Bank Of Cyprus Holdings Plc · CSECY:BOCH
Bank Of Cyprus — 9M2024 Earnings Presentation
77 slides from Bank Of Cyprus's earnings presentation, Nov 12, 2024
Slide 1: Bank of Cyprus Group Financial Results
Bank of Cyprus Group Group Financial Results For the nine months ended 30 September 2024
Slide 2: Disclaimer
DISCLAIMER The financial information included in this presentation is not audited by the Group’s external Forward Looking Statements auditors. This document contains certain forward-looking statements which can usually be This financial information is presented in Euro (€) and all amounts are rounde
Slide 3: 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 • 43.2%1 loan market share; 37.6%1 deposit market share • Sovereign rated investment grade • #1 Life and #2 Non-Life Insuranc
Slide 4: Strong, Diversified Service-Based Economy; Growth Outpacing Eurozone Average
Strong, Diversified Service-Based Economy; Growth Outpacing Eurozone Average GDP growth of 3.4% for 2Q2024 Cyprus Public Debt to GDP below Euro area average Real GDP (yoy % change) As at 30 June 2024 2022: 7.4% 2023: 2.6% 164% 10.00% 137% 8.00% Expected to decrease 7.1% to 59%1 by end-2026 6.00% 101
Slide 5: Macro Trends Continue to Improve
Macro Trends Continue to Improve Unemployment rate decreased to 4.8% in 2Q2024 Cyprus inflation at 1.6% in September 2024 2 Quarterly (%) (seasonally adjusted) Cyprus HICP ECB Depo rate 2022: 6.8% 2023: 5.9% 11.0% 2023 HICP: 3.9% 9M2024 HICP: 2.3% 9.0% 7.5% 7.0% 6.6% 6.5% 6.5% 7.0% 7.6% 6.5% Estimat
Slide 6: 3Q2024 Strong Financial Performance Continues
3Q2024 Strong Financial Performance Continues Gradual decline in NII reflecting the start of the ECB rate cutting Cost to income ratio1 at 35% reflecting the full impact of a small VEP2 5.0% 4.0% 4.0% 4.0% 3.7% 4.0% 3.7% 4.0% 3.1% 4.0% 3.9% 3.8% 3.0% 3.7% 3.4% 3.2% 2.0% 34% 35% 2.3% 214 220 213 207
Slide 7: Seven Consecutive Quarters of ROTE >20% on a Growing Equity Base
Seven Consecutive Quarters of ROTE >20% on a Growing Equity Base EPS broadly stable at c.€0.30 for 5 consecutive quarters ROTE (reported) of >20% for 7 consecutive quarters (€) 26.6% 25.6% 25.6% 0.31 0.30 0.31 23.6% 23.7% 0.28 0.29 0.29 21.3% 21.6% Sustainable mid-teens 0.21 1Q2023 2Q2023 3Q2023 4Q2
Slide 8: 9M2024 Performance Tracking Well Against 2024 Targets
9M2024 Performance Tracking Well Against 2024 Targets 9M2024 FY2024 targets (August 2024) 624 mn c.800 mn Net Interest Income (€) Average ECB Depo rate (3.9%) (3.7%) assumptions 32% <35% Cost to Income Ratio1 NPE Ratio2 <3% Distribution for 2024: 2.4% • Targeting 50% payout 4; >10% distribution yiel
Slide 9: Factors Impacting 2025 NII
Factors Impacting 2025 NII NII sensitivity to parallel shift in interest rates (annualised)1 Impacts on 2025 NII Sep 2024 +100bps -100bps Headwinds EUR €84 mn -€86 mn • Faster pace of ECB rate cuts than expected in 2Q2024 USD €3 mn -€3 mn • Markets expecting 150 bps yoy decline in 2025 average rates
Slide 10: ROTE and Distributions Targets
ROTE and Distributions Targets FY2025 targets (Aug 2024) ROTE High-teens • Despite lower rate expectations, high-teens on 15% CET1 ratio ROTE on 15% CET1 ratio Sustainable • Impacted by higher equity base, mid-teens Mid-teens ROTE Mid-teens reported ROTE range achievable ROTE on normalised rates at
Slide 11: 9M2024 Financial Performance
Executive Summary – Updated Financial Targets 9M2024 Financial Performance Appendix 11
Slide 12: 9M2024 Highlights
9M2024– Highlights • Cyprus GDP to grow by c.3.7%1 in 2024 outpacing Euro area average Strong economic growth • Strong new lending of €1.7 bn, up 9% yoy continues • Gross performing loan book at €10.0 bn up 3% since December 2023 • NII at €624 mn up 9% yoy; 3Q2024 NII remains strong at €204 mn, simi
