Glossary of Terms
Cash earnings
Net profit after tax adjusted for the amortisation of acquisition intangible assets, recoverable amount adjustments on intangibles, the profit or loss on divestment and their tax effect
Cash earnings per share
Basic: cash earnings divided by the weighted average number of ordinary shares (net of treasury shares) outstanding during the period.
Diluted: cash earnings adjusted for consequential changes in income or expenses associated with the dilutive potential ordinary shares divided by the weighted average number of diluted shares (net of treasury shares) outstanding during the period
Cash return on average shareholders' equity
Cash earnings divided by average equity attributable to owners of the Company. Averages are based on monthly balances over the period. The ratio is annualised for half years
Cash return on average shareholders' equity pre-goodwill
Cash earnings divided by average equity attributable to owners of the Company less goodwill. Averages are based on monthly balances over the period. The ratio is annualised for half years
Cash return on average shareholders' equity pre-goodwill and intangibles
Cash earnings divided by average equity attributable to owners of the Company less goodwill and intangibles. Intangibles excludes any capitalised costs (software or broker commissions). Averages are based on monthly balances over the period. The ratio is annualised for half years
Claims Handling Expenses (CHE)
Costs incurred in the investigation, assessment and settlement of a claim, included as part of net incurred claims
Combined operating ratio
The percentage of net earned premium that is used to meet the costs of all claims incurred plus the costs of acquiring, writing and servicing the General Insurance business
Common Equity Tier 1 (CET1)
Common Equity Tier 1 Capital comprises accounting equity plus adjustments for intangible assets and regulatory reserves
Common Equity Tier 1 Ratio
Common Equity Tier 1 divided by the Prescribed Capital Amount for Life and General Insurance, or total risk-weighted assets for the Bank
Confidence level
Also referred to as “probability of adequacy”, represents the level of certainty that the estimated insurance liabilities, including the risk adjustment, will be adequate to cover future obligations
Cost to income ratio
Operating expenses of the Banking business divided by total income from Banking activities