Bank of Cyprus Holdings PLC · CSECY:BOCH
Bank of Cyprus — FY2018 Earnings Presentation
69 slides from Bank of Cyprus's earnings presentation, Mar 4, 2019
Slide 1: Preliminary Group Financial Results for the year ended 31 December 2018
Bank of Cyprus Group Preliminary Group Financial Results for the year ended 31 December 2018 The financial information included in this presentation is not audited by the Group’s external auditors. This financial information is presented in Euro (€) and all amounts are rounded as indicated. A comma
Slide 2: FY2018 - Highlights
FY2018 - Highlights • CET1 ratio of 15.4%1,3 pro forma for DTC and Helix (12.1% as reported) • Total Capital ratio of 18.3%1,3 pro forma for DTC and Helix (14.9% as reported) Capital Strength • SREP 2019 ratios: CET1 of 10.5% and Total Capital of 14.0%, reflecting phasing-in of CCB and O-SII Buffer
Slide 3: At a glance - Significant Improvement in Key Financial Indicators
At a glance- Significant Improvement in Key Financial Indicators c.€8 bn balance sheet deleveraging since 2013 > €10 bn Gross NPE reduction since peak NPE ratio € bn 30.3 € bn 63% 47% 47% 36% 15.0 -€8.2 bn 23.6 22.1 8.8 -€10.2 bn 7.5 4.8 Dec Dec Dec Dec Dec Dec Dec 2013 2017 2018 2014 2017 2018 2018
Slide 4: Strengthening capital position into 2019
Strengthening capital position into 2019 CET1 ratio at 15.4%2,3,4 pro forma for DTC and Helix 18.3% 1.6% 15.4% 1.3% 1.6% 16.7% 11.9% 0.50% 12.1% 1.7% 15.4% (0.4%) (0.1%) 0.2% 12.1% CET 1 Operating Provisions DTA RWA CET 14 DTC Helix CET 1 4 T2 AT1 Total Capital 30 Sep 2018 profitability and other 31
Slide 5: Unchanged SREP capital requirements expected for 2019
Unchanged SREP capital requirements expected for 2019 when ignoring the phasing-in of CCB1 and O-SII2 SREP 2019: CET1 ratio at 10.5% SREP 2019: Total Capital ratio at 14.0% 4 1 5 1 2 Pillar 1 Pillar 2R CCB O-SII Buffer -(transitional)2 Pillar 1 Pillar 2 AT1 capital Tier 2 capital Pillar 2R CCB O-SII
Slide 6: Recent DTA/DTC law amendment less capital punitive
Recent DTA/DTC law amendment less capital punitive • A law amendment converting the DTA to DTC was adopted by Parliament on 1 March 20191 • Pro forma capital impact on 31 December 2018: +170 bps to CET1 (transitional) and Total Capital Ratio Initial Capital position in Capital position Capital posit
Slide 7: Corporate Actions in 2018 unlocking value for shareholders
Corporate Actions in 2018 unlocking value for shareholders • HELIX: Agreement for sale of €2.7 bn1 NPEs • Consideration of c.€1.4 bn, 24 cents on contractual and 48 cents on GBV • Overall transaction c.80 bps2 capital accretive • Completion expected around end 1Q2019/early 2Q2019; Awaiting ECB’s app
Slide 8: c.€10 bn NPE reduction since peak
c.€10 bn NPE reduction since peak c.75% reduction of Net NPEs since peak (Dec 14) Group € bn Net NPEs (€ bn) Provisions Gross NPE ratio Gross NPE ratio pro forma for Helix LLR (€ bn) 63% 62% Sale of 60.0% 55% • Fifteen consecutive quarters of €2.7 bn NPEs 47% 47% 47% €7.5 bn organic NPE reduction 50
Slide 9: c.€2.0 bn NPE outflows in FY2018, leading to €1.3 bn organic NPE reduction
c.€2.0 bn NPE outflows in FY2018, leading to €1.3 bn organic NPE reduction Outflows of NPEs on curing and exits (€ bn) Cyprus operations (€bn) Curing of restructured loans DFAs & DFEs Write offs and non contractual write offs Other (Interest / Collections / Change in balances) - 0.04 (0.09) (0.05) (
Slide 10: Core NPE risk at €3.8 bn down by 67% since 2015
Core NPE risk at €3.8 bn2 down by 67% since 2015 and 55% covered € bn 14.0 NPEs No impairment, No arrears1 % of Gross Loans Provision coverage Forborne, NPEs, no arrears but impaired 2.0 Exit dates for non core NPEs 0.6 €1.0 bn NPEs with no arrears1 No impairments no arrears € bn 8.8 No arrears but
