Investor Presentaiton
E. Strategy and Outlook (continued)
During 2022 the Group delivered strong financial results, exceeding its 2022 financial targets. This was marked by the
recovery of revenues driven by the expansion in net interest income, lower operating expenses despite inflationary
pressures and strong performance in asset quality, delivering NPE ratio of sub-5%. As a result the Group achieved a double-
digit recurring ROTE in 2022, building momentum throughout the year.
In 2023 the momentum is expected to continue, leading to an upgrade of targeted ROTE to over 13% from 10% facilitated
by the positive gearing to rising interest rates, improved efficiencies, healthy loan portfolio and robust capital position. This
lays the foundations to commence meaningful dividend distributions from 2023 onwards, subject to regulatory approval and
market conditions. The Group expects to achieve ROTE over 13% for 2024, on the back of stabilising margins and growth
of the loan portfolio.
Key Metrics
2022 Guidance
FY2022
FY2023 Previous
FY2023 Updated
guidance
Date
NII
guidance
November 2022
November 2022
February 2023
>€350 mn
€370 mn
€450-470 mn
40-50% yoy
(€520-550 mn)
Cost to income ratio¹
Low-50s
49%
c.50%
mid-40s
Return on Tangible
Equity (ROTE)²
4.3%
c.10% (recurring)
>10%
>13%
11.3% (recurring)
NPE ratio
<5.0%
4.0%
<5%
<5%
50-80 bps
Cost of risk
1.
2.
Mid-40 bps
44 bps
50-80 bps
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.
Return on Tangible Equity (ROTE) is calculated as Profit after Tax (annualised) divided by average Shareholders' equity minus
intangible assets.
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