capital requirements directive pillar 3 disclosures...pillar 3 disclosures . page 8 of 35 of the...

Pillar 3 Disclosures

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Hewlett-Packard International Bank Plc Hewlett-Packard International Bank

Holding Limited

Capital Requirements Directive Pillar 3 Disclosures

Code of Conduct for Basel II Pillar 3 Disclosures

Medium Enterprises

October 2017

http://www.hpe.com/


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CONTENTS Page SECTION 1: OVERVIEW 3 SECTION 2: OWN FUNDS AND CAPITAL MANAGEMENT 5 SECTION 3: RISK MANAGEMENT 9 SECTION 4: CREDIT RISK 12 SECTION 5: LIQUIDITY RISK 20 SECTION 6: MARKET RISK

23

SECTION 7: RESIDUAL RISK 25 SECTION 8: CAPITAL RISK 26 SECTION 9: CONCENTRATION RISK 27 SECTION 10: OPERATIONAL RISK

27

SECTION 11: STRATEGIC/BUSINESS RISK 29 SECTION 12: OWNERSHIP RISK

29

SECTION 13: GOVERNANCE RISK 29 SECTION 14: REGULATORY COMPLIANCE RISK SECTION 15: SECURITISATION

31

31 SECTION 16: ASSET ENCUMBRANCE 31 SECTION 17: LEVERAGE

31

SECTION 18: REMUNERATION

32

SECTION 19: APPENDICES

36

APPENDIX 1 OWN FUNDS DISCLOSURE 37 APPENDIX 2 OWN FUNDS AND AUDITED FINANCIAL STATEMENT RECONCILATION

40

APPENDIX 3 CAPITAL INSTRUMENTS DISCLOSURES APPENDIX 4 LEVERAGE RATIO DISCLOSURE TEMPLATE APPENDIX 5 COUNTERCYCLICAL CAPITAL BUFFER DISCLOSURE TEMPLATE APPENDIX 6 LIQUIDITY COVERAGE RATIO DISCLOSURE TEMPLATE

41 42 44 45


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Section 1: Overview 1.1 Business Overview Hewlett-Packard International Bank (“HPIB” or the “Bank”) was incorporated on 1 July 1998 and holds a banking licence in Ireland. The Bank is a subsidiary of Hewlett-Packard International Bank Holding Limited (HPIBHL). The ultimate holding company of the Bank is Hewlett Packard Enterprise Company (HPE), incorporated in the United States of America. The primary activity of the Bank is the provision of leases and loan facilities, rentals and asset management capabilities to clients to finance the acquisition of HPE or third party products. In addition, the Bank provides back office facilities for other HPE entities. In June 2016 the Bank established a branch in Italy and purchased the lease portfolio of the Italian branch of Hewlett Packard Financial Services Canada Company. The Italian portfolio was subsequent sold on the 1st July 2017. Subsequent to year end, the Bank has initiated the process to de-register the branch. The only activity for HPIBHL is its investment in HPIB. 1.2 Capital Requirements Directive The Capital Requirements Directive (CRD IV) and the Capital Requirements Regulation (CRR) were published on 27 June 2013 (Collectively known as CRD IV”). The CRR had direct effect in EU member states and CRD IV was required to be implemented through national legislation in EU member states by 31 December 2013. The CRD IV legislation is being implemented on a phased basis from 1 January 2014, with full implementation by 2019. CRD and CRR effectively transposed the Basel III accord into law. Prior to January 2014, the Bank was subject to the capital requirements of Basel II. Effective 1 January 2014 Basel III was implemented by HPIB. The Basel framework consists of three “pillars”. The three pillars are designed to promote market discipline through the disclosure of key information about risk exposures and risk management processes.


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Pillar 1 Sets out the minimum capital requirement firms are required to meet for credit, market and operational risk. Pillar 2 Requires banks to have an internal capital adequacy assessment process and requires that banking supervisors evaluate each bank’s overall risk profile as well as its risk management and internal control processes. Pillar 3 Encourages market discipline through disclosure requirements which allow market participants to assess the risk and capital profiles of banks. The Basel III Pillar 3 disclosure requirements are specified in Part 8 of the Directive EU575/2013. 1.3 Disclosure Policy: Basis and Frequency of Disclosure HPIB is not consolidated into HPIBHL for accounting purposes. It is subject to consolidated regulatory supervision by the Central Bank of Ireland. There are no practical or legal impediments to the prompt transfer of capital between HPIBHL and HPIB. In line with CRR requirements the figures in the tables below relate to the consolidated HPIBHL position. Due to its size HPIB comprises almost 100% of the total capital requirements of the consolidated group. HPIBHL’s sole purpose is to act as a holding company for the Bank. Therefore to reflect the risk profile of the Bank the qualitative information below has been presented on an individual basis. Where possible, information contained in this disclosure document is for the year ended 31st October 2017. However some disclosures are reported based on data gathered for the quarterly submissions to the Central Bank of Ireland as at 31st December 2017. The disclosures will be reviewed and published on an annual basis. 1.4 Location and Verification The disclosures are published on the HPE corporate website: https://www.hpe.com/ie/en/services/hpe-financial-services/legal.html The information contained in this disclosure has not and is not required to be audited by the Bank’s external auditors and does not constitute any form of financial statement.

https://www.hpe.com/ie/en/services/hpe-financial-services/legal.html


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These disclosures are subject to internal review and validation prior to publication. Section 2: Own Funds and Capital Management 2.1 Capital Resources Historically HPIB has been, and continues to be, predominantly financed by capital (comprising share capital, capital contribution and reserves). The table below sets out the Own Funds for both HPIB and HPIBHL. Please refer to appendix 1 for EBA uniform own funds disclosure template and for a reconciliation of the own funds to the financial statements which are available on the following website. https://www.hpe.com/ie/en/services/hpe-financial-services/legal.html Year End Own Funds 31st October 2017

HPIB HPIBHL31-Oct-17 31-Oct-17

US$'000 US$'000Tier 1 CapitalShare Capital 10,036 1 Capital Contribution/Other Reserves 1,654,222 1,664,257 Revenue Reserves 1,217,609 1,217,644 Add back loss on Cash Flow hedges 17,443 17,443

Total Tier 1 Capital 2,899,310 2,899,345

Total Capital 2,899,310 2,899,345



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Own Funds at 31st December 2017

