TIDMBIRG

RNS Number : 2550U

Bank of Ireland Group PLC

01 December 2021

Bank of Ireland Group plc (together with its subsidiaries the "Group" or "BOI")

Credit Risk Transfer Transaction

1 December 2021

The Governor and Company of the Bank of Ireland has executed a Credit Risk Transfer (CRT) transaction which will improve the Group's pro-forma June 2021 CET1 capital ratios by c.40bps.

The transaction will reduce the Group's credit risk exposure on a reference portfolio of US$2.85 billion (c.EUR2.5bn(1) ) of European and US Acquisition Finance (AF) loans, whereby the investors assume the credit risk for US$456 million (c.EUR400m(1) ) of potential credit losses via a risk sharing structure. The transaction supports the refinancing of the Group's existing AF CRT transaction and improves the CET1 ratio by a net c.40bps, for a net additional annual coupon of c.EUR7m.

The Group can add new loans to replenish repayments / redemptions in the reference portfolio for the first eighteen months and thereafter the coupon is scheduled to reduce over the life of the transaction, pro-rata with the amortisation of the reference portfolio. This transaction forms part of the range of balance sheet optimisation initiatives that the Group previously indicated were being progressed during H2 2021.

There is no customer impact from the transaction. No assets will be derecognised from the Group's balance sheet and the reference portfolio of loan assets and related customer relationships will continue to be managed by the Group.

(1) converted at EUR1/US$1.13

Ends

For further information please contact:

Bank of Ireland

Myles O'Grady, Group Chief Financial Officer +353 (0)1 2508900 ext. 43291

Darach O'Leary, Head of Group Investor Relations +353 (0)1 2508900 ext. 44711

Mark Leech, Head of Media Relations +353 (0)87 905 3679

Forward Looking Statement

This announcement contains forward-looking statements with respect to certain of Bank of Ireland Group plc ('BOIG plc') and its subsidiaries' (collectively the '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, level of ownership by the Irish Government, loan to deposit ratios, expected impairment losses, the level of the Group's assets, the Group's financial position, future income, business strategy, projected costs, margins, future payment of dividends, 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 and plans and objectives for future operations. 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.

Nothing in this announcement should be considered to be a forecast of future profitability, dividends or financial position of the Group and none of the information in this announcement 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.

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END

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December 01, 2021 09:47 ET (14:47 GMT)

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