2021 Interim Results - Debt Investor Presentation
Bank of Ireland 2021 Interim Results - Debt Investor Presentation
€1m impairment charge reflecting
improved economic condition
H1 2021
•
IFRS 9 models
macro-economic update
€9m
Improved economic outlook
resulting in a write-back of
€163m
€172m charge from model
parameter updates primarily
due to changes in residential
mortgages LGD assumptions
Group management
adjustment
(€8m)
Net release of €8m while
maintaining €229m stock of
management adjustments
for H1 2021 for latent risk
associated with COVID-19
Requirement to hold will be
assessed at FY 2021
2021
Outlook
.
Loan loss experience and
portfolio activity
(Net €0m)
Muted loan loss experience in
H1 2021
Net zero charge reflects a
small number of offsetting
outcomes across loan
portfolios
30 June 2021
2021
2022
2023-2025
Central Scenario - 45% weighting
Irish GDP growth
4.7%
4.9%
3.0%
Irish Unemployment (unadjusted)
8.0%
7.4%
5.6%
Macro-economic scenarios¹ have
been upgraded to reflect improved
outlook compared to Dec 2020
Existing COVID-19 government
Irish House Price Index
3.0%
2.0%
1.3%
Irish Commercial Real Estate
(5.5%)
(0.5%)
1.5%
supports expected to be phased out
during H2 2021
Subject to no material change in the economic conditions or outlook, we expect
the H2 2021 impairment charge to be broadly similar to H1 2021 and supported
by the current stock of ILAs of €2.1bn
1 See page 52 for 2021-2025 macro-economic assumptions used in IFRS 9 models
Bank of Ireland
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