2.2 Minimum Capital Requirements The following table shows the overall Pillar 1 minimum capital requirement and risk weighted assets under the Standardised Approach to Credit, Market and Operational Risk. Own Funds Capital Requirements at 31st December 2017

HPIB HPIBHL31-Dec-17 31-Dec-17

US$'000 US$'000Tier 1 CapitalShare Capital 10,036 1 Capital Contribution/Other Reserves 1,654,222 1,664,257 Revenue Reserves 1,217,609 1,217,644 Add back loss on Cash Flow hedges 17,443 17,443 Deduction of specific provision created in year (554) (554) Total Tier 1 Capital 2,898,756 2,898,790

Total Capital 2,898,756 2,898,790

HPIB HPIB HPIBHL HPIBHL

8% Own Funds Capital Requirement

Risk Weighted

Assets

8% Own Funds Capital Requirement

Risk Weighted

AssetsUS$'000 US$'000 US$'000 US$'000

Central governments or central banks 5,641 70,514 5,641 70,514 Regional governments or local authorities 229 2,858 229 2,858 Public sector entities 257 3,208 257 3,208 Institutions 15,674 195,920 15,674 195,922 Corporates 105,893 1,323,660 105,893 1,323,660 Retail 10,365 129,564 10,365 129,564 Exposures in default 10,429 130,368 10,429 130,368 Collective investments undertakings (CIU) 7,541 94,261 7,541 94,261 Other items 135,914 1,698,926 135,914 1,698,926 Total Own funds Capital Requirement for Credit and Counterparty Credit Risk 291,942 3,649,278 291,942 3,649,280 Total Own funds Capital Requirement for Operational Risk 106,804 1,335,051 106,804 1,335,051 Total Own funds Capital Requirement for Credit Valuation Adjustment 1,345 16,807 1,345 16,807

Total Own funds Capital Requirement for Market Risk 5,696 71,197 5,695 71,187

Total Pillar 1 Capital Requirements 405,787 5,072,333 405,786 5,072,325


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2.3 Capital Buffers As per article 440 of the CRR, the Bank complied with implementing the CRD IV Capital Conservation Buffer and the Institution Specific Countercyclical Buffer from January 2016 on a phased basis. The capital conservation buffer is designed to ensure that banks build up capital buffers outside periods of stress which can be drawn down as losses are incurred. The requirement is based on simple capital conservation rules designed to avoid breaches of minimum capital requirements The institution specific countercyclical capital buffer is calculated as the weighted average of the buffers in effect in the jurisdictions the Bank has a credit exposure. It is implemented as an extension of the capital conservation buffer. It consists entirely of Common Equity Tier 1 capital and, if the minimum buffer requirements are breached, capital distribution constraints will be imposed on the bank. Consistent with the capital conservation buffer, the constraints imposed relate only to capital distributions, not the operation of the bank. Please refer to appendix 3 for EBA uniform countercyclical capital buffer disclosure which is available on the following website. https://www.hpe.com/ie/en/services/hpe-financial-services/legal.html 2.4 Summary of HPIB’s approach to assessing the adequacy of internal capital to support current and future activities HPIB has in place an internal capital adequacy assessment process (“ICAAP”). The purpose of which is to inform management and the Board of the ongoing assessment of HPIB’s risks, how it identifies, measures, manages, mitigates, monitors and reports those risks and how much current and future capital is necessary having considered strategic plans and any mitigating factors. The ICAAP is integrated into the annual Strategic and Business Planning process. Annual Strategic Planning Process On an annual basis, HPIB sets its strategic plan by identifying key strategic initiatives and aligning to the goals of its parent company. The strategic plan takes into account the competitive landscape and identifies strengths, weaknesses, opportunities and threats to its business. A key element



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of the strategic plan is the incorporation of a financial plan which is based on the implementation of strategic initiatives. The financial plan is drafted by the Financial Planning and Analysis department within the HPIB Finance function and is prepared with a three year horizon. The key elements to the plan are:

• Base run-outs – these reports provide details of all existing deals booked in HPIB’s systems and how they run-off in the P&L and balance sheet over future years. The reports are available by country and currency.

• New inceptions – the planning model streams out the P&L and balance sheet for all new deals to be booked in future years. These are also prepared at a currency/country level. A detailed planning and consultation process takes place to ensure that valid assumptions are taken with regard to new business written. Growth targets are determined and target margins are set out in conjunction with the Pricing department. Assumptions are also made regarding foreign exchange (“FX”) and interest rates with guidance from HPIB’s Treasury department.

• Asset Management targets are mainly based on lease expiration values, together with customer specific data. These targets are set at a country level together with the Asset Management Leaders.

• Bad debt assumptions are discussed with the Credit department and are set as a percentage of portfolio assets.

• Inputs for interest income and expense (based on balance sheet cash / debt level assumptions) and FX gains and losses are obtained from the Treasury department.

• Administration expenses are prepared for each function in consultation with the function leader.

• Taxation charge is based on effective taxation rates.

Once all inputs have been obtained and the income statement and statement of financial position (SOFP) plans are prepared, these are reviewed by HPIB senior management prior to completion and approval by the HPIB Board. Action plans are put in place to ensure HPIB meets its financial plan and performance is reviewed on an ongoing basis by senior management and the Board. The ICAAP and ILAAP are aligned to the strategic plan to ensure sufficient capital and liquidity are available to meet the projected balance sheet growth.


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HPIB ensures that there is sufficient oversight of capital and liquidity through its risk management processes. HPIB has identified the following material risks to its business:

1. Credit Risk 2. Liquidity Risk 3. Market Risk (including FX, Interest Rate Risk & Treasury counterparty

risk) 4. Residual Risk 5. Capital Risk 6. Concentration Risk 7. Operational Risk 8. Business/Strategic Risk 9. Ownership Risk 10. Governance Risk 11. Regulatory Compliance Risk

These risk categories take into account the risks associated with the successful implementation of appropriate go to market strategies and processes to support HPIB’s strategic objectives. This includes ensuring strong alignment with HPE and HP Inc to support the financing of their equipment and solutions, the risks associated with Brexit, increased risk associated with dealing with channel intermediaries and cyber security risks. The HPIB governance structure ensures that the HPIB Board of Directors (the “Board”) and its Sub-committees identify, monitor and review each of the above risks. Risks are managed on a day to day basis through its risk management and risk appetite frameworks and through the implementation of HPIB’s policies and procedures and oversight is provided by its management committees. This oversight includes an assessment of capital adequacy to ensure that both working capital and regulatory capital requirements are met and an assessment as to the adequacy of liquidity within HPIB. Section 3: Risk Management HPIB is firmly committed to the management of risk, recognising that sound internal risk management is essential to its prudent operation. It has put in place a risk management framework that is linked to business strategy through the risk appetite framework and risk appetite statement. This framework has been approved by the HPIB Board and is supported by a robust risk governance structure and a culture of effective Risk Management as well as established risk management processes and


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policies to ensure all risks are appropriately and adequately identified, measured, monitored and managed within the Bank’s risk appetite. The Risk management framework is the set of components that provide the foundations and organisational arrangements for designing, implementing, monitoring, reviewing and continually improving risk management throughout the Bank and consists of three key elements:

• Risk Governance, • Risk Appetite and • Risk Management Processes

The Framework applies to all risks (risk profile) and is underpinned by a strong risk culture.

