2019 Interim Results Credit Presentation
NIM - Strong commercial discipline on pricing
2019 Interim Results Credit Presentation
Net interest margin drivers
NIM of 2.16% in H1 2019
. H1 2019 NIM of 2.16%
Maintaining strong commercial pricing discipline - loan asset
spreads stable at 284bps in H1 2019
The impact on NIM from competitive pressures in the UK
mortgage market have stabilised in H1 2019
2.23%
2.17%
2.16%
282bps
283bps
284bps
•
(11bps)
(12bps)
(17bps)
H1 2018
H2 2018
H1 2019
Loan Asset Spread¹
Liquid Asset Spread¹ Net Interest Margin
0.40%
(0.32%)
Dec 2019
Lower for longer interest rates
0.68%
(0.20%)
Outlook
•
During 2019, the expected EUR 5 year swap rate in 2021
declined by 100bps
2019 is expected to be slightly lower than H1 NIM of 2.16%
2020/2021: trending mid to high single digit bps lower
than 2.16%
•
0.96%
(0.04%)
100bps
decline
Dec 2020
Dec 2021
Jan 19 Jul 19
(Euro 5yr swap rate)
1 Spread = Loan asset yield or Liquid asset (excl. NAMA bonds) yield less Group's average cost of funds
Bank of Ireland
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