REG - Bank of Cyprus Hldgs - Interim Financial Report 2022 - 5
31/08/2022 07:16
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RNS Number : 7206X Bank of Cyprus Holdings PLC 31 August 2022
Definitions and explanations of Alternative Performance Measures Disclosures
30 June 2022
DEFINITIONS
Allowance for expected loan credit losses Allowance for expected loan credit losses comprises: (i) allowance for
expected credit losses (ECL) on loans and advances to customers (including
allowance for expected credit losses on loans and advances to customers
classified as non-current assets held for sale), (ii) the residual fair value
adjustment on initial recognition of loans and advances to customers
(including residual fair value adjustment on initial recognition of loans and
advances to customers held for sale), (iii) allowance for expected credit
losses on off-balance sheet exposures (financial guarantees and commitments)
disclosed on the balance sheet within other liabilities and (iv) the aggregate
fair value adjustment on loans and advances to customers classified and
measured at FVPL.
Cost to income ratio Cost to income ratio is calculated as the total staff costs (excluding
'Restructuring costs - Voluntary Staff Exit Plan (VEP)') (on an underlying
basis as reconciled in the table further below), special levy on deposits and
other levies/contributions and other operating expenses (excluding 'Advisory
and other restructuring costs-organic', 'Restructuring and other costs
relating to NPE sales', and 'provisions for litigation, claims, regulatory and
other matters' (on an underlying basis as reconciled in the table further
below) divided by total income as per the underlying basis (as defined below).
Digitally engaged customers ratio This is the ratio of digitally engaged individual customers to the total
number of individual customers. Digitally engaged customers are the
individuals who use the digital channels of BOC PCL (mobile banking app,
browser and ATMs) to perform banking transactions, as well as digital enablers
such as a bank-issued card to perform online card purchases, based on an
internally developed scorecard.
Gross loans Gross Loans comprise: (i) gross loans and advances to customers measured at
amortised cost before the residual fair value adjustment on initial
recognition (including loans and advances to customers classified as
non-current assets held for sale) and (ii) loans and advances to customers
classified and measured at FVPL adjusted for the aggregate fair value
adjustment.
Gross loans are reported before the residual fair value adjustment on initial
recognition relating mainly to loans acquired from Laiki Bank (calculated as
the difference between the outstanding contractual amount and the fair value
of loans acquired at acquisition).
Interest earning assets Interest earning assets include: cash and balances with central banks, plus
loans and advances to banks, plus net loans and advances to customers
(including net loans and advances to customers classified as non-current
assets held for sale) (as defined below), plus investments (excluding equities
and mutual funds).
Leverage ratio The leverage ratio is the ratio of tangible total equity (including Other
equity instruments) to total assets as presented on the balance sheet.
Loan credit losses Loan credit losses comprise: (i) credit losses to cover credit risk on loans
and advances to customers, (ii) net gains on derecognition of financial assets
measured at amortised cost and (iii) net gains on loans and advances to
customers at FVPL, for the period.
Loan credit losses charge (cost of risk) Loan credit losses charge (cost of risk) (year to date) is calculated as the
loan credit losses (as defined) (annualised based on year to date days)
divided by the average gross loans (as defined). The average gross loans are
calculated as the average of the opening balance and the closing balance for
the period.
Net fee and commission income over total income Fee and commission income less fee and commission expense divided by total
income (as defined).
Net Interest Margin Net interest margin is calculated as the net interest income (per the
underlying basis) (annualised based on year to date days) divided by the
quarterly average interest earning assets (as defined). Quarterly average
interest earning assets exclude interest earning assets of any discontinued
operations at each quarter end, if applicable.
Net loans and advances to customers Net loans and advances to customers comprise gross loans (as defined) net of
allowance for expected loan credit losses (as defined, but excluding allowance
for expected credit losses on off-balance sheet exposures disclosed on the
balance sheet within other liabilities).
Net loans to deposits ratio Net loans to deposits ratio is calculated as the gross loans (as defined) net
of allowance for expected loan credit losses (as defined), divided by customer
deposits.
