Bank Of Cyprus Holdings Plc · CSECY:BOCH
Bank Of Cyprus — FY2024 Earnings Presentation
86 slides from Bank Of Cyprus's earnings presentation, Mar 27, 2025
Slide 1: Group Financial Results for the year ended 31 December 2024
Bank of Cyprus Group Group Financial Results For the year ended 31 December 2024
Slide 2: Disclaimer
DISCLAIMER The financial information included in this presentation is not audited by the Group’s external auditors. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements can usually be identified by term
Slide 3: Table of Contents
Table of Contents Executive Summary – Updated Financial Targets 1. Executive Summary and Financial Targets 2. FY2024 Financial Performance 3. Capital, Liquidity & Asset Quality 4. ESG update 5. Appendix 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 • Fiscal discipline • 43.0%1 loan market share; 37.2%1 deposit market share • Sovereign rating; 3 notches above investment grade • Key players in
Slide 5: Strong Growth in 2024; Positive Prospects to Continue in 2025
Strong Growth in 2024; Positive Prospects to Continue in 2025 Outpacing Eurozone Average GDP growth of 3.4% for FY2024 Cyprus Public Debt to GDP below Euro area average Real GDP (yoy % change) As at 30 September 2024 2022: 7.4% 2023: 2.6% FY2024: 3.4% 158% 136% Expected to decrease 10.00% to 59%1 by
Slide 6: Strong Fiscal Position and Macro Trends Lead to Sovereign Upgrades
Strong Fiscal Position and Macro Trends Lead to Sovereign Upgrades Unemployment rate reduced to 4.9% for FY2024 Cyprus inflation at 2.3% for FY2024 Quarterly (%) (seasonally adjusted) FY2024: 4.9% 11.0% 2023 HICP: 3.9% 2024 HICP: 2.3% 2022: 6.3% 2023: 5.8% 9.0% 7.5% 6.6% 7.0% 7.0% 6.5% 6.3% 6.20% 7.
Slide 7: BOC is the Leading Provider of Banking and Broader Financial Products & Services in Cyprus
BOC is the Leading Provider of Banking and Broader Financial Products & Services in Cyprus Leading Banking Provider in a consolidated banking sector with a sustainable, diversified business model in other financial services €bn Loans1 Key market player in 75% stake #1 player Servicing in the #1 BOC
Slide 8: Successful Execution of Our Key Milestones in FY2024
Successful Execution of Our Key Milestones in FY2024 ✓ 50% payout ratio out of 2024 earnings1,2; 12% distribution yield3, above Eurozone average Distributions ✓ €400 mn cumulative distribution out of 2022-2024 earnings ✓ ROTE >20% for 2 consecutive years Profitability ✓ Profit after tax of >€500 mn
Slide 9: Accelerated Shareholder Value Creation in 2024
Accelerated Shareholder Value Creation in 2024 Strong ROTE >20% for 2 consecutive years on Delivered €400 mn cumulative distribution high capital base 30.00% 27.4% 27.6% 40.0% 25.00% 35.0% 30.0% 20.00% 15.00% 21.4% 25.0% 20.0% 10.00% 24.8% 15.0% 3% 9% 12% 3.2% 10.0% 5.00% 5.0% 0.00% 19.2% 0.0% 1.8%
Slide 10: 50% Payout Ratio in 2024; Upgrading Future Distributions to 50-70% Payout
50% Payout Ratio in 2024; Upgrading Future Distributions to 50-70% Payout Upgraded Distribution Policy starting from 2025 50% Material yoy increase in payout ratio and Payout total quantum; 12% distribution yield1 ratio 30-50% 50-70% payout3 payout3 €211 mn €241 mn c.2x increase in cash Cash dividen
Slide 11: FY2024 Targets Exceeded
