ESG Strategy and Digital Transformation
•
Pro forma for Held For Sale, CET1 at 15.8% ¹ and Total Capital ratio at 20.8%¹
min OCR (SREP) requirement for 2021³
20.8%
2.9%
14.8%
15.8%
15.1%
2.1%
14.7%
0.5%
(0.3%)
-0.3%-
(0.1%)
0.7%
9.7%
14.5%
Capital position
1 January 2022
15.1%
10.1%
CET1 31
Dec 2020
CET1
30 Sep
Operating Provisions and
profit impairments
RWAs
Other
2
2021 1
CET1
31 Dec
2021 1
Held for Sale
CET1 31
Dec 2021
AT1
T2
Total
Capital ratio
CET1 ratio
pro forma
31 Dec 2021
for HFS 1,4
pro forma
for HFS 1,4
pro forma
for HFS 1,4
CET1 ratio¹ positively impacted by:
•
c.50 bps organic capital generation from operating profitability
c.30 bps from release of RWAS
CET1 ratio¹ negatively impacted by:
•
c.30 bps from provisions and impairments²
HFS expected to add c.65 bps by completion
•
CET1 ratio fully loaded at 13.7% and 14.3% pro forma for HFS
•
•
CET1 and Total capital minimum capital requirements for 2022 at 10.1% and
15.0% respectively, following 26 bps increase in P2R mainly due to ECB's
prudential provisioning (effective from Mar 2022) and 25 bps phasing in of O-SII
buffer as of 1 Jan 2022 (refer to slide 73)
P2R add-on is dynamic and can be reduced during 2022 on the basis of in-
scope NPEs and level of provisioning
•
Decrease in P2G more than offsets P2R increase in CET1 ratio
•
The Group continues to monitor opportunities for the optimisation of its capital
position including Additional Tier1 capital
1)
Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements
2)
Loan credit losses and other impairments (include the net change of the prudential charges relating to specific credits and other items)
4)
37
3)
OCR (SREP) - Overall Capital Requirement (refer to slide 73)
Includes unaudited/unreviewed profits for the year ended 31 December 2021
21View entire presentation