Mobilizing Finance for ESG Initiatives and Economic Resilience slide image

Mobilizing Finance for ESG Initiatives and Economic Resilience

Non-GAAP Measures The Bank uses a number of financial measures to assess its performance. Some of these measures are not calculated in accordance with Generally Accepted Accounting Principles (GAAP), which are based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), are not defined by GAAP and do not have standardized meanings that would ensure consistency and comparability among companies using these measures. The Bank believes that certain non-GAAP measures are useful in assessing ongoing business performance and provide readers with a better understanding of how management assesses performance. These non-GAAP measures are used throughout this report and defined below. Adjusted results and diluted earnings per share The following table presents reconciliations of GAAP Reported financial results to non-GAAP Adjusted financial results. The adjustments summarized below are consistent with those described in the Bank's 2020 Annual Report. For a complete description of the adjustments, refer to the Non-GAAP Measures section in the Bank's 2020 Annual Report: Adjustments impacting current and prior periods: • Amortization of acquisition-related intangible assets, excluding software Adjustments impacting prior periods only: • Acquisition and divestiture-related costs - Include costs related to integrating acquired operations and net (gain)/loss on divestitures • Valuation-related adjustments, recorded in Q1 2020 - Relate to the inclusion of an additional scenario in the measurement of allowance for credit losses, fair value methodology change relating to uncollateralized OTC derivatives, and a software-related impairment loss 80
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