How to do Stress Testing in 2021 - Brought to you by the Financial Services Faculty - ICAEW.com
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How to do Stress
Testing in 2021
Brought to you by the Financial Services Faculty
© ICAEW 2021
Presenters
Phil Seymour John Mongelard Shuvo Banerjee
Company President and Risk & Regulation Challengers & Automotive
Head of Advisory ICAEW Financial BRS FS
IBA Services Grant Thornton
© ICAEW 2021
Agenda – Stress testing in 2021
1. Regulatory Approach
2. Practical insights
3. Aviation – a deep dive
© ICAEW 2021
1. Regulatory Approach
© ICAEW 2021
1. Regulatory Approach - What is different? (I)
• Not for capital setting
• Not for ring-fenced banks
• Call out for certain sectors.
• Accelerated timetable
© ICAEW 2021
1. Regulatory Approach - What is different? (II)
“Unemployment rises sharply in the stress, with
certain sectors such as hospitality, leisure,
construction and transport more affected than
others.”
“Spending on travel, entertainment and hospitality
has fallen sharply as a result of mandated closures
and reduced capacity, as well as a general increase
in precautionary behaviour by consumers”
“The 2021 stress scenario assumes these
developments are even more pronounced, with
sectors such as hospitality, leisure, construction and
transport particularly affected.”
© ICAEW 2021
1. Regulatory Approach – Key scenario statistics
• UK GDP 37%
• Residential and
Commercial property 33%
• World GDP 31%
• Unemployment 11.9%
• Bank rate - 0.10%
© ICAEW 2021
1. Regulatory Approach & IFRS 9
Source: Deloitte - IFRS 9 | 2020 Year End Results in 10 Charts
© ICAEW 2021
2. Practical Insights
© ICAEW 2021
Stress Testing Webinar Banks and Building Societies Shuvo Banerjee Head of Retail Banking – Challenger Banks and Automotive Finance shuvo.Banerjee@uk.gt.com
Contents
1. The State of the Economy view from the
ground up
2. Basel guidance
3. PRA feedback on the application of Basel
Principles
4. EBA guidance
5. PRA guidance on Models
© 2018 Grant Thornton UK LLP. Confidential and information only. 11FCA’s 2nd Financial lives survey –
2020
16,000 respondents
View of the Economy from the
Ground up
© 2018 Grant Thornton UK LLP. Confidential and information only. 12Impact of Covid-19 © 2018 Grant Thornton UK LLP. Confidential and information only. 13
How many vulnerable customers were there
pre Covid 19?
MISSED
PAYMENTS
© 2018 Grant Thornton UK LLP. Confidential and information only. 14Impact of Covid -19 – low financial resilience
• Between March and October 2020, the number of adults with low financial resilience increased
overall by 3.5 million to 14.2 million, or 27% of UK adults
• London has the highest levels of vulnerability in October 2020 and the biggest percentage increase
since February 2020 (up by about a third from 44%)
• Almost two-fifths (38% or 19.6m) of adults anticipate either struggling to make ends meet, seeing
their debt levels increase, not being able to pay domestic bills, or not being able to keep up with
their mortgage, rent or credit and loan commitments over the next six months.
© 2018 Grant Thornton UK LLP. Confidential and information only. 15Profile of low financial resilience - 2020
1. This was a slight improvement on the 2017 results, where 11.6 million (23%) had low financial
resilience, 7.5 million (15%)were over-indebted and 4.1 million (8%) were in financial difficulty.
2. Financial resilience improved in this three-year period more so for men than women
(18% of men had low resilience in 2020, down from 21% in 2017, compared with
24% and 23% for women, respectively)
3. Those least able to cope with a financial shock included: unemployed adults (47%),renters
(47%), adults with a household income of less than £15,000 (43%) and Black adults
(34%).
4. 23.7 million adults (45%) were unable to cover their living expenses for three
months or more or were borrowing inone of these ways in February 2020. This placed them at
greater risk if they were to experience a persistent drop in income, for example due to
furlough or losing their job
5. One in ten (10% or 5.1m) were constantly or usually overdrawn. There was no
significant change in these numbers between 2017 and early 2020. Many were using their
overdraft facility to pay for essential living expenses, such as their rent or mortgage payments.
6. One in twenty (5% or 2.8m) had persistent credit card debt because they were revolving
a balance on a credit card and had paid more in interest, fees and charges over the previous 12
to 18 months than they had actually paid off on their card(s).