Slide 11: Clear strategy for residual NPEs
Clear strategy for residual NPEs Net organic reduction of €217 mn on residual portfolio in 4Q2018 in line with target of c.€200 mn reduction per quarter (c.€1.3 bn in FY2018) Group NPEs (€ bn) pro forma for Helix2 Non Core NPEs • Close monitoring redefaults & quality of restructurings 4.8 Core NPEs-
Slide 12: ESTIA - Government scheme for the resolution of NPEs
ESTIA- Government scheme for the resolution of NPEs backed by Primary Residence • Eligible loans to be restructured to lower of contractual and Open Market Value (OMV) (on balance sheet solution) • Government to subsidise 1/3 of instalment, provided certain eligibility criteria1 are met: • Borrowers
Slide 13: Foreclosures becoming an important tool in NPEs resolution
Foreclosures becoming an important tool in NPEs resolution Foreclosure commenced1 for 3,011 properties (cumulative) with value €964 mn • >70% negotiation trigger ratio3 no. of properties • >1/5 properties auctioned are sold at auction 1,265 1,394 • 8 months time to auction (refer to slide 37) 352 •
Slide 14: Coverage & Collateral
Coverage & Collateral Quarterly CoR at 1.0%1 NPE total coverage at 117% when collateral included Cost of Risk - Group (excluding additional provisions in 2Q17) 2 2 4 Cost of Risk - Group (including additional provisions in 2Q17) Loan loss reserves Tangible Collateral 122% 122% 117% 115% 109% 3.9% Ad
Slide 15: €1 bn REMU sales of 1000 assets since set-up in Jan 2016
€1 bn REMU sales of 1000 assets since set-up in Jan 2016 Sales since REMU set-up Sale agreements of €504 mn in FY2018, including CyREIT disposal # Assets €1.01 bn #1086 Sales contract prices1 (€ mn) Total Sale Agreements 48 of €504 mn in FY2018 2018 504 #656 106 392 2017 330 #331 238 160 2016 179 #9
Slide 16: New lending of €1.9 bn in Cyprus in FY2018
New lending of €1.9 bn in Cyprus in FY2018, exceeding new lending in FY2017 97% of new lending in Cyprus since 2016 is performing Tourism & Trade core sectors New Lending (Cyprus) Contribution to 9M2018 real growth of GVA in p.p. Retail Other Retail Housing SME Corporate Tourism, trade and transport
Slide 17: Significant liquidity surplus of €3.1 bn
Significant liquidity surplus of €3.1 bn following abolition of add-on on 1 Jan 2019 11% yoy increase in local deposits, offsets the 11% yoy reduction in IBU4 deposits Cyprus deposits €bn 4 Liquidity Minimum 31 Dec Cyprus non-IBU Cyprus IBU Surplus ratio required 2018 16.85 16.84 Cyprus deposits by
Slide 18: Balance sheet de-risking results in a smaller but safer loan book
Balance sheet de-risking results in a smaller but safer loan book Efficiency of Performing book remains consistent Net Loans: Performing vs Legacy Interest Income on Loans: Performing vs Legacy € mn (pre FTP) Performing Legacy UK (Performing) 1 2 € bn Performing Legacy Helix UK (performing) pro form
Slide 19: Profitability
Risk adjusted yield will rise as Legacy book reduces Performing Legacy Group Of which Of which Of which FY2018 FY2018 FY2018 included included included w/o UK in Helix w/o UK in Helix w/o UK in Helix • Performing Book is expected to grow and to increasingly drive Interest Income on Group results loa
Slide 20: Drivers of NIM
Drivers of NIM Total Assets (€ bn) AIEA mix (% Total) Effective yield on assets & cost of funding 1 Performing Legacy Performing Legacy Liquids1 Non int-producing Performing Legacy Liquids NIM Liquids 2 Cost of funding 3 Effective yield (bps) AIEA €17.9 bn €18.0 bn €18.2 bn €18.2 bn 256 254 22.1 22.
