Financial and ESG Performance Review slide image

Financial and ESG Performance Review

Business plan agreed with DG Comp delivered and restructuring period concluded • • • • Restructure 2017-2020 Sale of Novo Banco to Lone Star Deep operational and balance sheet restructuring Exit from all international operations, with refocusing on financing Portuguese corporates and households Completion of balance sheet clean-up as at Dec-20 - subsequent disposals of non-core assets being capital accretive . Renovation & Transformation 2021-2022 Return to profitability (8 consecutive quarters of profits) Returning to normalised cost of risk <50 bps Strengthening capital position. Fully loaded CET1 up to 13.1% from 10.1% in 2021 Net Interest Income (Єmn) • Relaunch 4Q22 and beyond Significant top-line growth in 4Q22 (increasing NII by 59% QoQ) with further expansion of NIM to above 2.2% for 2023E Delivering attractive levels of profitability: > €600mn recurrent PBT in 2023E Net Interest Income and Margin (Єmn, %) • • 143 220 134 135 138 +59% QoQ 1.5% >2.2% 2017 2022 %A NPL ratio 30.5% 4.3% -26p.p 2021 average 2022 1Q 2022 2Q 2022 3Q 2022 4Q 2022 2023E REOs €2.5bn €0.6bn -75% Profit Before Tax (post Special Tax on Banks; €mn) Reported Underlying profitability(1) Branches 473 292 -38% Profit Before Tax (post Special Tax on Banks; €mn) >600 561 107 139 75 85 44 FTE 5,488 4,090 -25% +30% QoQ1 407 2021 average 2022 1Q 2022 2Q 2022 3Q 2022 4Q 2022 2023E novobanco (1) Underlying profitability is adjusted for one-off opex (including intangibles write-down), real estate tax provision, real estate gains, non-recurrent market results, and pro-rata allocation of special tax on banks and contributions to the Resolution Funds 5
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