•
© 2018 Grant Thornton UK LLP. Confidential and information only. 16Covid 19 - Impact on Unsecured debt – by
lender profile (FLS) - decrease
© 2018 Grant Thornton UK LLP. Confidential and information only. 17Impact of Covid 19 - Mortgage payment
deferrals by lender profile- increase
© 2018 Grant Thornton UK LLP. Confidential and information only. 18Profile of mortgage payment deferral
requestors
© 2018 Grant Thornton UK LLP. Confidential and information only. 19Covid 19 impact - Self-employed businesses
Seven in ten (71%) self-employed businesses experienced a reduction in business
revenues between March and October. One in ten (9%) ceased trading altogether.
© 2018 Grant Thornton UK LLP. Confidential and information only. 20Basel guidance on stress
testing – October 2018
© 2018 Grant Thornton UK LLP. Confidential and information only. 21Stress testing principles – BCBS October
2018 – ‘Guidance not standards’
Principles Key points
1- Objectives • To inform capital and liquidity planning OR to their role as an integral element of Risk Management.
2- Framework & • Framework – (a) scenario development and approval (b) model development and validation (c ) reporting and
Governance challenge of results (d) use of stress test outputs
• The roles of the second and third line should be specified
• Board has ultimate responsibility
• Can delegate the development and implementation of the framework to senior management or a Stress Testing Committee
• The board, OR an appropriately senior-level governance body, should have an understanding of the material aspects of
the framework and engage actively and challenge key modelling assumptions and scenario selection
3- Risk Management tool • Stress testing constitutes a key input related to risk identification, monitoring and assessment
• Stress tests should contribute to formulating and pursuing strategic and policy objectives
• Results of stress tests should, where appropriate, inform banks’ calibration of risk appetite and limits, financial and capital
planning, liquidity and funding risk assessment, contingency planning and recovery and resolution planning.
4- Capture material and • Stress testing should capture material and relevant risks
relevant risks • If certain risks are excluded, their exclusion should be explained and documented
Apply stresses that are • Scenarios should be severe but plausible and should not be limited to the supervisory scenarios
sufficiently severe
5- Resources should be • Resources should have the appropriate skill sets to execute the framework & to facilitate insights from business lines
adequate • The set of skills typically required includes (but are not limited to) expertise in liquidity risk, credit risk, market risk, capital rules,
financial accounting, modelling and project management.
© 2018 Grant Thornton UK LLP. Confidential and information only.Stress testing principles – BCBS
October 2018 – ‘Guidance not
standards’
Principles Key points
6- Accurate and sufficiently • Data used should be accurate, complete, available at a sufficiently granular level and in a timely manner – reference to
granular data and by robust BCBS 239
IT systems • Robust data infrastructure capable of retrieving, processing, and reporting information used in stress tests to ensure
information is of adequate quality
7- Models and • Models should adequately define the coverage, segmentation and granularity of data and types of risk
methodologies should be fit • Level of sophistication should be appropriate
for purpose • Overlays if used should be well justified & documented
• Links between solvency & liquidity stresses should be considered
• Include a certain amount of expert judgment, justified, challenged & documented
• Should have adequate inventory
• Robust model validation functionand be available to Senior Management
8- Subject to challenge and • Review of all aspects of the Stress Testing framework on a periodic basis
regular review • Reviews should include a validation
• Other types of independent reviews should include key components of the stress testing process - methodologies, scenario
assumptions, estimations of the stressed losses, revenues and liquidity forecasts
• Internal audit reviews should review the stress testing framework, be comprehensive and be available to senior
management
• Challenge from the Business areas on the assumptions and plausibility of outcomes
9- Communication • Banks should consider ways to ensure that market participants understand the data that are disclosed, including the limitations
of and the assumptions on which it is based
© 2018 Grant Thornton UK LLP. Confidential and information only. 23PRA assessment against
Basel principles in the ACS
© 2018 Grant Thornton UK LLP. Confidential and information only. 24PRA feedback against the 9 Basel
principles
Positives Areas for Improvement
Principles 1 & 2 ▪ Stress testing objectives ▪ Close links to their Risk Management framework
(Obj, Framework, largely defined in most ▪ Processes and governance are appropriate to the
Governance) banks nature of the stress test
Principle 3 (Risk ▪ Most Banks are using ▪ Use insights from Stress Testing more
Management tool) stress tests to calibrate systematically and consistently in Business
Risk Appetite and Planning and Risk Management
Limits ▪ Stress testing results could also be used, where
appropriate, to support financial and capital
planning, contingency planning, recovery and
resolution planning, portfolio management and new
trade/product approval processes
Principle 4 ▪ Some relevant risks are • Banks capture some relevant risks in their internal
(Capture material captured scenarios but improvements are needed to ensure
risks) that risk identification processes comprehensively
capture these risks and feed into the design of
internal stress scenarios
tests at various levels of the organisation
and of varying severity to gain insights
© 2018 Grant Thornton UK LLP. Confidential and information only.
