Bank of Ireland H1 2020 Credit Presentation
H1 2020 impairment charge €937m - prudent and
comprehensive approach
H1 2020
•
•
IFRS 9 models
macro-economic update
€432m
Updated IFRS 9 models
incorporating impact of
Forward Looking Information
(FLI) from latest macro-
economic outlook
Central scenario¹ assumes
a deep downturn, gradual
recovery and an orderly Brexit
Reduced weighting towards
upside scenario
Will reflect mitigating impacts
of government support
schemes
Bank of Ireland H1 2020 Credit Presentation
Payment breaks
Actual loan loss experience
€184m
Management adjustment to
reflect increased risk related
to:
Estimated rates of
migration from payment
breaks to forbearance /
arrears
Assessment of mortgages,
consumer loans, higher
impacted sectors at risk
from COVID-19 impact
€321m
Actual loan loss experience
on Stage 3 loans:
-
Property and construction
€179m, includes €166m
related to legacy
investment property
exposures
Non-property SME and
corporate €115m
Mortgage and consumer
portfolios €27m
-
-
2020 Outlook
•
A change in the macro-
economic outlook would
lead to a change in IFRS 9
expected credit loss
H1 2020 impairment charge
incorporates risk of credit
migration of customers on
payment breaks
Actual loss experience in
H2 will reflect timing of loan
migration to Stage 3 and final
payment break outcomes
While uncertainties remain, subject to no further deterioration in the economic environment or outlook,
2020 impairment charge expected to be in a range of c.€1.1bn to €1.3bn
1 See slide 48 for 2020-2024 macro-economic assumptions used in IFRS 9 models
Bank of Ireland
16View entire presentation