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1Q17 presentation slides CEO observations

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(1)

CEO Observations

(2)

Key highlights

 Business momentum healthy, achieved $2.89b income despite a weak trading quarter

(3)

Fee income at record, new highs in wealth management

and transaction services

Investment banking

2017 2016

142 148 147 148 157

176 179 201 158 222

124 120 110

80

128

114 108 123

138

700 702

(4)

Key highlights

 Business momentum healthy, achieved $2.89b income despite a weak trading quarter

 Net fee income at record $665m

 Productivity gains: expenses -1% yoy; cost-income ratio improved to 43%

 NPA formation moderates, NPL ratio stable at 1.4%

 Allowance coverage at 103%

(5)

Portfolio update: Support services

Unchanged at Mar 2017

3 additional names moved

(6)

On provisions

 Realistic collateral valuations used

 “Standard” vessels realising values within expected range

 India NPL sales also reflect adequate provisions

(7)

Outlook

 Loan and income: maintain mid-single digit growth

 Loan pipeline healthy

 NIM: expect 2016 average if rate assumptions materialise

 Fee income streams strong

 Cost-income ratio: hold around 43%

 NPL formation: moderate from 2016

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