Bank Of Cyprus Holdings Plc · CSECY:BOCH
Bank Of Cyprus — FY2022 Earnings Presentation
71 slides from Bank Of Cyprus's earnings presentation, Mar 31, 2023
Slide 1: Group Financial Results for the year ended 31 December 2022
Bank of Cyprus Group Group Financial Results For the year ended 31 December 2022
Slide 2: Disclaimer
DISCLAIMER The financial information included in this presentation is not audited by the Group’s external auditors. Forward Looking Statements This document contains certain forward-looking statements which can usually be identified by terms used such as The Group statutory financial statements for
Slide 3: Table of contents
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix 3
Slide 4: Executive Summary – Updated Financial Targets
Executive Summary – Updated Financial Targets Executive Summary – Updated Financial Targets Appendix 4
Slide 5: Strong performance in FY2022
Strong performance in FY2022 11.3% Achieved double-digit recurring ROTE1 in 2022, momentum building recurring Profitability ROTE1 throughout the year Revenue recovery, up 20% yoy, driven by NII expansion +25% yoy Revenues Diversified business model with non-net interest income contributing to NII 47
Slide 6: 2022 Targets exceeded
2022 Targets exceeded 2022 guidance FY2022 (November 2022) Net interest income >€350 mn €370 mn ✓ Cost to income ratio1 Low-50s 49% ✓ Recurring ROTE2 c.10% 11.3% ✓ NPE ratio <5% 4.0% ✓ Cost of risk Mid-40 bps 44 bps ✓ CET1 ratio3 Supported by a CET1 ratio of 13.5%-14.5% 15.4% ✓ 1) Excluding special
Slide 7: Strong performance to continue in 2023, upgrading ROTE to >13%
Strong performance to continue in 2023, upgrading ROTE to >13% from >10% 2022 2023 2023 Previous targets Updated targets (November 2022) NII €370 mn €450-€470 mn +40-50% yoy (€520 - €550 mn) Cost to income 49% c.50% Mid-40s ratio1 >13% 4.3% ROTE2 >10% > 13% ROTE2 11.3% (recurring) in 20244 NPE ratio
Slide 8: NII to grow by 40-50% in 2023
NII to grow by 40-50% in 2023 Average ECB -0.50% +0.1% +2.8%1 Assumptions on 2023 Projections depo rate • Positive impact reflecting benefit from increase in +40-50% interest rates (average ECB deposit rate: 2.8%1 for 2023) €mn +c.€20 mn • Gradual increase in time deposit pass through to 520-550 c.5
Slide 9: Cost to income ratio at 49% for FY2022; to reduce to mid-40s in 2023
Cost to income ratio1 at 49% for FY2022; to reduce to mid-40s in 2023 Containment of costs despite inflationary pressure Cost and efficiency drivers 347 350-360 340 343 • Successful completion of efficiency actions in 2022 to address inflationary pressures Total operating expenses (€mn) 1 • Ongoing
Slide 10: Conservative 2023 COR of 50-80 bps, no signs of increasing NPE inflows
Conservative 2023 COR of 50-80 bps, no signs of increasing NPE inflows Limited NPE inflows (€mn) 19 20 • Limited NPE inflows in 2022 supported by: 13 • macro resilience 7 • high quality loan origination • prudent underwriting standards 1Q2022 2Q2022 3Q2022 4Q2022 • meticulous assessment of customer’
Slide 11: Resilient Cypriot economy delivering strong growth notwithstanding headwinds
Resilient Cypriot economy delivering strong growth notwithstanding headwinds GDP grew by 4.5% in 4Q2022 (yearly average at 5.6%) Strong tourism performance in 2022 despite challenges 20.00% Quarterly Real GDP Tourism arrivals (yoy % change) 12.9% 3,977 10.00% 5.3% 4.5% 899 3,201 -20% 2.2% 14.3% GDP
