[PPT] - Bank of Cyprus Group Investor presentation January 2017 Key PowerPoint Presentation

SLIDE 1

Bank of Cyprus Group

Investor presentation January 2017

SLIDE 2

Key messages

BOC is the largest bank in Cyprus
Dominant position in a recovering Cypriot economy
Significant reduction in 90+DPD3 and NPEs
Strategic focus on core Cypriot business and

expansion of UK operations

World class Board of Directors
Experienced management team
Full repayment of €11,4 bn of ELA
Funding structure normalised
Strong capital position

Significant progress achieved in normalising the Bank Strong market position with a clear strategy going forward

Strong local market insight
Turnaround experience
Proven track record of delivering results

11.4 0.0 Apr 2013 Jan 2017

ELA (€ bn) GDP growth in Cyprus CET1 ratio Asset quality (€ bn)

12.7 14.8 8.8 11.9 90+DPD NPE 14.6% 13.5% BOC Peer avg² 1.7% 2.8% 2.2% 2015 2016E 2017E

Market share in Cyprus1

41.1% 30.1% Loans Deposits Peak

Strong leadership

Source: IMF, MOF (1) As of October 2016 (2) Based on EBA Risk Dashboard Report, data as at 30 June 2016 (3) 90+DPD: defined as loans past-due for more than 90 days and those that are impaired (impaired loans are those which are not considered fully collectable and for which a provision for impairment has been recognised on an individual basis or for which incurred losses exist at their initial recognition or customers in Debt Recovery)

Jun 2015 Sep 2016 13.8% 13.0% BOC Peer avg² Transitional Fully loaded

2

SLIDE 3

Introduction: The journey so far…

SLIDE 4

Decisive actions and deleveraging have put the Bank on a firm path to normalisation

March 2013:

Sale of Greek
perations

Sep 2013:

AGM and

election of new BoD Nov 2013:

Appointment
f new CEO

Nov 2015:

Extension of

CEO appointment Dec 2014:

Relisting

in Cyprus and Greece Sep 2014:

€1,0 bn

share capital increase Nov 2014:

Election of

new BoD Mar 2016:

Announcement
f intention to

list on the LSE Dec 2015:

Changes to ECB

provisioning assumptions leading to enhanced coverage Sep 2015:

Sale of

Uniastrum and other Russian assets Jun 2014:

Laiki

integration completion Sep 2014:

Sale of

various Romanian assets May 2014:

Sale of

Serbian exposure Apr 2015:

Sale of

95% stake in Marfin Diversified Strategy Fund Apr 2014:

Sale of

Ukrainian

perations
Sale of 10%

stake in Banca Transilvania Oct 2013:

Sale of

Kyprou Asset Management

2013 2014 2015 2016

Jan 2015:

Share capital

increase: completion of Retail Offer Feb 2015:

Listing of the Retail

Offer Shares and commencement of trading Oct 2015:

Covered bond

becomes eligible asset for Eurosystem credit

perations; ELA

reduced to €4,5 bn Oct 2014:

Successfully

passes the 2014 ECB CA1

(1) ECB Comprehensive Assessment (2) Ex Laiki UK Loan portfolio (3) Total VEP amounted to 429 (1st VEP: 75, 2nd VEP: 354)

Jun 2016:

Completion
f voluntary

exit plan for 354 personnel3 Aug 2016:

Cancellation
f €1bn

Government Guaranteed Bonds Jun 2016:

Completion
f the sale of

Kermia Hotels Ltd and adjacent land for €26,5 mn March 2013:

Placed under

Resolution: – absorption of Laiki Bank (including €9,1 bn of ELA) – bail-in of uninsured depositors

Suspension of

trading on CSE and ATHEX Nov 2014:

Sale of UK

loan book2 November 2016:

Announcement that

the Bank is applying for a standard listing

n LSE;
Publication of

Shareholder circular and prospectus relating to the transaction Jan 2017:

ELA fully

repaid Dec 2016:

ELA reduced to €0,2 bn
EGM approval of

resolutions in relation to creation of new holding company

New holding company

scheme of arrangement sanctioned by court

2017 4

SLIDE 5

Current shareholding of BOC (Oct-2016) Current Board composition

9.9% 9.6% 5.2% 5.0% 1.6% 55.4% 13.2% Lamesa Holding S.A. (an affiliate of Renova Group) Cyprus Popular Bank Public Co Ltd TD Asset Management S.A. EBRD WL Ross Other: Institutional investors and legal persons Other: Individuals

Name Designation

Dr. Josef Ackermann

Chairman Independent

Mr. Wilbur Ross

Vice Chairman Independent1

Mr. Maksim Goldman

Vice Chairman Non Executive

Mr. John Patrick Hourican

CEO Executive

Dr. Christodoulos Patsalides

Deputy CEO and COO Executive

Mr. Arne Berggren

Board member Independent

Mr. Marios Kalochoritis

Board member Independent

Mr. Michalis Spanos

Board member Senior Independent

Mr. Ioannis Zographakis

Board member Independent

Dr. Michael Heger

Board member Independent

Ms. Lyn Grobler

Board member Independent2

Share capital increase in 2014 attracted reputed international investors and a world class Board

(1) On 30 Nov 2016, representatives of the President-elect of the United States of America, Donald Trump, announced that the President-elect intends to nominate Wilbur L. Ross, Jr. to serve as United States Secretary of Commerce. Such nomination would be subject to confirmation by the Senate of United States of America. If such nomination and confirmation were to take place, Mr. Ross would be expected to be appointed United States Secretary of Commerce on 20 January 2017. In that event Mr. Ross may be required to resign from his current positions as a director and vice-chairman of BOCH and the Bank (2) Subject to ECB approval

5

SLIDE 6

Strengthened capital position due to reduction in RWAs c.€8 bn (or c.25%) balance sheet deleveraging since 2013 Improving funding structure; moving closer to a self-funded franchise

Turnaround of the bank since 2014 has translated into improving financial indicators

(1) Ratio of ELA as a % of total assets for Dec 2016 is based on total assets as at 30 Sep 2016 (2) Mainly attributable to loan restructuring activity and slower formation of new problem loans (3) Leverage ratio defined as tangible equity over total assets (4) CET1 ratio includes positive impact of €1 bn capital increase; FL ratio as reported, transitional ratio estimated as 11,3% (reported) + 1,7% impact due to capital increase (5) Based on EBA Risk Dashboard Report, data as at 30 June 2016

30.3 28.6 26.8 25.4 23.3 22.7 22.4 23.5 22.5 22.7 21.5 19.7 19.0 18.8 Dec 2013 Jun 2014 Dec 2014 Jun 2015 Dec 2015 Jun 2016 Sep 2016 Total assets (€ bn) RWA (€ bn) 145% 148% 141% 136% 121% 110% 102% 49% 48% 49% 54% 61% 65% 70% Dec 2013 Jun 2014 Dec 2014 Jun 2015 Dec 2015 Jun 2016 Sep 2016 Loan to deposit ratio (L/D) Customer deposits as % of total assets

Full repayment of €11,4 bn of ELA 90+ DPD formation reversed; reduction of over €2,5 bn in 9M2016 Improving asset quality and coverage

0.9 1.3 1.4 2.7 5.3 (0.4) 0.1 (0.0) (1.3) (2.6) 2009 2010 2011 2012 2013 1H2014 2H2014 1H2015 2H2015 9M2016 48.6% 49.8% 53.2% 52.9% 50.1% 44.0% 42.6% 38.3% 38.7% 40.6% 42.5% 48.1% 52.6% 53.6% Dec 2013 Jun 2014 Dec 2014 Jun 2015 Dec 2015 Jun 2016 Sep 2016 90+DPD ratio 90+DPD provision coverage 15.1% 13.4% 14.4% 13.1% 13.6% 13.8% 10.4% 15.6% 14.0% 14.9% 14.0% 14.4% 14.6% Dec 2013 Jun 2014⁴ Dec 2014 Jun 2015 Dec 2015 Jun 2016 Sep 2016 CET1 ratio (fully loaded) CET1 ratio (transitional) Change in 90+ DPD2 (€ bn)

EBA average L/D5: 121%

2014: (€0,4 bn) 2015: (€1,3 bn) 62,9% 61,9% 61,8% 59,3% 57,8% NPE ratio 11.4 11.1 9.6 8.8 7.4 5.9 3.8 2.4 1.3 0.2 0.0 34% 31% 31% 28% 23% 16% 11% 6% 1% 0% Apr 2013 Jun 2013 Dec 2013 Jun 2014 Dec 2014 Jun 2015 Dec 2015 Jun 2016 Sep 2016 Dec 2016 Jan 2017 ELA (€ bn) ELA as % of total assets

