Bank Of Cyprus Holdings Plc · CSECY:BOCH
Bank Of Cyprus — Q1 2023 Earnings Presentation
72 slides from Bank Of Cyprus's earnings presentation, May 16, 2023
Slide 1: Group Financial Results for the quarter ended 31 March 2023
Bank of Cyprus Group Group Financial Results For the quarter ended 31 March 2023
Slide 2: Disclaimer
DISCLAIMER The financial information included in this presentation is not audited by the Group’s external auditors. term and longer term future capital requirements and ratios, intentions, beliefs or current expectations and projections about the Group’s future results of operations, financial condi
Slide 3: Table of contents
Table of contents Executive Summary – Updated Financial Targets 1Q2023 Financial Performance Appendix 3
Slide 4: 1Q2023 Highlights
1Q2023– Highlights • Economy to grow by c.2.8%1 in 2023, significantly above the eurozone average Economic outlook • Another seasonally strong quarter of new lending of €624 mn, up 41% qoq and broadly flat yoy remains strong • Gross performing loan book of €9.9 bn, up 1% qoq and yoy • NII of €162 mn
Slide 5: Resumption of dividend payments after 12 years
Resumption of dividend payments after 12 years FY2022 Going forward ROTE:10.0% Sustainable (Recurring)1 ROTE7: >13% 2023-2024 4% Balance sheet de-risking completed <5% NPE ratio NPE ratio Improved efficiency on cost 49% mid-40s initiatives despite inflationary C/I ratio2 C/I ratio2 pressures 15.4%3,
Slide 6: 1Q2023 performance ahead of 2023 targets
1Q2023 performance ahead of 2023 targets FY2023 1Q2023 targets €520-550 mn €162 mn Net interest income (+40-50% yoy) (+127% yoy) Cost to income ratio1 Mid-40s 34% ROTE2 >13% 21.3% NPE ratio <5% 3.8% Cost of risk 50-80 bps 44 bps €22.3 mn out of FY2022 Dividend Intention to commence from 2023 onwards
Slide 7: Strong Cypriot economy; solid GDP growth expected for 2023
Strong Cypriot economy; solid GDP growth of c.2.8%1 expected for 2023 GDP growth of 5.6% in FY2022 1Q2023 Tourist arrivals 10% ahead of 1Q2019 Real GDP 2021: 6.6% 2022: 5.6% Tourism arrivals (ths) (yoy % change) 3,977 20.00% 12.9% 15.00% GDP expected to grow by 3,201 +10% 10.00% 5.3% 4.5% c.2.8%1 in
Slide 8: Income Statement
Income Statement QoQ Performance (1Q2023 vs 4Q2022) 1Q2023 1Q2022 4Q2022 € mn qoq% yoy% IFSR 17 IFRS 17 • NII up 19% supported by interest rate rises and resilient low Net Interest Income 162 71 136 19% 127% deposit pass-through Non interest income 72 66 79 -11% 8% • Non-NII down 11% reflecting main
Slide 9: NII up 127% yoy, supported by interest rate rises
NII up 127% yoy, supported by interest rate rises and well-managed deposit pass-through 1 NII of €162 mn, up 19% qoq Effective yield on assets & cost of funding 291 Performing loans Cost of deposits 300 236 Liquid assets 1,3 Cosf of wholesale funding 3 153 NIM bps200 132 133 (bps) 100 +127% 455 200
Slide 10: Highly liquid balance sheet
Highly liquid balance sheet • Cash, balances with Central Banks of €9.2 bn, of which €2.0 bn As at 31 March 2023 TLTRO III (€ bn) 25.39 25.39 • Immediate benefit from ECB depo rate increases1 Other assets 1.76 1.20 Other REMU properties 1.05 2.14 Equity 0.61 Wholesale • Securities of €2.9 bn (of whi
Slide 11: Robust liquidity position; surplus liquidity of €7.4 bn
