ESG Strategy and Digital Transformation
Capital &
balance
Sheet
Profitability
Risk adjusted yield will rise as Legacy book reduces
Non-
Legacy
Legacy
Group
FY2021
FY2021
FY2021
Interest Income on loans
268
53
321
(€ mn) (pre FTP)
Loan credit losses (€ mn)
16
(82)
(66)
Interest Income net of loan
284
(29)
255
credit losses (€ mn)
•
Cost of Risk
(0.17%)
3.77%
0.57%
Effective Yield
2.92%
5.48%
3.17%
•
Risk adjusted Yield¹
3.10%
(3.05%)
2.51%
Average Net Loans (€ mn)
RWA Intensity
9,195
964
10,159
38%
99%
43%
1)
Interest Income on loans net of allowance for expected loan credit losses/Average Net Loans
Global corporate,
RRD
Corporate
IB, W&M
SME and
Retail Banking
Overseas non
REMU
core
Non-Legacy Book is expected to grow and to
increasingly drive Group results
Legacy book revenues predominantly driven by loan
credit losses unwinding (but offset via loan credit
losses)
Interest on Net NPEs not received in cash, fully
provided (€2 mn in 4Q2021 and €15 mn in FY2021)
As Legacy book reduces:
•
Group risk adjusted yield expected to rise
Group Risk intensity expected to fall
supporting CET1 ratio build
55
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