FY2024 Targets Exceeded 2024 Targets FY2024 (August 2024) Net Interest Income c.€800 mn €822 mn ✓ Average ECB Depo rate 3.7% 3.7% Cost to Income Ratio1 <35% 34% ✓ NPE Ratio <3% 1.9%2 ✓ Cost of Risk c.40 bps 30 bps ✓ CET1 generation3 >300 bps 400 bps ✓ ROTE reported >19% 21.4% ✓ ROTE on 15% CET1 rati
Slide 12: 2025: High-teens ROTE on 15% CET1 and Upgrade of Distribution Policy to 50-70%
2025: High-teens ROTE on 15% CET1 and Upgrade of Distribution Policy to 50-70% 2025 Targets High-teens Mid-teens Maintain a strongly capitalised, very liquid and highly profitable Bank ROTE ROTE on 15% CET1 ratio on reported basis ECB deposit facility rate assumed to Manage current NII headwinds whi
Slide 13: 2025 NII Declining on Rate Cuts, Partially Mitigated by Loan Growth and Hedging Activity
2025 NII Declining on Rate Cuts, Partially Mitigated by Loan Growth and Hedging Activity Outlook Average ECB 0.1% 3.3% 3.7% 2.3% 2.1% • 2025 NII expected <€700 mn on the back of rate cuts and deposit rate slower repricing of deposits (€ mn) 822 • 2026 NII expected to stabilise over €650 mn 792 stabi
Slide 14: Loan Expansion Supports NII Growth in the Medium-Term
Loan Expansion Supports NII Growth in the Medium-Term2 Outlook Gross performing loan book to grow by 4% p.a.…. • Gross performing loan book to grow by c.4% p.a. (€ bn) Drivers 9.8 9.8 10.2 • Grow domestic loan portfolio in line with economic growth 1.0 4.6 • Economic growth estimated at c.3%1 p.a. f
Slide 15: Robust and recurring Non-NII: F&C a key driver of revenue growth
Robust and recurring Non-NII: F&C a key driver of revenue growth Net fee and commission income to growth by c.4% p.a. over the medium- Outlook term • Net fee and commission income to grow by c.4% p.a. over the medium-term1 170 181 177 159 144 Drivers Net fee and commission income growth supported by
Slide 16: Most Profitable Life and Non-Life Insurance in Cyprus with Further Growth Prospects
Most Profitable1 Life and Non-Life Insurance in Cyprus with Further Growth Prospects Well established, key market players +17% 2021-2023 premium income growth +10% 2021-2023 premium income growth CAGR Growing above Cyprus market (14%) CAGR Growing above Cyprus market (7%) Most Profitable Life and No
Slide 17: Maintain Cost Discipline Whilst Continuing Investing in the Business to Support Growth
Maintain Cost Discipline Whilst Continuing Investing in the Business to Support Growth Outlook Cost to income ratio1 to stand at c.40% in FY2025 • Focus on maintaining leading efficiency ratio among European banks of c.40% in a c.2% normalised rate 49% environment 34% c.40% 31% C/I ratio 1 Drivers F
Slide 18: FY2024 Financial Performance
Executive Summary – Updated Financial Targets 1. Executive Summary and Financial Targets 2. FY2024 Financial Performance 3. Capital, Liquidity & Asset Quality 4. ESG update 5. Appendix Appendix 18
Slide 19: FY2024 Highlights
FY2024– Highlights • Economic growth of 3.4% in FY2024; expected to continue to grow by c.3.3%1 in 2025 outpacing Euro area average Strong economic growth • Record new lending of €2.4 bn in 2024, up 20% yoy continues • Gross performing loan book at €10.2 bn up 4% yoy • NII at €822 mn up 4% yoy; 4Q20
Slide 20: 4Q2024 Snapshot
4Q2024 Snapshot 5.0% Gradual decline in NII as interest rates decrease Cost to income ratio1 at 38% due to seasonally higher expenses and 4.0% 4.0% lower revenues 3.7% 4.0% 4.0% 4.0% 3.7% 3.3% 3.1% 4.0% 3.9% 3.8% 3.7% 38% 3.0% 3.4% 3.2% 34% 35% 2.8% 32% 32% 2.0% 220 30% (€ mn) 2.3% 214 213 207 204 2
Slide 21: Income Statement
