Bank Of Cyprus Holdings Plc · CSECY:BOCH
Bank Of Cyprus — Q1 2024 Earnings Presentation
74 slides from Bank Of Cyprus's earnings presentation, May 16, 2024
Slide 1: Group Financial Results for the quarter ended 31 March 2024
Bank of Cyprus Group Group Financial Results For the quarter ended 31 March 2024
Slide 2: Disclaimer
DISCLAIMER The financial information included in this presentation is not audited by the Group’s external performance, prospects, anticipated growth, provisions, impairments, business auditors. strategies and opportunities. By their nature, forward-looking statements involve risk and uncertainty bec
Slide 3: 1Q2024 Financial Performance
Executive Summary – Updated Financial Targets 1Q2024 Financial Performance Appendix 3
Slide 4: Why Bank of Cyprus
Why Bank of Cyprus Strong, Supportive Macro Market Leader • Open economy growing faster than the Eurozone average, • Market leader in a consolidated market proving Cyprus’ resilience to macroeconomic and geopolitical • 43% loan market share; 37% deposit market share volatility • #1 Life and #2 Non-L
Slide 5: Distribution at 30% Payout Ratio out of FY2023 Earnings
Distribution at 30% Payout Ratio1 out of FY2023 Earnings Reiterated Distribution policy: to build prudently and progressively towards a 30-50% payout ratio1; including cash dividends and buybacks €487 mn In line with Distribution Policy (30-50%) FY2023 PAT 30% Material yoy increase; c.8%2 distributi
Slide 6: Fast Growing Economy, Outpacing Euro Area in 2024
Fast Growing Economy, Outpacing Euro Area in 2024 GDP growth of 3.3% for 1Q2024 Unemployment rate decreased to 6.1% for FY2023 Real GDP (yoy % change) Quarterly (%) (seasonally adjusted) 2022: 5.1% 2023: 2.5% 2022: 6.8% 2023: 6.1% 10.00% 9.2% 8.00% 9.00% 6.00% 3.3% Estimated GDP growth of 8.00% 4.00
Slide 7: Strong Performance Continued in 1Q2024
Strong Performance Continued in 1Q2024 Net Interest income modestly declined after Cost income ratio1 remains low, on strong Earnings per share up €0.09 yoy peaking in 4Q2023 income and continued focus on costs (€ mn) (€) 0.31 0.30 0.28 0.29 214 220 213 34% 196 32% 29% 30% 29% 0.21 +0.09 162 1Q2023
Slide 8: 1Q2024 Highlights
1Q2024– Highlights Resilient economic • 3.3% GDP growth in 1Q2024; projected to grow by c.2.9%1 in 2024 outpacing Euro area average outlook • Seasonally strong quarter of new lending of €676 mn, up 46% qoq and 8% yoy • Gross performing loan book at €10.0 bn, up 2% qoq • NII of €213 mn down 3% qoq, r
Slide 9: 1Q2024 Performance Currently Tracking Ahead of 2024 Targets
1Q2024 Performance Currently Tracking Ahead of 2024 Targets FY2024 targets 1Q2024 (February 2024) Net Interest 213 mn >670 mn Income (€) average ECB Depo rate: 4.0% average ECB Depo rate: 3.4% 2025 ROTE Cost to Income of >16%2 Ratio1 29% c.40s on 15% CET1 ratio Average ECB depo rate 2.2% 23.6% >17%2
Slide 10: Income Statement
Income Statement € mn 1Q2024 4Q2023 1Q2023 qoq% yoy% Net Interest Income 213 220 162 -3% 31% Non-interest income 63 76 72 -18% -12% Total income 276 296 234 -7% 18% Total operating expenses1 (81) (93) (80) -14% 2% Operating profit 184 190 143 -3% 28% Provisions and impairments (25) (42) (28) -40% -1
Slide 11: Highly Liquid Balance Sheet
Highly Liquid Balance Sheet 24.94 24.94 (€ bn) Other assets 1.88 Other 1.37 REMU repossessed 0.84 Equity (incl AT1) Issuance of €300 mn MREL- Eligible Green properties 2.62 • 24%1 linked with Bank’s base rate (‘natural Wholesale Senior Preferred Notes in April 2024; coupon hedging’ of time & notice
Slide 12: Continued Strong NII in 1Q2024
