#1Bank of Cyprus Group Group Financial Results For the six months ended 30 June 2022 Bank of Cyprus Holdings 7 KOINO KYMPI WN#2DISCLAIMER The financial information included in this presentation including the interim Condensed Consolidated Financial Statements for the six months ended 30 June 2022 has not been audited by the Group's external auditors. The Group's external auditors have conducted a review of the Interim Condensed Consolidated Financial Statements in accordance with the International Standard on Review Engagements 2410 "Review of Interim Financial Information performed by the Independent Auditor of the Entity" (UK & Ireland). This financial information is presented in Euro (€) and all amounts are rounded as indicated. A comma is used to separate thousands and a dot is used to separate decimals. References to pro forma figures and ratios as at 30 June 2022 refer to Project Helix 3, Project Sinope and to VEP. They are based on 30 June 2022 underlying basis figures and assume their completion, currently expected to occur in 2H2022. The completion of Projects Helix 3 remains subject to customary regulatory and other approvals. Project Sinope was completed in August 2022. VEP refers to the Voluntary Staff Exit Plan that the Group completed in July 2022, through which c.550 applicants were approved to leave at a total cost of c.€99 mn, expected to be recorded in the 3Q2022 income statement. Important Notice Regarding Additional Information Contained in the Investor Presentation The presentation for the Group Financial Results for the six months ended 30 June 2022 (the "Investor Presentation"), available on https://bankofcyprus.com/en-gb/group/investor-relations/reports-presentations/financial-results/, includes additional financial information not presented within the Group Financial Results Press Release (the "Press Release"), primarily relating to (i) NPE analysis (movements by segments and customer type), (ii) rescheduled loans analysis, (iii) details of historic restructuring activity including REMU activity, (iv) Income statement by business line, (v) NIM and interest income analysis and (vi) Loan portfolio analysis in accordance with the three-stages model for impairment of IFRS 9, (vii) bond portfolio and (viii) ESG metrics. Except in relation to any non-IFRS measure, the financial information contained in the Investor Presentation has been prepared in accordance with the Group's significant accounting policies as described in the Group's Annual Financial Report 2021 and updated in the Interim Financial Report 2022. The Investor Presentation should be read in conjunction with the information contained in the Press Release and neither the financial information in the Press Release nor in the Investor Presentation constitutes statutory financial statements prepared in accordance with International Financial Reporting Standards. Forward Looking Statements This document contains certain forward-looking statements which can usually be identified by terms used such as "expect", "should be", "will be" and similar expressions or variations thereof or their negative variations, but their absence does not mean that a statement is not forward-looking. Examples of forward-looking statements include, but are not limited to, statements relating to the Group's near term, medium 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 condition, expected impairment charges, the level of the Group's assets, liquidity, performance, prospects, anticipated growth, provisions, impairments, business strategies and opportunities. By their nature, forward-looking statements involve risk and uncertainty because they relate to events, and depend upon circumstances, that will or may occur in the future. Factors that could cause actual business, strategy and/or results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements made by the Group include, but are not limited to: general economic and political conditions in Cyprus and other European Union (EU) Member States, interest rate and foreign exchange fluctuations, legislative, fiscal and regulatory developments, information technology, litigation and other operational risks, adverse market conditions, the impact of outbreaks, epidemics or pandemics, such as the COVID-19 pandemic and ongoing challenges and uncertainties posed by the COVID-19 pandemic for businesses and governments around the world. Russia's invasion of Ukraine has led to heightened volatility across global markets and to the coordinated implementation of sanctions on Russia, Russian entities and nationals. Russia's invasion of Ukraine already has caused significant population displacement, and as the conflict continues, the disruption will likely increase. The scale of the conflict and the speed and extent of sanctions, as well as the uncertainty as to how the situation will develop, may have significant adverse effects on the market and macroeconomic conditions, including in ways that cannot be anticipated. This creates significantly greater uncertainty about forward-looking statements. Should any one or more of these or other factors materialise, or should any underlying assumptions prove to be incorrect, the actual results or events could differ materially from those currently being anticipated as reflected in such forward looking statements. The forward-looking statements made in this document are only applicable as at the date of publication of this document. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained in this document to reflect any change in the Group's expectations or any change in events, conditions or circumstances on which any statement is based. This Investor Presentation contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 and as the same has been retained in UK law as amended by the Market Abuse (Amendment) (EU Exit) Regulations (SI 2019/310). 2#3IRISH 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 Company's website at https://www.bankofcyprus.com/en-gb/group/investor-relations/possible-offer/ by no later than 12.00 (noon) (Irish/UK time) on the business day following publication of this Investor Presentation. The content of the website referred to in this Investor Presentation is not incorporated into, and does not form part of, this Investor Presentation. This Investor Presentation is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to this Investor Presentation or otherwise. Any offer will be made solely by certain offer documentation which will contain the full terms and conditions of any offer, including details of how it may be accepted. This Investor Presentation has been prepared in accordance with and in compliance with the applicable laws of Ireland, Cyprus and England and information disclosed may not be the same as that which would have been prepared in accordance with the laws of other jurisdictions. The distribution of this Investor Presentation in jurisdictions other than Ireland, Cyprus and the United Kingdom and the availability of any offer to shareholders of the Company who are not resident in Ireland, Cyprus or the United Kingdom may be affected by the laws of relevant jurisdictions. Therefore, any persons who are subject to the laws of