Slide 13: Income Statement
Income Statement € mn 9M2024 9M2023 yoy% 3Q2024 2Q2024 qoq% Net Interest Income 624 572 9% 204 207 -1% Non-interest income 204 224 -9% 75 66 14% Total income 828 796 4% 279 273 2% Total operating expenses1 (266) (248) 7% (99) (86) 14% Operating profit 536 518 3% 173 179 -3% Provisions and impairment
Slide 14: Highly Liquid Balance Sheet Being Positioned for Lower Rates
Highly Liquid Balance Sheet Being Positioned for Lower Rates (€ bn) 25.86 25.86 Other assets 1.99 Other 1.43 REMU repossessed 0.76 properties Equity (incl AT1) 2.75 2024 final MREL requirement already achieved • 24%1 linked with Bank’s base rate (‘natural with significant buffer hedging’ of time & n
Slide 15: NII Remains Strong in 3Q2024 Despite Rate Cut
NII Remains Strong in 3Q2024 Despite Rate Cut NII remains strong at €204 mn; NIM at 352 bps Effective yield on assets & cost of funding 397 400 390 370 Performing loans Cost of deposits NIM1(bps) 352 1 400 Liquid assets 1 Cost of wholesale funding +9% 200 yoy (bps) 624 520 547 560 554 548 544 0 572
Slide 16: Hedging Actions Since 2023 Reduce NII Sensitivity
Hedging Actions Since 2023 Reduce NII Sensitivity NII sensitivity to parallel shift in interest rates (annualised)6 Hedging Dec 2023 Sep 2024 (€ bn) Receive fixed IRSs1 -100 bps Dec 2022 Dec 2023 Sep 2024 - 2.50 on non-maturing deposits Average yield 2.9% EUR -€126 mn -€110 mn -€86 mn Receive fixed
Slide 17: Deposits up 4% yoy; Stable Deposit Mix and Resiliently Low Cost of Deposits
Deposits up 4% yoy; Stable Deposit Mix and Resiliently Low Cost of Deposits Deposits at €20.0 bn1 up 4% yoy; mix at 33% flat qoq Gradual increase in cost of deposits at 0.37% in 3Q2024 € bn Cost of deposits 10 14 19 24 29 34 37 (bps) 19.3 19.3 19.3 19.7 20.0 101 108 6.4 33% 6.6 33% 110.0 87 6.0 31%
Slide 18: Strong New Lending at €1.7 bn, up 9% yoy
Strong New Lending at €1.7 bn, up 9% yoy New lending at €481 mn in 3Q2024 Gross performing book1 up 3% since Dec 2023 +9% € mn € bn 1,708 1,563 +3% 202 676 157 624 9.86 9.78 10.00 10.06 10.04 64 0.74 0.77 0.82 0.83 64 551 748 0.76 494 462 73 481 699 50 445 43 66 358 65 3.79 3.69 3.81 3.76 3.70 297 2
Slide 19: Fixed Income Portfolio up 16% yoy, Representing 16% of Total Assets
Fixed Income Portfolio up 16% yoy, Representing 16% of Total Assets Fixed income securities per category - NBV Fixed income securities per issuer type - NBV % assets1 14% 14% 15% 16% to increase to c.17% 16% (€ mn) by Dec 20242 (€ mn) 4,061 4,061 3,828 221 Other financial 3,828 3,489 3,548 202 & oth
Slide 20: Non-NII at €75 mn in 3Q2024, up 14% qoq
Non-NII at €75 mn in 3Q2024, up 14% qoq (€ mn) 81 3 76 75 72 71 12 3 66 1 2 2 11 63 QoQ Performance (3Q2024 vs 2Q2024) 5 11 1 1 17 16 8 10 15 13 16 13 12 • Net fee and commission and net insurance result income broadly 10 10 flat qoq 54 61 58 62 52 57 57 46 45 46 45 • FX and other income at €17 mn v
Slide 21: Profitable Life Insurance Business
Profitable Life Insurance Business - Valuable and Sustainable Contribution to the Group € mn 9M2024 9M2023 yoy% 10% 5% 27% Contribution Market Total Regular income 142.6 126.8 12% Contribution to Group share2 to non-NII PAT Net Insurance result 21.4 21.6 -1% Net other operating costs (0.6) (0.9) -31
Slide 22: Profitable Non-Life Insurance Business
Profitable Non–Life Insurance Business – Valuable and Sustainable Contribution to the Group € mn 9M2024 9M2023 yoy% 3% 14% 7% Contribution Market Contribution to Group Gross written premium (GWP) 49.8 48.7 2% share2 to non-NII PAT Net Insurance result 13.2 16.2 -18% Other operating costs (non- (2.1)