into risks associated 25
with their business modelPRA feedback against the 9 Basel
principles
Positives Areas for Improvement
Principles 5 & 6 ▪ Improvements made to ▪ Further improvements to data quality, granularity
(Resources, infrastructure, execution, and the reconciliation of risk to finance data
granularity of data) delivery and ▪ Assessment of BCBS 239
management of data
Principle 7 (Models ▪ Strong methodologies - ▪ Expectation that the principles of SS3-18 need to
and Methodology) Adequate justification of be further embedded
the assumptions,
limitations and overlays
applied
Principle 8 (Subject ▪ Some Banks had • Review and challenge to be enhanced to ensure
to challenge and comprehensive review reliability of stress test results and aid an
regular review) and challenge understanding of limitations or areas for
improvement
tests at various levels of the organisation
Principle 9 • Communication of Business insights along with
(Communication) quantitative results
• Stress testing could be systematically
communicated to relevant stakeholders – this could
enhance the use of stress testing
© 2018 Grant Thornton UK LLP. Confidential and information only.
tests at various levels of the organisation 26EBA guidance on Stress Testing –
July 2018
© 2018 Grant Thornton UK LLP. Confidential and information only. 27EBA Guidance – July 2018 – ‘to be complied with’
Stress Testing Annual assessment
of the stress testing
programme +
challenge by the
Application Risk Committee and Linkage
internal auditors between
solvency and
liquidity stress
tests
Data including Governance
BCBS 239 Individual Risk
Types areas
Model Risk Credit & Scope & Coverage
Proportionality Counterparty
Sensitivity
Securitisation
Scenarios
Market
Severe & Interest rate from
plausible Non-trading PD/ LGD/ EAD
Operational
Reverse Conduct related Concentration
Stress test
Liquidity FX lending
© 2018 Grant Thornton UK LLP. Confidential and information only. 28The Stress test – key elements
Focus Details
Institutions should maintain a list of the risk factors identified
Identified risk factors The set of risk factors also aim to reveal, to the maximum extent possible, the nature of linked
risks across portfolios and across time, system-wide interactions and feedback effects
Definitions and
The assessment of the resilience of an institution or of a portfolio to a given scenario that
reasoning for relevant
comprises a set of risk factors
scenarios
Sensitivity of Institutions should assess at which aggregation level sensitivity analyses are meaningful or
assumptions to results even feasible.
Institutions should include scenarios identified through the reverse stress testing to
Reverse Stress tests complement the range of stress test scenarios they undertake and, for comparison purposes,
in order to assess the overall severity, allowing the identification of severe but still plausible
scenarios.
Aligning risk appetite
The outputs of stress tests should be used as inputs to the process of establishing an
with risks revealed by
institution’s risk appetite and limits.
reverse stress testing
Data infrastructure Application of BCBS 239 – Risk Data Aggregation and Reporting even if not a GSIB. Should have
regard to both on and off balance sheet risk data
© 2018 Grant Thornton UK LLP. Confidential and information only. 29SS3-18 Model Risk Management © 2018 Grant Thornton UK LLP. Confidential and information only. 30
PRA (UK) – ‘Model risk management
principles for stress testing’ (April 2018)
PS 7/18 “The principles are intended to be relevant to all model types, not only those used in a
stress-testing context. In future, the PRA will consider whether it should further extend the principles to
be applied to other types of models.”
Principle 1 Banks have an established definition of a model and maintain a model inventory
Banks have implemented an effective governance framework, policies, procedures
Principle 2 and controls to manage their model risk
Banks have implemented a robust model development and implementation process,
Principle 3 and ensure appropriate use of models
Banks undertake appropriate model validation and independent review activities to
Principle 4 ensure sound model performance and greater understanding of model
uncertainties.
