2022 Interim Results - Debt Investor Presentation
Defined benefit pension schemes
Group IAS19 Defined Benefit Pension (deficit)/surplus
Bank of Ireland 2022 Interim Results - Debt Investor Presentation
Total Group defined benefit pension scheme assets (%)
3.45%
€7.2bn
€7.2bn
€8.4bn
€8.9bn
€9.6bn
€7.7bn
2.10%
2.00%
1.30%
1.35%
55%
58%
0.80%
€1.38bn
65%
65%
69%
66%
€0.60bn
(€0.23bn)
(€0.14bn)
(€0.13bn)
(€0.48bn)
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Jun-22
21%
23%
23%
32%
21%
24%
24%
12%
12%
10%
10%
10%
+
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Jun-22
Listed equities
Diversified assets¹
Credit/LDI/Hedging
IAS19 DB pension (Deficit) / Surplus
EUR Discount Rate
IAS19 pension sensitivities
(Dec 2017 / Dec 2018 / Dec 2019 / Dec 2020 /Dec 2021/Jun 2022)
Euro €m
118
102
Interest rates¹
Credit spreads²
116
128
S
Inflation3
Global equity4
1 Sensitivity of Group funding position to a 0.25% decrease in interest rates
2 Sensitivity of IAS19 liabilities to a 0.10% decrease in credit spread over risk free rates
3 Sensitivity of Group funding position to a 0.10% increase in long term inflation
4 Sensitivity of Group funding position to a 5% decrease in global equity markets with
allowance for other correlated diversified asset classes
•
.
1 Diversified assets includes infrastructure, private equity, hedge funds and property
IAS19 net pension surplus of €1.377bn at June 2022 (€0.6bn net
surplus Dec 2021). Schemes in surplus €1.382bn, schemes in deficit
€0.005bn
Both euro and sterling discount rates increased significantly over
the half year (210 bps and 195 bps respectively) due to increases in
long term risk free interest rates and corporate bond credit spreads
The discount rate increases resulted in a reduction in Group DB
pension scheme liabilities, somewhat offset by a corresponding
reduction in the interest rate hedging assets
Long term euro inflation assumptions increased in the period (by
25bps) while long term sterling inflation assumptions reduced
marginally, with the resulting increase in liabilities partially offset by
the increase in inflation hedging assets
The decrease in asset valuations over the period has changed
the percentage mix in the overall asset portfolio, which is being
rebalanced to strategic asset allocations
Bank of Ireland
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