Bank of Ireland 2019 Credit Presentation
Net interest income and NIM
Net interest income¹ / NIM movement
€2,146m
(4bps)
(3bps)
1bps
2.20%
Net Interest Income
Bank of Ireland 2019 Credit Presentation
•
€2,150m
Stable net interest income benefitting from loan book growth
and pricing discipline
2.14%
FY 2018
UK (Cards exit
/ Competitive
pressures)
Liquid asset
growth/MREL
issuance
Other
FY 2019
Net interest margin drivers²
286bps
286bps
285bps
280bps
(11bps)
(12bps)
(17bps)
(21bps)
H1 2018
H2 2018
Loan asset spread³
H1 2019
Liquid asset spread³
H2 2019
1 Excludes IFRS income classifications which are included in NIM calculation
2 Prior periods restated, see slide 43 for further detail
3 Spread = Loan asset yield or Liquid asset (excl. NAMA bonds) yield less Group's average cost of funds
NIM of 2.14%
•
.
Strong commercial pricing discipline
Loan asset spread lower in H2 2019 primarily reflecting
competitive pressure in the UK mortgage market
Impact of UK credit card sale
Growth in liquid assets
MREL issuance
Outlook
• Exit NIM Q4 2019 of 2.10%
•
•
Full Year 2020 NIM to be c.2.05% primarily reflecting:
-
Impact of low rate environment on structural hedge
Growth in liquid assets
2020 net interest income expected to be broadly in line
with 2019
Bank of Ireland
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