New lending New lending includes the disbursed amounts of the new and existing
non-revolving facilities (excluding forborne or re-negotiated accounts) as
well as the average year to date change (if positive) of the current accounts
and overdraft facilities between the balance at the beginning of the period
and the end of the period. Recoveries are excluded from this calculation since
their overdraft movement relates mostly to accrued interest and not to new
lending.
Non-performing exposures (NPEs) As per the EBA standards and European Central Bank's (ECB) Guidance to Banks
on Non-Performing Loans (which was published in March 2017), NPEs are defined
as those exposures that satisfy one of the following conditions:
(i) The borrower is assessed as unlikely to pay its credit
obligations in full without the realisation of the collateral, regardless of
the existence of any past due amount or of the number of days past due.
(ii) Defaulted or impaired exposures as per the approach
provided in the Capital Requirement Regulation (CRR), which would also trigger
a default under specific credit adjustment, diminished financial obligation
and obligor bankruptcy.
(iii) Material exposures as set by the Central Bank of Cyprus
(CBC), which are more than 90 days past due.
(iv) Performing forborne exposures under probation for which
additional forbearance measures are extended.
(v) Performing forborne exposures previously classified as NPES
that present more than 30 days past due within the probation period.
From 1 January 2021 two regulatory guidelines came into force that affect NPE
classification and Days-Past-Due calculation. More specifically, these are the
RTS on the Materiality Threshold of Credit Obligations Past-Due
(EBA/RTS/2016/06), and the Guideline on the Application of the Definition of
Default under article 178 (EBA/GL/2016/07).
The Days-Past-Due (DPD) counter begins counting DPD as soon as the arrears or
excesses of an exposure reach the materiality threshold (rather than as of the
first day of presenting any amount of arrears or excesses). Similarly, the
counter will be set to zero when the arrears or excesses drop below the
materiality threshold. Payments towards the exposure that do not reduce the
arrears/excesses below the materiality threshold, will not impact the counter.
For retail debtors, when a specific part of the exposures of a customer that
fulfils the NPE criteria set out above is greater than 20% of the gross
carrying amount of all on-balance sheet exposures of that customer, then the
total customer exposure is classified as non‑performing; otherwise only the
specific part of the exposure is classified as non‑performing.
For non‑retail debtors, when an exposure fulfils the NPE criteria set out
above, then the total customer exposure is classified as non‑performing.
Material arrears/excesses are defined as follows:
- Retail exposures: Total arrears/excess amount greater than €100
- Exposures other than retail: Total arrears/excess amount greater than €500
and the amount in arrears/excess is at least 1% of the customer's total
exposure.
The NPEs are reported before the deduction of allowance for expected loan
credit losses (as defined).
Non-recurring items Non-recurring items as presented in the 'Unaudited Consolidated Income
Statement on the underlying basis' relate to: (i) Advisory and other
restructuring costs - organic, (ii) Provisions/net loss relating to NPE sales,
(iii) Restructuring and other costs relating to NPE sales, and (iv)
Restructuring costs - Voluntary Staff Exit Plan (VEP).
NPE coverage ratio The NPE coverage ratio is calculated as the allowance for expected loan credit
losses (as defined) over NPEs (as defined).
NPE ratio The NPE ratio is calculated as the NPEs (as defined) divided by gross loans
(as defined).
Operating profit Operating profit before credit losses and impairments (on an underlying basis)
comprises profit before loan credit losses (as defined), impairments of other
before credit losses and impairments financial and non-financial assets, provisions for litigation, claims,
regulatory and other matters, tax, profit attributable to non-controlling
interests and non-recurring items (as defined).
Operating profit return on average assets Operating profit before credit losses and impairments return on average assets
is calculated as the annualised (based on year to date days) operating profit
(on an underlying basis) (as defined) divided by the quarterly average of
total assets for the relevant period. Average total assets exclude total
assets of discontinued operations at each quarter end, if applicable.
Profit/(loss) after tax and before non-recurring items (attributable to the Profit/(loss) after tax and before non-recurring items (attributable to the
owners of the Company) owners of the Company) is the operating profit (as defined) adjusted for loan
credit losses (as defined), impairments of other financial and non-financial
assets, provisions for litigation, claims, regulatory and other matters, tax
and (profit)/loss attributable to non-controlling interests.
