Bank Of Cyprus Holdings Plc · CSECY:BOCH
Bank Of Cyprus — Q1 2025 Earnings Presentation
77 slides from Bank Of Cyprus's earnings presentation, May 12, 2025
Slide 1: Group Financial Results for the quarter ended 31 March 2025
Bank of Cyprus Group Group Financial Results For the quarter ended 31 March 2025
Slide 2: Disclaimer
DISCLAIMER The financial information included in this presentation is not audited by the Group’s external auditors. Forward-looking statements can be made in writing but also may be made verbally by directors, officers and employees of the Group (including during management presentations) in This fi
Slide 3: Table of Contents
Table of Contents Executive Summary – Updated Financial Targets 1. 1Q2025 Financial Performance 2. Capital & Asset Quality 3. ESG update 4. Appendix Appendix 3
Slide 4: Why Bank of Cyprus
Why Bank of Cyprus Strong, Supportive Macro Market Leader • Open economy growing faster than the Eurozone average • Market leader in a consolidated market • Fiscal discipline • 43.1%1 loan market share; 37.5%1 deposit market share • Sovereign rating; 3 notches above investment grade • #1 Life and #2
Slide 5: Cypriot Economy is Resilient and Growing Despite Global Economic Uncertainty
Cypriot Economy is Resilient and Growing Despite Global Economic Uncertainty GDP growth of 3.4% for 2024 Unemployment rate decreased to 4.9% for 2024 Real GDP (yoy % change) 11.4% 8.4% 12.00% 9.00% 8.0% 6.3% 7.2% 7.6% 7.8% 5.9% 1 8.00% 7.00% 2.8% 3.4% 3.1% 6.8% 6.6% 6.4% 7.00% 8.2% 7.6% 2.00% 6.3% 6
Slide 6: Strong Fiscal Position Supporting Economic Resilience and Growth
Strong Fiscal Position Supporting Economic Resilience and Growth Cyprus Public Debt to GDP below Euro area average Rebound in public finances from 2021 onwards As at 31 December 2024 Budget surplus as % of GDP 154% 4.3% 4.5% 2.1% 2.7% 135% 2.5% 1.0% 113% 0.5% 102% 95% -1.5% -3.4% -1.6% 87% 1.7% -3.5
Slide 7: Robust and Resilient Model to Navigate the Current Environment
Robust and Resilient Model to Navigate the Current Environment Macro environment Solid and diversified loan Strong Risk Management portfolio • NPE ratio at 1.8% Diversified business activities • NPE coverage at 122% 11% • USA not among the top 10 destinations for 9% 9% Strong track record in credit
Slide 8: 1Q2025 Strong Start to the Year While Successfully Managing Rate Declines
1Q2025-Strong Start to the Year While Successfully Managing Rate Declines Profit after tax at €117 mn Controlled decline in NII as rate cycle normalises 5.0% 4.0% 4.0% 4.0% 3.7% 3.3% 3.9% 3.8% 3.0% 3.4% 2.8% 133 137 2.8% 131 2.0% 213 2.5% 117 207 204 198 107 186 1.0% 0.0% 1Q2024 2Q2024 3Q2024 4Q2024
Slide 9: Shareholder Value Creation
Shareholder Value Creation ROTE of 18.3% in 1Q2025 Tangible book value per share up 15% yoy 29.1% 29.9% 28.2% 23.2% 25.9% Tangible book 30.00% 40.0% 1.75 2.20 2.33 2.54 2.65 25.00% 20.0% value (€ bn) 20.00% 0.0% 15.00% -20.0% +15% 10.00% 23.6% 23.7% -40.0% 5.00% 21.6% -60.0% 0.00% 18.3% -80.0% 5.77
Slide 10: 2025 Guidance Confirmed on the Back of Strong 1Q2025 Performance
2025 Guidance Confirmed on the Back of Strong 1Q2025 Performance and Resilient Outlook, Despite Global Uncertainties 1Q2025 2025 Targets Net Interest Income 186 mn <€700 mn Average ECB Depo rate 2.8% 2.1%4 Cost to Income Ratio1 34% c.40% Towards the lower end of Cost of Risk 39 bps normalised levels
Slide 11: BOC is the Leading Provider of Banking and Broader Financial Products & Services in Cyprus
BOC is the Leading Provider of Banking and Broader Financial Products & Services in Cyprus Leading Banking Provider in a consolidated banking sector with a sustainable, diversified business model in other financial services €bn Loans1 • #1 player in banking sector • Servicing c.3/4 of the population
