Implementation of EBA Guidelines on the publication of non-performing and renegotiated exposures (EBA/GL/2018/10)

Implementation of EBA Guidelines on the publication of non-performing and renegotiated exposures (EBA/GL/2018/10) 1 EBA/GL/2018/10 17.12.2018 Guidelines on the publication of non-performing and renegotiated exposures

Implementation of EBA Guidelines on the publication of non-performing and renegotiated exposures 2

1. Compliance and reporting obligations Status of the guidelines This document contains guidelines issued pursuant to Article 16 of Regulation (EU) No 1093/20101. In accordance with Article 16(3) of Regulation (EU) No 1093/2010, competent authorities and financial institutions shall make every effort to comply with these guidelines. These guidelines set out the EBA’s opinion on appropriate supervisory practices within the European System of Financial Supervision or on how Union law should be applied in a particular area. Competent authorities, as defined in Article 4(2) of Regulation (EU) No 1093/2010, to which these guidelines apply, shall comply with them by incorporating them into their practices, including where the guidelines are addressed primarily to institutions (e.g. by modifying their legal framework or supervisory processes). Reporting obligations
2. In accordance with Article 16(3) of Regulation (EU) No 1093/2010, competent authorities shall indicate to the EBA whether they comply or intend to comply with these guidelines, or indicate the reasons for non-compliance, if any, by ([dd.mm.yyyy]). In the absence of notification by this date, competent authorities will be considered by the EBA as not complying with them. Each authority shall indicate its choice by sending the form provided on the EBA website to the following email address: compliance@eba.europa.eu, indicating the reference ‘EBA/GL/2018/10’. Notifications shall be communicated by persons duly authorised to report on compliance with the guidelines on behalf of the competent authorities they represent. Any change in compliance with the guidelines shall be reported to the EBA.
3. Notifications will be published on the EBA website, in accordance with Article 16(3).

1 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12).

Implementation of EBA Guidelines on the publication of non-performing and renegotiated exposures 3 2. Subject matter, scope and definitions Subject matter 5. These guidelines specify the content and uniform publication formats to be followed by credit institutions regarding publications on non-performing exposures (NPEs), renegotiated exposures and foreclosed assets. Scope 6. These guidelines apply to credit institutions subject to the full or part of the publication requirements set out in Part Eight of Regulation (EU) No 575/2013 (the CRR)2, in accordance with Articles 6, 10 and 13 of the CRR. 7. These guidelines apply to all exposures meeting the definitions of ‘non-performing’ and ‘renegotiation’ in Annex V to Commission Implementing Regulation (EU) No 680/20143. 8. The principle of proportionality applies depending on the size of the credit institution and the level of NPEs reported, in accordance with the scope specified for each individual template. If some templates apply to all credit institutions, others apply only to credit institutions that are important and have a gross non-performing loan (NPL) ratio equal to or greater than 5%. Addressees 9. These guidelines are addressed to competent authorities, as defined in Article 4(2)(i) of Regulation (EU) No 1093/2010, and to credit institutions, as defined in Article 4(1)(1) of Regulation (EU) No 575/2013.

2 Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1). 3 Commission Implementing Regulation (EU) No 680/2014 of 16 April 2014 laying down implementing technical standards with regard to supervisory reporting of institutions according to Regulation (EU) No 575/2013 of the European Parliament and of the Council (OJ L 191, 28.6.2014, p. 1).

Implementation of EBA Guidelines on the publication of non-performing and renegotiated exposures 4 Definitions 10. Unless otherwise specified, the terms used and defined in Regulation (EU) No 575/2013 and in Commission Implementing Regulation (EU) No 680/2014 have the same meaning in these guidelines. 11. Furthermore, and in particular, for the purposes of these guidelines, the following definitions apply: 12. Credit institutions that meet one or more of the following criteria are important: a. the credit institution is among the three largest credit institutions in its home Member State; b. the consolidated assets of the credit institution exceed EUR 30 billion; c. the average total asset of the credit institution over the last four years exceeds 20% of the average GDP of the last four years of its home Member State; d. the credit institution has consolidated exposures, pursuant to Article 429 of the CRR, greater than EUR 200 billion (or its equivalent in a foreign currency, according to the reference exchange rate published by the European Central Bank at the end of the financial year concerned); e. the credit institution has been identified by competent authorities as a Global Systemically Important Institution (G-SII), as defined in Commission Delegated Regulation (EU) No 1222/2014, or as another Systemically Important Institution (other SII), pursuant to Article 131(3) of Directive 2013/36/EU. 13. The gross NPL ratio is the ratio between the gross carrying amount of non-performing loans and advances, on the one hand, and the total gross carrying amount of loans and advances covered by the NPE definition, on the other hand. For the purposes of this calculation, loans and advances classified as held for sale, demand deposits at central banks and other demand deposits must be excluded from both the denominator and the numerator. 14. Non-performing loans and advances include loans and advances that are classified as non-performing in accordance with Annex V to Regulation (EU) No 680/2014.