Profit/(loss) after tax - organic (attributable to the owners of the Company) Profit/(loss) after tax - organic (attributable to the owners of the Company)
is the profit/(loss) after tax and before non-recurring items (as defined)
(attributable to the owners of the Company), except for the 'Advisory and
other restructuring costs - organic'.
Return on Tangible Equity (ROTE) after tax and before non-recurring items Return on Tangible Equity (ROTE) after tax and before non-recurring items is
calculated as Profit/(loss) after tax and before non-recurring items
(attributable to the owners of the Company) (as defined) per the underlying
basis (annualised - (based on year-to-date days)), divided by the quarterly
average of Shareholders' equity minus intangible assets at each quarter end.
Return on Tangible Equity (ROTE) Return on Tangible Equity (ROTE) is calculated as Profit/(loss) after tax
(attributable to the owners of the Company) (as defined) per the underlying
basis (annualised - (based on year-to-date days)), divided by the quarterly
average of Shareholders' equity minus intangible assets at each quarter end.
Total income Total income on the underlying basis comprises the total of net interest
income, net fee and commission income, net foreign exchange gains, net
gains/(losses) on financial instruments (excluding net gains on loans and
advances to customers at FVPL), insurance income net of claims and
commissions, net gains/(losses) from revaluation and disposal of investment
properties and on disposal of stock of property and other income (on an
underlying basis). A reconciliation of these amounts between the statutory and
the underlying bases is disclosed in the Interim Management Report under
section 'Group financial results on the underlying basis'.
RECONCILIATIONS
For the purpose of the 'Definitions and explanations of Alternative
Performance Measures Disclosures', reference to 'Note' relates to the
respective note in the Consolidated Condensed Interim Financial Statements for
the six months ended 30 June 2022.
1. (a) Reconciliation of Gross loans and advances to customers
30 June 2022 31 December 2021
€000 €000
Gross loans and advances to customers as per the underlying basis (as defined 11,047,029 10,856,660
above)
Reconciling items:
Residual fair value adjustment on initial recognition (Note 29.4) (96,070) (105,678)
Gross loans and advances to customers at amortised cost classified as held for (551,806) (555,789)
sale (Note 29.4)
Residual fair value adjustment on initial recognition on loans and advances to (18,043) (19,090)
customers classified as held for sale (Note 29.4)
Loans and advances to customers measured at fair value through profit or loss (282,184) (281,868)
(Note 16)
Aggregate fair value adjustment on loans and advances to customers measured at (30,560) (53,700)
fair value through profit or loss
Gross loans and advances to customers at amortised cost as per the 10,068,366 9,840,535
Consolidated Condensed Interim Financial Statements (Note 16)
1. (b) Reconciliation of Gross loans and advances to customers classified
as held for sale
30 June 2022 31 December 2021
€000 €000
Gross loans and advances to customers classified as held for sale as per the 569,849 574,879
underlying basis
Reconciling items:
Residual fair value adjustment on initial recognition on loans and advances to (18,043) (19,090)
customers classified as held for sale (Note 29.4)
Loans and advances to customers classified as held for sale as per the 551,806 555,789
Consolidated Condensed Interim Financial Statements (Note 19)
2. (a) Reconciliation of Allowance for expected credit losses on loans and
advances to customers (ECL)
30 June 2022 31 December 2021
€000 €000
