Definition

Definitions 

Adjusted operating income

Total operating income excluding foreign exchange gains/losses.

Adjusted cost to income ratio (C/I ratio)

Adjusted operating expenses excluding marketing costs as a percentage of adjusted operating income. Adjusted cost to income ratio is presented on a 12-month rolling basis.

Adjusted operating expenses

Total operating expenses excluding amortization of acquired intangible assets and non-recurring items.

Adjusted operating profit

Operating profit excluding amortization of acquired intangible assets, foreign exchange gains/losses and non-recurring items.

Adjusted profit

Profit excluding amortization of acquired intangible assets, foreign exchange

gains/losses and non-recurring items as well as the tax effect thereof.

Adjusted return on average net loans

Adjusted operating profit as a percentage of average loan portfolio. Return on average net loans is presented on a 12-month rolling basis. 

Adjusted return on tangible equity

Adjusted net profit in relation to average tangible equity on a 12-month rolling basis.

Average loan portfolio

The average of lending to the general public at the beginning of the period and lending to the general public at the end of the period.

C/I ratio

Total operating expenses as a percentage of total operating income.

Common Equity Tier 1 capital

Shareholders’ equity excluding proposed dividend, deferred tax assets, intangible assets and certain other regulatory adjustments defined in Regulation (EU) No

575/2013 (CRR). 

Common Equity Tier 1 capital ratio

Common Equity Tier 1 capital as a percentage of risk exposure amount.

Credit loss level

Net credit losses as a percentage of the average lending to the general public.

Earnings per share

Net profit attributable to shareholders in relation to the average number of shares.

Leverage ratio

Tier 1 capital as a percentage of total assets including off balance sheet items with conversion factors defined in regulation (EU) nr 575/2013 (CRR).

Liquidity Coverage Ratio (LCR)

High-quality liquid assets in relation to the estimated net cash outflows over the next 30 calendar days, as defined by Swedish regulations (the SFSA’s code FFFS

2012:6).

Liquidity reserve

A separate reserve of high quality liquid assets that can be used to secure the company’s short-term ability to pay for loss or reduced access to commonly available

sources of funding.

Net interest margin

Total net interest income as a percentage of average loan portfolio.

Own funds

The sum of Tier 1 and Tier 2 capital.

Return on equity

Net profit attributable to shareholders in relation to average shareholders’ equity

Risk exposure amount

Total assets and off balance sheet items, weighted in accordance with capital adequacy regulation for credit and market risks. The operational risks are measured

and added as risk exposure amount.

Tangible equity

Shareholders’ equity less intangible assets.

Tier 1 capital ratio

Tier 1 capital as a percentage of risk exposure amount.

Tier 1 capital

Common Equity Tier 1 capital plus qualifying forms of subordinated loans.

Tier 2 capital

Mainly subordinated loans not qualifying as Tier 1 capital contribution.

Total capital ratio

Total own funds as a percentage of risk exposure amount.

 

A specification of the adjusted key ratios and the definitions can be found in Nordax Groups  interim reports and annual reports.