Bank of Cyprus Holdings PLC · CSECY:BOCH
Bank of Cyprus — H1 2022 Earnings Presentation
78 slides from Bank of Cyprus's earnings presentation, Aug 31, 2022
Slide 1: Group Financial Results for the six months ended 30 June 2022
Bank of Cyprus Group Group Financial Results For the six months ended 30 June 2022
Slide 2: Disclaimer
DISCLAIMER The financial information included in this presentation including the interim Condensed Consolidated Financial Forward Looking Statements Statements for the six months ended 30 June 2022 has not been audited by the Group’s external auditors. This document contains certain forward-looking
Slide 3: Irish Takeover Rules
IRISH TAKE OVER RULES In accordance with Rule 26.1 of the Irish Takeover Rules, a copy of this Investor Presentation will be available on the Responsibility Statement Company's website at https://www.bankofcyprus.com/en-gb/group/investor-relations/possible-offer/ by no later than 12.00 (noon) (Irish
Slide 4: Irish Takeover Rules (continued)
IRISH TAKE OVER RULES (continued) Disclosure tables, giving details of the companies in whose 'relevant securities' 'opening positions' and 'dealings' should Profit Forecast / Asset Valuations / Quantified Financial Benefit Statement be disclosed, can be found on the Irish Takeover Panel's website a
Slide 5: 1H2022 Financial Results
1H2022 Financial Results 5
Slide 6: 1H2022 Key messages
1H2022 Key messages €1.2 bn €59 mn €154 mn Strong New Lending Healthy Profit after tax and before Non-NII non-recurring items Trends in line Building net performing loan book1 at €9.7 bn, up 4% in 1H2022 Underlying ROTE of 7.3% converging representing 51% of total income to ROTE>10% 4 2 €33 mn 14.2%
Slide 7: 1H2022 - Highlights
1H2022 - Highlights Resilient economic • 6.1%1 GDP growth in 2Q2022; expected to grow by over 5%1 in 2022, outperforming wider Euro area • Strong new lending of €1.2 bn, up 30% yoy and ahead of pre-pandemic levels outlook • 4% growth in net performing loan book2 in 1H2022 • Profit after tax before n
Slide 8: Improved near-term guidance on faster rate rises: ROTE>10% in 2023
Improved near-term guidance on faster rate rises: ROTE>10% in 2023 Net interest income now rising FY2022 Guidance FY2023 Guidance • Well positioned to benefit from further rate rises • Loans and liquids repricing faster than funding costs 2022 NII at c.€320 mn, up 8% 2023 NII up c.€100-€120 mm, up y
Slide 9: Cypriot economy proves resilient and adaptable to external shocks
Cypriot economy proves resilient and adaptable to external shocks GDP grew by 6.1% in 2Q2022 Quarterly Real GDP qoq % change Annual Real GDP yoy % change 14.6% • GDP expected to grow by over 5%1 in 2022 and by c.2.8%2 in 2023, 13.4% 5.5% 5.4% >5.0% outperforming wider Euro area 6.0% 6.1% 2.6% 2.8% 5
Slide 10: Labour market conditions further improved while inflation has picked up
Labour market conditions further improved while inflation has picked up Unemployment Unemployment rate at 6.6% in 1Q2022 (6.8% Euro area) • Unemployment reduced to 6.2% in 1Q2022 from 6.6% in 4Q2021 and 8.2% in Quarterly Unemployment rate (%) (seasonally adjusted) 2Q2021, attributed mainly to accomm
Slide 11: Strong new lending of €1.2 bn in 1H2022 up 30% yoy
Strong new lending of €1.2 bn in 1H2022 up 30% yoy New lending of €537 mn in 2Q2022 back to pre-pandemic levels Net performing4 book up 4% to €9.7 bn € mn Net loans € bn +30% +4% 1,111 1,159 622 152 9.38 9.72 194 894 8.94 9.00 548 104 537 0.63 0.73 48 63 156 407 496 3.80 498 3.70 31 258 238 395 199
Slide 12: Profitability
Profitability 12
Slide 13: Income Statement
Income Statement QoQ Performance (2Q2022 vs 1Q2022) € mn 1H2022 1H2021 2Q2022 1Q2022 qoq% yoy% • NII up 4% reflecting growth of net performing book5 and loan yields Net Interest Income 145 152 74 71 4% -4% improvement in line with rising interest rate environment Non interest income 154 136 79 75 6%
