2022 Interim Results - Debt Investor Presentation slide image

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 - 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 - - 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 39
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