Investor Presentaiton

Bank of Ireland Group Support for housing market % 30- House prices increasing, faster outside of Dublin than in the capital Completions up 17.9% in 2016 to 14,932, but remain below estimated demand of c.30,000 per annum Residential transactions slightly lower in 2016 vs 2015 Mortgage lending in 2016 up 5.2% (c.29,500 loans) and 12.3% (c.€5.7bn) y-o-y in volume and value terms New Government 'Help to Buy' scheme and loosening of Central Bank's LTV rules for first time buyers will support demand Property Prices and Rents Public finances improving Budget 2017 package injects €1.3bn into economy ▶ Solid tax revenue growth and spending control means deficit target of 0.9% of GDP in 2016 to be met ▶ Debt to GDP ratio estimated at 76% of GDP at end 2016, Government has pledged to reduce to 45% of GDP by mid 2020s ▶ Ireland is fully engaged in debt markets, sovereign yields at low levels. The NTMA has already raised c. 50% of its funding target for 2017 % 0 General Government Deficit 20 10- 0 -10- -20- -30- 2010 2011 2012 2013 2014 -0.5- -1- 2015 2016 2017 -1.5. Rents National National Ex Dublin Dublin Graph shows year-on-year change in residential prices and private rents Commercial Source: CSO Capital Growth Rental Growth 8.00% 7.40% Graph shows year-on-year change Q4 2016 Source: IPD 2016e 2017(f) Ireland Euro Area Graph shows General Government deficit as a % of GDP Source: Department of Finance, EU Commission 2018(f) 6

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