2022 outlook

While the 2021 results were in some metrics below our aspirations, we are convinced that the initiatives started and positive trends already observed in the year, will positively contribute to operating results going forward. In particular, subsequent quarters are likely to bring a continuation of the positive trends in NII/NIM as the full impact of higher interest rates will start to feed through. This is likely to substantially outweigh the less positive dynamics expected in opex where inflationary pressures on costs and as, media report, likely substantial increase of BFG charges in 2022, are likely to add some burden. Having said that, we believe, that while at this juncture it is difficult to precisely predict the level of FX-mortgage related costs going forward, the core business results (for data related to new segment reporting please refer to further parts of this report and Annual Financial Consolidated Report of the BM Group for 2021) should improve considerably, increasing our capacity to absorb the FX-mortgage portfolio related costs.