Bank of Cyprus Holdings PLC · CSECY:BOCH
Bank of Cyprus — 9M2020 Earnings Presentation
90 slides from Bank of Cyprus's earnings presentation, Nov 27, 2020
Slide 1: Group Financial Results for the nine months ended 30 September 2020
Group Financial Results for the six months ended 30 June 2020 Bank of Cyprus Group Group Financial Results For the nine months ended 30 September 2020
Slide 2: Disclaimer
Group Financial Results for the nine months ended 30 September 2020 DISCLAIMER The financial information included in this presentation is neither reviewed nor audited by the Group’s external auditors. regulation, the Group expressly disclaims any obligation or undertaking to release publicly any upd
Slide 3: Table of Contents
Group Financial Results for the nine months ended 30 September 2020 Table of Contents • 9M2020 Financial Results • Medium-term Strategic Targets • Appendix 3
Slide 4: 9M2020 Financial Results
Group Financial Results for the nine months ended 30 September 2020 9M2020 Financial Results 4
Slide 5: 3Q2020 - Highlights
Group Financial Results for the nine months ended 30 September 2020 3Q2020 - Highlights • Cypriot economy more resilient in 3Q2020 than anticipated earlier in the year ~€1 bn • We continue to support the recovery of the Cypriot economy Covid-19 Developments New Lending YTD • New lending of €288 mn r
Slide 6: Cypriot economy more resilient in 3Q2020 than anticipated earlier in the year
Group Financial Results for the nine months ended 30 September 2020 Cypriot economy more resilient in 3Q2020 than anticipated earlier in the year Economy expected to contract in 2020 at a lower rate compared to Euro area Unemployment rate rose at 7.4% in 3Q2020 9.4% GDP 3.7% to 4.7% 3.2% 8.2% 8.3% 1
Slide 7: Economic activity improving since easing of restrictions
Group Financial Results for the nine months ended 30 September 2020 Economic activity improving since easing of restrictions Retail sales increasing Card spending rebounded, having hit low in April 2020 Retail trade volume % change -3m average # ths 1,000 9.1 916 922 5 -1.97 800 755 -5 -4.3 813 818
Slide 8: On-going support to customers and society through COVID-19
Group Financial Results for the nine months ended 30 September 2020 On-going support to customers and society through COVID-19 • ~€1 bn new lending in 9M2020 • Payment holidays until end of 2020 (capital & interest) • Participation in the government’s schemes for interest rate subsidy to • €5.9 bn (
Slide 9: Continue to monitor credit quality of loans under moratorium
Group Financial Results for the nine months ended 30 September 2020 Continue to monitor credit quality of loans under moratorium Payment deferrals granted to 25K customers affecting €5.9 bn gross loans % of Gross Loans # customers under moratorium Gross loans Review campaign of €5.2 bn loans approve
Slide 10: New lending increasing post lockdown, driven by retail housing
Group Financial Results for the nine months ended 30 September 2020 New lending1 increasing post lockdown, driven by retail housing New lending1 of €288 mn in 3Q2020, up 21% qoq Monthly new lending data show improving trend € mn -39% 1,602 124 491 59 977 +21% 881 206 lockdown 44 288 254 442 238 9 17
Slide 11: Performance before exceptional items in 3Q2020
Group Financial Results for the nine months ended 30 September 2020 Performance before exceptional items in 3Q2020 Positive Organic Performance in 3Q2020 Net Interest Income flat qoq Net Fee and Commission income up 6% qoq 42 260 250 83 82 111 106 4 1 +6% 33 35 -18 2Q2020 3Q2020 9M2019 9M2020 2Q2020
