Bank of Ireland Grp - Further update on UK Motor Finance

Bank of Ireland Group plc (the "Group")

Further update on UK Motor Finance

Following publication of the Financial Conduct Authority's ("FCA") consultation paper on 7 October, in respect of a proposed industry-wide redress scheme on UK motor finance commissions, the Group has undertaken an assessment of the potential financial impact of the proposed scheme.

The Group's existing provision of £143 million (€167 million) at 30 June 2025 was based on probability weighted scenarios and captured the then best estimate of the redress and compensation that may have been payable to impacted customers, along with associated costs that may have been incurred by the Group in connection with any FCA redress scheme and/or legal proceedings.

The FCA's proposals are subject to consultation and therefore may change. Based on the proposals in their current form, the Group now estimates that the provision could increase from £143 million to c.£350 million (c.€400 million). The estimated increase is due to the increased likelihood of a higher number of eligible cases, the construct of the proposed redress methodology and the customer engagement approach.  The provision will be updated as part of the Group's FY25 financial reporting process, reflecting the final form of the redress scheme and any further relevant information. The final cost to the Group could change depending on the outcome of the consultation, actual customer opt-in rates and any further legal, regulatory or industry developments.

If the provision was increased to £350 million, it would reduce the Group's 30 June 2025 CET1 ratio of 16.0% by c.35 basis points. The Group continues to be highly capital generative.

The Group is committed to achieving a fair outcome for customers and ensuring that appropriate redress is provided where loss has occurred. However, the Group does not believe that the FCA's proposed redress methodology reflects the actual loss to customers or achieves a proportionate outcome. In addition, the FCA's proposed approach for assessing unfairness does not align with the legal clarity provided by the recent UK Supreme Court judgement. The Group will engage with the FCA on this basis.

The Group will issue its Q3 interim management statement on 29 October.

Ends

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Bank of Ireland

Forward Looking Statement

This document contains forward-looking statements with respect to certain of 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  continued impact of regional conflicts on 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 'Principal Risks and Uncertainties' section on page 26 of the Group's 2025 Interim Report and in the Risk Management Report in the Group's Annual Report for the year ended 31 December 2024.

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.