Slide 12: Why Bank of Cyprus
Why Bank of Cyprus Strong Macro Market Leader • BOCH: 41% loan market share • Small, open economy outgrowing Eurozone • Leader in insurance, card processing and payment solutions • Healthy recovery in tourism post COVID-19 business • Liquid and consolidated banking sector; total market share of • Re
Slide 13: FY2022 Financial Performance
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix 13
Slide 14: FY2022 – Highlights
FY2022 – Highlights • Economic growth of 4.5%1 in 4Q2022; expected growth of c.3.0%1 for 2023, well above the eurozone average Cypriot economy • Record new lending of €2.1 bn up 17% yoy outperforms Eurozone • Net performing loan book of €9.6 bn, up 3% yoy • NII of €370 mn up 25% yoy; of which €136 m
Slide 15: Income Statement
Income Statement € mn FY2022 FY2021 4Q2022 3Q2022 qoq% yoy% QoQ Performance (4Q2022 vs 3Q2022) Net Interest Income 370 296 136 89 53% 25% • NII growth driven by immediate liquid assets repricing (including Non interest income 329 285 92 83 11% 16% fixed income portfolio) and Euribor repricing Total
Slide 16: NII up 25% yoy; expected to grow by 40-50% in 2023
NII up 25% yoy; expected to grow by 40-50% in 2023 NII of400€370 mn for FY2022 of which €136 mn in 4Q2022 Effective yield on assets & cost of funding 300 c.250 300 236 1 NIM bps200 145 165 Performing Liquids Cost of funding 2 153 600 200 200 132 133 100 520-550 390 100 bps 5000 +25% 38000% 301 319 2
Slide 17: Liquid balance sheet positively geared to higher interest rates
Liquid balance sheet positively geared to higher interest rates As at 31 December 2022 1 Cash and balances with Central Banks of €9.6 bn, of which €2.0 bn TLTRO III (€ bn) 25.44 25.44 Other assets 1.25 Other • Immediate benefit from ECB depo rate increases 1.89 REMU properties 1.12 2.10 Equity 0.31
Slide 18: Record new lending of €2.1 bn in FY2022 up 17% yoy
Record new lending of €2.1 bn in FY2022 up 17% yoy New lending of €444 mn in 4Q2022 Performing4 book up 3% yoy to €9.6 bn € mn +17% Net loans (€ bn) 2,092 +3% 1,792 184 622 9.7 9.6 9.4 150 104 537 0.6 0.7 0.7 471 48 489 444 991 38 31 1 798 258 3.7 3.8 3.7 238 215 261 234 189 205 1.0 1.0 1.0 45 64 55
Slide 19: Deposits at €19.0 bn up 8% yoy; loan to deposit ratio at 52%
Deposits at €19.0 bn up 8% yoy; loan to deposit ratio at 52% Deposits at €19.0 bn; market share at 37.2% Cost of deposits remains low +8% 18.8 19.0 19.0 Time & Notice Savings, Current & demand € bn 17.5 1 4.0 IBS 5.7 30% 5.6 29% 5.9 34% Cost of deposits 2.7 Corporate (bps) 2 2 3 7 13.1 13.4 11.3 Ret
Slide 20: Fixed income portfolio up 30% yoy; expansion to continue in 2023
Fixed income portfolio up 30% yoy; expansion to continue in 20233 Fixed income securities per category - NBV Fixed income securities per issuer type - NBV % assets 8% 10% 10% 30% (€ mn) 2,500 Average yield of (€ mn) 2,259 FY2022 new 2,500 1 454 investments: 3.87% 110 A2 2,259 1 1,925 482 105 FVTPL 1
Slide 21: Non interest income at €92 mn in 4Q2022, up 11% qoq
Non interest income at €92 mn in 4Q2022, up 11% qoq Total non – NII (€ mn) QoQ Performance (4Q2022 vs 3Q2022) • Net fee and commission income up 4% due to higher non-transactional +16% +11% fees 329 92 13 83 2 • Net insurance income up 53% reflecting exceptionally strong new 285 81 13 53 5 4 17 busi
