Business definitions

These definitions apply to the descriptions in the Annual Report, including the pro forma information.

Capital base

The capital base includes the sum of the Tier 1 capital and the supplementary capital consisting of subordinated loans, after deduction of the book value of the shares in wholly owned insurance companies. Insurance companies have separate capital requirements.

Tier 1 capital

The proportion of the capital base, which includes consolidated shareholders’ equity excluding investments in insurance companies, proposed dividend, tax assets as well as goodwill in the banking operations. Subsequent to the approval of the supervisory authorities, Tier 1 capital also includes qualified forms of subordinated loans (Tier 1 capital contributions and hybrid capital loans).

Risk-weighted amounts

Total assets and off-balance-sheet items valued on the basis of the credit and market risks in accordance with regulations governing capital adequacy, excluding assets in insurance companies, book value of shares which have been deducted from the capital base and goodwill.

Tier 1 capital ratio

Tier 1 capital as a percentage of risk-weighted amounts.

Total capital ratio

Capital base as a percentage of risk-weighted amounts.

Return on equity

Net profit before minority interests and goodwill amortisation/write-downs as a percentage of average shareholders’ equity (per quarter). Average shareholders’ equity includes minority interests but with all outstanding goodwill deducted.

Total shareholders’ return (TSR)

Total shareholders’ return measured as growth in the value of a shareholding over a specified period, assuming the dividends are reinvested at the time of the payment to purchase additional shares.

Loan losses as a percentage of total loans

Loan losses, net (incl. losses on guarantees and transfer risk) as a percentage of total loans and guarantees as of previous year-end.

Earnings per share, after full dilution

Net profit divided by the average number of outstanding shares after full dilution.

Earnings per share

Net profit divided by the average number of outstanding shares.

Shareholders’ equity per share

Shareholders’ equity as shown in the balance sheet after full dilution divided by the number of shares after full dilution.

Cost/income ratio, banking

Total expenses divided by the sum of total income, equity method and investment earnings (banking), as reported in the operational income statement. Operating profit from insurance activities is excluded.

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