Slide 12: Income Statement
Group Financial Results for the nine months ended 30 September 2020 Income Statement € mn 9M2020 9M20191 3Q2020 2Q2020 qoq% yoy% • NII broadly flat qoq at €82 mn Net Interest Income 250 260 82 83 -1% -4% • Non interest income reduced to €55 mn, Non interest income 175 235 55 60 -9% -25% negatively i
Slide 13: Drivers of NIM
Group Financial Results for the nine months ended 30September 2020 Drivers of NIM NII broadly flat qoq Effective yield on assets & cost of funding NII (€ mn) 90 84 85 83 82 199 187 195 188 179 NIM (bps) 3 4 Non-Legacy Legacy Liquids Cost of funding 110 576 200.00 Liquids 1 5 102 100 66000% 560 4 4 9
Slide 14: Non interest income at €55 mn
Group Financial Results for the nine months ended 30September 2020 Non interest income at €55 mn Net fee & Commission % of Total Income 23% 25% 26% 23% 26% (€ mn) • Net fee and commission income increased to €35 mn as transactional 72 72 volumes gradually recover post lockdown 14 11 60 60 • Net insu
Slide 15: Total Operating Expenses down 13% yoy
Group Financial Results for the nine months ended 30 September 2020 Total Operating Expenses down 13% yoy Cost to income ratio1 at 59% broadly flat yoy Total operating expenses down 13% yoy (€ mn) -13% 289 249 63% 62% 122 57% 58% 57% 58% 59% 59% 57% 104 93 96 84 81 84 38 43 167 35 34 35 145 55 53 49
Slide 16: Balance Sheet
Group Financial Results for the nine months ended 30 September 2020 Balance Sheet 16
Slide 17: Balance sheet composition
Group Financial Results for the nine months ended 30 September 2020 Balance sheet composition Total assets Total equity & liabilities € bn € bn 21.37 21.52 21.37 21.52 Other assets 1.94 Other 1.28 1.34 1.91 (including HFS) Equity 1.47 2.12 2.13 REMU properties 1.46 Wholesale 0.26 0.27 Legacy net loa
Slide 18: CET1 at 14.7% pro forma for Helix 2
Group Financial Results for the nine months ended 30 September 2020 CET1 at 14.7% pro forma for Helix 25 min OCR (SREP) requirement for 2020 post ECB Announcement 4 18.2% 1.6% 14.3% 14.6% 14.7% 1.9% 14.5% 0.4% (0.3%) 0.1% 0.1% 0.1% 9.7% 9.7% CET1 30 Jun 1 Operating Provisions and RWAs Amendments to
Slide 19: Deposits at €16.4 bn broadly flat qoq
Group Financial Results for the nine months ended 30 September 2020 Deposits at €16.4 bn broadly flat qoq Cyprus deposits by passport origin2 € bn 3% 16.84 16.69 16.30 16.38 16.38 4% 6% 1 IBU 3.28 20% Corporate 2.05 67% Deposits Retail 10.22 SME Cyprus Other countries 0.83 Dec 18 Dec 19 Jun 20 Sep 2
Slide 20: Asset Quality
Group Financial Results for the nine months ended 30 September 2020 Asset Quality 20
Slide 21: NPE ratio reduced to 21% pro forma for Helix 2; Coverage maintained at 59%
Group Financial Results for the nine months ended 30 September 2020 NPE ratio reduced to 21% pro forma for Helix 2; Coverage maintained at 59% Organic NPE reduction of €230 mn in 3Q2020 with pace NPE coverage maintained at 59% post Helix 2 returning to pre-lockdown levels 128% 130% 128% 122% 122% (€
Slide 22: €236 mn organic NPE outflows in 3Q2020
Group Financial Results for the nine months ended 30September 2020 €236 mn organic NPE outflows in 3Q2020, leading to €230 mn organic NPE reduction Net organic -227 -205 -142 -137 -230 outflows (€ mn) Inflows (€ mn) 50 33 32 New inflows 17 16 Redefaults 8 • Organic NPE outflows of €236 mn, recovered
Slide 23: Clear strategy for residual NPEs
