Retail Banking Financial Update
PROFITABILITY WITHIN THE TARGETED LEVEL
SOLID QUARTERLY AND FULL YEAR PERFORMANCE
Resilient performance notwithstanding the COVID-19 pandemic:
The balance sheet has remained strong with better than
expected levels of growth
Operating income performance has been robust. Net fee and
commission income increased by 3.1% q-o-q, despite the
second-round lockdown-related reduction in economic activity,
with net interest income remaining broadly flat
Net interest margin was down to 4.4% in 4Q20, largely
reflecting the decline in economic activity and high levels of
liquidity
Our lending portfolio asset quality has performed well. We
have performed individual in-depth review of all of our SME
and corporate borrowers, and remain adequately provided for
our overall expected credit losses relating to the COVID-19
pandemic
Costs remained well-managed with a 2.2% y-o-y reduction in
operating expenses in 4Q20
Capital ratios have remained robust and comfortably above
the minimum regulatory requirements
Delivering superior levels of profitability
TRACK RECORD OF STRONG PROFITABILITY
20%
29.9%
26.0%
26.1%
21.8%
21.3%
13.0%
4Q19
1Q20
2Q20 3Q20 4Q20
2019*
2020
-18.6%
* 2019 ROAE adjusted for terminations costs of former CEO and executive management
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