1

12,5% 12,5% 12,6% 13,0% 13,2% Leverage ratio3 9,4% 8,6%

6

SLIDE 7

Strategic milestone and way forward

 Low levels of liquidity  Low levels of research coverage – only covered by HSBC  No index inclusion  Athens listing no longer suitable given lack of Greek banking

perations

 Greater visibility for the Bank and the Cypriot economy  Broader shareholder base  Further enhance the confidence of all stakeholders in the Group  Standard listing is an intermediate step; aim is to achieve premium

listing on the LSE and future inclusion in the FTSE UK index series

 Clean structure with higher standards of corporate governance  Decoupling from Greece  New Irish holding company to become the parent  First Trading Date on CSE / LSE on [19] January 2017

Current listing New listing

CSE ATHEX CSE LSE

Potential Tier 2 Transaction

 CET1 levels stabilised and opportunity to optimise capital structure with non-CET1 capital issuance  Limited issuance needs for Bank of Cyprus and expected to be a rare issuer in the capital markets  Normalise funding structure, increase access to capital markets and explore options to create MREL eligible liabilities

Cyprus-London listing – overview

Equity Debt / Capital

7

SLIDE 8

Key Investment Highlights

SLIDE 9

Cypriot economic recovery faster than expected…

Real GDP growth (%) Contribution to 9M2016 GDP growth in percentage points (total 2,75%)

Source: IMF, Moody’s, Cyprus Statistical Service, Bloomberg, BOC Economic Research Notes: (1) Gross value added (2) IMF Country Report No.13/293, Sep. 2013, Review 1

Broad-based economic growth… …with tourism and professional services as leading contributors …reflected in reduced government bond yields

(8.7%) (3.9%) 1.1% 1.9% 2.3% 2.2% 1.3% 0.3% (3.2%) (6.0%) (1.5%) 1.7% 2.8% 2.2% 2.3% 2010 2011 2012 2013 2014 2015 2016E 2017E 2018E

Yield (%)

Jan 13 Jul 13 Jan 14 Jul 14 Jan 15 Jul 15 Jan 16 Jul 16 Cyprus Portgual Italy Spain Greece Ireland Baa2 Ba1 Ba3 B2 Caa1 C

A3 B1 Baa2 Ba1 Baa2 Caa3

Moody’s credit ratings

Caa3

Credit ratings improving faster than peers…

A3 Aug-16 0.0 0.4 0.3 1.2 0.6 (0.0) (0.5) 0.4 0.3 Agriculture Industry Construction Tourism & trade Professional & admin Information Financial Public, education & health Other 0% 5% 10% 15% Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 Jan 16 Cyprus 2019 (issued Jun 2014) Cyprus 2022 (issued Apr 2015) Cyprus 2025 (issued Nov 2015) Cyprus 2020 (issued Feb 2010) Dec 16 2.0% 11.4% 86.6% Primary sector Secondary sector Tertiary sector

Distribution of real GVA1 (2015)

Initial projections (IMF)2 Real GDP growth – actual (CySTAT) Real GDP growth – forecast (IMF)

9

SLIDE 10

…on the back of improving macro fundamentals

Falling unemployment rate Growth in tourism activity

Tourism revenues

1.5 1.9 2.1 2.0 2.1 2.3 2.4 8.0% 9.9% 11.5% 11.5% 12.0% 13.0% 13.1% 2009 2012 2013 2014 2015 2016e 2017e € bn % of GDP (5.8%) (4.9%) (0.2%) (0.1%) (0.3%) (0.4%) 79% 102% 107% 108% 107% 104% 2012 2013 2014 2015 2016e 2017e Government budget balance (% of GDP) Gross public debt (% of GDP)

Government budget and debt

Stabilising fiscal position Support from key business enablers

Unemployment rate

11.9% 15.9% 16.1% 15.0% 13.0% 11.6% 10.3% 2012 2013 2014 2015 2016e 2017e 2018e

Recovering property prices

Residential property price index3 (quarterly yoy change)

1H2016 3,767 4,527 4,952 4,439 5,929 2013 2014 2015 11M'1511M'16

# of registered contract of sales

68 108 100 90 73 2006 2010 2014 Price index3 (rebased to 100 as of 1Q10) 2016 34.4% 31.3% 30.2% 29.5% 29.0% 25.0% 20.0% 12.5% 12.5%

Corporate tax rate (2016)

Double taxation avoidance treaties with c.50 countries

Source: CySTAT, BOC economic research, Eurostat, IMF (World Economic Outlook database), European Commission, CBC, Cyprus Ministry of Interior, OECD (2017), "Corporate Income Tax: Corporate income tax rates", OECD Tax Statistics (database) (DOI: http://dx.doi.org/10.1787/7cde787f-en, accessed on 3 Jan 2017) (1) As of 2015 (2) Net of recapitalisation costs (3) CBC Index

2 2

25.3% (5.2%) (9.4%) (1.7%) (20%) (10%) 0% 10% 20% 30% 2007 2009 2011 2013 2015 36.4% 38.1% 25.5% Upper secondary Less than Upper secondary Tertiary

Level of education, age 15-641

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

10

SLIDE 11

45 46 Non-life 18.8 12.3 5.3 4.2 1.5 61 55

Gross loans € bn Branch network # branches Deposits € bn

29,5%3

Insurance premiums1 € mn

Source: CBC, company disclosure as of 9M2016 (1) 9M2016 (provisional results) (2) 49,9% owned by the Bank (3) Market shares for insurance premiums as at 30 September 2016 (on provisional results) (4) As of October 2016

Life 13,5%3

2 2

14.2 12.5 1.9 6.0 3.7 123 246 22 55 8 41,1%4 30,1%4 xx%

Market shares

Bank of Cyprus has a privileged position in the Cypriot market…

Hellenic Bank & & 2

38.8% 37.7% 38.5% 39.3% 37.9% 40.0% 40.4% 41.4% 41.1% 41.1% 24.8% 25.3% 25.7% 26.5% 28.2% 28.2% 28.2% 29.0% 30.3% 30.1% Dec 2014 Mar 2015 Jun 2015 Sep 2015 Dec 2015 Jan 2016 Mar 2016 Jun 2016 Sep 2016 Oct 2016

Loans Deposits Cyprus market share evolution

Positioning BOC vs. market players Market share gains since Mar 2015

New lending provided by the BOC Group in

9M2016 was €667,2 mn in Cyprus and (£296 mn) €327,6 mn in the UK

In

Cyprus, new lending is focused

n

the consumer, SME and corporate sectors

Deposits in Cyprus increased by €0,90 bn (or 6%)

qoq, and by €1,5 bn or 10% in 9M2016 26,6%3 14,1%3

11

SLIDE 12

44% 22% 23% 11% Corporate SME Retail housing Retail other

Resilient NIM in Cypriot operations

573 537 536 527 530 527 503 386 369 367 366 359 349 332 139 119 104 100 95 91 89

1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016

Yield on loans NIM Cost of deposits

Refocus towards Cyprus with balance sheet deleveraging and selective lending to promising sectors

80% 77% 73% 74% 77% 75% 70% 16% 13% 14% 15% 15% 17% 16% 4% 10% 13% 11% 8% 8% 14%

1Q20152Q20153Q20154Q20151Q20162Q20163Q2016

Stable fee income as a % of revenues

(bps)

12

…with an attractive and profitable core Cypriot business…

PPI2 directed at increasing provisions to de-risk the balance sheet faster

Gross loans by geography (€ bn) Gross loans by customer type (Sep 2016): €18,8 bn

Cost to income ratio

22.8 18.8 3.9 1.8 Dec 2013 Sep 2016 Cyprus Other 15% 85% 91% 9% 26,7 20,6 Net interest income Fee and commission income Other income % of total income 628 723 634 496 397 2013 2014 2015 9M2015 9M2016 PPI2 for Cyprus operations (€ mn) 35% 35% 35% 38% 40% 41% 40% 37% 36% 38% 40% 40% 42% 42%

61% 59% 60% 63% 66% 63%

1Q2015 1H2015 9M2015 FY2015 1Q2016 1H2016 9M2016

Cyprus operations Group EU average¹

(1) Based on EBA Risk Dashboard Report, Data as at 30 June 2016 (2) Pre-provisioning income

SLIDE 13

…and an intention to expand the UK operations

BoC UK operates in London and Birmingham
Target customer segments include entrepreneurs and owner-managed businesses; primarily funded by retail deposits
Core competence in professional buy-to-let property market
Expansion strategy includes adding a consumer division and business division

Gross loans and customer deposits Loans by sector as at 30 September 2016

0.67 0.74 0.78 0.83 0.88 0.93 1.01 Mar 2015 Jun 2015 Sep 2015 Dec 2015 Mar 2016 Jun 2016 Sep 2016 77% 20% 2% 1% Corporate SMEs Consumer credit Housing 0.92 0.93 1.00 1.04 1.08 1.13 1.19 Mar 2015 Jun 2015 Sep 2015 Dec 2015 Mar 2016 Jun 2016 Sep 2016 Gross loans (£ bn) Customer deposits (£ bn) 3.8 5.1 9M2015 9M2016