Income Statement € mn FY2024 FY2023 yoy% 4Q2024 3Q2024 qoq% Net Interest Income 822 792 4% 198 204 -3% Non-interest income 272 300 -9% 68 75 -9% Total income 1,094 1,092 0% 266 279 -4% Total operating expenses1 (367) (341) 8% (101) (99) 3% Operating profit 688 708 -3% 152 173 -12% Provisions and imp
Slide 22: Highly Liquid Balance Sheet Being Positioned for Lower Rates
Highly Liquid Balance Sheet Being Positioned for Lower Rates (€ bn) 26.48 26.48 Other assets 1.92 Other 1.47 REMU repossessed 0.66 properties Equity (incl AT1) 2.83 • 24%1 linked with Bank’s base rate (‘natural 2024 MREL requirement already achieved with hedging’ of time & notice cost of deposits) W
Slide 23: Net Interest Income Remained Strong in FY2024 Supported by High Rates and Liquidity
Net Interest Income Remained Strong in FY2024 Supported by High Rates and Liquidity NII at €198 mn; NIM at 334 bps Effective yield on assets & cost of funding 400 390 400 370 352 Performing loans Cost of deposits 2 NIM1(bps) 334 1 1 Liquid assets Cost of wholesale funding +4% 300 yoy (bps) 200 792 8
Slide 24: Hedging Actions Since 2023 Reduce NII Sensitivity
Hedging Actions Since 2023 Reduce NII Sensitivity NII sensitivity to parallel shift in interest rates (annualised)5 Hedging Dec 2023 Dec 2024 (€ bn) Receive fixed IRSs1 -100 bps Dec 2022 Dec 2023 Dec 2024 - 2.91 on non-maturing deposits Average yield 2.9% EUR -€126 mn -€110 mn -€83 mn Receive fixed
Slide 25: Deposits up 6% yoy; Stable Deposit Mix and Resiliently Low Cost of Deposits
Deposits up 6% yoy; Stable Deposit Mix and Resiliently Low Cost of Deposits Deposits at €20.5 bn up 6% yoy; mix at 33% flat qoq Cost of deposits at 0.34%1 in 4Q2024 € bn +6% 24 29 34 37 34 Cost of deposits (bps) 19.7 20.0 20.5 19.3 19.3 101 108 102 6.7 33% 110.0 87 6.2 32% 6.3 33% 6.4 33% 6.6 33% 90
Slide 26: Record New Lending at €2.4 bn
Record New Lending at €2.4 bn New lending at €727 mn in 4Q2024 up 51% qoq Gross performing book2 up 4% yoy € mn € bn +20% +4% 2,435 10.04 10.16 9.80 9.78 0.69 0.76 0.83 0.96 396 2,025 223 727 3.83 3.69 3.70 3.62 1,017 676 865 64 194 551 481 0.96 0.96 0.98 462 73 1.04 227 66 358 65 0.89 0.95 1.03 1.0
Slide 27: Fixed Income Portfolio up 19% yoy, Representing 16% of Total Assets
Fixed Income Portfolio up 19% yoy, Representing 16% of Total Assets Fixed income securities per category - NBV Fixed income securities per issuer type - NBV to increase to: % assets1 14% 15% 15% 16% 16% • c.18% in 20252 (€ mn) • c.20% in the medium-term2,3 +19% (€ mn) 4,212 4,212 4,061 4,061 3,828 2
Slide 28: Non-NII at €272 mn in FY2024
Non-NII at €272 mn in FY2024 (€ mn) 292 300 13 10 272 43 50 5 47 76 75 22 3 3 66 1 68 Net fee & commission 54 63 44 46 11 1 17 12 Net insurance result 1 8 3 16 10 10 13 12 11 Non-recurring items 1 214 235 223 62 52 57 57 57 FX and other income 2 170 181 177 3 46 42 44 45 46 REMU Recurring income -1
Slide 29: Profitable Life Insurance Business - Valuable and Sustainable Contribution to the Group
Profitable Life Insurance Business - Valuable and Sustainable Contribution to the Group Net insurance result Recurring PAT1 (€ mn) (€ mn) 10% 5% 20% 32.4 27.4 28.7 28.5 23.9 25.5 Contribution Contribution ROE to Group to non-NII PAT 31.5 -3.0 FY2022 FY2023 FY2024 FY2022 FY2023 FY2024 Impact from mod
Slide 30: Profitable Non-Life Insurance Business - Valuable and Sustainable Contribution to the Group