Slide 12: Acquisition of Ethniki Insurance Cyprus Ltd
Acquisition of Ethniki Insurance Cyprus Ltd; Strengthening Leading Market Position • Binding agreement signed in April 2025 for acquisition of 100% stake • Expected to be completed in 2H2025, subject to regulatory approvals Key financials1,2 • Total consideration of €29.5 mn, in cash; c.15 bps capit
Slide 13: 1Q2025 Highlights
1Q2025-Highlights • Cypriot economy is resilient and growing, despite increased global economic uncertainty Economic growth to • Record new lending of €842 mn in 1Q2025, up 16% qoq continue • Gross performing loans at €10.45 bn, up 3% vs Dec 2024 • Profit after tax of €117 mn, up 9% qoq; Basic earni
Slide 14: Income Statement
Income Statement € mn 1Q2025 4Q2024 qoq% 1Q2024 yoy% Net Interest Income 186 198 -6% 213 -13% Non-interest income 69 68 1% 63 10% Total income 255 266 -4% 276 -8% Total operating expenses1 (87) (101) -14% (81) 8% Operating profit 160 152 5% 184 -13% Provisions and impairments (22) (38) -42% (25) -14
Slide 15: Highly Liquid Balance Sheet Being Positioned for Lower Rates
Highly Liquid Balance Sheet Being Positioned for Lower Rates (€ bn) 26.84 26.84 Other assets 1.92 Other 1.46 REMU repossessed 0.63 properties Equity (incl AT1) 2.94 • 23%1 linked with Bank’s base rate (‘natural MREL requirement already achieved with hedging’ of time & notice cost of deposits) Wholes
Slide 16: Controlled Decline in NII as Rate Cycle Normalises
Controlled Decline in NII as Rate Cycle Normalises NII at €186 mn; NIM at 313 bps Effective yield on assets & cost of funding 390 370 Performing loans Cost of deposits 2 NIM1(bps) 400 352 334 313 1 1 Liquid assets Cost of wholesale funding 300 (bps) 200 554 548 544 510 484 100 213 207 204 357 351 32
Slide 17: Continued Hedging Actions Further Reducing NII Sensitivity
Continued Hedging Actions Further Reducing NII Sensitivity NII sensitivity to parallel shift in interest rates (annualised)5 Hedging (€ bn) Dec 2024 Mar 2025 Receive fixed IRSs1 -100 bps Dec 2022 Dec 2024 Mar 2025 2.91 3.40 on non-maturing deposits Average yield 2.8% EUR -€126 mn -€83 mn -74 mn Rece
Slide 18: Deposits up 7% yoy; Stable Deposit Mix
Deposits up 7% yoy; Stable Deposit Mix as Deposit Costs Start Reducing Deposits at €20.7 bn up 1% qoq; mix at 33% flat qoq Cost of deposits peaked in 2024; at 0.33%1 in 1Q2025 € bn Cost of deposits +7% 29 34 37 34 33 (bps) 20.0 20.5 20.7 19.3 19.7 101 108 102 110.0 95 6.4 33% 6.6 33% 6.7 33% 6.8 33%
Slide 19: Seasonally Strong New Lending at €842 mn; up 25% yoy
Seasonally Strong New Lending at €842 mn; up 25% yoy Strong new lending at €842 mn in 1Q2025, up 16% qoq Gross performing book2 up 5% yoy and 3% qoq € bn € mn +5% +3% +25% 10.06 10.16 10.45 10.00 10.04 0.77 0.82 0.83 0.96 1.04 842 727 139 676 3.81 3.76 3.70 3.62 3.79 64 551 194 73 481 430 0.98 0.98
Slide 20: Fixed Income Portfolio up 21% yoy, Representing 17% of Total Assets
Fixed Income Portfolio up 21% yoy, Representing 17% of Total Assets Fixed income securities per category - NBV Fixed income securities per issuer type - NBV to increase to: % assets1 15% 15% 16% 16% 17% (€ mn) • c.18% in 20252 • c.20% in the medium-term2,3 +21% (€ mn) 4,519 4,519 4,212 287 Other fin
Slide 21: Non-NII at €69 mn in 1Q2025, up 10% yoy
Non-NII at €69 mn in 1Q2025, up 10% yoy Total Non-NII(€ mn) +10% 75 1 68 69 66 63 14 8 1 1 4 8 1 3 7 4 3 4 4 • Non-NII up 10% yoy reflecting; 3 12 11 13 12 10 • Higher net fee and commission income by 5% yoy, primarily due to higher non-transactional fees 55 61 60 61 60 42 44 45 46 44 • Higher net i
