Corporate Key Measurements 2020

To support the implementation of our strategy, the Bank puts in place corporate KPIs of financial and non-financial metrics that align with the Bank’s long-term objectives. The corporate KPIs serve as the basis on which the variable compensation pool for all employees of the Bank is entirely based.

 

Integration (25%):

To achieve the seamless customer migration and successful transition of the entire business transfer (EBT), the Bank needs to ensure of system readiness, minimizing impacts at EBT in mid-2021. Customer experience will not be compromised during the customer transfer from one bank to another. The progress and completion of the integration is measured through transferred customers and integration blueprint execution.

 

Liquidity sufficiency, capital adequacy, and profitability (20%):

Given the COVID-19 crisis, profitability alone does not sufficiently reflect the Bank’s financial performance. Thus, the Bank also monitors liquidity and capital adequacy as both are essential indicators that reflect how well banks cope with crisis while provide financial support to the effected consumers and businesses. The financial performance of the Bank depends on various factors i.e. ability to generate income generation, cost management, as well as liquidity and capital management. Example of indicators measured include %CET1 and %C/I.

 

Risk management (20%):

Risk management is an important part of business operation for the Bank to achieve business plans/goals, comply with regulatory and grow sustainably. This means short- and long-term financial and non-financial risks need to be managed effectively. The Bank monitors NPL/Stage3, regulator’s assessment, and internal audit/compliance issues.

 

Ability to generate future income (10%):

Customers are the heart of the business. Thus, the Bank needs to focus on how well the Bank engages with customers and the quality of services, in addition to the short-term financial performance. This will ensure that customers are satisfied with the products and services which will help generate sustainable income in the future. Example of indicators measured include customer satisfaction score and number of primary banking customers.

 

Digital transformation (10%):

Given the rapid changes and disruption in financial industry nowadays, it is essential that digital transformation needs to be an integral part of the business strategy and operation, fundamentally changing how to operate and deliver values. Thus, the Bank drives towards ‘digital first’ direction and continues to keep the organization more agile. The progress of digital transformation is measured through tracking as per roadmap and the penetration of customer toward use of our digital banking platform.

 

People and culture (10%):

Employees are one of the key elements in driving service excellence; thus, human capital development is crucial to the Bank, especially in this time of the merger between two banks. There will be surplus supply and demand shortage in some areas that the Bank needs to focus on. Given the merger situation, the Bank plans to retain talents within the organization and ensures that employees are effectively managed. Indicators that the Bank measures include the percentage of regrettable loss and the percentage of position filled by internal redeployment.

 

Sustainability (5%):

The Bank strives to integrate sustainability aspects into the business, aiming to avoid and minimize negative impacts of our operations, products, and services, and to identify business opportunities to create positive impacts. As environmental, social and governance aspects are embedded in the business in the short- and long-term perspectives, the Bank tracks various indicators that reflecting our ESG performance including corporate governance report score, reduction in resource consumption (energy, GHG, water), loan with positive environmental and social impacts, and the percentage of approval customers’ requests for debt relief program.

 

Corporate Key Measurements 2020

To support the implementation of our strategy, the Bank puts in place corporate KPIs of financial and non-financial metrics that align with the Bank’s long-term objectives. The corporate KPIs serve as the basis on which the variable compensation pool for all employees of the Bank is entirely based.

 

Integration (25%):

To achieve the seamless customer migration and successful transition of the entire business transfer (EBT), the Bank needs to ensure of system readiness, minimizing impacts at EBT in mid-2021. Customer experience will not be compromised during the customer transfer from one bank to another. The progress and completion of the integration is measured through transferred customers and integration blueprint execution.

 

Liquidity sufficiency, capital adequacy, and profitability (20%):

Given the COVID-19 crisis, profitability alone does not sufficiently reflect the Bank’s financial performance. Thus, the Bank also monitors liquidity and capital adequacy as both are essential indicators that reflect how well banks cope with crisis while provide financial support to the effected consumers and businesses. The financial performance of the Bank depends on various factors i.e. ability to generate income generation, cost management, as well as liquidity and capital management. Example of indicators measured include %CET1 and %C/I.

 

Risk management (20%):

Risk management is an important part of business operation for the Bank to achieve business plans/goals, comply with regulatory and grow sustainably. This means short- and long-term financial and non-financial risks need to be managed effectively. The Bank monitors NPL/Stage3, regulator’s assessment, and internal audit/compliance issues.

