Bank of Ireland Group plc (the "Group")

EU-Wide Stress Test Results

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/

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.