HPIB’s overall system of governance adopts a ‘3 lines of defence’ approach i.e.

• 1st line – business functions have primary responsibility for day-to-day activities; • 2nd line – oversight from control functions including risk management function; • 3rd line – independent review and assurance from internal audit.

Risk Governance

Risk Appetite

Risk Management processes

Risk Profile

Risk Culture


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The overall responsibility for governance and oversight of HPIB’s risk management and control frameworks rests with its Board of Directors (“Board”). The Board has created two sub-committees (Risk Committee and Audit & Compliance Committee) in order to ensure effective governance. The Risk Committee ensures that the Board obtains sufficient information to identify, monitor and review each of the material risks to which HPIB is or might be exposed and is responsible for overseeing the activities of the risk management function. HPIB’s appetite for risk is expressed through limits set in its Board approved Risk Appetite statement. These limits are closely monitored with regular reporting provided by the risk function to the Risk committee and the Board. Day to day risk management responsibilities have been delegated by the Board to senior management through the HPIB schedule of authorisation (“SOA”) and there are a number of Management Committees that report into the Board sub-committees on a quarterly basis:

• Compliance Committee • Credit, Pricing & Residual Value Committee • Operational Risk Committee

1st Line of Defense 2nd Line of Defense 3rd Line of Defense

Function Manage

ment

Internal Control

Internal Audit

Risk Management

Compliance

Risk Monitoring

Quality Control

Senior Management

HPIB Board

External Auditor

Regulator

Risk Committee Audit Committee


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• Asset and Liability Committee HPIB’s Chief Risk Officer (“CRO”) holds responsibility for the risk management function and for maintaining and monitoring the effectiveness of its risk management framework. HPIB continues to ensure that the CRO has sufficient authority to influence proposals and challenge decisions which affect its risk profile. The Bank’s risk management function also supports the Risk Committee in its activities and responsibilities.

Section 4: Credit Risk HPIB has adopted the standardised approach to Credit Risk under Pillar 1 of the CRR The core values and main procedures governing the provision of credit are laid down in the HPIB Credit policy document. This has been approved by the Board and is reviewed regularly. The Bank's credit risk management system operates through a hierarchy of exposure discretions. All exposures over a certain level require the approval of the Management Risk Committee, which is composed of senior management within the Bank. Exposures below Management Risk Committee's discretion are approved by the credit risk function in accordance with the Bank’s Schedule of Authority document. A credit review is performed on each new business customer. The Bank uses a risk rating system to evaluate the financial and repayment risk of proposed advances and to ensure appropriate returns for assuming risks. Credit lines are approved for customers with strong credit ratings, whether this is based on external ratings or internal risk rating scale. An annual financial review is conducted for all credit line customers with an exposure above a $1m threshold. The largest exposures are reviewed each quarter by the Board of Directors of the Bank. The quality of lending is reviewed regularly by the Head of Credit of the Bank, the objective of which is to provide an accurate measure of the underlying quality of HPIB’s loan portfolio, to facilitate early identification of deterioration in quality and to enable management to focus on problem loans as soon as weaknesses begin to emerge. This review includes a review of the aged debtors listing, historic write off experience and an analysis of the lease portfolio by risk category. The table below shows the gross maximum exposure to credit risk for the components of the balance sheet including derivatives, including the amount of financed assets that are considered to be impaired (impaired assets are fully


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provided against). The main considerations for the loan impairment assessment include whether any payments of principal or interest are overdue by more than 90 days or whether there are any known difficulties in the cash flows of counterparties, credit rating downgrades, or infringement of the original terms of the contract. Given the intricacies of the leasing business, past due payments of up to 90 days are not uncommon and are not generally considered a default. Typically, payment delays occur due to restructures, novations and other administrative reasons. Hence, management focus is on the >90 days past due data and this is reported below. In the event of a default the Bank reserves the right to recover the financed assets. Gross maximum exposure at 31 October 2017

Where financial instruments are recorded at fair value, the amounts shown above represent the current credit risk exposure but not the maximum risk exposure that could arise in the future as a result in changes in value. All figures are based on financial year end 31 October 2017 and 31 October 2016 balances.

Gross maximum exposure to credit risk 2017 Investment Non Investment Impaired maximum Grade Grade exposure

2017 2017 2017 2017US$’000 US$’000 US$’000 US$’000

Cash and balances with Central Banks 95,493 - - 95,493 Loans and advances to banks 653,064 - - 653,064 Lease assets 1,883,537 1,479,787 2,606 3,365,930 Derivative financial instruments 88,975 - - 88,975 Amounts due from fellow subsidiaries 104,221 - - 104,221

Total 2,825,290 1,479,787 2,606 4,307,683

Committed credit line - - - 9,931

Total credit risk exposure 2,825,290 1,479,787 2,606 4,317,614

The value of leases which would have been past due or impaired but have been restructured during the year is $12,400k (2015: $7,768k).There is no difference in the accounting treatment of these leases.