Implementation of EBA Guidelines on the publication of non-performing and renegotiated exposures 5 Frequency of publications 15. The guidelines introduce the following harmonised4 frequency for the templates: a. Template 1 ('Credit quality of renegotiated exposures'), Template 3 ('Credit quality of non-performing exposures by days past due'), Template 4 ('Performing and non-performing exposures and corresponding provisions') and Template 9 ('Foreclosed assets and enforcement processes') should be published by all credit institutions specified in the scope of these templates, at the following frequency: i. every half-year by credit institutions that have been identified by competent authorities as G-SIIs or other SIIs, pursuant to point (e) of paragraph 12, ii. every year by all other credit institutions, iii. credit institutions that meet at least one of the importance criteria specified in points (a) to (d) of paragraph 12, and that, at the reference date of the semi-annual publications, have a gross NPL ratio equal to or greater than 5%, should publish these templates at the semi-annual reference date; b. Template 2 ('Quality of renegotiation'), Template 5 ('Quality of non-performing exposures by geographic zone'), Template 6 ('Quality of loans and advances by sector'), Template 7 ('Collateral assessment – loans and advances'), Template 8 ('Changes in the stock of non-performing loans and advances') and Template 10 ('Foreclosed assets and enforcement processes – breakdown by vintage') should be published every year by credit institutions that meet at least one of the importance criteria specified in paragraph 12 and whose gross NPL ratio is equal to or greater than 5%, in accordance with the scope of these templates. Credit institutions falling within the scope of the templates subject to the 5% gross NPL threshold should start publishing these templates if they have reached or exceeded the threshold for two consecutive quarters during the four quarters preceding the reference date of the publication. With regard to the first reference date of the publication to which credit institutions should comply with these guidelines, institutions should publish the templates subject to the 5% gross NPL ratio threshold if they reach the threshold at this reference date. Credit institutions may stop publishing the templates subject to the 5% gross NPL ratio threshold if they have fallen below the threshold for three consecutive quarters during the four quarters preceding the reference date of the publication.

4 Credit institutions should ensure that the publication date of the information contained in these guidelines is close to the publication date of their financial statements and that no more than a reasonable period elapses between these dates.

Implementation of EBA Guidelines on the publication of non-performing and renegotiated exposures 6

Implementation of EBA Guidelines on the publication of non-performing and renegotiated exposures 7 3. Implementation Date of application 16. These guidelines apply from 31 December 2019. Amendments 17. These guidelines replace the following templates of the guidelines on publication requirements pursuant to Part Eight of Regulation (EU) No 575/2013 (EBA/GL/2016/11): a. 'Template 14: EU CR1-D – Age of non-performing exposures'; b. 'Template 15: EU CR1-E – Non-performing and renegotiated exposures'. 18. Consequently, institutions that are required to publish the aforementioned templates in accordance with the EBA 2016 guidelines must comply with this obligation by publishing the information required in these guidelines. 19. Institutions that, in accordance with the EBA 2016 guidelines, are required to publish 'Template 12: EU CR1-B – Credit quality of exposures by sector or counterparty type' and 'Template 13: EU CR1-C – Credit quality of exposures by geographic zone' will be able to meet this obligation by publishing 'Template 5: Quality of non-performing exposures by geographic zone' and 'Template 6: Credit quality of loans and advances by sector' of these guidelines every half-year. Institutions may also choose to publish templates 5 and 6 of these guidelines, including only information relating to NPEs (excluding information from the 'of which in default' column) and to publish templates 12 and 13 of the EBA 2016 guidelines for information on non-performing exposures.

Implementation of EBA Guidelines on the publication of non-performing and renegotiated exposures 8 Annex I – Publication templates: renegotiation Template 1: Credit quality of renegotiated exposures Objective: to present an overview of the quality of renegotiated exposures as defined in Commission Implementing Regulation (EU) No 680/2014. Scope: the template applies to all credit institutions, as defined in paragraph 6. Content: gross carrying amount of renegotiated exposures and corresponding cumulative impairments, provisions, cumulative change in fair value due to credit risk, as well as collateral and financial guarantees received, in accordance with the regulatory consolidation perimeter pursuant to Part One, Title II, Chapter 2, of the CRR. Frequency: semi-annual or annual in accordance with paragraph 15. Format: fixed. Explanation: institutions should explain the origins of any significant changes in amounts compared to the previous publication period. a b c d e f g h Gross carrying amount/nominal amount of exposures subject to renegotiation measures Cumulative impairments, cumulative negative changes in fair value due to credit risk and provisions Collateral received and financial guarantees received on renegotiated exposures Performing renegotiated Non-performing renegotiated On the performing renegotiated exposures On the non-performing renegotiated exposures Of which collateral and financial guarantees received on the non-performing exposures subject to renegotiation Of which in default Of which impaired 1 Loans and advances

Implementation of EBA Guidelines on the publication of non-performing and renegotiated exposures 9 2 Central banks 3 Public administrations 4 Credit institutions 5 Other financial corporations 6 Non-financial corporations 7 Households 8 Debt securities 9 Loan commitments given 10 Total Definitions Columns Gross carrying amount: gross carrying amount, as defined in Annex V, Part One, point 34, of Commission Implementing Regulation (EU) No 680/2014. For loan commitments given, the amount indicated should be the nominal amount as defined in Annex V, Part Two, point 118, of Commission Implementing Regulation (EU) No 680/2014. The gross carrying amount corresponding to exposures subject to impairment is the net amount of partial and total off-balance sheet exits cumulatively. Renegotiated exposures: renegotiated exposures, as defined in Annex V, Part Two, points 240 to 244 of Commission Implementing Regulation (EU) No 680/2014. Depending on whether renegotiated exposures meet or do not meet the conditions required by Annex V of this Regulation, they will be classified as performing or non-performing exposures. Impaired exposures: renegotiated exposures that are also impaired under the applicable accounting framework, in accordance with Annex V, Part Two, point 215, of Commission Implementing Regulation (EU) No 680/2014. Defaulted exposures: renegotiated exposures that are also classified as defaulted exposures within the meaning of Article 178 of the CRR. Cumulative impairments, cumulative negative changes in fair value due to credit risk and provisions: this value should include amounts determined in accordance with Annex V, Part Two, points 11, 69 to 71, 106 and 110, of Commission Implementing Regulation (EU) No 680/2014. Collateral and guarantees received on renegotiated exposures: all exposures subject to renegotiation measures are to be included, whether these exposures are performing or non-performing. Amounts relating to collateral received and guarantees received should be calculated in accordance with Annex V, Part Two, point 239, of Commission Implementing Regulation (EU) No 680/2014. The sum of the amounts published for collateral and guarantees is capped at the carrying amount of the corresponding exposure.