Slide 14: Quarterly NII bottomed out; reverting to growth
Quarterly NII bottomed out; reverting to growth NII of €74 mn for 2Q2022 Effective yield on assets & cost of funding NII (€ mn) 76 71 73 71 74 NIM (bps) 149 134 134 132 133 Interest income 1 86 83 85 84 Performing Legacy Liquids Cost of funding 4 81 6 6 4 3 4 Liquids 10 2 3 4 5 8 7 5 Helix 2 & 3 660
Slide 15: Liquid balance sheet positively geared to higher interest rates
Liquid balance sheet positively geared to higher interest rates 1 Cash and balances with Central Banks of €9.91 bn, of which €3 bn TLTRO 25.84 25.84 • ECB depo rate rises benefit to be booked immediately Other assets 2.25 1.24 Other (including HFS) 1.15 2.09 • c.€12 mn4 benefit in 2H2022 from the 50
Slide 16: Rising interest rates enabling faster NII growth
Rising interest rates enabling faster NII growth Immediate benefit Loan repricing sensitivity ECB Deposit rate 3m Euribor rate BOC Base rate ECB MRO rate 2 BOC business plan (Feb 2022) Market/BOC Expectations May 2022 Market/BOC Expectations Aug 20223 1.30% 1.75% 1.5% 2.0% 3.2% 2.0% 1.65% 2.0 1.00%
Slide 17: Net interest income positively geared to higher interest rates
Net interest income positively geared to higher interest rates NII sensitivity to parallel shift in interest rates (annualised), over and Key simplifying assumptions above uplift potential of c.€100-€120 mn • An instantaneous and sustained parallel movement in EUR and USD interest rates Y1 +50bps +1
Slide 18: Deposits at €18.5 bn up 4% qoq; significant liquidity surplus of €6.7 bn
Deposits at €18.5 bn up 4% qoq; significant liquidity surplus of €6.7 bn Cyprus deposits by passport origin2 € bn 18.45 18.45 17.53 17.66 16.53 5% IBU1 3.67 6% 5% Cyprus Corporate 2.42 14% Other EU Other countries Deposits Other European countries, excl. Russia Retail 11.45 70% Russia/Belarus/Ukrain
Slide 19: Conducive conditions for fixed income portfolio expansion going forward
Conducive conditions for fixed income portfolio expansion going forward Fixed income securities per portfolio category - NBV Fixed income securities per issuer type - NBV % assets 8% 7% 7% (€ mn) (€ mn) 1,925 1 1,925 1,908 1,855 1,908 1,855 40 50 3% FVTPL 1 1 Other financial & 35 0 non-financial cor
Slide 20: Recurring non interest income at €67 mn in 2Q2022
Recurring non interest income at €67 mn in 2Q2022, above pre-pandemic levels Non-NII % of Total Income 52% 44% 50% 49% 53% 51% 51% F&C % of Total Income • Total non interest income of €79 mn for 2Q2022 22% 28% 30% 32% 28% 30% 33% representing 51% of total income • Net fee and commission income for 2
Slide 21: Profitable Life Insurance business
Profitable Life Insurance business - valuable and sustainable contribution to the Group € mn 1H2022 1H2021 yoy% 13% 18% GWP2 73.5 65.3 12% contribution contribution 25% to non to the Market Net reinsurance cost (10.2) (9.7) 5% interest Group’s share3 Net impact of interest rate 2.3 (2.4) -193% PBT i
Slide 22: Profitable Non-Life Insurance business
Profitable Non–Life Insurance business – valuable and sustainable contribution to the Group 8% 9% contribution contribution 13% € mn 1H2022 1H2021 yoy% to non to the Market interest Group’s share2 Insurance income 36.5 32.2 14% income PBT (of which GWP1) 32.1 29.7 8% Costs and claims (23.3) (19.4) 2
Slide 23: Leading card processing business in Cyprus
Leading card processing business in Cyprus 9% 9% contribution contribution 85% € mn 1H2022 1H2021 yoy% to non to the Market Net fee and commission 12.2 9.7 26% interest Group’s share1 income income PBT Other income 2.5 0.8 200% FX and net losses on (0.2) 0.8 - revaluation of investment • Market lead
Slide 24: Tight cost management of workforce and branches offsets inflation pressures