Slide 22: Profitable Life Insurance business - valuable and sustainable contribution to the Group
Profitable Life Insurance business - valuable and sustainable contribution to the Group € mn FY2022 FY2021 yoy% GWP1 151.3 137.1 10% 14% 12% Net reinsurance cost (18.2) (18.2) 0% 27% contribution contribution Market share5 Net impact of interest rate movements 5.9 (2.6) - to non-NII to the Group’s P
Slide 23: Profitable Non–Life Insurance business – valuable and sustainable contribution to the Group
Profitable Non–Life Insurance business – valuable and sustainable contribution to the Group € mn FY2022 FY2021 yoy% Insurance income 69.4 60.7 14% 8% 7% 14% (of which GWP1) 59.0 53.3 11% contribution contribution Market share2 to non-NII to the Group’s Costs and claims (44.3) (35.8) 24% PBT4 Net ins
Slide 24: Leading card processing and payment solutions business in Cyprus
Leading card processing and payment solutions business in Cyprus € mn FY2022 FY2021 yoy% Net fee and commission income 26.7 21.9 22% 10% 7% 85% Other income 4.5 2.3 94% contribution Market contribution FX and net gains on revaluation 2.6 4.0 -33% to non-NII to the Group’s Share1 PBT2 of investment T
Slide 25: Cost to income ratio at 49% in 2022; to reduce to mid-40s in 2023
Cost to income ratio1 at 49% in 2022; to reduce to mid-40s in 2023 Total operating expenses1 remain under control; down 1% yoy (€ mn) 89 400 350-360 1.090 87 86 87 81 1.0 • Staff costs down 6% qoq and 6% yoy following completion of 340 347 343 80 VEP in July 2022 350 0.870 37 37 0.8 300 36 45 145 14
Slide 26: Efficiency actions achieved in FY2022
Efficiency actions achieved in FY2022 Substantial streamlining of workforce and branches # of branches 66% 75% 79% 80% 80% 82% -30% 4,500 1.0 1.0 86 84 90 4,000 -16% 80 75 80 3,500 0.8 0.8 3,000 70 0.6 0.6 60 60 2,500 60 2,000 4,155 50 3,573 3,438 3,422 0.4 0.4 1,500 2,955 2,889 40 1,000 0.2 0.2 500
Slide 27: Leverage leading Digital Capabilities to serve customers and the economy
Leverage leading Digital Capabilities to serve customers and the economy Digital transactions ratio at 94% Digitally engaged customers ratio at 82% Leader in shaping the digital transformation of local economy 79% 82% 89% 94% 69% 79% 1 1 Dec 19 Dec 21 Dec 22 Dec 19 Dec 21 Dec 22 Vision • Introductio
Slide 28: Capital, Liquidity & Asset Quality
Capital, Liquidity & Asset Quality 28
Slide 29: Robust capital position with CET1 at 15.4% and Total Capital ratio at 20.6%
Robust capital position with CET1 at 15.4%1,5 and Total Capital ratio at 20.6%1,5 min OCR requirement for 20224 20.6% 3.0% 15.1% 15.4% 2.2% 15.2% 14.2% (0.4%) 0.1% (0.2%) 0.5% 15.0% 1.2% 10.1% CET1 ratio CET1 Operating Provisions RWAs Other 3 Helix 3 CET1 AT1 T2 Total Capital CET1 ratio 31 Dec 20211
Slide 30: MREL position
MREL position MREL (% of RWAs) 24.35% as at 31 Dec 2025 • MREL ratio as % of RWAs1 at 21.42%3 as at 31 December 2022 and at 3 20.52%3 as at 1 January 2023 21.42% Senior preferred liabilities2 4.56% • MREL ratio as % of Leverage Ratio Exposure (LRE) of 10.13% as at 31 December 2022 • Based on latest
Slide 31: NPE ratio at 4.0% following completion of Helix 3; NPE inflows remain limited