Slide 21: Non interest income of €84 mn in 4Q2018
Non interest income of €84 mn in 4Q2018 Analysis of Non Interest Income (€ mn) – Quarterly Net FX gains/(losses) & Net gains/(losses) on other financial instruments, and other income 1 Net fee and commission % Recurring income Gains/(losses) from revaluation and disposal of investment properties and
Slide 22: Total Expenses
Total Expenses Cost to Income Ratio (C/I ratio) Representation for deconsolidation of UK subsidiary in 3Q2018 Cost to Income ratio excluding special levy on banks and SRF contibution • C/I ratio at 48% for FY2018 (excl special levy on banks and SRF 46% 47% 48% contribution) after deconsolidation of
Slide 23: FY2018 reported and underlying performance
FY2018 reported and underlying performance FY2018 FY2018 pro forma € mn DTA Helix w/o UK for DTA and Helix w/o UK Net Interest Income 452 - (89) 363 Non interest income 329 - (4) 325 • Underlying profit after tax of Total income 781 - (93) 688 €80 mn pro forma for DTA and Total expenses (400) - 7 (3
Slide 24: Income Statement Review
Income Statement Review FY2018 FY2017 € mn 4Q2018 3Q2018 qoq % yoy%2 Key Highlights w/o UK w/o UK Net Interest Income 452 544 112 113 -2% -17% • NII broadly flat at €112 mn for 4Q2018, Non interest income 329 317 84 66 28% 4% ignoring the reclassification of Total income 781 861 196 179 9% -9% previ
Slide 25: Executive summary
Executive summary • Fully committed to accelerate de-risking, organically and non-organically • Strong capital ratios pro forma for DTC and Helix, allowing acceleration of risk reduction and recalibration of cost base • Improved quality but smaller b/s and revenue base going forward, reflecting cont
Slide 26: Key Information and Contact Details
Key Information and Contact Details Credit Ratings: Standard & Poor’s Global Ratings: Long-term issuer credit rating: Upgraded to “B+” on 30 August 2018 (stable outlook) Short-term issuer credit rating: Affirmed at “B” on 30 August 2018 Fitch Ratings: Long-term Issuer Default Rating: Affirmed at “B-
Slide 27: Appendix – Macroeconomic overview
Appendix – Macroeconomic overview 27
Slide 28: Cyprus economy recovering strongly
Cyprus economy recovering strongly… On a quarterly basis real GDP increased by 3,9% in Q4 seasonally adjusted bringing Unemployment rate dropped to 9.4% in Q1; 8,3% in Q2 and 8,4% in Q3 2018 the average rate of growth in 2018 to 3,9% seasonally adjusted 18.0 16.4 15.8 8.0 460 16.0 6.0 4.0 4.0 3.7 3.