Slide 23: Leading Card Processing and Payment Solutions Business in Cyprus
Leading Card Processing and Payment Solutions Business in Cyprus € mn 9M2024 9M2023 yoy% 13% 3% 81% Net fee and commission income 21.2 20.7 2% Contribution Market Contribution to the share1 Net other income 2.8 2.9 -5% to non-NII Group’s PAT FX and net gains on revaluation 2.0 0.9 142% of investment
Slide 24: Digital Offerings via Digital Channels Enhance Group's Sales
Digital Offerings via Digital Channels Enhance Group’s Sales New digital loans & Quickloans1 Digital account openings2 New debit cards up 103% yoy of €82 mn in 9M2024 up 61% yoy € mn Accounts (#) Debit Cards (#) +103% +61% +7% 15,798 14,583 77 82 9,033 7,801 4,473 3,130 10 9M2022 9M2023 9M2024 9M202
Slide 25: Jinius; Leader in Shaping the Digital Local Economy
JINIUS; Leader in Shaping the Digital Local Economy • Establishment of Jinius Ltd subsidiary in April 2023 • Business-to-Business services and enhanced • Launched new Business-to-Consumer service current ones in 2024: in February 2024: • Tenders management • Product Marketplace • Ecosystem managemen
Slide 26: 9M2024 Cost to Income Ratio Remains Low at 32%
9M2024 Cost to Income ratio1 Remains Low at 32% Total operating expenses1 up 14% qoq and 7% yoy QoQ Performance (3Q2024 vs 2Q2024) (€ mn) +7% • Staff costs remain flat qoq 34% 35% 300 1.0 29% 30% 32% 29% 32% 266 248 0.9 • Exit costs and variable pay accrual up by €7 mn qoq reflecting the 250 99 0.8
Slide 27: Cost of Risk at 29 bps in 9M2024
Cost of Risk at 29 bps in 9M2024 Cost of risk Bank’s IFRS 9 macroeconomic assumptions 0.58% 0.62% Base line GDP rate Unemployment rate 2024 3.3% 4.9% 0.31% 0.29% 2025 2.9% 4.7% 9M2023 FY2023 1H2024 9M2024 • Cost of risk of 29 bps (€22 mn) in 9M2024 down 29 bps yoy, reflecting the continued robust pe
Slide 28: Capital, Liquidity & Asset Quality
Executive Summary – Updated Financial Targets Capital, Liquidity & Asset Quality Appendix 28
Slide 29: Robust Capital Position
Robust Capital Position • Regulatory CET1 ratio at 18.6% Regulatory capital ratios • Including 3Q2024 profits net of distribution accrual at the top end of 23.3% 23.7% distribution policy (i.e. 50% payout), CET1 ratio at 19.1%1 22.4% 22.0% 20.4% 20.7% 20.4% 19.3% 18.6% • CET1 generation3 of 355 bps
Slide 30: Asset Quality: NPE Ratio at 2.4%, 2024 Target Already Achieved
Asset Quality: NPE Ratio at 2.4%1, 2024 Target Already Achieved NPEs1 down 16% qoq to <€250 mn; residual NPEs mainly Retail NPE ratio further reduced to 2.4%1 (0.1%1 on a net basis) 100% 96% NPE 85% 90% coverage 77% 73% 77% 80% 4% 3.5% 3.6% 3.4% 70% (€ mn) 358 365 347 2.8% 60% 3% 2.4% 294 50% 247 24
Slide 31: REMU Stock <€800 mn; on Track to Achieve 2025 Target
REMU Stock <€800 mn; on Track to Achieve 2025 Target REMU repossessed stock at €764 mn at September 2024 Organic sales1 consistently close to Open Market Value; comfortably 2.0 above Book Value Group BV (€ bn) 116% 115% 1.48 1.44 110% 110% 108% 108% 1.5 95% 1.16 74% of Open 88% 87% 89% 90% 1.08 -€98
Slide 32: Steadily Improving Credit Ratings for BOC
Steadily Improving Credit Ratings for BOC: 2 Notches Upgrade by Moody’s to Baa1 Moody’s upgraded rating to Baa1 in July 2024; outlook stable S&P upgraded rating to BB+ in June 2024; outlook positive A3 8 A- 8 Baa1 Baa1 BBB+ BBB+ Baa2 7 Baa2 BBB 7 Baa3 Investment grade BBB- Investment grade Ba16 BB+
Slide 33: Concluding Remarks
Concluding Remarks ✓ 9M2024 ROTE at 22.9%, tracking ahead of 2024 targets ✓ 2025 high-teens ROTE on 15% CET1 ratio target reiterated, despite lower rate expectations ✓ Sustainable mid-teens ROTE over the medium term, in a normalised interest rate environment between 2.0-2.5% ✓ Targeting 2024 distrib
