Bank of Cyprus Group Corporate presentation December 2019 The Bank - - PowerPoint PPT Presentation

Corporate presentation

Bank of Cyprus Group

December 2019

The Bank of Cyprus Group is the leading banking and financial services group in Cyprus, providing a wide range of financial products and services which include retail and commercial banking, finance, factoring, investment banking, brokerage, fund management, private banking, life and general insurance. The Bank of Cyprus Group operates through a total of 108 branches in Cyprus, of which 11 operate as cash offices. Bank of Cyprus also has representative offices in Russia, Ukraine and China. The Bank of Cyprus Group employs 4,134* staff

• worldwide. At 30 September 2019, the Group’s Total Assets amounted to €21.1 bn and Total Equity was €2.5 bn. The Bank of Cyprus

Group comprises Bank of Cyprus Holdings Public Limited Company, its subsidiary Bank of Cyprus Public Company Limited and its subsidiaries. *The Bank of Cyprus Group employed 4,134 staff worldwide as at 30 September 2019. The number of staff has been reduced by c.470 employees following the completion of a voluntary staff exit plan in October 2019.

Investment highlights

3

2 3

Leading financial hub in Cyprus



Market leader in both loans and deposits

4

Well positioned to capitalise on growth opportunities



Highly correlated with the Cyprus economy which is expected to grow twice as fast as the euro area average in the next three years Significantly de-risked balance sheet profile



Successful execution of decisive strategic actions in reducing NPEs



Funding structure normalised



Good capital position Pathway to sustainable returns profile via the core Cypriot bank



Finish the task of balance sheet de-risking



Further improve efficiencies in operating model



Revenue stabilisation and diversification



Medium Term Guidance to be communicated with FY2019 FR Strong leadership team…



…with an excellent track-record of delivery against strategic objectives Clear focus on strategic priorities…



…to manage the residual legacy portfolio and…



…to further improve efficiency supported by on-going digital transformation



…whilst maintaining good capital position

5

Creating a Stronger, Safer and future focused Bank

1 6

13.0 7.5 3.7 1.8

Gross loans € bn Branch network # branches Deposits € bn

Source: CBC, company disclosure as of 30 September 2019 1) Hellenic Bank Data as of 30 June 2019

16.5 14.8 2.2 5.6 97 129 22 8 41% 35%

Market share

Leading financial hub in Cyprus

Hellenic Bank

22% 30%

4 Positioning against market players

11% 5% 5% 11%

1

 Market leading full service bank in Cyprus

1

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9

Apr 2016 Jul 2016 Sep 2016 Nov 2016 Jan 2017 Apr 2017 Jun 2017 Aug 2017 Oct 2017 Jan 2018 Mar 2018 May 2018 Jul 2018 Oct 2018 Dec 2018 Feb 2019 Apr 2019 Jun 2019 Sep 2019 Nov 2019 Cyprus - maturity 4/11/2025 Portugal - maturity 15/10/2025 Spain - maturity 31/10/2025 Italy - maturity 01/12/2025 Greece - maturity 30/01/2028

9.5 13.3 16.6 16.5 13.2 13.0 10.3 7.6 7.5 7.3 340 360 380 400 420 440 460 5.0 7.0 9.0 11.0 13.0 15.0 17.0

2011Q4 2012Q2 2012Q4 2Q2013 4Q2013 2Q2014 4Q2014 2Q2015 4Q2015 2Q2016 4Q2016 2Q2017 4Q2017 2Q2018 4Q2018 2019Q1 2019Q2

Unemployment rate SA (%)

Cyprus now one of the fastest growing economies in Europe

5

4.1 3.2

• 8.0
• 6.0
• 4.0
• 2.0

0.0 2.0 4.0 6.0 8.0 2011 2012 2013 2014 2015 2016 2017 2018 3Q2019 Real GDP SA annualised % change y-o-y

1

Source: Statistical Service of Republic of Cyprus; Bloomberg (1) SA: Seasonally Adjusted (2) Normalised against Germany Government bond with maturity 15/8/2025 except Greece (3) Due to the Debt swap of the Hellenic Republic, from November 2017 onwards data for the new Hellenic Republic Bond with maturity 30/01/2028 was used and normalised against the closest maturity of German Government bond (DBR) 15/08/2027

Real GDP growth (%) – 2019e 4.9% 3.2% 2.0% 1.8% 1.7% 1.1% 0.1% Ireland Cyprus Spain Portugal Greece Euro area average Italy

1

Spreads (%)

2 2 2 2 3

Cyprus economy expected to grow twice as fast as the euro area average in the next three years Unemployment rate dropped to 7.3%, the lowest since 2013 Reduction in spreads following reduction in government bond yields

2

63% 31% 49% 78%

Substantial improvement on key Balance Sheet metrics

6

26.8 21.1 Dec 2014 Sep 2019 Total assets

• €5.7 bn

> €5.5 bn balance sheet deleveraging c.€9 bn reduction in RWAs

22.7 13.8 Sep 2019 Dec 2014 RWAs

• €8.9 bn

Funding structure normalised c.€11 bn reduction in NPEs

15.0 4.1 Dec 2014 NPEs Sep 2019

• 73%

Good capital position above regulatory requirements

Dec 2014 141% Sep 2019 L/D ratio 66%

• 75 p.p.

€ bn € bn € bn

NPE ratio (1) Allowing for transitional arrangements (2) Pro-forma for the disposal of the investment CNP and Voluntary Staff Exit Plan completed in October 2019 (3) OCR(SREP)- Overall Capital Requirement comprises the Total SREP Capital Requirement (Pillar 1 and Pillar 2 Requirement) plus combined buffer requirements (capital conservation buffer, countercyclical buffer and systemic buffers) (4)

10.5%

• Min. regulatory requirements

Dec 2014 14.9% 14.0% Sep 2019 CET1

1 1,2

 NPEs reduced by 73% since 2014  Funding stack normalisation with a deposit funded asset base  Strengthened capital position relative to balance sheet risk profile

Customer deposits as % of total assets

3

3

7

… impacting C/I ratio Cost management remains a key focus going forward

36% FY2014 9M2019 C/I ratio 62% FY2015 FY2014 FY2016 FY2017 COR 9M2019 FY2018 2.8% 4.3% 1.7% 4.0% 1.0% 1.2%

Cost of risk normalisation following B/S de-risking completion

193 235 331 227 320 83 9M2016 9M2019 844 545

… resulting in lower but higher quality income…

51% 49% 73% 27% 9.9 8.9 5.9 2.0 10.9 Sep 2019 Sep 2016 15.8 Legacy Performing

Smaller yet safer loan book led by B/S de-risking…

63% 37% 82% 18% Net loans (€ bn)

(1) C/I ratio: Cost-to-income ratio (2) COR: Cost of risk ratio For calculations please refer to “Glossary & Definitions” 1 2

…with consequences for Profit and Loss metrics 3

Legacy Performing Non Interest Income % of Total Interest Income

• n Loans

Interest Income on loans and Non Interest Income (€ mn)

Fully committed to accelerate de-risking

• rganically &

non-organically

8

4 CEO Priorities

Focused on further improving efficiency to reflect our smaller revenue base, supported by on- going digital transformation Maintaining Good Capital Position

• Estia scheme resulting in clear distinction of eligible borrowers in 3 categories:
• Scheme participants  487 applications (c.€120 mn) received until 22 November 2019
• Non viable  Alternative restructuring solutions considered
• Remaining  Focus mainly on realising collateral via consensual & non consensual foreclosures

Estia eligible2 portfolio

€0.83 bn

• Close monitoring of redefaults & quality of restructurings
• c.75% available for NPE exit by end 2020, subject to continuing to meet all relevant exit criteria

Non-Core3 NPEs

€0.53 bn

• In an advanced preparation phase of reviewing NPE reduction structures expected to be finalised in

1H20201

De-risking acceleration

>€2 bn

9

Accelerate de-risking, organically and non-organically to tackle remaining €4.1 bn NPEs and €1.5 bn REOs

• Net organic reduction of €227 mn in 3Q2019 and of €684 mn for 9M2019
• Ahead of target of c.€200 mn per quarter in 2019

Organic de- risking continues

€0.8 bn for 2019

• €1.10 bn sales5 of 1,459 properties since set-up in Jan 2016
• On board assets in REMU at conservative c.25%-30% discount to open market value (OMV)
• REMU sales achieved comfortably above Book Value

Real Estate Management Unit (REMU)

€1.5 bn REOs4

4 Strategic priorities - manage the residual legacy portfolio

(1) NPE reduction structures under review include outright sales. The Group is not committed to any outcome arising from this preparation phase (2) ESTIA-eligible portfolio refers to the potentially eligible portfolio based on the Bank’s available data. Further, eligibility will be assessed on an individual level and borrowers will be eligible if they apply and meet the specific criteria of the Scheme as announced by the Government (3) NPEs that have been restructured, have no arrears and are in the pipeline to exit NPE definition subject to meeting the relevant exit criteria (4) Real – estate-owned properties (5) Sales contract prices

• Further 8% reduction in number of branches by the year end
• Completion of Voluntary Staff Exit Plan in 4Q2019 at one-off cost of €79 mn
• Full time employees reduced by 11%; Gross annual savings2 in staff costs of 13% (€28 mn)

Staff Costs 10

• Expected to minimise upon completion of de-risking

Restructuring Expenses

To reflect our smaller revenue base, supported by on-going Digital Transformation

• Adoption of digital products and services continues to grow and gain momentum
• 75% of transactions1 through digital channels; 54% increase in active mobile banking users since June 2017

Digital Transformation

• Expected to normalise following balance sheet de-risking

Cost of Risk

4 Strategic priorities – improve efficiency

Branch Footprint Rationalisation

• Liquidity management strategy underway for specific customer groups
• Actively pricing down deposits; 57 bps reduction since Jan 18

Cost of Funding and Liquidity Management

(1) Transactions involving deposits, cash withdrawals and transfers (2) This gross annual saving does not include any impact from the renewal of the collective agreement for 2019 which remains under discussion

Internal Audit Director George Zornas

Chief Executive Officer Panicos Nicolaou Executive Committee

Compliance Director Marios Skandalis Executive Finance Director Eliza Livadiotou

1) Functionally reports to the Human Resources & Remuneration Committee

11

Director

• perations & Chief

Cost Officer Solonas Matsias Chief Risk Officer Demetris Demetriou Chief Information Officer George Tziortzis Director Human Resources1 Irene Gregoriou Director Treasury Despina Kyriakidou

GROUP FUNCTIONS

Deputy CEO Charis Pouangare Executive Director Insurance Louis Pochanis Executive Director Global Corporate Banking & Markets Michalis Athanasiou Director Corporate Banking Xenios Konomis Director SME Bankng Vyronas Vyronos Director Retail Banking Theodosis Theodosiou Director International Banking Harris Pistos Executive Director Corporate Finance Solutions Nick Smith Executive Director REMU Anna Sofroniou Executive Director RRD Panicos Mouzouris First Deputy CEO Christodoulos Patsalides Director Corporate Affairs Michalis Persianis Chief Legal Officer Katia Santis Manager Regulatory Affairs Director Wealth & Markets

BUSINESS LINES LEGACY

New Organisational Structure 5

Aligning the business with strategic priorities

12

Medium Term Guidance will be communicated with FY2019 FR

Creating a Stronger, Safer and future focused Bank

Outlook 6

Fully committed to accelerate de-risking

• rganically &

non-organically Focused on further improving efficiency to reflect our smaller revenue base, supported by on- going digital transformation Maintaining Good Capital Position

13

Group Financial Results for the nine months ended 30 September 2019

3Q2019 - Highlights

14

• New lending of €491 mn for 3Q2019 and €1.6 bn for 9M2019
• Total Income of €162 mn, Operating profit of €63 mn
• Recurring income from on-going insurance business (€12 mn in 3Q2019; €42 mn in 9M2019)
• Cost of risk at 0.90%
• Underlying profit of €18 mn for 3Q2019 and €35 mn for 9M2019
• Profit after tax of €19 mn for 3Q2019 and €116 mn for 9M2019
• Deposits flat qoq at €16.5 bn
• Loan to deposit ratio at 66%
• Liquidity surplus reduced to €3.0 bn on TLTRO repayment
• Liquidity management strategy underway for specific customer groups
• Total Capital ratio of 17.9%1 pro forma for disposal of investment in CNP2 and Voluntary Staff Exit Plan (VEP)3 (18.2%1 as reported)
• CET1 ratio of 14.9%1 pro forma for disposal of investment in CNP2 and VEP3 (15.2%1 as reported)

Positive Performance in 3Q2019 Active Liquidity Management Good Capital Position

• NPEs of €4.1 bn (€2.0 bn net); 73% reduction since 2014
• Gross NPE ratio reduced to 31%, coverage increased to 51%
• Organic NPE reduction continued ahead of guidance (€227 mn in 3Q2019; €684 mn in 9M2019)
• REMU sales of €355 mn in 9M2019
• Good momentum in efforts to accelerate de-risking with further portfolio sales

Balance Sheet Repair Continues at Pace

(1) Allowing for IFRS 9 transitional arrangements (2) In October 2019 the Bank completed the disposal of its entire shareholding of 49.9% in its associate CNP Insurance Holdings Limited (“CNP”). https://www.bankofcyprus.com/globalassets/investor- relations/press-releases/eng/20191007-completion-of-sale-of-cnp_eng_final.pdf (3) In October 2019, the Group announced the successful completion of a Voluntary staff Exit Plan (VEP). https://www.bankofcyprus.com/globalassets/investor-relations/press-releases/eng/20191031- vep_eng_final.pdf (4) Transactions involving deposits, cash withdrawals and transfers (5) This gross annual saving does not include any impact from the renewal of the collective agreement for 2019 which remains under discussion.

