Investor Presentaiton
Strong commercial pricing discipline
Net interest margin drivers
285bps
4bps
H1 2017
282bps
3bps
H2 2017
Loan Asset Spread¹
Liquid Asset Spread
Net interest margin
282bps
(11bps)
H1 2018
2.32%
2.25%
2.23%
H1 2017
H2 2017
H1 2018
Net interest income
• Net interest income of €1,076m, reduction of €75m vs.
H1 2017 reflecting lower NIM primarily due to the cost of
securities issued in advance of TRIM and MREL during
H2 2017
Average interest earning assets
•
NIM
•
Increased by €1.4bn to €98.6bn in H1 2018, primarily due
to higher average liquid asset volumes
H1 2018 NIM of 2.23% primarily reflecting:
•
.
Strong commercial discipline on pricing;
Positive impact from new lending margins, offset by;
Lower liquid asset yields due to bond sales and the
impact of the ongoing low interest rate environment;
NAMA sub debt reclassification due to the introduction
of IFRS 9
Expect H2 2018 NIM to be broadly in line with FY 2018
guidance of 2.24%
¹Spread = Loan asset yield or Liquid asset (excl. NAMA bonds) yield less Group's average cost of funds
Bank of Ireland Group
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