Tight cost management of workforce and branches more than offsets elevated inflation pressures Substantial streamlining of workforce and branches Total operating expenses1 up 2% qoq (€ mn) 66% 75% 79% 80% 5,000 96 100 89 89 87 86 87 -16% 84 80 4,000 75 38 38 80 37 36 37 60 3,000 60 2,000 4,155 3,573
Slide 25: Leverage leading Digital Capabilities to serve customers and the economy
Leverage leading Digital Capabilities to serve customers and the economy Digital Transactions ratio Leader in shaping the digital transformation of local economy Jul 20191 Jul 20211 Jul 2022 73.7% 87.3% 93.0% Digitally Engaged Customers Jul 2019 Jul 2021 Jul 2022 66.9% 77.4% 79.9% Average mobile log
Slide 26: Capital, Liquidity & Asset Quality
Capital, Liquidity & Asset Quality 26
Slide 27: Pro forma for HFS and VEP, CET1 at 14.2% and Total Capital ratio at 19.3%
Pro forma for HFS and VEP, CET1 at 14.2% 1,4 and Total Capital ratio at 19.3%1,4 min OCR (SREP) requirement for 20223 19.3% 2.9% 14.6% (0.3%) 14.6% 14.2% 2.2% 0.6% (0.1%) (0.2%) 0.6% (1.0%) 15.0% 10.1% 10.1% 6 CET1 Operating Provisions and RWAs Other CET1 Held for Sale VEP CET1 30 Jun AT1 T2 Total C
Slide 28: Interim MREL requirement of 1 January 2022 achieved
Interim MREL requirement of 1 January 2022 achieved MREL (% of RWAs) 23.74% as at 31 Dec 2025 • MREL ratio as % of RWAs at 18.47%1 as at 30 June 2022 pro forma for HFS and VEP 18.47% Interim requirement 14.94% as at 1 Jan 2022 • MREL ratio as % of Leverage Ratio Exposure (LRE) of 9.28% as at 30 June
Slide 29: NPE ratio reduced to 5.7%; Coverage at 59%
NPE ratio reduced to 5.7%; Coverage at 59% 1.4 NPE reduced to €0.6 bn in 2Q2022 Residual NPEs comprises mainly Retail • Helix 3 (€0.6 bn) 1.2 (€ bn) • Sinope (c.€12 mn) 3.1 • Organic reduction (€170 mn) 1.0 0.8 1 -55% 0.60 Re-performing NPEs 0.6 1.3 0.13 Retail 1.2 1.2 0.4 SME 0.6 0.26 1.2 0.2 Corpo
Slide 30: €74 mn net organic NPE reduction in 2Q2022
€74 mn net organic NPE reduction in 2Q2022 Net organic -112 -131 -98 -96 -74 outflows (€ mn) • €93 mn organic NPE outflows in 2Q2022, Inflows (€ mn) leading to €74 mn net organic NPE reduction 19 17 14 5 New inflows 11 1 • Additional €5 mn net NPE reduction in 2Q2022 13 6 7 Redefaults 7 1 relating t
Slide 31: 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 10,964 11,047 10,477 Jun 22 7,799 Dec 21 Mar 22 Jun 22 pro forma Stage 1 7,529 7,753 792 7,799 74% 734 for HFS 84 677 54 85 52 83 51 Stage 1 1.1% 1.1%
Slide 32: Stage 2 exposures well collateralised with low migration history
Stage 2 exposures well collateralised with low migration history • Strong performance of Stage 2 exposures; 99% € mn 2,078 present no arrears Trade 191 2.4% Limited historic migration of Stage 2 to Stage 3 • Only 2% of stage 2 loans migrated to Stage 3 p.a. Real estate 242 2.7% 2.4% in the last two
Slide 33: Cost of risk of 41 bps for 2Q2022
Cost of risk of 41 bps for 2Q2022 1.18% Bank’s IFRS 9 Macroeconomic assumptions 0.43% Base line GDP rate Unemployment rate 0.57% 0.61% 0.21% 0.43% 2022 2.7% 6.2% 0.75% 0.61% 0.40% 2023 3.0% 6.3% (0.04%) FY2020 FY2021 1H2021 1H2022 bps 52 78 35 44 41 • Cost of risk of 41 bps for 2Q2022 (€11 mn) inclu
Slide 34: REMU: Asset disposals recovering towards pre-pandemic levels
REMU: Asset disposals recovering towards pre-pandemic levels Sales of €99 mn in 1H2022 €99 mn organic sales in 1H2022; comfortably above Book Value Sales € mn (contract prices1) #258 # 373 110% 104% 120% 109% # 170 # 387 89% 95% 92% 87% 110 99 85 Organic 19 sales 19 27 99 61 1H2019 1H2020 1H2021 1H2
Slide 35: Medium-term strategic targets
Medium-term strategic targets 35
Slide 36: Delivering on our priorities
Delivering on our priorities Priorities set in 2020 What we have achieved since then… Complete de-risking while managing post-pandemic NPE inflow ✓ 81% NPE reduction (organic and inorganic); NPE ratio approaching 5% on track with 2022 target Deliver sustainable profitability ✓ Medium-term ROTE targe
