Financial Strategy and Ecosystem Platform Expansion slide image

Financial Strategy and Ecosystem Platform Expansion

2021 Achievements and Medium Term Strategy Positive Net Result • Profit after tax and before non-recurring items of €91 mn Profit after tax of €30 mn Careful Cost Management . Total operating expenses¹ of €347 mn broadly flat yoy • C/I ratio at 60%¹ flat yoy Strong Capital and Initiation of MREL issuance • CET1 ratio of 15.8% 2,3 and Total Capital ratio of 20.8% 2,3 • • Successful refinancing of Tier 2 at a significantly lower coupon rate Inaugural issuance of €300 mn Senior Preferred notes; Interim MREL requirement as at 1 January 2022 achieved Single Digit NPE ratio achieved a year earlier than anticipated • NPE ratio reduced to 7.5%² (3.1%² net), following NPE sale (Helix 3) signed in November 2021 Updated Medium Term Strategic Targets • ROTE >10% by 2025 NPE ratio c.5% by end-2022 and <3% by end-2025 • Paving the way for dividend distribution4 from 2023 onwards Announcement of ESG targets; Carbon Neutral by 2030 and Net Zero by 2050 7237 2) 3) Excluding special levy on deposits and other levies/contributions Pro forma for HFS Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements 4) Subject to performance and relevant approvals 5
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