Allowance for expected credit losses on loans and advances to customers (ECL) 677,241 791,830
as per the underlying basis (as defined above)
Reconciling items:
Residual fair value adjustment on initial recognition (Note 29.4) (96,070) (105,678)
Aggregate fair value adjustment on loans and advances to customers measured at (30,560) (53,700)
fair value through profit or loss
Allowance for expected credit losses on loans and advances to customers (304,599) (305,419)
classified as held for sale (Note 19)
Residual fair value adjustment on initial recognition on loans and advances to (18,043) (19,090)
customers classified as held for sale (Note 29.4)
Provisions for financial guarantees and commitments (Note 23) (21,518) (21,945)
Allowance for ECL for impairment of loans and advances to customers as per the 206,451 285,998
Consolidated Condensed Interim Financial Statements (Note 16)
2. (b) Reconciliation of Allowance for expected credit losses on loans and
advances to customers classified as held for sale (ECL)
30 June 31 December 2021
2022
€000 €000
Allowance for expected credit losses on loans and advances to customers (ECL) 322,642 324,509
classified as held for sale as per the underlying basis
Reconciling items:
Residual fair value adjustment on initial recognition on loans and advances to (18,043) (19,090)
customers classified as held for sale (Note 29.4)
Allowance for ECL for impairment of loans and advances to customers classified 304,599 305,419
as held for sale as per the Consolidated Condensed Interim Financial
Statements (Note 19)
3. Reconciliation of NPEs
30 June 31 December 2021
2022
€000 €000
NPEs as per the underlying basis (as defined above) 1,167,609 1,343,308
Reconciling items:
Loans and advances to customers (NPEs) classified as held for sale (Note 1 (549,681) (553,619)
below)
Residual fair value adjustment on initial recognition of loans and advances to (18,002) (19,030)
customers (NPEs) classified as held for sale (Note 2 below)
Loans and advances to customers measured at fair value through profit or loss (99,979) (122,972)
(NPEs)
POCI (NPEs) (Note 3 below) (39,731) (70,814)
Residual fair value adjustment on initial recognition of loans and advances to (3,905) (3,530)
customers (NPEs) classified as Stage 3 (Note 29.4)
Stage 3 gross loans and advances to customers at amortised cost as per the 456,311 573,343
Consolidated Condensed Interim Financial Statements (Note 29.4)
NPE ratio
NPEs (as per table above) (€000) 1,167,609 1,343,308
Gross loans and advances to customers (as per table above) (€000) 11,047,029 10,856,660
Ratio of NPE/Gross loans (%) 10.6% 12.4%
Note 1: Gross loans at amortised cost after residual fair value
adjustment on initial recognition classified as held for sale include an
amount of €470,791 thousand Stage 3 loans (31 December 2021: €474,459
thousand Stage 3 loans) and an amount of €78,890 thousand POCI - Stage 3
loans (out of a total of €79,207 thousand POCI loans) (31 December 2021:
€79,160 thousand POCI - Stage 3 loans (out of a total of €79,255 thousand
POCI loans)) as disclosed in Note 29.4 of the Consolidated Condensed Interim
Financial Statements for the six months ended 30 June 2022.
Note 2: Residual fair value adjustment on initial recognition of loans and
advances to customers classified as held for sale includes an amount of
€1,683 thousand for Stage 3 loans (31 December 2021: €2,079 thousand for
Stage 3 loans) and an amount of €16,319 thousand for POCI - Stage 3 loans
(out of a total of €16,320 thousand POCI loans) (31 December 2021: €16,951
thousand for POCI - Stage 3 loans (out of a total of €16,954 thousand POCI
loans)) as disclosed in Note 29.4 of the Consolidated Condensed Interim
Financial Statements for the six months ended 30 June 2022.
