ESG Strategy and Digital Transformation
Drivers of NIM
NII of €296 mn for FY2021
Effective yield on assets & cost of funding
NII (€ mn)
344
330
296
76
76
71
73
NIM (bps)
163
149
134
134
429
Liquids 21
381
57
-12
4
5
NPE trades
340
34
- Non-Legacy
-Legacy
Legacy
49
19
43
86
86
25
83
85
-Liquids
563
Cost of funding
497
28
4632
532
10
10
[7
8
301
287
287
295
Non-Legacy
302
292
268
1
5
13
12
67
65
67
69
-17
-16
-19
-18
1Q2021
2Q2021
3Q2021
4Q2021
Interest expense FY2019
FY2020
FY2021
1Q2021
2Q2021
3Q2021
4Q2021
•
Non-Legacy book yields increased to 295 bps, up 8 bps qoq
Net derivatives
-11
-10
-10
-2
-2
-3.
-3
-3
Other 1 -11
•
Effective yield of liquids at 12 bps broadly flat qoq
-24
-28
-6
-6
Tier 2 &
-24
-8
-8
Senior preferred
-14
-6
-2
-2
-44
Customer
-51
-10
-10
-1
-1
-39
deposits
-12
-12
•
-85
.
Cost of funding at 18 bps, broadly flat qoq following issuance of senior
preferred notes in June 2021 with coupon rate 2.5%; further MREL
issuances are expected in the coming years
TLTRO III borrowing at €3.0 bn; favourable terms not expected to be
extended post June 2022
1) Other includes funding from central banks and deposits by banks and repurchase agreements.
Adjusted for Helix 2
F23
2)
3)
4)
5)
Based on current ECB rates and provided the Bank meets the lending thresholds; the Bank exceeded the benchmark net lending threshold in the period 1
Mar 2020-31 Mar 2021
Effective yield of liquid assets: Interest income on liquids after hedging, over average liquids (Cash and balances with central banks, placements with
banks and bonds)
Effective yield of cost of funding: Interest expense of all interest bearing liabilities after hedging, over average interest bearing liabilities (customer
deposits, funding from the central bank, interbank funding and wholesale funding)
•
c.€7 mn NII benefit for the period Jun 2020-Jun 2021 was recognised
•
c.€15 mn³ potential NII benefit for the period Jun 2021-Jun 2022 is
recognised over the respective period in the income statement
13View entire presentation