 

Ability to generate future income (10%):

Customers are the heart of the business. Thus, the Bank needs to focus on how well the Bank engages with customers and the quality of services, in addition to the short-term financial performance. This will ensure that customers are satisfied with the products and services which will help generate sustainable income in the future. Example of indicators measured include customer satisfaction score and number of primary banking customers.

 

Digital transformation (10%):

Given the rapid changes and disruption in financial industry nowadays, it is essential that digital transformation needs to be an integral part of the business strategy and operation, fundamentally changing how to operate and deliver values. Thus, the Bank drives towards ‘digital first’ direction and continues to keep the organization more agile. The progress of digital transformation is measured through tracking as per roadmap and the penetration of customer toward use of our digital banking platform.

 

People and culture (10%):

Employees are one of the key elements in driving service excellence; thus, human capital development is crucial to the Bank, especially in this time of the merger between two banks. There will be surplus supply and demand shortage in some areas that the Bank needs to focus on. Given the merger situation, the Bank plans to retain talents within the organization and ensures that employees are effectively managed. Indicators that the Bank measures include the percentage of regrettable loss and the percentage of position filled by internal redeployment.

 

Sustainability (5%):

The Bank strives to integrate sustainability aspects into the business, aiming to avoid and minimize negative impacts of our operations, products, and services, and to identify business opportunities to create positive impacts. As environmental, social and governance aspects are embedded in the business in the short- and long-term perspectives, the Bank tracks various indicators that reflecting our ESG performance including corporate governance report score, reduction in resource consumption (energy, GHG, water), loan with positive environmental and social impacts, and the percentage of approval customers’ requests for debt relief program.

 

Corporate Key Measurements 2020

To support the implementation of our strategy, the Bank puts in place corporate KPIs of financial and non-financial metrics that align with the Bank’s long-term objectives. The corporate KPIs serve as the basis on which the variable compensation pool for all employees of the Bank is entirely based.

 

Integration (25%):

To achieve the seamless customer migration and successful transition of the entire business transfer (EBT), the Bank needs to ensure of system readiness, minimizing impacts at EBT in mid-2021. Customer experience will not be compromised during the customer transfer from one bank to another. The progress and completion of the integration is measured through transferred customers and integration blueprint execution.

 

Liquidity sufficiency, capital adequacy, and profitability (20%):

Given the COVID-19 crisis, profitability alone does not sufficiently reflect the Bank’s financial performance. Thus, the Bank also monitors liquidity and capital adequacy as both are essential indicators that reflect how well banks cope with crisis while provide financial support to the effected consumers and businesses. The financial performance of the Bank depends on various factors i.e. ability to generate income generation, cost management, as well as liquidity and capital management. Example of indicators measured include %CET1 and %C/I.

 

Risk management (20%):

Risk management is an important part of business operation for the Bank to achieve business plans/goals, comply with regulatory and grow sustainably. This means short- and long-term financial and non-financial risks need to be managed effectively. The Bank monitors NPL/Stage3, regulator’s assessment, and internal audit/compliance issues.

 

Ability to generate future income (10%):

Customers are the heart of the business. Thus, the Bank needs to focus on how well the Bank engages with customers and the quality of services, in addition to the short-term financial performance. This will ensure that customers are satisfied with the products and services which will help generate sustainable income in the future. Example of indicators measured include customer satisfaction score and number of primary banking customers.

 

Digital transformation (10%):

Given the rapid changes and disruption in financial industry nowadays, it is essential that digital transformation needs to be an integral part of the business strategy and operation, fundamentally changing how to operate and deliver values. Thus, the Bank drives towards ‘digital first’ direction and continues to keep the organization more agile. The progress of digital transformation is measured through tracking as per roadmap and the penetration of customer toward use of our digital banking platform.

 

People and culture (10%):

Employees are one of the key elements in driving service excellence; thus, human capital development is crucial to the Bank, especially in this time of the merger between two banks. There will be surplus supply and demand shortage in some areas that the Bank needs to focus on. Given the merger situation, the Bank plans to retain talents within the organization and ensures that employees are effectively managed. Indicators that the Bank measures include the percentage of regrettable loss and the percentage of position filled by internal redeployment.

 

Sustainability (5%):

The Bank strives to integrate sustainability aspects into the business, aiming to avoid and minimize negative impacts of our operations, products, and services, and to identify business opportunities to create positive impacts. As environmental, social and governance aspects are embedded in the business in the short- and long-term perspectives, the Bank tracks various indicators that reflecting our ESG performance including corporate governance report score, reduction in resource consumption (energy, GHG, water), loan with positive environmental and social impacts, and the percentage of approval customers’ requests for debt relief program.