Bank Of Ireland Group Plc · EURONEXT:BIRG
Bank Of Ireland — FY 2024 Earnings Presentation
64 slides from Bank Of Ireland's earnings presentation, Feb 24, 2025
Slide 1: FY 2024 Annual Results Announcement
20 FY 2024 Annual Results Announcement 24 24 February 2025 1
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Slide 3: Group CEO Myles O'Grady: The National Champion Bank
Co ers lle om ag st Purpose ue Cu s FY 2024 Performance Helping you Group CEO rs Thrive de So et ol h ci re Myles O’Grady y a Sh Bank of Ireland – The National Champion Bank Stronger Simpler Sustainable relationships business company 3
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Slide 5: Highly capital generative business model
Highly capital generative business model Attractive Irish economy resilient and growing; markets cumulative 2025-27 GDP growth of > 10% vs Euro area c.4% Unique market Market leading banking, wealth and assurance franchises position Delivering 2025-27 deposit and loan CAGR of 3-4%, AUM CAGR of 7-8%
Slide 6: Strategic pillars propel growth and optimise stakeholder outcomes
Strategic pillars propel growth and optimise stakeholder outcomes +5% +25 Stronger relationships New customers 1 Personal RNPS Growing Customer (+11pts y/y) numbers +3% y/y -21% y/y Simpler business Active digital Customer Better Customer users 2 complaints 3 outcomes Sustainable company €14.7bn #1
Slide 7: 2024 was another year of strong strategy execution
2024 was another year of strong strategy execution Sustainable growth +6% +2% +19% Irish loans Irish deposits AUM Strong financial performance €1.9bn 46% 14.6% PBT CIR CET1 Generating attractive 16.8% 310bps €1.2bn returns ROTE Capital generation 1 80% total payout ratio 14% of market cap2 Footnotes
Slide 8: Capital generation compares favourably to peers
Capital generation compares favourably to peers* FY24 capital generation1 (bps) 2024 total shareholder return2 FY24 total distribution yield (% of TNAV) (% of market cap) 17.9% 310bps 14.1% 14.1% 12.2% 242bps Peer average Bank of Ireland Peer average Bank of Ireland Peer average Bank of Ireland 2023
Slide 9: Irish economy is resilient and growing
Irish economy is resilient and growing Positive Irish growth outlook Debt dynamics in good shape 3.5% 3.5% 120% 3.0% 100% 91% 88% 80% 74% 60% 41% 1.4% 1.3% 1.1% 40% 20% 0% 15 16 17 18 19 20 21 22 23 F F F F 24 25 26 27 20 20 20 20 20 20 20 20 20 2025 2026 2027 20 20 20 20 n Ireland GDP n Euro area G
Slide 10: Irish mortgage book continues to grow
Irish mortgage book continues to grow 2024 performance 2025 outlook +7% y/y 40% New housing output of > 40k expected, from 30k in 2024 €34.4bn Market share of new mortgages Irish mortgage book +41pts Anticipated mortgage market new lending (+52% since 2022) Customer Effort Score growth of c.7% Conti
Slide 11: Everyday Banking – strong franchise performance
Everyday Banking – strong franchise performance 2024 performance 2025 outlook €82bn +4% y/y System level deposit growth of 3-4% expected +2% y/y €273m Everyday Banking Everyday Banking Further deposit growth while maintaining balances fee income commercial discipline; flow-to-term lower than 2024 79
Slide 12: Wealth and Insurance is a growth opportunity
Wealth and Insurance is a growth opportunity for Bank of Ireland 2024 performance Compelling medium-term opportunity €55bn Total AUM c.50% Addressable Irish wealth market >€450 billion +19% y/y W&I fee income as €4.0bn net flows % of Group business Underpinned by Irish Household wealth 9% of opening
Slide 13: Corporate and Commercial customer sentiment positive