Slide 34: 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 35: ESG Update
Executive Summary – Updated Financial Targets ESG update https://www.bankofcyprus.com/globalassets/csr/sustainability-reports/j-03688-2024-boc-csr-sustainability-report- redesign-english-final-res.pdf Appendix 35
Slide 36: ESG Milestones by 9M2024
ESG Milestones by 9M2024 • Gross loans, financing or collateralised by properties, with EPC Category A increased by c.€360 mn following completion of EPC gathering exercise in 9M2024 E • Utilisation of renewable energy in own operations increased by 43% yoy • Scope 1 and Scope 2 GHG Emissions reduce
Slide 37: 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 38: Delivering on our ESG Commitments
Delivering on our ESG Commitments Stakeholder ESG Priorities in 2024 SDG • Set additional decarbonisation targets on loan and investment portfolios • Enhance ESG disclosures to ensure transparency against the ESG performance by publishing the first Investors Corporate Sustainability Reporting Direct
Slide 39: Delivering on our ESG Commitments
Delivering on our ESG Commitments Bank’s performance against baseline of 2021¹: Climate Stability - Target 1: Become Carbon Neutral by reducing Scope 1 & Scope 2 GHG emissions by 42% by 2030 compared to 2021 baseline • c.1% yoy increase in Scope 1 and c.9% reduction in Scope 2 GHG (42%) (8%) (18%) e
Slide 40: Delivering on our ESG Commitments
Delivering on our ESG Commitments Climate Stability – Target 3: Increase portfolio of environmentally friendly loans Climate Stability - Target 4: Increase utilisation of renewable Gross loans (€ mn) energy in own operations 43% 393.6 272.0 Renewable energy 226,2003 323,267 202.7 157.5 (kWh) 127.4 1
Slide 41: Delivering on our ESG Commitments
Delivering on our ESG Commitments Financial Inclusion and Resilience - Target 7: Continue supporting start-ups Health and Safety - Target 8: Contribute and support cancer patients and their under The IDEA1 Innovation Center. families through the Bank of Cyprus Oncology Centre The IDEA Innovation Cen
Slide 42: Delivering on our ESG Commitments
Delivering on our ESG Commitments Education - Target 11: Provide upskilling/reskilling employee opportunities in line Culture and Heritage - Target 12: The Foundation’s main strategic aim with the digital transformation initiatives to broaden career opportunities is to encourage the research and stu
Slide 43: Macroeconomic overview
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Macroeconomic overview 43
Slide 44: 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) 26 20 Tertiary 46% 15 15 14 1 12 Wages per capita #2 country in Europe on number of university 7 graduates per capita
Slide 45: EU Recovery and Resilience Facility (RRF)
EU Recovery and Resilience Facility (RRF) To strengthen the economy’s resilience and potential for economically, socially and environmentally sustainable long-term growth and welfare Positive impact expected on GDP and employment over the next 5 years €1.2 bn €1.0 bn 16.5% from EU mechanism addition
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 €8.0 bn
Robust Liquidity Position; Significant Surplus Liquidity of €8.0 bn Diversified, mainly retail funded deposit base Highly liquid balance sheet Group deposits Liquid assets • Sticky deposit base sits • 56% insured deposits epo d 5% • 62% Retail h 3% 8% held in c a s 56% sured 19% • Average size of Re
Slide 48: Analysis of Deposits
Analysis of Deposits Deposits by Currency (€ bn) Deposits by Customer Sector (€ bn) Currency Sep 23 Dec 23 Jun 24 Sep 24 Sector Sep 23 Dec 23 Jun 24 Sep 24 EUR 17.35 17.51 17.92 18.22 Retail 11.68 11.79 12.40 12.32 USD 1.53 1.45 1.44 1.40 SME 1.01 1.03 1.08 1.12 GBP 0.32 0.31 0.30 0.31 International