Slide 22: Profitable Life Insurance Business
Profitable Life Insurance Business - Valuable and Sustainable Contribution to the Group Net insurance result Recurring PAT1 (€ mn) +17% (€ mn) +7% 10% 5% 17% Contribution 6.8 5.5 5.9 Contribution ROE 5.8 to Group 4.5 to non-NII 4.4 PAT1 1Q2023 1Q2024 1Q2025 1Q2023 1Q2024 1Q2025 • Highest Profitabili
Slide 23: Profitable Non-Life Insurance Business
Profitable Non–Life Insurance Business - Valuable and Sustainable Contribution to the Group Net insurance result Recurring PAT1 (€ mn) +27% (€ mn) +55% 7% 4% 4.8 5.1 3.9 3.9 17% 4.0 Contribution 2.5 Contribution ROE to Group to non-NII PAT1 1Q2023 1Q2024 1Q2025 1Q2023 1Q2024 1Q2025 • Highest Profita
Slide 24: Leading Card Processing and Payment Solutions Business in Cyprus
Leading Card Processing and Payment Solutions Business in Cyprus Strong transaction growth in value; up 13% yoy Value of transactions (€ mn) +13% 12% 20% 80% 3,914 Contribution Market 3,455 ROE share1 2,985 to non-NII 2,392 1,841 1,960 1,929 1Q2019 1Q2020 1Q2021 1Q2022 1Q2023 1Q2024 1Q2025 Net fee a
Slide 25: Leveraging on Digital Offerings to Enhance Group's Sales and Customer Experience
Leveraging on Digital Offerings to Enhance Group’s Sales and Customer Experience Increased use across all digital channels Strong results from digital sales, both in banking and insurance Recent key digital initiatives engaging As at 31 March 2025 clients Digital Loans (€ mn) 155 135 484 k 451 k 230
Slide 26: JINIUS; Leader in Shaping the Digital Local Economy
JINIUS; Leader in Shaping the Digital Local Economy Business-to-Business (B2B) services Business-to-Consumer (B2C) services • Tenders management • Launched in February 2024 • Ecosystem and advertising • Product Marketplace management (13 product categories, including Fashion, • Invoicing management
Slide 27: 1Q2025 Cost to Income Ratio at 34% Reflecting Resilient Revenues
1Q2025 Cost to Income ratio1 at 34% Reflecting Resilient Revenues Total operating expenses1 up 8% yoy and down 14% qoq YoY Performance (1Q2025 vs 1Q2024) (€ mn) 35% 38% • Staff costs up 5% yoy due to salary increments, cost-of-living adjustments 32% 29% 32% 34% (COLA) and higher employer’s contribut
Slide 28: Cost of Risk at 39 bps in 1Q2025
Cost of Risk at 39 bps in 1Q2025 Cost of risk Bank’s IFRS 9 macroeconomic assumptions 0.62% Base line GDP rate Unemployment rate 0.39% 2025 2.9% 4.5% 0.30% 0.27% 2026 2.6% 4.5% FY2023 FY2024 1Q2024 1Q2025 • Cost of risk of at 39 bps (€10 mn) in 1Q2025, up 7 bps qoq and 12 bps yoy, mainly due to more
Slide 29: Capital & Asset Quality
Executive Summary – Updated Financial Targets Capital & Asset Quality Appendix 29
Slide 30: Robust Capital Position; CET1 at 19.9%
Robust Capital Position; CET1 at 19.9% Regulatory capital ratios 24.8% • Regulatory CET1 ratio at 19.7% 24.0% 23.3% 23.7% 22.4% 22.0% 20.4% • Including 1Q2025 profit net of distribution accrual at the top end of 20.7% 20.4% 19.3% 19.2% 19.7% distribution policy (i.e. 70% payout3) at 19.9% 18.3% 18.6
Slide 31: Healthy Asset Quality: NPE Ratio at 1.8%
Healthy Asset Quality: NPE Ratio at 1.8% NPEs down 6% qoq to €190 mn; fully covered NPE ratio further reduced to 1.8% NPE 73% 111% 122% coverage 4% 3.4% 365 (€ mn) 2.8% 119 3% 2.4% 1.9% 1.8% 31 201 190 2% 44 74 65 7 17 7 18 1% 171 103 100 0% 1 Dec 23 Dec 241 Mar 25 Mar 24 Jun 24 Sep 24 Dec 241 Mar 2
Slide 32: REMU Stock Reduced to €575 mn
REMU Stock Reduced to €575 mn; on Track to Achieve 2025 Target of c.€500 mn REMU stock reduced to c.€575 mn in April 2025 Organic sales1 consistently close to Open Market Value; comfortably above Book Value BV to 80% 76% 72% 71% 70% OMV2.0 114% 110% 109% 104% 1.5 97% 1.08 87% -€85 mn 83% 80% 80% 80%
