Interim Financial Report 2022 - 5

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 before credit losses and impairments		Operating profit before credit losses and impairments (on an underlying basis) comprises profit before loan credit losses (as defined), impairments of other 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 owners of the Company)		Profit/(loss) after tax and before non-recurring items (attributable to the 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 above)	11,047,029	10,856,660
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 sale (Note 29.4)	(551,806)	(555,789)
Residual fair value adjustment on initial recognition on loans and advances to customers classified as held for sale (Note 29 .4 )	(18,043)	(19,090)
Loans and advances to customers measured at fair value through profit or loss (Note 16)	(282,184)	(281,868)
Aggregate fair value adjustment on loans and advances to customers measured at fair value through profit or loss	(30,560)	(53,700)
Gross loans and advances to customers at amortised cost as per the Consolidated Condensed Interim Financial Statements (Note 16)	10,068,366	9,840,535

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 underlying basis	569,849	574,879
Reconciling items:
Residual fair value adjustment on initial recognition on loans and advances to customers classified as held for sale (Note 29 .4 )	(18,043)	(19,090)
Loans and advances to customers classified as held for sale as per the Consolidated Condensed Interim Financial Statements (Note 19)	551,806	555,789

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) as per the underlying basis (as defined above)	677,241	791,830
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 fair value through profit or loss	(30,560)	(53,700)
Allowance for expected credit losses on loans and advances to customers classified as held for sale (Note 19)	(304,599)	(305,419)
Residual fair value adjustment on initial recognition on loans and advances to customers classified as held for sale (Note 29 .4 )	(18,043)	(19,090)
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 Consolidated Condensed Interim Financial Statements (Note 16)	206,451	285,998

2.  (b) Reconciliation of Allowance for expected credit losses on loans and advances to customers classified as held for sale (ECL)

	30 June 2022	31 December 2021
	€000	€000
Allowance for expected credit losses on loans and advances to customers (ECL) classified as held for sale as per the underlying basis	322,642	324,509
Reconciling items:
Residual fair value adjustment on initial recognition on loans and advances to customers classified as held for sale (Note 29 .4 )	(18,043)	(19,090)
Allowance for ECL for impairment of loans and advances to customers classified as held for sale as per the Consolidated Condensed Interim Financial Statements (Note 19)	304,599	305,419

3.  Reconciliation of NPEs

	30 June 2022	31 December 2021
	€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 below)	(549,681)	(553,619)
Residual fair value adjustment on initial recognition of loans and advances to customers ( NPEs ) classified as held for sale (Note 2 below)	(18,002)	(19,030)
Loans and advances to customers measured at fair value through profit or loss (NPEs)	(99,979)	(122,972)
POCI (NPEs) (Note 3 below)	(39,731)	(70,814)
Residual fair value adjustment on initial recognition of loans and advances to customers (NPEs) classified as Stage 3 (Note 29.4)	(3,905)	(3,530)
Stage 3 gross loans and advances to customers at amortised cost as per the Consolidated Condensed Interim Financial Statements (Note 29.4)	456,311	573,343
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 ( Project Helix 3 and Sinope ) (as per table 1 (b) above)	(569,849)
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 ( Project Helix 3 and Sinope ) (Note 1 of table 3 above)	(549,681)
Residual fair value adjustment on initial recognition of loans and advances to customers ( NPEs ) classified as held for sale ( Project Helix 3 and Sinope ) (Note 2 of table 3 above)	(18,002)
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) (€000)	10,477,180
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 within 'Provisions/net loss relating to NPE sales' under the underlying basis	385	15,210
	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 10)	23,959	48,349
Net gains on derecognition of financial assets measured at amortised cost - loans and advances to customers (see further below)	(2,515)	(1,053)
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 2022	31 March 2022	31 December 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 (Note 19)	247,207	247,836	250,370
Prepayments, accrued income and other assets - Deferred consideration receivable ('DPP') (Note 18)	304,268	302,036	299,766
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 presented under the underlying basis (Note 9)	3,130	-
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, presented within 'Restructuring and other costs relating to NPE sales' under the underlying basis	1,389	16,477
Provisions for pending litigations, claims, regulatory and other matters, separately presented under the underlying basis (Note 9)	593	4,360
Advisory and other restructuring costs - organic, separately presented under the underlying basis	5,286	5,264
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 basis/statutory basis	16,507	15,255

