Financial and ESG Performance Review
Significant YoY improvement in profitability...
Income Statement (€mn)
ΔΥΟΥ
2021
2022
€mn
1
Net Interest Income
573.4
625.5
+52.1
+ Fees & Commissions
282.5
293.3
+10.8
2
.
= Commercial Banking Income
855.9
918.8
+62.9
+ Capital Markets Results
75.9
24.0
(51.9)
+ Other Operating Results
40.4
183.6
+143.2
= Banking Income
972.2
1 126.3
+154.2
3 Operating Costs
408.4
448.4
+40.0
= Net Operating Income
563.8
678.0
+114.2
4
-
Net Impairments & Provisions
352.7
111.2
(241.5)
= Profit Before Tax
211.1
566.8
+355.7
•
= Recurrent PBT
282.7
406.7
+124.0
- Corporate Income Tax
-15.2
- 53.3
(38.1)
Special Tax on Banks
34.1
34.1
0.0
= Profit after Taxes
192.2
585.9
+393.8
- Non-Controlling Interests
7.7
25.1
= Net Profit for the period
184.5
560.8
+17.4
+376.3
.
novobanco (1) Considering loans and corporate bonds
•
.
•
NII +9.1% with improvement of average assets yield, more than
offsetting the cost of new senior debt and TLTRO III phase-out. Annual
NIM of 1.47%, reaching 1.99% in the 4Q22;
Fee income +3.8% highlighting accounts and payments fees performance
backed by pick-up in business activity;
Capital Markets Results positive by €24.0mn mostly due to gains from the
hedging of interest rate risk. The fair value reserves decreased by €267mn;
Other operating results includes €77.1mn gain from the sale of logistics
assets in 2Q22 (€58.5mn net of non-controlling interests), €71.5mn gain of
on the sale of headquarters building in 3Q22 (€67.0mn net of
contingencies) and €40.4mn gain on overdue loans recovery. These
effects more than offset contributions to resolution funds (€40.9mn);
Operating costs totalled €448.4mn reflecting the continued investment in
digital transformation and streamlined operations, growing 2.4% YoY
on a recurring basis (to €405.6mn);
Lower provisions reflecting the quality of the portfolio after the execution
of the restructuring process (Cost of Risk at 0.45%¹);
Net Income of +€560.8mn (+204% YoY) reflecting a sustainable growth of
business, with the ability to grow revenue and generate capital.
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