Robust liquidity position; surplus liquidity of €7.4 bn Diversified, mainly Retail funded deposit base Highly liquid balance sheet Group deposits Liquid assets • Sticky deposit base • 59% insured deposits 5% 3% 21% • 60% Retail 19% • Average size of Retail deposits: c.€27k 4% €19.0 bn €12.4 bn 14% 5
Slide 12: Retail funded deposit base up 7% yoy
Retail funded deposit base up 7% yoy; loan to deposit ratio at 53% Deposits at €19.0 bn; market share at 37.3% Deposit pass through4 remained at 10% +7% yoy 19.0 Time & Notice Savings, Current & Demand Cost of deposits (bps) € bn 19.0 19.0 17.7 1 21% IBS 5.6 29% 5.7 30% 5.8 33% 14% Corporate2 2 2 3
Slide 13: Seasonally strong quarter of new lending of €624 mn
Another seasonally strong quarter of new lending of €624 mn, up 41% qoq New lending of €624 mn in 1Q2023, broadly flat yoy Gross performing book2 up 1% yoy to €9.9 bn € mn Gross loans (€ bn) +41% +1% qoq yoy 622 624 104 537 64 9.75 9.92 9.92 9.80 9.90 48 489 444 0.70 0.74 0.75 0.69 0.67 31 1 258 297
Slide 14: Fixed income portfolio up 10% qoq
Fixed income portfolio up 10% qoq; careful expansion to continue1 Fixed income securities per category - NBV Fixed income securities per issuer type - NBV % assets 7% 10% 11% +10% (€ mn) 2,747 (€ mn) qoq 2,500 2,747 415 2,500 135 A1 454 110 1,855 970 Aa3 1,855 838 2 Other financial & other corporati
Slide 15: Non interest income at €72 mn in 1Q2023
Non interest income at €72 mn in 1Q2023 Total non – NII (€ mn) QoQ Performance (1Q2023 vs 4Q2022) 79 76 2 71 72 4 2 • Net fee and commission income net of liquidity fees and NPE sale-related 66 2 17 5 6 14 servicing fee, down 3% reflecting seasonally lower transactional fees 16 6 13 10 10 11 5 5 10
Slide 16: Transition to IFRS 17 from IFRS 4
Transition to IFRS 17 from IFRS 4 IFRS 17 is an accounting standard. It does not change the economics of our insurance business Overview Balance Sheet and Capital • Accounting change impacting the phasing of profit recognition on insurance Equity 31 December 2022 under IFRS 17 vs IFRS 4 contracts •
Slide 17: Profitable Life Insurance business
Profitable Life Insurance business - valuable and sustainable contribution to the Group 1Q2022 Adjusted Income Statement; Transition to IFRS 173 from IFRS 4 € mn 1Q2023 1Q2022 yoy% (IFRS 17) 2.9 Net Insurance result 4.7 6.1 -23% 6.1 (13.2) Other operating costs (non- 6.4 (0.3) (0.3) -20% attributabl
Slide 18: Profitable Non-Life Insurance business
Profitable Non–Life Insurance business – valuable and sustainable contribution to the Group 1Q2022 Adjusted Income Statement; Transition to IFRS 173 from IFRS 4 € mn 1Q2023 1Q2022 yoy% (IFRS 17) Net Insurance result 4.8 5.1 -6% 1.4 Other operating costs (non- (6.5) (0.7) (0.7) 10% 5.1 attributable)
Slide 19: Leading card processing and payment solutions business in Cyprus
Leading card processing and payment solutions business in Cyprus € mn 1Q2023 1Q2022 yoy% 3% 10% 85% Net fee and commission income 6.2 5.1 21% Contribution to the Market Contribution Other income 0.6 1.51 -62% Group’s share3 to non-NII PBT2 FX and net gains on revaluation 0.5 0.4 34% of investment To
Slide 20: Cost to income ratio at 34% in 1Q2023
Cost to income ratio1 at 34% in 1Q2023 Cost base continues to reflect benefits from efficiency actions • Total operating expenses down 3% yoy reflecting benefits from -3% efficiency actions partly offset by wage and inflationary pressures yoy 90 81 83 84 1.0 77 80 • Staff costs up 9% qoq driven by h
Slide 21: Leverage leading Digital Capabilities to serve customers