Profitable Non–Life Insurance Business - Valuable and Sustainable Contribution to the Group Net insurance result Recurring PAT1 (€ mn) (€ mn) 7% 3% 20.6 16.2 16% 18.9 14.7 Contribution 16.9 12.0 Contribution ROE to Group to non-NII PAT FY2022 FY2023 FY2024 FY2022 FY2023 FY2024 High market share in a
Slide 31: Leading Card Processing and Payment Solutions Business in Cyprus
Leading Card Processing and Payment Solutions Business in Cyprus Strong transaction growth in value; up 14% yoy Value of transactions (€ mn) 13% 23% 81% +14% 15,901 Market Contribution ROE 14,003 share1 11,830 to non-NII 9,112 7,678 7,735 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 • Recurring PAT2 do
Slide 32: Leveraging on Digital Offerings to Enhance Group's Sales and Customer Experience
Leveraging on Digital Offerings to Enhance Group’s Sales and Customer Experience Increased use across all digital channels Boost in digital sales, both in banking and insurance business As at 31 Dec 24 New digital loans & Quickloans1 Non-life insurance digital sales € mn (€’000) +48% +2% 480 k 447 k
Slide 33: JINIUS; Leader in Shaping the Digital Local Economy
JINIUS; Leader in Shaping the Digital Local Economy Business-to-Business (B2B) services Business-to-Consumer (B2C) services • Tenders management • Launched in February 2024 • Ecosystem management • Product Marketplace • Invoicing management (Fashion, Technology, Beauty, Small appliances etc.) • Remi
Slide 34: FY2024 Cost to Income Ratio Remains Low at 34% on the Back of Strong Revenues
FY2024 Cost to Income ratio1 Remains Low at 34% on the Back of Strong Revenues Total operating expenses1 up 8% yoy and 3% qoq +8% (€ mn) 400 367 1.0 38% • Staff costs up 6% yoy due to salary increments, higher cost-of- 32% 35% 350 341 29% living adjustments (COLA) and employer’s contributions 0.8 30
Slide 35: Cost of Risk at 30 bps in FY2024
Cost of Risk at 30 bps in FY2024 Cost of risk Bank’s IFRS 9 macroeconomic assumptions 0.62% Base line GDP rate Unemployment rate 0.44% 2024 3.7% 4.8% 0.30% 2025 3.0% 4.5% FY2022 FY2023 FY2024 • Cost of risk of 30 bps (€30 mn) in FY2024 down 32 bps yoy, reflecting the continued robust performance of
Slide 36: Capital, Liquidity & Asset Quality
Executive Summary – Updated Financial Targets Capital, Liquidity & Asset Quality Appendix 36
Slide 37: Robust Capital Position: CET1 at 19.2% on a 50% Payout Ratio
Robust Capital Position: CET1 at 19.2% on a 50% Payout Ratio • CET1 ratio at 19.2%1 net of the proposed distribution at 50% Regulatory capital ratios 23.3% 23.7% 24.0% payout ratio 22.4% 22.0% 20.4% 20.7% 20.4% • CET1 generation3 of 400 bps in FY2024 19.3% 18.6% 19.2% 18.3% 17.4% 17.1% 15.2% 15.6% 1
Slide 38: Asset Quality: NPE Ratio at <2.0% and Limited NPE Inflows
Asset Quality: NPE Ratio1 at <2.0% and Limited NPE Inflows NPEs1 down 18% qoq to c.€200 mn; fully covered 130% NPE ratio further reduced to 1.9%1 111% 110% 96% 85% 90% 73% 77% NPE coverage 70% 4% 3.6% 3.4% 50% (€ mn) 365 2.8% 30% 347 3% 2.4% 294 247 1.9% 201 201 2% NPEs 74 7 17 1% 103 1 0% 1 Dec 23
Slide 39: REMU Stock at €660 mn; on Track to Achieve 2025 Target of c.€500 mn
REMU Stock at €660 mn; on Track to Achieve 2025 Target of c.€500 mn REMU stock reduced to €660 mn; carried out at a conservative value Organic sales1 consistently close to Open Market Value; comfortably above Book Value BV 2.0 to OMV 80% 80% 76% 72% 112% 111% 112% 111% 106% 102% 1.5 -€202 mn 94% 1.1
