TIDMBIRG
RNS Number : 3847R
Bank of Ireland Group PLC
26 October 2023
B ank of Ireland Gro up p lc (the "Gro u p")
Interim M a nagem e nt St a teme nt - Q3 20 23 up date
26 Oc t o ber 20 23
C o mment: My les O'Grad y, Bank of Ireland Gr o up CEO:
" We had a stro ng business and financial perfo r mance in the
peri od. This performance sup p o rts o ur purp ose to deli ver m o
re for o ur custo mers, c olleagu es, shareh olders and s ociet
y.
" We are pr o gressing well on o ur 2 0 23 - 2 0 25 strategic
pri orities. In Q3 2 0 23, we c o ntin ue to successfully deliver,
with further Irish lending growt h, particularly in mo rtgages, o
ng oing progress in develo ping o ur wealth franchise and with o ur
a m biti o us ESG agenda. While asset quality re mains ro bu st, we
are mindful of the challeng es facing o ur custo mers fr om the
higher interest rate en viro n ment a nd co ntinue to sup p o rt
them thro ugh a balanced approach to pricin g. Our co m mercial
actio ns and strate gic ex ecution are delivering c o ntinued stro
ng organic capital generation and give us c o nfidence in the o utl
o ok f or the Gr o up for the re mainder of 2 023 and beyo nd
."
Ke y hig h l i g hts
-- 2 0 2 3 n et interest in c o me g uidance increased (H2 2 0
23 n ow ex p ected to be c. 5% higher than H1
2 0 2 3 level), reflecting higher rates and o ng oing business m
omentum
-- Irish net lending (ex-acquisitio ns) up EUR 1.3 billio n; sup
p orted by stro ng perf o r mance in m ortgage lending; o verall l
oan b o ok growth of EUR8 .7 billi on since Dece m ber 2 0 22
-- 2 0 2 3 busin ess in c o me guidance unchanged, with perf
ormance in the 9 m o nths to end-Septe m b er in line with ex
pectati o ns
-- Operating expenses perfo r ming in-line with guidance; sup p
orted by c o ntinued c ost discipline
-- Stro ng capital p ositio n; n et organic capital generati on
of 2 70 basis p oin ts in t he 9 m o nths to
Septe m ber; fully l oaded CET1 ratio of 1 5 . 2%
-- Asset quali ty re mains r o b ust; n o n-perfo r ming ex p osures (NPE) ratio of 3 . 6%
-- Stro ng liquidity positi o n; deposit growth of EUR 1 .3
billi on in the 9 m o nths to Septe m ber 2 0 2 3; L oan to Dep
osit Ratio 8 0%
-- Sustainability-related finance at c.EUR 10 .5 billion end-Se
ptem ber; up c. 3 0% during 2 0 23, with g reen mo rtgages acc o
unting for 5 1% of n ew ROI mo rtgage le nding
I n c o me
N et interest in c o me guidance increased with H2 2 0 23 n ow
expected to be c. 5% h i gher than H1 2 0 23 le v el of EUR 1,8 02
milli o n. This stro nger o utlo ok pri marily reflects higher inte
rest rates and the Gr o up 's co m mercial acti o ns, with i
nterest rates in H2 2 0 23 now expected to be higher co m pared to
earlier in the year. Perf ormance in the 9 mo nths to end-Septe m
ber reflects the rate envir onm e n t, acquisiti o ns, lending
growth in Ireland, and busi ness m o mentu m, supp orted by o n g
oing str o ng c o mmercial pricing disciplin e.
Business in c o me (including share of associates and JVs)
guidance re mains u nchanged, with H2 2 0 23 ex pected to be
broadly in-line with H1 2 0 23 le vel of EUR 361 milli o n. Gr owth
in the 9 mo nths to end- Septe m ber c om pared to the same period
in 2 0 22 of 1 1% has primarily been sup p orted by increased fee
inco me as a result of high er customer activit y, and the benefit
from the acquisiti on of D a v y.
Other income/ex penses and valuation items at end-Se ptem ber 2
0 23 we re EUR 19 m illion (versus EUR 49 million at end-June 2 0 2
3), reflecti ng market mo vements in Q 3.
