BANK OF IRELAND GROUP PLC 20
23
FY 2023
Debt Investor Presentation
31 December 2023
1
Bank of Ireland
Overview
2
Step change in business performance
Strategic | +23% | +8% | +18% |
delivery | Irish loans | New customers1 | AUM |
Strong financial | €1.9bn | 42% | 17.3% |
performance | PBT | CIR2 | ROTE3 |
Step change in | 340bps | 14.3% | €1.15bn |
distributions | Capital generation4 | CET1 | 72% total distribution |
(2018-22 avg 100bps) | 13% of market capitalisation5 |
For footnotes please refer to slide 38
3
Highly attractive Irish market
Millions
Irish franchises driving profit growth | Strong household finances1 | |||
€160 | 115% | |||
5% | €150 | 110% | ||
€140 | 105% | |||
19% | ||||
Billions | 100% | |||
n Ireland | €130 | |||
95% | ||||
n UK | % of Group | €120 | ||
profits | 90% | |||
n Other | ||||
€110 | 85% | |||
76% | €100 | 80% | ||
Q120 | Q420 | Q321 | Q222 | Q123 | Q423 | |
Deposits (LHS) | Debt / Disposable Income (RHS) | |||||
Strong labour market1 | Growing Irish housing and mortgage market1 | ||||||||||||||
2.8 | 9.0% | 16 | 40,000 | ||||||||||||
2.7 | 8.0% | ||||||||||||||
2.6 | 12 | 30,000 | |||||||||||||
Billions | |||||||||||||||
2.5 | 7.0% | ||||||||||||||
8 | 20,000 | ||||||||||||||
2.4 | |||||||||||||||
6.0% | € | ||||||||||||||
2.3 | 5.0% | 4 | 10,000 | ||||||||||||
2.2 | |||||||||||||||
2.1 | 4.0% | 0 | 0 | ||||||||||||
Q419 | Q220 | Q420 | Q221 | Q421 | Q222 | Q422 | Q223 | Q423 | 2021 | 2022 | 2023 | 2024F | 2025F |
Total Ireland employment (LHS) | Ireland unemployment (RHS) | n Home buyer mortgage (LHS) n Refi / Top-Up mortgage (LHS) | |||
Euro-area unemployment (RHS) | Housing completions (RHS) | ||||
For footnotes please refer to slide 38
4
Strong Irish retail performance
Irish residential mortgages | Everyday Banking |
Wealth and Insurance
+8%
Net Irish mortgage book growth y/y
(excluding KBCI portfolio)1
41%
Irish mortgage market share
(+13pts y/y)
Capturing value in a
growing market
€80.1bn
Irish customer balances
(+€2.5bn in 2023)
+11%
Customer fee income y/y
Protecting and growing
relationship value
€46bn
AUM (+18% y/y)
€3.3bn
Net inflows (+275% y/y)
Leading the market via clear brand propositions
For footnotes please refer to slide 38
5
Supporting Irish businesses and a complementary international footprint
Corporate and Commercial
Retail UK
Ireland
€3.4bn
Irish SME new lending
(+6% y/y)
€0.9bn
Irish corporate new lending
(+1% y/y)
Property and international corporate
-10%
Net reduction in property and international
corporate book y/y
3.4%
Coverage ratio on CRE portfolio
(+100bps y/y)
+22%
Growth in new lending y/y
+57%
Increase in underlying PBT since 2019
Serving simple and complex customer needs
Delivering strong returns through niche strategy
6
Strategic pillars supporting growth and improved Customer experience…
1 Stronger relationships
+75k | +8% |
Increased product | New-to-bank customer |
holdings1 y/y | growth2 in 2023 |
2 Simpler business
-5% | +18% |
Customer complaints3 y/y | Active digital users4 y/y |
Growing Customer numbers
Better Customer outcomes
Q219 | Q419 | Q220 | Q420 | Q221 | Q421 | Q222 | Q422 | Q223 | Q423 |
Total customers | Relationship NPS | ||||||||
H119 | H219 | H120 | H220 | H121 | H221 | H122 | H222 | H123 | H223 |
Customer Effort Score (CES) | Total complaints | ||||||||
For footnotes please refer to slide 38
7
…delivering benefits to Society and Colleagues…
3 Sustainable company
Practical, meaningful ESG interventions
#1 | €11.1bn |
for Financial Wellbeing | Sustainable finance |
in Ireland | +35% y/y |
c.€30.0bn |
46% | 80% |
Female senior appointments in | Colleague Cultural Embedding Index1 |
2023 vs 50:50 target (40% 2022) | (+4ppts y/y) |
73
68
66
c.€15.0bn
€11.1bn
€8.2bn
61
53
62
2022 | 2023 | 2025 | 2030 |
2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
n Sustainable finance lending Targets
Colleague Engagement Index1
For footnotes please refer to slide 38
8
…and rewarding our Shareholders
Return on Tangible
Equity (ROTE)
Cost-to-Income Ratio
(CIR)
Ordinary dividend
Surplus capital
FY23-25 Financial Targets
(all targets apply to each year)
c.15%
< 50%
Building to c.40% payout
c.40-60% policy provides flexibility
Distribution considered
on an annual basis
FY23 performance
17.3%
42%
40% payout
(60c DPS)1
€520m
approved buyback
(72% total distribution)
For footnotes please refer to slide 38
9
Unique opportunity as The National Champion Bank
Strategic clarity
Differentiated
and focus
Strong capital
generation
business model
Interim distributions
to commence
Highly attractive
markets
in 2024
On track to
deliver 2023-2025 financial targets
10
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Disclaimer
Bank of Ireland Group plc published this content on 04 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 11:57:02 UTC.