Slide 40: Our Priorities Going Forward
Our Priorities Going Forward Leveraging on BOCH’s strengths • Leading financial Hub • Diversified business model • Strong domestic franchise • Strong digital infrastructure • Holistic offering • Long lasting relationships Capital and Shareholder Returns Growth Initiatives • Provide attractive return
Slide 41: BOC Rated at Investment Grade by all Credit Rating Agencies
BOC Rated at Investment Grade by all 3 Credit Rating Agencies Moody’s affirmed rating to Baa1 in December 2024; outlook positive S&P upgraded rating to BBB- in February 2025; outlook stable A3 8 A3 A- 8 A- Baa1 Baa1 BBB+ Baa2 7 BBB 7 Baa3 Investment grade BBB- Investment grade BBB- Ba16 BB+ 6 Ba2 BB
Slide 42: Key Information and Contact Details
Key Information and Contact Details Contacts Investor Relations & ESG Executive Director Finance Tel: +357 22 122239, Email: investors@bankofcyprus.com Eliza Livadiotou, Tel: +35722 122128, Email: eliza.livadiotou@bankofcyprus.com Annita Pavlou Manager Investor Relations & ESG Tel: +357 22 122740, E
Slide 43: ESG update
Executive Summary – Updated Financial Targets ESG update https://www.bankofcyprus.com/globalassets/csr/sustainability-reports/j-03688-2024-boc-csr-sustainability-report- redesign-english-final-res.pdf Appendix 43
Slide 44: Key ESG Milestones achieved in 2024
Key ESG Milestones achieved in 2024 • Successfully issued the first Green bond (€300 mn) in 2Q2024; eligible for inclusion in Green Bond Dataset of Climate Bond Initiative • Published the first Sustainability Statement in accordance with ESRS1 • Gross loans, financing or collateralised by properties
Slide 45: 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 46: Delivering on our ESG Commitments
Delivering on our ESG Commitments Stakeholder ESG Priorities in 2025 SDG • Set additional decarbonisation targets on loan and investment portfolios based on methodologies and data available • Enhance ESG disclosures to ensure transparency against the ESG performance by publishing the first Corporate
Slide 47: Delivering on our ESG Commitments
Delivering on our ESG Commitments Bank’s performance against baseline of 2021: Climate Stability - Target 1: Reducing Scope 1 & Scope 2 GHG emissions by 42% by 2030 compared to 2021 baseline • c. 1% yoy decrease in Scope 1 and Scope 2 GHG emissions in 2024 (42%) (11%) (25%)1 (25%) Base GHG Emissions
Slide 48: Delivering on our ESG Commitments
Delivering on our ESG Commitments Climate Stability – Target 3: Increase portfolio of environmentally friendly loans Climate Stability - Target 4: Increase utilisation of renewable Gross loans (€ mn) energy in own operations 42% 780.1 528.2 451.8 Renewable energy 247,653 352,653 (kWh) 294.8 270.1 22
Slide 49: Delivering on our ESG Commitments
Delivering on our ESG Commitments Financial Inclusion and Resilience - Target 7: Continue supporting start-ups Health and Safety - Target 8: Contribute and support cancer patients and their under The IDEA1 Innovation Center families through the Bank of Cyprus Oncology Centre The IDEA Innovation Cent
Slide 50: Delivering on our ESG Commitments
Delivering on our ESG Commitments Education - Target 11: Provide upskilling/reskilling employee opportunities in line Culture and Heritage - Target 12: The Foundation’s main strategic aim with the digital transformation initiatives to broaden career opportunities is to encourage the research and stu
