Financial Analysis and Currency Deposits
Tight cost management of workforce and branches more than offsets elevated
inflation pressures
Total operating expenses¹ up 2% qoq
Substantial streamlining of workforce and branches
(€ mn)
89
89
87
86
87
38
38
37
36
37
51
51
50
50
50
2Q2021 3Q2021 4Q2021
1Q2022
50
50
2Q2022
Other operating expenses Staff costs
C/l ratio¹ in 2022 revised to around current levels (vs mid-60s)
due to cost management initiatives and improved revenues
64%
⚫ Mid-60s
59%
58%
57%
57%
Previous
expectations
•
50-55%
66%
75%
79%
80%
96
84
80
80
-16%
75
60
4,155
3,573
3,438
3,422
2,872
Jun 19
Dec 20
Dec 21
Jun 22
Jun 22
post - VEP
3,661
2,986
2,453
# of branches
# of FTEs - Group
Digitally engaged customers
# FTEs of Bank
•
Successful completion of Voluntary Staff Exit Plan in July 2022
Reduction of 16% in full time employees (c.550 applicants
approved to leave)
•
Annual savings of c. €37 mn or 19% in staff costs
c.50%
•
c.50%
2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 FY2022 FY2023 FY2025
C/I ratio 1
C/I ratio' initial expectations
1) Excluding special levy on deposits and other levies/contributions
Estimated one-off cost of c. €99 mn to be recorded in the
3Q2022 income statement
Branch footprint rationalization facilitated by digital transformation
15 branches closed down on 1 Jul 2022
Reduction of 38% since Jun 2019
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