Group Financial Results for the nine months ended 30 September 2020 Clear strategy for residual NPEs Re-performing NPEs1: €0.27 bn2 • Close monitoring of redefaults & quality of restructurings Group NPEs (€ bn) • ~€240 mn re-performing NPEs1 applied to moratorium, extending exit date (by 9 months)3
Slide 24: Gross loans and coverage by IFRS 9 staging
Group Financial Results for the nine months ended 30 September 2020 Gross loans and coverage by IFRS 9 staging Gross loans by IFRS 9 stage (€ mn) Allowance for expected loan credit losses (€ mn) Coverage ratio 12,822 12,491 12,309 11,427 Stage 1 7,209 7,025 7,042 Sep 2020 7,041 62% 2,096 Dec Jun Sep
Slide 25: Cost of risk increased to 97 bps for 3Q2020
Group Financial Results for the nine months ended 30 September 2020 Cost of risk1 increased to 97 bps for 3Q2020 Mainly impact of 1.25% Base Scenario GDP Unemployment rate 1.12% deterioration of macro- 1.00% economic outlook in 1Q2020 2Q2020 3Q2020 2Q2020 3Q2020 0.45% 2020 -6.3% -6.0% 9.2% 8.2% 2021
Slide 26: REMU sales gradually increasing post lockdown
Group Financial Results for the nine months ended 30 September 2020 REMU sales gradually increasing post lockdown Evolution of REMU stock1 €56 mn sales in 9M2020 Group BV (€ mn) Sales contract prices2 – Organic (€ mn) 1,530 1,490 1,456 1,467 115% 105% 122% 113% 98 92 Greece & Romania 88% 85% 90% 89%
Slide 27: Medium-term Strategic Targets
Group Financial Results for the nine months ended 30 September 2020 Medium-term Strategic Targets 27
Slide 28: Key remarks
Group Financial Results for the nine months ended 30 September 2020 Key remarks Our Operating Open, small and flexible economy which has demonstrated historically that it can quickly A Environment recover from economic crises Leading Financial Hub in Cyprus with strong brand and customer base (~75%
Slide 29: Setting the path for sustainable profitability
Group Financial Results for the nine months ended 30 September 2020 Setting the path for sustainable profitability Where we want to be… Business turnaround for sustainable growth Where we are now… Normalisation of balance Medium-term sheet 2021-2022 Where we were… 2020 Shrinkage to core strength Pri
Slide 30: Open, small and flexible economy which can quickly recover from crises
Group Financial Results for the nine months ended 30 September 2020 Open, small and flexible economy which has demonstrated historically that it can quickly recover from economic crises Annual Real GDP yoy % change1 Gross Value Added by sector of economic activity (2Q2020) 6.4% 3% Public, education
Slide 31: The leading full service bank in Cyprus
Group Financial Results for the nine months ended 30 September 2020 The leading full service bank in Cyprus Positioning against market players Leading life and non-life insurance business in Cyprus Gross loans1 Loan 12.3 Market Share1 42% 24% 22% € bn 20% 6.8 21% Market share 2 (life regular 3.4 & A
Slide 32: What we have achieved: Substantial improvement in key balance sheet metrics
Group Financial Results for the nine months ended 30 September 2020 What we have achieved: Substantial improvement in key balance sheet metrics … > €5.0 bn balance sheet deleveraging >€12.5 bn NPE reduction Funding stack normalisation € bn 63% 30% 21% NPE ratio 26.8 21.1 21.5 € bn 15.0 141% Total as
Slide 33: …with consequences for Profit and Loss metrics
Group Financial Results for the nine months ended 30 September 2020 …with consequences for Profit and Loss metrics Net loans Total Income € bn 14.7 € mn 717 651 • Smaller yet safer loan book resulting in lower but Legacy 5.9 10.7 10.0 -32% -41% higher quality income 1.8 1.1 425 Performing 8.8 8.9 8.
