Financial Analysis and Currency Deposits
Improved near-term guidance on faster rate rises: ROTE>10% in 2023
Net interest income now rising
Well positioned to benefit from further rate rises
Loans and liquids repricing faster than funding costs
Strong Net F&C in 1H2022 but near-term pressure
Phasing out of liquidity fees in 2023
Delivery on efficiency plans ahead of schedule
Reduction of number of staff and branches in July 2022 unlocks
meaningful savings from 2023
Elevated inflation will put pressure on total operating costs¹
Cost of risk remains under control
FY2022 Guidance
2022 NII at c.€320 mn, up 8%
yoy
C/I ratio at around current levels
vs initial expectations of mid-60s
FY2023 Guidance
2023 NII up c.€100-€120 mm, up
c.30% 35% yoy
C/I ratio¹ down to c.50%
Cost of risk at c.50 bps
Cost of risk at c.50-80 bps
•
Strong loan portfolio performance in 1H2022
•
Some upward pressure in near term due to macro uncertainty in 2023
Maintain healthy capital buffers
•
IFRS 17 Day 1 (January 2023) benefit on Group tangible equity
estimated at c.€50 mn, enhancing Group CET1 by c.50 bps³
Clear path to double digit ROTE; intention for meaningful dividend distributions
•
ROTE of over 10% from 2023 supporting ability to make meaningful dividend distributions²
from 2023 onwards
Excluding special levy on deposits and other levies/contributions
1)
2)
Subject to regulatory approvals and market conditions
3)
Upon the upstreaming of dividend by the subsidiary
ROTE of >10%
supporting ability to make
meaningful dividend
distributions² from 2023
onwards
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