• Successful completion of VEP in 4Q2019 at one-off cost of €79 mn, supported by the on-going Digital Transformation Programme
• Full time employees reduced by 11%
• Gross annual savings5 in staff costs of 13% (€28 mn)
• Branch footprint rationalisation continues; further 8% reduction in branches in number of branches by the year end
• 75% of transactions4 through digital channels; 54% increase in active mobile banking users since June 2017

Cost Management Actions in 4Q2019 Supported by Digital Transformation

14.9% 15.2% 14.9% 17.9%

0.5% (0.3%) 0.2% (0.1%) 0.3% (0.6%) 1.6% 1.4%

CET1 30 Jun 2019 Operating profitability Loan credit losses and other impairments RWAs (organic) Other CET 1 30 Sep 2019 Disposal of CNP VEP CET 1 30 Sep 2019 pro forma for CNP and VEP AT1 T2 Total Capital ratio 30 Sep 2019 pro-forma for CNP and VEP

1 5 1,2 1,2

11.9% 14.9% 13.4% 16.2% 14.9% 17.8% 15.2% 18.2% 14.9% 17.9% CET 1 ratio Total capital ratio

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Sep 2019 pro-forma for CNP and VEP

RWA intensity at 65%

Capital at 14.9%, well above regulatory requirements

15

(1) Allowing for IFRS 9 transitional arrangements. (2) The CET1 ratio for 30 Sep 2019, including the full impact of IFRS 9 amounted to 13.6% and 13.3% pro forma for the completion of the disposal of the investment in CNP and the VEP (3) Loan credit losses and other impairments include the net change of the prudential charges relating to specific credits and other items (4) In October 2019 the Bank completed the disposal of its entire shareholding of 49.9% in its associate CNP Insurance Holdings Limited (“CNP”). https://www.bankofcyprus.com/globalassets/investor- relations/press-releases/eng/20191007-completion-of-sale-of-cnp_eng_final.pdf (5) In October 2019, the Group announced the successful completion of a Voluntary staff Exit Plan (VEP). https://www.bankofcyprus.com/globalassets/investor-relations/press-releases/eng/20191031- vep_eng_final.pdf (6) OCR(SREP)- Overall Capital Requirement comprises the Total SREP Capital Requirement (Pillar 1 and Pillar 2 Requirement) plus combined buffer requirements (capital conservation buffer, countercyclical buffer and systemic buffers) (7) New SREP requirements are expected to be effective as from January 2020, and are subject to ECB final 2019 SREP decision. Since 2015, the Bank has been designated as an Other Systemically Important Institution (O-SII). The Central Bank of Cyprus set the O-SII buffer for the Group at 2%. This buffer will be phased-in gradually, having started from 1 January 2019 at 0.5% and increasing by 0.5% every year thereafter, until being fully implemented (2.0%) on 1 January 2022

14.0%

Evolution of Capital Ratios

10.5%

CET1 ratio at 14.9%1,2; Total capital ratio at 17.9%1

min 2019 OCR (SREP)6 requirement

3 1,2 1 1,2 4

Unchanged SREP capital requirements expected for 2020 when ignoring the phasing-in

• f O-SII7 of 50 bps (see

slide 47)

Dec-17 Jun-19 Mar-19 Dec-14 Sep-19 Dec-16 Dec-18 Mar-19 pro forma for Helix

85% 85% 73% 70% 71% 64% 64% 65% Reduction of -20 p.p.

7.42 7.42 7.26 6.90 6.74 4.08 4.08

0.24 (0.40) (0.36) (0.16) (2.66) Dec 2018 Inflows Curing of restructured loans and collections Write-offs Foreclosures Helix Sep 2019

€10.9 bn or 73% NPE reduction since peak

€10.9 bn NPE reduction since 2014, of which c.€8.2 bn organic Organic reduction continues ahead of target of c.€800 mn for FY2019

• €3.34 bn

Group (€ bn)

1,2 (1) Includes consensual (debt for asset swaps, DFAs) and non consensual foreclosures and debt for equity swaps (2) Value of on boarded assets is set at a conservative 25%-30% discount from open market valuations, by two independent sources

16

9.9 8.5 6.5 4.6 3.6 2.4 2.2 2.0 7.4 Dec-15 Dec-14 Dec-17 Dec-18 Dec-16 14.0 Mar-19 pro forma for Helix Jun-19 Sep-19 15.0 11.0 8.8 4.6 4.3 4.1

• 73%
• €0.68 bn
• Gross NPE ratio reduced to 31% from 63% in Dec

2014

• Completion of sale of €2.7 bn NPEs (Helix) improved

NPE ratio by 11 p.p.

• Net NPE ratio reduced to 18% from 53% in Dec 2014

LLR Net NPEs

Gross NPE ratio reduced to 31%; 18% on a net basis

42% 62% 18% 63% Dec-15 35% 53% 55% Dec-14 50% 47% Dec-16 47% 30% 32% Dec-17 Dec-18 22% Mar-19 pro forma for Helix 33% 20% 31% Jun-19 Sep-19

• 32 p.p.

Gross NPE ratio Net NPE ratio Organic reduction: Group (€ bn)

11.36 7.18 6.26 3.74 3.65 3.55 0.64 0.27 0.34 0.34 0.22 0.19 1.97 1.35 0.87 0.53 0.44 0.34 13.97 8.80 7.47 4.61 4.31 4.08

Dec 15 Dec 17 Dec 18 Mar 19 pro forma for Helix Jun 19 Sep 19 Core NPEs

Non Core NPEs

(1) In pipeline to exit NPEs subject to meet all exit criteria; the analysis is performed on a customer basis

Core NPE risk at €3.55 bn, 56% covered

% of Gross Loans 50% 36% Coverage 4% 27% Core NPEs Forborne, NPEs, no arrears but impaired NPEs no impairment, no arrears1 € bn

17

56%

19% Core NPEs

Non Core NPEs (€ bn) Dec 18 Mar 19 Helix Mar 19

Pro forma for Helix

Jun 19 Sep 19 Sep 19 Coverage Corporate 0.68 0.58 (0.16) 0.42 0.28 0.22 SMEs 0.21 0.18 (0.05) 0.13 0.11 0.09 Retail 0.32 0.32 (0.00) 0.32 0.27 0.22 Total Non Core NPEs 1.21 1.08 (0.21) 0.87 0.66 0.53 19% Core NPEs (€ bn) Corporate 2.50 2.48 (1.88) 0.60 0.60 0.56 SMEs 1.60 1.47 (0.52) 0.95 0.84 0.78 Retail 2.16 2.24 (0.05) 2.19 2.21 2.21 Total Core NPEs 6.26 6.19 (2.45) 3.74 3.65 3.55 56% Contractual balance of Core NPEs 5.35 71%

Core NPEs 28%

55%

Core NPEs 28%

55%

Clear strategy for further NPE reduction

18

0.56 0.60 1.56

4.08

€2.72bn €0.83bn €0.53bn

Group NPEs (€ bn)

 Net organic reduction of €227 mn in 3Q2019 and of €684 mn for 9M2019, ahead of target of c.€800 mn for FY2019  Good momentum in efforts to accelerate de-risking with further portfolio sales

• Close monitoring of redefaults &

quality of restructurings

• Resolution of portfolio as per the Government-led scheme (see slide 7& 28)
• Clear definition of socially protected

Estia participants: 487 applications (c.€120 mn) received until 22 November 2019 Non viable: Alternative restructuring solutions being considered Remaining: Focus mainly on realising collateral via consensual & non consensual foreclosures

• Focus on realising collateral via consensual and non consensual foreclosures for non-Estia eligible clients
• On board assets in REMU at conservative c.25%-30% discount to open market value (OMV)
• Management continues to actively explore strategies to further accelerate de-risking including further

portfolio sales

• In a an advanced preparation phase of reviewing NPE reduction structures expected to be finalised

in 1H20203

• Include outright sales4
• Potential transactions involve in total NPE portfolio > €2 bn GBV

0.13 0.06 0.25 0.09 0.38 0.15 up to 31 Dec 2020 2021+ No impairments no arrears No arrears but Impaired Exit dates for non core NPEs1 (€ bn)

Core NPEs excluding ESTIA eligible2: €2.72 bn ESTIA eligible2: €0.83 bn

Non Core Estia participants Non-viable Remaining Retail- Non Estia eligible SME Corporate

Non Core: €0.53 bn

(1) In pipeline to exit NPEs subject to meet all exit criteria; the analysis is performed on a customer basis (2) ESTIA-eligible portfolio refers to the potentially eligible portfolio based on the Bank’s available data. Further, eligibility will be assessed on an individual level and borrowers will be eligible if they apply and meet the specific criteria of the Scheme as announced by the Government. Please refer to slide 28 for a summary of the Scheme. (3) The Group is not committed to any outcome arising from this preparation phase (4) Including the Bank retaining a portion of the related financing

Timeline

Jul 19 Sep 19 Oct1 9 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20

Signing of MOU1



Applications

Application period extended until the end of 2019

Restructuring solutions

• ffered to Applicants

Approval of applications by the Government Payment of 1st instalment

• f the state subsidy

 Clear definition of socially protected borrowers  ESTIA expected to:

• resolve part of ESTIA- eligible3 portfolio
• identify non-viable (vulnerable) customers and
• facilitate resolution of remaining customers mainly through consensual and non consensual foreclosures

Timeline

 Restructured

loans will exit NPE definition in accordance with the NPE exit criteria2

BOC current actions

 Establishment of dedicated teams and contact strategies developed to handle ESTIA-eligible customers3, including those who will choose not to participate in the scheme

• Interaction with interested customers on-going, aimed at building applicant pipeline

 487 applications received until 22 November 2019 since launch of the scheme (c.€120mn)  Pace of applications is accelerating in 4Q2019

ESTIA- Government scheme launched in September 2019

(1) The Memorandum of Understanding between the Ministry of Finance and the Banks participating in the Scheme was signed on 27 July 2019 (2) Please refer to slide 54 for the NPE forborne exit criteria (3) ESTIA-eligible portfolio refers to the potentially eligible portfolio based on the Bank’s available data. Further, eligibility will be assessed on an individual level and borrowers will be eligible if they apply and meet the specific criteria of the Scheme as announced by the Government. Please refer to slide 28 for a summary of the Scheme.