Slide 34: Our starting point: Leading financial hub in Cyprus
Group Financial Results for the nine months ended 30 September 2020 Our starting point: Leading financial hub in Cyprus Diversified financial Leading digital Track record on Market Leader Strong Brand group bank delivery of targets • ~655k private • Leading financial • Profitable • 285K active users
Slide 35: Key strategic pillars to deliver shareholder value
Group Financial Results for the nine months ended 30 September 2020 Key strategic pillars to deliver shareholder value De-risking 1 Complete balance sheet de-risking Revenue Growth in more capital efficient way Enhance revenue generation via growth in performing 2 book and less capital intensive ban
Slide 36: De-risking: Clear path to reduce NPE ratio to single digit by 2022
Group Financial Results for the nine months ended 30 September 2020 1 De-risking: Clear path to reduce NPE ratio to single digit by 2022 NPE ratio 63% 21% <10% ~5% • Gross NPE reduction in 2021, through both organic and inorganic actions, expected to € bn 15.0 more than offset NPE inflows (3.8) • Co
Slide 37: Revenue Growth: NII drivers and challenges
Group Financial Results for the nine months ended 30 September 2020 2 Revenue Growth: NII drivers and challenges NII challenges Performing book1 to grow by ~10% Reduction of Legacy book Net loans ‒ Higher-yielding, higher-risk legacy loans are reducing € bn ‒ Legacy book interest fully provided 12
Slide 38: Revenue Growth: Enhance fee and commission income
Group Financial Results for the nine months ended 30 September 2020 2 Revenue Growth: Enhance fee and commission income Initiatives • Extend liquidity fees to a wider group of customers 9M2020 Medium term • Boost fee & commission income through a new price annualised list Fee and commission ~70 bps
Slide 39: Revenue Growth: Profitable Insurance business with further opportunities to grow
Group Financial Results for the nine months ended 30 September 2020 2 Revenue Growth: Profitable Insurance business with further opportunities to grow Market leader1 in Life insurance 34% ~26% Key operational shifts and growth targets 24% 22% 20% Market share Widen target market by offering more b
Slide 40: Revenue Growth: Profitable Insurance business with further opportunities to grow
Group Financial Results for the nine months ended 30 September 2020 2 Revenue Growth: Profitable Insurance business with further opportunities to grow Opportunities for further market penetration Market share1 : 55% (GWP2) Key operational shifts and growth targets 14% ~18% 13% 9% 9% Focus on high
Slide 41: Revenue Growth: Leverage leading Digital Capabilities
Group Financial Results for the nine months ended 30 September 2020 2 Revenue Growth: Leverage leading Digital Capabilities to serve customers and the economy Vision Digital Transactions ratio1 Dec 2019 Oct 2020 Leverage Be the driver of Serve customer digital economy, 77.4% 83.5% technology to need
Slide 42: Operating efficiency: Revamping operating model to further improve efficiency
Group Financial Results for the nine months ended 30 September 2020 3 Operating efficiency: Revamping operating model to further improve efficiency Initiatives • Exit solutions to release FTEs Reduction of total operating expenses1 by ~10% C/I ratio1 expected to rise to mid 60s% • Further branch foo
Slide 43: Organisational resilience & ESG agenda
Group Financial Results for the nine months ended 30 September 2020 4 Organisational resilience & ESG agenda A B C Build a forward looking organisation with a clear strategy supported by Enhanced structure effective corporate and corporate Focus on our people Priority on the governance aligned with
Slide 44: Organizational resilience & ESG agenda: ESG Performance
Group Financial Results for the nine months ended 30 September 2020 4 Organizational resilience & ESG agenda: ESG Performance Environmental Social Governance 1.27 mn kWh 1,717 30% of energy savings cancer patients treated at the Bank of the board of directors are female of Cyprus Oncology Centre €0.