Corporate and Commercial customer sentiment positive 2024 performance 2025 outlook +6% y/y -€0.6bn y/y Irish loan book growing sustainably and in €17.3bn €2.2bn line with domestic economy Irish GB Corp and US CRE Growth in non-lending income and in net lending planned deleveraging deposit book Ongoi
Slide 14: Retail UK strategy refresh complete
Retail UK strategy refresh complete 2024 performance 2025 outlook £301m +3% y/y Stable loan book c.£17bn +27% y/y Retail UK loans (ex PL) Underlying PBT UK c.15% of Group capital Focus on operational efficiency Investing in Northern Ireland Everyday UK personal loans Banking business 2.2% disposal M
Slide 15: Meeting or beating medium term targets
Meeting or beating medium term targets 2023-2025 FY23 FY24 Financial targets Performance Performance Return on tangible equity (ROTE) c.15% 17.3% 16.8% Cost-to-income ratio (CIR) < 50% 42% 46% c.40% payout 60c DPS 63c DPS Ordinary dividend c.40-60% policy provides (40% payout) (41% payout) flexibili
Slide 16: FY 2024 Financials
FY 2024 Financials Group CFO Mark Spain 16
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Slide 18: Financial summary
Financial summary Balance sheet growth Fee income growth Loans and deposits +3% Wealth and Insurance +6% Strong cost discipline Asset quality outperformance CIR 46% NPE ratio 2.2% (-90bps) Attractive returns Strong capital generation ROTE 16.8% 310bps; Distributions +6% Strong 2024 performance under
Slide 19: Strong financial performance in FY24
Strong financial performance in FY24 FY 2023 FY 2024 y/y% (€m) (€m) Net interest income 3,682 3,565 -3% Business income 707 730 3% Additional expenses, valuation and other items 39 17 -56% Total Income 4,428 4,312 -3% Operating expenses (1,857) (1,970) 6% Levies and regulatory charges (170) (123) -2
Slide 20: FY24 net interest income in line with guidance
FY24 net interest income in line with guidance 2024 net interest income drivers FY24 NII -2% on like-for-like basis1 €176m (€370m) €133m Lending income higher reflecting growth in loan volumes Liquid asset income increased from higher €3,626m €3,565m rates Funding costs higher reflecting market and
Slide 21: Loan book growth driven by excellent Ireland performance
Loan book growth driven by excellent Ireland performance Net lending drivers FY24 performance €3.2bn €0.2bn (€0.9bn) Irish loan book growth > 6%; €3.2bn driven €0.3bn by mortgages (€2.1bn) and SME/Corporate (€0.8bn) Retail UK growth supported by growth in mortgages Reduction in international corpora
Slide 22: Strong AUM growth of +19%
Strong AUM growth of +19% AUM drivers FY24 performance €4.8bn Record net inflows - c.9% of starting AUM, with strong demand for liquidity solutions Market growth equivalent to c.11% €4.0bn 2025 outlook Uniquely placed to capture growth €54.8bn opportunity, leveraging existing scale (€55bn AUM) and b
Slide 23: Strong retail deposit franchise
Strong retail deposit franchise Total customer balances Everyday Banking – term % FY24 performance €100bn €103bn 6.5% 10.3% Total deposits +3% at €103bn Everyday Banking deposits +2%, reflecting €81.7bn underlying growth, partially offset by flows to €6.7bn €6.5bn €80.1bn Davy €13.6bn €14.7bn €5.2bn
Slide 24: Structural hedge contribution increasing
Structural hedge contribution increasing Structural hedge (gross fixed leg income)1 FY24 performance Avg volume €65bn €64bn €65-66bn Total hedge stable at c.€64bn, c.€9.5bn ............................ maturing annually, avg duration c.3.5yrs ............................ ............................