Gross maximum exposure to credit risk 2016 Investment Non Investment Impaired maximum Grade Grade exposure

2016 2016 2016 2016US$’000 US$’000 US$’000 US$’000

Cash and balances with Central Banks 6,646 - - 6,646 Loans and advances to banks 533,005 - - 533,005 Lease assets 1,828,400 1,215,965 3,211 3,047,576 Derivative financial instruments 273,723 - - 273,723 Amounts due from fellow subsidiaries 186,846 - - 186,846

Total 2,828,620 1,215,965 3,211 4,047,796

Committed credit line - - - 950

Total credit risk exposure 2,828,620 1,215,965 3,211 4,048,746

2017 2016Specific provision for bad debts US$’000 US$’000Impaired 2,606 3,211 Greater than 180 days provision 2,113 2,251

4,719 5,462


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Impaired exposure by industry type

Impaired exposure by geographical area

Past due exposure by industry type

31 October 2017 US$'000

Construction 9 Manufacturing 1,150 Mining 2 Retail Trade 19 Services 811 Transportation, Communcations, Electric, Gas and S 12 Wholesale Trade 602

2,606

31 October 2017 US$'000

France 400 Israel 67 Italy 36 Spain 1,124 Switzerland 323 United Kingdom 656 2,606

31 October 2017 US$'000

Accommodation and food service activities 1 Administrative and support service activities 568 Agriculture, forestry and fishing 5 Arts, entertainment and recreation 79 Construction 1 Credit institutions 2,881 Electricity, gas, steam and air conditioning supply 359 General governments 3,420 Households 115 Human health services and social work activities 210 Information and communication 2,888 Manufacturing 27,757 Mining and quarrying 0 Other financial corporations 983 Professional, scientific and technical activities 6,653 Real estate activities 46 Transport and storage 1,812 Wholesale and retail trade 776

48,554


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Past due exposure by geographical area

31 October 2017 US$'000

Ireland 437 Austria 148 Belgium 750 Czech Republic 1,456 Denmark 188 Finland 467 France 2,726 Germany 5,388 Israel 5,876 Luxembourg 59 Netherlands 3,063 Norway 19 Portugal 306 Romania 1,479 Slovenia 733 Spain 6,821 Sweden 2,117 Switzerland 1,546 United Kingdom 14,975

48,554


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Concentrations of credit risk HPIBHL’s financial assets can be analysed by the following geographical regions: Financial assets at 31 October 2017

Total lease/financing exposure by industry type

Gross Gross

maximum maximum exposure exposure

2017 2016US$’000 US$’000

United Kingdom 1,005,554 972,636 Germany 791,673 697,583 Ireland 611,757 378,000 France 388,415 372,858 Spain 291,942 246,369 Netherlands 273,139 291,196 Sweden 206,989 185,500 Luxembourg 126,869 115,993 Switzerland 95,467 78,386 United States of America 88,975 273,723 Portugal 63,656 48,022 Israel 58,569 38,486 Finland 50,112 50,424 Norway 48,099 29,610 Denmark 41,348 41,603 Belgium 39,227 36,240 Italy 2,863 63,492 Other countries 117,456 88,320 Total 4,302,110 4,008,441

US$'000 US$'000 US$'000

31 October 2017 Tangible fixed assets

Finance lease & loan receivables Total

Agriculture 1,696 1,022 2,718 Construction 14,399 33,203 47,602 Finance, Insurance, Real Estate 544,643 604,172 1,148,815 Manufacturing 671,830 617,115 1,288,945 Mining 1,600 841 2,440 Public Admin 76,305 63,022 139,328 Wholesale/Retail Trade 77,303 106,692 183,995 Services 41,052 132,694 173,746 Transportation, Communcations, Energy 118,084 234,836 352,920

1,546,913 1,793,596 3,340,508


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The following table shows HPIBHL’s gross exposure before taking into account credit risk mitigation but is reported net of appropriate impairment provisions.

Exposure by geographical area and exposure class 31 December 2017 (US$000)

HPIBHL Minimum related capital requirements by exposure class 31 December 2017

Central Government/C

entral BanksRegional

Government Admin Bodies Institution

Collective Investments

Undertakings Corporate Retail Other Default Total Ireland 37,683 - 236 2,432 403,450 13,302 8,816 32,376 293 498,588 Austria 1,416 - - 29 - 9,953 33 23,178 96 34,705 Belgium 3,321 232 1,335 1,451 - 21,947 1,703 14,803 1,042 45,834 Bulgaria - - - - - - - 4 - 4 Czech Republic 5,242 - - 6,173 - 2,453 816 22,919 8,720 46,323 Denmark 1,863 - - 3,271 - 25,281 3,458 10,397 192 44,462 Finland 275 - - 483 - 26,921 1,183 25,061 176 54,099 France 7,705 1,399 756 11,925 - 133,279 24,994 220,660 5,102 405,820 Germany 7,041 5,200 463 41,228 - 204,600 16,403 536,245 14,063 825,243 Iceland 2,259 - 349 - - 13,671 - 5,174 - 21,451 Israel 185 - 746 289 - 33,742 11,504 7,617 5,706 59,789 Italy 2 - - 618 - - - 5,568 - 6,187 Luxembourg 572 - - 74 63,043 632 0 2,718 62 67,102 Netherlands 5,665 6,539 722 1,789 - 190,243 14,426 58,428 2,042 279,854 Norway 584 - 1,656 1,237 - 15,775 2,870 24,383 631 47,136 Poland - - - - - - - 3 - 3 Portugal 2,808 1 - 310 - 40,036 5,822 20,962 576 70,516 Romania 5,320 - - 46 - 13,340 3,053 10,988 1,725 34,474 Singapore - - - - - - - 30 - 30 Slovakia - - - - - - - 131 - 131 Slovenia 565 - - - - 3,763 997 1,987 1,008 8,319 Spain 177 229 476 4,835 - 141,665 57,927 87,671 6,425 299,404 Sweden 10,439 - 1 1,281 - 66,350 6,536 125,479 8,673 218,760 Switzerland 3,729 690 403 1,947 - 17,166 2,849 72,541 1,071 100,396 United Kingdom 31,264 - 5,005 163,023 - 393,201 61,066 388,627 29,307 1,071,494 United States of America - - - 239,530 4,810 - - 184 - 244,525 Other countries - - - - - 70 - 792 - 862 TOTAL 128,114 14,290 12,148 481,972 471,303 1,367,390 224,456 1,698,926 86,912 4,485,512

Standardised exposure classUS$'000

Central governments or central banks 5,641 Regional Government 229 Administrative bodies 257 Institutions 15,674 Collective investments undertakings 7,541 Corporate 105,893 International Organisations - Retail 10,365 Other items 135,914 Exposures in default 10,429 Total for standardised approach 291,942


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4.1 External Credit Assessment Institutions (ECAIs) HPIB has nominated Standard and Poors as its external credit assessment institution. Customers that do and do not have an external credit rating agency rating are allocated an internal credit rating. In line with the provisions of Article 12 and 136 of the CRR, the ratings are mapped to a Pillar 1 credit quality step, which in turn is mapped to a risk weight. The table below details the ECAI association with the Credit Quality Steps and the related Exposures. For completeness the exposures for default and unrated customers have also been included.