19

67% 67% 64% 62% 60% 58% 55% 53% 53% 53% 51% 51% 51% 47% 46% 43% 41% 39% 35% 33% 33% 33% 33% 31% 31% 28% 28% 27% 26% 26% 24% RO HU SK PL SI CZ HR AT IT BG PT BOC FR GR CY ES BE DE LU LT SE DK LV GB IS EE NO IE FI MT NL

NPE Coverage at 51%

20

41% 48% 52% 53% 48% 50% 51% 68% 67% 70% 70% 70% 69% 69% 109% 115% 122% 123% 118% 119% 120%

Dec 16 Dec 17 Dec 18 Mar 19 Mar 19 pro forma for Helix Jun 19 Sep 19

Loan loss reserves Tangible Collateral

(1) Loan credit losses on customer loans including off-balance sheet exposures, net of gains/(losses) on derecognition of loans and advances to customers and change in expected cash flows over average gross loans (2) Restricted to Gross IFRS balance (3) Based on EBA Risk Dashboard as at 30 June 2019

Quarterly CoR 1 at 0.90% NPE total coverage at 120% when collateral included NPE coverage remains above EU average

2

30 Sep 2019

EU average3: 44% 1.08% 0.80% 0.47% 0.77% 1.18% 0.93% 1.44% 1.23% 0.90%

1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 Quarterly Cost of Risk - Group Quarterly Cost of Risk - Group (excluding Helix)

545 260 164 969 352 1,265 1,394 330 527 436 1293 2016 2017 2018 9M2019 75 289 613 82 163 189 434 2016 2017 2018 9M2019

Foreclosures becoming an important tool in NPEs resolution

21

Foreclosure commenced4 Auctions held 969 properties resolved excluding Helix assets since Jan’2016

Consensual deals5 Sold at auction Repossessed2

• Auctions held for 434 assets in 9M2019
• c.1/5 properties auctioned are sold at auction
• Solution rate1 exceeds 70%
• 8 months time to auction (refer to slide 27)
• Reduce time of re-possession:
• Wait period reduced from 12 to 6 months from date of first

unsuccessful auction

• > 300 properties in the pipeline for repossession2

(1) The [number of cases resolved] as a proportion of [the number of cases that reached or would have reached an auction had they not closed prior to the auction set date] (2) Properties that have been auctioned unsuccessfully at least once (3) Principal Private Residence (4) The foreclosure process is considered to have commenced upon serving notice to the mortgagor (5) Includes DFAs, restructurings and settlements

• no. of properties
• no. of properties

Including Helix assets Including Helix assets Managed by REMU

• no. of properties

Foreclosure Law:

• The July 2018 foreclosure law amendments have expedited

the process and limited options to frustrate execution

• In July 2019, the Parliament voted through certain changes to the

2018 law which, in the most part, seek to:

• Provide additional checks and balances where banks are

seeking to foreclose small loans (<€350k) secured by a PPR3, and

• Extend the foreclosure timetable by extending various notice

periods

• These amendments have not yet passed into law, as they have

been referred to the Supreme Court by the President

• Discussions are on-going, including, inter alia the MoF, the CBC

and the Financial Ombudsman, aiming to introduce amendments to the foreclosure and loan restructuring framework that are acceptable to all stakeholders

1Q 2Q 3Q 1Q 2Q 3Q

448 160 142 103 160 89 Land Commercial Hotels Residential CyReit Overseas 274 527 214 86 1 Legacy3 2016 2017 9M2019 2018 46% 44% 37% 25%

195 160

179 330 238 355 2016 2017 2018 9M2019 Sales Cyreit

REMU: €1.10 bn sales of 1,459 properties since set-up in Jan 2016

22

 Asset disposal strategy tackles both value and volume of assets  46% of Legacy3 assets now sold  44% of 2016 book now sold  Asset disposals across all property classes  41% of sales (by value) relate to land

Sales contract prices1 (€ mn) Breakdown of cumulative sales1 by on-boarding year (€ mn) # 99 # 331 # 575 # 4542 # properties % Sales of vintage stock (BV)4 Sales €1.10 bn

• Encouraging trends on real estate market

 Residential Property prices up 2.7% yoy5  Sale contracts (excluding DFAs) up 15% yoy6

(1) Amounts as per Sales purchase Agreements (SPAs) (2) Number of properties sold include 21 properties from the disposal of Cyreit (3) Legacy properties relate to properties that were on-boarded before REMU set-up in January 2016 (4) The BV of the properties disposed at the date of disposal as a proportion of the [BV of the properties disposed at the time of the disposal plus the BV of the residual properties managed by REMU as at 30 Sep 2019] (5) Based on data from Land of Registry –Sales contracts (6) https://www.centralbank.cy/images/media/pdf/RPPI-2019Q1-GR0003.pdf

€1.10 bn

Breakdown of cumulative sales1 by property type (€mn) €1.10 bn

41% 15% 13% 9% 8% 14%

182 218 79 28 613 280 113

Residential Offices and other commercial properties Manufacturing and industrial Hotels Land and Plots Golf Greece and Romania

23

(1) In addition to assets held by REMU, properties classified as ‘Investment properties’ with carrying value of €24 mn as at 30 September 2019 relate to legacy properties (2) Assets in REMU on boarded at conservative prices c.25%-30% discount to open market value (OMV) (3) Amounts as per Sales purchase Agreements (SPAs)

Assets #

Cyprus: €1,400 mn €1,513 mn # 3,356 # 1,879 # 54 # 652 # 218 # 4 # 5 # 544

Organic sales in 9M2019 achieved at 116% of Book Value

Sales contract prices3 (€ mn) 195 100 51 32 Total Sales 9M2019 Commercial 12 Hotels Land Residential 95% 101% 97% 92% 94% 116% 127% 108% 122% 118% Net Proceeds / BV Gross Proceeds / OMV Sales contract prices3 (€ mn) 434 195 65 160 Offers accepted 9M2019 Sold 14 SPA in preparation SPA signed Cyreit Total Sales

• f €355 mn

€79 mn Pipeline

€355 mn sales at a profit of €26 mn in 9M2019 €79 mn in the pipeline

REMU sales achieved comfortably above Book Value

1,427 1,641 1,530 1,548 1,513 2016 2017 Sep 2019 2018 Jun 2019

Evolution of REMU stock1

Group BV (€ mn)

REMU stock1 split as at 30 Sep 2019

Group BV (€ mn)

37.1% 45.4% 46.7% 47.1% 41.3% 40.8%

Dec 17 Dec 18 Mar 19 May 19 before Helix Jun 19 after Helix Sep 19 74 81 106 121 161 259 371 429 Construction Manufacturing Professional and other services Hotels and restaurants Other Sectors Real estate Trade Private individuals 63 35 38 39 66 47 45 64 81 64 112 81 99 90 85 48 47 52 79 47 43 334 286 215 161 302 325 254 17 36 46 47 35 30 59 563 486 410 411 563 548 491 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 Retail Other Retail Housing SME Corporate Shipping & Syndicated loans

New lending1 of €1.6 bn in 9M2019

24

New lending Cyprus (€ mn) – 9M2019

New lending to core sectors driving GDP growth 98% of new exposures2 in Cyprus since 2016 are performing

New Lending (Cyprus) (€ mn)

(1) New disbursements in the reporting period including the average YTD change (if positive) for overdraft facilities (2) Facilities/Limits approved in the reporting period

Loan Market shares

378 355 335 338

4Q2018 1Q2019 2Q2019 3Q2019

Performing book effective yields

bps

• Lending rates remain under

pressure due to the sustained low interest rate environment

• Competitive pressure continues

reflecting the significant surplus liquidity in the market

9M2019:€1.6 bn 9M2018:€1.5 bn

• Drivers of interest income of Performing book: Competitive pressure on lending rates due to sustained low interest rate environment and significant excess

liquidity

• Drivers of interest income of Legacy book: Curing of restructured loans, DFAs, cash collections of interest on delinquent exposures

84 77 74 76 25 27 27 29 109 104 101 105

4Q2018 1Q2019 2Q2019 3Q2019

Performing Legacy

1

9.96 9.98 10.15 8.65 8.84 8.84 8.87 8.97 7.19 5.64 4.40 3.39 3.19 2.09 2.06 1.97 17.15 15.62 14.55 12.04 12.03 10.93 10.93 10.94

Dec-2015 Dec-2016 Dec-2017 Dec-2018 Mar-2019 Mar-2019 pro forma for Helix Jun-19 Sep-19

Performing Legacy

Balance sheet de-risking results in a smaller but safer loan book

25

€ mn (pre FTP) Interest Income on Loans (excluding Helix): Performing vs Legacy Net Loans: Performing vs Legacy € bn

Sale of BOC UK - €1.8 bn net loans 58% 82% 42% 18%

(1) Interest income on performing book for 1Q2019 increased from €74 mn to €77 mn since previously disclosed on 13 May 2019, due to reclassification between exposures

9M2019 9M2019 9M2019 Profitability

Interest Income on loans (€ mn) (pre FTP) 2271 83 310 Reversal/(Loan credit losses) (€ mn) 14 (131) (117) Interest Income net of loan credit losses (€ mn) 241 (48) 193 Cost of Risk

• 0.21%

4.40% 1.19% Effective Yield 3.43%1 5.35% 3.80% Risk adjusted Yield 3.65%1 (3.02%) 2.37%

Capital & balance Sheet

Average Net Loans2 (€ mn) 8,833 2,091 10,924 RWA Intensity3 57% 105% 65%

Performing Legacy Group

Risk adjusted yield will rise as Legacy book reduces

Corporate IB, W&M SME and Retail Banking Insurance and Other incl H/O RRD Overseas non core REMU

26

• Performing Book is expected to

grow and to increasingly drive Group results

• Legacy book revenues

predominantly driven by loan credit losses unwinding (but

• ffset via loan credit losses)
• Release of €15 mn of provisions

in performing book in 3Q2019 mainly due to loan migration from Stage 2 to Stage 1

• Interest on Net NPEs not

received in cash, fully provided (€19 mn in 3Q2019 and €59 mn in 9M2019)

• As Legacy book reduces:
• Group risk adjusted yield

expected to rise

• Group Risk intensity

expected to fall supporting CET1 ratio build

(1) Interest income on performing book for 1Q2019 increased from €74 mn to €77 mn since previously disclosed on 13 May 2019, due to reclassification between exposures (2) Interest Income on loans net of allowance for expected loan credit losses/Net Loans (3) Risk Weighted Assets over Total Assets

Excluding Helix

Deposits at €16,5 bn, flat qoq; Excess Liquidity reduced to €3.0 bn on TLTRO repayment

27

(1) Servicing exclusively international activity companies registered in Cyprus and abroad and not residents (2) Origin is defined as the country of the passport of the Ultimate Beneficial Owner (3) NSFR has not yet been introduced. NSFR will become a regulatory indicator when CRR2 is enforced, expected to occur in 2Q2021, with the limit set at 100%. The NSFR is calculated as the amount of “available stable funding” (“ASF”) relative to the amount of “required stable funding” (“RSF”), on the basis of Basel III standards

12.48 13.04 13.14 12.76 12.92 12.98 4.00 3.81 3.70 3.54 3.46 3.49 16.48 16.85 16.84 16.30 16.38 16.47 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19 Cyprus non-IBU Cyprus IBU 66% 21% 3% 4% 6%

Cyprus Other EU Other European Countries excluding Russia Russia Other Countries

Cyprus deposits by passport origin2

Cyprus deposits (€ bn)

Liquidity ratio Minimum required 30 Sep 2019 Surplus

LCR (Group) 100% 218% €2,997 mn NSFR3 100% 122% €2,934 mn

Liquidity management strategy underway for specific customer groups

1

31.1% 32.8% 36.0% 35.2% 34.7% 34.6% Dec 16 Dec 17 Dec 18 Mar 19 Jun 19 Sep 19

Strong deposit market share of 34.6% Cost of deposits reduced by 57 bps since Jan’18

bps 83 82 80 76 69 59 49 41 32 24 19

2Q18 1Q17 2Q17 4Q17 3Q17 1Q18 3Q18 4Q18 1Q19 2Q19 3Q19

• 57 bps

378 357 355 335 338 560 540 506 530 576

• 1

22 19 17 7

• 59
• 50
• 50
• 43
• 39

4Q2018 1Q2019 1Q2019 2Q2019 3Q2019

Performing Legacy Liquids Cost of funding

221

47.8% 48.0% 48.9% 49.7% 20.8% 11.9% 11.4% 11.2% 31.4% 40.1% 39.7% 39.1%

FY2018 w/o UK 1Q2019 2Q2019 3Q2019 Performing Legacy Liquids

€18.2 bn €18.2 bn €18.1 bn

Drivers of NIM

0.07% 5.76% 3.38% Effective yield

Liquidity build up

• Liquid assets1 decreased to c. €6.65 bn (-10% qoq) mainly due to the €830 mn

TLTRO repayment

• Challenging interest rate outlook continues to put pressure on the effective

yield of liquids Balance sheet de-risking –smaller but safer loan book

• Higher-yielding, higher-risk legacy loans are reducing as we successfully exit

NPEs Loan yields

• Performing book yields remain under pressure mainly due to the continued

lower interest rate environment

• Legacy book yields remain volatile

Cost of funding

• Improved to 39 bps, positively affected by the 5 bps reduction in cost of

deposits in 3Q2019

• Overall cost of deposits reduced by 57 bps since Jan’18

8.53 8.65 8.84 8.87 8.97 4.43 3.39 2.08 2.06 1.97 5.06 6.44 7.02 7.37 6.65 3.49 3.60 3.76 3.59 3.52 21.51 22.08 21.70 21.89 21.11

Dec 17 w/o UK Dec 18 Mar-19 Jun 19 Sep 19 Performing Legacy Liquids Non int-producing

NIM

AIEA

(bps)

28

Total Assets (€ bn) AIEA mix (% Total) Effective yield on assets & cost of funding

1 1 2 3 (1) Cash, placements with banks, balances with central banks and bonds (2) Effective yield of liquid assets: Interest income on liquids after hedging, over average liquids (Cash and balances with central banks, placements with banks and bonds) (3) Effective yield of cost of funding: Interest expense of all interest bearing liabilities after hedging, over average interest bearing liabilities (customer deposits, funding from the central bank, interbank funding, subordinated liabilities) (4) Interest income on performing book for 1Q2019 increased from €74 mn to €77 mn since previously disclosed on 13 May 2019, due to reclassification between exposures