Profitability

Operating profit (£ mn) Profit before tax (£ mn) 3.6 5.7 9M2015 9M2016 New lending of €296 mn in 9M2016

13

SLIDE 14

14

Significant asset quality improvement delivered with focus now on completing the task

321 380 329 (85) 265 410 558 96 232 156 402 609 100 64 1,319 1,240 3,319 1,972 20 (247) (164) 386 (325) 136 (143) (649) (668) (1,041) (1,020) (501) 1.6 2.0 2.3 2.2 2.5 2.9 3.5 3.6 3.8 4.0 4.4 5.0 5.1 5.1 6.5 7.7 11.0 13.0 13.0 12.8 12.6 13.0 12.7 12.8 12.6 12.0 11.3 10.3 9.3 8.8 03-2009 06-2009 09-2009 12-2009 03-2010 06-2010 09-2010 12-2010 03-2011 06-2011 09-2011 12-2011 03-2012 06-2012 09-2012 12-2012 06-2013 09-2013 12-2013 03-2014 06-2014 09-2014 12-2014 03-2015 06-2015 09-2015 12-2015 03-2016 06-2016 09-2016 Quarterly change of 90+ DPD (€ mn) 90+ DPD (€ bn)

1

Slow deterioration Economic crisis Stabilisation Recovery

High correlation between formation of problem loans & economic cycle

(1) Information for 1Q2013 and 2Q2013 is not available as it has not been possible to publish the financial results for the three months ended 31 March 2013 (2) 90+DPD cash coverage ratio (3) NPE cash coverage ratio

Current stock of 90+DPDs and NPEs

Progress on asset quality underpinned by:

̶ Robust strategy ̶ Relentless execution ̶ Economic improvement

11.3 8.8 FY2015 9M2016 50,1% 42,6% 90+DPD ratio 48,1% 53,6% Provision coverage ratio2 90+DPD (€ bn) 14.0 11.9 FY2015 9M2016 61,8% 57,8% NPE ratio 39,0% 39,5% Provision coverage ratio3 NPEs (€ bn) 48,7% 39,2% 90+DPD % of total assets 60,0% 53,2% NPEs % of total assets

SLIDE 15

15

Highlights so far

90+DPD of corporate portfolio as at end of Sep 2016 reduced by 57% since March 2015
Very low redefault rate, on average over 90% of loans restructured since 2015 have no arrears as at end of Sep 2016

57% reduction in corporate 90+DPD

€1,0 bn of SME loans restructured from beginning of 2015 to Sep 2016
Improving performance of restructured SME loans. Restructurings completed by end of Sep 2016, on average >75% present

no arrears High performance

f restructured

SME and retail loans

€2,4 bn of retail loans restructured from beginning of 2015 to Sep 2016
Improving performance of restructured retail loans. From beginning of 2015 to end of Sep 2016, on average only 11% of

restructured loans present arrears over 90 days

Increase in 90+DPD provision coverage by 12,6 percentage points to 52% in Cyprus yoy (as of Sep 2016)

12,6% improvement in coverage

Completed 22 auctions in which we attempted to sell around 62 assets
Successfully completed the sale of 13 assets despite the high price floor set in foreclosure auctions

13 assets sold in foreclosure auctions

On-boarded c.1,5k assets of €894 mn value and disposed over €100 mn during 9M2016

c.€900 mn of assets

n-boarded

SLIDE 16

16 32% drop in 90+DPDs since peak in September 2013

13.0 13.0 12.8 12.6 13.0 12.7 12.8 12.7 12.0 11.3 10.3 9.3 8.8 47.4% 48.6% 48.6% 49.8% 52.5% 53.2% 53.1% 52.9% 52.5% 50.1% 47.1% 44.0% 42.6% Sep 2013 Dec 2013 Mar 2014 Jun 2014 Sep 2014 Dec 2014 Mar 2015 Jun 2015 Sep 2015 Dec 2015 Mar 2016 Jun 2016 Sep 2016 90+DPD (€ bn) 90+DPD ratio (€2,6 bn) / (23%) 32% drop since peak

NPEs reduced by €2,1 bn (or 15%) in 9M2016

15.0 15.2 14.8 14.2 14.0 13.3 12.5 11.9 62.9% 63.0% 61.9% 62.2% 61.8% 61.0% 59.3% 57.8% Dec 2014 Mar 2015 Jun 2015 Sep 2015 Dec 2015 Mar 2016 Jun 2016 Sep 2016 NPEs NPE ratio € bn 2,4 Forborne NPEs with no impairments or arrears2 (€ bn) – in pipeline to exit NPEs subject to meeting all exit criteria1 0.3 1.6 0.4 2016 2017 2018 + 2,2 1,9 (€2,1 bn) / (15%) 2,3

(1) Curing period of the NPEs with forbearance measures, but no impairments and no arrears, assuming no re-default (2) Analysis provided on account basis. Accounts will not exit NPE status if not all exit criteria are met

1,5 1,3 NPEs with forbearance measures, no impairments, no arrears

Strong track record of reduction in problem loans

SLIDE 17

New provisions taken and improvement in asset quality leading to increased coverage levels

Cost of risk3: PPI4 directed at increasing impairment charges to de-risk balance sheet faster

2.4% 1.5% 1.7% 1.6% 4.0% 1.1% 1.3% 1.5% 3.6% 2.1% 2.2% 2.1% 4.3% 1.4% 1.6% FY2014 1Q2015 1H2015 9M2015 FY2015 1Q2016 1H2016 9M2016 Cost of Risk - Cyprus Cost of Risk - Group

Coverage ratio improvement of 16 p.p1 driven by over €1,6 bn additional cumulative provisions since September 2014

(1) p.p. = percentage points (2) Provisions for impairment of customer loans and gains/(losses) on derecognition of loans and changes in expected cash flows (3) Provisions for impairment of customer loans and gains/(losses) on derecognition of loans and changes in expected cash flows on acquired loans over average gross loans (4) Pre-provisioning income

109 219 110 123 96 630 62 96 109 38% 41% 42% 43% 41% 48% 49% 53% 54% Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16

Quarterly Provisions for impairment of customer loans² (€ mn) 90+ DPD coverage ratio 34% 34% 35% 36% 35% 39% 38% 39% 40% NPEs provision coverage

90+DPD coverage ratio

sequentially improving from Sep 2014 onwards

90+DPD stock fully covered,

including tangible collateral, both at a Group level and across segments 17

SLIDE 18

Comprehensive strategy across segments adopted to tackle problem loans (1/2)

Portfolio segmented based on size / complexity
Create a specialised unit to manage debt >€100 mn
Improve documentation via LMA documents for bigger exposures
Product range enhanced, e.g. split & freeze, DFAs and DFEs

Corporate

Separate clients in distress and provide special treatment via specialised units

geographically spread across Cyprus

Product range enhanced, e.g. split & freeze
Implement a process to monitor clients and transfer to and from the RRD

SME

3.8 2.1 FY2015 9M2016 90+DPD (€ bn) NPE (€ bn) 4.8 3.5 FY2015 9M2016 1.4 1.0 FY2015 9M2016 90+DPD (€ bn) NPE (€ bn) 1.9 1.6 FY2015 9M2016

Segmental approach Overall approach

Addressing asset quality identified as BOC’s main priority
Progress on asset quality handled by management with significant restructuring experience and dedicated

teams for each segment

Support from internationally experienced restructuring specialists and external lawyers
Main components of BOC’s strategy include:

̶ Establishment of Restructuring and Recoveries Division (RRD) in 2014 to restructure and recover bank’s 90+DPD loans ̶ Establishment of Real Estate Management Unit (REMU) in Dec 2015 to manage and monetise portfolios comprised primarily of real estate assets ̶ Improve lending policies and procedures, lending documents, securities / monitoring covenants

18

Tracking progress vs. medium term targets including: ̶ 90+DPD ratio ̶ NPE ratio ̶ 90+DPD and NPE coverage ratios ̶ Redefault rates

SLIDE 19

19

Comprehensive strategy across segments adopted to tackle problem loans (2/2)

From inefficient legacy operations…

̶ Rigid legal framework with very long execution timelines ̶ Inefficient processes with significant time wasted

…to revamped operating model

̶ Client negotiation and client management teams ̶ Tools to support negotiations and decision making ̶ Training for all bankers on new tools and restructurings ̶ Introduce new teams to specialize on receivership and foreclosure

Focus area for next year

Recoveries

Private foreclosures commenced in late June 2016
22 auction events conducted relating to 62 assets
13 assets have been sold in total with total proceeds of €2.4m
Foreclosure Task Force is up and running, aiming to boost foreclosure volumes
Actions have been taken to improve awareness of auction events (flyers and mailing distribution lists)
Servicing either completed or in progress for over 400 assets

Foreclosures

5.3 4.9 FY2015 9M2016 90+DPD (€ bn) NPE (€ bn)

Create a clear strategy for collection to ensure early and continuous engagement with

clients

Process for early arrears via the collections call center (CCC) and offer standardized

solutions via the specialized unit Retail Arrears Management (RAM)