Implementation of EBA Guidelines on the publication of non-performing and renegotiated exposures 10 Non-performing exposures subject to renegotiation measures: these exposures (renegotiated non-performing) should include renegotiated exposures meeting the criteria to be considered non-performing and which are included in the category of non-performing exposures. These renegotiated and non-performing exposures should include the following: a) exposures that have become non-performing due to the application of renegotiation measures; b) exposures that were non-performing before the application of renegotiation measures; c) renegotiated exposures that have been reclassified from the performing category, including exposures reclassified in accordance with Annex V, Part Two, point 260, of Commission Implementing Regulation (EU) No 680/2014. Rows Breakdown by counterparties: institutions should apply the breakdown by counterparties as defined in Annex V, Part One, point 42, of Commission Implementing Regulation (EU) No 680/2014. Allocation to a counterparty sector should be based solely on the nature of the immediate counterparty. The classification of exposures falling under more than one debtor should be based on the characteristics of the debtor that was most relevant, or most decisive, in the institution’s decision to authorise the exposure. Among other classifications, the distribution of joint exposures according to the counterparty sector, country of residence and NACE code should be motivated by the characteristics of the most relevant, or most decisive, debtor.

Implementation of EBA Guidelines on the publication of non-performing and renegotiated exposures 11 Template 2: Quality of renegotiation Objective: to present an overview of the quality of renegotiation. Scope: the template applies to credit institutions that meet at least one of the importance criteria, as defined in paragraph 12, and whose gross NPL ratio is equal to or greater than 5%. Content: gross carrying amount of exposures to renegotiated loans and advances, in accordance with the regulatory consolidation perimeter, pursuant to Part One, Title II, Chapter 2, of the CRR. Frequency: annual, in accordance with paragraph 15. Format: fixed. Explanation: institutions should explain the origins of any significant changes in amounts compared to the previous publication period. a Gross carrying amount of renegotiated exposures 1 Renegotiated loans and advances renegotiated more than twice 2 Non-performing renegotiated loans and advances that have not met the criteria for exit from the 'non-performing' category Definitions Columns Gross carrying amount: see the definition in Template 1, 'Credit quality of renegotiated exposures'. Renegotiated exposures: see the definition in Template 1, 'Credit quality of renegotiated exposures'. Rows Having been subject to renegotiation more than twice: gross carrying amount of loans and advances that had been subject to renegotiation measures in the past, and this more than twice. Loans and advances for which a renegotiation has been authorised and which have exited the 'renegotiated' category (i.e. renegotiated loans and advances that have been regularised) are also included in this definition when a new renegotiation measure has been authorised.

Implementation of EBA Guidelines on the publication of non-performing and renegotiated exposures 12 Non-performing renegotiated loans and advances that have not met the criteria for exit from the 'non-performing' category: gross carrying amount of non-performing renegotiated loans and advances listed in the category of non-performing renegotiated loans and advances during the 1-year cure period, which have not met the renegotiation measures after the 12-month cure period and which, therefore, have not managed to obtain the 'performing renegotiated' status, but have retained the 'non-performing renegotiated' status during the cure period.

Implementation of EBA Guidelines on the publication of non-performing and renegotiated exposures 13 Annex II - Publication templates: non-performing exposures Template 3: Credit quality of performing and non-performing exposures by days past due Objective: to present an overview of the credit quality of non-performing exposures as defined in Commission Implementing Regulation (EU) No 680/2014. Scope: the template applies to all credit institutions, as defined in paragraph 6. Content: gross carrying amount of performing and non-performing exposures, in accordance with the regulatory consolidation perimeter, pursuant to Part One, Title II, Chapter 2, of the CRR. Frequency: semi-annual or annual in accordance with paragraph 15. Format: fixed. Explanation: institutions should explain the origins of any significant changes in amounts compared to the previous publication period. Institutions are also expected to publish the gross NPL ratio, which is calculated by dividing column d, row 1, by the sum of column d, row 1, and column a, row 1. a b c d e f g h i j k l Gross carrying amount/nominal amount Performing exposures Non-performing exposures Not in default or in default ≤ 30 days In default

30 days ≤ 90 days Payment improbable, but not in default or in default ≤ 90 days In default 90 days ≤ 180 days In default 180 days ≤ 1 year In default 1 year ≤ 2 years In default 2 years ≤ 5 years In default 5 years ≤ 7 years In default 7 years Of which in default 1 Loans and advances

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FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 14 2 Central banks 3 Public administrations 4 Credit institutions 5 Other financial corporations 6 Non-financial corporations 7 Of which SMEs 8 Households 9 Debt securities outstanding 10 Central banks 11 Public administrations 12 Credit institutions 13 Other financial corporations 14 Non-financial corporations 15 Off-balance sheet exposures 16 Central banks 17 Public administrations 18 Credit institutions 19 Other financial corporations 20 Non-financial corporations 21 Households 22 Total