Slide 29: Driven by tourism, professional services and construction activity
… driven by tourism, professional services and construction activity Economic activity has been broadly based with 1 Tourism arrivals (mn) Tourism: % changes y-o-y main drivers tourism and construction Contribution to growth of real GVA Total arrivals (% change) Total receipts (% change) 3.9 4,84 4,
Slide 30: Appendix - Helix additional information
Appendix-Helix additional information 30
Slide 31: Impact of Helix on FY2018 Financial Results
Impact of Helix on FY2018 Financial Results 31.12.2018 Balance Sheet 31.12.2018 Helix1 pro forma1 A more liquid balance sheet for Helix • Loan to deposit ratio of 65% from 72% Liquid Assets2 6.4 1.1 7.5 • Loan/Assets decrease to 49% from 55% Net Loans 12.0 (1.1) 10.9 • Liquid assets (cash, bank loan
Slide 32: Impact of Helix on FY2018 Financial Results
Impact of Helix on FY2018 Financial Results 31.12.2018 Asset Quality 31.12.2018 Helix1 pro forma1 for Helix Accelerated de-risking Gross Loans 15.9 (2.8) 13.1 • €2.7 bn or 36% reduction in gross NPEs NPEs 7.5 (2.7) 4.8 • Provisions coverage at 47% NPE ratio 47% 36% • Organic NPE reduction expected t
Slide 33: Helix key highlights
Helix key highlights 31 December 2018 Assets sold (based on carrying value as at 30 June 2018, before the impact of the Transaction on the 2Q2018 income statement) € bn Receipts € bn Contractual Loans1 5.71 Consideration 1.38 Gross Loans 2.81 of which: of which NPEs 2.70 - Cash 1.33 Provisions Held
Slide 34: Transformational NPE Trade (Helix) Delivers Accelerated Risk Reduction
Transformational NPE Trade (Helix) Delivers Accelerated Risk Reduction First sizeable Corporate and SME secured NPE sale in Cyprus (c.15% of Cyprus GDP) Helix Portfolio (€ bn ) 2.7 Performing 0.1 Non Core NPEs 0.2 0.0 Core NPEs: 0.5 Retail Update SMEs Corporate • As at 31 Dec 2018 portfolio includes
Slide 35: Helix - Legal structure
Helix- Legal structure Key Steps and Diagram • The transaction intends to follow the below broad key steps: • The portfolio will be transferred by the Bank of Cyprus (Seller) to a licensed Cypriot Credit Acquiring Company (“CyCAC”). • The transfer is expected to take place pursuant to a court sancti
Slide 36: Helix - Conditions Precedent in current draft SPA
Helix- Conditions Precedent in current draft SPA Helix conditions precedent Condition Precedent Description Transfer of the Assets Transfer of the NPL Assets to the CyCAC in accordance with the Scheme of Arrangement (this is the arrangement as per which the NPL Assets will be transferred by the Sell
Slide 37: Appendix – Additional asset quality slides
Appendix – Additional asset quality slides As from 1 January 2018 and following IFRS 9 implementation, the Bank’s disclosure in relation to the loan portfolio quality is based on Non Performing Exposures (NPEs), in line with the EBA standards and ECB NPEs Guidance to the banks. Exposures that meet t
Slide 38: Improved Legislative Framework supporting realisation and disposal of collateral
Improved Legislative Framework1 supporting realisation and disposal of collateral Amendments approved aim to strength the foreclosure framework via: Clarifying and limiting the reasons for setting aside the foreclosure process through court Foreclosure Enhance auction routes Law • Introduction o
Slide 39: Restructuring efforts continue; re-default levels stable
Restructuring efforts continue; re-default levels stable Quarterly evolution of restructuring activity (€ bn) (Cy operations) Restructured loans Write offs & non contractual write offs DFAs 2.2 2.0 0.3 0.4 0.4 0.3 1.1 0.9 0.9 0.2 0.8 0.8 0.2 0.7 1.5 0.2 0.1 0.5 0.1 0.2 0.5 0.2 0.1 1.3 0.2 0.3 0.2 0.