Slide 37: Upgrades to medium term guidance on strong performance and changing macro dynamics
Upgrades to medium term guidance on strong performance and changing macro dynamics Medium Term target set in: November 2020 February 2022 May 2022 August 2022 2024 Targets 2025 Targets 2025 Targets 2025 Targets Return on Tangible Profitability Equity1 c.7% in 2024 >10% in 2025 >10% from 2024 >10% fr
Slide 38: Key Information and Contact Details
Key Information and Contact Details Contacts Credit Ratings Standard & Poor’s Global Ratings: Investor Relations & ESG Long-term Issuer Credit Rating: Affirmed at "B+" on 28 June 2022 (positive outlook) Tel: +35722122239, Email: investors@bankofcyprus.com Short-term Issuer Credit Rating: Affirmed at
Slide 39: Appendix: Environmental Social Governance
APPENDIX Environmental Social Governance 39
Slide 40: ESG strategy - Lead the transition to a Sustainable Future
ESG strategy - Lead the transition to a Sustainable Future Robust Infrastructure • Set-up of dedicated Executive Committee to oversee ESG agenda • Formulation of dedicated workgroups to ensure delivery • Launch of ESG Targets • Improvement of MSCI ESG rating: AA rating assigned to BOCH Carbon neutra
Slide 41: Organisational resilience & ESG agenda
Organisational resilience & ESG agenda: driving the transition to a sustainable future Driving improvements in social and governance pillars and increasing focus on the environmental pillar, by transforming not only its operations but also its client chain BOC Oncology centre • Initiation of decarbo
Slide 42: Appendix: Macroeconomic overview
APPENDIX Macroeconomic overview 42
Slide 43: 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 7.1% increase in GDP for 2022-2026 €1.2 bn €1.1 bn from EU mechanism additional funds mobilised in Cyprus 2.5% increase in employme
Slide 44: Recovery and Resilience Facility Estimated Budget
Appendix- Recovery and Resilience Facility Estimated Budget Policy axis/ Component Estimated budget (€ mn) % of total estimated budget 1 Public Health and civil protection- lessons learnt from the pandemic 74.1 6.1% 1.1 Resilient and effective health system and enhanced civil protection 74.1 6.1% 2
Slide 45: 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 are expected to come from higher inflation and a exposure as at 30 Jun 2022 slowdown in activity, with tourism sector
Slide 46: Appendix: Additional asset quality slides
APPENDIX Additional asset quality slides 46
Slide 47: 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 €9.92 bn € bn Housing Other Private individuals Private individuals- Business LTV2 housing other €5.53 bn Private 3.70 0.69 4.39 €3.70 bn €0.69 bn Individuals <80% 88% 36% 69% Hotels &
Slide 48: Continuous progress on NPE reduction across all segments
Continuous progress on NPE reduction across all segments Focus shifts to Retail Jun 2022 Pro forma € mn Corporate NPE ratio 4.4% Dec 21 281 600 Inflows 14 NPE coverage 83% Exits (64) NPE total coverage 127% Jun 22 231 Corporate 187 HFS (20) €211 mn Pro forma 211 for HFS Jun 2022 Pro forma Terminated
Slide 49: Gross loans and NPEs by Customer Type
Gross loans and NPEs by Customer Type Gross loans by customer type (€ mn) 12,261 1,667 10,856 10,964 11,047 10,477 1,240 1,246 1,242 989 4,073 3,741 3,758 3,799 3,523 1,765 1,198 1,188 1,169 1,148 2,126 2,196 2,257 2,287 2,277 2,630 2,481 2,515 2,550 2,540 Dec 20 Dec 21 Mar 22 Jun 22 Jun 22 pro form
Slide 50: NPE Coverage and Total coverage by segment
NPE Coverage and Total coverage by segment Coverage and collateral maintained Tangible Collateral 1 Allowance for expected loan credit losses Large and International Corporate €155 mn SME €69 mn Retail-Housing €232mn Retail-Other €88 mn Total €600 mn corporate : €56 mn 187% 180% 175% 179% 57% 64% 63