© 2018 Grant Thornton UK LLP. Confidential and information only. 31PRA ‘Self-assessment’ reported in ICAAP - 21 Data Points
Principle 1 Principle 2 Principle 3 Principle 4
Model
Model
Definition of a governance,
development
model and policies, Model validation
and
model inventory procedures,
implementation
controls
Board of Directors and Model purpose and design
Senior Management’s Scope of validation
responsibility
Use of data
Definition of a model
Testing
Model risk policies Independence
Documentation
Roles of model owners,
Use of judgement Competence & influence
developers and users
Supporting systems
Role of internal audit Treatment of model issues
Business involvement
Model inventory
Model uncertainty
Frequency of model
Use of external resources
validation
Model monitoring
© 2018 Grant Thornton UK LLP. Confidential and information only. 32The devil is in the detail
Model risk management principles for stress testing – PRA publication – April 2018:
PS 7/18 “It is not the PRA’s intention that Boards should understand the statistical and mathematical underpinnings of models. However, both senior
management and the Board should ensure that they possess a general understanding of the most material models, the uncertainty around
judgements, where the model is expected to work well and in what circumstances it is likely to break down.”
Board of Directors & P2.2 The Board of Directors AND Senior Management are expected to provide challenge to model outputs and
Senior Management’s understand model capabilities, the model limitations, and the potential impact of model uncertainty for the most material
responsibility
models and the aggregate outputs
P1.2 Model Inventory – should also include all model uses and direct or material dependencies ie models that depend or use the
Model inventory output of other models
Model purpose and P3.1 Model purpose and design – model results should be supported by a comparison with alternative theories / approaches or
design assessing sensitivities of changes in model inputs
Competence and P4.3 Competence and influence – banks should consider whether people performing validation have the necessary knowledge,
influence skills, and expertise to perform model validations
P2.4 Role of internal audit – internal audit should assess the overall effectiveness of the model risk management framework.
Role of internal audit
Internal audit should evaluate and independently verify whether model risk management practices are comprehensive,
rigorous, and effective.
© 2018 Grant Thornton UK LLP. Confidential and information only. 33Speech by Andrew Bailey – November 2015
What does a Board need to understand? Try the following:
• key elements of model design;
• significant assumptions and expert judgements;
• key sensitivities; and
• significant limitations and uncertainty in the model.
To restate, the challenge is to reduce complexity to simplicity, so that Board members feel that they understand:
• where is the model expected to work well;
• in what circumstances is it likely to break down;
• is the overall model output credible;
• what “moves the dial” in terms of key assumptions or judgements; and
• are those assumptions and judgements reasonable?
© 2018 Grant Thornton UK LLP. Confidential and information only. 34Your presenter from Grant Thornton
He is a UK Chartered Accountant and experienced Head of Audit (including
LBG and RBS) with over 25 years of Assurance experience. Currently at
Grant Thornton he leads Retail Banking Internal Audit work for Challenger
Banks and Automotive Finance.
The Internal Audit work has included Enterprise Wide Risk Management
Shuvo Banerjee (PRA-initiated review), Credit Risk, Recovery Planning, Compliance and
Head of Retail Banking, Challenger Transaction monitoring frameworks, Financial and Regulatory Reporting and
Banks & Automotive Finance
Model frameworks, including IFRS 9 and Stress Testing – referring to Basel,
E: shuvo.banerjee@uk.gt.com European Banking Authority (EBA), European Central Bank guidance or
T: +44 (0)20 7865 2096 other Industry best practice where applicable
© 2018 Grant Thornton UK LLP. Confidential and information only. 353. Aviation
‘For the 2021 solvency stress
test, banks will be expected to
stress the airline and airline
leasing sector as well as
identifying their most
significant sectorial cohort of
Covid-related exposure under
the stress.