Slide 33: Our Priorities Going Forward
Our Priorities Going Forward Leveraging on BOCH’s strengths • Leading financial Hub • Diversified business model • Strong domestic franchise • Strong digital infrastructure • Holistic offering • Long lasting relationships Capital and Shareholder Returns Growth Initiatives • Provide attractive return
Slide 34: BOC Rated at Investment Grade by all Credit Rating Agencies
BOC Rated at Investment Grade by all 3 Credit Rating Agencies Moody’s upgraded rating to A3 in May 2025; outlook stable S&P upgraded rating to BBB- in February 2025; outlook stable A3 8 A3 A- 8 A- Baa1 A3 BBB+ 7 Baa2 BBB 7 Baa3 Investment grade BBB- Investment grade BBB- Ba16 BB+ 6 Ba2 BB Ba35 BB- 5
Slide 35: Key Information and Contact Details
Key Information and Contact Details Contacts Investor Relations & ESG Executive Director Finance Tel: +357 22 122239, Email: investors@bankofcyprus.com Eliza Livadiotou, Tel: +35722 122128, Email: eliza.livadiotou@bankofcyprus.com Annita Pavlou Manager Investor Relations & ESG Tel: +357 22 122740, E
Slide 36: ESG update
Executive Summary – Updated Financial Targets ESG update https://www.bankofcyprus.com/globalassets/group/investor-relations/annual-reports/english/20250327-boch- group-afr-2024_final.pdf Appendix 36
Slide 37: Key Milestones Achieved by 1Q2025
Key Milestones Achieved by 1Q2025 • Published the allocation and impact report for Green Bond issued in 1H2024 • c.€381 mn Green Housing gross loans with EPC Category A as at 31 March 2025, compared to c.€321 mn as at E 31 December 2024 • Environmentally Friendly gross loans of c.€415 mn as at 31 Ma
Slide 38: ESG Journey
ESG Journey The ESG strategy formulated in 2021 is continuously expanding. The Group is maintaining its leading role in the Social and Governance pillars and focuses on increasing the Group’s positive impacts on the Environment, by transforming not only its own operations, but also the operations of
Slide 39: Delivering on our ESG Commitments
Delivering on our ESG Commitments Stakeholder ESG Priorities in 2025 SDG • Set additional decarbonisation targets on loan and investment portfolios based on methodologies and data available • Enhance ESG disclosures to ensure transparency against the ESG performance by publishing the second Corporat
Slide 40: Delivering on our ESG Commitments
Delivering on our ESG Commitments Climate Change – Target 1: Reducing Scope 1 & Scope 2 GHG emissions by Bank’s performance against baseline of 2021²: 42% by 2030 compared to 2021 baseline • c. 5% decrease in Scope 1 and Scope 2 GHG emissions in 1Q2025 (42%) (11%) (25%) (25%) Base GHG Emissions – Sc
Slide 41: Delivering on our ESG Commitments
Delivering on our ESG Commitments Climate Change: Increase portfolio of environmentally friendly loans Climate Change: Increase utilisation of renewable energy in own Gross loans (€ mn) operations 17% 19% 19% 415 381 354 321 81,298 Renewable energy 68,072² (kWh) 1Q2024 1Q2025 20 20 11 12 2 2 • c.19%
Slide 42: Delivering on our ESG Commitments
Delivering on our ESG Commitments Learning & Development: Provide upskilling/reskilling employee opportunities Gender Diversity: At least 30% women in ExCo and Senior Management by 2030 Training Attendance (hours) Women Men 9,612 5,262 5,356 3,550 33% (33%) ≥ 30% 27% 1Q2025 1Q2024 • Trainings atte
Slide 43: Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) IDEA1 Innovation Center SupportCy Network: Maintain leadership and continue playing an active The IDEA Innovation Center (since incorporation) and positive role in the community 95 100 New companies created (#) 1,100 1,000 Invested amount (€ mn) 780 4.00 4.25 1Q
