Investor Presentaiton
Wholesale funding and capital: uses of (excess) capital -
Organic capital generation supports business growth and capital return
•
Priorities for the use of (excess) capital
CET1 requirement (SREP)
1. Funding organic business growth
2. Rewarding shareholders with adequate regular
dividend targeting progressive dividend policy
within 40-50%* payout corridor
-
•
Payout ratio* for FY2021 (DPS = EUR 1.6): 38.7%
11.16%
Pillar 2 CET 1 guidance
Pillar 2 CET 1 requirement
1.00%
0.98%
Combined buffer requirement
4.68%
Pillar 1 CET requirement
4.50%
Dec 21
3. Investing in inorganic business growth by way of
bolt-on acquisitions in existing markets, such
as Commerzbank transaction in Hungary
4. Additional capital return by way of share
buybacks
Excess capital component in CET1 ratio
Excess capital
14.50%
1.00%
*) Payout ratio = (DPS * number of shares issued at the end of the period)/
(net result for the period attributable to owners of the parent after deduction
of AT1 capital dividend )
ERSTEŚ
Group
Mid-term capital target
13.50%
Dec 21
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