Investor Presentaiton slide image

Investor Presentaiton

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 13
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