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 15 Definitions Columns Gross carrying amount: see the definition in template 1, "Credit quality of renegotiated exposures". Non-performing exposures: as defined in Annex V, Part Two, point 213, of Commission Implementing Regulation (EU) No 680/2014. Defaulted exposures: see the definition in template 1, "Credit quality of renegotiated exposures". Not in arrears or in arrears ≤ 30 days: sub-category of performing exposures that are not in arrears or have been in arrears for 1 to 30 days. In arrears > 30 days ≤ 90 days: sub-category of performing exposures that have been in arrears for 31 to 90 days. Furthermore, exposures that have been in arrears for more than 90 days and are not material are included in this sub-category. Improbable of payment, but not in arrears or in arrears ≤ 90 days: sub-category of exposures that are not in arrears or have been in arrears for 90 days or less, but are nevertheless classified as non-performing, pursuant to Annex V, Part Two, point 213 b), of Commission Implementing Regulation (EU) No 680/2014. Rows Breakdown by counterparty: institutions should apply the breakdown by counterparty as defined in Annex V, Part One, point 42, of Commission Implementing Regulation (EU) No 680/2014. The allocation to a counterparty sector should be based solely on the nature of the immediate counterparty. The classification of exposures falling under more than one debtor jointly should be carried out based on the characteristics of the debtor that was most relevant, or most decisive, in the institution's decision to authorize the exposure. Among other classifications, the distribution of joint exposures according to the counterparty sector, country of residence, and NACE code should be motivated by the characteristics of the most relevant, or most decisive, debtor. SMEs: as defined in Annex V, Part One, point 5 i), of Commission Implementing Regulation (EU) No 680/2014.

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 16 Template 4: Performing and non-performing exposures and corresponding provisions Objective: to present an overview of the credit quality of non-performing exposures and corresponding impairments, provisions, and fair value adjustments by portfolio and exposure category. Scope: the template applies to all credit institutions, as defined in paragraph 6. Content: gross carrying amount of performing and non-performing exposures and corresponding cumulative impairments, provisions, cumulative variation in fair value due to credit risk, cumulative partial derecognition from the balance sheet, as well as collateral and financial guarantees received, in accordance with the regulatory consolidation perimeter pursuant to Part One, Title II, Chapter 2, of the CRR. Frequency: semi-annual or annual in accordance with paragraph 15. Format: fixed. Explanation: institutions should explain the origins of any significant changes in amounts compared to the previous publication period. a b c d e f g h i j k l m n o Gross carrying amount / Nominal amount Cumulative impairments, cumulative negative variations in fair value due to credit risk and provisions Cumulative partial derecognition from the balance sheet Collateral and financial guarantees received Performing exposures Non-performing exposures Performing exposures – Cumulative impairments and provisions Non-performing exposures – Cumulative impairments, cumulative negative variations in fair value due to credit risk and provisions On performing exposures On non-performing exposures of which Stage 1 of which Stage 2 of which Stage 2 of which Stage 3 of which Stage 1 of which Stage 2 of which Stage 2 of which Stage 3 1 Loans and advances 2 Central banks 3 Public administrations

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 17 4 Credit institutions 5 Other financial corporations 6 Non-financial corporations 7 Of which SMEs 8 Households 9 Debt securities outstanding 10 Central banks 11 Public administrations 12 Credit institutions 13 Other financial corporations 14 Non-financial corporations 15 Off-balance sheet exposures 16 Central banks 17 Public administrations 18 Credit institutions 19 Other financial corporations 20 Non-financial corporations 21 Households 22 Total Definitions Rows SMEs: as defined in Annex V, Part One, point 5 i), of Commission Implementing Regulation (EU) No 680/2014.

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 18 Columns Gross carrying amount: see the definition in template 1, "Credit quality of renegotiated exposures". Non-performing exposures: see the definition in template 3 "Credit quality of performing and non-performing exposures by days past due". Cumulative impairments, cumulative negative variations in fair value due to credit risk and provisions: see the definition in template 1, "Credit quality of renegotiated exposures". Cumulative partial derecognition from the balance sheet: this item must include the cumulative partial amount at the reference date of principal and interest and fees in arrears for any debt security that has been derecognized at that date using one of the methods described in Annex V, Part Two, point 74, of Commission Implementing Regulation (EU) No 680/2014, to be included because the institution has no reasonable expectation of recovering contractual cash flows. These amounts are to be included until the total extinction of all rights of the credit institution publishing the information due to the expiration of the limitation period, cancellation, or for any other reason, or until their recovery. Consequently, amounts derecognized from the balance sheet that are not recovered are to be included as long as they can be subject to enforcement measures. Derecognitions constitute a derecognition event and relate to a financial asset in its entirety or (in the case of partial derecognition from the balance sheet) to part thereof, including when the modification of an asset leads the institution to waive its right to recover cash flows, either on a part or on the entire asset. Of which Stage 1/Stage 2/Stage 3: impairment categories, as defined in IFRS 9.5.5. "Stage 1" corresponds to impairment measured in accordance with IFRS 9.5.5.5. "Stage 2" corresponds to impairment measured in accordance with IFRS 9.5.5.3. "Stage 3" corresponds to impairment of impaired assets within the meaning of Annex A of IFRS 9. The columns "Of which Stage 1", "Of which Stage 2" and "Of which Stage 3" should not be filled in by institutions applying national generally accepted accounting principles based on Council Directive 86/635/EEC of 8 December 1986 on the annual accounts and consolidated accounts of banks and other financial institutions. Collateral and guarantees received: see the definition in template 1, "Credit quality of renegotiated exposures".

