth and Insurance valuations
3% reduction in operating expenses
Net impairment charge €937m reflects:
IFRS 9 macro-economic outlook and model update
€432m
Management adjustment related to payment breaks
€184m
Actual loan loss experience €321m
Non-core items include charges associated with:
Impairment of intangible asset €136m
Restructuring costs €27m
Bank of Ireland
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