Investor Presentaiton
B. Preliminary Group Financial Results - Underlying Basis (continued)
B.3. Income Statement Analysis (continued)
B.3.2 Total expenses (continued)
These shares will then normally vest in six tranches, with the first tranche vesting after the end of the performance period
and the last tranche vesting on the fifth anniversary of the first vesting date. For the year ended 31 December 2022, the
Group recognised in the Group's Income Statement an expense of less than €0.5 mn regarding the Plan. Based on the
market value of these awards on the grant date, the expense deferred to future periods is estimated to c.€1.1 mn. Actual
amounts to be expensed in future periods may vary, e.g., due to forfeiture of awards.
Other operating expenses for FY2022 were €153 mn, compared to €145 mn for FY2021, up 5% yoy, driven by inflationary
pressures. Other operating expenses for 4Q2022 amounted to €45 mn, compared to €35 mn for 3Q2022, up by 25% qoq
reflecting seasonally higher professional fees, marketing expenses and IT costs and inflationary pressures.
Special levy on deposits and other levies/contributions for FY2022 amounted to €38 mn (compared to €36 mn for
FY2021) up 6% yoy, driven by the increase in deposits of €1.5 bn yoy. Special levy on deposits and other
levies/contributions for 4Q2022 were €11 mn broadly flat qoq, reflecting mainly the net impact of a levy in the form of an
annual guarantee fee relating to the expected revised Income Tax legislation of €4.8 mn recorded in 4Q2022 (see Section
B.2.1 'Capital Base') and the contribution of the Bank to the Deposit Guarantee Fund (DGF) of €3 mn which relates to
2H2022 and was recorded in 3Q2022, in line with IFRSS.
The cost to income ratio excluding special levy on deposits and other levies/contributions for FY2022 was 49%,
compared to 60% for FY2021. The cost to income ratio excluding special levy on deposits and other levies/contributions for
4Q2022 was 38%, compared to 47% for 3Q2022. The qoq decrease of 9 p.p. is driven by the higher total income.
The cost to income ratio excluding special levy on deposits and other levies/contributions for 2023 is expected to
decrease to mid-40s, reflecting management's ongoing focus on efficiency and cost discipline in an inflationary
environment. This target includes a commitment of maintaining total operating expenses of a range between €350-
360 mn, reflecting some upward pressure on costs from investments in transformation and digitalisation and the renewal
of collective agreement in 2023. The cost to income ratio excluding special levy on deposits and other levies/contributions
for 2024 is expected to remain around similar levels to 2023.
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