Investor Presentaiton
E. Strategy and Outlook
The strategic objectives for the Group are to become a stronger, safer and a more efficient institution with a sustainable
and well-diversified business model committed to deliver sustainable shareholder returns.
The key pillars of the Group's strategy are to:
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Grow revenues in a more capital efficient way; by enhancing revenue generation via growth in performing book
and less capital-intensive banking and financial services operations (Insurance and Digital Economy)
Improve operating efficiency; by achieving leaner operations through digitisation and automation
Strengthen asset quality; maintaining high quality new lending, completing legacy de-risking, normalising cost
of risk and reducing (other) impairments
Enhance organisational resilience and ESG (Environmental, Social and Governance) agenda; by continuing
to work towards building a forward-looking organisation with a clear strategy supported by effective corporate
governance aligned with ESG agenda priorities
KEY STRATEGIC PILLARS
Growing revenues in a more capital
efficient way; by enhancing revenue
generation via growth in performing
book, and less capital-intensive banking
and financial services operations
(Insurance and Digital Economy)
Improving operating efficiency; by
achieving leaner operations through
digitisation and automation
•
•
ACTION TAKEN IN FY2022 and to
date
A revised price list for charges and
fees was implemented in February
2022
Liquidity fees were extended to a
wider customer group in March 2022
and abolished in December 2022
following interest rate rises
Net performing loan book grew to
€9.6 bn, an increase of 3% in
FY2022, despite macroeconomic
uncertainty
Fixed income portfolio grew to €2.5
bn, an increase of 30% in FY2022
For further information, please refer
to Section B.2.5 'Loan portfolio
quality' and Section D 'Business
Overview'
Completion of a VEP in July 2022,
which led to the reduction of full time
employees by 16% in FY2022;
estimated gross annual saving of
c.€37 mn (19%) of staff costs
Rationalisation of branch footprint as
20 branches closed down in 2022
Completion of a small-scale targeted
VEP in 1Q2022, by one of the
Bank's subsidiaries, through which a
small number of the Group's
employees were approved to leave
Further developments in the
Transformation Plan and the
digitisation of the Bank
•
•
PLAN OF ACTION
The structure of the Group's balance
sheet is geared towards higher
interest rates facilitating immediate
growth in net interest income
Grow performing book and
increase in high quality new lending
over the medium term
Expand fixed income portfolio in
2023, subject to market conditions, to
take advantage of the rising yields
Enhance fee and commission
income, e.g. on-going review of
price list for charges and fees,
increase average product holding
through cross selling, new sources of
revenue through introduction of
Digital Economy Platform
Profitable insurance business with
further opportunities to grow, e.g.
focus on high margin products,
leverage on Bank's strong franchise
and customer base for more targeted
cross selling enabled by digital
transformation
Committed to maintain cost discipline
in an inflationary environment
Effectively eliminate restructuring
costs as de-risking is largely
complete
Enhance procurement control
Committing to maintain total
operating expenses for 2023 to a
range of €350-360 mn
The cost to income ratio excluding
special levy on deposits and other
levies/contributions for 2023 is
expected to decrease to mid-40s
and to remain around similar
levels in 2024
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