3. Reconciliation of NPEs (continued)
Note 3: Gross loans and advances to customers at amortised cost before
residual fair value adjustment on initial recognition include an amount of
€39,731 thousand POCI - Stage 3 loans (out of a total of €124,176 thousand
POCI loans) (31 December 2021: €70,814 thousand POCI - Stage 3 loans (out of
a total of €159,755 thousand POCI loans)) as disclosed in Note 29.4 of the
Consolidated Condensed Interim Financial Statements for the six months ended
30 June 2022.
4. Reconciliation of Gross Loans - Pro forma
30 June 2022
€000
Gross Loans (as per table 1 (a) above) 11,047,029
Reconciling items:
Gross loans and advances to customers classified as held for sale (569,849)
(Project Helix 3 and Sinope) (as per table 1 (b) above)
Gross loans and advances to customers - Pro forma 10,477,180
5. Reconciliation of NPEs - Pro forma
30 June 2022
€000
NPEs (as per table 3 above) 1,167,609
Reconciling items:
Gross loans and advances to customers (NPEs) classified as held for sale (549,681)
(Project Helix 3 and Sinope) (Note 1 of table 3 above)
Residual fair value adjustment on initial recognition of loans and advances to (18,002)
customers (NPEs) classified as held for sale (Project Helix 3 and Sinope)
(Note 2 of table 3 above)
NPEs - Pro forma 599,926
NPE ratio - Pro forma 30 June 2022
NPEs - Pro forma (as per table above) (€000) 599,926
Gross loans and advances to customers - Pro forma (as per table above) 10,477,180
(€000)
Ratio of NPEs/Gross loans - Pro forma (%) 5.7%
6. Reconciliation of Loan credit losses
Six months ended
30 June
2022 2021
€000 €000
Loan credit losses as per the underlying basis 23,118 35,237
Reconciling items:
Loan credit losses relating to NPE sales, disclosed under non-recurring items 385 15,210
within 'Provisions/net loss relating to NPE sales' under the underlying basis
23,503 50,447
Loan credit losses (as defined) are reconciled to the statutory basis as
follows:
Credit losses to cover credit risk on loans and advances to customers (Note 23,959 48,349
10)
Net gains on derecognition of financial assets measured at amortised cost - (2,515) (1,053)
loans and advances to customers (see further below)
Net losses on loans and advances to customers at FVPL (Note 8) 2,059 3,151
23,503 50,447
Net gains on derecognition of financial assets measured at amortised cost on
the Interim Consolidated Income Statement amounts to €1,648 thousand and
comprises €2,515 thousand net gains on derecognition of loans and advances
to customers and €867 thousand net losses on derecognition of debt
securities measured at amortised cost.
KEY PERFORMANCE RATIOS INFORMATION
For the purpose of the 'Definitions and explanations of Alternative
Performance Measures Disclosures', reference to 'Note' relates to the
respective note in the Consolidated Condensed Interim Financial Statements for
the six months ended 30 June 2022.
1. Net Interest Margin
Reconciliation of the various components of net interest margin between the
underlying basis and the statutory basis is provided below:
1.1.
Six months ended
30 June
1.1. Net interest income used in the calculation of NIM 2022 2021
€000 €000
Net interest income as per the underlying basis/statutory basis 145,695 152,213
Net interest income used in the calculation of NIM (annualized) 293,805 306,949
1.2. Interest earning assets 30 June 31 March 31 December
2022 2022 2021
€000 €000 €000
Cash and balances with central banks 9,904,549 9,329,711 9,230,883
Loans and advances to banks 312,308 312,967 291,632
Loans and advances to customers 10,144,099 10,004,197 9,836,405
Loans and advances to customers held for sale 247,207 247,836 250,370
(Note 19)
Prepayments, accrued income and other assets - Deferred consideration 304,268 302,036 299,766
receivable ('DPP') (Note 18)
Investments
Debt securities (Note 13) 1,913,771 1,860,853 1,930,388
Less: Investments which are not interest bearing (5,476) (5,790) (5,534)
Total interest earning assets 22,820,726 22,051,810 21,833,910
1.3. Quarterly average interest earning assets (€000)
- as at 30 June 2022 22,235,482
- as at 30 June 2021 19,651,625
Six months ended
30 June
1.4. Net interest margin (NIM) 2022 2021
Net interest income (annualised) (as per table 1.1 above) (€000) 293,805 306,949
Quarterly average interest earning assets (as per table 1.3 above) (€000) 22,235,482 19,651,625
NIM (%) 1.32% 1.56%
2. Cost to income ratio
2.1. Reconciliation of the various components of total expenses used in the
cost to income ratio calculation from the underlying basis to the statutory
basis is provided below:
Six months ended
