REG - Bank of Ireland Grp - EU-Wide Stress Test Results

Bank of IrelandAnnouncement

28/07/2023 18:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230728:nRSb6321Ha&default-theme=true

RNS Number : 6321H  Bank of Ireland Group PLC  28 July 2023

Bank of Ireland Group plc (the "Group")

EU-Wide Stress Test Results

 

28 July 2023

 

The Group was subject to the 2023 EU-wide stress test conducted by the
European Banking Authority (EBA), in cooperation with the Central Bank of
Ireland (CBI), the European Central Bank (ECB), and the European Systemic Risk
Board (ESRB).

 

The 2023 EU-wide stress test does not contain a pass fail threshold and
instead is designed to be used as an important source of information for the
purposes of the SREP. The results will assist competent authorities in
assessing the Group's ability to meet applicable prudential requirements under
stressed scenarios.

 

The stress test scenario was set by the EBA/ESRB and covers a three-year time
horizon (2023-2025). The stress test has been carried out by applying a static
balance sheet assumption as of December 2022, and therefore does not take into
account future business strategies and management actions. It is not a
forecast of the Group's profits.

 

In the stress test two scenarios were run; a baseline scenario and an adverse
scenario which assumes a severe economic downturn:

•             In the baseline scenario the Group maintains a
CET1 ratio of 21.4% (regulatory & fully loaded) in 2025.

•             In the adverse scenario this ratio decreases to
11.7% (regulatory & fully loaded) in 2025.

 

The Group's peak fully loaded CET1 depletion under the 2023 stress scenario is
c.420 basis points vs c.530 basis points in the 2021 exercise, an improvement
of c.110 basis points. The c.420 basis point depletion in 2023 is c.50 basis
points better than the EU average compared to c.50 basis points worse than the
EU average in 2021. This improved performance reflects actions the Group has
taken to enhance its business model and the improved resilience of the Group's
capital to stress scenarios.

 

The Group's capital position is strong and the Group continues to organically
generate capital. At the end of March 2023, the Group's regulatory CET1 ratio
was 14.6%, c.365 basis points over end-2023 regulatory requirements of 10.95%
(excluding P2G), and the Group's fully loaded CET1 ratio was 14.4%. The
Group's 2023 Interim Results are being released on Monday 31 July.

 

Detailed results of the stress test are published on the EBA's website. The
relevant disclosure templates in relation to Bank of Ireland are also
available on the Group's website at

https://investorrelations.bankofireland.com/results-centre/other/
(https://investorrelations.bankofireland.com/results-centre/other/)

 

Ends

 

For further information please contact:

 

Bank of Ireland

 

Mark Spain, Group Chief Financial Officer
                                     +353 1 2508900 ext
43291

Eamonn Hughes, Chief Sustainability & Investor Relations Officer
                      +353 (0)87 2026325

Darach O'Leary, Head of Group Investor Relations
    +353 (0)87 9480650

Damien Garvey, Head of Group External Communications and Public
Affairs     +353 (0)86 8314435

 

 

 

Forward Looking Statement

 

This document contains forward-looking statements with respect to certain of
the Bank of Ireland Group plc (the 'Company' or 'BOIG plc') and its
subsidiaries' (collectively the 'Group' or 'BOIG plc Group') plans and its
current goals and expectations relating to its future financial condition and
performance, the markets in which it operates and its future capital
requirements. These forward-looking statements often can be identified by the
fact that they do not relate only to historical or current facts. Generally,
but not always, words such as 'may,' 'could,' 'should,' 'will,' 'expect,'
'intend,' 'estimate,' 'anticipate,' 'assume,' 'believe,' 'plan,' 'seek,'
'continue,' 'target,' 'goal,' 'would,' or their negative variations or similar
expressions identify forward-looking statements, but their absence does not
mean that a statement is not forward-looking.

 

Examples of forward-looking statements include, among others: statements
regarding the Group's near term and longer term future capital requirements
and ratios, loan to deposit ratios, expected impairment charges, the level of
the Group's assets, the Group's financial position, future income, business
strategy, projected costs, margins, future payment of dividends, future share
buybacks, the implementation of changes in respect of certain of the Group's
pension schemes, estimates of capital expenditures, discussions with Irish,
United Kingdom, European and other regulators, plans and objectives for future
operations, and the impact of Russia's invasion of Ukraine particularly on
certain of the above issues and generally on the global and domestic
economies. Such forward-looking statements are inherently subject to risks and
uncertainties, and hence actual results may differ materially from those
expressed or implied by such forward-looking statements.

 

Such risks and uncertainties include, but are not limited to, those as set out
in the Risk Management Report in the Group's Annual Report for the year ended
31 December 2022. Investors should also read 'Principal Risks and
Uncertainties' in the Group's Annual Report for the year ended 31 December
2022 beginning on page 133.

 

Nothing in this document should be considered to be a forecast of future
profitability, dividend forecast or financial position of the Group and none
of the information in this document is or is intended to be a profit forecast,
dividend forecast, or profit estimate. Any forward-looking statement speaks
only as at the date it is made. The Group does not undertake to release
publicly any revision to these forward-looking statements to reflect events,
circumstances or unanticipated events occurring after the date hereof.

 

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCBRGDRBBDDGXI