LOSS PERCENTAGE/LOSS RATIO Adjusted loss percentage/ loss ratio is defined as the adjusted losses on loans divided by the average adjusted yearly loans to customers. The number is represented in percentage. Losses on loans is among the most significant elements in the income statement, and the development in loan 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 2022 2021 Losses on loans 292.1 739.1 Average loans to customer 8,930.1 7,879.5 Loss percentage 2022: 292.1 / 8,930.1 = 3.3 % Loss percentage 2021: 739.1 / 7,879.5 = 9.4 % 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 2022 2021 Profit/(loss) after tax 0.9 -208.7 + One-off cost related to losses on loans after tax 0.0 353.8 - Interest after tax on additional Tier 1 capital -14.8 -13.4 = Adjusted profit/(loss) after tax -13.8 131.7 Average equity 1,759.1 1,950.2 + Average one-off cost related to losses on loans after tax - 88.4 = Adjusted average equity 1,759.1 2,038.7 ROE adjusted 2022: (0.9-14.8)/1,759.1 = -0.8% ROE adjusted 2021: 131.7/2,038.7 = 6.5 % Komplett Bank / Annual Report 2022 83
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