Investor Presentaiton

Asset quality - further substantial improvement Non-performing exposures €2.9bn reduction €9.4bn Dec 16 €8.1bn Jun 17 €6.5bn Dec 17 Impairment charge on customer loans 32bps €296m 2015 21bps €176m 2016 2bps €15m 2017 Annual impairment charges on customer loans as a % of average gross loans for the period Customer loan impairment charge Asset Quality continues to improve • • • Non-performing exposures (NPEs) of €6.5bn, 31% / €2.9bn reduction during 2017 Impaired loans of €4.0bn, 35% / €2.2bn reduction during 2017; down 73% from reported peak in June 2013 Reductions reflect successful resolution strategies and the positive economic environment Expect further reductions in 2018 and beyond; pace will be influenced by a range of factors Impairment charge on customer loans reduced Net impairment charge of 2bps (€15m) for 2017 benefiting from reversals on the Irish mortgage book Expect the impairment charge for 2018 to be up to c.20 bps, reflecting the transition to IFRS 9 and a slower pace of impairment reversals with a consequent trend towards more normalised levels Impaired loan coverage ratio of 49%; provision coverage reducing as legacy impaired loans are resolved IFRS 9 • Estimated net quantitative impact on initial adoption of IFRS 9 on 1st January 2018 is c.€120m post tax, primarily driven by an increase in impairment loss allowances No change in quantum of NPES on transition to IFRS 9 Bank of Ireland Group 22 22

View entire presentation