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Annexure 1: Definition of Business Indicator Components

No: 44047144 Date(g): 27/12/2022 | Date(h): 4/6/1444 Status: In-Force
Business Indicator definitions
BI ComponentProfit and loss or balance sheet itemsDescriptionTypical sub-items
Interest, lease and dividendInterest incomeInterest income from all financial assets and other interest income (includes interest income from financial and operating leases and profits from leased assets)• Interest income from loans and advances, assets available for sale, assets held to maturity, trading assets, financial leases and operational leases
• Interest income from hedge accounting derivatives
• Other interest income
• Profits from leased assets
 
Interest expensesInterest expenses from all financial liabilities and other interest expenses (includes interest expense from financial and operating leases, losses, depreciation and impairment of operating leased assets)
 
• Interest expenses from deposits, debt securities issued, financial leases, and operating leases
• Interest expenses from hedge accounting derivatives
• Other interest expenses
• Losses from leased assets
• Depreciation and impairment of operating leased assets
 
Interest earning assets (balance sheet item)Total gross outstanding loans, advances, interest bearing securities (including government bonds), and lease assets measured at the end of each financial year
 
Dividend incomeDividend income from investments in stocks and funds not consolidated in the bank's financial statements, including dividend income from non-consolidated subsidiaries, associates and joint ventures.
 
ServicesFee and commission incomeIncome received from providing advice and services. Includes income received by the bank as an outsourcer of financial services.Fee and commission income from:
• Securities (issuance, origination, reception, transmission, execution of orders on behalf of customers)
• Clearing and settlement; Asset management; Custody; Fiduciary transactions; Payment services; Structured finance; Servicing of securitizations; Loan commitments and guarantees given; and foreign transactions
 
Fee and commission expensesExpenses paid for receiving advice and services. Includes outsourcing fees paid by the bank for the supply of financial services, but not outsourcing fees paid for the supply of non- financial services (eg logistical, IT, human resources)
 
Fee and commission expenses from:
• Clearing and settlement; Custody; Servicing of securitizations; Loan commitments and guarantees received; and Foreign transactions
Other operating incomeIncome from ordinary banking operations not included in other BI items but of similar nature (income from operating leases should be excluded)
 
• Rental income from investment properties
• Gains from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations (IFRS 5.37)
 
Other operating expensesExpenses and losses from ordinary banking operations not included in other BI items but of similar nature and from operational loss events (expenses from operating leases should be excluded)• Losses from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations (IFRS 5.37)
• Losses incurred as a consequence of operational loss events (eg fines, penalties, settlements, replacement cost of damaged assets), which have not been provisioned/reserved for in previous years
• Expenses related to establishing provisions/reserves for operational loss events
 
FinancialNet profit (loss) on the trading book• Net profit/loss on trading assets and trading liabilities (derivatives, debt securities, equity securities, loans and advances, short positions, other assets and liabilities)
• Net profit/loss from hedge accounting
• Net profit/loss from exchange differences
 
Net profit (loss) on the banking book• Net profit/loss on financial assets and liabilities measured at fair value through profit and loss
• Realized gains/losses on financial assets and liabilities not measured at fair value through profit and loss (loans and advances, assets available for sale, assets held to maturity, financial liabilities measured at amortized cost)
• Net profit/loss from hedge accounting
• Net profit/loss from exchange differences
 
 
The following Profit and loss items do not contribute to any of the items of the BI: 
 
 Income and expenses from insurance or reinsurance businesses
 
 Premiums paid and reimbursements/payments received from insurance or reinsurance policies purchased
 
 Administrative expenses, including staff expenses, outsourcing fees paid for the supply of non-financial services (e.g. logistical, IT, human resources), and other administrative expenses (e.g. IT, utilities, telephone, travel, office supplies, postage)
 
 Recovery of administrative expenses including recovery of payments on behalf of customers (e.g. taxes debited to customers)
 
 Expenses of premises and fixed assets (except when these expenses result from operational loss events)
 
 Depreciation/amortization of tangible and intangible assets (except depreciation related to operating lease assets, which should be included in financial and operating lease expenses)
 
 Provisions/reversal of provisions (e.g. on pensions, commitments and guarantees given) except for provisions related to operational loss events
 
 Expenses due to share capital repayable on demand
 
 Impairment/reversal of impairment (e.g. on financial assets, non-financial assets, investments in subsidiaries, joint ventures and associates)
 
 Changes in goodwill recognized in profit or loss
 
 Corporate income tax (tax based on profits including current tax and deferred).