189

€18.0 bn

188 227 Including Helix Excluding Helix

4

Pro forma for Helix

Excluding Helix 199

42 40 37 38 36 13 15 12 18 12

• 6

3 4 12 10 16 24 18 24 14 65 82 71 92 72

3Q2018 4Q2018 1Q2019 2Q2019 3Q2019

Net FX gains/(losses) & Net gains/(losses) on other financial instruments, and other income Gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties Insurance income net of insurance claims Net fee and commission income

25%

Recurring income

28% 23% 22%

48

23%

% Net fee and commission income % Total income

29

Non interest income of €72 mn in 3Q2019

Analysis of Non Interest Income (€ mn) – Quarterly 55 55 49

• Recurring income of €48 mn for 3Q2019, compared to €56 mn for 2Q2019, down 14% qoq mainly due to higher one-off insurance income in

2Q2019

• Net fee and commission income accounts for 23% of Total Income, compared to 22% the previous quarter
• Net gains2 decreased to €10 mn for 3Q2019, compared to €12 mn for 2Q2019; REMU profit remains volatile
• Net gains on financial instruments3 and other income of €14 mn for 3Q2019, compared to €24 mn in 2Q2019, affected mainly by one-off revaluation

gains on financial instruments in 2Q2019

• Following disposal of investment in associate CNP4, Group insurance arm remains well positioned for growth over medium term

(1) The interest income, non-interest income, staff costs, other operating expenses and loan credit losses related to Project Helix are disclosed under ‘Profit/(loss) relating to NPE sale (Helix)’ in the underlying basis (2) Gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties (3) Net FX gains/(losses) & Net gains/(losses) on other financial instruments, and other income (4) In October 2019, the Group announced the successful completion of a Voluntary staff Exit Plan (VEP). https://www.bankofcyprus.com/globalassets/investor-relations/press- releases/eng/20191031-vep_eng_final.pdf

56

Excluding Helix1

Total Expenses

30

7 5 6 7 6 6 6

1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019

Cost to Income Ratio (C/I ratio)1,3 Total operating expenses (€ mn)3 Special Levy and SRF contribution (€ mn)

• C/I ratio1 remained broadly flat at 58% for 9M2019 excluding

Helix, compared to 59% for 1H2019 on the same basis

• Staff costs for 3Q2019 broadly flat at €55 mn qoq
• Operating expenses for 3Q2019 reduced to €38 mn due to

seasonality and lower marketing expenses

50 52 52 54 56 56 55

4

37 43 34 42 41 43 38 87 95 86 100 97 99 93

1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 Staff costs Staff costs unrelated to 4Q2018 Other operating expenses

2 2 (1) Excludes special levy on banks and SRF contribution (2) Representation for deconsolidation of UK subsidiary in 3Q2018 (3) The interest income, non-interest income, staff costs, other operating expenses and loan credit losses related to Project Helix are disclosed under ‘Profit/(loss) relating to NPE sale (Helix)’ in the underlying basis (4) Additionally, c.100 FTEs relating to Helix expected to be transferred to the buyer upon full migration, expected to conclude soon after the year end. The staff costs related to these persons are included under ‘Profit/(loss) relating to NPE sale (Helix)’ in the underlying basis

Strategy going forward

• Digital Transformation Programme that started in

2017 beginning to clearly deliver an improved customer experience

• Considerable work is going on to further rationalise,

modernise and reduce costs

• Cost management, including containment of staff

costs, remains a key focus going forward

56% 62% 59% 58% 42% 47% 49% 50% 56%

1Q2018 1H2018 9M2018 FY2018 1Q2019 1H2019 9M2019 C/I ratio excluding Helix C/I ratio (as reported)

Excluding Helix4

Cost Management Actions Supported by Digital Transformation

31

11% reduction in FTEs following VEP completion Branch footprint rationalisation continues

4,355 4,146 4,134 3,664 Sep-19 pro forma for VEP Dec-18 Sep-19 Dec-17

• 11%

230 121 112 97 86 11 13 Dec-13 Dec-17 9 Dec-18 Dec-19 Sep-19 121 108 99

• 11%
• 8%

Management remains focused on further improvement in efficiency

• Successful completion of Voluntary Staff

Exit Plan (VEP) in 4Q2019 at one-off cost of €79 mn

• Gross annual savings1 in staff costs of

13% (€28 mn)

• Staff reduced by ~470 FTEs or 11%
• Additionally, c.100 FTEs relating to Helix

expected to be transferred to the buyer upon full migration, expected to conclude soon after the year end

• The renewal of the collective agreement for

2019 is under discussion

• 13 branches closed (-11%) year to date
• Additional 9 branches (-8%) to be closed by the

end of the year  Overall 57% reduction in number of branches since 2013

Cash offices Branches

(1) This gross annual saving does not include any impact from the renewal of the collective agreement for 2019 which remains under discussion.

€ mn (comparables adjusted for Helix) 9M2019 9M20181,2 3Q20191 2Q20191 qoq% yoy%

Net Interest Income 260 250 90 85 5% 4% Non interest income 235 244 72 92

• 22%
• 4%

Total income 495 494 162 177

• 9%

0% Total expenses (307) (286) (99) (105)

• 6%

7% Operating profit 188 208 63 72

• 13%
• 10%

Loan credit losses (117) (104) (30) (40)

• 26%

12% (Impairments)/ reversal of impairments of other financial and non-financial instruments (9) (12) 1 (9)

• 109%
• 21%

(Provisions)/ reversal of provisions for litigation, regulatory and matters (3) (9) (6) 3

• 62%

Total loan credit losses, impairments and provisions (129) (125) (35) (46)

• 27%

4% Restructuring costs-Organic (21) (26) (9) (5) 99%

• 18%

Profit/ after tax-Organic 35 56 18 21

• 15%
• 38%

Profit from discontinued operations (BOC UK)

• 4
• Profit/ (loss) relating to NPE sale (Helix)

1 (105) 1 4

• Loss on remeasurement of investment in associate

classified as held for sale (CNP) net of share of profit from associates (21) 8 (0) (23)

• Reversal of impairment of DTA and impairment of
• ther tax receivables

101

• Profit/ (loss) after tax-attributable to owners

116 (37) 19 2

• Net Interest margin (annualised)

1.92% 1.84% 1.99% 1.89% +10 bps +8 bps Cost to income ratio 62% 58% 61% 59% +2 p.p. +4 p.p. Cost-to-Income ratio adjusted for the special levy and SRF contribution 58% 54% 57% 56% +1 p.p. +4 p.p. Cost of Risk (annualised) 1.19% 1.00% 0.90% 1.23%

• 33 bps

+19 bps EPS – Organic (€ cent) 7.8 12.6 4.1 4.8

• 0.7
• 4.8

Income Statement

32

Key Highlights

(1) The interest income, non-interest income, staff costs, other operating expenses and loan credit losses related to Project Helix are disclosed under ‘Profit/(loss) relating to NPE sale (Helix)’ in the underlying basis (2) Including the impact from IFRIC Presentation of unrecognised interest following the curing of a credit-impaired financial asset (IFRS 9)). This resulted to a reclassification between net interest income and loan credit losses, with no impact on the overall profitability

• NII increased to €90 mn in 3Q2019,

mainly helped by the further decrease

• f the cost of deposits and the

increased interest cash collections not previously recognised

• Non-Interest Income at €72 mn for

3Q2019, compared to €92 mn for 2Q2019 that was affected by higher

• ne-off insurance gains
• Total expenses for 3Q2019 at €99 mn

compared to €105 mn for 2Q2019 (ref to slide 20) due to lower operating expenses and staff costs

• Loan credit losses decreased to €30 mn

in 3Q2019, compared to €40 mn, in 2Q2019

• Restructuring costs of €9 mn for

3Q2019, reflecting the continued efforts to accelerate de-risking

• Profit after tax of €19 mn for 3Q2019
• Profit after tax of €116 mn for

9M2019

33

CEO Priorities

• Maintain good capital position
• Fully committed to accelerate de-risking, organically and non-organically
• Focused on further improving efficiency to reflect our smaller revenue base,

supported by our on-going Digital Transformation Programme Medium Term Guidance will be communicated with FY2019 FR

Creating a Stronger, Safer and future focused Bank

Credit Ratings: Standard & Poor’s Global Ratings: Long-term issuer credit rating: Affirmed at “B+” on 30 July 2019 (stable outlook) Short-term issuer credit rating: Affirmed at “B” on 30 July 2019 Fitch Ratings: Long-term Issuer Default Rating: Affirmed at “B-" on 21 March 2019 (positive outlook) Short-term Issuer Default Rating: Affirmed at “B" on 21 March 2019 Viability Rating: Affirmed at “b-” on 21 March 2019 Moody’s Investors Service: Baseline Credit Assessment: Affirmed at “caa1” on 24 January 2019 Short-term deposit rating: Affirmed at "Not Prime" on 14 June 2019 Long-term deposit rating: Affirmed to “B3” on 14 June 2019 (positive outlook) Counterparty Risk Assessment: Affirmed at B1(cr) / Not-Prime (cr) on 14 June 2019 Listing: LSE – BOCH, CSE – BOCH/ΤΡΚΗ, ISIN IE00BD5B1Y92

Visit our website at: www.bankofcyprus.com

Tel: +35722122239, Email: investors@bankofcyprus.com Annita Pavlou Investor Relations Manager, Tel: +357 22 122740, Email: annita.pavlou@bankofcyprus.com Elena Hadjikyriacou (elena.hadjikyriacou@bankofcyprus.com), Marina Ioannou (marina.ioannou@bankofcyprus.com) Andri Rousou (andri.rousou@bankofcyprus.com), Stephanie Koumera (stephanie.koumera@bankofcyprus.com)

Investor Relations Contacts Finance Director

Eliza Livadiotou, Tel: +35722 122128, Email: eliza.livadiotou@bankofcyprus.com

Key Information and Contact Details

34

Appendix – Macroeconomic overview

35

3.3 3.1 3.0 3.8 3.5 3.2

• 10.0
• 8.0
• 6.0
• 4.0
• 2.0

0.0 2.0 4.0 6.0 8.0 2011 2012 2013 2014 2015 2016 2017 2018 3Q2019 Real GDP Quarterly SA % change y-o-y Real GDP SA annualised % change y-o-y 398 360 411 7.5 7.3 340 360 380 400 420 440 460 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0

2009Q4 2010Q2 2010Q4 2011Q2 2011Q4 2012Q2 2012Q4 2013Q2 2013Q4 2014Q2 2014Q4 2015Q2 2015Q4 2016Q2 2016Q4 2017Q2 2017Q4 2018Q2 2018Q4 2019Q2

Employment in 000s (4Q average NSA (RHS) Unemployment rate SA (%)

4

(1) SOURCE: Statistical Service of Republic of Cyprus; Bloomberg; (2) Normalised against Germany Government bond with maturity 15/8/2025 except Greece (3) Due to the Debt swap of the Hellenic Republic, from November 2017 onwards data for the new Hellenic Republic Bond with maturity 30/01/2028 was used and normalised against the closest maturity of German Government bond (DBR) 15/08/2027 (4) Official estimate from Eurostat’s monthly data (5) SA: Seasonally Adjusted

36

Recovery of the Cypriot economy continues

S&P credit ratings Spreads (%)

Cyprus upgraded to investment grade by S&P and Fitch in 4Q2018 Reduction in spreads as a result of reduction in government bond yields

A+ Dec 12 Apr 13 Jul 13 Oct 13 Feb 14 May 14 Aug 14 Dec 14 Mar 15 Jun 15 Sep 15 Jan 16 Apr 16 Jul 16 Oct 16 Feb 17 May 17 Aug 17 Dec 17 Mar 18 Jun 18 Oct 18 Jan 19 Apr 19 Jul 19 Nov 19 Cyprus Portugal Italy Spain Greece Ireland A BBB BBB- BB-

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9

Apr 2016 Jul 2016 Sep 2016 Nov 2016 Jan 2017 Apr 2017 Jun 2017 Aug 2017 Oct 2017 Jan 2018 Mar 2018 May 2018 Jul 2018 Oct 2018 Dec 2018 Feb 2019 Apr 2019 Jun 2019 Sep 2019 Nov 2019 Cyprus - maturity 4/11/2025 Portugal - maturity 15/10/2025 Spain - maturity 31/10/2025 Italy - maturity 01/12/2025 Greece - maturity 30/01/2028

1 1 1 1 2

GDP increased by 3.0% in 3Q2019 Unemployment rate dropped to 7.3% in 2Q2019 SA4 compared with a yearly average unemployment rate of 8.4% for FY2018

4 4 4 3

Economic activity has been broadly based with main drivers tourism and construction

37

… driven by tourism, professional services and construction activity

33.0% 30.0% 29.0% 25.0% 24.0% 21.0% 19.0% 12.5% 12.5%

Corporate tax rate (2018)

