H1 2022 key takeaways
• EPS normalized of €0.21, of which €0.16 from core banking activities, vs. €0.10 in H1.21. Normalized operating profit at €285mn in H1.22 vs €126mn a year ago, on the back of strong net fee income growth, cost containment and significant de-escalation of impairments
• NPE ratio to 9%, from 25% a year ago; Sunrise 3 and Solar NPE loan securitizations amounting to €0.9bn GBV, whose budgeted losses have already been booked, are in advanced state and are expected to be concluded by year-end 2022, while the respective applications for inclusion to HAPS have been submitted
• €0.4bn negative NPE formation in H1.22, historical best performance
• €1.5bn net performing loan book growth, already beating annual target, driven by solid new loan origination of €4.4bn; loan yields remain resilient
• RoaTBV of 10% on a normalized basis, sustained enhanced returns for the rest of the year
• CET1 fully loaded at 10.2%, ahead of year-end target, with all 2022 NPE clean-up fully absorbed
• Synthetic securitization program for 2022 amounting to €1.1bn RWA relief, in three already signed transactions; first transaction of €0.4bn RWA relief was concluded in Q2; program to be enhanced with an extra €0.5bn RWA relief this year
H1 2022 financial highlights
• Net interest income, excluding income from NPEs, reached €512mn, up 3% yoy
• Solid net fee income generation at €237mn (including rental income), +22% yoy, with strong dynamics in all fee generating areas of the business and predominantly from loan origination
• Recurring operating expenses at €408mn, -4% yoy, benefiting from staff costs rationalization and G&A costs optimization
• Organic loan impairment at €151mn, -40% yoy
Full Year 2022 revised forecasts
• EPS normalized to c.€0.35 from €0.05 previously
• FL CET1 to c.11% from c.10% previously
• Net performing loan book growth to above €2.0bn from c.€1.2bn previously
• NPE ratio to c.8% from c.9% previously
• RoaTBV normalized to c.8% from c.1% previously