30 June
2022 2021
2.1.1. Reconciliation of Staff costs €000 €000
Total Staff costs as per the underlying basis 100,005 100,866
Staff costs - voluntary exit plans and other termination benefits, separately 3,130 -
presented under the underlying basis (Note 9)
Total Staff costs as per the statutory basis 103,135 100,866
Six months ended
30 June
2022 2021
2.1.2. Reconciliation of Other operating expenses €000 €000
Other operating expenses as per the underlying basis 73,125 69,487
Reclassifications for:
Operating expenses and restructuring costs relating to the NPE sales, 1,389 16,477
presented within 'Restructuring and other costs relating to NPE sales' under
the underlying basis
Provisions for pending litigations, claims, regulatory and other matters, 593 4,360
separately presented under the underlying basis (Note 9)
Advisory and other restructuring costs - organic, separately presented under 5,286 5,264
the underlying basis
Other operating expenses as per the statutory basis (Note 9) 80,393 95,588
Six months ended
30 June
2022 2021
2.1.3. Special levy on deposits and other levies/contributions €000 €000
Special levy on deposits and other levies/contributions as per the underlying 16,507 15,255
basis/statutory basis
2.2. Reconciliation of the various components of total income (as defined)
used in the cost to income ratio calculation from the underlying basis to the
statutory basis is provided below:
Six months ended
30 June
2022 2021
2.2.1. Reconciliation of Net fee and commission income €000 €000
Total Net fee and commission income as per the underlying basis/statutory 93,639 83,857
basis
2. Cost to income ratio (continued)
Six months ended
30 June
2022 2021
(restated)
2.2.2. Reconciliation of Net foreign exchange gains, Net losses on financial €000 €000
instruments and Net gains on derecognition of financial assets measured at
amortised cost
Net foreign exchange gains, Net losses on financial instruments and Net gains 11,030 8,938
on derecognition of financial assets measured at amortised cost as per the
underlying basis
Reclassifications for:
Net losses on loans and advances to customers measured at fair value through (2,059) (3,151)
profit or loss (FVPL), disclosed within 'Loan credit losses' per the
underlying basis (Note 8)
Net gains on derecognition of loans and advances to customers (Table 6 Section 2,515 1,053
'Reconciliations' above)
Net loss on early redemption of subordinated loan stock, disclosed within - (12,433)
'Advisory and other restructuring costs - organic' under the underlying basis
(Note 8)
Total Net foreign exchange gains, Νet losses on financial instruments and Net 11,486 (5,593)
gains on derecognition of financial assets measured at amortised cost as per
the statutory basis (see below)
Net foreign exchange gains as per the statutory basis 11,898 6,550
Net losses on financial instruments as per the statutory basis (Note 8) (2,060) (13,196)
Net gains on derecognition of financial assets measured at amortised cost 1,648 1,053
Total Net foreign exchange gains, Net losses on financial instruments and Net 11,486 (5,593)
gains on derecognition of financial assets measured at amortised cost as per
the statutory basis
Six months ended
30 June
2022 2021
(restated)
2.3 Total Income as per the underlying basis €000 €000
Net interest income as per the underlying basis/statutory basis (as per table 145,695 152,213
above)
Net fee and commission income as per the underlying basis/statutory basis (as 93,639 83,857
per table above)
Net foreign exchange gains, Net losses on financial instruments and Net gains 11,030 8,938
on derecognition of financial assets measured at amortised cost as per the
underlying basis (as per table above)
Insurance income net of claims and commissions (as per the statutory basis) 32,869 31,068
Net losses from revaluation and disposal of investment properties and Net 6,870 5,991
gains on disposal of stock of properties (as per the statutory basis)
Other income (as per the statutory basis) 8,927 5,854
Total Income as per the underlying basis 299,030 287,921
2. Cost to income ratio (continued)
Six months ended
30 June
2022 2021
2.4 Total Expenses as per the underlying basis €000 €000
Staff costs as per the underlying basis (as per table above) 100,005 100,866
Special levy on deposits and other levies/contributions as per the underlying 16,507 15,255
basis (as per table above)
Other operating expenses as per the underlying basis (as per table above) 73,125 69,487
Total Expenses as per the underlying basis 189,637 185,608
Cost to income ratio