4.2 Portfolio and Specific Provisioning Policy HPIB maintains collective reserves for unspecified impairments in the lease portfolio and specific reserves for credit losses from identified customers. The collective bad debt reserve is based on a percentage of the lease portfolio assets. The percentage is reviewed on a quarterly basis and is based on several factors, which include:

• Historical performance • Portfolio risk profile • Competitive benchmarking

Specific bad debt reserves are established for identified loss exposures on leases or loans that have not yet been written-off within the lease accounting system. A write-off or specific reserve of billed accounts receivable is mandatory at 180 days past due, unless specific exceptions are granted by the relevant individuals identified with the HPIB Credit Policy and HPIB Schedule of Authorisation. A write-off or specific reserve may be warranted sooner if it is deemed that the

Exposure Values December 2017Credit Quality

Step 1Credit Quality

Step 2Credit Quality

Step 3

Credit Quality Step

4

Credit Quality Step

5

Credit Quality Step

6 Unrated TotalStandard & Poors Assesment US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000

Central governments or central banks 62,016 28,939 - - - - 37,160 128,114 Regional Government - - - - - - 14,290 14,290 Administrative bodies 652 - 3 - - - 11,493 12,148 Institutions 87,460 236,937 60,301 7,933 - - 89,341 481,972 CIU 471,303 - - - - - - 471,303 Corporate 1,687 36,176 13,538 1,019 8,718 - 1,306,252 1,367,390 International Organisations - - - - - - - - Retail - - - - - - 224,456 224,456 Other items 259 209,095 13,958 5,488 4 16 1,470,107 1,698,926 Exposures in default 200 2,213 53 198 - - 84,248 86,912 Total exposures 623,576 513,359 87,853 14,638 8,722 16 3,237,348 4,485,512


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account is not collectible. The remaining net investment is to be reviewed on a deal by deal basis with final reserve decisions based on credit quality and the status of collection efforts.

Movement in Provision for Impairments at year end 31 October 2017

Included in the impairment figure for 2016 is $2 million related to an impairment of goodwill recognised on acquisition of Italian portfolio of HPFS Canada Company during 2016. As the Bank discontinued its finance lease offering in Italy, the goodwill was considered impaired. Impairment Provision by country at year end 31 October 2017

Provision for impairments 2017 2017 2017 2016US$’000 US$’000 US$’000 US$’000

Specific Collective Total Total

At 1 November 7,492 15,794 23,286 26,272 Provisions acquired during period - - Provisions created during period 10,814 9,132 19,946 19,817 Provisions released during period (13,751) (5,587) (19,338) (21,569) Adjustments including FX 164 1,362 1,526 (1,234)

At 31 October 4,719 20,701 25,420 23,286

The charge against profits is analysed as follows:Provisions created during period 10,814 9,132 19,946 19,817 Provisions released during period (13,750) (5,587) (19,337) (21,569) Write-offs 13,481 - 13,481 7,812 Recoveries (2,731) - (2,731) (709)

Charge against profits 7,814 3,545 11,359 5,351

31 October 2017 $000

Ireland 268 France 2,776 Germany 6,134 Israel 1,230 Netherlands 1,204 Spain 2,911 Sweden 1,215 United Kingdom 6,555 Others 3,127 25,420


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Section 5: Liquidity Risk

The liquidity risk management process is designed to ensure that the Bank is able to honour all of its financial commitments as they fall due. As assets are financed primarily by capital resources, liquidity is monitored by the Treasury, Treasury Control and Risk departments. The liquidity position of the Bank is reviewed by the Board of Directors and ALCO on a quarterly basis.

HPIB has in place an Internal Liquidity Adequacy Assessment Process (ILAAP).

The purpose of which is the identification, measure, management and monitoring of internal liquidity in order to ensure it maintains adequate levels of liquidity.

The Bank complies with the Liquidity Coverage Ratio (LCR) as specified by the

Commission Delegated Regulation as a supplement to Regulation 575/2013. As per the CRR and EBA guidelines, the Bank began reporting the LCR ratio

calculation template on a monthly basis to the Central Bank of Ireland. As at the 31st October 2017 the Bank’s reported LCR was 327.91%. This is above the 2017 regulatory requirement of 100% for HPIB.

Please refer to appendix 4 for the LCR disclosure which is available on the

following website. https://www.hpe.com/ie/en/services/hpe-financial-services/legal.html The Bank adheres to the Additional Liquidity Monitoring Metrics reporting

requirements to the Central Bank of Ireland. These metrics support the Bank’s analysis of its liquidity position.

As at 31 October 2017, the Bank also ensured its liquidity ratios met the

requirements of the Central Bank or Ireland’s “Management of Liquidity Risk” guidance note. These requirements cease to apply from 1 January 2018. In addition, the Bank maintains a statutory deposit with the Central Bank of Ireland.



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The liquidity ratio included in the prudential returns at the 31 October 2017 was as follows:

At the 31st October 2017 the Bank had third party financing requirements of approximately US$789 million. This debt may vary depending on the requirements of the business. The debt is drawn from the Bank’s three debt programmes – a European Certificate of Deposit programme with a maximum value of US $500 million, an Interbank programme with uncommitted facilities of US $504 million and a Corporate Depositing programme. The Bank utilises inter-company funding from HPE for certain categories of business. At year end, the level of inter-company funding amounted to US$519 million (2016: US$466 million). The main component of the Bank’s financing, totalling US$2.9 billion, is provided by way of capital contributions from HPE and the Bank's retained earnings. HPE is committed to providing for the Bank's ongoing financing as required.