Flexible products to manage specific segments, e.g. unemployed, CHF loans, etc.
Focus area for next year

Retail

0.8 0.7 FY2015 9M2016 90+DPD (€ bn) NPE (€ bn) 2.0 1.8 FY2015 9M2016 5.3 4.9 FY2015 9M2016 Deleverage of €0,7 bn

SLIDE 20

20

Strategy has dramatically lowered new redefaults and increased the pace

f restructuring activity

90+DPD inflows in Cyprus operations1 (€ bn)

Close monitoring to arrest

deterioration of the portfolio

Ramp up in restructuring efforts
Economic recovery, bank

capitalisation and trust rebuilt assist asset quality trends

79% of restructured loans have no arrears (Cy)

0.68 0.60 0.34 0.36 0.22 0.11 0.13 0.14 0.14 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016

Average: 0,30

0.42 0.44 0.84 0.69 0.81 1.33 1.50 1.26 0.68 0.4 0.2 0.2 0.2 0.4 0.2 0.4 0.4 0.8 0.7 0.8 1.3 2.1 1.9 1.1 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 Restructured loans Write offs & set offs DFAS² 71% 77% 70% 68% 87% 82% 86% 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016

Average: 79% % of restructured loans with no arrears

(1) The improvement in 90+DPD loans is due to the slower formation of new 90+DPD loans across all banking business lines in Cyprus and the continued acceleration in loan restructurings, although the origination of new loans does not match the rate of final repayment of existing loans (2) Debt for asset swaps (3) Average restructured loans excluding write offs & set offs and DFAS (4) Total restructured loans is equal to restructured loans plus write offs & set offs and DFAS for 9M2016

Quarterly evolution of restructured loans4 (€ bn)

Average3: 0,89 FY2015: €3,7 bn 9M2016: €3,4 bn 9M2016: €5,0 bn

SLIDE 21

Pace is being further enhanced to unlock problematic cases in Recoveries

Introducing additional tools to resolve long outstanding portfolios

Reduction in 9M2016 involved application of more complex solutions, as focus shifts towards tackling the recoveries portfolio A combination of tools is usually used:

Extension of maturity via reduction of

instalments

Interest rate reduction
Arrears and/or interest capitalisation
Grace period
Forbearance of penalties in loan agreements
Debt consolidation
Collateral or security strengthening
Accelerated consensual foreclosure
New loan facilities
Equity-linked instruments
Cash sweeps
Split and freeze
Debt/equity swaps
Debt write-off

Restructuring tools of short or long term nature

11.5 10.6 10.6 8.2 0.2 (0.9 ) (0.1 ) (0.0) 0.4 (1.2 ) (0.8) (0.8)

Jun 2015 Inflows Restructurings / Collections Write-offs Consensual foreclosures Dec 2015 Inflows Restructurings / Collections Write-offs Consensual foreclosures Sep 2016

Net reduction: c.€0,9 bn Net reduction: c.€2,4 bn

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Aggressive target setting

Cyprus 18.8 Other 1.8 20.6 BOC Group gross loans (Sep 2016) 90+DPD 8.2 Forborne NPEs 2.9 Contagion² 0.2 Performing restructured 2.0 Performing 5.5 18.8 Cyprus gross loans (Sep 2016) Total NPEs in Cyprus: €11,3 bn

c.€7,2 bn of 90+DPDs managed by RRD
o/w c.€4,9 bn is managed via RRD

recoveries Forborne NPEs:

NPEs with forbearance

measure no impairments and no arrears1: €2,3 bn

NPEs with forbearance

measure, no impairments and with arrears less than 90 days: €0,6 bn

Focus on NPEs meeting exiting criteria

̶ Following high volume of restructurings performed in 2016, now is the time to capitalise on the performance of restructured loans

Continue to drive the resolution of cases for reduction of 90+ DPD

̶ Close monitoring of progress towards targets

Capitalise on improvements made to the Recoveries operating model and

experience gained in the past year

Industrialise foreclosure process

Ramp up pace of cases driven through foreclosures, but remain

sensitive to socio-economic needs and interests

Use of foreclosure tool to resolve cases but also engage with

clients to find a consensual solution

Create pace and specialisation
Enhance awareness of auction event (flyers and mailing

distribution lists)

1 2 NPL trade 3

Enhance retail process

4

Look for opportunities for an NPL trade or 3rd party servicing

agreement with a view to improve the Bank’s key ratios and fulfil its long term objectives

Improve the industrialised process for retail – smaller tickets
Ramp up pace of resolution of cases and available tools for

segmentation and monitoring

Plans are in place to maintain positive progress

(1) In pipeline to exit NPEs subject to meeting all exit criteria; analysis based on account basis (2) Contagion effect but not restructured

Further enhancements to recoveries 5

Enhance systems and processes to improve efficiency to address

the retail and SME cases

Further enhance skills and capacity to address pace of case

resolution

22

SLIDE 23

85.0% 12.3% 2.7% Cyprus Greece Others 707 250 86 66 196 Land & plots Commercial buildings³ Residential buildings Hotels Other⁴

Real estate sales increasing with REMU

(1) Includes Kermia Hotels Limited where disposal completed in June 2016 (2) Total Stock as at 30 Sep 2016 excludes investment properties and investment properties held for sale (3) Includes manufacturing, industrial and under construction (4) Relates to Greece and Romania (5) Number of properties shown for Cyprus only

Cyprus: €1.1 bn

Property stock analysis (30 Sep 2016)

Group: €1,3 bn 31.5% 10.9% 27.0% 25.5% 5.0% 0.1% Nicosia Larnaca Limassol Paphos Famagusta Other

On-boarded property stock split (carrying value, Sep 2016, € mn)

Cyprus: €1.109 mn Total properties5 (#): 1.459 Greece & Romania

Property sales dynamics in Cyprus for 9M2016

18 2 10 1 5 10 1 3 1 5 23 3 15 3 2 5 1 4 Offers accepted Under negotiation SPA in preparation SPA signed Sold Residential Commercial Land Hotel/Touristic €106,4 mn €10,6 mn €8,8 mn €177,4 mn €51,6 mn

Property stock movement (Group) (€ mn)

542 1,305 894 (110) (21)

Stock as at 01 Jan 16¹ Additions Sales¹ Impairment loss Stock as at 30 Sep 16² 1 2 4 3

Total on-boarded property stock: €1.305 mn 1,050 151 252 6

23

SLIDE 24

Full repayment of €11,4 bn ELA achieved

(1) Ratio of ELA funding as a % of total assets for December 2016 is based on total assets as at 30 September 2016

Full €11,4 bn ELA repayment achieved, with €3,8 bn reduction during 2016 and early 2017…

11.4 11.1 9.9 9.6 9.5 8.8 7.7 7.4 6.9 5.9 4.9 3.8 3.3 2.4 1.3 0.2 0.0 Apr 2013 Jun 2013 Sep 2013 Dec 2013 Mar 2014 Jun 2014 Sep 2014 Dec 2014 Mar 2015 Jun 2015 Sep 2015 Dec 2015 Mar 2016 Jun 2016 Sep 2016 Dec 2016 Jan 2017 € bn

1

…reflected in an improving funding profile with continuous reduction in ELA to total assets since March 2014

€3,8 bn 51% 49% 49% 48% 48% 49% 49% 51% 54% 56% 61% 62% 65% 70% 34% 31% 31% 32% 31% 28% 28% 26% 23% 20% 16% 15% 11% 6% 1% 0% Jun 2013 Sep 2013 Dec 2013 Mar 2014 Jun 2014 Sep 2014 Dec 2014 Mar 2015 Jun 2015 Sep 2015 Dec 2015 Mar 2016 Jun 2016 Sep 2016 Dec 2016 Jan 2017 Deposits as a % of total assets ELA as a % of total assets

Deposit Growth Proceeds from deleveraging Share capital increase Increased access to ECB Funding Retention of cash profits from operations Access to interbank market

ELA eliminated through:

24

SLIDE 25

148% 141% 138% 136% 132% 121% 119% 110% 102% 124% 125% 125% 123% 121% 122% 121% Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16

Loans to deposits EU average Loans to deposits ratio Improved by 19 p.p2 since Dec 15

Growing deposit base resulting in improving liquidity and increasing market share

Increasing market share in resident and non-resident deposits

(1) BOC Group’s customer deposits were at €15,6 bn at 9M2016, a 6.1% increase vs. 1H2016 comprised of €831,6 mn in Cypriot resident deposits (a significant proportion of which were government deposits) and €65,1 mn in non-Cypriot resident deposits (2) Percentage Points (3) Based on EBA Risk Dashboard Report, Data as at 30 June 2016

c.10% growth in deposits in 9M2016 and comprises c.70% of total assets with resulting improvement in loans to deposits ratio by 19 p.p2 since December 20151

