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Finance - Annual Report - Dictionary


Assets under management - client assets under management.


Basic earnings per share - basic EPS = (Net income – Preferred dividend) / Outstanding common shares. It indicates how much money a company makes for each share of its stock and is a widely used metric for estimating corporate value. EPS is important in calculating the P/E ratio, which is used for the valuation of the company.


Book value per share ( BVPS ) - the ratio of equity available to common shareholders divided by the number of outstanding shares. This figure represents the minimum value of a company's equity and measures the book value of a firm on a per-share basis.


CET1 leverage ratio (%) - component of Tier 1 capital that is mostly of common stock held by a bank or other financial institution.


CET1 ratio (%) - common equity tier capital ratio ( tier 1 capital ratio ) = tier 1 capital / total risk-weighted assets.


CO2 Emissions - carbon dioxide (CO2) makes up the vast majority of greenhouse gas emissions from the sector, but smaller amounts of methane (CH4) and nitrous oxide (N2O) are also emitted. These gases are released during the combustion of fossil fuels, such as coal, oil, and natural gas, to produce electricity.


Cost/income ratio (%) - efficiency ratio used to gauge an organization's efficiency, used to compare the operating expenses of a bank.


Diluted earnings per share - diluted EPS = ( company's Net income + subtract any preferred dividends ) / sum of the weighted average number of shares outstanding and dilutive shares (convertible preferred shares, options, warrants, and other dilutive securities). Diluted EPS is more scientific and more complex than basic EPS.


Dividend per share ( DPS ) - dividend per share is the total dividends declared in a period divided by the number of outstanding ordinary shares issued.


Effective tax rate (%) - the percent of their income that an individual or a corporation pays in taxes. The effective tax rate for individuals is the average rate at which their earned income, such as wages, and unearned income, such as stock dividends, are taxed.


Fitch long term debt - long-term credit ratings are assigned on an alphabetic scale from 'AAA' to 'D', first introduced in 1924 and later adopted and licensed by S&P. ( Fitch, 1914, US )


Fitch short term debt - Fitch's short-term ratings indicate the potential level of default within a 12-month period. ( Fitch, 1914, US )


Income before taxes ( EBT ) - measures a company's financial performance. It is a calculation of a firm's earnings before taxes are taken out. The calculation is revenue minus expenses, excluding taxes. EBT is a line item on a company's income statement.


Market capitalization - total dollar market value of a company's outstanding shares of stock. Commonly referred to as "market cap," it is calculated by multiplying the total number of a company's outstanding shares by the current market price of one share.


Moody's long term debt - ranks the creditworthiness of borrowers using a standardized ratings scale from long term persective. ( Moody, 1909, US )


Moody's short term debt - ranks the creditworthiness of borrowers using a standardized ratings scale from short term persective. ( Moody, 1909, US )


Net income attributable to shareholders - group net profit, adjusted net profit for the group.


Net loans ( Net debt ) - net debt=STD+LTD−CCE. ( Short term debt, Long term debt, Cash instruments with maturity less than 90 )


Net new assets (NNA) - net change in new client assets under management. The amount of fresh assets that the private banker brings in to the bank, e.g. from client.


Net revenues - operating income, operating profit.


Provision for credit losses ( PCL ) - amount added to the allowance for credit losses to bring it to a level that management considers adequate to absorb all credit related losses in its portfolio. PCL is estimation of potential losses that a company might experience due to credit risk. The provision for credit losses is treated as an expense on the company's financial statements.


Return on equity (ROE, %) - ROE = Net Income / Average Shareholders equity. It measures a corporation's profitability in relation to stockholders equity.


Shares outstanding - amount of all the company's stock that's in the hands of its stockholders.


Standard & Poor's long term debt - ranks the creditworthiness of borrowers using a standardized ratings scale from long term persective. ( S&P, 1860, US )


Standard & Poor's short term debt - ranks the creditworthiness of borrowers using a standardized ratings scale from short term persective. ( S&P, 1860, US )


Tangible book value per share ( TBVPS ) - the value of a company's tangible assets divided by its current outstanding shares. TBVPS determines the potential value per share of a company in the event that it must liquidate its assets.


Tangible shareholders’ equity - tangible common equity (TCE) is a measure of a company's physical capital, which is used to evaluate a financial institution's ability to deal with potential losses. Tangible common equity is calculated by subtracting intangible assets (including goodwill) and preferred equity from the company's book value.


Tier 1 ratio (%) - going concern leverage ratio, tier 1 capital ratio, tier 1 leverage ratio.


Total assets - The net worth of a bank is defined as its total assets minus its total liabilities. For the Safe and Secure Bank net worth is equal to e.g. 1 million ( 11 million in assets minus 10 million in liabilities). For a financially healthy bank, the net worth

will be positive.


Total FTE ( Full time equivalent ) - a unit that indicates the workload of an employed person (or student), it makes workloads or class loads more comparable across various contexts than basic headcount.


Total operating expenses ( OPEX ) - expense from normal business operations ( rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development ).


Total shareholders’ equity ( SE ) - Shareholders' Equity = Total Assets – Total Liabilities.







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