NPE ratio at 4.0% following completion of Helix 3; NPE inflows remain limited NPE reduced to €0.4 bn in 4Q2022 Residual NPEs comprises mainly Retail NPE inflows remain under control (€ mn) • Helix 3 (€0.55 bn) (€ mn) (€mn) • Organic reduction (€0.36 bn) 411 1,343 1,168 111 1,018 -69% 19 20 203 14 13
Slide 32: Gross loans and coverage by IFRS 9 staging
Gross loans and coverage by IFRS 9 staging Gross loans by IFRS 9 stage (€ mn) Allowance for expected loan Coverage ratio credit losses (€ mn) 10,856 11,047 10,913 10,217 792 7,799 84 Dec 21 Jun 22 Sep 22 Dec 22 Stage 1 7,529 7,905 677 7,970 78% 54 610 83 51 89 48 Stage 1 1.1% 1.1% 1.1% 1.1% 282 Stag
Slide 33: Stage 2 exposures well collateralised with low migration history
Stage 2 exposures well collateralised with low migration history € mn 1,836 Limited historic migration of Stage 2 to Stage 3 3.0% Trade 157 Of which: 7.0% Real estate 188 • €1,021 mn (56%) Performing Forborne • Strong performance of Stage 2 exposures; 99% Other 200 • €374 mn (20%) Overlays 2.3% • €2
Slide 34: COR of 44 bps for FY2022; conservative COR assumptions for 2023
COR of 44 bps for FY2022; conservative COR assumptions of 50-80 bps for 2023 1.18% Bank’s IFRS 9 Macroeconomic assumptions 0.43% Base line GDP rate Unemployment rate 0.57% 0.44% 2022 5.8% 6.5% 0.75% 0.61% 2023 2.8% 6.2% (0.04%) FY2020 FY2021 FY2022 bps 44 41 45 42 • Cost of risk of 44 bps for FY2022
Slide 35: REMU: Asset disposals are recovering
REMU: Asset disposals are recovering Organic sales of €184 mn in FY2022 Organic sales consistently close to Open Market Value; comfortably Organic sales € mn ( contract prices1) above Book Value # 535 # 492 # 703 #674 120% 345 112% 111% 111% 110% 96% 94% 184 149 89% 85% 87% 91 FY2018 FY2019 FY2020 F
Slide 36: Steady delivery against our ESG ambition
Steady delivery against our ESG ambition Carbon Neutral by 2030 Net Zero by 2050 • First Bank in Cyprus to join the Partnership for 2022: Carbon Accounting Financials (PCAF) • 1.838K KWh energy savings • Estimation of financed emissions of loan portfolio • c.€270k investment in energy-saving activit
Slide 37: Steady delivery against our ESG ambition
Steady delivery against our ESG ambition Maintaining leading role, fully aligning with Women representation at Board and Senior selected SDGs Management levels BOC Oncology Centre As at 31 December 2022 • Cumulative investment of c.€70 mn from 1998 to • 27% of women representation in Group’s Decembe
Slide 38: Concluding remarks
Concluding remarks ✓ Strong performance in 2022 ✓ 2022 financial targets exceeded ✓ ROTE1 targets upgraded to >13% Intention to commence meaningful dividend distributions from 2023 onwards2 1) ROTE: calculated as Profit after tax and before non-recurring items divided by quarterly average shareholde
Slide 39: Key Information and Contact Details
Key Information and Contact Details Contacts Moody’s Investors S&P Global Fitch Ratings Services Ratings Investor Relations & ESG Long-term Deposit rating Tel: +35722122239, Email: investors@bankofcyprus.com Ba2 N/A BB- Annita Pavlou Manager Investor Relations & ESG Long-term Counterparty Tel: +357
Slide 40: Macroeconomic overview
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Macroeconomic overview 40
Slide 41: EU Recovery and Resilience Facility (RRF)
