Financial Analysis and Currency Deposits slide image

Financial Analysis and Currency Deposits

Upgrades to medium term guidance on strong performance and changing macro dynamics Profitability November 2020 August 2022 2025 Targets Medium Term target set in: February 2022 2024 Targets 2025 Targets May 2022 2025 Targets Return on Tangible Equity¹ c.7% in 2024 >10% in 2025 >10% from 2024 >10% from 2023 onwards Capital Capital return Asset Quality Cost to Income ratio² Mid-50s 50%-55% 50%-55% NPE Ratio Cost of risk Dividends CET1 ratio c.5% <3% <3% 40-50 bps 70-80 bps 40-50 bps No guidance Consider from 2023 onwards³ Consider meaningful dividends from 2023 onwards³ At least 13% Supported by CET1 ratio of 13.5%-14.5% 12 1) ROTE is calculated as Profit after Tax divided by (Shareholders' equity minus Intangible assets) 2) 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. 32 3) Subject to performance and regulatory approvals 4) Subject to regulatory approvals and market conditions c.50% <3% 40-50 bps Meaningful from 2023 onwards 4 Supported by CET1 ratio of 13.5%-14.5% 37
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