ADJUSTED RETURN ON EQUITY (ROE ADJUSTED) Adjusted return on equity (ROE adjusted) is defined as adjusted profit after tax diveded by average yearly adjusted equity (excl. Common Tier 1 capital). The adjusted one-offs relate to non-recurring losses on loans. ROE is presented as a percentage. Losses on loans is among the most significant elements in the profit and loss statement. This is one of the company’s most important target figures and provides information on the Bank’s ability to generate a surplus from the shareholders’ investments. Amounts in NOK million 2021 2020 Profit/(loss) after tax -208.7 262.8 + One-off cost related to losses on loans after tax 353.8 30.0 - Interest after tax on additional Tier 1 capital 13.4 9.3 = Adjusted profit/(loss) after tax 131.7 283.5 Amounts in NOK million 2021 2020 Average equity 1,954.4 1,932.0 + Average one-off cost related to losses on loans after tax 88.4 7.5 = Adjusted average equity 2,042.8 1,939.5 ROE adjusted 2021: 131.7/2,038.7 = 6.5 % ROE adjusted 2020: 283.5/1,939.5 = 14.6 % ADJUSTED LOSS PERCENTAGE/LOSS RATIO Adjusted loss percentage is defined as adjusted losses on loans/average yearly adjusted net loans in percentage. Losses on loans is among the most significant elements in the income statement. The development in loss ratio is an important key measure amongst investors, financial analytics and other to assess the be able to assess the underlying credit risk in the Bank’s loans to customers. Amounts in NOK million 2021 2020 Losses on loans 739.1 364.3 - One-off cost related to losses on loans 472 40 = Adjusted losses on loans 267.4 324.3 Amounts in NOK million 2021 2020 Average loans to customers 7,879.5 8,428.5 + Adjustment loans to customers 117.9 10.0 = Average adjusted loans to customers 7,997.4 8,438.5 Adjusted loss percentage 2021: 267.4 / 7,997.4 = 3.3 % Adjusted loss percentage 2020: 324.3 / 8,438.5 = 3.8 % Komplett Bank / Annual Report 2021 87
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