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 19 Template 5: Quality of non-performing exposures by geographical area Objective: to present an overview of the credit quality of non-performing exposures and corresponding cumulative impairments, provisions, and fair value adjustments by geographical area. Scope: the template applies to credit institutions that meet at least one of the importance criteria, as defined in paragraph 12, and whose gross NPL ratio is equal to or greater than 5%, and when initial non-national exposures in all foreign countries, in all exposure categories, are equal to or greater than 10% of total initial exposures (national and non-national). Content: gross carrying amount of performing and non-performing exposures and corresponding cumulative impairments, provisions, and cumulative variation in fair value due to credit risk, in accordance with the regulatory consolidation perimeter pursuant to Part One, Title II, Chapter 2, of the CRR. Frequency: annual, in accordance with paragraph 15. Format: fixed with flexible rows depending on the number of significant countries. Explanation: institutions should explain the origins of any significant changes in amounts compared to the previous publication period. When the significance of countries is determined based on a significance threshold, it should be indicated, as well as the list of non-significant countries appearing in the "Other countries" rows. a b c d e f g Gross carrying amount / Nominal amount Cumulative impairment Provisions related to off-balance sheet commitments and financial guarantees given Cumulative negative variations in fair value due to credit risk on non-performing exposures Of which non-performing Of which subject to impairment Of which defaulted 1 On-balance sheet exposures 2 Country 1 3 Country 2 4 Country 3 5 Country 4 6 Country N

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 20 7 Other countries 8 Off-balance sheet exposures 9 Country 1 10 Country 2 11 Country 3 12 Country 4 13 Country N 14 Other countries 15 Total Definitions Columns Gross carrying amount: see the definition in template 1, "Credit quality of renegotiated exposures". Nominal amount: for financial guarantees, loan commitments, and other commitments given, the nominal amount, as defined in Annex V, Part Two, point 118, of Commission Implementing Regulation (EU) No 680/2014, should be published. Non-performing exposures: see the definition in template 3 "Credit quality of performing and non-performing exposures by days past due". Defaulted exposures: see the definition in template 1, "Credit quality of renegotiated exposures". Gross carrying amount / Nominal amount – of which subject to impairment: the gross carrying amount / nominal amount of exposures subject to the impairment requirements of the applicable accounting framework. Cumulative impairments, cumulative negative variations in fair value due to credit risk and provisions: see the definition in template 1, "Credit quality of renegotiated exposures". Rows Country: a country in which the institution's exposures are significant in accordance with EBA/GL/2014/14. When the significance of countries is determined based on a significance threshold, it should be indicated, as well as the list of non-significant countries appearing in the "Other countries" rows. Institutions should allocate their exposures to a significant country based on the residence of the immediate counterparty. Exposures to supranational organizations should be allocated not to the country of residence of the institution, but to "Other countries".

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 21 Template 6: Credit quality of loans and advances by industry sector Objective: to present an overview of the credit quality of loans and advances to non-financial corporations and corresponding impairments, provisions, and fair value adjustments by industry sector. Scope: the template applies to credit institutions that meet at least one of the importance criteria, as defined in paragraph 12, and whose gross NPL ratio is equal to or greater than 5%. Content: gross carrying amount of loans and advances to non-financial corporations as well as corresponding cumulative impairments and cumulative variation in fair value due to credit risk, in accordance with the regulatory consolidation perimeter pursuant to Part One, Title II, Chapter 2, of the CRR. Frequency: annual, in accordance with paragraph 15. Format: fixed. Explanation: institutions should explain the origins of any significant changes in amounts compared to the previous publication period. a b c d e f Gross carrying amount Cumulative impairment Cumulative negative variations in fair value due to credit risk on non-performing exposures Of which non-performing Of which loans and advances subject to impairment Of which defaulted 1 Agriculture, forestry and fishing 2 Mining and quarrying 3 Manufacturing 4 Electricity, gas, steam and air conditioning supply 5 Water supply

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 22 6 Construction 7 Wholesale and retail trade 8 Transportation and storage 9 Accommodation and food service activities 10 Information and communication 11 Financial and insurance activities 12 Real estate activities 13 Professional, scientific and technical activities 14 Administrative and support service activities 15 Public administration and defence; compulsory social security 16 Education 17 Human health and social work activities 18 Arts, entertainment and recreation 19 Other services 20 Total Definitions Columns Gross carrying amount: see the definition in template 1, "Credit quality of renegotiated exposures". Gross carrying amount – of which loans and advances subject to impairment: the gross carrying amount of exposures subject to the impairment requirements of the applicable accounting framework. Non-performing exposures: see the definition in template 3 "Credit quality of performing and non-performing exposures by days past due". Defaulted exposures: see the definition in template 1, "Credit quality of renegotiated exposures".

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 23 Cumulative impairments and negative fair value adjustments linked to credit risk: this value should include amounts determined in accordance with Annex V, Part Two, points 69 to 71, of Commission Implementing Regulation (EU) No 680/2014. Rows The allocation to a counterparty sector should be based solely on the nature of the immediate counterparty. The classification of exposures falling under more than one debtor jointly should be carried out based on the characteristics of the debtor that was most relevant, or most decisive, for the institution's decision to authorize the exposure. The rows should be used to publish significant industrial sectors or types of counterparties where institutions hold exposures. Significance should be assessed based on EBA/GL/2014/14 guidelines, and industrial sectors or types of counterparties considered non-significant should be grouped on the "Other services" row.

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 24 Annex III – Publication templates: Valuation of collateral Template 7: Valuation of collateral – Loans and advances Objective: to publish the valuation of collateral and other information on loans and advances. Scope: the template applies to credit institutions that meet at least one of the importance criteria, as defined in paragraph 12, and whose gross NPL ratio is equal to or greater than 5%. Content: gross carrying amount of loans and advances and corresponding cumulative impairments, collateral and financial guarantees received, and partial derecognitions from the balance sheet, in accordance with the regulatory consolidation perimeter pursuant to Part One, Title II, Chapter 2, of the CRR. Frequency: annual, in accordance with paragraph 15. Format: fixed. Explanation: institutions should explain the origins of any significant changes in amounts compared to the previous publication period. a b c d e f g h i j k l Loans and advances Performing Non-performing Improbable of payment, but not in arrears or in arrears ≤ 90 days In arrears > 90 days Of which in arrears > 30 days ≤ 90 days Of which in arrears > 90 days ≤ 180 days Of which in arrears > 180 days ≤ 1 year Of which in arrears > 1 year ≤ 2 years Of which in arrears > 2 years ≤ 5 years Of which in arrears > 5 years ≤ 7 years Of which in arrears > 7 years

