2018 Credit Presentation
24% improvement in NPE levels
Non-performing exposures
8.3%
11.4%
€4.4bn reduction
€9.4bn
Dec 2016
€6.5bn
Dec 2017
6.3%
€5.0bn
Dec 2018
NPEs as a % of gross customer loans Non-performing exposures
(€176m)
2016
Net impairment gains/(losses)
€36m
(€15m)
2017
Net impairment (losses) / gains
2018
2018 Credit Presentation
Asset quality continues to improve
•
Non-performing exposures (NPEs) of €5.0bn, a reduction of
€1.5bn (24%) during 2018
• NPE ratio reduced by 200bps to 6.3%
•
Reductions reflect successful resolution strategies and the
positive economic environment. Expect further reductions in
2019 and beyond
. SREP guidance received on coverage levels for NPES -
coverage levels will increase on unsecured NPES (older than
2 years) and secured NPES (older than 7 years) from end of
2020
•
NPE reduction strategies will be kept under review to respond
to the associated and evolving regulatory framework
Net impairment gains of €36m in 2018
Net impairment gains on loans and advances to customers of
€36m for 2018, primarily reflecting:
Strong performance of the Group's loan portfolios
Positive outcomes from ongoing resolution of NPES
Continued positive economic environment and an outlook
of continued economic growth in key markets
Absent a change in the economic environment or outlook,
expect net impairment charge to be in the range of up to
20bps-30bps p.a. during 2019-2021
Bank of Ireland
14View entire presentation