Slide 40: Adequacy of provisions with NPE provision coverage at 52%
Adequacy of provisions with NPE provision coverage at 52% NPE coverage at 52% Quarterly Provisions for impairment of customer loans (€ mn) NPEs provision coverage 52% 52% 52% 60% 49% 51% 48% 48% 42% 50% 41% 40% 592 30% 20% 10% 103 64 73 50 58 41 29 40 0% 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2
Slide 41: Continuous progress across all segments (Cy operations)
Continuous progress across all segments (Cy operations) Focus shifts to Retail and SME after intense Corporate attention Transfers within business lines during 4Q2018 Transfers within business lines during 4Q2017 Corporate NPEs (Cy) €4.64 bn Dec 16 4.51 Dec 2018 Dec 2018 pro forma Inflows 0.14 0.30
Slide 42: Gross loans & NPEs by Customer Type
Gross loans & NPEs by Customer Type Gross loans by customer type (€ bn) Total 20.13 18.75 2.09 16.20 15.90 2.06 4.22 1.93 13.15 4.17 1.79 4.35 4.05 4.07 1.75 3.51 3.22 2.98 4.07 2.39 9.47 9.01 7.00 7.06 4.94 1 Dec-16 Dec-17 Sep-18 Dec-18 Dec 18 pro forma for Helix2 Retail other Retail Housing SMEs C
Slide 43: NPE provision coverage and Total coverage by segment (Cy)
NPE provision coverage and Total coverage by segment (Cy) Coverage and collateral maintained post Helix Cyprus operations 1 Pro forma NPEs Loan loss reserves Tangible Collateral Corporate €1.0 bn SME €1.2 bn €1.5 bn Retail-Other €0.9 bn Total Cyprus €4.6 bn Retail-Housing 127% 118% 123% 123% 123% 12
Slide 44: Asset Quality - NPEs analysis
Asset Quality- NPEs analysis (€ mn) Dec-18 Sep-18 Jun-18 Mar-18 Dec-17 A. Gross Loans after Fair value on Initial recognition 15,438 15,721 17,798 18,020 18,087 Fair value on Initial recognition 462 480 514 566 668 B. Gross Loans 15,900 16,201 18,312 18,586 18,755 B1. Loans with no arrears 8,260 8,3
Slide 45: Analysis of Loans and NPEs ratios by Economic Activity
Analysis of Loans and NPEs ratios by Economic Activity Gross loans by economic activity (€ bn) % of total 31.12.17 31.03.18 30.06.18 30.09.18 31.12.18 12% 4% 8% 12% 10% 40% 8% 6% 6.82 6.77 6.72 6.47 6.50 3.29 3.26 3.20 1.77 1 2.34 2.11 1.95 2.04 2.04 2.02 1.85 1.98 1.97 1.91 1.61 1.27 1.40 1.39 1.39
Slide 46: Rescheduled Loans for the Cyprus Operations
Rescheduled Loans for the Cyprus Operations Rescheduled Loans1 by customer type (€ bn) Retail housing Retail consumer SMEs Corporate 7.4 6.3 1.7 5.9 5.6 5.4 0.6 1.4 4.8 1.4 1.3 0.6 1.3 1.7 0.5 0.5 1.1 1.3 0.5 1.3 1.3 0.5 1.2 1.0 3.4 3.0 2.7 2.5 2.4 2.2 31.12.16 31.12.17 31.03.18 30.06.18 30.09.18 31
Slide 47: Gross loans and provisions by IFRS 9 stage
Gross loans and provisions by IFRS 91 stage Gross Loans Provisions Gross Loans Provisions 31 Dec 2018 31 Dec 2018 31 Dec 2018 31 Dec 2018 pro forma for Helix2 pro forma for Helix2 € bn Stage 1 6.2 0.1 6.2 0.1 Stage 23 2.3 0.1 2.2 0.1 Stage 33 7.4 3.7 4.8 2.1 TOTAL 15.9 3.9 13.2 2.3 • Reclassificatio
Slide 48: REMU – stock of properties
REMU – stock of properties REMU focus now on sales (Group) € mn BV (196) 428 (166) (17) (162) 2 1641 1530 Stock as at Additions Sales Transfer to Impairment loss Transfer to non-current Foreign exchange and Stock as at 01 Jan 2018 Investment Properties assets and disposal other movements 31 Dec 2018
Slide 49: REMU – the engine for dealing with foreclosed assets
