Bank of Ireland 2019 Interim Results
Costs continue to reduce -
-
net reduction €30m (3%)
€1.9bn
Operating expenses continue to reduce
€1,796m
€1,739m
€840m
€104m
2017
€113m
2018
€63m
2019
2020
Operating expenses Transformation Investment charge
Operating Expenses (including transformation investment charge)
c.€1.7bn
2021
Bank of Ireland 2019 Interim Results
Transformation of cost base continues
•
Expect operating expenses (including transformation investment
charge) in 2019 to be lower than 2018 and to reduce every year to
c.€1.7bn in 2021
Operating expenses (before levies and regulatory charges) of
€903m reduced by €30m net (3%) vs. H1 2018
Operating expenses of €840m - down €42m (4.8%)
•
Staff costs decreased by €19m (5%) vs. H1 2018 reflecting;
4% lower average staff numbers
-
Changing staff mix with fewer management layers, partially
offset by
Wage inflation of c.2.6% under the Group Career and Reward
framework
Other costs and depreciation reduced by €14m from process
efficiencies and strategic sourcing, partially offset by higher
depreciation from investment in technology
Includes cost reduction of €26m relating to exiting UK Cards
and ATMs
Transformation Investment charge of €63m
• Total transformation investment in H1 2019 of €138m, in line with
expectations
€63m (46%) charged to the income statement
Levies and Regulatory charges of €73m
Expect levies and regulatory charges to total €115m - €120m for
FY 2019
H1 2018
(€m)
H1 2019
(€m)
•
Total staff costs
442
414
- Staff costs
369
350
- Pension costs
73
64
Other costs¹
339
277
Depreciation¹
101
149
Operating Expenses
882
840
Transformation Investment charge
51
63
Operating Expenses (before levies and
933
903
regulatory charges)
Levies and Regulatory charges
67
73
Total Operating Expenses
Average staff numbers
1,000
10,752
Cost-income ratio²
66%
976
10,368
65%
1 The adoption of IFRS 16 resulted in a decrease in other costs of €42m and an increase in depreciation of €38m
2 See Slide 51 for calculation
Bank of Ireland
16View entire presentation