Bank of Ireland 2019 Interim Results slide image

Bank of Ireland 2019 Interim Results

Underlying profit before tax of €376m Total income Bank of Ireland 2019 Interim Results Operating profit pre-impairment - increase of 9% reflecting positive jaws Total income of €1,411m increased 1% vs. H1 2018 - Net interest income of €1,069m in line with H1 2018, reflects lower NIM of 2.16% offset by higher loan volumes Other income of €342m includes sustainable and diversified business income of €311m (H1 2018: €323m)² and additional gains, valuation and other items of €31m (H1 2018: net charge of €1m) Operating expenses (before levies and regulatory charges) of €903m; reduction of 3% / €30m vs. H1 2018 H1 2018 H1 2019 (€m) (€m) 1,398 1,411 - Net interest income 1,076 1,069 - Other income (net)* 322 342 Operating expenses (before levies and (933) (903) regulatory charges) - Operating expenses (882) (840) - Transformation Investment charge (51) (63) • Levies and Regulatory charges (67) (73) Operating profit pre-impairment 398 435 Net Impairment (charges) / gains 81 (79) • Net impairment charge of €79m in H1 2019 Share of associates / JVS 21 20 • Underlying profit before tax 500 376 Non-core items (46) (61) • Profit before tax 454 315 *Of which additional gains, valuation . (1) 31 and other items Net interest margin (NIM) 2.23% 2.16% Cost income ratio¹ 66% 65% Impairment charge of €79m / 21bps Write backs in H1 2018 not repeated in H1 2019 Non-core Items of €61m Restructuring costs of €21m mainly relating to redundancy and property; and Charges associated with customer redress on Tracker Mortgage Examination €55m; partially offset by Gross up for policyholder tax in Wealth and Insurance business of €22m (H1 2018: (€2m)) 1 See Slide 51 for calculation 2 Business income in H1 2018 includes €21m relating to UK Cards and ATMs classified as non-core during H1 2019 Bank of Ireland 12
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