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 25 1 Gross carrying amount 2 Of which guarantees 3 Of which real estate collateral 4 Of which instruments with loan-to-value ratio greater than 60 % and less than or equal to 80 % 5 Of which instruments with loan-to-value ratio greater than 80 % and less than or equal to 100 % 6 Of which instruments with loan-to-value ratio greater than 100 % 7 Cumulative impairment of secured assets 8 Collateral 9 Of which value capped at exposure value 10 Of which real estate 11 Of which value above cap 12 Of which real estate

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 26 13 Financial guarantees received 14 Cumulative partial derecognition from the balance sheet

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 27 Definitions Columns Of which in arrears > 30 days: sub-category of performing loans and advances that have been in arrears for 31 to 90 days. Non-performing exposures: see the definition in template 3 "Credit quality of performing and non-performing exposures by days past due". Improbable of payment, but not in arrears or in arrears ≤ 90 days: sub-category of loans and advances that are not in arrears or have been in arrears for a maximum of 90 days, but are nevertheless classified as non-performing, due to the probability of full non-repayment pursuant to Annex V, Part Two, point 213 b), of Commission Implementing Regulation (EU) No 680/2014. Of which in arrears > 90 days ≤ 180 days: sub-category of loans and advances that have been in arrears for 91 to 180 days. Of which in arrears > 180 days ≤ 1 year: sub-category of loans and advances that have been in arrears for 181 days to 1 year. Of which in arrears > 1 year ≤ 2 years: sub-category of loans and advances that have been in arrears for 1 to 2 years. Of which in arrears > 2 years ≤ 5 years: sub-category of loans and advances in arrears for 2 to 5 years. Of which in arrears > 5 years ≤ 7 years: sub-category of loans and advances in arrears for 5 to 7 years. Of which in arrears > 7 years: sub-category of loans and advances in arrears for more than 7 years. Rows Gross carrying amount: see the definition in template 1, "Credit quality of renegotiated exposures". Secured loans and advances should also include parts of these exposures that are not secured. Unsecured loans and advances should include exposures for which no security has been given and no financial guarantee has been received; the unsecured part of an exposure subject to partial security or guarantee should not be included, pursuant to Annex V, Part Two, point 327 c), of Commission Implementing Regulation (EU) No 680/2014. Consequently, secured loans and advances must be calculated as the difference between the gross carrying amount of all loans and advances and the gross carrying amount of unsecured loans and advances. Instruments with a loan-to-value ratio greater than 60 % and less than or equal to 80 %: the loan-to-value ratio should be calculated using the calculation method specified for the "current loan-to-value ratio" in the recommendation of the European Systemic Risk Board of 31 October 2016 to fill housing data gaps (CERS/2016/14). Institutions should publish the gross carrying amount of loans and advances with a loan-to-value ratio greater than 60 % and less than or equal to 80 %. Instruments with a loan-to-value ratio greater than 80 % and less than or equal to 100 %: institutions should publish the gross carrying amount of loans and advances with a loan-to-value ratio greater than 80 % and less than or equal to 100 %.

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 28 Instruments with a loan-to-value ratio greater than 100%: gross carrying amount of loans and advances with a loan-to-value ratio greater than 100%. Cumulative impairment of secured assets: for secured debt instruments, cumulative impairment should be calculated as the cumulative amount of impairment losses, net of usage and reversals, which has been recognized, where applicable, for each stage of impairment [Annex V, Part Two, point 70, of Commission Implementing Regulation (EU) No 680/2014]. Collateral – of which value is capped at the exposure value: the amounts published for received collateral should be calculated in accordance with Annex V, Part Two, point 239, of Commission Implementing Regulation (EU) No 680/2014. The sum of the amounts indicated for collateral on this line should be capped at the gross carrying amount of the corresponding exposure. Of which real estate: the part of the collateral constituted by residential or commercial real estate [Annex V, Part Two, point 173(a), of Commission Implementing Regulation (EU) No 680/2014]. The sum of the amounts indicated for collateral on this line should be capped at the gross carrying amount of the corresponding exposure. Collateral – of which value above the cap: the difference between the fair value of the collateral and the capped value of the collateral should be published on this line [institutions should not apply Annex V, Part Two, point 239, of Commission Implementing Regulation (EU) No 680/2014 for the calculation of the fair value of the collateral]. Of which real estate: the difference between the fair value and the capped value of the part of the collateral constituted by residential or commercial real estate [Annex V, Part Two, point 173(a), of Commission Implementing Regulation (EU) No 680/2014]. Received financial guarantees: as defined in Annex V, Part Two, point 114, of Commission Implementing Regulation (EU) No 680/2014. Cumulative off-balance sheet exit: see the definition in Template 4 "Performing and non-performing exposures and corresponding provisions".

