Investor Presentaiton
Well on track towards our 2025 targets
Financial target
2Q2023
2025 target Drivers
Primary customer growth
5-10%
Fee income ¹)
2.7%
annual growth
Total income 1,2)
+19.2%
4-5% CAGR
Cost/income ratio³
3)
54.4%
50-52%
CET1 ratio
14.9%
~12.5%5)
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Increasing package and service fees in daily banking to better reflect cost of service
Growing base in investment products, both in number of accounts as well as AuM
Global footprint to capture loan growth
Continued tailwind from a positive rate environment on the replicating portfolio
Liability NII growth depending on central bank rate increases, deposit tracking and customer behaviour
Lending NII growth depending on demand and pricing discipline in the market
■ Fee growth
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Total income growth
■ Costs including full-year inflationary effects and continued investments in our business for growth
Lower regulatory costs once funds required for the DGS and SRF are filled 4)
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Intention to converge to our target level in roughly equal steps through pay-out ratio of 50% of
resilient net profit and additional distributions
The next steps to converge to our ~12.5% CET1 ratio target will reflect the strong capital generation
and capital discipline and we will update the market with the 3Q2023 results
Continued income growth and cost control
Improved income / risk-weighted assets in Wholesale Banking
Return on equity³)
11.7%
12%
Strong diversified asset book and low Stage 3 ratio protects P&L
~12.5% CET1 ratio target level
1) Year-on-year comparison
2) Total income excludes net TLTRO impact and hyperinflation accounting in Türkiye
3) Based on 4-quarter rolling average. RoE is calculated using IFRS-EU shareholders' equity after excluding amounts reserved for future distribution
4) Formal build-up phase of several local Deposit Guarantee Schemes (DGS) and European Single Resolution Fund (SRF) are scheduled to be completed by 2024
5) Implies management buffer (incl. Pillar 2 Guidance) of ~180 bps over fully loaded CET1 requirement of 10.70%
5View entire presentation