Continued Strong NII in 1Q2024 NII remained strong at €213 mn; NIM at 390 bps Effective yield on assets & cost of funding 397 400 390 Performing loans Cost of deposits 376 2 NIM excluding400 318 Liquid assets Cost of wholesale funding 2 TLTRO (bps) 200 (bps) 547 560 554 0 455 520 214 220 213 346 363
Slide 13: Improved NII Outlook Driven by the Rate Outlook
Improved NII Outlook Driven by the Rate Outlook FY2024 FY2024 4Q2023 1Q2024 NII assumptions Feb 24 Apr 24 Actual Actual NII Sensitivities Guidance Market rates ECB depo rate- average 4.00% 3.43% 4.00% 3.72% Positive impact on balances with central banks for 2024: +c.€20 mn1 +c.€40mn Positive impact
Slide 14: Reducing NII Sensitivity via Hedging
Reducing NII Sensitivity via Hedging NII sensitivity to parallel shift in interest rates (annualised)1 Outlook EUR +100bps -100bps • Target of €4-5 bn hedging in FY2024 with average duration c.3-4 years; Dec 2023 €102 mn -€110 mn • c.50% (€2.1 bn) achieved in 1Q2024, reducing NII sensitivity by €20
Slide 15: Continuing Positive Deposit Trends and Resilient Deposit Pass-through
Continuing Positive Deposit Trends and Resilient Deposit Pass-through Deposits at €19.3 bn1; Modest shift to Time & Notice deposits Gradual increase in Time & Notice deposit pass-through2 to 22% for 1Q2024 Cost of deposits € bn (bps) 10 14 19 24 29 19.0 19.3 19.3 87 Guidance assumes to 90.0 74 5.7 3
Slide 16: Robust Liquidity Position; Surplus Liquidity of €7.3 bn
Robust Liquidity Position; Surplus Liquidity of €7.3 bn Post Repayment of €1.7 bn TLTRO Diversified, mainly retail funded deposit base Highly liquid balance sheet Group deposits Liquid assets • Sticky deposit base sits • 58% insured deposits epo d 5% 4% • 63% Retail e ld i n c a s h 58% sured 20% 6%
Slide 17: Seasonally Strong Quarter of New Lending of €676 mn
Seasonally Strong Quarter of New Lending of €676 mn, up 46% qoq New lending up 46% qoq Gross performing book1 up 2% qoq € mn € bn +8% +2% 676 9.90 9.91 9.86 9.78 10.00 624 64 0.67 0.69 0.77 0.74 0.76 64 494 462 +46% 50 445 3.90 3.89 3.79 3.69 3.81 297 43 66 358 212 190 166 1.02 1.00 0.97 0.96 0.98 7
Slide 18: Fixed Income Portfolio up 36% yoy
Fixed Income Portfolio up 36% yoy, Representing 15% of Total Assets1 Fixed income securities per category - NBV Fixed income securities per issuer type - NBV to increase to % assets1 12% 14% 15% c.16% +36% by Dec 20242 3,743 (€ mn) 3,743 (€ mn) 3,548 3,548 184 Other financial 426 163 431 & other cor
Slide 19: Non-NII of €63 mn Covering Almost 80% of Operating Expenses
Non-NII of €63 mn in 1Q2024 Covering Almost 80% of Total Operating Expenses YoY Performance (1Q2024 vs 1Q2023) 81 3 76 • Net fee and commission income down 5% yoy, reflecting mainly lower 72 71 12 3 2 2 63 transactional fees (non-card) 11 16 5 11 1 10 10 15 13 16 • Net FX and other income2 down 36%,
Slide 20: Profitable Life Insurance Business
Profitable Life Insurance Business - Valuable and Sustainable Contribution to the Group € mn 1Q2024 1Q2023 yoy% 9% 4% 27% Net Insurance result Contribution Market 5.8 4.7 25% Contribution to the share2 to non-NII Group’s PAT Net other operating costs (non-attributable) (0.3) (0.3) 10% Net revaluatio
Slide 21: Profitable Non-Life Insurance Business
Profitable Non–Life Insurance Business – Valuable and Sustainable Contribution to the Group € mn 1Q2024 1Q2023 yoy% 6% 2% 14% Net Insurance result 4.0 4.8 -17% Contribution Market Contribution to the share2 Other operating costs (non- to non-NII Group’s PAT (0.8) (0.7) 12% attributable) Revaluation/
Slide 22: Leading Card Processing and Payment Solutions Business in Cyprus