Slide 45: Capital Management with CET1>13%
Group Financial Results for the nine months ended 30 September 2020 Capital Management with CET1>13% € bn 17.2 • Aim for more efficient capital usage, including growing non-capital intensive fee generating business 12.9 Legacy RWAs 7.4 11.9 110% 3.4 103% 3.1 105% • Reduce high intensity RWA in the l
Slide 46: Medium-term strategic targets
Group Financial Results for the nine months ended 30 September 2020 Medium-term strategic targets 2022 Medium Term Profitability Return on Tangible Equity (ROTE)1 ~7% Total Operating Expenses2 <€350 mn NPE Ratio <10% ~5% Asset Quality Cost of risk ~70-80 bps Capital Supported by CET1 ratio of at lea
Slide 47: Summary
Group Financial Results for the nine months ended 30 September 2020 Summary • Strong customer base with relationship with 75% population • Renewed customer trust • Market leader both in terms of loans and deposits; 42% market share in loans and 35% in deposits • Driving forward our digital knowledge
Slide 48: Key Information and Contact Details
Group Financial Results for the nine months ended 30 September 2020 Key Information and Contact Details Contacts Credit Ratings Investor Relations Standard & Poor’s Global Ratings: Tel: +35722122239, Email: investors@bankofcyprus.com Long-term issuer credit rating: Affirmed at “B+” on 16 July 2020 (
Slide 49: Appendix
Group Financial Results for the nine months ended 30 September 2020 Appendix 49
Slide 50: Appendix: Macroeconomic overview
Group Financial Results for the nine months ended 30 September 2020 APPENDIX Macroeconomic overview 50
Slide 51: Cypriot economy more resilient than anticipated earlier in the year
Group Financial Results for the nine months ended 30 September 2020 Cypriot economy more resilient than anticipated earlier in the year Economic sentiment reflects COVID-19 uncertainty Tightening of spreads as market confidence improves 120 0.5 100 0.4 Spreads (%) 80 0.3 0.2 60 0.1 40 0 Jun-14 Jun-1
Slide 52: Covid-19 Recent Developments
Group Financial Results for the nine months ended 30 September 2020 Covid-19 Recent Developments 52
Slide 53: Timely and strong response by the European and the Cypriot authorities
Group Financial Results for the nine months ended 30 September 2020 Timely and strong response by the European and the Cypriot authorities Comprehensive and far reaching measures to support performing businesses and the wider economy Government measures include: European Authorities measures-Implica
Slide 54: Well diversified loan portfolio; close monitoring
Group Financial Results for the nine months ended 30 September 2020 Well diversified loan portfolio; close monitoring and set up of strategies to prevent further asset quality deterioration Gross loans (excluding legacy)1 by business sector of €9.12 bn Breakdown by COVID-19 impact assessment on busi
Slide 55: Private individuals loan portfolio, highly collateralised
Group Financial Results for the nine months ended 30 September 2020 Private individuals loan portfolio, highly collateralised Private Individuals: €4.04 bn Other • Housing performing loans: €3.34 bn 17% • Low LTV1 housing portfolio • 65% of portfolio with LTV1<60% • Only 15% of portfolio with LTV1>8
Slide 56: Business portfolio well diversified, with high quality collateral
Group Financial Results for the nine months ended 30 September 2020 Business portfolio well diversified, with high quality collateral Business gross loans Breakdown, by Payment deferrals (excluding Legacy)1 Covid-19 impact • 13% with ≥1 payment • High quality origination via prudent underwriting sta
Slide 57: Portfolio exposure to businesses most impacted by COVID-19