REMU – the engine for dealing with foreclosed assets Book Value Sales of €196 mn for the FY2018 (Group) Book Value sales by type (Group) Hotels Commercial Residential Land 110 FY2018 €196 mn 27 71 36 64 60 56 55 48 33 46 40 42 196 16 100 28 1 2 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017
Slide 50: Fair value of collateral and credit enhancements held by the Group
Fair value of collateral and credit enhancements held by the Group 31 Dec 2018 Loans and advances to customers (€ mn) Cash 422 Securities 306 Letters of credit / guarantee 222 Property 18,107 Other 1.329 Surplus collateral (9,616) Net collateral 10,770 50
Slide 51: Appendix – Additional financial information
Appendix – Additional financial information 51
Slide 52: Consolidated Balance Sheet
Consolidated Balance Sheet % % Assets (€ mn) 31.12.18 31.12.17 change Liability and Equity (€ mn) 31.12.18 31.12.17 change Cash and balances with 4,610 3,394 36% Deposits by banks 432 495 -13% Central Banks Loans and advances to 473 1,193 -60% Funding from central banks 830 930 -11% banks Debt secur
Slide 53: Consolidated Balance Sheet – ignoring classification of Helix as Held for Sale
Consolidated Balance Sheet – ignoring classification of Helix as Held for Sale % % Assets (€ mn) 31.12.18 31.12.17 change Liability and Equity (€ mn) 31.12.18 31.12.17 change Cash and balances with 4,610 3,394 36% Deposits by banks 432 495 -13% Central Banks Loans and advances to 473 1,193 -60% Fund
Slide 54: Core Cypriot business
Core Cypriot business Market shares1 Strong market shares in resident and non-resident deposits Loans new basis Deposits Residents Non-residents 1 45.4% 45.4% 38.8% 39.3% 38.3% 37.3% 35.8% 35.3% 38.6% 37.5% 37.1% 36.7% 35.5% 35.3% 34.1% 36.3% 36.0% 35.1% 31.5% 29.5% 30.1% 32.8% 31.3% 31.1% Dec 16 Ju
Slide 55: Income Statement bridge for FY2018
Income Statement bridge1 for FY2018 € mn Underlying basis Reclassification Statutory Basis Net interest income 452 (33) 419 Net fee and commission income 166 (11) 155 Net foreign exchange gains and net gains on financial instrument transactions and disposal/dissolution of 66 17 83 subsidiaries and a
Slide 56: Analysis of Interest Income and Interest Expense
Analysis of Interest Income and Interest Expense Representation for deconsolidation of UK subsidiary Analysis of Interest Income (€ mn) 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 Loans and advances to customers 155 147 147 143 139 Loans and advances to banks and central banks 3 4 1 0 0 Investments available
Slide 57: Cyprus: Income Statement by business line for FY2018
Cyprus: Income Statement by business line for FY2018 Consumer SME Corporate International Wealth & Total € mn RRD REMU Insurance Treasury Other Banking Banking Banking Banking Markets Cyprus Net interest income/(expense) 186 40 103 51 8 77 (17) 0 20 (40) 428 Net fee & commission income 46 10 15 63 2
Slide 58: Risk Weighted Assets
Risk Weighted Assets Risk weighted assets by Geography 31.12.2018 € mn) 30.09.17 31.12.17 31.03.18 30.06.18 30.09.18 31.12.2018 DTC Helix2 pro forma for Helix 2 Cyprus 16,098 16,011 16,711 16,051 15,355 15,069 148 (1,505) 13,712 Russia 30 27 25 23 20 24 - 24 United Kingdom 842 922 989 1,051 95 84 -
Slide 59: Regulatory Capital
