1H22 Financial Performance slide image

1H22 Financial Performance

Capital increasing by 1.0pp in the 2Q22, driven by capital-accretive business model... Theme 2: Capital Evolution Total Capital: Ratio Evolution (phased-in¹; Preliminary; bps) ~40bps with completion of the transaction ~27bps Head-Office sale ~13bps RE assets sale ~25bps Restructuring funds ~14.5% 15.0% 13.1% +0.23% 12.9% +0.30% +0.28% 13.9% ~0.6% +0.4% +0.02% 1.5% P2G -0.34% -0.09% Total Capital Dec-21 Including lower RWA driven by improving PDs following exit of loans from moratoriums in 2021 13.5% OCR IFRS 9 Treasury 1Q Total results Results² Capital Mar-22 Treasury 2Q Sale Other Total results Results² of effects Capital logistics REO3 3Q22 Pro-forma Target YTD ■ Jun-22 Jun-22 novobanco > Measures to accelerate the sale of non-core and high-density assets, including: ■ [~27bps]: Sale of Head Office: SPA signed in Aug-22; moving to a refurbish building outside the city-center; [~35-45 bps]: Real Estate assets: planned for 2022 (sales processes in advanced stage), before possible anticipation of sales target for 2023/24, of which ~13bps signed 3Q22 to date. ■ [~25 bps]: Restructuring Funds: sale of ~40% of novobanco's NBV in Restructuring Funds (signed in 3Q22 to date; closing by YE); > Other possible positive events not considered (potential upside): ■ CCA Call: €209mn from 2021 CCA call; RE Tax: €116mn (~50bps) provision done in 2021 and pending clarification from tax authorities; ■ Arbitrations: €165mn from 2020 CCA call and IFRS 9 dynamic ...and execution of measures to continue to comply with capital requirements going forward. (1) Estimated; Phased-in ratios; The inclusion of positive results depends on an authorization from the ECB; (2) Excludes Markets Results, which is classified as Treasury results; (3) Closed in Jul- 22; -82% of assets transferred to the buyer; remaining to be transferred once necessary approvals obtained; 14
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