Investor Presentaiton

Structural hedge, liquid assets and negative interest rates Structural hedge¹ Liquid assets² • Average volume €35.6bn €35.1bn €26.6bn €31.0bn €68m €46m €34m €17m Interest Income €28m -€24m €34m €18m + H H1 20 H1 21 H1 20 H1 21 EUR GBP Application of negative interest rates delivering reduction in funding costs Period-end deposit volume on negative rates €3.3bn €8.5bn €8.5bn €30m €11m H1 20 €20m H2 20 H1 21 1 Gross interest income from fixed leg of hedging swap 2 Excludes any impact from TLTRO on liquid assets H Bank of Ireland 2021 Interim Results - Debt Investor Presentation Structural hedge & liquid assets Interest income from structural hedge and liquid assets reducing as a result of the negative interest rate environment - Average structural hedge yield fell from c.38bps to c.26bps between H1 2020 and H1 2021 The decline in liquid asset income arises primarily from i) a reduction in average 3 month Euribor rate (c.20bps) and ii) higher ECB balances (c. €3.5bn) Negative interest rates • • • As a mitigant to the impacts of the negative interest rate environment above, the application of negative interest rates to non-personal customers was expanded further during 2021 Volume of customer deposits on negative rates was €8.5bn at Jun 2021 reflecting some volume attrition. The threshold for the application of negative rates will be reduced for non-personal customers from €2.5m to €1m during Q3 2021 with further expansion to high net worth personal customers with balances >€1m during Q4 2021 The Group expects c.€15bn of customer deposits will attract a negative rate by Dec 2021 Bank of Ireland 44

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