2021 Interim Results - Debt Investor Presentation slide image

2021 Interim Results - Debt Investor Presentation

Strong outlook as economic activity broadens 20.8% 5.9% Ireland 11.0% 6.5% 9.0% 6.2% 2020a 2021f 2022f ■GDP1 Unemployment² UK 5.2% 5.2% 4.6% 6.8% 5.8% (9.8%) Bank of Ireland 2021 Interim Results - Debt Investor Presentation Outlook for Irish economy continues to improve . • • Recovery continued in H1 2021 multinational sector leading recovery (GDP +10.7% y/y in Q1 2021) domestic economy expected to perform strongly in H2 2021 supported by growth of €18.5bn (+16.4%) in household deposits since the onset of the pandemic Irish government fiscal supports, equivalent to 22.7% of GNI*3 will continue to provide important breathing room over the coming months Irish unemployment rate projected to reduce in 2021 and 2022 New housing commencements (25,501 in the 12 months to May 2021) are now in-line with pre-pandemic levels, having troughed at 17,708 in the 12 months to Mar 2021 While there have been some challenges following last December's deal on Brexit, we see indications that most businesses are increasingly adjusting to the new trading arrangements Ireland vaccination rollout amongst the most successful in EU. c.85% of adults have received at least one dose, with c.70% now fully vaccinated 2020a 2021f GDP¹ Unemployment² 2022f Sources: Forecasts (July 2021) by Bank of Ireland Economic Research Unit; CSO; ECDC; Central Bank of Ireland; ONS; Department of Finance; Department of Housing, Local Government and Heritage 1 Annual real growth 2 Q4 rate for both Ireland and UK; Ireland unemployment is the COVID-adjusted rate as calculated by the CSO 3 GNI*, or Modified Gross National Income, is an indicator designed to exclude globalisation effects that are disproportionally impacting the measurement of the size of the Irish economy Bank of Ireland 6
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