Stress testing the UK banking system:
Key elements of the 2021 stress test3. Aviation – deep dive
© ICAEW 2021THE AVIATION ECO-SYSTEM:
THE DRIVERS OF DEMAND AND
SUPPLY - UK OUTLOOK
Phil Seymour
Company President & Head of Advisory
ISTAT Certified Senior Appraiser Fellow
phil.seymour@iba.aero
24th March 2021
www.iba.aeroIBA: EXPERIENCE… INTO
BUILDING ON IBA’S 30+ YEARS OF AVIATION EXPERTISE
Award-Winning Advisory Asset Management Market Leading
Valuations Strategic project
and Technical Data Platform
Independent Asset support across the Services Combining IBA’s
Appraisal: aviation value extensive values
“Appraiser of the chain Hands-on technical and fleet data to
Year 2020” and management create a
support for lease comprehensive
and asset partners data platform for
real-time analysis
www.iba.aero 39THE NEW INTEGRATED DATA
INTELLIGENCE PLATFORM
InsightIQ is a one-stop
intelligence platform combining
accuracy, speed, visual analytics
and intuitive navigation
Dashboard interface designed
to help you get the analysis
you need
Integrated with IBA’s trusted DRIVE ACTIONABLE INSIGHTS
valuation methodology, it is FROM COMPREHENSIVE,
the global aviation industry’s INTEGRATED AVIATION DATA
must-have tool
www.iba.aero 40INTRODUCING THE INSIGHTIQ CARBON
EMISSIONS CALCULATOR (CEC)
Make environmentally-aware investment choices and meet green-financing obligations
InsightIQ CEC offers an independent, unbiased calculator of emissions data based on real world flights, aggregated to
compare outputs by aircraft, organisations, geographic distribution, portfolios and sustainable aviation fuels.
InsightIQ
Carbon Emission
Knowledge
www.iba.aeroAIRLINE FAILURES/ADMINISTRATION
Airline Failures & those in Administration (Jets & TPs >25 seats) - 15th March 2021
(Assuming Operators in Administration do not re-emerge)
Brent (EIA) Failures (iQ) Annualised # of Aircraft # of Aircraft (iQ)
200 2000
Brent Oil Price USD/bbl & Number of Airline Failures & in Administration
Average Failed Fleet Size (# aircraft/failure)
40.00
180 35.00 1800
30.00
25.00
160 20.00 1600
15.00
10.00
140 5.00
April 2020 prediction 1400
0.00
Number of Aircraft
120 1200
100 > Powered by 1000
80 800
60 600
40 400
20 200
0 0
www.iba.aero 42AIRLINE FAILURES/ADMINISTRATION
2020/2021 FAILURE/ADMINISTRATION PROGRESS
2021 so far Air Namibia, Sky Regional Airline Failures & those in Administration (Jets & TPs >25 seats)
December Interjet, Montenegro Airlines, Palestinian Airlines 1,700
November Norwegian Air International 1,600 31 1548
October Air Asia Japan, Cathay Dragon > Powered by 52 28
September Go2Sky 1,500 132 3
1,400
August ExpressJet 182
1,300
July Aeromexico Connect, Aeromexico 65% of CH11 aircraft
1,200 62
Number of Aircraft Involved
OpenSkies, Virgin Atlantic, Jet Time remain in service
1,100 588 898 (active & short-term
June Flyest, Level Europe, SunExpress Deutscheland parking)
1,000
One Airlines, NokScoot, LIAT
Tigerair Australia 900
800
South African Airways
Comair 700
May Miami Air International 600
Avianca
367
TAME EP 500 24% of failure related
LATAM aircraft remain stored
400
Air Georgian
650 with the Airline (50:50
300 leased)
Trans States Airlines, Ravn (inc in Penair and Corvus)
200
April Compass Airlines, BRA Braathens Regional Airlines 73
LGW - German Airways, Germanwings, CityJet, Virgin Australia 100 26 25
4 0 8
Virgin Australia, Air Mauritius, South African Express
0
March FlyBe
February Air Italy, AtlasGlobal, Connect Cargo
January Ernest Airlines, Nantucket Express
Failure Administration
www.iba.aero 43UTILISATION
PASSENGER & FREIGHT
All Passenger Flights Freight/Combi/QC Flights
3,500,000 90.0% 160,000 70.0%
80.0% 140,000
3,000,000 60.0%
70.0%
120,000
2,500,000 50.0%
60.0%
100,000
2,000,000 50.0% 40.0%
80,000
1,500,000 40.0% 30.0%
60,000
30.0%
1,000,000 20.0%
40,000
20.0%
500,000 10.0%
10.0% 20,000
0 0.0% 0 0.0%
Domestic Flights Int'l Flights Load Factor % (IATA) Domestic Flights Int'l Flights Load Factor % (IATA)
www.iba.aero > Powered by 44AVIATION INTERDEPENDENCIES www.iba.aero 45
