2022 Interim Results - Debt Investor Presentation
Net interest income modestly higher
excluding TLTRO impacts
€1,076m
Net interest income movement
€42m
€18m
(€48m)
€1,088m
(€16m)
€1,072m
H1 21 ex
Lower
FX
TLTRO1
deposit
funding costs
Wholesale
funding
costs/Other²
H1 22 ex
TLTRO
TLTRO
H1 22
€1,080m
Net interest income³
€1,139m
€1,072m
293bps
304bps
291bps
32%
37%
39%
(27bps)
(25bps)
(23bps)
Bank of Ireland 2022 Interim Results - Debt Investor Presentation
Net interest income H1 performance modestly higher in
H1 22 vs H1 21 excluding TLTRO impacts
-
Lower funding costs due to improved UK deposit
margins and expansion of negative interest rates on
deposits, offset by higher wholesale funding costs
Positive FX impact of c.€18m
Bond sales in H1 22 will reduce 2022 net interest
income by c. (€20m), c.(€7m) impact in H1 22
Expect to maintain TLTRO participation to maturity
in March 2024, subject to no change in terms and
conditions
Accounting impact of (€16m) in H1 22 to reverse in
H2 22 with FY 22 benefit of c.€19m (H2 22 c.€35m)
Pricing discipline maintained; loan asset spread 13bps
higher H1 22 vs H1 21
2022 Outlook
2022 net interest income expected to be modestly
higher than 2021, based on expectations for interest
rates, and projected TLTRO benefit of c.€19m
H121
Loan asset spread
H122
H2 21
Liquid assets as % of AIEAS
Liquid asset spread
1 c.€4m of TLTRO income included in H1 2021 NII of EUR1,080m
2 Other includes lower structural hedge income of €5m and lower liquid asset income of €4m
3 Spread = Loan asset yield or Liquid asset yield less Group's average cost of funds, excludes impact from TLTRO
4 Interest rate assumptions; ECB deposit rate of 75bps, BOE base rate of 280bps and Fed Funds rate of 325bps at end 2022
Bank of Ireland
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