Capital Markets School - October 2023

Internal Use Only

Potential Hedging Opportunities

Various hedging options are included on the following sides with potential profitability metrics included

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Internal Use Only

NII Hedge Scenario 1 – No Hedge • Risk exists that rates remain lower than market expectations • Balance sheet positioned for stable NII/NIM

• Opportunity to reduce IRR • Objectives contingent on profitable growth • Recent lending pressure

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