Bank of Ireland 2020 Debt Investor Presentation
Robust capital ratio performance despite COVID-19 Bank of Ireland 2020 Debt Investor Presentation
Fully loaded CET1 ratio
RWAS
€49.9bn
13.8%
40bps
(110bps)
125bps
Impairment
EL offset
(230bps)
80bps
RWA reduction 40bps
Net impact (110bps)
(20bps)
75bps
(75bps)
(65bps)
(10bps)
RWAS
€48.0bn
+10bps
Regulatory capital
13.4%
demand
Dec 19
Organic capital Dividend removal
Credit
deterioration
Loan growth/
RWA²
Regulatory SME & Software Transformation Other / Pension
change
investment
Dec 20
20
20
Headroom to 2021 CET1 regulatory capital requirements
2021 Regulatory
Requirements
(excl. P2G)
13.4%
9.77%
14.9%
Dec 20 Fully Loaded
CET1 Ratio
Dec 20 Regulatory
CET1 Ratio
c.510bps
headroom
Strong Capital Position
•
Regulatory CET1 ratio 14.9% at Dec 2020, reduced 10bps
in the year; supported by IFRS 9 addback which reduced
impairment impact on the ratio
Expected loss absorbed c.80bps of 2020 impairment
charge
RWAS reduced by c.€1.9bn, primarily driven by SME
support factor and FX
2% reduction in RWA density driven by lower Ireland
mortgage risk weights and benefit of SME support factor
Previously guided 80bps impact of regulatory capital
demand by end 2021 is now materially complete
1 Pre-impairment organic capital generation primarily consists of attributable profit excluding impairment and movements in
regulatory deductions
2 Loan growth / RWA movements from changes in loan book mix, asset quality and movements in other RWAS
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