2017 2016 Regulator Requirements% % %

31 October0 - 8 days 438 328 1008 - 30 days 326 301 90


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The following table shows an analysis of assets and liabilities according to when they are expected to mature or be settled:

Consolidated liquidity analysis 2017

Not more than 3 months More than 3 months but not

more than 6 months More than 6 months but not

more than 1 year More than 1 year but not

more than 5 years

US$ '000 US$ '000 US$ '000 US$ '000AssetsCash and balances with Central Bank 95,493 - - - Loans and advances to banks 653,062 - - - Tangible fixed assets 209,733 196,029 355,835 784,545 Loans and advances to customers 189,824 178,163 324,757 1,074,930 Cash flow hedges 19,802 15,273 19,490 32,647 Derivatives at fair value 1,763 - - - Amounts due from fellow subsidiaries 104,221 - - - Total financial assets 1,273,898 389,465 700,082 1,892,122

LiabilitiesDeposits by banks 172,325 144,800 - - Deposit by customers (including debt securities in issue) 164,464 312,357 - - Cash flow hedges 1,602 11,639 7,866 50,175 Derivatives at fair value 3,707 - - - Amounts due to fellow subsidiaries 76,126 71,717 178,160 213,354 Total financial liabilities 418,224 540,513 186,026 263,529

Net liquidity surplus 855,674 (151,048) 514,056 1,628,593

More than 5 years Total US$ '000 US$ '000

AssetsCash and balances with Central Bank - 95,493 Loans and advances to banks - 653,062 Tangible fixed assets 771 1,546,913 Loans and advances to customers 25,922 1,793,596 Cash flow hedges - 87,212 Derivatives at fair value - 1,763 Amounts due from fellow subsidiaries - 104,221 Total financial assets 26,693 4,282,260

LiabilitiesDeposits by banks - 317,125 Deposit by customers (including debt securities in issue) - 476,821 Cash flow hedges - 71,282 Derivatives at fair value - 3,707 Amounts due to fellow subsidiaries - 539,357 Total financial liabilities - 1,408,292

Net liquidity surplus 26,693 2,873,968


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Section 6: Market Risk Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such as interest rates and foreign exchange rates.

6.1 FX Risk Currency risk is the risk that the value of an asset or a liability will fluctuate due to changes in foreign exchange rates. The table below shows the transactional currency exposure in the banking book; in other words those non-structural exposures that give risk to the net currency gains and losses recognised in the income statement. Such exposures comprise the monetary assets and monetary liabilities that are not denominated in the operating (or "functional') currency which is US Dollars. The objective is to mitigate this exposure through active management by the Treasury department. Management of the transactional currency exposures is performed by the Treasury department. Forward rate contracts are entered into to manage this exposure. The actual currency exposures are monitored against the anticipated exposures which were hedged by the Treasury department. The exposure is reviewed as part of the monthly financial review carried out with the senior management team of the Bank. The Bank mitigates the effect of currency fluctuations caused by the revaluation of the SOFP at the end of each accounting period by hedging all assets with different source currencies from the Bank’s functional currency of US Dollars, thereby hedging all material foreign currency denominated exposures.

N/A

Bank investments

All investments are hedged as part of the SOFP FX risk management process.

Liabilities

SOFP hedging process which is monitored monthly

N/A

All investments are hedged as part of the SOFP FX risk management process.

Interest Rate

Fixed rate. The Bank is exposed to interest rate risk onthe portion of the SOFP that is funded by debt; mis-matchapproved by board

Capital

All intercompany loans are hedged as part of the SOFP FX risk management process.

Investments are short term. Interest rate risk is minimiseddue to the short average tenor of investments anddeposits.

Deposits are short term. Interest rate risk is minimiseddue to the short average tenor of investments anddeposits.

Bank and customer deposits

Operating leases

Intercompany loans


Finance leases

ExchangeForeign

SOFP hedging process which is monitored monthly


Assets


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HPIBHL Balance sheet by currency as at 31 October 2017

6.2 Treasury Counterparty Risk The Bank is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations. To mitigate the counterparty credit risk, the Bank has a policy of only entering into contracts with carefully selected major financial institutions based upon their credit ratings and other factors, and the Bank maintains risk limits that correspond to each institution’s credit rating and other factors. The Bank’s established policies and procedures for mitigating credit risk on principal transactions and short-term cash include reviewing and establishing limits for credit exposure and continually assessing the creditworthiness of counterparties. Master agreements with counterparties include master netting arrangements as further mitigation of credit exposure to counterparties. These arrangements permit the Bank to net amounts due from the Bank to a counterparty with amounts due to the Bank from the same counterparty. To further mitigate credit exposure to counterparties, the Bank may enter into collateral security arrangements with its counterparties. These arrangements require the Bank to post collateral or to hold collateral from counterparties when the derivative fair values exceed contractually established thresholds which are generally based on the credit ratings of the Bank and its counterparties. Such funds are generally transferred within two business days of the due date. As of October 31, 2017, the Banks collateral manager held a net amount of US$9.95 million in cash under these collateralised arrangements, of which US$33.23 million was

2017 2017 2016 2016US$’000 US$’000 US$’000 US$’000

(incl. effects of (incl. effects ofAssets: hedging) hedging)Denominated in United States Dollars 640,351 3,745,931 984,732 3,520,939 Denominated in Euro 2,311,403 2,549,193 2,102,243 2,265,838 Denominated in GBP 1,068,712 1,068,712 943,207 944,546 Denominated in other currencies 474,816 474,816 371,636 371,945

Total assets 4,495,282 7,838,652 4,401,818 7,103,268

Liabilities & Shareholders funds:Denominated in United States Dollars 3,480,115 3,717,904 3,329,050 3,494,293 Denominated in Euro 835,589 2,573,612 817,361 2,290,419 Denominated in GBP 145,880 1,075,427 215,979 949,816 Denominated in other currencies 33,698 471,707 39,429 373,596

Total liabilities & Shareholders funds 4,495,282 7,838,650 4,401,818 7,108,124


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in cash received from counterparties while US$26.21 million was re-hypothecated. The Bank did not have any derivative instruments under these collateralised arrangements that were in a significant net liability position. 6.3 Interest Rate Risk Interest rate risk arises when there is a mismatch between positions which are subject to interest rate adjustment within a specific period. The Bank does not have a trading book and all interest rate risk is in the banking book. At this time, the Bank’s lease portfolios are primarily financed by the Bank’s capital resources. Where the lease portfolio is not funded by capital resources it is funded by third party debt or intercompany debt and is therefore exposed to US dollar interest rate risk to the extent that there is a duration mismatch between Assets and Liabilities. The effect on net interest income, and therefore profit before tax, of a 1 basis point shift in the yield curve would be as follows:-

Section 7: Residual Risk Residual value exposure arises where, at lease inception, there is a future expectation that an asset value remains at the end of the primary term which can be recovered through a secondary transaction. Details of unguaranteed residual values are outlined below. These residual values are arrived at through a detailed analysis of transaction history on asset recovery to projected future values. Residual realisation is constantly monitored.