Group Financial Results for the nine months ended 30 September 2020 Portfolio exposure to businesses most impacted by COVID-19 Tourism: €1.07 bn Trade: €0.95 bn 30 Jun 2020 30 Sep 2020 % of 30 Jun 2020 30 Sep 2020 % of Hotels & Catering Trade € bn € bn portfolio € bn € bn portfolio Food services 0.0
Slide 58: Appendix: Additional asset quality slides
Group Financial Results for the nine months ended 30 September 2020 APPENDIX Additional asset quality slides 58
Slide 59: €0.9 bn NPE Trade Delivers Accelerated Risk Reduction
Group Financial Results for the nine months ended 30 September 2020 €0.9 bn NPE Trade Delivers Accelerated Risk Reduction €898 mn Helix 2 portfolio (€ mn) 898 30 June 2020 Performing 12 50 Assets sold € mn Receipts € mn Re-performing NPEs1 Contractual Loans2 1.478 Consideration 422 Gross Loans 898 o
Slide 60: Foreclosures resumed on 1 September 2020
Group Financial Results for the nine months ended 30 September 2020 Foreclosures resumed on 1 September 2020 Cumulative FY2019 9M2020 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 2016 – 20181 Foreclosures 1,437 1,829 8202 436 536 5932 - 227 commenced2 Auctions held 470 807 1642 189 373 1642 - - 1,554 properti
Slide 61: ESTIA- Government scheme for the resolution of NPEs
Group Financial Results for the nine months ended 30 September 2020 ESTIA- Government scheme for the resolution of NPEs backed by primary residence • Clear definition of socially protected borrowers • Resolution part of ESTIA- eligible portfolio • Identification of non-viable (vulnerable) customers
Slide 62: Core NPE risk reduced to €2.10 bn pro forma for Helix 2
Group Financial Results for the nine months ended 30 September 2020 Core NPE risk reduced to €2.10 bn pro forma for Helix 22; 64% cash covered Core NPEs reduced to €2.10 bn pro forma for Helix 22 13.97 € bn 1 Re-performing NPEs 2.61 Core NPEs 11.36 3.88 3.47 0.43 3.24 0.35 0.31 2.37 0.27 3.45 3.12 2
Slide 63: Continuous progress across all segments
Group Financial Results for the nine months ended 30 September 2020 Continuous progress across all segments Focus shifts to Retail and SME after intense Corporate attention Corporate Sep 2020 Pro forma1 Dec 19 722 € mn Inflows 7 2,374 Exits (144) NPE ratio 10% Sep 20 585 Corporate 387 €472 mn Helix
Slide 64: Gross loans and NPEs by Customer Type
Group Financial Results for the nine months ended 30 September 2020 Gross loans and NPEs by Customer Type Gross loans by customer type (€ mn) 15,900 1,795 12,822 12,709 12,491 12,309 4,068 1,875 1,870 11,427 1,710 1,696 1,498 2,977 4,077 4,068 4,060 4,044 3,753 1,922 1,914 1,863 1,798 1,518 7,060 2,
Slide 65: NPE Coverage and Total coverage by segment
Group Financial Results for the nine months ended 30 September 2020 NPE Coverage and Total coverage by segment Coverage and collateral maintained post Helix 22 Tangible Collateral 1 Allowance for expected loan credit losses Corporate €360 mn Global Corporate: €112 mn SME €366 mn Retail-Housing €889
Slide 66: Asset quality- NPE analysis
Group Financial Results for the nine months ended 30 September 2020 Asset quality- NPE analysis (€ mn) Sep-20 Jun-20 Mar-20 Dec-19 Dec-18 A. Gross Loans after Residual Fair value adjustment on 12,066 12,243 12,457 12,551 15,438 initial recognition Residual Fair value adjustment on initial recognitio
Slide 67: Analysis of gross loans and NPE ratio by Economic activity
Group Financial Results for the nine months ended 30 September 2020 Analysis of gross loans and NPE ratio by Economic activity Gross loans by economic activity (€ bn) 31.12.18 31.12.19 30.06.20 30.09.2020 % of total 10% 4% 9% 7% 10% 47% 7% 6% 6.47 6.02 5.89 5.85 1.95 1.85 1.61 1.36 1.29 1.27 1.20 1.