11.2 11.3 11.6 11.6 12.2 12.7 12.7 13.3 14.2 1.3 1.3 1.4 1.4 1.4 1.5 1.4 1.4 1.4 0.80 0.56 0.61 0.61 0.01 0.01 13.3 13.2 13.6 13.6 13.6 14.2 14.1 14.8 15.6 Sep 14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16

Cyprus UK Other

25.6% 25.5% 24.6% 24.3% 23.7% 24.1% 24.6% 25.3% 26.1% 27.0% 26.5% 27.2% 28.8% 28.7% 35.2% 32.2% 30.8% 28.4% 27.5% 26.7% 26.9% 26.7% 27.5% 31.1% 32.9% 34.1% 34.6% 34.3% Sep 2013 Dec 2013 Mar 2014 Jun 2014 Sep 2014 Dec 2014 Mar 2015 Jun 2015 Sep 2015 Dec 2015 Mar 2016 Jun 2016 Sep 2016 Oct 2016

Residents Non-residents

3

25

SLIDE 26

4.50% 1.50% 2.00% 3.75% 2.50% 14,25% Overall Total Capital Requirement CCB2 (CET1) 4.50% 3.75% 2.50%

26

Regulatory view of BoC’s capital requirements

Minimum capital requirement as per SREP5

CET1 Capital Requirement Total Capital Requirement

Pillar 1 Pillar 2R1 CCB (fully phased-in)2

(1) Pillar 2 requirement in the form of CET1 (2) Capital conservation buffer (3) Tier 2 capital (4) Additional Tier 1 capital (5) 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, starting 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

10,75% Minimum CET1 Requirement Pillar 2R1 Pillar 1 (CET1) AT1 capital4 T2 capital3 Total Pillar 1

f 8%
Following the Supervisory Review and Evaluation Process (SREP) performed by the ECB in 2016, the Group’s minimum phased-in CET1 capital ratio

was set at 10,75% and the overall total capital requirement at 14,25%. Both minimum ratios include 2,50% fully phased-in CCB

Final confirmation in respect of SREP 2016 was delivered to the Bank by the ECB in December 2016
ECB has also provided non-public guidance for additional pillar II CET1 buffer
New SREP requirements are effective as of 01 Jan 2017

SLIDE 27

13.4% 13.4% 14.4% 15.1% 13.1% 13.5% 13.6% 13.8%

Adequately capitalised relative to risk profile, positioning BOC favourably to focus on growing in Cyprus

Source: Company filings (1) Based on EBA Risk Dashboard Report, Data as at 30 June 2016 (2) As per SNL Financial Database, ‘Clean’ Fully Loaded CET1 ratio as 30 June 2016, excludes Deferred Tax Credits, AFS and Danish Compromise Estimated Impact (3) The data used is based on 9M2016 financial results for 17 out of 38 EU Banks, including Bank of Cyprus, the data for the rest of the banks is based on 1H2016 financial results (4) Minimum Requirement for Own Funds and Eligible Liabilities; precise calibration and ultimate designation of the Bank’s MREL liabilities have not yet been finalised

14.0% 13.9% 14.9% 15.6% 14.0% 14.3% 14.4% 14.6% 12.5% 12.4% 12.8% 13.0% 13.6% 13.4% 13.5% Dec 2014 Mar 2015 Jun 2015 Sep 2015 Dec 2015 Mar 2016 Jun 2016 Sep 2016 CET1 ratio (transitional) Average EU CET1 ratio (transitional)¹

CET1 ratio (transitional) of 14,6% compares favourably vs. EU average of 13,5%...

CET1 ratio (fully loaded)

…and also on a fully loaded basis vs. European peers

‘Clean’ fully loaded CET1 ratio2,3 On the back of evolving capital requirements such as MREL4, BoC continues to consider funding options such as issuing Tier 2 capital to further diversify its capital, subject to market conditions

CET1 transitional increased

by 20 bps during 3Q2016 and by 60 bps during 9M2016

13.5% 42% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% 5% 10% 15% 20% 25% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 BOC Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 Peer 17 Peer 18 Peer 19 Peer 20 Peer 21 Peer 22 Peer 23 Peer 24 Peer 25 Peer 26 Peer 27 Peer 28 Peer 29 Peer 30 Peer 31 Peer 32 Peer 33 Peer 34 Peer 35 Peer 36 Peer 37 'Clean' Fully Loaded CET1 ratio (LHS) Average 'Clean' Fully Loaded CET1 ratio RWA % Total Assets (RHS) Average (RWA % Total Assets) BOC CET1 FL 13,8% RWA intensity 84%

27

SLIDE 28

Significant progress on KPIs with a clear strategy to meet Medium term targets

(1) CET 1 capital ratio (transitional) is defined in accordance with the Basel II requirements (2) ELA % assets is calculated as the ELA amount divided by the total assets (3) As of January 2017 (4) Net loans to deposits ratio is calculated as the net loans and advances to customers divided by customer deposits, including deposits held for sale. Net loans are defined as gross loans less accumulated provisions (which is the sum of accumulated provisions for impairment of customer loans, fair value adjustment on initial recognition and provisions for off-balance sheet exposures) (5) 90+DPD ratio means loans past-due for more than 90 days and those that are impaired (impaired loans are those which are not considered fully collectable and for which a provision for impairment has been recognised on (i) an individual basis or (ii) for which incurred losses exist at their initial recognition or (iii) for customers in Debt Recovery) divided by gross customer 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)). (6) Provisioning coverage ratio for 90+DPD is calculated as the sum of accumulated provisions for impairment of customer loans, fair value adjustment on initial recognition and provision for off-balance sheet exposures, divided by 90+DPD (7) IFRS 9 impact, which is effective as from 1 January 2018, has not been taken into account for the purposes of the data. Data is determined based on the current regulatory

environment. Provisioning charge (cost of risk) (year to date) is calculated as the provisions for impairment of customer loans and provisions for off-balance sheet exposures,

including provisions of discontinued operations, net of gain on derecognition of loans and advances to customers and changes in expected cash flows divided by average gross loans (the average balance calculated as the average of the opening balance and the closing balance). The ratios for the six months ended 30 June 2016 and nine months ended 30 September 2016 are annualised (8) Provisions for impairment of customer loans and gains /(losses) on derecognition of loans and changes in expected cash flows on acquired loans over average gross loans.

Category Key performance indicators 2015 Sep 2016 Medium term targets Progress Capital CET1 ratio (transitional)1 14,0% 14,6% >15% On course Funding ELA % assets2 (€ bn) 16%; €3,8 bn 0%; €0 bn3 Fully repay by 2017 Achieved Net loans % deposits4 121% 102% 100%- 120% Achieved Asset quality 90+ DPD ratio5 50,1% 42,6% <30% Focus area 90+ DPD coverage6 48,1% 53,6% >50% Achieved Provisioning charge7 4,3% 1,6%8 <1,0% Stabilising Margins and efficiency Net interest margin9 3,8% 3,5% ~3,00% Stabilising Fee and commission income/ total income10 14,8% 15,6% >20% On course Cost to income ratio11 40,0% 41,7% 40%-45% Achieved Balance sheet Total assets (€ bn) €23,3 bn €22,4 bn >€25 bn Selective growth

Strategic plan of action

Sustain momentum in restructuring
Focus on recoveries portfolio – “accelerated

consensual foreclosures”

Real estate management via REMU
1. Reduce

problem loans

Eliminate ELA - achieved
Boost deposit franchise
Access debt capital markets for senior and

strategic non-core capital transactions

Access wholesale and interbank market
Increase loan pool for the Additional Credit

Claims ECB framework

2. Normalise

funding structure

Targeted lending in Cyprus into promising

sectors to fund recovery

New loan origination, while maintaining

lending yields

Revenue diversification via fee income from

international business, wealth, and insurance

Expand UK franchise by leveraging the UK

subsidiary

3. Focus on

core business

Tangible savings through a targeted

reduction program

Introduce technology/processes to improve

distribution channels and reduce costs

HR policies aimed at enhancing productivity
4. Lean
perating

model

Deliver appropriate medium-term risk-

adjusted returns

5. Deliver

returns

(9) Net interest margin is calculated as the difference between the cost of lending and the interest income generated relative to the amount of interest-earning assets. Interest bearing assets include: cash and balances with central banks, plus placements with banks, plus repos, plus net customer loans and advances, plus investments (excluding equities and mutual funds) and derivatives (10)Net fee and commission income/total income is the fee and commission income divided by total income, excluding gains/(losses) on disposals of non-core assets. Gains on disposal of non-core assets pre-tax was €0, €161.6 million, €54.2 million, €60.9million and €60.9 million for the years ended 31 December 2013, 2014 and 2015 and the six months ended 30 June 2016 and the nine months ended 30 September 2016, respectively (11)Cost-to-income ratio is the staff costs and other operating expenses excluding restructuring costs divided by total income, excluding gains/(losses) on disposals of non-core assets. Restructuring costs amount to €98.3 million, €87.4 million, €43.1 million, €36.2 million and €156.8 million as at 30 September 2016, 30 June 2016, 31 December 2015, 31 December 2014 and 31 December 2013, respectively. Gains on disposal of non-core assets pre-tax was €0, €161.6 million, €54.2 million, €60.9 million and €60.9 million for the years ended 31 December 2013, 2014 and 2015 and the six months ended 30 June 2016 and the nine months ended 30 September 2016, respectively