+1 basis points -1 basis points +1 basis points -1 basis points 2017 2017 2016 2016

US$’000 US$’000 US$’000 US$’000CurrencyUSD (5) 5 7 (7)


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Residual Values as at 31 October 2017

On a quarterly basis the Credit Pricing and Residual Committee and the Risk Committee reviews residual risk exposures, related pricing decisions and residual recovery rates (residual realisation), along with customer behaviours at end of term. Scenario stress testing is employed to assess impacts of possible future events and to ensure that sufficient capital is available to absorb any potential losses. The residual values for all standard product groups are reviewed at least annually as per the ASC840, SEC and Sarbanes Oxley requirements. Any impairment concerns identified through the review process are further analysed in a specific impairment analysis and review. Corrective measures are taken if impairment is identified. Section 8: Capital Risk The Bank is a mono-line business, therefore capital risk is measured at an overall business level. The ALCO and Risk Committees are responsible for monitoring Capital risk. Given the strong level of capitalisation, the major sources of HPIB’s capital risk are:- • Significant loss events leading to a reduction in capital balances.

Details of unguaranteed residual values are outlined below2017 2016

US$’000 US$’000Finance Leases Finance Leases

- Over 5 years 5,437 3,150 - 5 years or less but over 3 years 29,095 25,733 - 3 years or less but over 1 year 27,454 21,854 - 1 year or less 3,718 3,548

65,704 54,285

US$’000 US$’000Tangible Fixed Assets Tangible Fixed Assets

- Over 5 years - 1,476 - 5 years or less but over 3 years 43,359 42,944 - 3 years or less but over 1 year 280,325 180,605 - 1 year or less 114,280 74,403

437,964 299,428


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• Rapid balance sheet growth without a corresponding increase in capital invested.

The Bank is authorised and regulated by the Central Bank of Ireland and is required under the relevant regulations to maintain sufficient capital to meet its liabilities. The Bank has in excess of over 7 times capital cover in place as calculated under Pillar 1.

The Bank did not breach any capital ratios during the year. Section 9: Concentration Risk HPIB has put concentration risk limits in place in relation to country limits, concentration limits, product limits and industry limits. The adherence to these limits is monitored by the risk function and reported to the Risk Committee and Board of the Bank. It has also adopted an internal Capital Measurement Methodology for Credit Concentration Risk which forms the basis for ensuring that sufficient capital is held for concentration risk. Section 10: Operational Risk HPIB has adopted the standardised approach to calculate Operational Risk capital requirements under Pillar 1.

Capital Requirement HPIB HPIBHL31-Dec-17 31-Dec-17

US$'000 US$'000Share Capital 10,036 1 Capital Contribution/Other Reserves 1,654,222 1,664,257 Revenue Reserves 1,217,609 1,217,644 Add back loss on Cash Flow hedges 17,443 17,443

(554) (554) Total Tier 1 Capital 2,898,756 2,898,790

Total Capital Resources 2,898,756 2,898,790

Capital Requirement 405,787 405,786

Total Capital Excess 2,492,969 2,493,004


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Operational Risk is defined as the risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events. For HPIB Operational Risk specifically arises in areas of:

• Information Technology (including Cyber risk) • Outsourcing • Business continuity • People • Change Management • Internal Controls • New product development

The Board has approved the HPIB Operational Risk Management Framework.

HPIB Operational Risk Management Framework:

Risk and Control Assessments (RCA) are in place for all departments. Risks are assessed using the HPIB Risk Appetite Matrix. Controls are assessed for their design and their performance. The RCAs are reviewed and updated quarterly or as risk profiles change within the business. Key risks and operational risk loss events are monitored and reported regularly to senior management and quarterly to the Risk Committee and to the Board via the Operational Risk Committee.

Risk Management Framework

Corporate Governance

Stra

teg y

/G

o als

Indepe den den tAssu rance

Operational RiskExternal Regulatory /

LegalPeople Processes Systems Reputational

Action Plans

IdentifyRisks

IdentifyControls

AssessRisks

AssessControls

MonitorIndicators

AnalyseNear Miss/Loss

Causes

Reporting

Risk EnvironmentCompliance

RisksCredit Risks

Market Risks

Liquidity Risks

Financial Risks

Strategic Risks

Operational Risks


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Section 11: Strategic/Business Risk HPIB’s strategy is to support and enhance HPE’s and HP’s product and service solutions. HPIB enables customers to acquire complete IT solutions, including hardware, software and services. HPIB offers innovative, customized and flexible alternatives to balance unique customer cash flow, technology and capacity needs. From a risk perspective HPIB is a “monoline” business offering financing to corporate, enterprise and small and medium sized business customers. The Bank does not offer financing to consumers. The risks associated with HPIB’s strategic initiatives are identified and discussed on a regular basis by senior management and the risk management function ensures that such risks are managed in accordance with its risk management framework. On a quarterly basis the Board and the Board Sub-Committees monitor HPIB’s risk management and performance against its strategic and financial plan and objectives. Section 12: Ownership Risk HPIB is owned by a non-financial, commercial entity, Hewlett Packard Enterprise Company. The Central Bank of Ireland has assigned a Pillar 2 capital add-on for this ownership risk. Section 13: Governance Risk Governance risk relates to the overall management approach through which the Board and senior management manages and controls the business of HPIB. Governance activities ensure that critical management information reaches senior management and the Board to enable appropriate decision making, oversight and challenge. Governance risk is managed on an on-going basis as part of the following processes:

• Regular management meetings

• Monthly Compliance Committee meetings


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• Quarterly ALCO, Credit, Pricing & Residual Committee and

Operational Risk Committee meetings

• Quarterly Risk Committee meetings

• Quarterly Audit and Compliance Committee meetings

• Quarterly Board meetings

In addition HPIB has in place a three lines of defence structure to support risk management and strengthen its governance. HPIB has in place a board diversity policy, the objective of which is to ensure that in reviewing Board composition and identifying suitable candidates for appointment to the Board, HPIB will consider candidates based on merit and with due regard for the benefits of diversity in order to maintain a balance of skills, experience and background that will allow the Board to operate most effectively. Progress in the areas of diversity will be measured through the ongoing monitoring of the implementation of the policy. 13.1 Number of directorships held by members of the board Directorships held within the same group are counted as a single directorship.

