2019 Interim Results Credit Presentation slide image

2019 Interim Results Credit Presentation

Costs continue to reduce - net reduction €30m (3%) €1.9bn Operating expenses continue to reduce €1,796m €1,739m €840m €104m 2017 €113m 2018 €63m 2019 2020 Operating expenses Transformation Investment charge Operating Expenses (including transformation investment charge) c.€1.7bn 2021 2019 Interim Results Credit Presentation Transformation of cost base continues • Expect operating expenses (including transformation investment charge) in 2019 to be lower than 2018 and to reduce every year to c.€1.7bn in 2021 Operating expenses (before levies and regulatory charges) of €903m reduced by €30m net (3%) vs. H1 2018 Operating expenses of €840m - down €42m (4.8%) Staff costs decreased by €19m (5%) vs. H1 2018 reflecting; 4% lower average staff numbers Changing staff mix with fewer management layers, partially offset by Wage inflation of c.2.6% under the Group Career and Reward framework Other costs and depreciation reduced by €14m from process efficiencies and strategic sourcing, partially offset by higher depreciation from investment in technology Includes cost reduction of €26m relating to exiting UK Cards and ATMs H1 2018 (€m) H1 2019 (€m) Total staff costs 442 414 • - Staff costs 369 350 - Pension costs 73 64 • Other costs¹ 339 277 Depreciation¹ 101 149 Operating Expenses 882 840 51 63 Operating Expenses (before levies and 933 903 regulatory charges) . €63m (46%) charged to the income statement Levies and Regulatory charges 67 73 Total Operating Expenses 1,000 Average staff numbers 10,752 Cost-income ratio² 66% 976 10,368 65% • Levies and Regulatory charges of €73m Expect levies and regulatory charges to total €115m - €120m for FY 2019 Transformation Investment charge Transformation Investment charge of €63m • Total transformation investment in H1 2019 of €138m, in line with expectations 1 The adoption of IFRS 16 resulted in a decrease in other costs of €42m and an increase in depreciation of €38m 2 See Slide 55 for calculation Bank of Ireland 12
View entire presentation