EU Recovery and Resilience Facility (RRF) To mitigate the socioeconomic impact of the pandemic & to strengthen the resilience and competitiveness of the Cypriot economy c.7% increase in GDP for 2022-2026 €1.2 bn €1.0 bn from EU mechanism additional funds mobilised in Cyprus c.3% increase in employme
Slide 42: Limited economic effects on BOCH from Russia-Ukraine war
Limited economic effects on BOCH from Russia-Ukraine war Direct Impact Indirect Impact • No banking operations in Ukraine/Russia since 2015; <€1 mn net legacy • The economic effects result from higher inflation and a slowdown in activity, exposure as at 31 Dec 2022 with tourism sector most impacted
Slide 43: Macro & Banking Overview
Macro & Banking Overview Loan market share at 41% in Dec 2022 Strong market shares in resident and non-resident deposits Loans Deposits Residents Non-residents 45.4% 41.1% 41.9% 41.9% 41.2% 41.1% 40.9% 38.3% 37.9% 37.7% 37.1% 38.8% 37.3% 37.5% 35.8% 35.4% 35.2% 36.0% 36.0% 35.1% 35.0% 35.8% 36.8% 37
Slide 44: Additional financial information
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Additional financial information 44
Slide 45: Income Statement
Income Statement FY2021 € mn FY2022 4Q2022 3Q2022 qoq% yoy% (restated)1 Net Interest Income 370 296 136 89 53% 25% Net fee and commission income 192 172 50 48 4% 12% Net foreign exchange gains and net gains/(losses) on financial instruments 36 25 12 13 -8% 45% Insurance income net of claims and comm
Slide 46: Consolidated Balance Sheet
Consolidated Balance Sheet % % Assets (€ mn) 31.12.2022 31.12.2021 change Liability and Equity (€ mn) 31.12.2022 31.12.2021 change Cash and balances with central banks 9,567 9,231 4% Deposits by banks 508 457 11% Loans and advances to banks 205 292 -30% Funding from central banks 1,977 2,970 -33% De
Slide 47: Risk Weighted Assets– Regulatory Capital
Risk Weighted Assets– Regulatory Capital Risk Weighted Assets by Geography (€ mn) Reconciliation of Group Equity to CET1 € mn 31.12.22 31.12.19 31.12.20 31.12.21 30.09.22 31.12.22 Total equity 2,101 Cyprus 12,678 11,477 10,595 10,472 10,059 Less: Intangibles (30) Overseas 212 159 99 66 55 Less: Deco
Slide 48: Overall capital requirements
Overall capital requirements Overall capital requirements for 2022 and 2023 CET1 ratio Total capital ratio 15.03% 15.10% 0.02% 0.02% 10.10% 10.25% CCyB 1.25% 1.50% 0.02% 0.02% CCyB O-SII 1.25% 1.50% 2.50% 2.50% O-SII CCB CCB 2.50% 2.50% Pillar 2R 3.26% 3.08% Pillar 2R 1.83% 1.73% Tier 2 2.00% 2.00%
Slide 49: Buffer to MDA Restrictions Level & Distributable Items
Buffer to MDA Restrictions Level & Distributable Items1 CET1 Ratios • No prohibition applies to the payment of coupons on any AT1 capital instruments issued by the Company and the Bank 535 bps 15.4% • Significant CET1 MDA buffer as at 31 Dec 2022: 535 bps (€541mn) • Distributable items of €952 mn fo
Slide 50: Income Statement bridge for FY2022
Income Statement bridge1 for FY2022 Underlying € mn NPE sales Other Statutory Basis basis Net interest income 370 - - 370 Net fee and commission income 192 - - 192 Net foreign exchange gains and net gains on financial instruments 36 - 5 41 Net gains on derecognition of financial assets measured at a
Slide 51: Analysis of Interest Income and Interest Expense
