Key Financial Indicators and Balance Sheet Analysis Q1 2023 slide image

Key Financial Indicators and Balance Sheet Analysis Q1 2023

Risk profile Strong credit quality indicators while a slight trend towards higher rate of payments past due observed Despite increased provisioning through management's forward looking macro-economic assumptions, risk indicators of credit quality remain at healthy levels. In Q1 2023, the problem loans ratio however increased for the first time since before Covid-19. The increase is primarily due to a single exposure which has been deemed unlikely to pay. In Q1, a slight increase to payments past due for consumer lending and SME loans is observed, indicating that the credit cycle is past an inflection point. Loans with moratoria and forbearance measures which are not in Stage 3 continue to decrease as the economy recovers from the effects of Covid-19. At the end of Q1 2023, they were 2.0% of total loans to customers. Total expected credit loss is expected to approach between 20-25bps in the long term based on current loan book composition. At the end of Q1 the expected 12 month credit loss ratio of 28bps reflects the current challenging conditions. Development of non-performing loans, moratoria and forbearance (% of total loan book) 1.8 2.7 4.1 3.2 4.3 3.2 2.9 2.3 2.0 0.03 2.6 2.8 1.9 1.4 1.4 1.2 1.4 31.12.20 30.06.21 31.12.21 30.06.22 30.09.22 31.12.22 31.03.2023 ■Stage 3 Non-performing Moratoria Forbearance 12-month expected credit loss for performing loans to customers (on balance sheet) (bps) 80 70 60 50 40 30 20 10 0 31.12.20 30.06.21 31.12.21 Corporates 46 bps 28 bps 5 bps 30.06.22 31.12.22 31.03.2023 • Total Individuals Mortgages - 22
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