Slide 25: Total business income (incl JVs) +4%
Total business income (incl JVs) +4% FY 2023 FY 2024 (€m) (€m) FY24 performance Wealth and Insurance 332 351 Wealth and Insurance +6% driven by Davy wealth Retail Ireland 146 152 Retail Ireland +4% from higher current account and cards income Retail UK (34) (14) Retail UK reflects lower partnership
Slide 26: Operating expenses in line with guidance
Operating expenses in line with guidance Operating expenses drivers1 FY24 performance Operating expenses +6% y/y €30m • Net growth of €83m (c.4%) reflects €83m inflation, BAU investment and higher pension costs, offset by efficiencies • Additional investment of €30m (c.2%) to drive future efficienci
Slide 27: Non-core items include UK motor finance provision
Non-core items include UK motor finance provision FY23 FY24 Non-core items FY24 performance (€m) (€m) UK motor finance provision €172m based Provision for UK motor finance redress - (172) on probability-weighted scenario analysis Charge of €108m for impairment of Impairment of software intangibles -
Slide 28: NPE ratio reduced by 90bps to 2.2%
NPE ratio reduced by 90bps to 2.2% Group loan asset quality Significant asset quality improvement 1.5% 3.1% 1.2% 2.2% 3% 2% NPE ratio reduced by 90bps y/y to 2.2% 16% 13% Stage 2 loans reduced by 16% / €2.0bn Total coverage ratio 1.2% as NPEs reduce 81% 85% – Stage 3 coverage 29% (Dec 23 26%) Dec-23
Slide 29: Impairment charge of 15bps; better than guidance
Impairment charge of 15bps; better than guidance Impairment charge components1 (annualised) Cost of risk Loan loss experience and portfolio activity charge (€143m) 18bps (1bps) (2bps) 15bps (€152m) portfolio activity charge (19bps €7m annualised) €13m €9m release from affordability assessment of ret
Slide 30: Strong organic capital generation in line with guidance
Strong organic capital generation in line with guidance 2024 performance RWAs RWAs Organic capital generation of 310bps €52.5bn €55.3bn RWA of 65bps from lending and other items Total distributions +6% to €1.22bn (80% 310bps (65bps) payout); DPS 63c (+5% y/y) / (41% payout); (215bps) approved share
Slide 31: Strong momentum supporting FY25 guidance
Strong momentum supporting FY25 guidance Income Operating expenses NII > €3.25bn c.3% higher Cost-to-income ratio < 50% Growth in total business Strong capital income (incl. JVs) of c.5% generation of 250-270bps Additional Basel IV benefit c.110bps Cost of risk ROTE Low to mid 20bps c.15% Delivering
Slide 32: Outlook and concluding remarks
Outlook and concluding remarks Group CEO Myles O’Grady 32
Slide 33: Leading Irish franchise, complementary international footprint
Leading Irish franchise, complementary international footprint Customer liabilities and loans Ireland’s only integrated banking, wealth and assurance model Customer Deposits Customer Irish and UK retail and Wealth and Insurance and AUM lending commercial bank franchise €158bn €82.5bn c.3.5m c.650k +
Slide 34: Bank of Ireland's highly capital generative business model
Bank of Ireland’s highly capital generative business model Diffe Outlook for strong e ren Market leading positions c tiv ti growth in Ireland, well a m at across our banking, wealth tr s o above EU levels et and assurance franchises m y at ed el k d bu ar hl Hig sine ss Strong capital generation and
Slide 35: Positive outlook to 2027
Positive outlook to 2027 2026-2027 Highly attractive GDP growth > 3% p.a. markets ECB deposit rate 2.0% Differentiated Deposit / loan growth 3% / 4% p.a. business model AUM growth 7-8% p.a. Cost base c.€2bn Focus on efficiency Cost-to-income ratio < 50% ROTE > 17% by 2027 Attractive returns Capital
Slide 36: Footnote glossary
Footnote glossary Slide 5: Highly capital generative business model Slide 12: Wealth and Insurance is a growth opportunity for Bank of Ireland 1. Cost-to-income ratio excludes levies and regulatory fees. Basis of calculation 1. New mortgages to first time buyers taken out direct through our bank cha
