Competing as a Strong and Independent Portuguese Bank slide image

Competing as a Strong and Independent Portuguese Bank

...being on track to deliver medium-term guidance with targets to be updated, by year end, to reflect current market environment 9M21 9M22 Medium-term targets Underlying Profitability (Єmn; pre-tax) Commercial Loan Book (performing) €22.8bn €24.2bn (+4.6% YTD) 2-3% per year Expanding loan book 12.4% 11.0% 10.2% Net Interest Margin 1.43% 1.32% (pro-forma) [1.30 1.50%] Set to benefit from Euribor repricing 8.7% 8.8% 8.2% 7.6% 107.1 Cost-to-income 48% 49% (recurrent basis) < 45% Efficient operations 85.1 77.9 76.5 75.1 68.6 59.7 COR 61bps 20bps < 50 bps Achieving moderate risk profile NPL ratio 7.3% 5.0% < 5% Converging towards EU average 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 ROTE (pre-tax)1 8.2% 12.4% ≥ 10% Delivering organic attractive returns CET 1 10.9% 12.7% > 12% Accelerating capital generation ROTE (cumulative annualised; 12% RWA) novobanco (1) Tangible Equity = average phased-in RWA x 12%; Annualized; Considers Underlying profitability pre-tax deducted by special tax on banks (€34mn on annual basis) and contributions to Resolution Funds (€40.9mn on annual basis) 12
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