2018 Credit Presentation

Strategic investment and rigorous allocation of capital Organic capital generation (180bps) 1 2 3 4 2018 Credit Presentation Growth in loan book 200-250bps Investment / allocation of capital in 2018 CET1 of c.200-250bps to accommodate c.20% loan book growth over 4 years (2018-2021) Net lending growth of €1.3bn in 2018 (c.40bps) Transformation 50-60bps p.a. • Transformation Programme: investment of 50-60bps p.a. Transformation investment of €306m (c.60bps) in 2018 On track to reduce costs every year to €1.7bn in 2021 22 22 Regulatory capital demand Dividend / distributions • IFRS 16 impact of 20 bps on 1 Jan 2019 Capital resilience demonstrated in 2018 EBA Stress Test Evolving regulatory framework including EBA and ECB guidelines (definition of default, IRB models, NPE requirements, etc.) could consume c.80bps of CET1 by end 2020 Will pursue opportunities to unlock capital in balance sheet as appropriate Dividend increased to 16c per share (€173m / 40bps) from 11.5c per share (€124m / 25bps) in 2017 No change to dividend policy or guidance Other means of capital distribution will be considered to the extent the Group has excess capital Bank of Ireland

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