Leading Card Processing and Payment Solutions Business in Cyprus € mn 1Q2024 1Q2023 yoy% 12% 2% 84% Contribution Market Net fee and commission income 6.7 6.2 9% Contribution to the share1 Net other income 0.9 0.6 54% to non-NII Group’s PAT FX and net gains on revaluation 0.2 0.5 -74% of investment T
Slide 23: Digital Offerings via Digital Channels Enhance Group’s Sales
Digital Offerings via Digital Channels Enhance Group’s Sales New Quickloans1 of €23 mn in 1Q2024; launched Digital account Openings2 up 67% yoy New debit cards up 133% yoy in Jan 2023 € mn Accounts (#) Accounts (#) Debit Cards (#) 4,171 4,617 3,748 4,476 3,735 +67% 27 +28% 3,237 +20% 2,502 +133% 23
Slide 24: 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 (New!) • Product Marketplace • Ecosystem ma
Slide 25: Cost to Income Ratio Remains Low at 29%
Cost to Income Ratio1 Remains Low at 29%, on Strong Income and Continued Focus on Costs Total operating expenses1 down 14% qoq and broadly flat yoy (€ mn) 100 93 1.0 YoY Performance (1Q2024 vs 1Q2023) 82 86 80 81 80 0.8 • Staff costs up 6% yoy due to salary increments and higher cost-of-living adjus
Slide 26: COR of 27 bps in 1Q2024
COR of 27 bps in 1Q2024 Cost of risk Bank’s IFRS 9 macroeconomic assumptions 0.62% Base line GDP rate Unemployment rate 0.44% 0.44% 0.27% 2024 2.6% 6.0% 2025 2.6% 5.7% FY2022 FY2023 1Q2023 1Q2024 Breakdown of quarterly cost of risk • Cost of Risk of 27 bps (€7 mn) in 1Q2024 down 46 bps qoq and 17 bp
Slide 27: Capital, Liquidity & Asset Quality
Executive Summary – Updated Financial Targets Capital, Liquidity & Asset Quality Appendix 27
Slide 28: Robust Capital Position
Robust Capital Position • Regulatory CET1 ratio at 17.1%; including 1Q2024 Regulatory capital ratios profits net of distribution accrual3 at 17.6% 22.4% 22.0% • Organic capital generation4 of 128 bps in 1Q2024 20.4% 20.7% 20.4% 19.4% 19.0% 19.1% 19.3% 17.4% 17.1% • Distribution accrual in 1Q2024 is
Slide 29: 2024 Final MREL Requirement Already Achieved with Significant Buffer
2024 Final MREL Requirement Already Achieved with Significant Buffer • Successful issuance of €300 mn MREL-Eligible Green Senior Preferred Notes in April 2024 MREL (% of RWAs) • Coupon of 5.0% p.a.; 50 bps tighter than the initial price guidance • Final order book 4x over-subscribed at €1.3 bn 32.7%
Slide 30: NPE Ratio at 3.4%, on Track with 2024 Target of c.3%
NPE Ratio at 3.4%, on Track with 2024 NPE ratio Target of c.3% NPEs down 5% qoq to €347 mn; residual NPEs mainly Retail Underlying NPE inflows remain under control 90% Net inflows/ NPE 80% 73% 78% 77% 77% -22 -18 -13 7 -18 73% (outflows) coverage 70% 60 60%(€ mn) 389 371 365 (€mn) 46 358 347 347 50%
Slide 31: REMU Stock Properties on Track to Achieve 2025 Target
REMU Stock Properties on Track to Achieve 2025 Target REMU repossessed stock at €836 mn at March 2024 Organic sales1 consistently close to Open Market Value; comfortably 2.0 above Book Value Group BV (€ bn) 1.48 1.44 1.5 119% 75% of Open 114% 113% 112% 114% 1.16 -€26 mn 107% 1.08 Market Value 1.0 94
Slide 32: Concluding Remarks
Concluding Remarks ✓ 30% 1 distribution out of 2023 earnings, equivalent to 8% distribution yield; launched inaugural share buyback ✓ Profit after tax of €133 mn in 1Q2024, equivalent to a ROTE of 23.6% ✓ 1Q2024 Performance tracking ahead of 2024 targets Financial targets to be reviewed with 1H2024
Slide 33: Steadily Improving Credit Ratings for BOC
Steadily Improving Credit Ratings for BOC: Investment Grade by Moody’s Moody’s upgraded rating to Baa3 in October 2023; outlook positive S&P upgraded rating to BB in December 2023; outlook positive A38 A- 8 Baa1 BBB+ Baa2 7 Baa2 BBB 7 BBB Baa3 Baa3 Investment grade BBB- Investment grade 6 Ba1 BB+ 6
Slide 34: Key Information and Contact Details
