Bank Of Ireland Group Plc · EURONEXT:BIRG
Bank Of Ireland — Investor Presentation (December 2013)
22 slides from Bank Of Ireland's investor presentation, December 2013
Slide 1: Capital Package to Address 2009 Preference Stock
Capital Package to Address 2009 Preference Stock 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by The Governor and Company of the Bank of Ireland (the "Company") solely for use in the presentation being given in connection with the evaluation of (i) an offering of c.10.24 per cent. Perpetual Non-Cumulative Notes (the “Notes”) to be issued by Baggot
Slide 3: Forward Looking Statement
Forward Looking Statement This document contains certain forward looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934 and Section 27A of the US Securities Act of 1933 with respect to certain of the Bank of Ireland Group‟s (the Group) plans and its current go
Slide 4: Introduction: Capital package in relation to €1.837bn 2009 Prefs
Introduction Capital package in relation to €1.837bn 2009 Prefs Capital Package agreed with Irish State and Central Bank of Ireland c.€580m equity placing to redeem c.€537m Prefs and pay expenses Notes, secured on €1.3bn 2009 Prefs, to be sold to private investors Significant benefits for BOI
Slide 5: Capital Package Summary
Capital Package Summary Capital Package, agreed with the Central Bank of Ireland (“CBI”) and the State, comprises: Placing of new units of ordinary stock, via a cashbox structure, to generate net proceeds of €537m to redeem €537m of 2009 Prefs – Placing pursuant to Bank‟s existing AGC authority
Slide 6: Key Benefits of Capital Package
Key Benefits of Capital Package Current Position Post Capital Package Implementation Exposed to ‘Step-Up’ on ‘Step-up’ removed €1.8bn 2009 Prefs (c.€460m) Annual 2009 Pref dividend of Reduced to c. €133m c.€188m 2009 Prefs count as CET1 CET1 treatment maintained for under CRD IV rules 2009 Prefs sol
Slide 7: Details of Ordinary Stock Placing
Details of Ordinary Stock Placing Underwritten ordinary stock placing, via a cashbox structure, to raise c.€580m of CET1 capital to redeem c.€537m of Prefs and pay c.€43m Capital Package expenses Accelerated book build of new units of ordinary stock to raise €537m net of expenses New units will
Slide 8: Details of 2009 Prefs Sale
Details of 2009 Prefs Sale Sale of 2009 Prefs to Baggot and issue of perpetual non-cumulative notes Investors invited to purchase €1.3bn c.10.24% Notes Notes issued by Baggot for market execution purposes Baggot to use proceeds from issue of Notes to acquire equivalent amount of 2009 Prefs fro
Slide 9: Appendices
Appendices Appendix I: Bank of Ireland overview Appendix II: Expected timetable of principal events Appendix III: Technical details concerning 2009 Prefs sale Part 2: Overview of the Banks Investment Case The appendices summarise certain information for ease of reference. Please consult the prospect
Slide 10: Appendix I: Investment Case
Appendix I: Bank of Ireland overview Investment Case Attractive franchises in Ireland and overseas: - Leading Irish retail and commercial bank in evolving market - Challenger consumer banking franchise in the UK, through Post Office partnership - Niche international business with appealing charact
Slide 11: Medium Term Targets
Appendix I: Bank of Ireland overview Medium Term Targets Metrics Dec 12 Jun 13 Target Loans and advances to €93bn €87bn c.€90bn customers1 Balance Sheet Group loan / deposit ratio 123% 121% 120% Buffer maintained over Capital - Core tier 1 ratio2 13.8% 14.2% regulatory minimum ELG covered liabilitie
Slide 12: Interim Management Statement – November 13: Trading
Appendix I: Bank of Ireland overview Interim Management Statement – 1 November 2013 Trading The positive momentum in re‐building the Group‟s net interest margin (NIM) has continued since 30 June 2013, with an average NIM in excess of 190bps achieved during the third quarter to 30 September 2013. Thi
Slide 13: Interim Management Statement – November 13: Asset Quality and Balance Sheet
Appendix I: Bank of Ireland overview Interim Management Statement – 1 November 2013 Asset Quality The macroeconomic environments in Ireland and the UK, the main markets in which we do business with our customers, have remained broadly stable to slightly improved from the first half of the year and o
Slide 14: Interim Management Statement – November 13
Appendix I: Bank of Ireland overview Interim Management Statement – 1 November 2013 The Central Bank of Ireland is currently conducting a Balance Sheet Assessment of the credit institutions covered under the ELG, including the Group. This exercise is a point in time capital adequacy assessment and i
Slide 15: Expected timetable of principal events
Appendix II: Expected timetable of principal events Announcement of Ordinary Stock Placing and 2009 Prefs sale 4 December 2013 Announcement of results of the Placing 4 December 2013 Announcement of results of the 2009 Prefs sale 4 / 5 December 2013 Settlement and dealings commence in Placing
Slide 16: Structural overview
Appendix III: Technical details concerning 2009 Prefs sale Baggot Securities Limited (“Baggot”) has been incorporated in Ireland in Structural overview accordance with Section 110 of the Irish Taxes Consolidation Act (1997) Baggot will issue listed Perpetual Non-cumulative Notes (the "Notes") to
Slide 17: The Secured Perpetual Non-cumulative Notes
Appendix III: Technical details concerning 2009 Prefs sale The Secured Perpetual Non-cumulative Notes The Notes issued by Baggot will be secured on the units of 2009 Prefs purchased from the NPRFC with the net proceeds of the sale of the Notes Issuer Baggot Securities Limited (“Baggot") The Notes Pe
Slide 18: The 2009 Preference Stock
Appendix III: Technical details concerning 2009 Prefs sale The 2009 Preference Stock Issuer The Governor and Company of the Bank of Ireland (the "Bank") Security Perpetual Non-Cumulative Redeemable Preference Stock (“2009 Prefs") Liquidation Repayment of the 2009 Prefs (including premium) ranks pari
Slide 19: Waiver Deed
Appendix III: Technical details concerning 2009 Prefs sale Agreement between Baggot and Bank of Ireland - 3 Under the Waiver Deed, Baggot will waive its right to receive any premium redemption or purchase price on the 2009 Prefs above the original subscription price of the stock When the Bank firs
Slide 20: Regulatory Treatment of the 2009 Prefs
Appendix III: Technical details concerning 2009 Prefs sale Regulatory Treatment of the 2009 Prefs The 2009 Prefs will qualify as grandfathered CET1 capital in full until 31 December 2017. Bank of Ireland has advised the Central Bank of Ireland, however that it is not the Bank’s intention to recognis
Slide 21: Bonus Stock
Appendix III: Technical details concerning 2009 Prefs sale Bonus Stock Should Bank of Ireland not pay a cash dividend on the 2009 Prefs, interest for that corresponding period will be satisfied through issuance of Bonus Stock, on a date determined by Bank of Ireland Payment of a cash dividend is s
Slide 22: Comparison of Baggot Notes and Contingent Capital Notes
Appendix III: Technical details concerning 2009 Prefs sale Bank of Ireland 10% Baggot Securities Limited c.10.24% Notes Contingent Capital Notes Tenor Perpetual, callable at anytime July 2016 maturity, no early redemption right Distribution c.10.24% payable annually fixed 10% fixed for life
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