ESG Strategy and Digital Transformation slide image

ESG Strategy and Digital Transformation

Glossary & Definitions Risk adjusted yield RRD RW As Interest Income on Loans net of allowance for expected loan credit losses/Net Loans. Restructuring and Recoveries Division. Risk Weighted Assets. RWA Intensity Special levy on deposits and other levies/contributions Stage 2 & Stage 3 Loans Risk Weighted Assets over Total Assets. 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. Include purchased or originated credit-impaired. Tangible Collateral Restricted to Gross IFRS balance. Total Capital ratio Total expenses Total income Total loan credit losses, impairments and provisions 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', or (ii) restructuring costs relating to NPE sales. (i) 'Advisory and other restructuring costs-organic' amounted to €3 mn for 4Q2021 (compared to €1 mn for 3Q2021, €15 mn for 2Q2021, €3 mn for 1Q2021 and €1 mn for 4Q2020), (ii) Restructuring costs relating to NPE sales for 4Q2021 amounted to €0.2 mn (compared to €3 mn for 3Q2021, €6 mn for 2Q2021, €4 mn for 1Q2021 and c. €1.5 mn for 4Q2020). 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 net reversals/(provisions) for litigation, claims, regulatory and other matters. T2 Underlying basis Write offs Yoy Tier 2 Capital 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 87
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