Total expenses (as per table above) (€000) 189,637 185,608
Total income (as per table above) (€000) 299,030 287,921
Total expenses/Total income (%) 63% 64%
3. Operating profit return on average assets
The various components used in the determination of the operating profit
return on average assets are provided below:
30 June 31 March 31 December
2022 2022 2021
€000 €000 €000
Total assets used in the computation of the operating profit return on average 25,843,732 25,117,310 24,962,697
assets/per the Interim Consolidated Balance Sheet
Quarterly average total assets (€000)
- as at 30 June 2022 25,307,913
- as at 30 June 2021 22,923,012
2022 2021
(restated)
Annualised total income for the six months ended 30 June (as per table 2.3 603,016 580,614
above) (€000)
Annualised total expenses for the six months ended 30 June (as per table 2.4 (382,417) (374,292)
above) (€000)
Annualised operating profit for the six months ended 30 June (€000) 220,599 206,322
Quarterly average total assets as at 30 June (€000) 25,307,913 22,923,012
Operating profit return on average assets (annualised) (%) 0.9% 0.9%
4. Basic earnings after tax and before non-recurring items per share
attributable to the owners of the Company
The various components used in the determination of the 'Basic earnings after
tax and before non-recurring items per share attributable to the owners of the
Company (€ cent)' are provided below:
2022 2021
Profit after tax and before non-recurring items (attributable to the owners of 60,278 50,123
the Company) per the underlying basis for the six months ended 30 June (as per
table below) (€000)
Weighted average number of shares in issue during the period, excluding 446,058 446,058
treasury shares (€000) (Note 12)
Basic earnings after tax and before non-recurring items per share attributable 13,51 11,24
to the owners of the Company (€ cent)
The reconciliation between the 'Profit after tax and before non-recurring
items (attributable to the owners of the Company)' per the underlying basis to
the 'Profit after tax (attributable to the owners of the Company)' per the
statutory basis is provided in the table below:
4.1. Reconciliation of Profit/(loss) after tax-attributable to the owners of
the Company
Six months ended
30 June
2022 2021
€000 €000
Profit after tax and before non-recurring items (attributable to the owners of 60,278 50,123
the Company) per the underlying basis
Reclassifications for:
Loan credit losses relating to NPE sales, disclosed under non-recurring items (385) (15,210)
within 'Provisions/net loss relating to NPE sales' under the underlying basis
(as per table 6 above)
Operating expenses and restructuring costs relating to the NPE sales, (1,389) (16,477)
presented within 'Restructuring and other costs relating to NPE sales' under
the underlying basis (as per table 2.1.2 above)
Advisory and other restructuring costs - organic, separately presented under (5,286) (5,264)
the underlying basis (as per table 2.1.2 above)
Staff costs - voluntary exit plan, and other termination benefits, separately (3,130) -
presented under the underlying basis (as per table 2.1.1 above)
Net loss on early redemption of Subordinated loan stock, disclosed within - (12,433)
'Advisory and other restructuring costs - organic' under the underlying basis
(as per table 2.2.2 above) (Note 8)
Profit after tax (attributable to the owners of the Company) per the statutory 50,088 739
basis
5. Return on tangible equity (ROTE) after tax and before non-recurring
items
The various components used in the determination of 'Return on tangible equity
(ROTE) after tax and before non-recurring items' are provided below:
2022 2021
Annualised profit after tax and before non-recurring items (attributable to 121,555 101,077
the owners of the Company) per the underlying basis for the six months ended
30 June (as per table 4.1. above) (€000)
Quarterly average tangible total equity as at 30 June (as per table 5.2 below) 1,668,185 1,648,569
(€000)
ROTE after tax and before non-recurring items (%) 7.3% 6.1%
5. Return on tangible equity (ROTE) after tax and before non-recurring
items (continued)
5.1 Tangible total equity 30 June 31 March 31 December
2022 2022 2021
€000 €000 €000
Equity attributable to the owners of the Company (as per the statutory basis) 1,849,525 1,849,287 1,838,793
Less: Intangible assets (as per the statutory basis) (171,403) (177,612) (184,034)
Total tangible equity 1,678,122 1,671,675 1,654,759
5.2 Quarterly average tangible total equity (€000)
- as at 30 June 2022 1,668,185
- as at 30 June 2021 1,648,569
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