Slide 51: Asset quality - NPE analysis
Asset quality- NPE analysis (€ mn) Jun-22 Mar-22 Dec-21 Sep-21 Jun-21 Mar-21 Dec-20 A. Gross Loans after Residual Fair value 10,902 10,815 10,678 10,683 10,708 12,055 12,031 adjustment on initial recognition Residual Fair value adjustment on initial recognition 145 149 178 181 185 226 230 B. Gross L
Slide 52: Analysis of gross loans and NPE ratio by Economic activity
Analysis of gross loans and NPE ratio by Economic activity Dec 20 Dec 21 Mar 22 Jun 22 Jun 22 pro forma for HFS Gross loans by economic activity (€ bn) % of total 9% 4% 11% 6% 11% 46% 7% 6% 5.83 5.10 5.06 5.06 4.71 1.30 1.27 1.23 1.22 1.20 1.19 1.19 1.18 1.18 1.18 1.17 1.04 1.03 1.02 0.97 0.89 0.80
Slide 53: Balance sheet de-risking results in a smaller but safer loan book
Balance sheet de-risking results in a smaller but safer loan book Net Loans: Performing1 vs Legacy Interest Income on Loans: Performing1 vs Legacy € bn € mn 15.62 36% 5.64 10.73 10.36 10.37 82 79 81 10.06 10.23 10.12 77 77 77 1.79 1.36 0.68 0.66 0.63 0.40 4% 17 10 9 5 10 9 64% 9.98 9.38 9.57 9.74 9.
Slide 54: Risk adjusted yield will rise as Legacy book reduces
Risk adjusted yield will rise as Legacy book reduces Performing1 Legacy Group 1H2022 1H2022 1H2022 Interest Income on loans • Performing1 Book is expected to grow and to 140 18 158 increasingly drive Group results (€ mn) (pre FTP) Loan credit losses (€ mn) (6) (18) (23) • Legacy book revenues predom
Slide 55: Rescheduled Loans
Rescheduled Loans1 Rescheduled loans1-Asset Quality Rescheduled loans1 by customer type (€ bn) 30 Jun 2022 € ‘000 2.73 Stage 1 - 0.97 2.09 Stage 2 819,933 1.68 1.64 1.58 Stage 3 491.521 0.81 0.44 0.43 0.39 0.37 POCI 53,714 0.36 0.17 0.16 0.15 0.53 0.17 0.15 0.14 FVPL 212,365 0.34 0.41 0.51 0.52 0.52
Slide 56: REMU - decline of foreclosed assets inflows and sales record positive results
REMU- decline of foreclosed assets inflows and sales record positive results Evolution of properties managed by REMU Sales € mn (contract prices1) Group BV (€ mn) # 99 # 331 # 575 # 5792 # 492 # 1,1302 # 373 1,215 26 Sales €1.69 bn (87) 1,146 1,146 (8) 65 77 505 260 24 330 160 246 238 249 179 100 34
Slide 57: 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 Cumulative sales by property type; 38% of sales relate to land BV € mn Sales contract price 6% Legacy 2016 2017 2018 2019 2020 2021-22 10% Land 38% Commercial 152 438 203 146 94 76 3
Slide 58: Appendix: Additional financial information
APPENDIX Additional financial information 58
Slide 59: Consolidated Balance Sheet
Consolidated Balance Sheet % % Assets (€ mn) 30.06.2022 31.12.2021 change Liability and Equity (€ mn) 30.06.2022 31.12.2021 change Cash and balances with Central Banks 9,905 9,231 7% Deposits by banks 492 457 8% Loans and advances to banks 312 292 7% Funding from Central Bank 2,955 2,970 0% Debt sec
Slide 60: Balance sheet composition
Balance sheet composition Total assets Total equity & liabilities € bn € bn 25.84 25.84 25.12 25.12 Other assets 2.25 1.24 Other 2.26 1.27 (including HFS) 2.09 Equity 1.15 2.09 REMU properties 1.17 0.40 0.61 0.43 0.61 Wholesale AIEA Mix 2.96 Legacy net loans 2.96 Funding from 2Q2022 0.49 Central Ban
Slide 61: Risk Weighted Assets - Regulatory Capital
Risk Weighted Assets– Regulatory Capital Risk Weighted Assets by Geography (€ mn) Reconciliation of Group Equity to CET1 30.06.22 € mn 30.06.22 Pro 31.12.19 31.12.20 31.12.21 31.03.22 30.06.22 forma Total equity 2,093 for HFS Cyprus 12,678 11,477 10,595 10,473 10,526 10,186 Less: Intangibles (30) Un
Slide 62: Pro forma for HFS, RWA intensity reduced to 40%
Pro forma for HFS, RWA intensity reduced to 40% RWAs reduced to €10,260 mn as at 30 June 2022 pro forma for HFS Jun 22 Pro RWAs Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Mar 22 Jun 22 forma for HFS € bn 19,666 18,865 17,260 15,373 12,890 11,636 10,694 10,559 10,600 10,260 RWA intensity decrea
