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Investor Presentaiton

Glossary (1/3) APM Accumulated Provisions and FV adjustments Impairment losses on loans "Income from financial operations" or "Trading Income" Core Operating Income Core Pre-Provision Income Cost of Risk Deposits Extraordinary costs Fair Value adjustments Fully-Loaded Common Equity Tier 1 ratio Gross Loans Loan to Deposit ratio Net Interest Margin Net Loans Non Performing Exposures Collateral Coverage Non Performing Exposure Coverage Non Performing Exposure ratio Definitions The item corresponds to (i) "the total amount of provision for credit risk that the Group has recognized and derive from contracts with customers", as disclosed in the Consolidated Financial Statements of the reported period and (ii) the Fair Value Adjustments. The figure equals "Impairment losses and provisions to cover credit risk on loans and advances to customers" as derived from the Consolidated Financial Statements of the reported period The figure is calculated as "Gains less losses on derecognition of financial assets measured at amortised cost" plus "Gains less losses on financial transactions "as derived from the Consolidated Income Statement of the reported period. Operating Income less Income from financial operations less management adjustments on operating income for the corresponding period. Management adjustments are: Euro -9.7 million related to Goodwill impairment of an associated company in Q1 19 and Euro 13.0 million related to Insurance company compensation in Q4 18. Core Operating Income for the period less Recurring Operating Expenses for the period. Impairment losses on loans for the period divided by the average Net Loans of the relevant period. Average balances is defined as the arithmetic average of balance at the end of the period and at the end of the previous period. The figure equals "Due to customers" as derived from the Consolidated Balance Sheet of the reported period. The figure equals the management adjustments on operating expenses. The item corresponds to the accumulated Fair Value adjustments for non-performing exposures measured at Fair Value Through P&L (FVTPL). Common Equity Tier 1 regulatory capital as defined by Regulation No 575/2013 (Full implementation of Basel 3), divided by total Risk Weighted Assets (RW As) The item corresponds to "Loans and advances to customers", as reported in the Consolidated Balance Sheet of the reported period, gross of the "Accumulated Provisions and FV adjustments", excluding the accumulated provision for impairment losses on off balance sheet items, as disclosed in the Consolidated Financial Statements of the reported period. Net Loans divided by Deposits at the end of the reported period. Net Interest Income for the period (annualised) and divided by the average Total Assets of the relevant period. Average balances is defined as the arithmetic average of balance at the end of the period and at the end of the previous period. The figure equals "Loans and advances to customers" as derived from the Consolidated Balance Sheet of the reported period. Value of the NPE collateral divided by NPEs at the end of the reference period. Accumulated Provisions and FV adjustments divided by NPEs at the end of the reference period. NPEs divided by Gross Loans at the end of the reference period. Standard banking terminology Relevance of the metric Reference number Abbreviation 1 LLR Standard banking terminology Standard banking terminology 10 LLP 3 Profitability metric Profitability metric Asset quality metric Standard banking terminology Standard banking terminology Standard banking terminology Regulatory metric of capital strength Standard banking terminology 5=4-3 5-7 Core PPI 10/9 (avg) COR 8 2 FV adj. FL CET 1 ratio Liquidity metric Profitability metric Standard banking terminology 9/8 LDR or L/D ratio NIM 9 Asset quality metric Asset quality metric Asset quality metric 13 NPE collateral Coverage NPE (cash) 14=1/12 12/2 coverage NPE ratio 63 ALPHA SERVICES AND HOLDINGS
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