Slide 68: Balance sheet de-risking results in a smaller but safer loan book
Group Financial Results for the nine months ended 30 September 2020 Balance sheet de-risking results in a smaller but safer loan book Net Loans: Non-legacy2 vs Legacy Interest Income on Loans: Non-legacy2 vs Legacy € bn € mn 15.62 14.55 36% 5.64 4.40 12.04 10.73 10.45 10.38 105 3.39 10.04 98 96 1.79
Slide 69: Risk adjusted yield will rise as Legacy book reduces
Group Financial Results for the nine months ended 30 September 2020 Risk adjusted yield will rise as Legacy book reduces Non- Legacy Group Legacy 9M2020 9M2020 9M2020 • Non-Legacy Book is expected to grow and to Interest Income on loans (€ mn) (pre increasingly drive Group results 220 59 279 FTP) Lo
Slide 70: Rescheduled Loans
Group Financial Results for the nine months ended 30 September 2020 Rescheduled Loans Rescheduled loans by customer type (€ bn) 4.89 1.17 0.47 2.73 2.58 1.01 2.35 2.23 0.97 0.94 0.88 0.83 0.44 0.42 2.24 0.53 0.38 0.37 0.52 0.50 0.46 0.34 0.27 0.16 0.16 0.45 0.43 0.43 0.41 Dec 18 Dec 19 Mar 20 Jun 20
Slide 71: REMU: €1.31 bn sales of 1,904 properties
Group Financial Results for the nine months ended 30 September 2020 REMU: €1.31 bn sales of 1,904 properties across all property classes since set-up in Jan 2016 Sales since Real Estate Management Unit set-up Breakdown of cumulative sales1 Sales contract prices1 (€ mn) by on-boarding year (€ mn) # 9
Slide 72: REMU – the engine for dealing with foreclosed assets
Group Financial Results for the nine months ended 30 September 2020 REMU – the engine for dealing with foreclosed assets On-board assets in REMU at conservative ~25%-30% discount to OMV Evolution of properties managed by REMU BV € mn Investment Properties BV € mn Legacy 2016 2017 2018 2019 9M2020 (4
Slide 73: Appendix: Additional financial information
Group Financial Results for the nine months ended 30 September 2020 APPENDIX Additional financial information 73
Slide 74: Consolidated Balance Sheet
Group Financial Results for the nine months ended 30 September 2020 Consolidated Balance Sheet % % Assets (€ mn) 30.09.2020 31.12.2019 change Liability and Equity (€ mn) 30.09.2020 31.12.2019 change Cash and balances with Central Banks 5,507 5,060 9% Deposits by banks 405 533 -24% Loans and advances
Slide 75: Cypriot business
Group Financial Results for the nine months ended 30 September 2020 Cypriot business Market shares1 Strong market shares in resident and non-resident deposits Loans Deposits Residents Non-residents 45.4% 41.1% 41.7% 41.5% 37.5% 37.1% 35.8% 37.3% 38.3% 35.8% 35.7% 34.9% 36.0% 35.0% 35.0% 32.8% 35.1%
Slide 76: Income Statement bridge for 9M2020
Group Financial Results for the nine months ended 30 September 2020 Income Statement bridge1 for 9M2020 Underlying € mn NPE sales Other Statutory Basis basis Net interest income 250 - - 250 Net fee and commission income 106 - - 106 Net foreign exchange gains and net gains on financial instrument tra
Slide 77: Analysis of Interest Income and Interest Expense
Group Financial Results for the nine months ended 30 September 2020 Analysis of Interest Income and Interest Expense Analysis of Interest Income (€ mn) 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 Loans and advances to customers 105 98 96 93 90 Loans and advances to banks and central banks 1 1 0 0 4 Investmen
Slide 78: Income Statement by business line for 9M2020
Group Financial Results for the nine months ended 30 September 2020 Income Statement by business line for 9M2020 Consumer SME Corporate Global International Wealth & € mn RRD REMU Insurance Treasury Other Overseas Total Banking Banking Banking corporate Banking Markets Net interest income/(expense)
Slide 79: Risk Weighted Assets – Regulatory Capital
