2016 EU-wide Transparency Exercise Summary: Bank of Ireland
Core Content Overview
This document presents the results of the 2016 EU-wide Transparency Exercise for the Bank of Ireland, including key financial metrics such as own funds, capital ratios, risk exposure amounts, and P&L (Profit and Loss) data. It is structured according to the Capital Requirements Regulation (CRR) and provides data for both the transitional period and fully loaded capital calculations, as well as information on credit risk, market risk, and operational risk.
Key Financial Metrics
Own Funds (Transitional Period)
| Item |
As of 31/12/2015 (EUR) |
As of 30/06/2016 (EUR) |
| OWN FUNDS |
9,576 |
8,943 |
| COMMON EQUITY TIER 1 CAPITAL |
7,089 |
6,675 |
| Capital instruments eligible as CET1 |
3,615 |
3,054 |
| Retained earnings |
3,574 |
5,329 |
| Accumulated other comprehensive income |
418 |
23 |
| Other Reserves |
667 |
-507 |
| Funds for general banking risk |
0 |
0 |
| Minority interest in CET1 capital |
0 |
0 |
| Adjustments to CET1 due to prudential filters |
-146 |
-285 |
| Intangible assets (including Goodwill) |
-509 |
-527 |
| DTAs that rely on future profitability |
-1,345 |
-1,271 |
| IRB shortfall of credit risk adjustments |
-35 |
-64 |
| Defined benefit pension fund assets |
-16 |
-3 |
| Reciprocal cross holdings in CET1 |
0 |
0 |
| Excess deduction from ATI items over ATI Capital |
0 |
0 |
| Deductions related to assets with 1.250% risk weight |
-62 |
-40 |
| Holdings of CET1 capital instruments (significant investment) |
-45 |
-110 |
| Additional deductions of CET1 Capital |
-115 |
-80 |
| Transitional adjustments |
1,089 |
1,157 |
Capital Ratios (Transitional Period)
| Capital Ratio |
As of 31/12/2015 |
As of 30/06/2016 |
| COMMON EQUITY TIER 1 CAPITAL RATIO |
13.30% |
12.83% |
| TIER 1 CAPITAL RATIO |
14.81% |
14.35% |
| TOTAL CAPITAL RATIO |
17.96% |
17.19% |
CET1 Capital Fully Loaded
| Item |
As of 31/12/2015 (EUR) |
As of 30/06/2016 (EUR) |
| COMMON EQUITY TIER 1 CAPITAL |
6,001 |
5,518 |
| COMMON EQUITY TIER 1 CAPITAL RATIO |
11.28% |
10.66% |
Risk Exposure Amounts
| Risk Type |
As of 31/12/2015 (EUR) |
As of 30/06/2016 (EUR) |
| Credit Risk |
53,314 |
52,035 |
| Securitisation and re-securitisations (banking book) |
196 |
214 |
| Contributions to default fund of a CCP |
0 |
0 |
| Other credit risk |
47,663 |
46,334 |
| Market risk (position, FX, commodities) |
425 |
410 |
| Operational risk |
4,773 |
4,773 |
| Other risk exposure amounts |
1 |
7 |
| Total Risk Exposure Amount |
53,314 |
52,035 |
Profit and Loss (P&L) Data
| Item |
As of 31/12/2015 (EUR) |
As of 30/06/2016 (EUR) |
| Interest income |
3,508 |
1,600 |
| Of which debt securities income |
353 |
129 |
| Of which loans and advances income |
2,959 |
1,407 |
| Interest expenses |
1,085 |
486 |
| Of which deposits expenses |
508 |
236 |
| Of which debt securities issued expenses |
456 |
195 |
| Dividend income |
11 |
9 |
| Net Fee and commission income |
376 |
196 |
| Gains or (-) losses on derecognition of financial assets |
207 |
142 |
| Gains or (-) losses on financial assets held for trading |
91 |
22 |
| Gains or (-) losses on financial assets designated at fair value through profit or loss |
-75 |
3 |
| Gains or (-) losses from hedge accounting |
2 |
-1 |
| Exchange differences |
6 |
1 |
| Net other operating income/(expenses) |
52 |
17 |
| Total Operating Income, Net |
3,093 |
1,503 |
| Administrative expenses |
1,615 |
846 |
| Depreciation |
126 |
64 |
| Provisions or (-) reversal of provisions |
61 |
27 |
| Impairment or (-) reversal of impairment on financial assets |
296 |
94 |
| Profit or (-) Loss Before Tax from Continuing Operations |
1,208 |
545 |
| Profit or (-) Loss After Tax from Continuing Operations |
947 |
439 |
| Profit or (-) Loss for the Year |
947 |
439 |
Market Risk
| Risk Type |
As of 31/12/2015 (EUR) |
As of 30/06/2016 (EUR) |
| Traded Debt Instruments |
281 |
291 |
| Foreign exchange risk |
144 |
119 |
| Commodities risk |
0 |
0 |
| Total Market Risk Exposure |
425 |
410 |
Credit Risk - Standardised Approach
Summary of Risk Exposure Amounts (as of 31/12/2015 and 30/06/2016)
| Risk Exposure Type |
As of 31/12/2015 (EUR) |
As of 30/06/2016 (EUR) |
| Central governments or central banks |
41,444 |
38,050 |
| Regional governments or local authorities |
32,023 |
29,357 |
| Corporates |
11,776 |
11,495 |
| Other exposures |
1,494 |
1,257 |
| Standardised Total |
53,314 |
52,035 |
Detailed Breakdown
- Original Exposure and Exposure Value are reported before applying credit conversion factors or credit risk mitigation techniques.
- Risk exposure amount reflects the adjusted value based on risk assessment.
- Value adjustments and provisions are included in the calculation of risk exposure amounts.
Key Observations
- The Bank of Ireland's own funds decreased from 9,576 million EUR to 8,943 million EUR during the transitional period.
- The CET1 capital also declined from 7,089 million EUR to 6,675 million EUR, indicating a reduction in common equity capital.
- Capital ratios for CET1, Tier 1, and Total capital all declined during the period.
- The total risk exposure amount decreased from 53,314 million EUR to 52,035 million EUR, primarily due to a reduction in credit risk exposure.
- Market risk exposure was relatively low, with a decrease in foreign exchange risk.
- The P&L shows a significant drop in operating income, with interest income and expenses both declining.
- The Standardised Approach to credit risk is used, and the Bank of Ireland's exposure is categorized across different types of entities and risk categories.
Regulatory References
- CET1 Capital is defined and calculated according to Articles 26(1) points (a) and (b), 27 to 29, 36(1) point (f), and 42 of CRR.
- Tier 1 and Tier 2 Capital are governed by Article 25 and Article 71 of CRR, respectively.
- Risk exposure amounts are calculated in accordance with Articles 92(3), 95, 96, and 98 of CRR.
- Transitional adjustments are referenced in Articles 469 to 472, 478, and 481 of CRR.
