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Investor Presentaiton

2023 outlook 32 | Revenue Balance sheet Credit impairments Operating expenses Returns Capital Impact of 2022 base effects 2023 expectations High single digit revenue growth, driven by net interest income given balance sheet growth and higher policy rates. High single digit growth in customer loans and deposits. Credit loss ratio (CLR) likely to be at top end of our through-the-cycle target range of 75 to 100 basis points. Mid- to high single digit growth in operating expenses, resulting in a similar cost-to- income ratio to 2022. Mid- to high single digit pre-provision profit (PPP) growth. Return on equity around 17%. Group CET1 ratio at top end of board target range of 11.0% to 12.5%. Dividend payout ratio at least 52%. Given 2022 base effects, stronger revenue and PPP growth in first half, although CLR likely to exceed target range and dampen earnings growth off a relatively high base. Slower second half revenue growth off a high base, but impairments expected to decline substantially YoY and support stronger second half earnings growth.
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