Investor Presentaiton
Transformation Investment
2016-21 investment: €1.4bn
Increasing our investment to support growth and drive
efficiencies
Average of €275m p.a.
•
Scope: Culture, Systems, Business Model
.
Average CET1 capital investment: c.50-60 bps p.a.
Accounting treatment of annual investment (€275m p.a.):
•
0
2016
2017
2018
2019
2020
2021
•
Costs will decrease every year in absolute terms
c.65%1
c.50%
c.€1.9bn
€1,796m
€104m
c.€1.7bn
2021
40% capitalised as intangible asset
40% charged as Transformation Investment in the
Income statement
20% charged as non-core restructuring costs in the
Income statement
H1 2018 Transformation investment charge
•
Total transformation investment in H1 2018 of €141m,
(CET1 ratio impact of c.30bps):
€39m capitalised as intangible asset (28%)
€51m charged as Transformation Investment in the
Income statement (36%)
€51m charged as non-core restructuring costs in the
Income statement (36%)
2017
2018
2019
2020
Operating expenses
Transformation Investment charge
Cost income ratio
Bank of Ireland Group
1See Slide 45 for calculation
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