28

SLIDE 29

Macro and geo-political factors

Slower economic recovery or regress into recession
Failure of Government to cover funding needs post the end
f the ESM / IMF financing Programme

Asset quality

Credit risk concentration – esp. large corporate exposures
High concentration of collaterals in real estate
Success in restructuring/addressing large problematic

exposures

Debt for asset swaps, debt for equity swaps, sale of loans
Focus on Recoveries portfolio

Funding

External challenges – limited influence

Further deterioration of the Russian economy
Brexit impact, particularly on tourism industry (weaker GBP)
Proposed tax reform in other jurisdictions (e.g. Russia de-
ffshorisation)

Internal challenges – able to mitigate Mitigants

Changes in existing and upcoming of new regulatory

requirements e.g. ‘MREL’1

Deposits stabilising with launch of active deposit

retention/gathering programme

ELA funding fully repaid
Availability of significant amount of ELA eligible assets in

case of need

Intention to gradually return to wholesale funding markets in

2017

Consider issuing Tier 2 capital to further diversify the Bank’s

capital, subject to market conditions

Litigation

Pending legal claims including CySEC2 investigations and

bail-in related litigations among others

Appropriate provisions have been made in respect of

pending legal proceedings

Diversification of business model away from Russia / Ukraine

geographies

Gradual increase in tourist arrivals from other destinations

Mitigants

Stronger Bank is better able to stimulate the economy
Economic uncertainty in Greece and potential impact to the

periphery

Minimum direct exposure in Greece

Main challenges

(1) Minimum Requirement for Own Funds and Eligible Liabilities. (2) Cyprus Securities and Exchange Commission

29

SLIDE 30

Appendices

SLIDE 31

BOC - Main performance indicators

Ratios Group 9M2016 Performance

ROAA (annualised)2 0,4% ROTE (annualised)3 2,8% Net Interest Margin 3,51% Cost to income ratio 42% Loans to deposits 102%

Asset Quality

90+ DPD / 90+ DPD ratio €8.768 mn (43%) 90+ DPD coverage 54% Cost of risk (annualised) 1,6%1 Provisions / Gross Loans4 22,8%

Capital

Transitional Common Equity Tier 1 capital 2.736 CET1 ratio (transitional basis) 14,6% Total Shareholders’ Equity / Total Assets 13,7%

(1) Provisions for impairment of customer loans and gains/(losses) on derecognition of loans and changes in expected cash flows (2) ROAA: profit after tax attributable to the owners of the company (€61,627 mn to be annualised) divided by the quarterly average of total assets (€22.750,451 mn) (3) ROTE: profit after tax attributable to the owners of the company (€61,627 mn to be annualised) divided by the total equity (€3.102,664) minus the intangible assets (€142,297 mn) (4) Provisions / gross loans: accumulated provisions before the fair value adjustments (€4.655,921 mn) on initial recognition relating to loans acquired from Laiki Bank plus off- balance sheet provisions (€46,649 mn) divided by gross loans before the fair value adjustment on initial recognition relating to loans acquired from Laiki Bank (€20.595,514 mn)

0.388 0.392 0.393 0.394 0.342 0.348 0.342 0.343 0.374 0.378 0.379 0.380 0.327 0.332 0.327 0.327 Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015 Mar-2016 Jun-2016 Sep-2016 Book Value per share (€) Tangible Book Value per share (€)

Book value evolution 31

SLIDE 32

€ mn % change 30.09.16 31.12.15 Cash and balances with Central Banks 12% 1.587 1.423 Loans and advances to banks

10%

1.184 1.314 Debt securities, treasury bills and equity investments1

41%

595 1.009 Net loans and advances to customers

7%

15.939 17.192 Other assets2 34% 3.065 2.284 Non current assets and disposal group held for sale

76%

12 49 Total assets

4%

22.382 23.271 € mn % change 30.09.16 31.12.15 Deposits by banks 53% 371 242 Funding from central banks

56%

1.950 4.453 Repurchase agreements

11%

329 368 Customer deposits 10% 15.643 14.181 Debt securities in issue

100%

1 Other liabilities3 4% 986 944 Non current liabilities and disposal group held for sale

100%

4 Total liabilities

5%

19.279 20.193 Share capital 0% 892 892 Capital reduction reserve and share premium 0% 2.505 2.505 Revaluation and other reserves

7%

241 259 Accumulated losses

4%

(575) (601) Shareholders’ equity 0% 3.063 3.055 Non controlling interests 79% 40 23 Total equity 1% 3.103 3.078 Total liabilities and equity

4%

22.382 23.271

Consolidated Balance Sheet

(1) Debt securities, treasury bills and equity investments include investments of €193 mn (Dec 2015: €588 mn) and investments pledged as collateral of €402 mn (Dec 2015: €421 mn) (2) Other assets include derivative financial assets, life insurance business assets attributable to policyholders, prepayments, accrued income and other assets, stock of property, investment properties, property and equipment, intangible assets, investment in associates and joint ventures and deferred tax assets (3) Other liabilities include derivative financial liabilities, insurance liabilities, accruals, deferred income and other liabilities, debt securities in issue and deferred tax liabilities

32

SLIDE 33

€ mn 9M2016 9M2015 yoy % 3Q2016 2Q2016 qoq % 1Q2016

Total income 717 786

9%

235 238

1%

244 Total expenses (299) (296) 1% (97) (103)

5%

(99) Profit before provisions and impairments1 418 490

15%

138 135 2% 145 Provisions for impairment of customer loans net of gains/(losses) on loan derecognition and changes in expected cash flows (267) (329)

19%

(109) (96) 14% (62) Impairments of other financial and non financial assets (34) (37)

9%

(12) (14)

10%

(8) Share of profit from associates and joint ventures 3 3

12%

1 1 96% 1 Profit before tax, restructuring costs, discontinued operations and net profit on disposal of non-core asset 120 127

5%

18 26

32%

76 Tax (16) (18)

7%

(4) (4) 0% (8) (Loss)/profit attributable to non-controlling interests (3) 6

162%

2 (5)

142%

(1) Profit after tax and before restructuring costs, discontinued operations and net profit on disposal of non-core asset 101 115

13%

16 17

4%

67 Advisory, VEP and other restructuring costs2 (98) (27) 267% (11) (70)

84%

(17) Loss from disposal groups held for sale/discontinued operations

(38)
100%
Net gain on disposal of non-core assets

59 23 154% 59

100%
Profit after tax

62 73

16%

5 6

15%

50 Net interest margin 3,51% 3,82%

31 bps

3,35% 3,55%

20 bps

3,63% Return on tangible equity (annualised) 2,8% 2,9%

1 p.p

0,7% 0,8%

1 p.p

6,7% Return on Average Assets (annualised) 0,4% 0,4%

0,1%

0,1%

0,9%

Cost-to-Income ratio 42% 38% +4 p.p 41% 43%

2 p.p

40%

Income Statement Review

(1) Profit before provisions and impairments, gains/(losses) on derecognition and changes on expected cash flows, advisory, VEP and other restructuring costs, gains/losses from disposal of non core assets and discontinued operations (2) Advisory, VEP and other restructuring costs comprise mainly: 1) fees of external advisors in relation to: (i) disposal of operations (ii) customer loan restructuring activities which are not part of the effective interest rate and (iii) the contemplated listing on the London stock exchange and 2) voluntary exit plan cost. (3) Debt for Asset swaps (4) Income statement shown is based on the results press release rather than the prospectus

Key Highlights QoQ change

NIM at 3,51% for 9M2016 compared

to 3,59% for 1H2016 reflecting the reduction in customer loan balance primarily as a result of the elevated loan restructuring activity, including DFAs3

Total Income down by 1% qoq due to

lower NII

Total Expenses down by 5% qoq

primarily driven by the 7% decrease in staff costs reflecting the effect of the voluntary exit plan (VEP) completed in 2Q2016

Profit before provisions of €138 mn

for 3Q2016, up by 2%, a net result of the lower NII, the higher gains of financial instruments and the lower staff costs.

Impairments of other financial and

non-financial assets for 3Q2016 totalled €12 mn, compared to €14 mn for 2Q2016, including impairment losses

f

stock

f

properties in Cyprus, Greece and in Romania.