Leverage leading Digital Capabilities to serve customers and the economy Digital transactions ratio1 at 94% Digitally engaged customers ratio at 83% Leader in shaping the digital transformation of local economy 79% 83% 92% 94% 76% 86% 2 2 Mar 21 Mar 22 Mar 23 Mar 21 Mar 22 Mar 23 Vision Average mobi
Slide 22: Capital, Liquidity & Asset Quality
Capital, Liquidity & Asset Quality 22
Slide 23: Robust capital position with CET1 at 15.2%
Robust capital position with CET1 at 15.2%1 and Total Capital ratio at 20.3%1 min OCR requirement for 20232 Restated for 20.3% FY2022 dividend3 3.0% 15.2% 0.5% (0.2%) (0.7%) 15.5% 15.2% 2.1% 0.9% (0.2%) (0.3%) 15.10% 10.25% CET1 Organic IFRS 17 RWAs Final Other CET1 Accrued CET1 31 AT1 T2 Total Capi
Slide 24: MREL position
MREL position MREL (% of RWAs) CBR1 • MREL ratio as % of RWAs1 at 20.82%2 as at 31 March 2023 4.021 + 24.35% + • MREL ratio as % of Leverage Ratio Exposure (LRE) of 10.01% as at 31 March 20.82% 2 2023 3 Senior preferred liabilities 4.45% • Based on latest SRB communication: • final target is set at
Slide 25: NPE ratio decreased at 3.8%; limited NPE inflows
NPE ratio decreased at 3.8%; limited NPE inflows NPE organically reduced by 5% qoq Residual NPEs comprises mainly Retail NPE inflows remain under control 1,343 389 99 (€ mn) (€ mn) (€mn) -5% 19 20 197 13 411 389 10 7 551 49 129 107 44 Dec 21 Dec 22 Mar 23 Mar 23 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 1
Slide 26: COR of 44 bps for 1Q2023
COR of 44 bps for 1Q2023; resilient credit portfolio quality 1.18% Bank’s IFRS 9 Macroeconomic assumptions 0.43% Base line GDP rate Unemployment rate 0.57% 0.44% 0.44% 0.44% 2023 2.7% 6.9% 0.75% 0.61% 2024 2.5% 6.8% (0.04%) FY2020 FY2021 FY2022 1Q2022 1Q2023 bps 44 41 45 42 44 • Cost of risk of 44 b
Slide 27: REMU: Asset disposals steady qoq
REMU: Asset disposals steady qoq Organic sales of €43 mn in 1Q2023 Organic sales consistently close to Open Market Value; comfortably Organic sales € mn ( contract prices1) above Book Value #161 #212 #139 #162 #138 119% 114% 113% 112% 107% 51 48 94% 43 42 43 88% 86% 90% 91% 1Q2019 1Q2020 1Q2021 1Q20
Slide 28: Substantial progress against our ESG agenda
Substantial progress against our ESG agenda Carbon Neutral by 2030 Progress on carbon neutrality target in 1Q2023: Progress on carbon neutrality target in FY2022: • c.255k KWh energy savings yoy • c.123k investment in energy-saving activities in 1Q2023 • For the Bank to meet the carbon neutrality ta
Slide 29: Substantial progress against our ESG agenda
Substantial progress against our ESG agenda First TCFD Report Published Financed Scope 3 GHG emissions on 2022 loan portfolio The first TCFD report has been published by the (CO2e tonnes per year (mn)) Company, as part of its 2022 Annual Financial Report, 5.0 presenting the current activities and fu
Slide 30: Substantial progress against our ESG agenda
Substantial progress against our ESG agenda BOC Oncology Centre Women representation at Board and Senior Management levels • Cumulative investment of c.€70 mn from 1998 to March 2023 As at 31 March 2023: • 60% of diagnosed cancer cases in Cyprus are being • 27% of women representation in Group’s tre
Slide 31: Concluding remarks
Concluding remarks ✓ Resumption of dividend payments after 12 years ✓ 1Q2023 performance ahead of 2023 targets ✓ Profit after tax of €95 mn in Q1 2023, equivalent to an annualised ROTE of 21.3% Investor Update Event 8 June 2023 London 31