Analysis of Interest Income and Interest Expense Analysis of Interest Income (€ mn) 1Q2022 2Q2022 3Q2022 4Q2022 Loans and advances to customers 77 81 87 102 Loans and advances to banks and central banks 7 7 9 36 Investments and other financial assets at amortised costs 4 4 5 11 Investments FVOCI 3 2
Slide 52: Business plan forward curves
Business plan forward curves Immediate benefit Loan repricing sensitivity ECB Deposit rate1 6m Euribor rate2 4.0% 4.5% 3.5% 4.0% 3.15% 3.12% 3.08% 3.55% 3.50% 2.98% 3.33% 3.35% 2.92% 3.5% 3.19% 3.0% 2.80% 2.97% 2.66% 2.50% 3.0% 2.69% 2.76% 2.67% 2.5% 2.5% 2.00% 2.0% 2.0% 1.5% 1.5% Dec 23 Dec 24 Dec
Slide 53: Income Statement by business line for FY2022
Income Statement by business line for FY2022 Corporate International International Consumer SME Wealth & € mn and large corporate Banking RRD REMU Insurance Treasury Other Total Banking Banking Markets Banking Banking Services Net interest income/(expense) 137 35 114 23 45 5 31 (35) - 15 - 370 Net f
Slide 54: Income Statement for insurance businesses for FY2022
Income Statement for insurance businesses for FY2022 € mn FY2022 FY2021 yoy% € mn FY2022 FY2021 yoy% Gross written premiums (GWPs) 151.3 149.8 1% Gross written premiums (GWPs) 59.0 53.3 11% Reinsurance premiums (30.6) (29.1) 5% Reinsurance premiums (30.4) (23.3) 31% Commissions from reinsurers and o
Slide 55: Analysis of Deposits and liquidity
Analysis of Deposits and liquidity Deposits by Currency (€ bn) Dec 22 18.45 18.79 19.00 17.53 0.32 0.08 0.33 0.07 0.32 0.08 1.70 1.53 1.37 0.31 0.11 1.52 8% 2% Other Currencies 15.74 16.53 16.69 17.07 GBP USD 90% EUR Dec 21 Jun 22 Sep 22 Dec 22 Deposits by customer Sector (€ bn) 18.45 18.79 19.00 1%
Slide 56: Additional asset quality slides
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Additional asset quality slides 56
Slide 57: 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 €9.80 bn € bn Housing Other Private 3.78 0.66 4.44 Individuals Hotels & 1.16 Catering Real Estate 1.10 Trade 0.90 Private individuals Private individuals Business LTV2 housing other Pro
Slide 58: Gross loans and NPE coverage by Customer Type
Gross loans and NPE coverage by Customer Type Gross loans by customer type (€ mn) 10,856 10,913 10,217 1,240 1,215 947 3,741 3,788 Retail other 3,542 Retail Housing 1,198 1,161 1,119 SMEs 648 754 685 International corporate Corporate and Large Corporate 4,029 3,995 3,924 Dec 21 Sep 22 Dec 22 Corpora
Slide 59: €57 mn net organic NPE reduction in 4Q2022
€57 mn net organic NPE reduction in 4Q2022 Net organic -131 -98 -96 -74 -133 -57 outflows (€ mn) Inflows (€ mn) 19 20 New inflows 14 5 13 11 1 6 7 17 Redefaults 7 1 7 13 1 Unlikely to pay 2 7 5 1 5 2 1 1 2 • €70 mn organic NPE outflows in 4Q2022, 3Q2021 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 leading to
Slide 60: Asset quality - NPE analysis
Asset quality - NPE analysis (€ mn) Dec-22 Sep-22 Jun-22 Mar-22 Dec-21 Sep-21 Jun-21 Mar-21 Dec-20 A. Gross Loans after Residual Fair value 10,131 10,797 10,902 10,815 10,678 10,683 10,708 12,055 12,031 adjustment on initial recognition Residual Fair value adjustment on initial 86 116 145 149 178 18
Slide 61: Analysis of gross loans and NPE ratio by Economic activity