Key Information and Contact Details Contacts Investor Relations & ESG Executive Director Finance Tel: +35722122239, Email: investors@bankofcyprus.com Eliza Livadiotou, Tel: +35722 122128, Email: eliza.livadiotou@bankofcyprus.com Annita Pavlou Manager Investor Relations & ESG Tel: +357 22 122740, Ema
Slide 35: ESG update
Executive Summary – Updated Financial Targets ESG update https://www.bankofcyprus.com/globalassets/csr/sustainability-reports/bocsustainabilityreport2022_eng.pdf Appendix 35
Slide 36: 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 37: Delivering on our ESG Commitments
Delivering on our ESG Commitments Stakeholder ESG Priorities in 2024 SDG • Set additional decarbonization targets on loan and investment portfolios • Enhance ESG disclosures to ensure transparency against the ESG performance by publishing the seventh Investors Sustainability Report • Monitor the imp
Slide 38: Delivering on our ESG Commitments
Delivering on our ESG Commitments Climate Stability - Target 1: Become Carbon Neutral Estimated performance against baseline for FY2024 by reducing Scope 1 & Scope 2 GHG emissions by 42% by 2030 • c.11% yoy reduction in Scope 1 & Scope 2 GHG emissions in FY2023 • c.7% reduction in Scope 2 GHG emissi
Slide 39: Delivering on our ESG Commitments
Delivering on our ESG Commitments Climate Stability – Target 3: Increase portfolio of environmentally friendly loans Climate Stability – Target 4: Reduce paper consumption Gross loans (€ mn) # paper printed in mn -44% 127.4 140.3 111.7 125.4 263.6 291.3 16 13 16.7 17.5 12 10 9 7.7 5.8 2.0 2.4 Commer
Slide 40: Delivering on our ESG Commitments
Delivering on our ESG Commitments Financial Inclusion and Resilience - Target 6: Continue Health and Safety - Target 7: Contribute and support cancer patients and supporting start-ups under The IDEA1 Innovation Center. their families through the Bank of Cyprus Oncology Centre The IDEA Innovation Cen
Slide 41: Delivering on our ESG Commitments
Delivering on our ESG Commitments Education - Target 10: Provide upskilling/reskilling employee opportunities in Culture and Heritage - Target 11: The Foundation’s main line with the digital transformation initiatives to broaden career opportunities strategic aim is to encourage the research and stu
Slide 42: Macroeconomic overview
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Macroeconomic overview 42
Slide 43: Strong, Diversified Economy Demonstrated by Key Enablers
Strong, Diversified Economy Demonstrated by Key Enablers A diversified, service-based economy Cyprus Public Debt to GDP below Euro area average Structure of Economy in 2022 (% of GVA) As at 31 December 2023 166% Public debt expected to decrease to 59%1 by end- 137% 9% 9% Wholesale & Retail trade Rea
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) 25 20 Tertiary 46% 15 14 1 13 12 Wages per capita Within #3 countries in Europe 7 on number of university graduates pe
Slide 45: 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 46: Additional financial information
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Additional financial information 46
Slide 47: Analysis of Deposits
Analysis of Deposits Deposits by Currency (€ bn) Deposits by Customer Sector (€ bn) Currency Dec 22 Jun 23 Sep 23 Dec 23 Mar 24 Sector Dec 22 Jun 23 Sep 23 Dec 23 Mar 24 EUR 17.07 17.30 17.35 17.51 17.42 Retail 11.35 11.68 11.68 11.79 12.16 USD 1.53 1.47 1.53 1.45 1.46 SME 1.01 0.97 1.01 1.03 1.02 G
Slide 48: Income Statement
Income Statement € mn 1Q2024 4Q2023 1Q2023 qoq% yoy% Net Interest Income 213 220 162 -3% 31% Net fee and commission income 42 46 44 -10% -5% Net foreign exchange gains and net gains on financial instruments 7 8 13 -12% -44% Net insurance result 10 16 10 -37% 4% Net gains/(losses) from revaluation an
