2019 Interim Results Credit Presentation slide image

2019 Interim Results Credit Presentation

Robust capital ratios CET1 Ratios: Dec 2018 Jun 2019 Fully Loaded 13.4% 13.6% Regulatory 15.0% 14.9% Tier 1 Ratios¹: Fully Loaded 14.4% 14.8% Regulatory 16.0% 16.1% • Total Capital Ratios¹: Fully Loaded 17.2% 16.7% Regulatory 18.8% 18.0% MREL: Regulatory MREL ratio 23.1% 21.1% Leverage Ratios: Fully Loaded Regulatory 6.3% 6.6% 7.0% 7.2% Risk Weighted Assets: Fully Loaded €47.6bn €48.7bn Regulatory €47.8bn €48.9bn 2019 Interim Results Credit Presentation CET1 • The Group's fully loaded CET1 ratio increased by c.20 basis points to 13.6% and the regulatory CET 1 ratio decreased by c.10 basis points to 14.9% in H1 2019 Tier 1 & Total Capital¹ • Tier 1 ratios reflect movements in CET1 ratios and a reduction in the adjustment under Article 85 of CRR Total Capital ratios reflect movements in CET1 ratios, the redemption of a €750m Tier 2 instrument in June 2019, the continued amortisation of other bullet Tier 2 instruments and a reduction in the adjustment under Article 87 of CRR MREL • MREL target of €13.3bn (representing 26.4% of RWA at Dec 2016) to be met by 1 Jan 2021: MREL ratio of 21.1% based on RWA at Jun 2019 (22.3% pro forma including €600m senior debt issued in July 2019) Modest MREL issuance of c.€1bn - €2bn p.a. anticipated Risk Weighted Assets • RWA has increased from €47.8bn at Dec 2018 to €48.9bn at Jun 2019 primarily driven by net loan book growth, changes in asset quality and book mix offset by the impact of the disposal of NPES 1 Further to EBA Q&A 2017_3329 the calculation of Tier 1 and Total Capital ratios is stated after a prudent application of the requirements of Articles 85/ 87 of CRR. The application of the requirements of Articles 85 /87 by SSM banks is under review by the ECB Bank of Ireland 27
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