Slide 63: Overall capital requirements
Overall capital requirements Overall capital requirements for 2021 and 2022 CET1 ratio Total capital ratio 15.01% 14.50% 1.25% 10.08% O-SII 1.00% 9.69% 2.50% 1.25% O-SII 1.00% CCB 1 2.50% 2.50% 3.26% CCB1 2.50% Pillar 2R 3.00% Pillar 2R 1.69% 1.83% Tier 2 2.00% 2.00% AT1 1.50% 1.50% Total 4.50% Pill
Slide 64: Buffer to MDA Restrictions Level & Distributable Items
Buffer to MDA Restrictions Level & Distributable Items1 CET1 Ratios 447 bps • No prohibition applies to the payment of coupons on any AT1 capital instruments 14.6% issued by the Company and the Bank • Significant CET1 MDA buffer as at 30 Jun 2022: 447bps (€473 mn) c.10.1% <0.1% Unfilled AT1 + T2 cap
Slide 65: Cypriot business
Cypriot business Loan market share at 41% in Jun 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% 38.3% 37.1% 38.8% 37.3% 37.5% 35.8% 35.4% 35.2% 36.0% 36.0% 35.1% 35.0% 34.8% 35.8% 36.8% 32.8% 35.3% 34.9% 34.9% 34.8
Slide 66: Income Statement bridge for 1H2022
Income Statement bridge1 for 1H2022 Underlying € mn NPE sales Other Statutory Basis basis Net interest income 145 - - 145 Net fee and commission income 94 - - 94 Net foreign exchange gains and net gains/(losses) on financial instruments 11 - (1) 10 Net gains/(losses) on derecognition of financial as
Slide 67: Income Statement
Income Statement € mn 2Q2022 1Q2022 qoq% Net Interest Income 74 71 4% Net fee and commission income 50 44 14% Net foreign exchange gains/(losses) on financial instruments 5 6 -3% Insurance income net of claims and commissions 17 16 1% Net gains from revaluation and disposal of investment properties
Slide 68: Analysis of Interest Income and Interest Expense
Analysis of Interest Income and Interest Expense Analysis of Interest Income (€ mn) 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 Loans and advances to customers 83 82 77 79 77 81 Loans and advances to banks and central banks 3 7 10 11 9 9 Investment at amortised costs 2 2 2 2 2 2 Investments FVOCI 3 3
Slide 69: Income Statement by business line for 1H2022
Income Statement by business line for 1H2022 Large and Consumer SME Corporate International Wealth & € mn International RRD REMU Insurance Treasury Other Total Banking Banking Banking Banking Markets corporate Net interest income/(expense) 44 14 28 31 10 - 16 (12) - 14 - 145 Net fee & commission inc
Slide 70: Income statement for insurance businesses for 1H2022
Income statement for insurance businesses for 1H2022 € mn 1H2022 € mn 1H2022 Gross written premiums (GWPs) 32.1 Gross written premiums (GWPs) 73.5 Reinsurance premium (17.0) Reinsurance premium (15.5) Change in provision for unearned premiums (0.3) Commissions from reinsurers and other insurance inc
Slide 71: Analysis of Deposits
Analysis of Deposits Deposits by Currency (€ bn) Jun 22 17.53 17.66 18.45 16.69 16.53 0.32 0.08 0.29 0.10 0.31 0.11 1.39 0.32 0.09 1.52 1.29 1.20 0.29 0.11 1.37 8% 2% Other Currencies 0% 15.01 14.93 15.74 15.86 16.53 GBP USD EUR 90% Dec 19 Dec 20 Dec 21 Mar 22 Jun-22 Deposits by Type (€ bn) 17.53 17
Slide 72: Appendix: Glossary & Definitions
APPENDIX Glossary & Definitions 72
Slide 73: 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 74: Glossary & Definitions
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 Digitally engaged customers ratio banking app, browser and ATMs) to perform
Slide 75: 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 sens
Slide 76: 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 balanc
Slide 77: 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 NPEs sales the reporting dates. Non-legacy (performing) Relates to all bus
Slide 78: 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