Bank of Ireland 2019 Interim Results
Interest Rate Sensitivity
Bank of Ireland 2019 Interim Results
The table below shows the estimated sensitivity of the Group's income (before tax) to an instantaneous and sustained 1% parallel
movement in interest rates
Estimated sensitivity on Group income (1 year horizon)
100bps higher
100bps lower
Dec 18
(€m)
Jun 19
(€m)
c.180
c.200
(c.210)
(c.230)
The estimates incorporate certain management assumptions primarily related to:
.
the re-pricing of customer transactions;
.
the relationship between key official interest rates set by Monetary Authorities and market determined interest rates; and
.
the assumption of a static balance sheet by size and composition
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In addition, changes in market interest rates could impact a range of other items including the valuation of the Group's IAS19 defined
benefit pension schemes
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