Slide 49: Income Statement
Income Statement € mn 9M2024 9M2023 yoy% 3Q2024 2Q2024 qoq% Net Interest Income 624 572 9% 204 207 -1% Net fee and commission income 131 135 -3% 45 44 1% Net foreign exchange gains and net gains/ (losses) on financial instruments 27 29 -5% 14 6 142% Net insurance result 35 38 -7% 12 13 -5% Net gains
Slide 50: Consolidated Balance Sheet
Consolidated Balance Sheet % % Assets (€ mn) 30.09.2024 31.12.2023 change Liability and Equity (€ mn) 30.09.2024 31.12.2023 change Cash and balances with central banks 7,517 9,615 -22% Deposits by banks 381 472 -19% Loans and advances to banks 337 385 -12% Funding from central banks - 2,044 -100% Re
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 Sep 24 Jun 24 Dec 23 € mn Sep 24 Jun 24 Dec 23 Shareholders’ equity 2,508 2,387 2,247 PAT annualised 535 544 384 Average TBV adjusted - Intangible assets (45) (46) (49) for excess CET1 1,837 1,843 1
Slide 52: Capital Position; Quarterly Evolution
Capital Position; Quarterly Evolution min OCR1 requirement for 2024 24.3% 19.1% 5.2% 18.3% 18.6% 1.2% (0.7%) 0.3% 16.06% 11.36% Regulatory CET1 RWAs Regulatory 3Q2024 profits distribution accrual CET1 incl. AT1 & T2 Capital Ratio incl. 3 Jun 24 2 CET1 Sep 2024 and foreeseable Retained Earnings Retai
Slide 53: Risk Weighted Assets– Regulatory Capital
Risk Weighted Assets– Regulatory Capital Risk Weighted Assets by Geography Reconciliation of Group Equity to CET1 30.09.2024 € mn 31.12.22 31.12.23 30.06.24 30.09.24 € mn 30.09.2024 inc. retained earnings Cyprus 10,059 10,297 10,548 10,416 Shareholder’s equity 2,508 2,508 Overseas 55 44 32 25 Less:
Slide 54: Overall Capital Requirements
Overall Capital Requirements CET1 ratio Total capital ratio 16.06% 16.12% 15.56% c.0.93% c.0.93% CCyB c.0.48% 11.36% 11.42% c.1.88% 1.94% O-SII 1.50% c.0.93% c.0.93% 10.72% CCyB c.0.48% CCB 2.50% 2.50% 2.50% c.1.88% c.1.94% O-SII 1.50% Pillar 2R 3.08% 2.75% 2.75% CCB 2.50% 2.50% 2.50% Tier 2 2.00% 2
Slide 55: Buffer to MDA Restrictions Level & Distributable Items
Buffer to MDA Restrictions Level & Distributable Items1 CET1 Ratios 720 bps 772 bps 18.6% 19.1% • Significant CET1 MDA buffer as at 30 September 2024: 720 bps (€751 mn2) • Including retained earnings for the period ended 30 September 2024, significant 11.4% CET1 MDA buffer as at 30 September 2024 at
Slide 56: 2024 Final MREL Requirement Already Achieved with Significant Buffer
2024 Final MREL Requirement Already Achieved with Significant Buffer • MREL ratio including capital used to meet the CBR1 ( as % of RWAs) at 33.8%2 as MREL (% of RWAs) at 30 September 2024; 34.4%3 including retained earnings • MREL ratio (as % of Leverage Ratio Exposure (LRE)) at 13.8%2 as at Septem
Slide 57: Income Statement Bridge for 9M2024
Income Statement Bridge1 for 9M2024 Underlying Statutory € mn Other basis Basis Net interest income 624 - 624 Net fee and commission income 131 - 131 Net foreign exchange gains and net gains/ (losses) on financial instruments 27 1 28 Net gains on derecognition of financial assets measured at amortis
Slide 58: Analysis of Interest Income and Interest Expense
Analysis of Interest Income and Interest Expense Analysis of Interest Income (€ mn) 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 Loans and advances to customers 113 131 138 141 138 139 139 Loans and advances to banks and central banks 57 76 92 97 92 73 69 Repurchase agreements - - - 3 4 7 8 Inve
Slide 59: Income Statement by Business line for 9M2024