Double taxation avoidance treaties with more than 60 countries 38.9% 38.9% 22.2% Upper secondary Less than Upper secondary Tertiary

Level of education 2018, age 15-64

Cyprus has the highest number of university graduates in the population in the EU after the UK and Ireland

Tourism arrivals (mn) Tourism: % changes yoy Support from key business enablers

SOURCES; Statistical Service of Republic of Cyprus, Eurostat; Calculations by BOC Economic Research

2.4 2.5 2.4 2.4 2.7 3.2 3.7 3.9 3.2 3.3

Construction activity – strong recovery in 2017-19; building permits spiked in Apr-June 2019 driven by luxury hotels

19.8 14.6 7.8 0.6 11.9 11.7 2.7

• 1.7

2016 2017 2018 2019 Sep YTD (Aug for receipts) Total arrivals (% change) Total receipts (% change) 19.3 15.5 13.3 25.8 15.2 16.6 67.9 27.1 41.9

• 21.9

12.7 92.0

• 40.0
• 20.0

0.0 20.0 40.0 60.0 80.0 100.0

% changes year-on-year

Production index in construction Building permits volume 1.2 0.0 0.4 0.2 1.0 1.0 1.5 1.1 1.6 1.6 1.1 0.5 1.5 1.0 0.2 0.7

• 0.8
• 0.5
• 0.4
• 0.5

0.6 0.4 0.6 0.5 0.4 0.6 0.5 0.4 6.7 4.4 4.1 3.3 Arts & Oher Public, Edu. & Health

• Prof. & Admin

Real Est. Financial Information Trade, Tran. & Tour. Construction

• Agric. & Industry

GVA

Appendix – Additional asset quality slides

38

As from 1 January 2018 and following IFRS 9 implementation, the Bank’s disclosure in relation to the loan portfolio quality is based on Non Performing Exposures (NPEs), in line with the EBA standards and ECB NPEs Guidance to the banks. Exposures that meet the NPE definition are considered to be in default and hence credit-impaired and are classified in Stage 3 under IFRS 9 staging classification. Such loans are also considered to be in default for credit risk management purposes.

Foreclosure Law

• The July 2018 foreclosure law amendments1 have expedited the process and limited options to frustrate execution
• In July 2019 the Parliament has voted through certain changes to that law which, in the most part, seek to:

– Provide additional checks and balances where banks are seeking to foreclose small loans (<€350k) secured by a PPR, and – Extend the foreclosure timetable by extending various notice periods

• These amendments have not yet passed into law, as the President of the Republic has referred these to the Supreme Court, based
• n legal advice from the Attorney General that elements thereof are unconstitutional.
• Discussions are on-going, including, inter alia the MoF, the CBC and the Financial Ombudsman, aiming to introduce amendments

to the foreclosure and loan restructuring framework that are acceptable to all stakeholders.

Sale of Loans Law

Amendments1 approved in July 2018 aim to improve the law and close current gaps that hindered the use of the law via:  Improving the framework around transfer of rights and obligations to the buyer

• Regulating the transfer of rights, obligations, benefits, continuity of lawsuits etc between parties
• Splitting of collateral to cover disposed part of loan in case of cross-collateralisation of loans
• Transfer of collaterals to the name of the buyer without further costs

Other changes

Tax legislation  Incentives to customers agreeing consensual solutions continue including exception of capital gains tax and transfer fees in sale

• f property to banks

 Additional exemption for sale of property directly to third party introduced Insolvency framework  Changes aim to close gaps and enhance the participation and applicability of personal repayment schemes for physical persons

Securitisation Law

 Easier for banks to securitise NPLs  Regulated by CBC

Service time of Notices Servicing Time + 40 days Auction Property transfer & Distribution of proceeds 1-50 days immediately after auction TIMEFRAME Valuations 30-1151 days

TIME UP TO AUCTION: ~ 8 MONTHS2

Foreclosure Decision Service Announcement 3-5 days + Servicing Time + 30 days

The legislative framework1 positively supports organic delivery and the sale of NPEs

(1) Amendments to the Foreclosure Legislation, the Sale of Loans Law, the Insolvency framework and the introduction of the Securitisation Law came into effect on 13/7/2018 (2) The timeframe up to the first auction of 8 months relates to the period from the commencement of the foreclosure (the foreclosure process is considered to have commenced upon serving notice to the mortgagor) up to the first auction.

39

ESTIA- Government scheme for the resolution of NPEs backed by Primary Residence

• Eligible loans to be restructured to lower of contractual and Open Market Value (OMV) (on balance sheet solution)
• Government to subsidise 1/3 of instalment, provided certain eligibility criteria1 are met:
• Borrowers with loans linked to a Primary Residence (PR) with OMV ≤ €350k
• At least 20% of the total borrower’s credit exposures > 90 days past due as at 30 Sept 2017
• Annual gross income < €20k to €60k, ranging from €20k for single persons to €60k for couples with 4 or more

dependents

• Other household’s net assets, excluding the PR <80% of the OMV of the PR. Cap on value of asset of €250k
• European citizen with legal and continuous residency in EU since 2013

Scheme summary

(1) Please refer to slide 54 for the NPE forborne exit criteria

40

 Restructured loans will exit NPE definition in accordance to the NPE exit criteria1

Clear definition of socially protected borrowers, acting as enabler against non-Estia eligible borrowers Expected to resolve part of ESTIA-eligible portfolio, identify non-viable (vulnerable) customers and facilitate resolution of remaining customers through alternative solutions

0.04 0.06 0.04 0.01 0.01 0.05 0.05 0.06 0.03 0.03 0.02 0.08 0.03 0.02 0.01 0.11 0.19 0.13 0.06 0.05

3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 Redefaults New inflows Unlikely to pay

(0.09) (0.05) (0.10) (0.11) (0.06) (0.05) (0.10) (0.06) (0.08) (0.02) (0.13) (0.16) (0.12) (0.14) (0.07) (0.05) (0.06) (0.04) (0.09) (0.32) (0.37) (0.28) (0.37) (0.24)

3Q2018 4Q2018 1Q2019 2Q2019 3Q2019 Curing of restructured loans DFAs & DFEs Write offs and non contractual write offs Other (Interest / Collections / Change in balances)

41

Good NPE outflows & low inflows in 3Q2019, leading to €227 mn net organic reduction

Cyprus operations (€ bn)

Quarterly NPE outflows of €243 mn Quarterly NPE inflows of €50 mn

Cyprus operations (€ bn)

92% 70% 67% 86% 44% 64% 69% 65% 100% 62% 66% 75% 100% 74% 65% 81% 60% 82% 70% 72% 71% 58% 70% 68% 90% 86% 81% 85% 98% 92% 84% 88% 100% 72% 87% 90%

0% 20% 40% 60% 80% 100%

1 2 3 4

2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 72% 71% 80%

Weighted Avg since Apr-17

0.27 0.16 0.13 0.11 0.10 0.12 0.06 0.40 0.29 0.13 0.16 0.12 0.14 0.07 0.12 0.07 0.05 0.10 0.06 0.08 0.02

0.79 0.52 0.31 0.37 0.28 0.34 0.15

1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019

Restructured loans Write offs & non contractual write offs DFAs

(1) Write offs in 1Q2018 include a net impact of (c.€11 mn) of IFRS 9 grossing up and set offs (2) Excluding write offs & non contractual write offs and DFAs and terminated accounts (3) The performance of loans restructured during 3Q2019 is not presented in this graph as it is too early to assess

Restructuring efforts continue; re-default levels stable

42

Corporate SMEs Retail Total Bank – Cyprus

Quarterly evolution of restructuring activity (€ bn) (Cy operations) Cohort analysis of restructured 2,3 loans; 80% of restructured loans present no arrears

1

NO ARREARS

92%

Fair value of collateral and adequacy of loan credit losses

43

Quarter Gross Contractual Balance € mn Surplus/(Gap) in loan credit losses € mn

• No. of Customers

1Q2015 6.0 1.4 148 2Q2015 79.2 16.0 242 3Q2015 20.2 0.0 441 4Q2015 65.7

• 2.1

551 1Q2016 158.3 0.5 1,276 2Q2016 266.9 12.1 2,298 3Q2016 124.5 13.9 115 4Q2016 71.9

• 1.1

2,343 1Q2017 119.2 1.2 2,194 2Q2017 200.9 7.5 2,369 3Q2017 75.7 7.8 1,081 4Q2017 137.6 1.8 498 1Q2018 71.7

• 3.9

427 2Q2018 44.1 2.6 390 3Q2018 37.4

• 0.2

343 4Q2018 47.9 1.6 322 1Q2019 excl. Helix 31.9 1.3 319 2Q2019 39.6 1.6 878 3Q2019 44.1 2.1 336 1,642.8 64.1 16.571

• Resolution of cases within loan credit losses continued in

3Q2019

• Back-testing of over 16k fully settled customers over last 19

quarters on average within c.10% surplus over net book value

Back-testing of loan credit losses supports past loan credit losses adequacy NPE Coverage at 51%

Loans and advances to customers 30 Sep 2019 (€ mn)

Cash 452 Securities 631 Letters of credit / guarantee 178 Property 15,599 Other 1,096 Surplus collateral (8,206) Net collateral 9,750 Fair value of collateral and credit enhancements

58 41 29 40 47 47 40 30 51% 52% 52% 52% 53% 48% 50% 51% 42% 47% 52%

1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 1Q2019 pro forma for Helix 2Q2019 3Q2019 Quarterly Credit losses of customer loans (€ mn) NPEs coverage (excluding Helix)

Terminated Retail 1.54 Retail 0.90 Terminated SMEs 0.55 SME 0.31 Terminated Corporate 0.12 Corporate 0.57

Sep 19

2.44 2.48 2.50 2.55 2.47 (0.06) 0.02 (0.05) 0.03 (0.05) 0.08

Sep 19 Exits Inflows Jun 19 Exits Inflows Mar 19 pro forma Helix Mar 19 Inflows Dec 18

0.86 0.94 1.08 1.64 1.75 (0.09) 0.01 (0.15) 0.01 (0.56) (0.12) 0.01

Sep 19 Exits Inflows Jun 19 Exits Inflows Mar 19 pro forma Helix Mar 19 Exits Inflows Dec 18

€0.69 bn €0.86 bn €2.44 bn

NPE ratio 0.69 0.77 0.90 2.89 3.01 (0.10) 0.02 ( 0.15) 0.02 (1,99) (0.16) 0.04

Sep 19 Exits Inflows Jun 19 Exits Inflows Mar 19 pro forma Helix Mar 2019 Exits Inflows Dec 18

14% NPE ratio 41%

Corporate SME Retail

NPE coverage 51% 58% NPE coverage

Continuous progress across all segments (Cy operations)

NPE total coverage 105% NPE total coverage 122%

Focus shifts to Retail and SME after intense Corporate attention

41%

44

Sep 2019 NPE ratio 42% NPE coverage 56% NPE total coverage 123% Sep 2019 Sep 2019

NPEs (Cy) €3.99 bn

5.00 3.99 3.19 3.07 1.02 0.88 0.77 2.99 2.02 1.76 1.65 1.09 0.95 0.87 1.77 1.57 1.49 1.50 1.50 1.45 1.41 1.27 1.22 0.98 1.05 1.00 1.03 1.03

11.03 8.80 7.42 7.27 4.61 4.31 4.08

Dec-16 Dec-17 Dec-18 Mar-19 Mar-19 pro forma Helix Jun-19 Sep-19 Retail Other Retail Housing SMEs Corporate

Gross loans & NPEs by Customer Type

9.47 9.01 7.06 7.07 4.96 5.00 5.03 4.35 3.51 2.98 2.88 2.30 2.15 2.06 4.22 4.17 4.07 4.07 4.07 4.07 4.07 2.09 2.06 1.79 1.86 1.82 1.85 1.88

20.13 18.75 15.90 15.88 13.15 13.07 13.04

Dec-16 Dec-17 Dec-18 Mar-19 Mar-19 pro-forma for Helix Jun-19 Sep-19 Retail other Retail Housing SMEs Corporate

45

Gross loans by customer type (€ bn) NPEs by customer type (€ bn)

1 1

(1) Reporting as at 31 December 2017 includes transfers within RRD business lines following an internal reorganisation of RRD in 4Q2017

51% 43% 46% 51% 57% 53% 54% 56% 39% 39% 40% 41% 58% 56% 57% 58% 51% 47% 49% 50% 72% 62% 59% 54% 70% 69% 68% 67% 84% 84% 85% 85% 57% 60% 60% 60% 72% 71% 70% 69% 123% 105% 105% 105% 127% 122% 122% 123% 123% 123% 125% 126% 115% 116% 117% 118% 123% 118% 119% 119%

