Investor Presentaiton
F. Definitions & Explanations (continued)
Project Sinope
Quarterly average
interest earning assets
Qoq
Return on Tangible
equity (ROTE) after
tax and before non-
recurring items
Return on Tangible
equity (ROTE)
Special levy on
deposits and other
levies/contributions
Total Capital ratio
Total expenses
Total income
Total loan credit
losses, impairments
and provisions
Underlying basis
Write offs
Yoy
Project Sinope refers to the agreement the Group reached in December 2021 for the sale of a
portfolio of NPEs with gross book value of €12 mn as at 31 December 2021, as well as
properties in Romania with carrying value €0.6 mn as at 31 December 2021. Project Sinope
was completed in August 2022.
This relates to the average of 'interest earning assets' as at the beginning and end of the
relevant quarter. Average interest earning assets exclude interest earning assets of any
discontinued operations at each quarter end, if applicable. Interest earning assets include:
cash and balances with central banks (including cash and balances with central banks
classified as non-current assets held for sale), plus loans and advances to banks, plus net
loans and advances to customers (including loans and advances to customers classified as
non-current assets held for sale), plus 'deferred consideration receivable' included within 'other
assets', plus investments (excluding equities and mutual funds).
Quarter on quarter change
Return on Tangible Equity (ROTE) after tax and before non-recurring items is calculated as
Profit/(loss) after tax and before non-recurring items (attributable to the owners of the
Company) (as defined) (annualised), - (based on year to date days)), divided by the quarterly
average of Shareholders' equity minus intangible assets at each quarter end.
Return on Tangible Equity (ROTE) is calculated as Profit/(loss) after tax (attributable to the
owners of the Company) (as defined) (annualised - (based on year to date days)), divided by
the quarterly average of Shareholders' equity minus intangible assets at each quarter end.
Relates to the special levy on deposits of credit institutions in Cyprus, contributions to the
Single Resolution Fund (SRF), contributions to the Deposit Guarantee Fund (DGF), as well as
the DTC levy, where applicable.
Total capital ratio is defined in accordance with the Capital Requirements Regulation (EU) No
575/2013, as amended by CRR II applicable as at the reporting date.
Total expenses comprise staff costs, other operating expenses and the special levy on
deposits and other levies/contributions. It does not include (i) 'advisory and other restructuring
costs-organic', (ii) restructuring and other costs relating to NPE sales, or (iii) restructuring costs
relating to the Voluntary Staff Exit Plan. (i) 'Advisory and other restructuring costs-organic'
amounted to €1 mn for 4Q2022 (compared to €5 mn for 3Q2022, €4 mn for 2Q2022 and €1
mn for 1Q2022) (ii) Restructuring costs relating to NPE sales for 4Q2022 amounted to €0.3
mn (compared to €1 mn for 3Q2022, €0.8 mn for 2Q2022 and €1 mn for 1Q2022 and €0.2 mn
for 4Q2021), and (iii) Restructuring costs relating to the Voluntary Staff Exit Plan (VEP) for
4Q2022 was nil (compared to 3Q2022 was €101 mn, nil for 2Q2022 and €3 mn for 1Q2022).
Total income comprises net interest income and non-interest income (as defined).
Total loan credit losses, impairments and provisions comprises loan credit losses (as defined),
plus impairments of other financial and non-financial assets, plus (provisions)/net reversals for
litigation, claims, regulatory and other matters.
This refers to the statutory basis after being adjusted for certain items as explained in the Basis
of Presentation.
Loans together with the associated loan credit losses are written off when there is no realistic
prospect of future recovery. Partial write-offs, including non-contractual write-offs, may occur
when it is considered that there is no realistic prospect for the recovery of the contractual cash
flows. In addition, write-offs may reflect restructuring activity with customers and are part of
the terms of the agreement and subject to satisfactory performance.
Year on year change
110
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