Group Financial Results for the nine months ended 30 September 2020 Risk Weighted Assets – Regulatory Capital Risk weighted assets by Geography (€ mn) Reconciliation of Group Equity to CET1 30.09.20 € mn 30.09.20 31.12.18 31.12.19 30.06.20 30.09.20 Helix 2 pro forma2 Group Equity per financial state
Slide 80: SREP requirement for 2020 at 9.7%
Group Financial Results for the nine months ended 30 September 2020 SREP requirement for 2020 at 9.7%, post ECB’s capital relaxations for COVID-19 SREP requirements for 2020: CET1 ratio at 9.7% SREP requirements for 2020 : Total Capital ratio at 14.5% 14.0% 14.5% 1 11.0% O-SII 0.5% 1.0% 10.5% 1.0% 2
Slide 81: Buffer to MDA Restrictions Level & Distributable Items
Group Financial Results for the nine months ended 30 September 2020 Buffer to MDA Restrictions Level & Distributable Items1 Maximum Distributable Amount for BOCH CET1 Ratios • The Bank and BOCH having obtained approval by their shareholders, 14.6% the ECB and the Court of Cyprus and Irish High Court
Slide 82: Analysis of Deposits
Group Financial Results for the nine months ended 30 September 2020 Analysis of Deposits Deposits by Currency (€ bn) Sep 20 16.69 16.25 16.30 16.38 1.29 0.29 0.10 0.29 0.10 0.27 0.10 0.28 0.12 1.28 1.31 1.24 8% 2% Other Currencies 15.01 14.58 14.62 14.74 GBP USD 90% EUR Dec 19 Mar 20 Jun 20 Sep 20 D
Slide 83: Reduction in Overseas Non-Core Exposures
Group Financial Results for the nine months ended 30 September 2020 Reduction in Overseas Non-Core Exposures Overseas non-core exposures (€ mn) 312 31 240 79 11 23 9 183 • The Group continues its efforts for further 35 174 19 deleveraging and disposal of non-essential assets and 7 16 160 12 operatio
Slide 84: Appendix: Glossary & Definitions
Group Financial Results for the nine months ended 30 September 2020 APPENDIX Glossary & Definitions 84
Slide 85: Glossary & Definitions
Group Financial Results for the nine months ended 30 September 2020 Glossary & Definitions Allowance for expected loan credit Comprises (i) allowance for expected credit losses (ECL) on loans and advances to customers (including allowance for expected credit losses on loans and advances to customers
Slide 86: Glossary & Definitions
Group Financial Results for the nine months ended 30 September 2020 Glossary & Definitions This is the ratio of digitally engaged individual customers to the total number of individual customers. Digitally engaged customers are the individuals who use the digital channels of the Bank (mobile Digital
Slide 87: Glossary & Definitions
Group Financial Results for the nine months ended 30 September 2020 Glossary & Definitions IBU Servicing exclusively international activity companies registered in Cyprus and abroad and not residents Legacy exposures Legacy exposures are exposures relating to (i) Restructuring and Recoveries Divisio
Slide 88: Glossary & Definitions
Group Financial Results for the nine months ended 30 September 2020 Glossary & Definitions Non-interest income comprises Net fee and commission income, Net foreign exchange gains and net gains on financial instrument transactions and disposal/dissolution of subsidiaries and associates Non-interest i
Slide 89: Glossary & Definitions
Group Financial Results for the nine months ended 30 September 2020 Glossary & Definitions Loan credit losses for impairment of Credit losses for impairment of customer loans and gains/(losses) on derecognition of loans and changes in expected cash flows on acquired loans customer loans Profit/(loss
Slide 90: Glossary & Definitions
Group Financial Results for the nine months ended 30 September 2020 Glossary & Definitions Total income Total income comprises net interest income and non-interest income (as defined). Total loan credit losses, impairments Total loan credit losses, impairments and provisions comprises loan credit lo
Bank of Cyprus Holdings — 9M2020 Earnings Presentation on 6ix