Dec 2018 Mar 2019 pro forma for Helix Jun 2019 Sep 2019 Dec 2018 Mar 2019 pro forma for Helix Jun 2019 Sep 2019 Dec 2018 Mar 2019 pro forma for Helix Jun 2019 Sep 2019 Dec 2018 Mar 2019 pro forma for Helix Jun 2019 Sep 2019 Dec 2018 Mar 2019 pro forma for Helix Jun 2019 Sep 2019 Loan loss reserves Tangible Collateral

NPE coverage and Total coverage by segment (Cy)

46

Coverage and collateral maintained post Helix

1

Cyprus operations

(1) Restricted to Gross IFRS balance

Total Cyprus €4.0 bn Corporate €0.7 bn SME €0.9 bn Retail-Housing €1.4 bn Retail-Other €1.0 bn

Asset Quality- NPEs analysis

(€ mn) Sep-19 Jun-19 Mar-19 Dec-18 Sep-18

• A. Gross Loans after Fair value on Initial recognition

12,757 12,782 15,437 15,438 15,721 Fair value on Initial recognition 278 290 445 462 480

• B. Gross Loans

13,035 13,072 15,882 15,900 16,201

• B1. Loans with no arrears

8,794 8,565 8,402 8,260 8,330

• B2. Loans with arrears but not NPEs

156 195 207 221 249 1-30 DPD 119 150 138 166 184 31-90 DPD 37 45 69 55 65

• B3. NPEs

4,085 4,312 7,273 7,419 7,622 With no arrears 802 949 1,356 1,482 1,615 Up to 30 DPD 69 89 108 136 117 31-90 DPD 86 125 183 231 179 91-180 DPD 159 149 240 178 236 181-365 DPD 251 225 316 393 347 Over 1 year DPD 2,718 2,775 5,070 4,999 5,128 NPE ratio (NPEs / Gross Loans) 31% 33% 46% 47% 47% Allowance for expected loan credit losses (including fair value adjustment on initial recognition1) 2,086 2,145 3,846 3,852 3,993 Gross loans coverage 16% 16% 24% 24% 25% NPEs coverage 51% 50% 53% 52% 52%

47

(1) Comprise (i) loan credit losses for impairment of customer loans and advances, (ii) the fair value adjustment on initial recognition of loans acquired from Laiki Bank and on loans classified at FVPL, and (iii) loan credit losses on off-balance sheet exposures disclosed on the balance sheet within other liabilities

45% 53% 32% 76% 33% 45% 52% 51% 49% 52% 28% 68% 53% 43% 46% 34% 47% 51% 26% 69% 49% 43% 44% 34% 34% 32% 9% 38% 27% 39% 33% 17% 32% 29% 8% 36% 24% 38% 32% 17%

Trade Manufacturing Hotels and Catering Construction Real estate Private individuals Professional and

• ther services

Other sectors

31.12.17 31.12.18 31.03.19 30.06.19 30.09.2019

Analysis of gross loans and NPE ratio by Economic Activity

48

2.04 0.66 1.39 2.34 3.20 6.77 1.31 1.04 1.85 0.64 1.27 1.95 1.61 6.47 1.20 0.91 1.83 0.66 1.35 1.90 1.59 6.41 1.25 0.91 1.46 0.45 1.08 0.90 1.26 6.13 1.07 0.72 1.41 0.47 1.08 0.89 1.29 6.10 1.04 0.76

Trade Manufacturing Hotels & Restaurant Construction Real Estate Private Individuals Professional and

• ther services

Other sectors

31.12.17 31.12.18 31.03.19 30.06.19 30.09.19 10% 11% 47% 8% 6%

% of total

7% 8% 3%

Gross loans by economic activity (€ bn) NPE ratio by economic activity

Rescheduled Loans for the Cyprus Operations

3.4 3.0 2.7 2.5 2.4 2.2 2.1 0.9 0.9 1.7 1.3 1.3 1.3 1.2 1.0 0.9 0.6 0.5 0.6 0.6 0.5 0.5 0.5 0.5 0.5 0.5 0.5 1.7 1.4 1.4 1.3 1.3 1.1 1.2 1.1 1.0 7.4 6.3 5.9 5.6 5.4 4.8 4.7 3.1 2.9

31.12.16 31.12.17 31.03.18 30.06.18 30.09.18 31.12.18 31.03.19 30.06.19 30.09.2019

Retail housing Retail consumer SMEs Corporate

44% 41% 40% 27% 40% 40% 35% 27% 32% 34% 29% 25% 31% 32% 28% 27% 19% 26% 27% 28% 18% 24% 26% 28%

Corporate SMEs Retail housing Retail Consumer 31.12.16 31.12.17 31.12.18 31.03.19 30.06.19 30.09.2019

49

Rescheduled Loans by customer type (€ bn) Rescheduled loans1 % gross loans by customer type Rescheduled loans – Asset Quality 30 June 2019 € ‘000 Stage 1 268,761 Stage 2 489,556 Stage 3 1,716,474 POCI 215,411 FVPL 229,710 Total 2,919,912

(1) Reporting as from 31 December 2017 includes transfers within RRD business lines following an internal reorganisation of RRD in 4Q2017

Gross loans and allowance for expected loan credit losses by IFRS 9 stage

50

(1) Includes purchased or originated credit-impaired

Gross Loans (€ bn) 30 Sep 2019 30 Jun 2019 qoq %

Stage 1 6.26 6.02 4% Stage 21 2.70 2.74

• 2%

Stage 31 4.08 4.31

• 5%

Total 13.04 13.07 0%

Allowance for expected loan credit losses (€ bn) 30 Sep 2019 30 Jun 2019 qoq %

Stage 1 0.08 0.08 6% Stage 21 0.07 0.08

• 14%

Stage 31 1.94 1.98

• 3%

Total 2.09 2.14

• 3%
• Increase in Stage 1 loans by c. €240 mn in

3Q2019, attributable mainly to:

• High quality of new lending
• Loan migration from Stage 2 to

Stage 1

• Net reduction of Stage 3 loans by €227

mn in 3Q2019

SOURCE: Central Bank of Cyprus, Cyprus Land Registry 1) In addition to assets held by REMU, properties classified as ‘Investment properties’ with carrying value of €24 mn as at 30 September relate to legacy properties

REMU – the engine for dealing with foreclosed assets

51

55 71 28 42 30 62 67

1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019

Book Value Sales of €67 mn for the 3Q2019 (Group) Encouraging trends in Real Estate Market; Property prices up 2.7% in 1Q2019

4306 3430 4,527 4,952 7,063 8,734 9,242 7,736

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Jan-Sep

Sales to Cypriots Sales to Non-Cypriots

Sales contracts – Excluding DFAs (number of contracts)

75.6 77.2

1.5 2.7

• 12.0
• 10.0
• 8.0
• 6.0
• 4.0
• 2.0

0.0 2.0 4.0

30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 110.0 120.0

Central Bank Residential Property Price index

Residential Propert Price index (2010Q1=100) % change y-o-y (RHS)

Sale contracts (excl. DFAs) in 2019 Jan-Sep up 15% yoy

BV (€ mn) BV (€ mn)

REMU focus now on sales (Group)

1,427 1,399 103 159 114 Sales Properties managed by REMU as at 01 Jan 2019 Additions (159) (12) Impairment loss (5) Transfer to non-current assets and disposal groups held for sale Properties managed by REMU as at 30 Sep 2019 1,530 1,513 Investment Properties

1 1

Appendix – Additional financial information

52

Assets (€ mn) 30.09.2019 31.12.2018 (restated) % change Cash and balances with Central Banks 4,413 4,610

• 4%

Loans and advances to banks 428 473

• 9%

Debt securities, treasury bills and equity investments 1,975 1,515 30% Net loans and advances to customers 10,971 10,922 0% Stock of property 1,399 1,427

• 2%

Investment properties 138 127 8% Other assets 1,601 1,531 5% Non current assets and disposal groups classified as held for sale 189 1,470

• 87%

Total assets 21,114 22,075

• 4%

Liability and Equity (€ mn) 30.09.19 31.12.18 (restated) % change Deposits by banks 451 432 4% Funding from central banks

• 830
• 100%

Repurchase agreements 250 249 1% Customer deposits 16,473 16,844

• 2%

Subordinated loan stock 268 271

• 1%

Other liabilities 1,190 1,082 10% Total liabilities 18,632 19,708

• 5%

Shareholders’ equity 2,234 2,121 5% Other equity instruments 220 220

• Total equity excluding non-

controlling interests 2,454 2,341 5% Non controlling interests 28 26 9% Total equity 2,482 2,367 5% Total liabilities and equity 21,114 22,075

• 4%

Consolidated Balance Sheet

53

Comparative information was restated following the change in the classification of properties which are leased out under operating leases as investment properties. In relation to these properties, an amount of €103 mn was reclassified from ‘Stock of property’ to ‘Investment Properties’.

37.5% 37.1% 38.6% 45.4% 47.1% 41.3% 40.8% 31.1% 32.8% 35.1% 36.0% 34.7% 34.7% 34.6%

Dec 16 Dec 17 Jun 18 Dec 18 May 19 before Helix Jun 19 after Helix Sep 19

Loans new basis Deposits

Core Cypriot business

54

(1) The market share on loans was affected as from 30 September 2018 following a decrease in total loans in the banking sector, mainly attributed to €6 bn non-performing loans of Cyprus Cooperative Bank (CyCB) which remained to SEDIPES (a legal entity without license to operate as a credit institution) as a result of the agreement between CyCB and Hellenic Bank

29.5% 31.5% 34.1% 35.3% 34.4% 34.0% 34.6% 35.8% 37.3% 38.8% 38.3% 38.2% 37.2% 34.7%

Dec 16 Dec 17 Jun 18 Dec 18 Mar 19 Jun 19 Sep 19

Residents Non-residents

1

Market shares1 Strong market shares in resident and non-resident deposits

133 121 108 91 77 58 47 39 3 2 2 1 1 1 1 1

• 50
• 30
• 10

4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 3Q2019

Time & Notice accounts Savings and Current accounts Cost of deposits

Customer deposit rates decline further (bps) (Cy)

491 486 483 475 468 460 413 402 69 59 49 41 32 24 24 19 422 427 434 434 436 436 389 383

1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019 2Q2019 3Q2019 Yield on Loans Cost of Deposits Customer spread

Average contractual interest rates (bps) (Cy)

76 69 59 49 32 41 24 Excluding Helix 19

€ mn Underlying basis Helix Portfolio Investment in associate classified as HFS Tax related items Other Statutory Basis Net interest income 260 34

• 294

Net fee and commission income 111 9

• (6)
• 114

Net foreign exchange gains and net gains on financial instrument transactions 34

• 1

35 Insurance income net of claims and commissions 42

• 42

Net gains from revaluation and disposal of investment properties and on disposal of stock

• f properties

26

• 26

Other income 22

• 22

Total income 495 43

• (6)

1 533 Total expenses (307) (25)

• (24)

(356) Operating profit 188 18

• (6)

(23) 177 Loan credit losses (117) (17)

• (1)

(135) Impairments of other financial and non-financial instruments (9)

• (8)
• (17)

Provisions for litigation, regulatory and other matters (3)

• 3
• Remeasurement of investment in associate classified as held for sale
• (26)
• (26)

Share of profit from associate

• 5
• 5

Profit before tax and non-recurring items 59 1 (21) (14) (21) 4 Tax (1)

• 115
• 114

(Profit) attributable to non-controlling interests (2)

• (2)

Profit after tax and before non-recurring items 56 1 (21) 101 (21) 116 Advisory and other restructuring costs – excluding discontinued operations and NPE sale (Helix) (21)

• 21
• Profit after tax – Organic

35 1 (21) 101

• 116

Profit relating to NPE sale (Helix) 1 (1)

• Loss relating on remeasurement of investment in associate classified as held for sale

(CNP) net of share of profit from associates (21)

• 21
• Reversal of impairment of DTA and impairment of other tax receivables

101

• (101)
• Profit after tax (attributable to the owners of the Company)

116

• 116

Income Statement bridge1 for 9M2019

(1) Please refer to section F1 “Reconciliation of income statement between statutory and underlying basis” of the Group Financial Results for the period 30 September 2019

55

Analysis of Interest Income and Interest Expense

56

Analysis of Interest Income (€ mn)

1Q20191,2 2Q20192 3Q2019 Loans and advances to customers 104 101 105 Loans and advances to banks and central banks 2 2 1 Investments available-for-sale

• Investment at amortised costs

3 3 3 Investments FVOCI 5 5 6 Investments classified as loans and receivables

• 114

111 115 Trading Investment

• Derivative financial instruments

9 9 9 Other investments at fair value through profit or loss

• Total Interest Income

123 120 124

Analysis of Interest Expense (€ mn)