Slide 44: Macroeconomic overview
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Macroeconomic overview 44
Slide 45: Cyprus is a Growing Business and Tech Hub in the Region
Cyprus is a Growing Business and Tech Hub in the Region Well educated, highly skilled labour force Labour costs significantly below the average Euro area Level of education (€ ‘000) 28 21 Tertiary 46% 16 15 15 Wages per capita 1 13 #3 country in Europe on 8 number of university graduates per capita
Slide 46: Additional financial information
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Additional financial information 46
Slide 47: Robust Liquidity Position; Significant Surplus Liquidity of €8.2 bn
Robust Liquidity Position; Significant Surplus Liquidity of €8.2 bn Diversified, mainly retail funded deposit base Highly liquid balance sheet Group deposits Liquid assets • Sticky deposit base • 55% insured deposits 6% 3% 19% 7% • 61% Retail • Average size of Retail deposits: c.€30k 30% €13.7 bn 53
Slide 48: Analysis of Deposits
Analysis of Deposits Deposits by Type (€ bn) Deposits by Customer Sector (€ bn) Deposits by Currency (€ bn) Type Mar 24 Dec 24 Mar 25 Sector Mar 24 Dec 24 Mar 25 Currency Mar 24 Dec 24 Mar 25 Retail 12.16 12.61 12.68 EUR 17.42 18.56 18.82 Current, 12.95 13.83 13.87 Demand & SME 1.02 1.16 1.16 USD 1.
Slide 49: Income Statement
Income Statement € mn 1Q2025 4Q2024 qoq% 1Q2024 yoy% Net Interest Income 186 198 -6% 213 -13% Net fee and commission income 44 46 -5% 42 5% Net foreign exchange gains and net gains on financial instruments 9 9 -1% 7 21% Net insurance result 12 11 5% 10 19% Net gains/ (losses) from revaluation and di
Slide 50: Consolidated Balance Sheet
Consolidated Balance Sheet % % Assets (€ mn) 31.03.2025 31.12.2024 change Liability and Equity (€ mn) 31.03.2025 31.12.2024 change Cash and balances with central banks 7,197 7,601 -5% Deposits by banks 430 364 18% Loans and advances to banks 1,019 821 24% Customer deposits 20,702 20,519 1% Reverse r
Slide 51: ROTE on 15% CET1 Ratio
ROTE on 15% CET1 Ratio TBV adjusted for excess CET1 capital on a 15% CET1 ratio ROTE on 15% CET1 € mn Mar 25 Dec 24 € mn Mar 25 Dec 24 Shareholders’ equity 2,700 2,590 PAT annualised 474 508 - Intangible assets (47) (50) Average TBV adjusted for excess CET1 capital on a 1,835 1,839 - Distribution1 (
Slide 52: Risk Weighted Assets – Regulatory Capital
Risk Weighted Assets– Regulatory Capital Risk Weighted Assets by Geography Reconciliation of Group Equity to CET1 31.03.25 € mn 31.12.23 30.09.24 31.12.24 31.03.25 € mn 31.03.25 Inc. retained earnings Cyprus 10,297 10,416 10,810 10,454 Shareholder’s equity 2,700 2,700 Overseas 44 25 24 41 Less: Inta
Slide 53: Overall Capital Requirements
Overall Capital Requirements CET1 ratio Total capital ratio 16.05% 16.13% CCyB c.0.92% c.0.94% 11.34% 11.42% c.1.94% O-SII c.1.88% CCyB c.0.92% c.0.94% c.1.94% CCB 2.50% 2.50% O-SII c.1.88% 2.50% Pillar 2R 2.75% 2.75% CCB 2.50% Tier 2 2.00% 2.00% Pillar 2R 1.55% 1.55% AT1 1.50% 1.50% Total Pillar 1:
Slide 54: Buffer to MDA Restrictions Level & Distributable Items
Buffer to MDA Restrictions Level & Distributable Items1 CET1 Ratios 831 bps 851 bps 19.7% 19.9% • Significant CET1 MDA buffer as at 31 March 2025: 831 bps (€872 mn) • Including retained earnings for the period ended 31 March 2025, significant CET1 MDA buffer as at 31 March 2025 at 851 bps2 (€893 mn2
Slide 55: MREL Requirement Already Achieved with Significant Buffer