Income Statement by Business line for 9M2024 International International Consumer SME Corporate € mn corporate Business RRD REMU Insurance Treasury JCC Other Total Banking Banking Banking Banking Unit Net interest income/(expense) 320 45 121 27 94 11 (20) - 30 - (4) 624 Net fee & commission income/(
Slide 60: Statutory Income Statement for Insurance Businesses for 9M2024
Statutory Income Statement for Insurance Businesses for 9M2024 € mn 9M2024 9M2023 yoy% € mn 9M2024 9M2023 yoy% Insurance revenue 59.3 56.3 5% Insurance service expense (33.9) (34.9) -3% Insurance revenue 51.2 47.3 8% Net insurance service result 25.4 21.4 19% Insurance service expense (27.1) (23.2)
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 loans (excluding legacy)1 by business sector of €10.04 bn € bn Housing Other Private 3.90 0.74 4.64 Individuals Hotels & 1.20 Catering Private individuals Private individuals Business Real Estate 0.96 LTV2 Housing Other €5.40 bn €3.9
Slide 63: Gross Loans and NPE Coverage by Customer Type
Gross Loans and NPE Coverage by Customer Type Gross loans by customer type € mn Dec 23 Jun 24 Sep 241 Retail Housing 3,556 3,597 3,625 Retail other 994 1,054 1,081 SMEs 1,010 1,021 1,002 International corporate 763 821 825 Corporate 3,747 3,825 3,717 Total 10,070 10,318 10,250 Corporate SMEs Retail
Slide 64: Loans by Economic Activity and Arrears Analysis
Loans by Economic Activity and Arrears Analysis Gross loans (€ mn) Dec 23 Jun 24 Sep 241 Loans arrears Dec 23 Jun 24 Sep 241 analysis (€ mn) Trade 886 939 939 Loans with no arrears 9,675 9,989 9,967 Manufacturing 364 375 362 Loans with arrears but not Hotels & Catering 1,178 1,249 1,203 30 35 36 NPE
Slide 65: €47 mn Net NPE Outflows in 3Q2024
€47 mn Net NPE Outflows in 3Q2024 Analysis of total inflows(€ mn) 3Q2024 2Q2024 1Q2024 4Q2023 3Q2023 2Q2023 1Q2023 New inflows 7 7 8 6 9 9 7 Redefaults 1 0 1 1 0 1 2 Unlikely to pay 0 1 2 53 37 1 1 Total inflows 8 8 11 60 46 11 10 Analysis of total outflows (€ mn) Curing of restructuring (5) (18) (6
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) 10,070 10,318 10,250 Dec 23 Jun 24 Sep 241 267 251 237 Stage 1 8,335 8,928 8,952 87% 84 63 Stage 1 1.0% 0.7% 0.7% 62 42 49 Stage 2 3.1% 4.5% 5.2% 54 Stage 2 1
Slide 67: Stage 2 Exposures Well Collateralised; 96% Present no Arrears
Stage 2 Exposures Well Collateralised; 96% of Exposures Present no Arrears € mn 1,051 5.1% Trade 61 Limited migration rate of Stage 2 to • Strong performance of Stage 2 exposures; 96% Real estate 64 Of which: 15.1% Stage 3 at 2.0% present no arrears • €208 mn (20%) Performing Forborne Other 162 5.6%
Slide 68: Rescheduled Loans
Rescheduled Loans1 Rescheduled loans1 by customer type Fair value of collateral and credit enhancements € bn Dec 23 Jun 24 Sep 24 30 Sep 2024 Loans and advances to customers (€ mn) Retail housing 0.14 0.11 0.11 Cash 552 Retail other 0.03 0.03 0.02 Securities 782 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 €2.08 bn sales1 of 4,816 properties across all property classes since set-up €94 mn sales1,4 in 9M2024; comfortably above Book Value Sales € mn (contract prices1) # 99 # 331 # 579 # 1,130 # 674 # 569 #367 Net Proceeds / BV 108% 98% 130% 109% # 575
Slide 70: REMU - the Engine for Dealing with Foreclosed Assets
REMU - the Engine for Dealing with Foreclosed Assets Evolution of repossessed properties managed by REMU By type (€ mn) Group BV (€ mn) Land 31 Golf 862 28 13 48 (82) Commercial & Manufacturing 130 358 Hotels 764 (41) Residential 764 (3) 184 Overseas 1 Jan 2024 Additions Sales Impairments & Transfer
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 gains/(losses) from reval
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
Bank of Cyprus Holdings — 9M2024 Earnings Presentation on 6ix