Customer deposits (13) (10) (8) Funding from central banks and deposits by banks (1) (1) (1) Subordinated loan stock (6) (6) (6) Repurchase agreements (2) (2) (2) Negative interest on loans and advances to banks and central banks (4) (4) (5) (26) (23) (22) Derivative financial instruments (12) (12) (12) Total Interest Expense (38) (35) (34)

(1) Interest income on loans and advances to customers for 1Q2019 increased from €101 mn to €104 mn and Interest income on loans and advances to banks and central banks decreased to €2 mn from €5 mn since previously disclosed on 13 May 2019, due to reclassification of between exposures (2) The interest income, non-interest income, staff costs, other operating expenses and loan credit losses related to Project Helix are disclosed under ‘Profit/(loss) relating to NPE sale (Helix)’ in the underlying basis

€ mn Consumer Banking SME Banking Corporate Banking International Banking Wealth & Markets RRD REMU Insurance Treasury Other Total Cyprus Net interest income/(expense) 113 29 89 26 5 11 (10) 3 266 Net fee & commission income 33 7 13 38 2 17

• (4)

2 3 111 Other income 2

• 1

6 2

• 22

42 20 27 122 Total income 148 36 103 70 9 28 12 38 22 33 499 Total expenses (131) (17) (26) (30) (6) (46) (7) (15) (6) (16) (300) Operating profit 17 19 77 40 3 (18) 5 23 16 17 199 Loan credit losses of customer loans net of gains/(losses) on derecognition

• f loans and changes in expected cash

flows (7) 4 15 1 1 (131)

• (117)

(Impairment)/ reversal of impairment of

• ther financial and non financial

instruments

• (10)
• 3

(7) Provision for litigation and regulatory matters

• (1)

(1) Share of profits from associates

• Profit/(loss) before tax

10 23 92 41 4 (149) (5) 23 16 19 74 Tax (1) (3) (11) (5) 20 (2) (2) 3 (1) Profit attributable to non controlling interest

• (2)

(2) Profit/(loss) after tax and before restructuring costs, Helix, UK sale and reversal of DTA impairment and impairment of tax receivables 9 20 81 36 4 (129) (5) 21 14 20 71

Cyprus: Income Statement by business line1 for 9M2019

57 Excluding Helix

(1) The interest income, non-interest income, staff costs, other operating expenses and loan credit losses related to Project Helix are disclosed under ‘Profit/(loss) relating to NPE sale (Helix)’ in the underlying basis

€ mn 30.09.19 Group Equity per financial statements 2,482 Less: Intangibles (43) Less: Deconsolidation of insurance and other entities (197) Less: Regulatory adjustments (IFRS 9 and other items) 108 Less: Revaluation reserves and other unrealised items transferred to Tier II (252) CET 1 1 2,098 Risk Weighted Assets 13,758 CET 1 ratio 1 15,2%

Risk Weighted Assets – Regulatory Capital

31.12.18 31.03.192 30.06.193 30.09.192 Total equity excl. non-controlling interests 2,341 2,443 2,443 2,454 CET1 capital 1,864 2,058 2,080 2,098 Tier I capital 2,084 2,278 2,300 2,318 Tier II capital 212 213 192 188 Total regulatory capital (Tier I + Tier II) 2,296 2,491 2,492 2,506

58

(1) Allowing for IFRS 9 transitional arrangements (2) Capital ratios include unaudited/un-reviewed profits for 1Q2019 and 9M2019 (3) Capital ratios include reviewed profits for 1H2019

31.12.17 31.12.18 31.03.19 Helix 30.06.19 30.09.2019 Cyprus 16,011 15,070 15,113 (1,452) 13,680 13.550 Russia 27 24 23 21 15 United Kingdom 922 84 77 69 69 Romania 118 38 37 40 16 Greece 168 144 128 136 102 Other 14 13 13 16 6 Total RWA 17,260 15,373 15,391 (1,452) 13,962 13,758 RWA intensity 73% 70% 71% 64% 65% 31.12.17 31.12.18 31.03.19 Helix 30.06.19 30.09.2019 Credit risk 15,538 13,833 13,852 (1,514) 12,361 12,219 Market risk 5 2

• 62

62

• Operational risk

1,717 1,538 1,539

• 1,539

1,539 Total 17,260 15,373 15,391 (1,452) 13,962 13,758

Risk weighted assets by Geography (€ mn) Reconciliation of Group Equity to CET 1 Risk weighted assets by type of risk (€ mn) Equity and Regulatory Capital (€ mn)

Unchanged SREP capital requirements for 20201 when ignoring the phasing-in of O-SII4

59

• P2R unchanged at 3.0%
• CCB unchanged at 2.5% (fully phased-in)
• O-SII increased to 1.0% (additional 50 bps phasing in)
• Per EBA final guidelines on SREP and supervisory stress testing and the Single Supervisory Mechanism’s (SSM) 2018

SREP methodology own funds held for the purposes of Pillar II Guidance cannot be used to meet any other capital requirements (Pillar 1, Pillar II requirement or the combined buffer requirements), and therefore cannot be used twice6.

(1) New SREP requirements are expected to be effective as from January 2020, and are subject to ECB final 2019 SREP decision. (2) Pillar 2 requirement in the form of CET1 (3) In accordance with the legislation in Cyprus which has been set for all credit institutions the applicable rate of the CCB was fully phased in at 2.5% in 2019 (4) Since 2015, the Bank has been designated as an Other Systemically Important Institution (O-SII). The Central Bank of Cyprus set the O-SII buffer for the Group at 2%. This buffer will be phased-in gradually, having started from 1 January 2019 at 0.5% and increasing by 0.5% every year thereafter, until being fully implemented (2.0%) on 1 January 2022 (5) Additional Tier 1 Capital (6) The new provisions are expected to be effective from January 2020 and remain subject to ECB final confirmation

SREP requirements for 2020: CET1 ratio at 11.0% SREP requirements for 2020 : Total Capital ratio at 14.5%

1 2

3,0% 2019 4,5% 3,0%

2,5%

0,5% 1,0% 2,5% 4,5% 2020

O-SII

CCB Pillar 2R Pillar 1 10,5% 11,0% 1,5% 0,5% 2,5% 2,5% 3,0% 2019 O-SII 2,0% Pillar 1 4,5% 1,0%

3,0%

2,0% 2020 1,5% 4,5% CCB Pillar 2R Tier 2 AT1 14,0% 14,5%

Total Pillar 1

• f 8%

2 3 4 4 5 3

11.0% 0.5% 14.9%

• c. 11.5%

CET1 30 Sep 2019 Pro forma for CNP & VEP 1 Jan 20203 MDA Threshold

Buffer to MDA Restrictions Level & Distributable Items1

CET1 Ratios (Pro forma for CNP & VEP)

Unfilled AT1 + T2 capacity

340 bps

[ ] bps Distance to MDA CET1 Ratio (%) CET1 Req Unfilled AT1 & T2 Bucket

(1) Distributable Items definition per CRR (2) Based on the SREP decisions of prior years, the Company and the Bank were under a regulatory prohibition for equity dividend distribution and therefore no dividends were declared or paid during years 2018 and 2017. Following the 2018 SREP decision, the Company and the Bank are still under equity dividend distribution prohibition. This prohibition does not apply if the distributions are made via the issuance of new ordinary shares to the shareholders which are eligible as CET1 capital (3) Including phasing in of O-SII buffer (+50 bps)

Distributable Items at Bank and BOCH level

• Distributable Items amount to:
• Bank: c.€0.4bn and
• BOCH: c.€0.7bn
• No prohibition applies to the payment of coupons on any AT1 capital

instruments issued by the Company and the Bank2

• Significant CET1 MDA buffer 3 (1 Jan 2020) : ~340bps (~€460 mn)

Maximum Distributable Amount for BOCH

60

12.40 13.83 14.96 14.53 14.69 14.75 2.20 1.74 1.48 1.38 1.30 1.34 1.69 2.11 0.29 0.29 0.28 0.28 0.22 0.17 0.11 0.10 0.11 0.10

16.51 17.85 16.84 16.30 16.38 16.47

Dec-16 Dec-17 Dec-18 Mar-19 Jun-19 Sep-2019 EUR USD GBP Other Currencies

Analysis of Deposits

90% 8% 2%

61

Deposits by Currency (€ bn) 30 Sep 2019 (%) 30 Sep 2019 (%)

48% 9% 43% 9.27 10.00 8.78 8.44 8.14 7.94 1.06 1.54 1.35 1.37 1.42 1.46 6.18 6.31 6.71 6.49 6.82 7.07

16.51 17.85 16.84 16.30 16.38 16.47

Dec-16 Dec-17 Dec-18 Mar-19 Jun-19 Sep-19

Time deposits Savings accounts Current & demand accounts

1

Deposits by Type (€ bn)

6.73 6.63 5.96 5.70 5.79 5.80 0.80 0.91 0.83 0.76 0.76 0.79 8.98 10.31 10.05 9.84 9.83 9.88

16.51 17.85 16.84 16.30 16.38 16.47

Dec-16 Dec-17 Dec-18 Mar-19 Jun-19 Sep-19 Corporate SME Retail

1

Deposits by customer Sector (€ bn) 30 Sep 2019 (%)

35% 5% 60%

(1) The reduction relates to the sale of BOC UK in Sep-18

1

Reduction in Overseas Non-Core Exposures

44 31 23 21 19 18 149 79 35 33 34 32 42 9 7 7 8 11 1 1 283 193 164 152 152 138 518 312 240 214 214 188

Dec 2016 Dec 2017 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Russia: Net exposure Romania: Net exposure Serbia: Net exposure UK: Net exposure Greece: Net exposure

62

• The

Group continues its efforts for further deleveraging and disposal of non-essential assets and operations in Greece, Romania and Russia

• In accordance with the Group’s strategy to exit from
• verseas non-core operations, the operations of the

branch in Romania were terminated in January 2019, following the completion of deregistration formalities with respective authorities

• During 3Q2019 the Group completed the sale of the
• verseas exposures in Serbia, with a carrying value
• f €8 mn
• In addition as at 30 September 2019, there were

€279 mn of overseas exposures in Greece (€311 mn at 30 June 2019) not identified as non-core exposures

Overseas non-core exposures (€ mn)

Appendix – Glossary & Definitions

63

Glossary & Definitions

64

Allowance for expected credit losses on loans and advances to customers (previously accumulated provisions) Allowance for expected credit losses to cover credit risk on loans and advances to customers comprise: (i) allowance for ECL on loans and advances to customers, (ii) the fair value adjustment on initial recognition of loans and advances to customers, (iii) allowance for expected credit losses for off-balance sheet exposures (financial guarantees and commitments) disclosed on the balance sheet within other liabilities and (iv) accumulated fair value adjustments on loans and advances to customers classified at FVPL Advisory and other restructuring costs Comprise mainly: fees of external advisors in relation to: (i) disposal of operations and non-core assets, and (ii) customer loan restructuring activities AIEA Average Interest Earning Assets include: cash and balances with central banks, plus loans and advances to banks, plus net loans and advances to customers, plus investments (excluding equities and mutual funds). AT1 AT1 (Additional Tier 1) is defined in accordance with Articles 51 and 52 of the Capital Requirements Regulation (EU) No 575/2013. Average contractual interest rates Interest rates on cost of deposits were previously calculated as the Interest Expense over Average Balance. The current calculation which the Bank considers more appropriate is based on the weighted average of the contractual rate times the balance at the end of the month. The rates are calculated based on the month end contractual interest rates. The quarterly rates are the average of the three quarter month end contractual rates Book Value BV= book value = Carrying value prior to the sale of property BOC UK sale Comparatives have been represented for the results of Bank of Cyprus UK Limited (‘BOC UK’) and its subsidiary, Bank of Cyprus Financial Services Limited (‘BOC FS’, and together the ‘UK Group’), from continuing operations to discontinued operations CET1 capital ratio (transitional basis) CET1 capital ratio (transitional basis) is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013 CET1 fully loaded (FL) The CET1 fully loaded (FL) ratio is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013 Cost of Funding Effective yield of cost of funding: Interest expense of all interest bearing liabilities after hedging, over average interest bearing liabilities (customer deposits, funding from the central bank, interbank funding, subordinated liabilities). Historical information has been adjusted to take into account hedging Contribution to SRF Relates to the contribution made to the Single Resolution Fund Cost to Income ratio Cost-to-income ratio comprises total expenses (as defined) divided by total income (as defined) Cost of Risk Loan credit losses charge (cost of risk) (year to date) is calculated as the annualised ‘loan credit losses’ (as defined) divided by average gross loans (the average balance calculated as the average of the opening balance and the closing balance) CRR DD Default Definition DFAs Debt for Asset Swaps DFEs Debt for Equity Swaps DTA Deferred Tax Assets EBA European Banking Authority ECB European Central Bank