MREL Requirement Already Achieved with Significant Buffer • MREL ratio including capital used to meet the CBR1 ( as % of RWAs) at 34.7% MREL (% of RWAs) as at 31 March 2025; 34.9%2 including retained earnings • MREL ratio (as % of Leverage Ratio Exposure (LRE)) at 13.7% as at 31 March 34.7% 34.9% 20
Slide 56: Income Statement Bridge for 1Q2025
Income Statement Bridge1 for 1Q2025 Underlying Statutory € mn Other basis Basis Net interest income 186 - 186 Net fee and commission income 44 - 44 Net foreign exchange gains and net gains/ (losses) on financial instruments 9 (1) 8 Net losses on derecognition of financial assets measured at amortise
Slide 57: Analysis of Interest Income and Interest Expense
Analysis of Interest Income and Interest Expense Analysis of Interest Income (€ mn) 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 Loans and advances to customers 138 139 139 132 124 Loans and advances to banks and central banks 92 73 69 64 57 Repurchase agreements 4 7 8 8 8 Investments and other financial asse
Slide 58: Business Plan Forward Curves
Business Plan Forward Curves Average quarterly ECB Deposit rate Average 6m Euribor rate 2025: 2.1% 2026: 1.8% 2025: 2.1% 2026: 1.9% 3.9% 3.5% 3.3% 3.4% 3.0% 2.8% 2.8% 2.9% 2.5% 2.1% 2.2% 2.5% 2.0% 2.4% 2.2% 2.3% 2.0% 2.1% 2.0% 1.5% 1.8% 1.9% 2.2% 1.5% 2.0% 1.9% 1.0% 1.4% 4Q2024 A 1Q2025 A 2Q2025 3Q2
Slide 59: Income Statement by Business line for 1Q2025
Income Statement by Business line for 1Q2025 IBU & Consumer SME Corporate € mn International RRD REMU Insurance Treasury JCC Other Total Banking Banking Banking corporate Net interest income/(expense) 91 13 35 34 3 (3) - 14 - (1) 186 Net fee & commission income/(expense) 16 3 6 12 1 - (2) 1 7 - 44 O
Slide 60: Statutory Income Statement for Insurance Businesses for 1Q2025
Statutory Income Statement for Insurance Businesses for 1Q2025 € mn 1Q2025 1Q2024 yoy% € mn 1Q2025 1Q2024 yoy% Insurance revenue 20.6 19.1 8% Insurance service expense (13.2) (12.0) 10% Insurance revenue 17.9 16.5 8% Net insurance service result 7.4 7.1 5% Insurance service expense (8.7) (9.0) -3% R
Slide 61: Additional Asset Quality Slides
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Additional Asset Quality Slides 61
Slide 62: Well Diversified Loan Portfolio With High Quality Collateral
Well Diversified Loan Portfolio With High Quality Collateral Gross performing book1 by business sector of €10.45 bn € bn Other Housing Private 3.96 0.75 4.71 Individuals Hotels & 1.19 Catering Real Estate 0.91 Private individuals Private individuals Business LTV2 Housing Other €5.74 bn €3.96 bn €0.7
Slide 63: Gross Loans and NPE Coverage by Customer Type
Gross Loans and NPE Coverage by Customer Type Gross loans by customer type € mn Mar 24 Dec 241 Mar 25 Retail Housing 3,575 3,631 3,647 Retail other 1,038 1,076 1,082 SMEs 1,024 1,005 1,024 International corporate 773 961 1,039 Corporate 3,866 3,647 3,808 Total 10,276 10,320 10,600 Corporate SMEs Ret
Slide 64: Loans by Economic Activity and Arrears Analysis
Loans by Economic Activity and Arrears Analysis Gross loans (€ mn) Mar 24 Dec 241 Mar 25 Loans arrears Mar 24 Dec 241 Mar 25 Trade 940 906 913 analysis (€ mn) Manufacturing 377 319 410 Loans with no arrears 9,897 10,100 10,386 Hotels & Catering 1,250 1,158 1,194 Loans with arrears but not 32 19 24 N
Slide 65: €11 mn Net NPE Outflows in 1Q2025
€11 mn Net NPE Outflows in 1Q2025 Analysis of total inflows(€ mn) 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 New inflows 8 7 7 6 6 Redefaults 1 0 1 0 1 Unlikely to pay 2 1 0 1 0 Total inflows 11 8 8 7 7 Analysis of total outflows (€ mn) Curing of restructuring (6) (18) (5) (4) (3) DFAs & DFEs (3) (4) (10) (
Slide 66: Gross Loans and Coverage by IFRS 9 Staging
