Bank of Ireland 2019 Credit Presentation

Capital Guidance and Distribution Policy Capital Guidance Distribution Policy Bank of Ireland 2019 Credit Presentation • The Group expects to maintain a CET1 ratio in excess of 13.5% on a regulatory basis and on a fully loaded basis by the end of the O-SII phase-in period¹ • This includes meeting applicable regulatory capital requirements plus an appropriate management buffer² • The Group expects that dividends will increase on a prudent and progressive basis and, over time, will build towards a payout ratio of around 50% of sustainable earnings • Dividend level and rate of progression will reflect, amongst other things: Strength of the Group's capital and capital generation - Board's assessment of growth and investment opportunities available Any capital the Group retains to cover uncertainties; and Any impact from the evolving regulatory and accounting environments • Other means of capital distribution will be considered to the extent the Group has excess capital Dividend Accrual Proposed dividend of 17.5c per share / €189m in respect of 2019, increased from 16c per share / €173m in 2018 1 The Other Systemically Important Institution (O-SII) buffer was introduced at 0.5% in July 2019, increasing to 1.0% in July 2020 and 1.5% in July 2021 2 The Central Bank of Ireland has requested the power to introduce a Systemic Risk Buffer (SyRB) in Ireland, which could increase capital demand. The size, timing and application of any potential SyRB are currently unknown Bank of Ireland 51

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