ESG Strategy and Digital Transformation
Building blocks towards a strong ROTE of >10% by 2025
Gradual recovery of NII
⚫ NII impacted by de-risking and end of
TLTRO favourable terms in the near term
Expected to recover from 2023 as loan
expansion and margin stabilisation more
than offsets foregone NII
• Well positioned for rising rates given high
levels of liquidity
c.1%
ROTE1
Non-NII: growth in a more
capital efficient way
Grow Net fees and commissions via
multiple initiatives (CAGR c.4%²)
Expand insurance income leveraging on
Bank's strong market share
Digital economy platform introduced to
exploit opportunities beyond banking
c.1.5-2.0%
1.8%
ROTE
2021
Lean operating model
Cost containment in the near term driven by
transformation plan and digital focus
• Committing to total operating expenses <€350
mn by 2025, despite inflationary pressures,
whilst funding digitisation and investment in
business
Effectively eliminating restructuring costs as
de-risking largely complete
c.2.5-3.0%
De-risking
ROTE1
Normalisation of COR and reduction in
other impairments as balance sheet de-
risking largely complete
Benefit expected to kick-in in the near
term
c.2.5-3.0%
ROTE 1
>10%
ROTE
by 2025
1)
2)
72
Contribution to ROTE for 2025
Fees from banking activities (i.e. do not include any fees from Digital Economy Platform)
ROTE1
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