2018 Credit Presentation
Interest Rate Sensitivity
2018 Credit Presentation
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
Dec 17
Dec 18
(€m)
(€m)
c.170
c.180
(c.200)
(c.210)
The estimates are based on management assumptions primarily related to:
.
the re-pricing of customer transactions;
. the relationship between key official interest rates set by Monetary Authorities and market determined interest rates; and
.
the assumption of a static balance sheet by size and composition
40
40
In addition, changes in market interest rates could impact a range of other items including the valuation of the Group's IAS19 defined
benefit pension schemes
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