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Slide 38: Appendix
= Bank of Ireland Appendix 38
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Slide 40: Appendix - table of contents
Appendix - table of contents Slide No. • Overview of customer loans and new lending volumes 41 • Ireland mortgages 42 • Net interest income analysis 43 • Asset quality – Non-performing exposures by portfolio 44 – Portfolio by Stage 45 – Residential mortgages / Consumer loans 46 – Non-property SME an
Slide 41: Overview of customer loans and new lending volumes
Overview of customer loans and new lending volumes Profile of customer loans1 at Dec 2024 (gross) Composition (Dec 24) ROI (€bn) UK (€bn) RoW (€bn) Total (€bn) Total (%) Mortgages 34.4 16.2 0.0 50.6 61% Non-property SME & Corporate 10.9 4.5 5.0 20.4 24% SME 7.2 1.6 0.0 8.8 11% Corporate 3.7 2.9 4.9
Slide 42: Ireland mortgages: €34bn
Ireland mortgages: €34bn New lending volumes and market share Ireland mortgages (gross) 41% 40% €32.0bn €34.0bn 28% €22.4bn €22.5bn 23% €23.0bn €24.2bn €4.9bn €5.1bn €13.1bn €15.6bn €3.9bn €2.4bn €2.5bn €3.6bn €5.2bn €1.6bn €6.8bn €5.3bn €5.4bn €4.6bn 2021 2022 2023 2024 Dec-21 Dec-22 Dec-23 Dec-24
Slide 43: Net interest income analysis
Net interest income analysis H1 2023 H2 2023 H1 2024 H2 2024 Average Gross Gross Average Gross Gross Average Gross Gross Average Gross Gross Volumes interest Rate Volumes interest Rate Volumes interest Rate Volumes interest Rate (€bn) (€m) (%) (€bn) (€m) (%) (€bn) (€m) (%) (€bn) (€m) (%) Ireland Loa
Slide 44: Non-performing exposures by portfolio
Non-performing exposures by portfolio Non-performing Impairment loss Advances Non-performing exposures Impairment loss Composition (Dec 24) (€bn) (€bn) exposures as % of allowance (€bn) allowance as % of advances non-performing exposures Residential Mortgages 50.6 0.9 1.7% 0.2 22% – Ireland 34.4 0.
Slide 45: Portfolio by Stage
Portfolio by Stage Gross carrying amount Composition (Dec 24) Impairment loss allowance (before impairment loss allowance) ILA % of Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total gross loans Sectoral Analysis by Stage €m €m €m €m €m €m €m €m €m €m Residential Mortgages 47,169
Slide 46: Residential mortgages / Consumer loans
Residential mortgages / Consumer loans Gross loans by Stage Residential mortgages Residential mortgages Consumer €5.8bn • Mortgage portfolios 61% of Group loan book €50.3bn €0.7bn €0.1bn – Average LTV of 54% on stock €47.1bn €5.1bn €2.4bn €0.8bn – 88% of the portfolio has LTV < 80% €0.8bn €0.1bn €3.
Slide 47: Non-property SME and Corporate / Property and Construction
Non-property SME and Corporate / Property and Construction Gross loans by Stage Non-property SME and Corporate Non-property SME and Corporate Property and Construction €7.4bn • 24% of Group loan book, well diversified by geography and sector €7.2bn €20.5bn €20.4bn €0.4bn €0.3bn • €0.5bn increase in
Slide 48: Forward Looking Information (FLI) – macroeconomic scenarios
Forward Looking Information (FLI) – macroeconomic scenarios Ireland United Kingdom 31 December 2024 2024 2025 2026 2027-2029 2024 2025 2026 2027-2029 Probability weighted scenario Modified domestic demand1 2.4% 2.4% 2.3% 2.8% n/a n/a n/a n/a GDP growth2 (0.5%) 3.0% 3.1% 3.0% 1.0% 1.0% 1.1% 1.5% GNP
Slide 49: ILA sensitivity to macroeconomic scenarios
ILA sensitivity to macroeconomic scenarios The following table indicates the approximate extent to which impairment loss allowance (ILA), excluding Group management adjustments, would be higher or lower than reported were a 100% weighting applied to the central, upside and downside future macroecono
Slide 50: Capital and liquidity
Capital and liquidity Liquidity Dec 23 Dec 24 • Funding and liquidity remains strong from stable customer deposits Customer loans 80 83 and MREL issuance Liquid assets 44 44 Wealth and Insurance assets 25 28 Customer deposits: €103.1bn Other assets 7 7 • Overall Group customer deposit volumes of €10