Slide 32: Steadily improving credit ratings for BOC
Steadily improving credit ratings for BOC Moody’s upgraded rating to Ba1; outlook positive S&P upgraded rating to BB+; outlook positive A38 A- 8 Baa1 BBB+ Baa2 7 BBB 7 BBB Baa3 Investment grade BBB- Investment grade 6 Ba1 Ba1 BB+ 6 Ba2 BB 5 Ba3 BB- 5 BB- B1 B+ B24 B 4 B3 B- 3 Caa1 CCC+3 CCC Caa2 BOC
Slide 33: Key Information and Contact Details
Key Information and Contact Details Contacts Investor Relations & ESG Executive Director Finance & Legacy 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 12
Slide 34: Macroeconomic overview
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Macroeconomic overview 34
Slide 35: 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 36: Limited economic effects on BOCH from Russia-Ukraine war
Limited economic effects on BOCH from Russia-Ukraine war Direct Impact Actions taken by the Bank to address legacy shortcomings • No banking operations in Ukraine/Russia since 2015; <€1 mn net legacy exposure • Since 2014, the Bank has engaged in a very demanding and rigorous anti- as at 31 March 20
Slide 37: Macro & Banking Overview
Macro & Banking Overview Loan market share at 42% in Mar 2023 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% 42.4% 38.3% 38.8% 40.9% 37.3% 37.5% 37.9% 37.7% 37.9% 37.1% 35.8% 35.4% 35.2% 36.0% 36.0% 35.1% 35.8% 36
Slide 38: Analysis of Deposits
Analysis of Deposits Deposits by Currency (€ bn) 18.45 18.79 19.00 18.97 17.66 0.32 0.08 0.33 0.07 0.34 0.07 0.32 0.09 1.52 0.32 0.08 1.70 1.53 1.52 1.39 Other Currencies 15.86 16.53 16.69 17.07 17.04 GBP USD EUR Mar 22 Jun 22 Sep 22 Dec 22 Mar 23 Deposits by Customer Sector (€ bn) 18.45 18.79 19.00
Slide 39: Additional financial information
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Additional financial information 39
Slide 40: Income Statement
Income Statement 1Q2022 4Q2022 € mn 1Q2023 qoq% yoy% (IFRS 17) (IFRS 17) Net Interest Income 162 71 136 19% 127% Net fee and commission income 44 44 50 -12% 1% Net foreign exchange gains and net gains/(losses) on financial instruments 13 2 12 12% - Net insurance result 10 11 10 -11% -15% Net gains/(
Slide 41: Consolidated Balance Sheet
Consolidated Balance Sheet 31.12.2022 % 31.12.2022 % Assets (€ mn) 31.03.2023 (IFRS 17) change Liability and Equity (€ mn) 31.03.2023 (IFRS 17) change Cash and balances with central banks 9,248 9,567 -3% Deposits by banks 481 508 -5% Loans and advances to banks 416 205 103% Funding from central bank
Slide 42: Risk Weighted Assets – Regulatory Capital
Risk Weighted Assets– Regulatory Capital Risk Weighted Assets by Geography (€ mn) Reconciliation of Group Equity to CET1 € mn 31.03.23 31.12.21 30.09.22 31.12.22 31.03.23 Shareholder’s equity 1,899 Cyprus 10,595 10,472 10,059 10,108 Less: Intangibles (28) Overseas 99 66 55 56 Less: Deconsolidation o
Slide 43: 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 44: Buffer to MDA Restrictions Level & Distributable Items
Buffer to MDA Restrictions Level & Distributable Items1 CET1 Ratios 498 bps • Significant CET1 MDA buffer as at 31 Mar 2023: 498 bps (€506mn) 15.2% • Distributable items of €952 mn for BOCH as at 31 March 2023 • M-MDA3 buffer as at 31 Mar 2023: 588 bps (€598 mn) 10.2% • BOCH fully utilises its AT1 a
Slide 45: Income Statement bridge for 1Q2023