C o st and l e vi es
Cost guidance re mains un c hanged with o perating expenses
expected to be c. EUR1 . 85 billi on in 2 0 2 3, as the
Gro up c o ntinues to maintain tight c o ntrol o ver its cost
base n otw ithstand i ng o ng oing inflatio nary p ressures. Rep
orted c osts were 1 0% higher in the 9 mo n t hs to end-Sep tem ber
2 0 23 co m pared to the same peri od in 2 0 22, pri marily
reflecting acquisiti on im pacts, an all owance f or t he lifting
of variable p ay restricti o ns and additi o nal i n vest ment to
drive future efficiencies.
Following rece nt publication of the Irish G o vern ment Finance
Bill 2 0 2 3, the Gro up provisi o nally est i mates that its 2 0
24 Irish bank levy will be c. EUR 90 milli on, c o m pared to EUR
25 milli on in 2 0 23.
B a l an c e S heet
The Gr o up's l oan bo ok increased by EUR 8 .7 billion since
Dece m ber 2 022 to EUR 8 0.7 billio n. This increase includes the
EUR8 billi on of loans acquired fr om KBC in February, EUR0 .6
billi on net i m pact fr om FX/ i m pairment/ other and net organic
growth of EUR0 .1 b illio n. The net organic g r owth co m prises
EUR 1 .3 billi on increase in net lending in Ireland and a redu
ction in Retail UK of EUR0 .5 billio n, in line with strategy, and
reduced intern atio nal co r p orate and pro perty lending of EUR
0.7 billion reflecting a co ntinued cauti o us approach.
The Gro up's liquid assets were EUR 4 2 .2 billi on and
wholesale funding was EUR 11 billi on at end-Septe m ber
2 0 23 .
Custo mer dep osits were EUR 1 00.5 billi on at end-Septe m ber
2 0 23, EUR1 .3 billi on higher co m pared to Dece m ber
2 0 22 , reflecting the KBC deposit p ortf olio acquisiti on of
EUR1 .8 billion and growth in Retail Ireland of EUR0 .4
b illio n, partly offset by a re duction in Retail UK and C orp
orate & C om mercial v olu mes.
The Gr o up's Loan to Dep osit Ratio was 8 0% at end-Septem ber
2 0 23 ( Decem ber 2 0 2 2: 7 3%). The Liquidity Co verage Ratio
was 1 8 6% at end-Sep tem ber 2 0 23 ( D ecem ber 2 0 2 2: 2 2 1
%), whil st the N et Stab le Fu nding Ratio was 15 3% at end-Septem
ber ( D ece m ber 2 0 2 2: 1 6 3 %). As ex pected, the cha nges in
all three rati os in 2 0 23 pri mari ly reflect t he im p act of t
he KBC p o rtfo lios' acquisitio n.
Asset Qua li ty
Impairment guidance r e m ains unchanged, with the Gro up's
asset quali ty in Q3 2 0 23 perf o r ming in-line with ex pect atio
ns. Macr o eco no mic sce nari os i m pacting credit i m pairment
will, as usual, be refreshed to reflect updated market f o recasts
and captured as part of the Gr o up's full-year cre dit im pair
ment pro cess. The Gr o up's NPE ratio is u nchanged from Dece m
ber 2 0 22 at 3.6%. The Gro up re m ains focused on reducing the le
vel of N PEs.
C ap i tal Posi t i on
The Gr o up's fully l oaded CET1 ratio at end-Sep tem b er 2 0
23 was 15 . 2% (1 4 . 8% at end-June 2 0 23). The m o v e ment in
the quarter reflects net organic capital generation of 90 basis p o
i nts, partial ly offset by a
3 3 % dividend accrual and t he mix of in vestment in custo mer
lending. The Gr o up's regulato ry CET1 and
total capital ratios were 1 5 . 4% and 20 . 1% respectively at
end-Septe m ber 2 0 2 3.
ESG
In addition to a c. 3 0% increase in sustainable lending in 2 0
23, as part of Financial Wellbeing, the Gr o up co ntinues to focus
on sup p orting cust o mers to i m p r o ve their financial
resilience. As a fo unding signat o ry of the UN PRB c om mit ment
to Financial Health and Inclusio n, in Q3 2 0 23, the Gro up has c
o mm itted to increase the nu m ber of c usto mers who have the
resilience to withstand the financial im pact of an unex pected day
-to-d ay ex pense or a maj or life e vent. Bank of Ireland is o ne
of only 20 banks glo bally to have set targets in relati on to this
c o mm itment and is a co-lead of the UN PRB w orking gro up on
Financial Health and Inclusio n.