Slide 51: Macroeconomic overview
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Macroeconomic overview 51
Slide 52: 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) 28 21 Tertiary 46% 16 15 15 1 13 Wages per capita #2 country in Europe on 8 number of university graduates per capita
Slide 53: EU Recovery and Resilience Facility (RRF)
EU Recovery and Resilience Facility (RRF) To strengthen the economy’s resilience and potential for economically, socially and environmentally sustainable long-term growth and welfare Positive impact expected on GDP and employment over the next 5 years €1.2 bn €1.0 bn 16.5% from EU mechanism addition
Slide 54: Additional financial information
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Additional financial information 54
Slide 55: Robust Liquidity Position; Significant Surplus Liquidity of €8.1 bn
Robust Liquidity Position; Significant Surplus Liquidity of €8.1 bn Diversified, mainly retail funded deposit base Highly liquid balance sheet Group deposits Liquid assets • Sticky deposit base sits • 55% insured deposits epo d 6% • 61% Retail h 3% held in c a s 55% sured 20% 7% • Average size of Re
Slide 56: Analysis of Deposits
Analysis of Deposits Deposits by Currency (€ bn) Deposits by Customer Sector (€ bn) Currency Dec 23 Sep 24 Dec 24 Sector Dec 23 Sep 24 Dec 24 EUR 17.51 18.22 18.56 Retail 11.79 12.32 12.61 USD 1.45 1.40 1.59 SME 1.03 1.12 1.16 GBP 0.31 0.31 0.31 International 0.12 0.14 0.17 Corporate Other Currencie
Slide 57: Income Statement
Income Statement € mn FY2024 FY2023 yoy% 4Q2024 3Q2024 qoq% Net Interest Income 822 792 4% 198 204 -3% Net fee and commission income 177 181 -2% 46 45 4% Net foreign exchange gains and net gains/ (losses) on financial instruments 36 37 -2% 9 14 -37% Net insurance result 46 54 -14% 11 12 -8% Net (los
Slide 58: Consolidated Balance Sheet
Consolidated Balance Sheet % % Assets (€ mn) 31.12.2024 31.12.2023 change Liability and Equity (€ mn) 31.12.2024 31.12.2023 change Cash and balances with central banks 7,601 9,615 -21% Deposits by banks 364 472 -23% Loans and advances to banks 821 385 113% Funding from central banks - 2,044 -100% Re
Slide 59: 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 Dec 24 Sep 24 Dec 23 € mn Dec 24 Sep 24 Dec 23 Shareholders’ equity 2,590 2,508 2,247 PAT annualised 508 535 487 Average TBV adjusted - Intangible assets (50) (45) (49) for excess CET1 1,839 1,837 1
Slide 60: Capital Position; Quarterly Evolution
Capital Position; Quarterly Evolution min OCR1 requirement for January 2025 24.0% 19.1% 19.2% 4.8% 18.6% 1.2% (0.7%) 1.0% (0.7%) (0.4%) (0.1%) 0.3% 16.11% 11.40% Regulatory 3Q2024 profits distribution CET1 4Q2024 profits RWAs 3 distribution AT1 coupon other CET1 ratio AT1 & T2 Capital Ratio CET1 acc
Slide 61: Risk Weighted Assets– Regulatory Capital
Risk Weighted Assets– Regulatory Capital Risk Weighted Assets by Geography Reconciliation of Group Equity to CET1 € mn 31.12.22 31.12.23 30.09.24 31.12.24 € mn 31.12.24 Cyprus 10,059 10,297 10,416 10,810 Shareholder’s equity 2,590 Less: Intangibles (25) Overseas 55 44 25 24 Less: Deconsolidation of
Slide 62: Overall Capital Requirements
Overall Capital Requirements CET1 ratio Total capital ratio 16.05% 16.11% 15.56% c.0.92% c.0.92% 11.40% CCyB c.0.48% 11.34% c.1.88% c.1.94% c.0.92% O-SII 1.50% 10.72% c.0.92% CCyB c.0.48% CCB 2.50% 2.50% 2.50% c.1.88% c.1.94% O-SII 1.50% 2.50% Pillar 2R 3.08% 2.75% 2.75% CCB 2.50% 2.50% Tier 2 2.00%