Income Statement bridge1 for 1Q2023 Underlying € mn Other Statutory Basis basis Net interest income 162 - 162 Net fee and commission income 44 - 44 Net foreign exchange gains and net gains on financial instruments 13 1 14 Net gains on derecognition of financial assets measured at amortised cost - 0
Slide 46: Analysis of Interest Income and Interest Expense
Analysis of Interest Income and Interest Expense Analysis of Interest Income (€ mn) 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 Loans and advances to customers 77 81 87 102 113 Loans and advances to banks and central banks 7 7 9 36 57 Investments and other financial assets at amortised costs 4 4 5 11 13 Inve
Slide 47: Net interest income positively geared to further interest rate rises
Net interest income positively geared to further interest rate rises NII sensitivity to parallel shift in interest rates (annualised) Key simplifying assumptions • An instantaneous and sustained parallel movement in EUR and USD interest rates Y1 +60bps +100bps • Static balance sheet in size and comp
Slide 48: Income Statement by business line for 1Q2023
Income Statement by business line for 1Q2023 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) 80 13 40 7 27 4 4 (10) - (3) - 162 Net fee
Slide 49: IFRS 17 Implementation
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix IFRS 17 Implementation 49
Slide 50: Statutory Income Statement for insurance businesses for 1Q2023
Statutory Income Statement for insurance businesses for 1Q2023 € mn 1Q2023 1Q2022 yoy% € mn 1Q2023 1Q2022 yoy% (IFSR 17) (IFRS 17) Insurance revenue 17.9 19.0 -6% Insurance revenue 15.4 13.7 12% Insurance service expense (14.0) (12.3) 14% Insurance service expense (8.8) (6.8) 30% Net insurance servi
Slide 51: IFRS 17 implementation; Adjusted Balance Sheet as at 31 December 2022
IFRS 17 implementation; Adjusted Balance Sheet as at 31 December 2022 31.12.2022 IFRS 17 31.12.2022 Assets (€ mn) (IFRS 4) adjustments (IFRS 171) Cash and balances with central banks 9,567 - 9,567 Loans and advances to banks 205 - 205 Debt securities, treasury bills and equity investments 2,704 - 2,
Slide 52: IFRS 17 implementation; adjusted FY2022 Income Statement
IFRS 17 implementation; adjusted FY2022 Income Statement FY2022 FY2022 € mn IFRS 17 adjustments IFRS 4 IFRS 171 Net Interest Income 370 - 370 Net fee and commission income 192 - 192 Net foreign exchange gains and net gains/(losses) on financial instruments 36 (10) 26 Net insurance result2 71 (27) 44
Slide 53: 2022 Quarterly Income Statement adjusted under IFRS 17
2022 Quarterly Income Statement adjusted under IFRS 171 1Q2022 2Q2022 3Q2022 4Q2022 € mn IFSR 4 IFSR 17 IFSR 4 IFSR 17 IFSR 4 IFSR 17 IFSR 4 IFSR 17 Net Interest Income 71 71 74 74 89 89 136 136 Net fee and commission income 44 44 50 50 48 48 50 50 Net foreign exchange gains and net gains/(losses) o
Slide 54: IFRS 17 implementation; adjusted FY2022 Key Performance Ratios
IFRS 17 implementation1; adjusted FY2022 Key Performance Ratios FY2022 FY2022 Key Performance Ratios IFRS 4 IFRS 171 Change Cost to income ratio 54% 55% +1 p.p. Cost to income ratio excluding special levy on 49% 49% - deposits and other levies/contributions Operating profit return on average assets
Slide 55: Additional asset quality slides
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Additional asset quality slides 55