Glossary & Definitions

65

Effective yield Interest Income on Loans/Average Net Loans Effective yield of liquid assets Interest Income on liquids after hedging, over average liquids (Cash and balances with central banks, placements with banks and bonds). Historical information has been adjusted to take into account hedging Foreclosures Value of on-boarded assets is set at a conservative 25%-30% discount from open market valuations, by two independent sources; Includes consensual and non consensual DFAs and DFEs FTP Fund transfer pricing methodologies applied between the business lines to present their results on an arm’s length basis GBV Gross Book Value Gross Loans Gross loans are reported before the fair value adjustment on initial recognition relating to loans acquired from Laiki Bank (calculated as the difference between the outstanding contractual amount and the fair value of loans acquired) amounting to €278 mn at 30 September 2019 (compared to €290 mn at 30 June 2019 and €462 mn at 31 December 2018). Additionally, gross loans (i) include loans and advances to customers measured at fair value through profit and loss of €430 mn at 30 September 2019 (compared to €454 mn at 30 June 2019 and €456 mn as at 31 December 2018), and (ii) are reported after the reclassification between gross loans and expected credit losses on loans and advances to customers classified as a disposal group held for sale of Nil as at 30 September 2019 and 30 June 2019 (compared to €99 mn at 31 December 2018). Gross Sales Proceeds Proceeds before selling charge and other leakages GVA Gross Value Added Group The Group consists οf Bank of Cyprus Holdings Public Limited Company, “BOC Holdings” or the “Company”, its subsidiary Bank of Cyprus Public Company Limited, the “Bank” and the Bank’s subsidiaries H/O Head Office IB, W&M International Banking, Wealth and Markets IBU Servicing exclusively international activity companies registered in Cyprus and abroad and not residents Legacy Legacy relates to RRD, REMU and non-core overseas exposures Loan credit losses Loan credit losses comprise: (i) credit losses to cover credit risk on loans and advances to customers, (ii) net gains on derecognition of financial assets measured at amortised cost and (iii) net gains on loans and advances to customers at FVPL. LLR (Loans Loss Reserve) Please refer to allowance for expected loan credit losses as defined above (previously ‘Accumulated provisions’) Market shares Both deposit and loan market shares are based on data from the Central Bank of Cyprus. The Bank is the single largest credit provider in Cyprus with a market share of 40.8% at 30 September 2019, compared to 41.3% at 30 June 2019, 46.7% at 31 March 2019, 45.4% at 31 December 2018 and as at 30 September 2018, 38.6% at 30 June 2018 and 37.4% at 31 March 2018. The market share on loans was affected as at 30 June 2019 following the derecognition of the Helix portfolio upon the completion of Project Helix announced on 28 June 2019. The market share on loans was affected during the quarter ended 31 March 2019 following a decrease in total loans in the banking sector of €1 bn, mainly attributed to reclassification, revaluation, exchange rate and other adjustments (CBC). The market share on loans was affected as at 30 September 2018 following a decrease in total loans in the banking sector, mainly attributed to €6 bn non- performing loans of Cyprus Cooperative Bank (CyCB) which remained to SEDIPES as a result of the agreement between CyCB and Hellenic Bank. The market share on loans was affected as at 30 June 2018 following a decrease in total loans in the banking sector of €2.1 bn, due to loan reclassifications, revaluations, exchange rate or other adjustments (CBC).

Glossary & Definitions

66

Net Proceeds Proceeds after selling charges and other leakages Net fee and commission income over total income Fee and commission income less fee and commission expense divided by total income (as defined) Net interest margin (NIM) Net interest margin is calculated as the net interest income (annualised) divided by the quarterly average interest earning assets. Average interest earning assets exclude interest earning assets of any discontinued operations at each quarter end, if applicable. Interest earning assets include: cash and balances with central banks, plus loans and advances to banks, plus net customer loans and advances, plus investments (excluding equities and mutual funds) Net loans and advances to customers Comprise gross loans (as defined) net of allowance for expected loan credit losses (as defined, but excluding credit losses on off-balance sheet exposures). Net loan to deposit ratio Net loan to deposit ratio is calculated as gross loans (as defined) net of allowance for expected loan credit losses (as defined) divided by customer deposits. New lending New lending includes the average YTD change (if positive) for overdraft facilities Non-interest income Non-interest income comprises Net fee and commission income, Net foreign exchange gains and net gains on financial instrument transactions and loss on disposal/dissolution of subsidiaries and associates (excluding net gains on loans and advances to customers at FVPL), Insurance income net of claims and commissions, Net gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties, and Other income Non-recurring items Non-recurring items as presented in the ‘Interim Condensed Consolidated Income Statement – Underlying basis’ relate to: (i) advisory and other restructuring costs, (ii) discontinued operations (UK sale), (iii) profit/(loss) relating to NPE sale (Helix), (iv) loss relating to sale of associate (CNP) including share of profit from associates, and (v) reversal of impairment of DTA and impairment of other tax receivables. NPEs Non-Performing Exposures (NPEs) –as per the EBA definition: According to the EBA reporting standards on forbearance and non-performing exposures (NPEs), published on 2014 and ECB’s Guidance to Banks on Non-Performing Loans published on March 2017 a loan is considered an NPE if: 1. the debtor is assessed as unlikely to pay its credit obligations in full without the realisation of the collateral, regardless of the existence of any past due amount or of the number of days past due 2. the exposures are impaired or 3. there are material exposures which are more than 90 days past due, or 4. there are performing forborne exposures under probation for which additional forbearance measures are extended, or 5. there are performing forborne exposures under probation that present more than 30 days past due within the probation period. The NPEs are reported before the deduction of accumulated loan credit losses(as defined) The exit criteria of NPE forborne are the following: 1. The extension of forbearance measures does not lead to the recognition of impairment or default 2. One year has passed since the forbearance measures were extended 3. There is not, following the forbearance measures, any past due amount or concerns regarding the full repayment of the exposure according to the post forbearance conditions NPE coverage ratio (previously ‘NPE Provision coverage ratio’) The NPE coverage ratio is calculated as the allowance for expected loan credit losses (as defined) over NPEs (as defined). NPE ratio NPEs ratio is calculated as the NPEs as per EBA (as defined) divided by gross loans (as defined). NPEs sales Include Helix and Velocity sales of GBV of €2.7 bn and €33 mn as at 31 March 2019

Glossary & Definitions

67

NSFR The NSFR is calculated as the amount of “available stable funding” (ASF) relative to the amount of “required stable funding” (RSF), on the basis of Basel III

• standards. Its calculation is a SREP requirement. The European Banking Authority (EBA) is working on finalising the NSFR and enforcing it as a regulatory ratio

under CRR2, currently expected in 2021 OMV Open Market Value Operating profit Comprises profit before Total loan credit losses, impairments and provisions (as defined), tax, (profit)/loss attributable to non-controlling interests and non- recurring items (as defined) p.p. percentage points Performing Relates to all business lines excluding Restructuring and Recoveries Division (“RRD”), REMU and non-core overseas exposures Phased-in Capital Conservation Buffer (CCB) In accordance with the legislation in Cyprus which has been set for all credit institutions, the applicable rate of the CCB is 1.25% for 2017, 1.875% for 2018 and 2.5% for 2019 (fully phased-in). Pro forma for Helix In addition to the impact from Project Helix, this pro forma also included the impact from the agreement for the sale of a portfolio of retail unsecured NPEs, with gross book value €33 mn as at 31 March 2019, known as Project Velocity Loan credit losses for impairment of customer loans Credit losses for impairment of customer loans and gains/(losses) on derecognition of loans and changes in expected cash flows on acquired loans. Profit/(loss) after tax and before restructuring costs, discontinued operations and NPE sale (Helix) Excludes advisory and other restructuring costs. It also excludes profit/(loss) from discontinued operations and any restructuring costs or loss relating to the NPE sale (Helix) Profit after tax-organic Profit/(loss) after tax and before ‘non-recurring items’ as defined, except for the “Advisory and other restructuring costs – excluding discontinued operations and NPE sale (Helix)”. qoq Quarter on quarter change Restructured loans Restructuring activity within quarter as recorded at each quarter end and includes restructurings of NPEs, performing loans and re-restructurings Risk adjusted yield Interest Income on Loans net of allowance for expected loan credit losses/Net Loans RRD Restructuring and Recoveries Division RWA Risk Weighted Assets RWA Intensity Risk Weighted Assets over Total Assets Special levy Relates to the special levy on deposits of credit institutions in Cyprus Stage 2 & Stage 3 Loans Include purchased or originated credit-impaired Tangible Collateral Restricted to Gross IFRS balance

Glossary & Definitions

68

Total Capital ratio Total capital ratio is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013 Total expenses Total expenses comprise staff costs, other operating expenses and the special levy and contribution to the Single Resolution Fund. It does not include ‘advisory and other restructuring costs-excluding discontinued operations and NPE sale (Helix)’ or any restructuring costs relating to NPE sale (Helix). Advisory and other restructuring costs-excluding discontinued operations and NPE sale (Helix)’ for 3Q2019 were €9 mn, compared to €5 mn for 2Q2019. ‘Advisory and other restructuring costs-excluding discontinued operations and NPE sale (Helix)’ for 9M2019 were €21 mn, compared to €26 mn for 9M2018. Restructuring costs relating to NPE sale (Helix) for 3Q2019 were €1 mn, compared to €7 mn for 2Q2019. Restructuring costs relating to NPE sale (Helix) for 9M2019 were €9 mn, compared to €17 mn for 9M2018. Total income Total income comprises net interest income and non-interest income (as defined) Total loan credit losses, impairments and provisions Total loan credit losses, impairments and provisions comprises loan credit losses (as defined), plus (provisions)/reversal of provisions for litigation, regulatory and

• ther matters plus (impairments)/reversal of impairments of other financial and non-financial assets.

T2 Tier 2 Capital Underlying basis Statutory basis adjusted for certain items as explained in the Basis of Presentation. Write offs and non contractual write offs Loans together with the associated loan credit losses are written off when there is no realistic prospect of future recovery. Partial write-offs, including non- contractual write-offs, may occur when it is considered that there is no realistic prospect for the recovery of the contractual cash flows. In addition, write-offs may reflect restructuring activity with customers and are part of the terms of the agreement and subject to satisfactory performance. yoy Year on year change

This document contains certain forward-looking statements which can usually be identified by terms used such as “expect”, “should be”, “will be” and similar expressions or variations thereof or their negative variations, but their absence does not mean that a statement is not forward-looking. Examples of forward-looking statements include, but are not limited to, statements relating to the Group’s near term and longer term future capital requirements and ratios, intentions, beliefs or current expectations and projections about the Group’s future results of operations, financial condition, expected impairment charges, the level of the Group’s assets, liquidity, performance, prospects, anticipated growth, provisions, impairments, business strategies and opportunities. By their nature, forward-looking statements involve risk and uncertainty because they relate to events, and depend upon circumstances, that will or may occur in the future. Factors that could cause actual business, strategy and/or results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements made by the Group include, but are not limited to: general economic and political conditions in Cyprus and other European Union (EU) Member States, interest rate and foreign exchange fluctuations, legislative, fiscal and regulatory developments and information technology, litigation and other operational risks. Should any

• ne or more of these or other factors materialise, or should any underlying assumptions prove to be incorrect, the actual

results or events could differ materially from those currently being anticipated as reflected in such forward looking

• statements. The forward-looking statements made in this document are only applicable as from the date of publication of this
• document. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or

undertaking to release publicly any updates or revisions to any forward looking statement contained in this document to reflect any change in the Group’s expectations or any change in events, conditions or circumstances on which any statement is based.

The financial information included in this presentation is neither reviewed nor audited by the Group’s external auditors. This financial information is presented in Euro (€) and all amounts are rounded as indicated. A comma is used to separate thousands and a dot is used to separate decimals. Important Notice Regarding Additional Information Contained in the Investor Presentation The presentation for the Group Financial Results for the nine months ended 30 September 2019 (the “Presentation”) is available on https://www.bankofcyprus.com/en-GB/investor-relations-new/reports- presentations/financial-results/ and includes additional financial information not presented within the Group Financial Results Press Release (the “Press Release”), primarily relating to (i) NPE analysis (movements by segments and customer type), (ii) rescheduled loans analysis, (iii) details of historic restructuring activity including REMU activity, (iv) analysis of new lending, (v) Income statement by business line, (vi) NIM and interest income analysis and (vii) Loan portfolio analysis in accordance with the three-stages model for impairment of IFRS 9. Except in relation to any non-IFRS measure, the financial information contained in the Investor Presentation has been prepared in accordance with the Group’s significant accounting policies as described in the Group’s Annual Financial Report 2018, and updated in the Interim Financial Report 2019. The Investor Presentation should be read in conjunction with the information contained in the Press Release and neither the financial information in the Press Release nor in the Investor Presentation constitutes statutory financial statements prepared in accordance with International Financial Reporting Standards.

Disclaimer

69