Bank Of Ireland Regulatory News (BIRG)

Bank of Ireland Group plc (together with its subsidiaries the ''Group'')

Sale of mortgage non-performing exposures ("NPE")

The Group has entered into the sale (via securitisation) of a portfolio of non-performing ROI mortgages predominantly secured on owner occupied and buy-to-let investment properties.

The portfolio has a gross carrying value of c.€344 million, and upon completion due 25 June 2021, the transaction is expected to result in a 31 March 2021 pro-forma reduction in the Group's NPE ratio from c.5.7% to c.5.3%. The transaction will increase the Group's regulatory CET1 ratio by c.15bps with net interest income reducing by c.€5 million on a full year basis.

The mortgages and related customer relationships will continue to be maintained by the Group, however the assets will be derecognised from the Group's balance sheet.

This transaction, in conjunction with ongoing forbearance support for our customers, has enabled the Group to continue to accelerate progress in reducing its NPE ratio. Our NPE reduction strategies continue to be kept under review in response to the associated and evolving regulatory framework.

Additional information for customers

Any restructuring arrangements agreed between Bank of Ireland and a customer including any alternative repayment arrangements, are unchanged by the transaction. There is no change to the protections currently afforded to customers under the relevant Central Bank of Ireland statutory codes of conduct, including the Code of Conduct on Mortgage Arrears and Consumer Protection Code. 

Customers do not need to take any action arising from this announcement. However, any customer seeking more information can contact our dedicated customer phone line on 01-6115307. This phone line is available 9:00am to 5:00pm, Monday to Friday, excluding Bank Holidays.

Ends

For further information please contact:

Bank of Ireland

Myles O'Grady, Group Chief Financial Officer +353 (1)250 8900 ext. 43291

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 announcement contains forward-looking statements with respect to certain of Bank of Ireland Group plc ('BOIG plc') and its subsidiaries' (collectively the 'Group's') 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 charges, the level of the Group's assets, the Group's financial position, future income, business strategy, business model, projected costs, margins, future payment of dividends, 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.