Slide 56: 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 €9.90 bn € bn Housing Other Private 3.79 0.67 4.46 Individuals Hotels & 1.20 Catering Real Estate 1.11 Trade 0.90 Private individuals Private individuals Business LTV2 housing other Pro
Slide 57: 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 10,278 1,240 1,215 947 974 3,741 3,788 Retail other 3,542 3,559 Retail Housing 1,198 1,161 1,119 1,096 SMEs 648 754 685 668 International corporate Corporate and Large Corporate 4,029 3,995 3,924 3
Slide 58: €22 mn net organic NPE reduction in 1Q2023
€22 mn net organic NPE reduction in 1Q2023 Net organic -96 -74 -133 -57 -22 outflows (€ mn) Inflows (€ mn) 19 20 New inflows 5 13 1 10 7 17 Redefaults 7 13 1 7 Unlikely to pay 5 1 2 1 5 2 1 1 • €32 mn organic NPE outflows in 1Q2023, 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 leading to €22 mn net organic NP
Slide 59: 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 10,913 10,217 10,278 792 Stage 1 7,529 84 Dec 21 Sep 22 Dec 22 Mar 23 7,905 7,970 8,075 78% 54 610 89 48 Stage 1 1.1% 1.1% 1.1% 1.0% 282 282 Stage 2 1,
Slide 60: Stage 2 exposures well collateralised with low migration history
Stage 2 exposures well collateralised with low migration history € mn 1,814 3.2% Limited historic migration of Stage 2 to Stage 3 Trade 153 7.5% Of which: Real estate 162 • €794 mn (43%) Performing Forborne • Strong performance of Stage 2 exposures; 99% 2.6% Other 196 • €550 mn (30%) Overlays • €309
Slide 61: Asset quality - NPE analysis
Asset quality - NPE analysis (€ mn) Mar-23 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 10,200 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 78 86 1
Slide 62: 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 Mar 23 % of total 9% 4% 12% 5% 11% 46% 6% 7% 5.10 5.08 5.06 5.06 4.71 4.70 1.30 1.23 1.22 1.21 1.20 1.19 1.18 1.18 1.18 1.14 1.13 1.12 1.04 1.03 1.02 1.02 0.93 0.92 0
Slide 63: Rescheduled Loans
Rescheduled Loans1 Rescheduled loans1 - Asset Quality Rescheduled loans1 by customer type (€ bn) 31 March 2023 € mn 1.68 1.58 1.51 Stage 1 - 0.43 0.37 0.34 1.25 Stage 2 777 0.17 0.15 0.14 0.18 1.01 Stage 3 201 0.17 0.14 0.06 0.01 0.01 0.01 0.13 0.11 0.17 0.08 0.05 POCI 31 0.90 0.91 0.89 0.90 FVPL -
Slide 64: REMU - decline of foreclosed assets inflows and sales
REMU - decline of foreclosed assets inflows and sales record positive results €1.82 bn sales of 4,018 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 # 138 1,116 2 (4
Slide 65: 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 €43 mn organic sales3 in 1Q2023; comfortably above Book Value BV € mn 107% 106% 125% 102% Legacy 2016 2017 2018 2019 2020 2021-23 91% 96% 93% 88% 11 113 401 161 127 87 70 91 1,050 7
Slide 66: Glossary & Definitions
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Glossary & Definitions 66
Slide 67: 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. Comprise mainly (a) fee
Slide 68: 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 69: 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 70: 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 71: Glossary & Definitions
Glossary & Definitions Non-legacy (performing) Relates to all business lines excluding Restructuring and Recoveries Division (“RRD”), REMU and non-core overseas exposures. Phased-in Capital Conservation In accordance with the legislation in Cyprus which has been set for all credit institutions, the
Slide 72: 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