Bank of Ireland 2020 Interim Results
Interest Rate Sensitivity
Bank of Ireland 2020 Interim Results
The table below shows the estimated sensitivity of the Group's income (before tax) to an instantaneous and sustained 1%
parallel movement in interest rates
Estimated sensitivity on Group income (1 year horizon)
100bps higher
100bps lower
The above sensitivities are based on certain simplifying assumptions such as:
Dec 19
(€m)
Jun 20
(Єm)
c.210
c.250
(c.250)
(c.270)
40
40
the assumption of a static balance sheet by size and composition;
.
assets and liabilities whose pricing is mechanically linked to market / central bank rates are assumed to reprice accordingly;
and
the sensitivities should not be considered a forecast of future performance in these rate scenarios as they do not capture
potential management action in response to unexpected changes in the interest rate environment.
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