Slide 63: Buffer to MDA Restrictions Level & Distributable Items
Buffer to MDA Restrictions Level & Distributable Items1 CET1 Ratios 781 bps 19.2% • Significant CET1 MDA buffer as at 31 December 2024: 781 bps2 (€847 mn2) • Distributable items1 of €2,331 mn for BOCH as at 31 December 2024 11.3% • BOCH fully utilises its AT1 and Tier 2 buckets as at 31 December 202
Slide 64: 2024 MREL Requirement Achieved with Significant Buffer
2024 MREL Requirement Achieved with Significant Buffer • MREL ratio including capital used to meet the CBR1 ( as % of RWAs) at 33.7%2 MREL (% of RWAs) as at 31 December 2024, well above December 2024 requirement • MREL ratio (as % of Leverage Ratio Exposure (LRE)) at 13.9%2 as at 31 33.7% December 2
Slide 65: Income Statement Bridge for FY2024
Income Statement Bridge1 for FY2024 Underlying Statutory € mn Other basis Basis Net interest income 822 - 822 Net fee and commission income 177 - 177 Net foreign exchange gains and net gains/ (losses) on financial instruments 36 2 38 Net insurance result 46 - 46 Net gains/(losses) from revaluation a
Slide 66: Analysis of Interest Income and Interest Expense
Analysis of Interest Income and Interest Expense Analysis of Interest Income (€ mn) 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 FY2023 FY2024 Loans and advances to customers 113 131 138 141 138 139 139 132 523 548 Loans and advances to banks and central banks 57 76 92 97 92 73 69 64 322
Slide 67: Non-NII at 1.0% of Total Assets, Surpassing the European Average
Non-NII at 1.0% of Total Assets, Surpassing the European Average 1.5% 1.2% 1.1% 1.0% Non-NII/ total assets 0.9% Average: 0.9% 0.8% 0.8% 0.7% 0.7% 0.7% 0.5% 0.5% 0.5% Peer 1 Peer 2 Peer 3 BOC Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 67
Slide 68: Income Statement by Business line for FY2024
Income Statement by Business line for FY2024 IBU & Consumer SME Corporate € mn International RRD REMU Insurance Treasury JCC Other Total Banking Banking Banking corporate Net interest income/(expense) 420 59 158 160 15 (23) - 38 - (5) 822 Net fee & commission income/(expense) 67 10 20 48 2 - (9) 4 2
Slide 69: Statutory Income Statement for Insurance Businesses for FY2024
Statutory Income Statement for Insurance Businesses for FY2024 € mn FY2024 FY2023 yoy% € mn FY2024 FY2023 yoy% Insurance revenue 81.2 78.1 4% Insurance service expense (44.3) (45.4) -2% Insurance revenue 69.2 63.9 8% Net insurance service result 36.9 32.7 13% Insurance service expense (38.1) (32.0)
Slide 70: Additional Asset Quality Slides
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Additional Asset Quality Slides 70
Slide 71: 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 €10.16 bn € bn Other Housing Private 3.94 0.74 4.68 Individuals Hotels & 1.16 Catering Real Estate 0.90 Private individuals Private individuals Business LTV2 Housing Other €5.48 bn €3.9
Slide 72: Gross Loans and NPE Coverage by Customer Type
Gross Loans and NPE Coverage by Customer Type Gross loans by customer type € mn Dec 23 Sep 241 Dec 241 Retail Housing 3,556 3,625 3,631 Retail other 994 1,081 1,076 SMEs 1,010 1,002 1,005 International corporate 763 825 961 Corporate 3,747 3,717 3,647 Total 10,070 10,250 10,320 Corporate SMEs Retail
Slide 73: Loans by Economic Activity and Arrears Analysis