AVIATION INTERDEPENDENCIES www.iba.aero 46
AVIATION INTERDEPENDENCIES
GDP
Global and
regional
variations
Air traffic
Supply chain
Pax and
into MRO Freight
Aviation
Supply chain
into OEM
Eco Oil price
System
USD
Regulators
dominant
(UK CAA)
FX impact
Maintenance
Repair and
Overhaul
(MRO)
www.iba.aero 47AVIATION INTERDEPENDENCIES
GDP – global
consideration
– desire to get
away – Air traffic: Pax
business, and Freight:
ESG, tourism, VFR IATA not
especially the expecting
‘E’ recovery to
2019 levels until
2024
Oil price: has
had a big impact
on aviation
Finance/Leasing
Aviation businesses, less
so now but will
Eco return (FX)
System
USD dominant:
UK airlines
Insurance have suffered-
fuel, parts,
finance in USD
MRO: Rolls
Regulators (UK Royce heavily
CAA/EASA) reliant on
aftermarket
www.iba.aero 48UK EXPOSURE
Travel agents
and portals
Legal,
Finance,
Manufacturers
Insurance
– not just BAE
consulting –
and RR, a
English Law still
multitude of
a precedent in
other suppliers
aviation, Intl
banks
UK Aviation Eco
System BAG 2017
20bn/250K
employed
Maintenance,
UK CAA/NATS Repair and
Overhaul (MRO)
Airports, MRO,
Airlines: BA, catering, ATC,
Fuel emergency
Virgin, Easyjet,
services – not
Jet2, (new only commercial:
flybe?) business jet
sector
www.iba.aero 49MACRO ISSUES – DRIVING CHANGE
> Aviation drives new tech but what about the ‘E’ in ESG?
> Driving change towards zero carbon emissions – UK at the centre of innovation
> RR and BA at the centre of SAF, Electric and Hydrogen initiatives – job creation
> Aviation related skills are transferable:
> Generally, highly trained and skilled: Pilots/Technicians/Design/Manufacturing/Tech and
across the maintenance
> Fitters, cabin safety, etc. Very transferable skill sets
www.iba.aero 50ASSET VALUES
> What’s happening to my security?
> Aircraft values dropping – some are improving, but which ones?
> IAS 36 – FVLCS and VIU – typical questions we are being asked to consider (ISA 620/500)
> IFRS 16 – leased assets – airlines particularly impacted by treatment of leased assets
- rights of use/liabilities
www.iba.aero 51A320CEO VALUE PROFILE
BASE REMAINS STEADY BUT OLD/MID BUILDS ON WATCH
EXAMPLE: BA AND EASYJET OLDER FLEETS
Base Value Soft Value Market Values 1998 Market Values 2008 Market Values 2018 Parked & Stored %
50.00 100%
45.00 90%
40.00 80%
35.00 70%
Parked & Stored %
30.00 60%
US$m
25.00 50%
20.00 40%
15.00 30%
10.00 20%
5.00 10%
0.00 0%
1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
> Powered by TRENDS
www.iba.aero 52737-800 VALUE PROFILE
BASE REMAINS STEADY BUT MID BUILDS ON WATCH
EXAMPLE: JET2.COM FLEET
Base Value Soft Value Market Values 1998 Market Values 2008 Market Values 2018 Parked & Stored %
50.00 100%
45.00 90%
40.00 80%
35.00 70%
Parked & Stored %
30.00 60%
US$m
25.00 50%
20.00 40%
15.00 30%
10.00 20%
5.00 10%
0.00 0%
1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
> Powered by TRENDS
www.iba.aero 53IBA’S TAKEAWAYS KEY COMMENTS AND CONCLUSIONS > Carefully consider the sector that the specific business is operating in > Not every sector of the aviation industry is negatively impacted > Consider unencumbered assets – some are retaining value better than others > Innovation is at the heart of UK aerospace: > Carbon emission reduction initiatives > Investment returns may be long-term > SAF/Electric/Hybrid/Hydrogen www.iba.aero 54
CONTACT US
KEEP UP TO DATE
WITH OUR AVIATION
INTELLIGENCE: IBA.AERO
Address
IBA Group Ltd, IBA House, 7 The Crescent,
Leatherhead, Surrey, KT22 8DY
E-mail
Marketing@iba.aero
Follow us on Follow us on
LINKEDIN TWITTER
www.iba.aero 55DISCLAIMER: Our discussion may include predictions, estimates or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. Throughout today’s discussion, we will attempt to present some important factors relating to our business that may affect our predictions. All materials are intellectual property of IBA Group www.iba.aero 56
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