Bank Of Ireland Group Plc · EURONEXT:BIRG
Bank Of Ireland — Debt Investor Presentation (May 2025)
70 slides from Bank Of Ireland's debt investor presentation, May 2025
Slide 1: FY 2024 Debt Investor Presentation
FY 2024 20 Debt Investor Presentation 24 31 December 2024 1
Slide 2: Overview
Co ers lle om ag st Purpose ue Cu s Bank of Ireland Helping you rs Thrive de So Overview et ol h ci y a re Sh Bank of Ireland – The National Champion Bank Stronger Simpler Sustainable relationships business company 2
Slide 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: Wealth and Insurance is a growth opportunity for Bank of Ireland
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 11: 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 12: 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 13: 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 14: 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 15: Operational Performance
= Bank of Ireland Operational Performance
Slide 16: 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 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: Capital, MREL & Liquidity
= Bank of Ireland Capital, MREL & Liquidity
Slide 28: 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 29: Regulatory Capital Ratios
Regulatory Capital Ratios Regulatory Capital Metrics Dec-23 Dec-24 CET1 • Movement in Regulatory CET1 ratio aligned to movement in Fully Loaded ratio CET1 Ratio 14.5% 14.6% along with impact of CRD phasing (-20bps) Tier 1 & Total Capital • Increase in Tier 1 ratio largely aligned Tier 1 Items/ Instr
Slide 30: Balance sheet
Balance sheet Dec-23 Dec-24 Liquidity • 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 €103.1bn at
Slide 31: Significant buffer to potential MDA restrictions
Significant buffer to potential MDA restrictions Regulatory CET1 Ratio vs MDA Threshold Regulatory CET1 Ratio vs MDA Threshold MDA c.3.3% Buffer • Regulatory CET1 ratio of 14.6% at 31 Dec 2024 is fully aligned 1.49% n Buffer with the Fully Loaded ratio 1.50% n CCyB n O-SII • c.40bps increase in the
Slide 32: 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 33: EBA Transparency Exercise 2024
EBA Transparency Exercise 20241 Bank of Ireland’s IRB RWA density across major loan portfolios exceeds a wide distribution of European peers IRB Lending: SME Lending2 IRB RWA: Corporate Lending3 120% 120% 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% 1 2 BOI 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 1
Slide 34: 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 35: Credit ratings
Credit ratings Instrument ratings BOIG BOIG (Stand alone (Senior ratings) BOIG GovCo BOIMB (ACS)1 BOIG GovCo BOIG GovCo ratings) Aaa Aaa Aaa C AAA AAA AAA AAA Investment Grade Aa1 Aa1 Aa1 AA+ AA+ AA+ AA+ baa1 A3 Aa2 Aa2 Aa2 AA AA AA AA Positive Positive Aa3 Aa3 Aa3 AA- AA- AA- AA- A1 A1 S A1 A+ A+ A
Slide 36: 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 37: Summary highlights
Summary highlights • Strong organic capital generation of 310bps in FY 2024; 250-270bps p.a. expected in 2025-2027 Capital • Future capital issuance influenced by market conditions and refinancing/ growth • IRB RWA density across largest customer loan portfolios continues to exceed a wide distributi
Slide 38: Green Bond Framework
= Bank of Ireland Green Bond Framework 38
Slide 39: Green Bond Framework
Green Bond Framework Green Bond issuance is an important part of the Group’s Responsible and Sustainable Business Strategy as we look to finance our customers’ transition to the low carbon economy and take an active role in combating climate change through sustainable finance. Green Bond Framework P
Slide 40: Use of Proceeds (Green Bond Framework 2024)
Use of Proceeds (Green Bond Framework 2024) ICMA GBP Eligible Eligibility Criteria Example Green UN SDG Category Projects Residential and Commercial Buildings in Ireland • Residential and commercial buildings built before January 2021 belonging to the top 15% low carbon buildings in Ireland (BER lab
Slide 41: Our ESG Ratings
Our ESG Ratings • The Group participates in a number Agency Rating scale 2024 2023 Comment of ESG ratings and benchmarks with a focus on agencies that have a strong Scale of 0 – 100, 16.6 17.9 The Group’s score improved slightly reputation for financial services with a lower from 17.9 to 16.6 during
Slide 42: 2021 Green Bond Framework – FY24 Allocation Report
2021 Green Bond Framework – FY24 Allocation Report Green Eligible Assets Portfolio Green Liabilities 2021 Green Bond Framework Eligible Portfolio (FY24) Eligibility Criteria Number Amount ISIN Settlement Maturity Amount of Loans (EUR) Date Date (EUR) 4% 1% (€307m) (€109m) Green Buildings - 23,207 7,
Slide 43: 2024 Green Bond Framework – Identified assets
2024 Green Bond Framework – Identified assets 2024 Green Bond Framework Eligible Portfolio (FY24) As of FY23, Bank of Ireland has Some of the Eligible Green Assets identified c.€3.1bn of Eligible under the new 2024 Green Bond Green Assets under the new Framework are also eligible under 2024 Green Bo
Slide 44: Outlook
= Bank of Ireland Outlook 44
Slide 45: 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 46: 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 47: Footnote glossary
Footnote glossary Slide 3: Highly capital generative business model Slide 10: 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 set
Slide 48: Footnote glossary
Footnote glossary Slide 29: Regulatory Capital Ratios Slide 40: Use of Proceeds (Green Bond Framework 2024) 1. Tier 1 bucket increased by c.7bps to 1.93% 1. In line with the EU EPBD directive, Ireland carries out a cost optimal analysis Slide 32: Risk Weighted Assets (RWAs) / Leverage ratio to defin
Slide 49: Appendix
= Bank of Ireland Appendix 49
Slide 50: Appendix - table of contents
Appendix - table of contents Slide No. • Overview of customer loans and new lending volumes 51 • Ireland mortgages 52 • Net interest income analysis 53 • Asset quality – Non-performing exposures by portfolio 54 – Portfolio by Stage 55 – Residential mortgages / Consumer loans 56 – Non-property SME an
Slide 51: 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 52: 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 53: 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 54: 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 55: 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 56: 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 57: 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 58: 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 59: 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 60: 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 61: 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 62: 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 63: 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 64: 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 65: 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 66: 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 67: Corporate Structure
Corporate Structure Holding company Capital / MREL Bank of Ireland Group plc (BOIG) AT1 Tier 2 Senior unsecured 100% The Governor and Company of the Bank of Ireland (GovCo) Senior unsecured Operating subsidiaries 1 Funding 100% 100% 100% New Ireland Assurance Bank of Ireland Mortgage Bank Unlimited
Slide 68: 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 69: 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
Slide 70: Slide 70
Bank of Ireland Group — Debt Investor Presentation (May 2025) on 6ix