Loans by Economic Activity and Arrears Analysis Gross loans (€ mn) Dec 23 Sep 241 Dec 241 Loans arrears Dec 23 Sep 241 Dec 241 analysis (€ mn) Trade 886 939 906 Loans with no arrears 9,675 9,967 10,100 Manufacturing 364 362 319 Loans with arrears but not Hotels & Catering 1,178 1,203 1.158 30 36 19
Slide 74: €46 mn Net NPE Outflows in 4Q2024
€46 mn Net NPE Outflows in 4Q2024 Analysis of total inflows(€ mn) 4Q2024 3Q2024 2Q2024 1Q2024 4Q2023 3Q2023 2Q2023 1Q2023 New inflows 6 7 7 8 6 9 9 7 Redefaults 0 1 0 1 1 0 1 2 Unlikely to pay 1 0 1 2 53 37 1 1 Total inflows 7 8 8 11 60 46 11 10 Analysis of total outflows (€ mn) Curing of restructur
Slide 75: 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) (€ mn) 10,070 10,250 10,320 Dec 23 Sep 241 Dec 241 267 237 Stage 1 8,335 8,952 9,305 90% 223 84 Stage 1 1.0% 0.7% 0.6% 62 59 42 Stage 2 3.1% 5.2% 6.4% 54 52 Stage 2
Slide 76: Stage 2 Exposures <10% of Loan Book; 98% of Exposures Present no Arrears
Stage 2 Exposures <10% of Loan Book; 98% of Exposures Present no Arrears € mn 814 6.0% Trade 43 Limited migration rate of Stage 2 to • Net c.€450 mn Stage 2 loans were migrated to 3.9% 44 Of which: Hotel & catering Stage 3 at 1.9% Stage 1 in FY2024; of which c.€210 mn in 4Q2024 55 16.6% Real estate
Slide 77: Rescheduled Loans
Rescheduled Loans1 Rescheduled loans1 by customer type Fair value of collateral and credit enhancements € bn Dec 23 Sep 24 Dec 24 31 Dec 2024 Loans and advances to customers (€ mn) Retail housing 0.14 0.11 0.09 Cash 578 Retail other 0.03 0.02 0.02 Securities 660 SMEs 0.04 0.03 0.03 Letters of credit
Slide 78: REMU - the Engine for Dealing with Foreclosed Assets
REMU - the Engine for Dealing with Foreclosed Assets €2.18 bn sales1 of 4,935 properties across all property classes since set-up €194 mn sales1in FY2024; comfortably above Book Value Sales € mn (contract prices1) # 99 # 331 # 575 # 579 # 492 # 1,130 # 674 # 569 #486 Net Proceeds / BV 102% 97% 128%
Slide 79: REMU - the Engine for Dealing with Foreclosed Assets
REMU - the Engine for Dealing with Foreclosed Assets Repossessed properties sold exceed properties acquired since 2019 By type (€ mn) Group BV (€ mn) 513 Land 1,488 (1,088) 46 27 Golf 2 89 Commercial & Manufacturing (18) 660 349 Residential (235) 660 Overseas 149 Jan 2019 Additions Sales Transfers t
Slide 80: Glossary & Definitions
Table of contents Executive Summary – Updated Financial Targets FY2022 Financial Performance Appendix Glossary & Definitions 80
Slide 81: 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 82: 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 83: 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 84: Glossary & Definitions
Glossary & Definitions Non-interest income comprises Net fee and commission income, Net foreign exchange gains and net gains/(losses) on financial instruments and (excluding net gains on loans and advances to Non-interest income customers at FVPL), Net insurance result, Net (losses)/ gains from reva
Slide 85: 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 86: Glossary & Definitions
Glossary & Definitions Return on Tangible equity (ROTE) Calculated as Profit/(loss) after tax (attributable to the owners of the Company) (annualised - (based on year - to - date days), divided by the quarterly average of Shareholders’ equity minus on 15% CET1 ratio intangible assets and after deduc
Bank of Cyprus Holdings — FY2024 Earnings Presentation on 6ix