Bank of Ireland Group (BIRG) Investor presentation summary

Strategic and financial performance

• Achieved strong financial results with profit before tax of €1.1bn, up 5% year-on-year, and interim dividend of 35c per share, reflecting upgraded FY24 guidance.

• Return on tangible equity (ROTE) reached 18.9%, cost-to-income ratio at 44%, and CET1 ratio at 15.4%.

• Net interest income grew 2% like-for-like, supported by higher liquid asset income and lending momentum.

• Capital generation was robust at 170bps in H1, with FY24 guidance raised to 310-320bps.

• Interim distributions commenced, with €352m paid and surplus capital returned via share buybacks.

Business and market performance

• Irish retail banking saw 4% growth in residential mortgages and stable customer balances, maintaining a 41% market share.

• Wealth and Insurance division reported 21% AUM growth and 84% increase in net inflows, with income up 6%.

• Corporate and Retail UK segments performed well, with underlying UK profit before tax up 43% year-on-year.

• Net lending in Ireland rose by €1.0bn, mainly from mortgages and SME/corporate lending.

• Customer deposits remained stable at €101bn, with continued growth in term deposits.

Asset quality and risk management

• Asset quality improved, with the NPE ratio reduced to 2.9% and total coverage unchanged at 1.5%.

• Stage 2 loans fell by €1.6bn, and Stage 3 coverage increased to 31%.

• Impairment charge was materially lower, with FY24 cost of risk guidance improved to c.20bps.

• Loan book remains diversified, with 60% in mortgages (average LTV 54%) and 25% in SME/corporate.

• Sensitivity analysis shows resilience to macroeconomic scenarios and property price changes.