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Mar 6 2020, 07:15 GMT
Profits are in line, along with a significant beat on capital. The intention to ideally look to begin distributing excess capital this year will also be well received. This reaffirms the surplus capital investment thesis, although we imply at least a mid-single-digit percentage cut to 2020 operating profit from some top-line weakness as well as slightly higher costs. An 8%+ 2022 ROTE target looks achievable, with non-performing exposure (NPE) reduction momentum to continue.