Regulatory Capital Equity and Regulatory Capital € mn) 30.09.17 31.12.17 31.03.18 30.06.18 30.09.18 31.12.18 Shareholders’ equity 2,562 2,586 2,298 2,243 2,206 2,342 CET1 capital 2,1451 2,184 2,1641 2,060 1,866 1,864 Tier I capital 2,1451 2,184 2,1641 2,060 1,866 2,084 Tier II capital 247 266 262 26
Slide 60: Buffer to MDA Restrictions Level & Distributable Items
Buffer to MDA Restrictions Level & Distributable Items Maximum Distributable Amount Distributable Items at Bank level Pro Forma3 CET1 Ratios (Post Helix) 15.4% • Distributable Items preliminary3 amount to - Bank: c.€0.4bn (as at 31-Dec-2018) and 430bps - BOCH: c.€0.6bn (as at 31-Dec-2018 pro forma,
Slide 61: Analysis of Deposits
Analysis of Deposits Deposits by Currency (€ bn) 31 December 2018 (%) 17.85 18.00 18.43 16.85 16.84 1% 16.51 0.17 0.18 0.15 0.12 0.11 2% 2.12 2.17 9% 0.22 2.11 0.31 0.29 1.69 1.58 1.51 1.48 1.74 1.58 2.20 13.83 14.12 14.53 14.91 14.96 12.40 88% Dec-16 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 EUR USD GBP O
Slide 62: Reduction in Overseas Non-Core Exposures
Reduction in Overseas Non-Core Exposures Overseas non-core exposures (€ mn) Russia: Net exposure Romania: Net exposure Serbia: Net exposure UK: Net exposure Greece: Net exposure 518 • The Group continues its efforts for further deleveraging and disposal of non-essential assets and operations in Gree
Slide 63: Appendix – Glossary & Definitions
Appendix – Glossary & Definitions 63
Slide 64: Glossary & Definitions
Glossary & Definitions Comprise: (i) provisions for impairment of customer loans and advances, (ii) the fair value adjustment on initial recognition of loans acquired from Laiki Bank and Accumulated provisions on loans classified at FVPL, and (iii) provisions for off-balance sheet exposures disclose
Slide 65: Glossary & Definitions
Glossary & Definitions ECB European Central Bank Effective yield Interest Income on Loans/Average Net Loans Effective yield of liquid Interest Income on liquids after hedging, over average liquids (Cash and balances with central banks, placements with banks and bonds). Historical information assets
Slide 66: Glossary & Definitions
Glossary & Definitions Net fee and commission Net fee and commission income over total income is the net fee and commission income divided by the total income (as defined) income over total income Net loans and advances Loans and advances net of accumulated provisions (as defined) Non-interest incom
Slide 67: Glossary & Definitions
Glossary & Definitions Relates to the conversion of Deferred Tax Assets (DTA) to Deferred Tax Credits (DTC) as per CRR Article 39(2), following legislative amendments adopted by the Cyprus Parliament on 1 March 2019, allowing for a release of capital. According to Cyprus Law, for a law of the Parlia
Slide 68: Glossary & Definitions
Glossary & Definitions Total provisions and Total provisions and impairments comprise provision charge (as defined), plus (provisions)/reversal of litigation and regulatory matters plus (impairments)/reversal impairments of other financial and non-financial assets T2 Tier 2 Capital Underlying basis
Slide 69: Disclaimer
Disclaimer This document contains certain forward-looking statements which can usually be identified by terms used such as “expect”, “should be”, “will be” and similar expressions or variations thereof. These forward-looking statements include, but are not limited to, statements relating to the Grou