Bank Of Ireland Group Plc · EURONEXT:BIRG
Bank Of Ireland — Q1 2020 Earnings Presentation
24 slides from Bank Of Ireland's earnings presentation, May 2020
Slide 1: Q1 2020 Interim Management Statement
20 20 Q1 2020 Interim Management Statement 31 March 2020
Slide 2: Group CEO Francesca McDonagh
2 Bank of Ireland Q1 2020 IMS Presentation Group CEO Francesca McDonagh
Slide 3: Executive Summary
3 Executive Summary Bank of Ireland Q1 2020 IMS Presentation • Focused on supporting our customers, colleagues and communities • The Group has responded dynamically to the crisis, demonstrating operational resilience and COVID-19 constructive engagement with all key stakeholders • Given significance
Slide 4: Committed to customers, colleagues and communities
4 Committed to customers, colleagues and communities Bank of Ireland Q1 2020 IMS Presentation Customers Colleagues Communities • For personal customers, payment • c.70% staff working from home; • Constructive engagement with breaks and flexible arrangements on prior rollout of Agile working Irish Go
Slide 5: Significant support being provided to our customers
5 Significant support being provided to our customers Bank of Ireland Q1 2020 IMS Presentation Payment breaks • Proactively engaging with Banking & Payments Federation Ireland (BPFI), the Central Bank of Ireland (CBI) and Government to provide support to our customers, including recent extension of
Slide 6: Economic outlook remains uncertain
6 Economic outlook remains uncertain Bank of Ireland Q1 2020 IMS Presentation Ireland Economic outlook remains uncertain 13.5% • Lower GDP and employment in 2020 across our core markets, with rebound expected in 2021 8.0% 5.0% • The impact of COVID-19 is leading to reduced levels of customer activit
Slide 7: Well positioned to support the recovery
7 Well positioned to support the recovery Bank of Ireland Q1 2020 IMS Presentation • Economic effects will have a material impact on Group’s 2020 financial performance: – Slower pace of mortgage, personal and SME credit formation, and reduced Wealth/Insurance demand; will result in lower NII and bus
Slide 8: Group CFO Myles O'Grady
8 Bank of Ireland Q1 2020 IMS Presentation Group CFO Myles O’Grady
Slide 9: Q1 2020 Financials
9 Q1 2020 Financials1,2 Bank of Ireland Q1 2020 IMS Presentation Mar-19 Mar-20 • Stable net interest income; net interest margin (NIM) of 2.07% (€m) (€m) • Valuation and other items of €155m reflecting; Net interest income 538 540 – Falling equity markets and widening credit spreads relating Busines
Slide 10: Q1 net lending growth; reduced activity in April
10 Q1 net lending growth; reduced activity in April Bank of Ireland Q1 2020 IMS Presentation Group loan book movement Net lending growth of €1.5bn • New lending €3.9bn increased 17% vs. Q1 2019; reflecting €3.9bn €1.4bn (€3.8bn) growth across all divisions (€1.4bn) • Irish mortgage market share incr
Slide 11: Net impairment charge 133bps in Q1 2020
11 Net impairment charge 133bps in Q1 2020 Bank of Ireland Q1 2020 IMS Presentation Net impairment (charges) / gains bps Net impairment charge €266m / 133bps • At Q1 2020, no loan loss outcomes related to COVID-19 have been experienced 5bps (2bps) (26bps) • Charge includes COVID-19 management overla
Slide 12: Strong capital position
12 Strong capital position Bank of Ireland Q1 2020 IMS Presentation Fully loaded CET1 ratio RWAs 40bps (10bps) (20bps) €49.9bn (50bps) RWAs 10bps €50.8bn 13.8% 13.5% Dec 19 Organic capital 2019 Dividend Transformation Loan Growth COVID-19 Mar 20 generation investment management overlay1 Fully loaded
Slide 13: Significant buffers to regulatory capital requirements
13 Significant buffers to regulatory capital requirements Bank of Ireland Q1 2020 IMS Presentation 14.4% Previous Revised Pro forma CET1 Regulatory Capital 13.5% Requirements Requirements Requirements 2020 2020 Pillar 1 – CET1 4.50% 4.50% 11.45% Previous Min. Regulatory Pillar 2 Requirement (P2R) 2.
