2022 Interim Results - Debt Investor Presentation
Financial benefits of acquisitions
€20.0bn
€18.5bn
€16.4bn
€1.0bn
DAVY
€15.1bn
€13.1bn
€0.8bn
€0.8bn
€0.3bn
€0.6bn
Dec-18
Dec-19
Dec-20
Net inflows
Dec-21
AUM
Jun-22
Bank of Ireland 2022 Interim Results - Debt Investor Presentation
Material enhancement of Wealth franchise
Momentum in Davy wealth business translating into
strong profit growth; reflects quality of franchise
Davy track record of strong net inflows' growth
in recent years; H1 performance robust despite
challenging market conditions
Overall Davy underlying profit of €12m in H1 22²,
reflecting income of c.€86m and costs of c. €74m.
Similar performance expected in H2 22
Financial performance will benefit from BOI's
distribution reach over time
KBC transaction expected to close by end Q1 2023
Comprises loans of c.€9.2bn and deposits of c.€4.0bn at end March 2022
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KBC Loans include performing mortgages c.€8.9bn, SME/consumer finance of c.€0.1bn and NPEs of c. €0.2bn
-
Loan portfolios will reduce by completion as KBC has ceased new origination
Financial effects remain in line with previous guidance
-
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Annualised 2023 net interest income benefit of c.€160m, incremental operating expenses of c.€25m;
contribution to earnings will reduce over time as the portfolios redeem
Capital investment of c.120bps on completion, reflecting RWA impacts and day 1 expected credit loss
Group's June 2022 pro forma NPE ratio would reduce by c.0.3% to 5.1%
1 New funds inflows minus redemptions; excludes impact on AUM from market movement
2 On pro forma basis assuming Davy was part of Group from January 1, 2022. Deal actually completed on June 1 2022
Bank of Ireland
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