7 unchanged sentences
The Company uses EVE sensitivity analysis to understand the impact of changes in interest rates on long-term cash flows, income and capital.
−Removed: EVE is calculated by discounting the cash
−Removed: flows for all balance sheet instruments under different interest-rate scenarios.
+Added: EVE is calculated by discounting the cash flows for all balance sheet instruments under different interest-rate scenarios.
Modeling the sensitivity of NII and EVE to changes in market interest rates is highly dependent on the assumptions incorporated into the modeling process.
The Company continually reviews and refines the assumptions used in its interest rate risk modeling.
−Removed: Presented below is the estimated impact on the Company’s NII and EVE position as of March 31, 2020 , assuming parallel shifts in interest rates and a static balance sheet:
+Added: Presented below is the estimated impact on the Company’s NII and EVE position as of June 30, 2020, assuming parallel shifts in interest rates and a static balance sheet:
% Change from Base Case for Parallel Changes in Rates
−Removed: -50 Basis Points
−Removed: -25 Basis Points
−Removed: +100 Basis Points
−Removed: +200 Basis Points
+Added: -50 Basis Points -25 Basis Points +100 Basis Points +200 Basis Points
+Added: NII - Year 1 (0.73) % 1.31 % (1.13) % (4.78) %
+Added: NII - Year 2 13.01 % 16.37 % 9.54 % 3.04 %
+Added: EVE (3.07) % (0.73) % 0.57 % (8.09) %
The Company’s objective is to manage the balance sheet with a “risk-neutral” position.
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.