Slide 49: Consolidated Balance Sheet
Consolidated Balance Sheet % % Assets (€ mn) 31.03.2024 31.12.2023 change Liability and Equity (€ mn) 31.03.2024 31.12.2023 change Cash and balances with central banks 7,217 9,615 -25% Deposits by banks 396 472 -16% Loans and advances to banks 384 385 0% Funding from central banks 310 2,044 -85% Rev
Slide 50: ROTE on 15% CET1 Ratio
ROTE on 15% CET1 Ratio TBV adjusted for excess CET1 capital on a 15% CET1 ratio ROTE on 15% CET1 € mn Mar 24 Dec 23 € mn Mar 24 Mar 23 Shareholders’ equity 2,381 2,247 PAT annualised 534 384 - Intangible assets (47) (49) Average TBV adjusted for / excess CET1 capital on a 1,835 1,756 - FY23 distribu
Slide 51: Risk Weighted Assets – Regulatory Capital
Risk Weighted Assets– Regulatory Capital Risk Weighted Assets by Geography Reconciliation of Group Equity to CET1 31.03.24 € mn 31.12.22 31.12.23 31.03.24 € mn 31.03.24 Inc. retained earnings Cyprus 10,059 10,297 10,504 Shareholder’s equity 2,381 2,381 55 44 44 Less: Intangibles (21) (21) Overseas L
Slide 52: Overall Capital Requirements
Overall Capital Requirements CET1 ratio Total capital ratio 15.56% 15.61% CCyB c.0.48% 0.49% 10.91% 1.50% c.1.88% 10.72% O-SII 0.49% CCyB c.0.48% CCB 2.50% 2.50% O-SII 1.50% c.1.88% Pillar 2R 3.08% 2.75% CCB 2.50% 2.50% Tier 2 2.00% 2.00% Pillar 2R 1.73% 1.55% AT1 1.50% 1.50% Total Pillar 1: 8% Pill
Slide 53: Buffer to MDA Restrictions Level & Distributable Items
Buffer to MDA Restrictions Level & Distributable Items1 CET1 Ratios 619 bps 670 bps2 17.1% 17.6% • Significant CET1 MDA buffer as at 31 March 2024: 619 bps (€653 mn) 10.9% 10.9% • Including retained earnings for the period ended 31 March 2024, significant CET1 MDA buffer as at 31 March 2024 at 670 b
Slide 54: Income Statement Bridge for 1Q2024
Income Statement Bridge1 for 1Q2024 Underlying Statutory € mn Other basis Basis Net interest income 213 - 213 Net fee and commission income 42 - 42 Net foreign exchange gains and net gains on financial instruments 7 - 7 Net gains on derecognition of financial assets measured at amortised cost - 2 2
Slide 55: Analysis of Interest Income and Interest Expense
Analysis of Interest Income and Interest Expense Analysis of Interest Income (€ mn) 1Q2024 4Q2023 3Q2023 2Q2023 1Q2023 Loans and advances to customers 138 141 138 131 113 Loans and advances to banks and central banks 92 97 92 76 57 Repurchase agreements 4 3 - - - Investments and other financial asse
Slide 56: Income Statement by Business line for 1Q2024
Income Statement by Business line for 1Q2024 International International Consumer SME Corporate € mn corporate Business RRD REMU Insurance Treasury JCC Other Total Banking Banking Banking Banking Unit Net interest income/(expense) 106 14 39 9 31 4 (7) - 17 - - 213 Net fee & commission income/(expens
Slide 57: Statutory Income Statement for Insurance Businesses for 1Q2024
Statutory Income Statement for Insurance Businesses for 1Q2024 € mn 1Q2024 1Q2023 yoy% € mn 1Q2024 1Q2023 yoy% Insurance revenue 19.1 17.1 12% Insurance revenue 16.5 15.4 7% Insurance service expense (12.0) (13.2) -9% Insurance service expense (9.0) (8.8) 2% Net insurance service result 7.1 3.9 82%
Slide 58: Additional Asset Quality Slides
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Additional Asset Quality Slides 58
Slide 59: 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 €10.00 bn € bn Housing Other Private 3.82 0.71 4.53 Individuals Hotels & 1.23 Catering Private individuals Private individuals Business Real Estate 1.01 LTV2 Housing Other €5.47 bn €3.8