Gross Loans and Coverage by IFRS 9 Staging Gross loans by IFRS 9 stage Allowance for expected loan credit losses Coverage ratio (€ mn) (€ mn) 10,320 10,600 10,276 267 Mar 24 Dec 241 Mar 25 64 231 223 Stage 1 8,621 9,582 9,305 90% Stage 1 0.7% 0.6% 0.8% 59 72 44 Stage 2 3.4% 6.4% 5.8% 52 48 159 Stage
Slide 67: Stage 2 Exposures <10% of Loan Book
Stage 2 Exposures <10% of Loan Book; 97% of Exposures Present no Arrears € mn 828 4.2% Hotel & catering 44 Limited migration rate of Stage 2 to Stage 3 at 2.5% 4.9% Trade 50 Of which: 58 • €260 mn (31%) Performing Forborne 5.2% Real estate • €215 mn (26%) Individual assessments 5.1% Construction 182
Slide 68: Rescheduled Loans
Rescheduled Loans1 Rescheduled loans1 by customer type Fair value of collateral and credit enhancements € bn Mar 24 Dec 24 Mar 25 31 Mar 2025 Loans and advances to customers (€ mn) Retail housing 0.12 0.09 0.07 Cash 716 Retail other 0.03 0.02 0.02 Securities 614 SMEs 0.04 0.03 0.03 Letters of credit
Slide 69: REMU - the Engine for Dealing with Foreclosed Assets
REMU - the Engine for Dealing with Foreclosed Assets €2.21 bn sales1 of 5,033 properties across all property classes since set-up €24 mn sales1 in 1Q2025; comfortably above Book Value Sales € mn (contract prices1) Net Proceeds / BV 109% 105% 127% 111% # 99 331 575 579 492 1,130 674 569 486 98 Gross
Slide 70: REMU - the Engine for Dealing with Foreclosed Assets
REMU - the Engine for Dealing with Foreclosed Assets Repossessed properties sold exceed properties acquired since 2019 By type (€ mn) – 31 March 2025 Group BV (€ mn) 45 27 Land 77 Golf 518 Commercial & Manufacturing 2 1,488 634 336 (1,110) Residential 149 Overseas (18) (244) 634 Jan 2019 Additions S
Slide 71: Glossary & Definitions
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Glossary & Definitions 71
Slide 72: Glossary & Definitions
Glossary & Definitions AC Amortised cost bonds. Adjusted recurring profitability The Group’s profit after tax before non-recurring items (attributable to the owners of the Company) taking into account distributions under other equity instruments such as the annual AT1 coupon. Advisory and other tran
Slide 73: Glossary & Definitions
Glossary & Definitions DTA Deferred tax asset. DTC Deferred Tax Credit. EBA European Banking Authority. ECB European Central Bank. 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 bal
Slide 74: Glossary & Definitions
Glossary & Definitions Legacy exposures Legacy exposures are exposures relating to (i) Restructuring and Recoveries Division (RRD), (ii) Real Estate Management Unit (REMU), and (iii) non-core overseas exposures. Leverage Ratio Exposure (LRE) Leverage Ratio Exposure (LRE) is defined in accordance wit
Slide 75: Glossary & Definitions
Glossary & Definitions Non-interest income comprises Net fee and commission income, Net foreign exchange gains and net gains/(losses) on financial instruments and (excluding net gains on loans and advances to Non-interest income customers at FVPL), Net insurance result, Net (losses)/ gains from reva
Slide 76: Glossary & Definitions
Glossary & Definitions Non-legacy (performing) Relates to all business lines excluding Restructuring and Recoveries Division (“RRD”), REMU and non-core overseas exposures. The NSFR is calculated as the amount of “available stable funding” (ASF) relative to the amount of “required stable funding” (RS
Slide 77: Glossary & Definitions
Glossary & Definitions Return on Tangible equity (ROTE) Calculated as Profit/(loss) after tax (attributable to the owners of the Company) (annualised - (based on year - to - date days), divided by the quarterly average of Shareholders’ equity minus on 15% CET1 ratio intangible assets and after deduc