NAME Directorships

Irving Rothman (Chairman) 1

Paul Sheeran (Managing Director) 1

Jim Farrell 3

Ian Fowlis 1

Brian Slattery 1

Michael Somers 5


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Section 14: Regulatory Compliance Risk Regulatory compliance risk is the risk to earnings, capital, liquidity and reputation arising from non-compliance with banking regulations, anti-money laundering legislation, data protection regulation and other regulatory requirements. Upstream risk is the risk arising from a new regulatory requirement that the Bank is currently unaware of or from regulations becoming applicable due to a change in the nature or scope of the Bank’s activities. The Bank has zero appetite for censure from regulatory bodies. Section 15: Securitisation The Bank does not have any securitisation exposure. Section 16: Encumbered Assets An asset should be treated as encumbered if it has been pledged or if it is subject to any form of arrangement to secure, collateralise or credit-enhance any on-balance-sheet or off-balance-sheet transaction from which it cannot be freely withdrawn (for instance, to be pledged for funding purposes). Additionally in line with the EBA technical standards on regulatory asset encumbrance reporting, HPIB considers other assets pledged which cannot be freely withdrawn such as mandatory minimum reserves at central banks. The HPIBHL & HPIB asset encumbrance disclosures are available on the following web site. https://www.hpe.com/ie/en/services/hpe-financial-services/legal.html Section 17: Leverage The Basel III leverage ratio was introduced as a simple, transparent, non-risk based ratio to restrict the build-up of leverage in the Banking sector. The leverage ratio is calculated as Tier One Capital/Total Exposures. As at the 31st October 2017 the total exposures of the Bank consist of:-

• On-balance sheet exposures • Derivatives exposures at replacement cost plus an add-on for potential

future exposure • Off-balance sheet items (committed facilities)



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The leverage ratio of the Bank as at 31st October 2017 was 65.85%. Appendix 2 contains the full leverage ratio disclosure template completed for the Bank and is available on the following website. https://www.hpe.com/ie/en/services/hpe-financial-services/legal.html Section 18: Remuneration This section provides brief information on the decision-making policies for remuneration of HPIB staff (including “identified staff”) and the links between pay and performance. These disclosures reflect the requirements set out in Committee of European Banking supervisors’ (CEBS, now EBA) Guidelines on Remuneration Policies and Practices, issued in December 2010 noting that the new EBA Guidelines on sound remuneration policies and practices will apply to HPIB from 1st November 2017. Identified Staff HPIB has completed an assessment process through which 18 employees, senior managers and directors have been identified as key staff on the basis that their professional activities are deemed to have a material impact on HPIB’s risk profile or they perform a key control function. Design, Structure and Decision-making process HPIB’s Remuneration Policy is dependent on the HPE group policies and charter. The HPIB Board is satisfied that independent and appropriate control functions exist in setting this policy at group level. It is the view of HPIB that this structure avoids potential conflicts of interest and that no employee of HPIB has significant influence in determining remuneration policies. HPIB’s capital structure does not correlate to the level of remuneration paid to HPIB management or employees. HPIB has historically enjoyed large levels of capital relative to its risk assets and this is due to the operating model which HPE has chosen for its Irish subsidiary. It is the intention that the HPIB Remuneration Policy and practices are consistent with and promote sound and effective risk management. The policy forms part of the overarching requirement to have robust governance arrangements in place and is in line with the business strategy, objectives, values and long-term interests of HPIB and of HPE. The HPIB Board approves the Remuneration Policy on an annual basis.



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Link between pay and performance HPIB’s independent non-executive directors are compensated a fixed amount which is not correlated to any financial HPIB metric (e.g. cash flow, net profit) and the other non-executive Directors serve at the behest of the HPE group without compensation. The compensation structure of employees (including other identified staff) are covered by either HPE remuneration policies or the world wide HPE Financial Services Incentivised Compensation Plan (ICP) Scheme and is not limited to the results of HPIB. Overall compensation is dependent on the results of HPE at group level. Proportionality HPIB has considered the following in assessing the application of the proportionality principle: Size HPIB is a small institution with a high level of capitalisation from its parent, HPE. Its function is to provide funding for IT equipment and other ancillary services. It does not engage in a high level of risk-taking, as evidenced in the HPIB Credit and Treasury policies. HPIB is based in Ireland but operates throughout much of the EEA. It does not, however, account for a large portion of the financial system in any country in which it operates. HPIB also represents a small part of HPE’s total business operations. No individual employed by HPIB falls within the definition of “high earner” (as defined in EBA guidelines). Internal Structure HPIB is a wholly owned subsidiary of HPE. While HPE is listed on a regulated market, HPIB is not separately listed. HPIB’s corporate goal is to support HPE’s business, providing IT product financing to HPE’s customers. Nature, Scope and Complexity of the institution HPIB’s business is a mono-line one with a focus on financing IT products to corporate, enterprise and small & medium sized business customers. It does not engage in equity or bond trading, proprietary or as agent and operates within the EEA.


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Taking into account each of the above, HPIB is considered to be a non-complex institution for the purposes of the Proportionality Principle. On this basis, it has chosen to apply neutralisation to a number of provisions. After due consideration regarding proportionality, it has been agreed that there is no necessity to form a Remuneration Committee for HPIB. The management function does not determine its own remuneration. This is determined by the governing HPE group policies and therefore it is considered that a supervisory function is not required. Remuneration Expenditure The following tables shows the remuneration paid by HPIB to Identified Staff in 2017.

Analysis of remuneration by fixed and variable elements

In thousands of USD

Management and

Supervisory Function

Internal Control

FunctionsCorporate Functions Total

Number of identified staff 8 3 4 15

Total Fixed Remuneration* 1,555 327 442 2,324

Total Variable Remuneration** 539 37 183 759

Ratio between variable and fixed remuneration 35% 11% 41% 33%* Base salary, allowance, benefits, pension, plus fees for non-executive directors**Performance awards in respect of the 2017 financial year

Amounts and forms of variable elements

In thousands of USD

Management and


Internal Control


Cash based 236 31 120 387

Shares 303 6 63 372

539 37 183 759


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2017 New sign-on and severance payments • No new identified staff received a sign-on payment during 2017 relating to

their commencement of employment • No severance payments were made during 2017 to these staff.

Deferred remuneration outstanding

In thousands of USD

Management and


Internal Control


Cash based 395 45 136 575

Shares 303 6 63 372

395 45 136 575

Performance awards in respect of the 2016 & 2017 financial years and deferred to 2018

capital requirements directive pillar 3 disclosures...pillar 3 disclosures . page 8 of 35 of the...

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