ESG Strategy and Digital Transformation slide image

ESG Strategy and Digital Transformation

1) 2) 4) 37 3) ... leading to increased focus on value creation, with updated medium term targets 2021 2023 2025 Return on Tangible Equity (ROTE)1 1.8% Mid-single digit >10% Profitability On trajectory to consider dividend distribution4 Cost to Income ratio² 60% 50%-55% Asset Quality NPE Ratio 7.5% 3 <5% <3% Cost of risk 57 bps 40-50 bps Capital CET1 ratio 15.8% 3 (14.3%³ FL) Supported by CET1 ratio of 13.5%-14.5% Paving the way for dividend distribution from 2023 onwards4 ROTE is calculated as Profit after Tax divided by (Shareholders' equity minus Intangible assets) Calculated using total operating expenses which comprise staff costs and other operating expenses. Total operating expenses do not include the special levy on deposits or other levies/contributions and do not include any advisory or other restructuring costs. Pro forma for HFS Subject to performance and relevant approvals 33
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