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
	20 2 2	20 21
2.2.1.  Reconciliation of Net fee and commission income	€000	€000
Total Net fee and commission income as per the underlying basis/statutory basis	93,639	83,857

2.  Cost to income ratio ( continued)

		Six months ended 30 June
		20 2 2		20 21 (restated)
2.2.2.  Reconciliation of Net foreign exchange gains, Net losses on financial instruments and Net gains on derecognition of financial assets measured at amortised cost		€000		€000
Net foreign exchange gains, Net losses on financial instruments and Net gains on derecognition of financial assets measured at amortised cost as per the underlying basis		11,030		8,938
Reclassifications for:
Net losses on loans and advances to customers measured at fair value through profit or loss (FVPL), disclosed within 'Loan credit losses' per the underlying basis (Note 8)		(2,059)		(3,151)
Net gains on derecognition of loans and advances to customers (Table 6 Section 'Reconciliations' above)		2,515		1,053
Net loss on early redemption of subordinated loan stock, disclosed within 'Advisory and other restructuring costs - organic' under the underlying basis (Note 8)		-		(12,433)
Total Net foreign exchange gains, Ν et losses on financial instruments and Net gains on derecognition of financial assets measured at amortised cost as per the statutory basis (see below)		11,486		(5,593)
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 gains on derecognition of financial assets measured at amortised cost as per the statutory basis		11,486		(5,593)
	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 above)	145,695		152,213
Net fee and commission income as per the underlying basis/statutory basis (as per table above)	93,639		83,857
Net foreign exchange gains, Net losses on financial instruments and Net gains on derecognition of financial assets measured at amortised cost as per the underlying basis (as per table above)	11,030		8,938
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 gains on disposal of stock of properties (as per the statutory basis)	6,870		5,991
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 basis (as per table above)	16,507	15,255
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 2022	31 March 2022	31 December 2021
	€000	€000	€000
Total assets used in the computation of the operating profit return on average assets/per the Interim Consolidated Balance Sheet	25,843,732	25,117,310	24,962,697
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 above) (€000)	603,016	580,614
Annualised total expenses for the six months ended 30 June (as per table 2.4 above) (€000)	(382,417)	(374,292)
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 the Company) per the underlying basis for the six months ended 30 June (as per table below) (€000)	60,278	50,123
Weighted average number of shares in issue during the period, excluding treasury shares (€000) (Note 12)	446,058	446,058
Basic earnings after tax and before non-recurring items per share attributable to the owners of the Company (€ cent)	13,51	11,24

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 the Company) per the underlying basis	60,278	50,123
Reclassifications for:
Loan credit losses relating to NPE sales, disclosed under non-recurring items within 'Provisions/net loss relating to NPE sales' under the underlying basis (as per table 6 above)	(385)	(15,210)
Operating expenses and restructuring costs relating to the NPE sales, presented within 'Restructuring and other costs relating to NPE sales' under the underlying basis (as per table 2.1.2 above)	(1,389)	(16,477)
Advisory and other restructuring costs - organic, separately presented under the underlying basis (as per table 2.1.2 above)	(5,286)	(5,264)
Staff costs - voluntary exit plan, and other termination benefits, separately presented under the underlying basis (as per table 2.1.1 above)	(3,130)	-
Net loss on early redemption of Subordinated loan stock, disclosed within 'Advisory and other restructuring costs - organic' under the underlying basis (as per table 2.2.2 above) (Note 8)	-	(12,433)
Profit after tax (attributable to the owners of the Company ) per the statutory basis	50,088	739

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 the owners of the Company) per the underlying basis for the six months ended 30 June (as per table 4.1. above) (€000)	121,555	101,077
Quarterly average tangible total equity as at 30 June (as per table 5.2 below) (€000)	1,668,185	1,648,569
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 2022	31 March 2022	31 December 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

 

END

 

 

IR SDLSIFEESEIA