Profit after tax of €5 mn for 3Q2016

33

SLIDE 34

€ mn Consumer Banking SME Banking Corporate Banking International Banking Wealth & Brokerage & Asset Management RRD REMU Insurance Other Total Cyprus Net interest income

187 48 60 46 6 160 (9)

(7)

491

Net fee & commission income

34 6 7 38 2 9

(3)

14 107

Other income1

3 1 5 3 (2) 35 21 66

Total income

224 54 68 89 11 169 (11) 32 28 664

Total expenses2

(87) (9) (8) (19) (3) (25) (7) (10) (99) (267)

Profit/(loss) before provisions and impairments

137 45 60 70 8 144 (18) 22 (71) 397

Provisions for impairment of customer loans net of gains/(losses) on derecognition

f loans and changes in

expected cash flows

32 (14) 20 (263)

(1)

(226)

Impairment of other financial and non financial assets

(10)
(15)

(25)

Share of profits from associates

3

3

Profit/(loss) before tax

169 31 80 70 8 (119) (28) 22 (84) 149

Tax

(18) (4) (10) (8) (1) 17 4 (2) 8 (14)

Profit attributable to non controlling interest

(4)

(4)

Profit/(loss) after tax and before one off items

151 27 70 62 7 (102) (24) 20 (80) 131

Cyprus: Income Statement by business line for 9M2016

(1) Other income in column “Other” excludes the gain on disposal of shares in Visa Europe Limited amounting to €58,3 mn (2) Excluding restructuring costs

34

SLIDE 35

Reduction in Overseas Non-Core Exposures

Overseas non-core exposures (€ mn) The non-core overseas exposures at 30 September 2016 were as follows: Greece: Net exposure comprised: a. Net

n-balance

sheet exposures (excluding foreclosed properties) totalling €12 mn; b. 636 foreclosed properties with a book value of €161 mn; c.

ff-balance sheet exposures of €115 mn; and

d. lending exposures to Greek entities in the normal course of business in Cyprus of €80 mn, and lending exposures in Cyprus with collaterals in Greece of €145 mn. Romania: Overall net exposure of €221 mn Serbia: Overall net exposure of €42 mn, in line with the previous quarter Russia: Remaining net exposure (on and off balance sheet) in Russia remained unchanged at €45 mn during 3Q2016 in line with the previous quarter. As part of the Group’s strategy of focusing on its core businesses and markets, the Group decided to close the operations of Bank of Cyprus Channel Islands Ltd (BOC CI) and to relocate its business to other Group locations.

(1) Lending exposures to Greek entities in the normal course of business in Cyprus and lending exposures in Cyprus with collaterals in Greece

155 120 114 119 45 45 368 354 312 274 262 221 54 54 54 54 42 42 199 192 173 168 164 161 56 49 22 16 13 12 133 132 131 122 119 115 140 139 151 158 225 225 1,105 1,040 957 911 870 821 Jun 2015 Sep 2015 Dec 2015 Mar 2016 Jun 2016 Sep 2016 Russia: Net exposure Romania: Net exposure Serbia Greece Foreclosed Properties Greece net on balance sheet exposure Greece net off balance sheet exposure Greece other¹ 528 512 477 464 521 513

35

SLIDE 36

8.66 8.09 7.79 7.85 8.07 8.42 8.76 8.94 9.01 9.40 10.06 4.05 3.59 3.46 3.47 3.57 3.21 3.40 3.75 3.68 3.91 4.15 1.24 1.25 1.29 1.30 1.36 1.39 1.45 1.49 1.43 1.43 1.43

1.02 0.87 0.79 0.55 0.61 0.61 0.01 0.01

14.97 13.80 13.33 13.17 13.61 13,63 13.61 14.18 14.13 14.75 15.64 Dec-13 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16

Cyprus non-IBS Cyprus IBS UK Other countries

Total (€ bn)

(1) IBS - Division servicing exclusively international activity companies registered in Cyprus and abroad and non-residents (2) Other countries: Russia (until June 2015), Romania, and Ukraine (until March 2014).

Deposits by geography

Analysis of Deposits by Geography and by Type

30 September 2016 (%)

64.3% 26.5% 9.1% 0,1%

Cyprus - non IBS Cyprus - IBS UK Other countries

Total Cyprus 90,8%

1 2

10.55 9.13 8.53 7.88 8.16 8.14 7.97 8.16 8.15 8.31 8.93 0.93 0.95 0.84 0.96 0.97 1.02 1.01 1.03 1.01 1.04 1.01 3.49 3.72 3.96 4.33 4.48 4.47 4.63 4.99 4.97 5.40 5.70

14.97 13,80 13.33 13.17 13.61 13.63 13.61 14.18 14.13 14.75 15.64 Dec-13 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar -16 Jun-16 Sep-16

Time deposits Savings accounts Current & demand accounts

Total (€ bn)

Deposits by type of deposits 30 September 2016 (%)

57.1 % 6.5% 36.4%

Time deposits Savings acc ount Current and demand account

1 2

36

SLIDE 37

21.20 21.32 21.19 20.98 20.66 19.98 19.27 18.77 0.91 1.03 1.13 1.14 1.21 1.17 1.18 1.23 1.66 1.74 1.61 0.75 0.72 0.70 0.63 0.60

23.77 24.09 23.93 22.86 22.59 21.85 21.08 20.60 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16

Other countries UK Cyprus

1

Total (€ bn)

(1) Other countries: Russia, Greece and Romania

Gross loans by geography

Gross loans by Geography and by Customer Type

91,1% 6.0% 2,9%

Cyprus UK Other countries 1

11.83 12.10 12.03 11.56 11.42 10.77 10.13 9.78 5.09 5.02 4.99 4.75 4.68 4.65 4.55 4.47 4.41 4.43 4.39 4.35 4.31 4.28 4.27 4.24

2.44 2.54 2.52 2.20 2.18 2.16 2.13 2.11 23.77 24.09 23.93 22.86 22.59 21.85 21.08 20.60 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16

Retail other Retail Housing SMEs Corporate

(€ bn) Total

47,5% 21.7% 20.6% 10.2%

Corporate SME Retail Housing Retail Other

30 September 2016 (%) 30 September 2016 (%) Gross loans by customer type

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SLIDE 38

Asset Quality- 90+ DPD analysis

(€ mn) Sept-16 Jun - 16 Mar-16 Dec-15 Sept-15

A. Gross Loans after Fair value on Initial recognition

19.607 20.040 20.719 21.385 21.597 Fair value on Initial recognition 989 1.043 1.130 1.207 1.266

B. Gross Loans

20.596 21.083 21.849 22.592 22.863

B1. Loans with no arrears

10.897 10.879 10.551 10.443 9.925

B2. Loans with arrears but not impaired

2.488 2.607 2.901 3.049 3.611 Up to 30 DPD 587 574 623 469 585 31-90 DPD 344 361 386 351 355 91-180 DPD 146 121 133 144 200 181-365 DPD 144 175 183 259 374 Over 1 year DPD 1.267 1.376 1.576 1.826 2.097

B3. Impaired Loans

7.211 7.597 8.397 9.100 9.327 With no arrears 514 647 860 876 848 Up to 30 DPD 22 25 36 78 66 31-90 DPD 52 41 57 24 60 91-180 DPD 15 95 49 65 152 181-365 DPD 106 123 157 310 464 Over 1 year DPD 6.502 6.666 7.238 7.747 7.737 (90+ DPD)1 8.768 9.269 10.289 11.329 11.998 90+ DPD ratio (90 + DPD / Gross Loans) 42,6% 44,0% 47,1% 50,1% 52,5% Accumulated provisions (including fair value adjustment on initial recognition2 ) 4.703 4.875 5.076 5.445 4.933 Gross loans provision coverage 22,8% 23,1% 23,2% 24,1% 21,6% 90+ DPD provision coverage 53,6% 52,6% 49,3% 48,1% 41,1%

(1) Loans in arrears for more than 90 days (90+ DPD) are defined as loans past-due for more than 90 days and those that are impaired (impaired loans are those which are not considered fully collectable and for which a provision for impairment has been recognised on an individual basis or for which incurred losses exist at their initial recognition or customers in Debt Recovery). (2) Including the fair value adjustment on initial recognition (difference between the outstanding contractual amount and the fair value of loans acquired from Laiki Bank) and provisions for off-balance sheet exposures.

+ + + + =

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SLIDE 39

90+ DPD by business line (€ bn)

1.31 1.23 0.95 0.88 0.84 0.67 0.59 0.58 0.56 0.41 0.35 0.32 0.31 0.26 0.63 0.59 0.54 0.48 0.45 0.43 0.43 0.56 0.53 0.37 0.33 0.31 0.28 0.28 2.41 2.43 2.38 2.00 1.65 1.26 1.12 1.26 1.20 1.10 0.97 0.60 0.44 0.41 1.12 1.10 1.12 1.02 0.94 0.84 0.74 2.20 2.24 2.31 2.40 2.23 2.13 2.04 2.72 2.77 2.82 2.90 2.95 2.91 2.90 12.79 12.65 12.00 11.33 10.29 9.27 8.77

Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep-16

Corporate SMEs Housing Consumer Credit RRD-Major Corporations RRD- Corporates RRD-SMEs RRD-Recoveries corporates RRD-Recoveries SMEs & Retail

(1) As part of the restructuring of the Group, management is currently monitoring the loan portfolio of the Group using new business line definitions. An important component

f the Group’s new operational structure is the establishment of the RRD for the purposes of centralising and streamlining the management of its delinquent loans.

