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Our financial ambitions are steered through 3 interconnecting levers – costs, net revenues and capital – being largely under our management control.
The optimisation of our 3 key financial levers will continue to result in profitable growth and organic capital generation.
COSTS – our cost base at year-end was 9.6 bn, translating to a 47.0% cost/income ratio. This was the result of our relentless focus on managing expenses, despite the unexpectedly high inflation we faced across our geographic footprint. This is partly thanks to early proactive measures taken. With our cost efficiency, we delivered positive operating leverage while funding investments supporting our digital transformation, hiring over 1,400 FTEs for strategic areas and while also supporting our people through inflation relief.
NET REVENUES – our net revenues stood at 18.4bn – increase of 13% Y/Y. This KPI ensures that our growth does not come at the expense of sound risk management and that we increase our focus on capital-light business/fee business, also by leveraging our simplified partnership model (insurance fee business).
CAPITAL – Our organic capital generation of 279 basis points is well above our guidance of an annual average of around 150 basis points, and delivered via a net profit of 5.2 bn and through proactive RWA management without impacting revenue growth. Over the course of FY22 we achieved a total of 19bn of RWA reduction via active portfolio management. Efficient capital allocation remains a priority focus to manage RWAs, enhancing return on capital and supporting organic capital generation.