Slide 60: Gross Loans and NPE Coverage by Customer Type
Gross Loans and NPE Coverage by Customer Type Gross loans by customer type € mn Mar 23 Dec 23 Mar 24 Retail Housing 3,559 3,556 3,575 Retail other 974 994 1,038 SMEs 1,096 1,010 1,024 International corporate 668 763 773 Corporate 3,981 3,747 3,866 Total 10,278 10,070 10,276 Corporate SMEs Retail Mar
Slide 61: Loans by Economic Activity and Arrears Analysis
Loans by Economic Activity and Arrears Analysis Gross loans (€ mn) Mar 23 Dec 23 Mar 24 Loans arrears analysis Mar 23 Dec 23 Mar 24 (€ mn) Trade 924 886 940 Loans with no arrears 9,860 9,675 9,897 Manufacturing 393 364 377 Hotels & Catering 1,222 1,178 1,250 Loans with arrears but not 29 30 32 NPEs
Slide 62: €18 mn Net NPE Outflows in 1Q2024
€18 mn Net NPE Outflows in 1Q2024 Analysis of total inflows(€ mn) 1Q2024 4Q2023 3Q2023 2Q2023 1Q2023 New inflows 8 6 9 9 7 Redefaults 1 1 0 1 2 Unlikely to pay 2 53 37 1 1 Total inflows 11 60 46 11 10 Analysis of total outflows (€ mn) Curing of restructuring (6) (9) (7) (8) (13) DFAs & DFEs (3) (1)
Slide 63: 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) 10,278 10,070 10,276 282 Mar 23 Dec 23 Mar 24 267 267 Stage 1 8,075 8,335 8,621 84% 80 64 84 Stage 1 1.0% 1.0% 0.7% 49 44 42 Stage 2 2.7% 3.1% 3.4% Stage 2 13% 153 1
Slide 64: Stage 2 Exposures Well Collateralised; 97% Present no Arrears
Stage 2 Exposures Well Collateralise; 97% of Exposures Present no Arrears € mn 1,308 4.1% Trade 74 Limited migration rate of Stage 2 to • Net c.€40 mn Stage 2 loans were migrated to 8.9% Real estate 103 Of which: Stage 3 at 2.4% • €239 mn (18%) Performing Forborne Stage 1 in 1Q2024 Other 194 • €507
Slide 65: Rescheduled Loans
Rescheduled Loans1 Rescheduled loans1 by customer type Fair value of collateral and credit enhancements € bn Mar 23 Dec 23 Mar 24 31 Mar 2024 Loans and advances to customers (€ mn) Retail housing 0.17 0.14 0.12 Cash 497 Retail other 0.05 0.03 0.03 Securities 760 SMEs 0.08 0.04 0.04 Letters of credit
Slide 66: REMU - the Engine for Dealing with Foreclosed Assets
REMU - the Engine for Dealing with Foreclosed Assets €2.01 bn sales1 of 4,562 properties across all property classes since set-up €23 mn sales1 in 1Q2024; comfortably above Book Value Sales € mn (contract prices1) # 99 # 331 # 579 # 1,130 # 674 # 569 # 113 Net Proceeds / BV 114% 102% 142% 112% # 575
Slide 67: REMU - the Engine for Dealing with Foreclosed Assets
REMU - the Engine for Dealing with Foreclosed Assets Evolution of repossessed properties managed by REMU Group BV (€ mn) By type (€ mn) 862 5 Land (17) 43 Golf 15 49 Commercial & Manufacturing (10) 139 391 836 836 Hotels (3) Residential 199 Overseas 1 Jan 2024 Additions Sales Impairments & Transfers
Slide 68: Glossary & Definitions
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Glossary & Definitions 68
Slide 69: 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 70: 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 71: 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 72: Glossary & Definitions
Glossary & Definitions Non-interest income comprises Net fee and commission income, Net foreign exchange gains/(losses) and net gains 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 73: 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 74: Glossary & Definitions
Glossary & Definitions Return on Tangible equity (ROTE) Return on Tangible Equity (ROTE) on 15% CET1 ratio, excluding amounts reserved for distributions is calculated as Profit/(loss) after tax (attributable to the owners of the Company) (as defined) on 15% CET1 ratio, excluding (annualised - (based
Bank of Cyprus Holdings — Q1 2024 Earnings Presentation on 6ix