Financial Analysis and Currency Deposits slide image

Financial Analysis and Currency Deposits

Income Statement € mn 1H2022 1H2021 2Q2022 1Q2022 909% yoy% Net Interest Income 145 152 74 71 4% -4% Non interest income 154 136 79 75 6% 13% Total income 299 288 153 146 5% 4% Total operating expenses¹ (173) (171) (87) (86) 2% 2% • Operating profit 109 102 59 50 18% 7% Loan credit losses and (37) (50) (20) (17) 14% -27% impairments PAT before non-recurring items² 59 51 32 32 27 18% 20% QoQ Performance (2Q2022 vs 1Q2022) NII up 4% reflecting growth of net performing book 5 and loan yields improvement in line with rising interest rate environment Non interest income up 6% driven by higher net fee and commission income Total operating expenses¹ up 2% Loan credit losses and impairments up 14% qoq mainly due to higher impairments on net legacy overseas exposures PAT before non-recurring items² of €32 mn up 18% Advisory and organic restructuring (5) (18) (4) (1) 219% -70% • costs Underlying ROTE 4 at 7.8% PAT-organic² 54 33 28 26 8% 70% • Exceptionals³ (4) (32) 1 (5) -103% -85% Profit after tax² 50 1 29 21 35% Key Ratios Net Interest margin 1.32% 1.56% 1.33% 1.32% 1 bps -24 bps Cost to income ratio¹ 58% 59% 57% 59% -2p.p. -1p.p. • • Profit after tax² of €29 mn YoY Performance (1H2022 vs 1H2021) NII down 4%, impacted by foregone Helix 2 interest (c.€15 mn in 1H2022) Non interest income up 13% following the initiatives on price adjustments and extension of liquidity fees to a wider customer group in 1Q2022 Cost of Risk 0.43% 0.61% 0.41% 0.44% -3 bps -18 bps • Total operating expenses¹ up 2% EPS before non-recurring items 13.51 11.24 7.31 6.20 1.11 2.27 • (€ cent) ROTE before non-recurring items 7.3% 6.1% 7.8% 6.7% 1.1 p.p. 1.2 p.p. • Loan credit losses and impairments down 27% yoy due to higher COVID-19 related charges in 1H2021 PAT before non-recurring items² of €59 mn up 20% • 723 2) 1) Excluding special levy on deposits and other levies/contributions Attributable to the owners of the Company 4) 5) 3) Please refer to section B.3.4 "Profit after tax (attributable to the owners of the Company)" of the 1H2022 FR Press Release Calculated using Profit/(loss) after tax and before non-recurring items Non-legacy loan book which includes Corporate, Large and International corporate, International business unit, Wealth and Markets, SME and Retail Underlying ROTE 4 at 7.3% • Profit after tax² of €50 mn 13
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