Analysis 90+ DPD by Business Line1

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SLIDE 40

90+ DPD ratios by business line Gross loans by business line (€ bn)

27% 26% 15% 30% 61% 75% 80% 100% 100% 22% 22% 14% 25% 58% 80% 79% 100% 100% 21% 20% 13% 23% 53% 69% 74% 100% 100% 20% 18% 12% 22% 37% 60% 70% 100% 100% 16% 18% 12% 21% 32% 50% 64% 100% 100% 14% 15% 12% 20% 37% 48% 58% 100% 100%

Corporate SMEs Housing Consumer Credit RRD-Mid Corporates RRD-Major Corporations RRD-SMEs RRD-Recoveries corporates RRD-Recoveries SMEs and Retail

30.06.15 30.09.15 31.12.15 31.03.16 30.06.16 30.09.16

4.53 2.20 3.85 1.83 2.01 3.36 1.39 2.20 2.71 4.59 2.14 3.80 1.80 1.97 3.22 1.38 2.24 2.77 4.38 1.83 3.75 1.48 1.90 2.98 1.41 2.31 2.83 4.29 1.78 3.68 1.43 1.81 2.91 1.38 2.40 2.91 4.15 1.77 3.62 1.40 1.62 2.76 1.35 2.23 2.94 4.10 1.74 3.61 1.38 1.37 2.53 1.30 2.13 2.92 4.31 1.71 3.58 1.36 1.09 2.34 1.26 2.04 2.91

Corporate SMEs Housing Consumer Credit RRD-Mid Corporates RRD-Major Corporations RRD-SMEs RRD-Recoveries corporates RRD-Recoveries SMEs and Retail

31.03.15 30.06.15 30.09.15 31.12.15 31.03.16 30.06.16 30.09.16 % of total

(1) As part of the restructuring of the Group, management is currently monitoring the loan portfolio of the Group using new business line definitions. An important component

f the Group’s new operational structure is the establishment of the RRD for the purposes of centralising and streamlining the management of its delinquent loans.

21% 8% 18% 5% 10% 6%

Analysis of Loans and 90+ DPD ratios by Business Line1

7% 11% 14%

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90+ DPD ratios by economic activity

48% 54% 57% 80% 48% 38% 57% 64% 49% 54% 59% 79% 48% 36% 62% 57% 48% 54% 46% 76% 47% 36% 57% 56% 44% 49% 38% 68% 46% 35% 54% 58% 42% 50% 34% 65% 39% 35% 49% 56% 39% 46% 34% 63% 37% 35% 46% 57%

30.06.15 30.09.15 31.12.15 31.03.16 30.06.16 30.09.16

Gross loans by economic activity (€ bn)

Trade Manufacturing Hotels & Restaurants Construction Real estate Private Individuals Professional & other services Other sectors

Analysis of Loans and 90+ DPD ratios by Economic Activity

2.48 0.91 1.57 4.04 3.17 7.92 1.89 2.09 2.50 0.92 1.64 4.19 3.20 7.86 2.07 1.55 2.38 0.85 1.62 4.14 3.38 7.41 1.84 1.24 2.36 0.83 1.57 4.07 3.42 7.33 1.79 1.21 2.26 0.82 1.47 3.92 3.32 7.25 1.64 1.17 2.23 0.80 1.45 3.43 3.33 7.17 1.55 1.12 2.19 0.71 1.42 3.22 3.30 7.11 1.48 1.17

31.03.15 30.06.15 30.09.15 31.12.15 31.03.16 31.06.16 30.09.16

Trade Manufacturing Hotels & Restaurants Construction Real estate Private Individuals Professional & other services Other sectors

16%

11%

34% 7% 6%

% of total

16% 7%

3%

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13.75 13.86 13.59 13.49 13.26 12.64 11.87 11.31 0.11 0.11 0.10 0.08 0.07 0.06 0.05 0.06 1.10 1.20 1.12 0.65 0.64 0.63 0.57 0.53 14.96 15.17 14.81 14.22 13,97 13.33 12.49 11.90 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16

Other countries UK Cyprus

1

Total (€ bn)

(1) Other countries: Russia (until June 2015) and Romania

NPEs by geography

NPEs by Geography and by Customer Type

95,1% 0,5% 4.4%

Cyprus UK Other countries1

46.6% 26.3% 16.2% 10.9%

Corporate SME Retail Housing Retail Other

30 September 2016 (%) 30 September 2016 (%) NPEs by customer type

8.17 8.18 7.75 7.37 7.19 6.61 5.98 5.54 3.53 3.57 3.60 3.51 3.44 3.38 3.25 3.14 1.82 1.93 1.95 1.98 1.97 1.97 1.93 1.92 1.45 1.49 1.51 1.36 1.37 1.37 1.33 1.30

14.96 15.17 14.81 14.22 13.97 13,33 12.49 11.90 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16

Retail Other Retail Housing SMEs Corporate

Total (€ bn)

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SLIDE 43

Legislative reforms helping in a number of important areas…

Laws

Insolvency framework enacted in May 2015
Foreclosure law enacted in Sept 2014, 1st auctions completed in Jun 2016
Legislation for the sale of loans enacted in 4Q2015
Securitisation law expected to be passed in 1Q2017

Tax incentives

Tax incentives for customers who agree to consensual solutions
Tax incentives include exemption from CGT1 and transfer fees in sale of property to the Bank

Other reforms

Introduction of Examinership provides creditor ‘cram down’ mechanism for the first time
Regulation of insolvency practitioners introduced in 2Q2015
Ongoing passport scheme for international investors driving cash collections from property developers

The toolkit to support debt restructuring is now largely in place… …delivering a number

f important benefits

for the Bank Incentivises faster consensual solutions Reduced time to execute non consensual solution Reduces cost of restructurings Provides greater

ptions to deleverage

Supports and incentivises faster cash collection Improved quality and regulation of insolvency practitioners

(1) Capital Gains Tax

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SLIDE 44

Non-Performing Loans definition

Non-Performing Exposures (NPEs) –as per the EBA definition: In 2014 the European Banking Authority (EBA) published its reporting standards on forbearance and non-performing exposures (NPEs). According to the EBA standards, a loan is considered a non-performing exposure if: i. 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, for example in case of a write off, a legal action against the borrower, or bankruptcy ii. the exposures are impaired i.e. in cases where there is a specific provision, or

iii. there are material exposures which are more than 90 days past due, or
iv. there are performing forborne exposures under probation for which additional forbearance measures are extended, or

v. there are performing forborne exposures under probation that present more than 30 days past due within the probation period. 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. 90+DPD: Loans in arrears for more than 90 days (90+ DPD) are defined as loans past-due for more than 90 days and those that are impaired (impaired loans are those which are not considered fully collectable and for which a provision for impairment has been recognised on an individual basis or for which incurred losses exist at their initial recognition or customers in Debt Recovery).

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SLIDE 45

Disclaimer

This presentation has been prepared for information and background purposes only. It is confidential and neither it nor any part of it may be reproduced (electronically or otherwise) or redistributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person (excluding the recipient's professional advisers) or published in whole or in part for any purpose without the prior written consent of the Bank of Cyprus Public Company Ltd (the "Bank"). This presentation does not purport to be all-inclusive or to contain all of the information that a person considering the purchase of any securities of the Bank may require to make a full analysis of the matters referred to herein. Certain statements, beliefs and opinions in this presentation are forward-looking. Such statements can be generally identified by the use of terms such as “believes”, “expects”, “may”, “will”, “should”, “would”, “could”, “plans”, “anticipates” and comparable terms and the negatives of such terms. By their nature, forward-looking statements involve risks and uncertainties and assumptions about the Group that could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. We have based these forward-looking statements on our current expectations and projections about future events. Any statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Readers are cautioned not to place undue reliance on forward-looking statements, which are based on facts known to and/ or assumptions made by the Group only as of the date of this presentation. The Bank's ability to achieve its projected results depends on many factors which are outside management's control. Actual results may differ materially from those contained or implied in the forward-looking statements. We assume no obligation to update such forward-looking statements or to update the reasons that actual results could differ materially from those anticipated in such forward-looking statements. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any security in the United States, or any other jurisdiction. The delivery of this presentation shall under no circumstances imply that there has been no change in the affairs of the Group or that the information set forth herein is complete or correct as of any date. This presentation shall not be used in connection with any investment decision regarding any of our securities, which should only be made based on expressly authorised materials from us identified as such, nor in connection with any decision whether or how to vote on any matter submitted to our

stockholders. The securities issued by the Bank have not been, and will not be, registered under the US Securities Act of 1933 (“the Securities

Act”), or under the applicable securities laws of any other jurisdiction.

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