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 29 Annex IV – Reporting templates: changes in NPL stock Template 8: Changes in the stock of non-performing loans and advances Objective: to present an overview of the movements (inflows and outflows) of non-performing loans and advances. Scope: the template applies to credit institutions that meet at least one of the importance criteria, as defined in paragraph 12, and whose gross NPL ratio is equal to or greater than 5%. Content: movements in the gross carrying amount of non-performing loans and advances during the period. Frequency: annual, in accordance with paragraph 15. Format: fixed. Explanation: institutions should explain the reasons for a high amount on the line "Exit due to other situations".

a b Gross Carrying Amount Cumulative Net Recoveries 1 Initial stock of non-performing loans and advances 2 Inflows into non-performing portfolios 3 Outflows from non-performing portfolios 4 Exit to performing portfolio 5 Exit due to partial or full repayment of the loan 6 Exit due to collateral liquidation 7 Exit due to collateral acquisition 8 Exit due to sale of instruments

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 30 9 Exit due to risk transfer 10 Exit due to off-balance sheet exit 11 Exit due to other situations 12 Exit due to reclassification as "held for sale" 13 Final stock of non-performing loans and advances Definitions Columns Gross carrying amount: see the definition in Template 1, "Credit quality of renegotiated exposures". Lines Initial stock of non-performing loans and advances: gross carrying amount of the non-performing loans and advances stock at the end of the last financial year. Inflows into non-performing portfolios: gross carrying amount of loans and advances that became non-performing during the period (since the end of the last financial year). Exit to performing portfolio: gross carrying amount of loans and advances that exited the non-performing status and became performing during the period (since the end of the last financial year). Exit due to partial or full repayment of the loan: reduction in the gross carrying amount of non-performing loans and advances due to cash payments, namely regular capital repayments and any ad hoc repayments during the period (since the end of the last financial year). Exit due to collateral liquidation: the impact of the liquidation of any type of collateral on the gross carrying amount of an instrument should be indicated on this line. Exits due to other liquidation procedures, legal proceedings, and voluntary sale of assets are also to be included in this line. To avoid any ambiguity, please note that the gross carrying amount of the instrument should be indicated, as well as any corresponding potential partial off-balance sheet exit. Please also note that the exit amount does not necessarily correspond to the sum of cumulative net recoveries and partial off-balance sheet exits. Cumulative Net Recoveries: cash or cash-equivalent recoveries recovered due to collateral liquidations (net of respective collateral liquidation costs) must be indicated on this line. Exit due to collateral acquisition: the impact of the acquisition of any type of collateral on the gross carrying amount of an instrument should be indicated on this line. Acquisition refers to the acquisition of collateral other than cash by the credit institution or a group subsidiary which it has acquired ownership of and has not yet sold to a third party. Asset-for-debt swaps, voluntary debt forgiveness, and debt-for-equity swaps must also be included in this category. To avoid any ambiguity, please note that the gross carrying amount of the instrument should be indicated, as well as any corresponding potential partial off-balance sheet exit. Please also note that the exit amount does not necessarily correspond to the sum of cumulative net recoveries and partial off-balance sheet exits.

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 31 Cumulative Net Recoveries: the initial recognition of the fair value of the collateral in the bank's balance sheet at the time of acquisition should be indicated on this line. Cash or cash-equivalent recoveries recovered in the context of collateral acquisition net of costs should not be included in this line, but should be indicated on the line "Exit due to partial or full repayment of the loan". Exits due to sale of instruments: total balance sheet variations resulting from loans and advances sold to other institutions, excluding intragroup transactions. To avoid any ambiguity, please note that the gross carrying amount of the loans and advances sold must be published (including any potential partial off-balance sheet exit), and not its valuation or price at the time of the transaction. Please also note that the exit amount does not necessarily correspond to the sum of cumulative net recoveries and partial off-balance sheet exits. Cumulative Net Recoveries: cash or cash-equivalent recoveries recovered in the context of the sale of loans and advances, net of selling costs, are included in this line. Exit due to risk transfers: gross reduction of non-performing loans and advances due to securitization or other risk transfers entitling to de-recognition from the balance sheet. Please also note that the exit amount does not necessarily correspond to the sum of cumulative net recoveries and partial off-balance sheet exits. Cumulative Net Recoveries: cash or cash-equivalent recoveries recovered in the context of exits related to significant risk transfers must be indicated on this line. Exit due to off-balance sheet exits: total or partial off-balance sheet exits of all loans and advances recorded during the reference period. An off-balance sheet exit (total or partial) constitutes a de-recognition event. Therefore, the gross carrying amount of loans and advances is reduced by the amount of off-balance sheet exits. To avoid any ambiguity, please note that this line describes the changes in the gross carrying amount of loans and advances, and partial off-balance sheet exits that have already been included in previous lines (e.g., the associated sale of loans and advances, collateral liquidation, collateral acquisition, or significant risk transfer) should not be included in this line. Furthermore, debt forgiveness in the context of renegotiation measures, i.e., off-balance sheet exits where the amount of the remaining debt owed by the borrower has been cancelled (the bank loses the right to legal recovery), must also be included in this category. Exit due to reclassification as "held for sale": reductions in the carrying value of non-performing loans and advances due to their reclassification as instruments held for sale.

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 32 Exit due to other situations: any other reduction in the carrying value of loans and advances not covered by the events mentioned above should be included in this line. These adjustments may include, for example, exchange rates, other closing actions, reclassifications between asset categories, etc. When the amount of this category is high, institutions are expected to provide details in the text box located to the right of the template and titled "Notes on inflows/outflows to/from NPL portfolios".

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 33 Annex V – Reporting templates: foreclosed assets Template 9: Collateral obtained by acquisition and execution process Objective: to present an overview of foreclosed assets resulting from non-performing exposures. Scope: the template applies to all credit institutions, as defined in paragraph 6. Content: information on instruments that have been cancelled in exchange for collateral obtained by acquisition and on the value of collateral obtained by acquisition. Frequency: semi-annual or annual in accordance with paragraph 15. Format: fixed. Explanation: institutions should explain the origins of any significant changes in amounts compared to the previous publication period.

a b Collateral obtained by acquisition Value at initial recognition Cumulative negative changes 1 Tangible fixed assets (TFA) 2 Other than TFA 3 Residential real estate 4 Commercial real estate 5 Movable assets (car, shipment, etc.)

