Market Leader with Potential for Further Penetration
Asset Quality-Conservative Assumptions on Cost of Risk and Asset Quality
Outlook
Maintaining high asset quality and prudent cost of risk
•
2023 NPE ratio expected to remain <4.0% and to drop
to <3.0% by 2025
Cost of risk bps
118
•
Prudent Cost of Risk assumptions; maintaining wide
range of 50-80 bps due to continued macroeconomic
uncertainty
•
Cost of risk to normalise towards 40-50 bps over the
medium-term
NPE ratio
Cost of risk to
normalise
towards 40-50
bps over the
medium-term
25.2%
50-80
57
12.4%
44
44
4.0%
3.8%
<4.0%
<3.0%
Drivers
•
•
Maintain limited NPE inflows via:
•
High quality loan origination; 99% of new lending
since 2016 are performing
•
Prudent underwriting standards
•
•
Meticulous assessment of customers' repayment
capabilities
Proactive solutions to quickly support customers
in financial distress
No current signs of asset quality deterioration
Coverage
Dec 20
Dec 21
Dec 22
Mar 23
Dec 23
Dec 25
62%
59%
69%
73%
NPE inflows remain under control
(Єmn)
16
17
14
11
7
19
20
13
10
1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023
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