Slide 51: Ordinary shareholders' equity and TNAV
Ordinary shareholders’ equity and TNAV Dec 23 Dec 24 Movement in ordinary shareholders’ equity (€m) (€m) Ordinary shareholders’ equity at beginning of period 10,489 11,592 Movements: Profit for the period 1,601 1,531 Share buy back - repurchase of shares (125) (520) Dividend paid to ordinary shareho
Slide 52: Fully Loaded CET1 ratio
Fully Loaded CET1 ratio Fully loaded ratio (€bn) Fully loaded ratio (€bn) Capital ratios – 31 December 2024 Dec 23 Dec 24 Total equity 12.6 13.0 Foreseeable distribution1 (1.2) (0.9) Less Additional Tier 1 (1.0) (1.1) Deferred tax 2 (0.8) (0.6) Intangible assets and goodwill (1.0) (1.1) Expected los
Slide 53: Regulatory capital requirements
Regulatory capital requirements Pro forma CET1 regulatory capital requirements 2024 2025 2026 Pillar 1 – CET1 4.50% 4.50% 4.50% Pillar 2 Requirement (P2R) 1.32% 1.35% 1.35% Capital Conservation Buffer (CCB) 2.50% 2.50% 2.50% Ireland Countercyclical Buffer (CCyB) 0.99% 0.99% 0.99% UK Countercyclical
Slide 54: Risk Weighted Assets (RWAs) / Leverage ratio
Risk Weighted Assets (RWAs) / Leverage ratio EBA transparency exercise 2024 Customer lending average credit risk weights – Dec 20241, 2 Country by country average IRB risk weights (Based on regulatory exposure class) Residential Mortgages – Jun 2024 EAD 3 RWA Avg. Risk Sweden 5.0% (€bn) (€bn) Weight
Slide 55: Divisional P&L
Divisional P&L Operating profit pre-impairment Underlying profit / (loss) before tax 12 months ended December 2024 (€m) (€m) Retail Ireland 1,077 1,059 Wealth and Insurance 105 107 Retail UK - € 297 355 Retail UK - £ 253 303 Corporate and Commercial 1,325 1,196 Group Centre & other (587) (587) Group
Slide 56: Return on Tangible Equity (ROTE)
Return on Tangible Equity (ROTE) Headline vs. Adjusted Adjustments Other expenses / FY 2024 Adjusted for FY 2024 income and other Pension Headline CET1 ratio Adjusted valuation items, surplus (€m) at 14.0% (€m) net of tax Profit for the period 1,531 Coupon on Additional Tier 1 securities (62) Prefer
Slide 57: Underlying cost-to-income ratio
Underlying cost-to-income ratio Headline vs. Adjusted FY 2024 Pro forma FY 2024 Headline adjustments Pro forma (€m) (€m) (€m) Net interest income 3,565 3,565 Other income – Business income 730 730 – Additional expenses and other valuation items 17 (17) 0 Total income 4,312 (17) 4,295 Costs – Operati
Slide 58: Defined benefit pension schemes
Defined benefit pension schemes Group IAS19 defined benefit pension (deficit)/surplus Total Group defined benefit pension scheme assets (%) 3.60% 3.40% 3.80% €9.6bn €6.9bn €7.1bn €7.0bn 1.35% 66% 66% 69% 70% €0.99bn €0.60bn €0.70bn €0.68bn 24% 29% 25% 25% 10% 5% 6% 5% Dec-21 Dec-22 Dec-23 Dec-24 Dec
Slide 59: Sustainable Company: Practical, meaningful outcomes in 2024
Sustainable Company: Practical, meaningful outcomes in 2024 Supporting the €14.7bn Lower emissions Green Transition Sustainable finance +32% y/y Residential book -8%; Own operations -5%; Target €15bn by 2025, and €30bn by 2030 CRE -17%; Corporate book coverage level +5% Enhancing Financial #1 EcoSav
Slide 60: Forward-looking statement
Forward-looking statement This document contains forward-looking statements with respect to certain of Bank of Ireland Group plc (the ‘Company’ or ‘BOIG plc’) and its subsidiaries’ (collectively the ‘Group’ or ‘BOIG plc Group’) plans and its current goals and expectations relating to its future fina
Slide 61: Contact details
Contact details For further information please contact: • Group Chief Financial Officer Mark Spain mark.spain@boi.com • Investor Relations Darach O’Leary tel: +353 87 948 0650 darach.oleary@boi.com Eamonn Hughes tel: +353 87 202 6325 eamonn.hughes@boi.com Owen Callan tel: +353 86 047 1678 owen.calla
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Bank of Ireland Group — FY 2024 Earnings Presentation on 6ix