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 34 6 Equity instruments and debt securities 7 Other 8 Total Definitions Columns Value at initial recognition: the gross carrying amount of the collateral obtained by acquisition at the time of initial recognition in the institution's balance sheet should be indicated in this column. Cumulative negative changes: cumulative impairments or cumulative negative changes in the value of the initial recognition of the collateral obtained by acquisition, in the manner described above. Please note that cumulative negative changes due to depreciation in the case of TFA and real estate investments, where applicable, should also be included. Lines Collateral obtained by acquisition, classified as TFA: the stock of collateral obtained by acquisition that remains recognized in the balance sheet at the reference date of the publication and is classified as TFA should be indicated on this line. Collateral obtained by acquisition, other than those classified as TFA: the stock of collateral obtained by acquisition that remains recognized in the balance sheet at the reference date of the publication and is not classified as TFA must be automatically indicated on this line. The total stock will be calculated taking into account the initial stock (since the end of the last financial year) and the cash inflows and outflows occurring during the publication period (since the end of the last financial year). Collateral obtained by acquisition (excluding TFA) is published in the lines by type of collateral. Residential real estate: collateral obtained by acquisition of residential real estate (e.g., houses, apartments, etc.) or real estate that may be used as such in the future (e.g., unfinished housing, etc.). Commercial real estate: collateral obtained by acquisition of commercial or industrial property that can be used for commercial and/or investment purposes, or any real estate that is not residential property, as described above. Land (non-agricultural and agricultural) should also be included in this category. Movable assets: collateral obtained by acquisition of assets other than real estate should be indicated on this line. Equity and debt securities: collateral obtained by acquisition of equity or debt securities should be indicated on this line. Other collateral: collateral obtained by acquisition not falling into the categories of the other lines. If the amount indicated on this line is relatively significant, institutions are invited to provide additional information in the free text box located on the right side of the template and titled "Notes on other collateral obtained by acquisition".

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 35 Template 10: Collateral obtained by acquisition and execution process – breakdown by vintage Objective: to present an overview of collateral obtained by acquisition (by type and by date since the date of acquisition) Scope: the template applies to credit institutions that meet at least one of the importance criteria, as defined in paragraph 12, and whose gross NPL ratio is equal to or greater than 5%. Content: information on instruments that have been cancelled in exchange for collateral obtained by acquisition and on the value of collateral obtained by acquisition. Frequency: annual, in accordance with paragraph 15 Format: fixed. Explanation: institutions should explain the origins of any significant changes in amounts compared to the previous publication period.

a b c d e f g h i j k l Reduction of the claim balance Total collateral obtained by acquisition Acquisition ≤ 2 years Acquisition > 2 years ≤ 5 years Acquisition > 5 years Of which non-current assets held for sale Gross Carrying Amount Cumulative Negative Changes Value at Initial Recognition Cumulative Negative Changes Value at Initial Recognition Cumulative Negative Changes Value at Initial Recognition Cumulative Negative Changes Value at Initial Recognition Cumulative Negative Changes 1 Collateral obtained by acquisition, classified as TFA 2 Collateral obtained by acquisition, other than those classified as TFA 3 Residential real estate 4 Commercial real estate 5 Movable assets (car, shipment, etc.) 6 Equity instruments and debt securities 7 Other 8 Total

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 36 Definitions Columns Gross carrying amount: the gross amount of the claim that was cancelled in exchange for the collateral obtained by acquisition, at the exact moment of the exchange, through judicial procedures or a bilateral agreement. The gross amount should be calculated as the gross reduction of the instrument balance, without taking into account any potential provisions. To avoid any ambiguity, balance sheet reductions due to other reasons (e.g., cash recoveries) should not be included in this column. Cumulative impairment: the cumulative impairment of the instrument that was cancelled in exchange for the collateral obtained by acquisition, at the exact moment of the exchange, should be indicated in this column. The corresponding information should be indicated with a negative sign. Value at initial recognition: see the definition in Template 9 "Collateral obtained by acquisition and execution process". Cumulative negative changes: see the definition in Template 9 "Collateral obtained by acquisition and execution process".

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 37 Acquisition ≤ 2 years: "value at initial recognition" and "cumulative negative changes" of collateral obtained by acquisition and recognized in the balance sheet for 2 years or less at the reference date of the publication. Acquisition > 2 years ≤ 5 years: "value at initial recognition" and "cumulative negative changes" of collateral obtained by acquisition and recognized in the balance sheet for more than 2 years and up to 5 years at the reference date of the publication. Acquisition > 5 years: "value at initial recognition" and "cumulative negative changes" of collateral obtained by acquisition and recognized in the balance sheet for more than 5 years at the reference date of the publication. Of which non-current assets held for sale: the "initial value" and "cumulative negative changes" of collateral obtained by acquisition that are classified as non-current assets held for sale should be included in these columns. If this classification is not relevant according to the accounting standard applicable to the credit institution, it is not necessary to communicate this information. Lines Collateral obtained by acquisition classified as TFA: see the definition in Template 9 "Collateral obtained by acquisition and execution process". Residential real estate: see the definition in Template 9 "Collateral obtained by acquisition and execution process". Commercial real estate: see the definition in Template 9 "Collateral obtained by acquisition and execution process". Movable assets: see the definition in Template 9 "Collateral obtained by acquisition and execution process". Equity and debt securities: see the definition in Template 9 "Collateral obtained by acquisition and execution process". Other collateral: see the definition in Template 9 "Collateral obtained by acquisition and execution process".

FINAL REPORT ON THE DRAFT GUIDELINES ON THE PUBLICATION OF NON-PERFORMING AND RENEGOTIATED EXPOSURES 38