Slide 14: Diversified balance sheet with improved credit quality
14 Diversified balance sheet with improved credit quality Bank of Ireland Q1 2020 IMS Presentation Group loan book – €80.8bn Diversified balance sheet with improved credit quality n Consumer • Mortgage portfolios 56% of Group loan book €5.6bn n UK mortgages 7% n Property and – Average LTV of 59% on
Slide 15: Further detail on SME, Corporate and Property
15 Further detail on SME, Corporate and Property Bank of Ireland Q1 2020 IMS Presentation Non-property SME and Corporate Higher impacted sectors – 5% Group loan book n UK SME • Wholesale / Retail and Hospitality €4.4bn / 5% of Group loan €1.6bn Subset of €21.5bn: book 7% Wholesale / Retail €2.6bn •
Slide 16: Strong track record on credit risk management; lowest NPE ratio of any Irish bank
16 Strong track record on credit risk management; Bank of Ireland Q1 2020 IMS Presentation lowest NPE ratio of any Irish bank NPEs by portfolio1 Non-performing exposures (NPEs) Mar 20 Coverage Ratio • NPE ratio reduced by a further 20bps to 4.2% Mortgages €1.5bn 26% (ROI) €1.4bn • Group NPE coverage
Slide 17: 2020 outlook
17 2020 outlook Bank of Ireland Q1 2020 IMS Presentation • COVID-19 is having a material impact on 2020 results: – Lower business activity impacting gross lending volumes, 2020 new lending could be between 50% – 70% of 2019 volumes (€16.5bn) – NIM to decline reflecting low interest rate environment
Slide 18: Appendix
18 Bank of Ireland Q1 2020 IMS Presentation Appendix
Slide 19: Loans and advances to customers – Staging
19 Loans and advances to customers – Staging1 Bank of Ireland Q1 2020 IMS Presentation Stage 1 – Stage 2 – Stage 3 – Purchased / 12 month ECL Lifetime ECL Lifetime ECL Originated Total Total Composition (Mar 20) (not credit (not credit (credit Credit (€bn) (%) impaired) impaired) impaired) Impaired
Slide 20: Non-performing exposures by portfolio
20 Non-performing exposures by portfolio1 Bank of Ireland Q1 2020 IMS Presentation Non-performing Non-performing Impairment Impairment loss Advances Composition (Mar 20) (€bn) exposures exposures as % loss allowance1 allowance as % of (€bn) of advances (€bn) non-performing exposures1 Residential Mor
Slide 21: Irish Government COVID-19 response
21 Irish Government COVID-19 response Bank of Ireland Q1 2020 IMS Presentation €13.3bn of measures to address the COVID-19 outbreak; equivalent to 6.8% of GNI or c.4% of GDP Worker support payments Business supports Business Investment Schemes • Increased income supports • €200m liquidity support pa
Slide 22: Forward – Looking statement
22 Forward – Looking statement Bank of Ireland Q1 2020 IMS Presentation This document contains forward-looking statements with respect to certain of the Bank of Ireland Group plc (the ‘Company’ or ‘BOIG plc’) and its subsidiaries’ (collectively the ‘Group’ or ‘BOIG plc Group’) plans and its current
Slide 23: Contact Details
23 Contact Details Bank of Ireland Q1 2020 IMS Presentation For further information please contact: • Group Chief Financial Officer Myles O’Grady tel: +353 76 624 3291 myles.ogrady@boi.com • Investor Relations Darach O’Leary tel: +353 76 624 4711 darach.oleary@boi.com Eoin Veale tel: +353 76 624 187
Slide 24: Slide 24
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