Analysis of gross loans and NPE ratio by Economic activity Gross loans by economic activity (€ bn) Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 % of total 9% 4% 12% 5% 11% 46% 6% 7% 5.10 5.08 5.06 5.06 4.70 1.30 1.23 1.21 1.20 1.19 1.18 1.18 1.18 1.14 1.12 1.04 1.03 1.02 1.02 0.93 0.80 0.79 0.78 0.71 0.69 0.6
Slide 62: Rescheduled Loans
Rescheduled Loans1 Rescheduled loans1 - Asset Quality Rescheduled loans1 by customer type (€ bn) 31 December 2022 € mn 1.68 1.58 1.51 Stage 1 - 0.43 0.37 0.34 1.25 Stage 2 857 0.17 0.15 0.14 0.18 Stage 3 216 0.17 0.14 0.06 0.01 0.01 0.01 0.13 0.00 0.11 POCI 33 0.90 0.91 0.89 0.90 FVPL 147 Total 1,25
Slide 63: REMU - decline of foreclosed assets inflows and sales record positive results
REMU - decline of foreclosed assets inflows and sales record positive results €1.78 bn sales of 3,880 properties across all property classes since set-up Evolution of properties managed by REMU Sales € mn (contract prices1) Group BV (€ mn) # 99 # 331 # 575 # 579 # 492 # 1,1302 # 674 1,215 86 Sales €
Slide 64: REMU - the engine for dealing with foreclosed assets
REMU - the engine for dealing with foreclosed assets On-board assets in REMU at conservative c.25%-30% discount to OMV €184 mn organic sales in FY2022; comfortably above Book Value BV € mn 110% 106% 121% 108% Legacy 2016 2017 2018 2019 2020 2021-22 89% 91% 93% 86% 142 415 173 134 89 71 92 1,116 57 3
Slide 65: Glossary & Definitions
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Glossary & Definitions 65
Slide 66: Glossary & Definitions
Glossary & Definitions Comprise mainly (a) fees of external advisors in relation to: (i) disposal of operations and non-core assets, and (ii) customer loan restructuring activities, and (b) the cost of the tender offer for the Advisory and other restructuring costs Old T2 Capital Notes, where applic
Slide 67: Glossary & Definitions
Glossary & Definitions DFEs Debt for Equity Swaps. 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 Digitally engaged customers ratio banking app,
Slide 68: Glossary & Definitions
Glossary & Definitions IB, W&M International Banking, Wealth and Markets. IBU Servicing exclusively international activity companies registered in Cyprus and abroad and not residents. The sensitivity is calculated assuming a constant balance sheet. Impact of parallel shifts in interest curves This s
Slide 69: Glossary & Definitions
Glossary & Definitions New lending includes the disbursed amounts of the new and existing non-revolving facilities (excluding forborne or re-negotiated accounts) as well as the average year-to-date change (if positive) of New lending the current accounts and overdraft facilities between the balance
Slide 70: Glossary & Definitions
Glossary & Definitions NPE sales refer to sales of NPE portfolios completed, as well as contemplated and potential future sale transactions, irrespective of whether or not they met the held for sale classification criteria at NPE sales the reporting dates. Non-legacy (performing) Relates to all busi
Slide 71: Glossary & Definitions
Glossary & Definitions Return on Tangible Equity (ROTE) is calculated as Profit/(loss) after tax (attributable to the owners of the Company) (as defined) (annualised - (based on year to date days)), divided by the quarterly Return on Tangible equity (ROTE) average of Shareholders’ equity minus intan