Bank of Ireland 2020 Debt Investor Presentation
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Further strategic progress in the UK in 2020
Bank of Ireland 2020 Debt Investor Presentation
Progress on UK repositioning continued in 2020
Underlying PBT
Retail UK
2019
2020
•
Net interest income
£494m
£497m
Other income
(£13m)
(£2m)
Costs (excl. intangibles)
(£288m)
(£263m)
Operating profit
£193m
£224m¹
-
Impairment
(£71m) (£238m)
JV income
£30m
(£1m)
Underlying profit/(loss)
£152m
(£15m)
Cost income ratio
60%
53%
Loan book
£24.8bn £24.5bn
£19.1bn
1.75%
£18.3bn
1.73%
-
Deposits
NIM
Stable net interest income; supported by rising margins on
new mortgage lending, Q4 exit NIM of 1.82%
Reduced operating costs by £25m or 9%; positive JAWS of 12%
JV income, FX joint venture with PO, impacted by UK travel
restrictions
Balance sheet
New lending volumes £1bn lower in 2020, reflecting
improved business mix; c.£0.6bn of Bespoke mortgage
lending since launch
Reduction in lending volumes supported a £0.8bn
reduction in more expensive deposits
Further strategic actions to improve returns underway
Northern Ireland strategic review complete
Decision taken to materially restructure the business
c.50% of branches to close; Northern Ireland initiatives
over next 18 months will reduce NI gross costs by over
15% in the medium term²
Simplification of product offering and physical footprint
to align with GB strategy; leverage expertise in car finance
and mortgages
1 Includes £8m goodwill intangible write-off
2 Before investment initiatives
2021 UK outlook
•
Loan book to reduce by c.10%; with reduced deposits
•
Margins in line with 2020 exit NIM
Operating costs to reduce c.3%
•
•
Material reduction in impairment charges
Building blocks to increase UK returns remain
Higher new lending margins
.
Reduced funding costs
•
Lower operating costs
•
Smaller balance sheet
Bank of Ireland
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