Investor Presentaiton
Underlying profit before tax of €935m
Total income
FY 20171
(€m)
FY 2018
(€m)
3,049
2,805
- Net interest income
2,248
2,146
- Other income (net)*
801
659
Operating expenses (before levies and
(1,900)
(1,852)
regulatory charges)
- Operating expenses
(1,796)
(1,739)
Transformation Investment charge²
(104)
(113)
- Levies and Regulatory charges
(99)
(101)
Net Impairment (losses) / gains
(15)
42
•
Share of associates / JVS
43
41
Underlying profit before tax
1,078
935
Non-core items
(226)
(100)
Profit before tax
852
835
*Of which additional gains
74
9
Net interest margin (NIM)
2.29%
2.20%
Cost income ratio³
65%
65%
Adjusted ROTE4
6.9%
7.2%
Bank of Ireland 2018 Results Announcement
Net interest income of €2,146m, reduction of €102m vs.
2017 reflecting lower NIM (2018: 2.20%) primarily due to
lower liquid assets income, cost of securities issued in
advance of TRIM and MREL during 2017 and UK competitive
pressures
Other income of €659m includes:
Sustainable and diversified business income of €672m,
increasing from €662m in 2017
Additional gains, valuation and other adjustments on
financial instruments - net charge of €13m (2017: net gain
of €139m)
Operating expenses (before levies and regulatory charges) of
€1,852m; reduction of €48m (3%) vs. 2017
Net impairment gains of €42m, reflecting positive economic
environment in Ireland and effectiveness of our NPE resolution
strategies
Non-core charge of €100m primarily related to costs
associated with the Group's restructuring programme
1 Comparative figures have been restated to reflect the impact of the reclassification of €7 million of costs from the Transformation Investment
charge (formerly the Core Banking Platform Investment charge) to Operating expenses (before Transformation Investment and levies and regulatory
charges) for 2017
2 Transformation Investment charge was previously disclosed as 'Core Banking Platforms Investment', it has been updated for the twelve months
ended 31 December 2018 to include the broader scope of Transformation covering Culture, Systems and Business Model
3 See Slide 55 for calculation
4 See Slide 56 for calculation
Bank of Ireland
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