Bank of Ireland 2019 Credit Presentation
Strategic imperative to improve UK returns
Invest
•
Pivot to niche mortgages: higher
margins and lower LTV; £225m new
lending in 2019
• Auto finance: increased new lending
and distribution; supporting growth in
market share
.
Maintaining commercial discipline on
risk and pricing
.
•
•
Bank of Ireland 2019 Credit Presentation
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Improve
1000
UK Post Office: partnership
extended with enhanced alignment
and benefits
Costs: reduced by 18%; cost
income ratio of 60% (2018: 66%)
Funding costs: inaugural wholesale
funding transaction (£350m)
completed
PBT: contributed 23% to Group
underlying PBT
A
Reposition
• UK credit cards: sale added
10bps to Group CET1 ratio
Current accounts: exit from PO
current accounts
• ATMs: exiting from unprofitable
business in line with strategy
Non-core: continue to reduce
legacy portfolios
.
Outlook
. Growth: focused on profitable lending growth in our core businesses of mortgages, auto finance and consumer lending
•
•
Risk: commercial discipline and risk focus in context of ongoing Brexit uncertainty
Margin: ongoing margin optimisation across lending and liabilities; however competitive market backdrop expected to persist
. Costs: continue to reduce costs to drive improved efficiency and returns
•
Returns: ROTE target of high single digits will be beyond 2021; strategic imperative to improve returns
Bank of Ireland
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