Ends
For further inf o r mati on please c o ntact: Bank of
Ireland
M ark S p ai n, Gr o u p Ch i ef F i n a n cial Off i cer +3 5 3
1 2 5 0 8 9 0 0 e x t 4 3 2 9 1
Eam o nn Hughes, Chief Sustainability & In vestor Relati o
ns Offi cer + 3 53 ( 0)87 2 0 2 6 3 25
D arach O'L eary, Head of Gr oup In vestor Relatio ns + 3 53 (
0)87 9 4 8 0 6 50
D am ien Gar v e y, Head of Gr o up External C o mm unicati o ns
and P ublic Affairs +3 53 (0 ) 86 8 3 1 4 4 35
Forward L o oking State ment
T his document co n tains forwar d- lo ok ing state m ents wi th
respect to c e rtain of the Bank of Ireland Group plc ( the 'Co
mpany' or 'BOIG plc') and its subs idiar i es' (c o lle c tive ly t
he 'Gro up' or 'BOIG p lc G r oup') plans and i ts current g oals
and expe ctat i ons r elat i ng to its f u ture financ ial c ondi t
ion and per f or mance, the markets in whi ch it ope rates and its
future cap ital r equire m ents. These forwar d - lo o king state m
ents o f ten can be ide n ti f ied by the fact that they do not rel
a te only to hist o rical or curre nt fac ts. G enerally, but not
always, words such as 'may,' 'could,' 'should,' 'will ,'
'expect,' 'intend,' 'est i mate,' 'anticipate,' 'assu m e,'
'believe,' 'plan,' 'seek,' 'continue,' 'tar g et,' 'g oal ,'
'would,' or their ne gative vari a tions or si m ilar express i ons
ide n tify forward-l ooking state m ents, but their abs ence does
not m ean that a s tate m ent is n ot forwar d - lo o king.
E xamples of forward- looking state m ents includ e, am ong
others: state m ents re garding the Group's near term and longer
term future capit al require m ents and r a tios, loan to de p osit
ratios, expec t ed i mpair m ent cha r g es, the l evel of the
Group's as s ets, the Group's financi al po s iti on, future inco m
e, busine ss st rate g y, pr ojected c osts, mar g ins, future pay
m e nt of divi d ends, f u ture share b u ybacks, the i mple m
entation of changes in respe ct of cert a in of the G r oup's p
ension sche m es, est i mates of cap ital expenditures, d iscussi
ons with Ir ish, United Kingd o m, European and other r e gulators,
plans and obje c tiv es for future oper a tions, and the i mpa ct
of Russia's i n vasion of Ukr a ine pa r ticular ly on cert a in of
the ab ove issues and g enerally on the g lobal and do m est ic
econo m ies. Such forwar d - looking state m ents are inhere n tly
subject to r isks and unc e rtai n ties, and hence actual resu l ts
may diff er material ly f r om those
express ed or i m p lied by such forward- lo o king state
ments.
Such risks and unce r taint ies include, but are n ot l i m ited
to, those as set o ut in the R isk Manag e m ent Repo rt in the
Group's Annual R eport for the year ended 31 Dece mber 2022. Inv
est ors should al so read 'P ri n cipal Ri s ks and Uncertainti es'
in the Group's Interim Report f or the six m onths ended 30 June
2023 be g inning on pa ge 25.
Not hing in this document should be considered to be a forecast
of future profitab i li t y, dividend for e cast or f i nancial
posi t ion of the Group and none of the i n for mation in this doc
u m ent is or is int end ed to be a pr o fit forecast, di v idend f
o recast, or pr of it est i mate. Any forward- looking state m ent
spe a ks only as at the da te it is made. The Group does n ot
undertake to release publ icly any r e v ision to t h ese forwar d
- looking state m ents to ref l ect e v ents, c i rcumstances or
una n ticipa ted eve n ts o c cur ring after t he date h e
reof.
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END
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October 26, 2023 02:00 ET (06:00 GMT)
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