Investor Presentaiton

Defined Benefit Pension Schemes Group IAS19 Pension Deficit Bank of Ireland Group 3.65% 2.20% 2.30% 1.60% €1.19bn €0.79bn €0.99bn €0.84bn €0.74bn Dec 13 Dec 14 IAS19 Pension Deficit Dec 15 Jun 16 Jun 16 EUR AA Corporate bond curve Pro-forma Group IAS19 Pension Deficit following €0.4bn expected cash or other suitable assets contribution BSPF1 Surplus/ Deficit under Relevant Bases Dec 15 Minimum funding standard *Actuarial / on-going basis (362) (12) (428) **IAS19 (78) Estimated surplus/ (deficit) at Dec 15 303 653 Pro-forma position following €350m expected cash or other suitable assets contribution to BSPF *Triennial actuarial valuation currently in progress **BSPF IAS19 deficit at June 16 was €693m Group IAS19 pension deficit of €1.2bn at Jun 16 (€0.74bn at Dec 15) Primary drivers of the increase in the deficit were Euro and UK AA corporate bond discount rates decreased from 2.3% to 1.6% and 3.8% to 2.75% respectively, partly offset by Long term ROI and UK inflation rate expectation decreasing from 1.6% to 1.3% and 3.3% to 2.85% respectively, and Group pension scheme asset returns of €379m There is a further €400m of deficit reducing contributions expected to be made between 2016 and 2020 (€350m to BSPF) The Pension Review programmes of 2010 and 2013 resulted in significant restructurings of scheme benefits, which were accepted by staff and unions through individual member consent In return for the deficit reduction achieved through these programmes, Group agreed to increase its support for the schemes by making matching contributions ► Allowing for the remaining deficit reducing contributions, the overall Group IAS 19 deficit would have been c.€0.8bn at Jun 16 IAS19 requires that the rate used to discount Defined Benefit pension liabilities be selected by reference to market yields on high quality corporate bonds with a corresponding duration. However, only a small number of such AA corporate bonds exist at the c.22 year duration and those bonds tend to be relatively illiquid In addition to the IAS19 accounting valuation, the funding position of the main BSPF scheme is also measured under the Minimum Funding Standard basis and the Actuarial / on-going basis. Estimated valuations on both of these measures showed a stronger funding position than IAS19 at Dec 15 for main BSPF scheme *BSPF represents approx. 75% of the overall Group Defined Benefit liabilities 43

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