2020 Results Announcement
2020 Financials recovering in H2
Bank of Ireland 2020 Results Announcement
Net interest income 2% lower vs. 2019
FY 20191 FY 2020
(€m)
(Єm)
Business income³ 21% lower; improved H2 performance
Net interest income
2,167
2,115
Business income
666
561
4% reduction in operating expenses with further
momentum in H2
Additional gains, valuation and other items
3
(56)
Total income
2,836 2,620
Operating expenses
(1,785) (1,720)
Net impairment charge €1.1bn (H1 €0.9bn):
Improving macro outlook since H1
Levies and Regulatory charges
(117)
(125)
Impairment of intangibles and goodwill
(12)
Operating profit pre-impairment
934
763
Net impairment charges
(215) (1,133)
Share of associates/JVs
39
(4)
•
Underlying profit/(loss) before tax
758
(374)
Non-core items
(113) (386)
Profit before tax
645
(760)
FY 2019 FY 2020
Lower than expected payment break forbearance
c.60% of charge related to performing loans
Actual loss experience of €437m (H1 €321m)
Non-core items include:
Restructuring costs (including voluntary redundancy)
€245m
H1 impairment of intangible assets €136m
Customer remediation €39m
Net interest margin (NIM)
Cost income ratio²
Underlying earnings per share
(€m)
(€m)
2.14%
2.00%
63%
64%
52.4c
(38.6c)
1 Comparative figures have been restated to reflect the impact of the voluntary change in the Group's accounting policy for interest
income and interest expense on certain financial instruments
2 See slide 53 for calculation
Bank of Ireland
3 Including share of associates/JVS
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