any jurisdiction other than Ireland, Cyprus or the United Kingdom or shareholders of the Company who are not resident in Ireland, Cyprus or the United Kingdom will need to inform themselves about, and observe, any applicable requirements. Jurisdiction Responsibility Statement The Directors of the Company accept responsibility for the information contained in this Investor Presentation. To the best of their knowledge and belief (having taken all reasonable care to ensure such is the case), the information contained in this Investor Presentation is in accordance with the facts and does not omit anything likely to affect the import of such information. Disclosure requirements of the Irish Takeover Rules Under Rule 8.3(a) of the Irish Takeover Rules, any person who is 'interested' (directly or indirectly) in 1% or more of any class of 'relevant securities' of the Company must make an 'opening position disclosure' by no later than 3.30pm (Irish/UK time) on 2 September 2022. An 'opening position disclosure' must contain the details specified in Rule 8.6(a) of the Irish Takeover Rules, including details of the person's interests and short positions in any 'relevant securities' of the Company. Relevant persons who deal in any 'relevant securities' of the Company prior to the deadline for making an 'opening position disclosure' must instead make a dealing disclosure as described below. Under Rule 8.3(b) of the Irish Takeover Rules, any person 'interested' (directly or indirectly) in 1% or more of any class of 'relevant securities' of the Company must disclose all 'dealings' in such 'relevant securities' during the 'offer period'. The disclosure of a 'dealing' in 'relevant securities' by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (Irish/UK time) on the business day following the date of the transaction. A dealing disclosure must contain the details specified in Rule 8.6(b) of the Irish Takeover Rules, including details of the dealing concerned and of the person's interests and short positions in any 'relevant securities' of the Company. The Company is a public limited company incorporated in Ireland with relevant securities listed and admitted to trading on the Main Market of the London Stock Exchange and on the Cyprus Stock Exchange. As a result, any transaction to acquire the Company which constitutes a "takeover bid" (as defined in Directive 2004/25/EC (the "Takeover Bids Directive")) will be subject to the shared jurisdiction of the Irish Takeover Panel and the Cyprus Securities Exchange Commission in line with the procedures set out in Article 4 of the Takeover Bids Directive, as implemented in Ireland and Cyprus. Any transaction to acquire control of the Company which proceeds otherwise than by way of takeover bid will be subject to the jurisdiction of the Irish Takeover Panel under the Irish Takeover Rules. Prior to a determination being made as to the manner in which any transaction to acquire the Company would be implemented, the possible offer is subject to the jurisdiction of both the Irish Takeover Panel and the Cyprus Securities Exchange Commission. There is no certainty that any formal offer to acquire the Company will be made nor as to the terms on which any offer might be made. In addition, Lone Star must make an 'opening position disclosure' by no later than 12.00 (noon) (Irish/UK time) on 2 September 2022 and disclose details of any 'dealings' by it or any person 'acting in concert' with it in 'relevant securities' of the Company by no later than 12.00 (noon) (Irish/UK time) on the business day following the date of the transaction. All 'dealings' in 'relevant securities' of the Company by Lone Star, or by any party acting in concert with Lone Star, must also be disclosed by no later than 12 noon (Irish/UK time) on the 'business' day following the date of the relevant transaction. If two or more persons co-operate on the basis of an agreement, either express or tacit, either oral or written, to acquire for one or more of them an interest in relevant securities, they will be deemed to be a single person for these purposes. 3#4IRISH TAKE OVER RULES (continued) Disclosure tables, giving details of the companies in whose 'relevant securities' 'opening positions' and 'dealings' should be disclosed, can be found on the Irish Takeover Panel's website at www.irishtakeoverpanel.ie. Profit Forecast / Asset Valuations / Quantified Financial Benefit Statement 'Interests' in securities arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an 'interest' by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities. Terms in quotation marks in this section are defined in the Irish Takeover Rules, which can also be found on the Irish Takeover Panel's website. If you are in any doubt as to whether or not you are required to disclose a dealing or an opening position under Rule 8, please consult the Irish Takeover Panel's website at www.irishtakeoverpanel.ie or contact the Irish Takeover Panel on telephone number +353 1 678 9020. The financial results for the period ended 30 June 2022 provided in this Investor Presentation extracted from the Company's interim results constitute a profit estimate for the purposes of the Irish Takeover Rules and are subject to Rule 28.5. Other than the foregoing, no statement in this Investor Presentation is intended to constitute a profit forecast for any period, nor should any statements be interpreted to mean that earnings or earnings per share will necessarily be greater or lesser than those for the relevant preceding financial periods for the Company. No statement in this Investor Presentation constitutes an asset valuation or quantified financial benefit statement. Disclosure requirements of the Cypriot Takeover Bids Law In addition to the requirements under Rule 8 of the Irish Takeover Rules as outlined above, under section 26 of the Cypriot Takeover Bids Law, during the 'period of the takeover bid': a. b. Lone Star and every person holding a percentage of five per cent (5%) or more of the voting rights of the Company or Lone Star, must announce immediately, in accordance with the provisions of the Cypriot Takeovers Bids Law, every acquisition of securities in the Company or Lone Star made by themselves or by persons acting in their own name but on their behalf or in concert with them or by undertakings controlled by them, as well as the acquisition price and any voting rights already held in that company; and every person acquiring a percentage equal to half per cent (0.5%) or greater of the voting rights of the Company or Lone Star, must make an announcement for this acquisition in accordance with the provisions of the Cypriot Takeovers Bids Law, as well as every subsequent acquisition of securities of these companies by themselves or by persons acting in their own name but on their behalf or in concert with them or by undertakings controlled by them, as well as the acquisition price and any voting rights already held in that company. Terms in quotation marks in this section are defined in the Cypriot Takeover Bids Law, which can also be found on the website of the Securities and Exchange Commission of Cyprus at www.cysec.gov.cy. 4#51H2022 Financial Results ST 5#61H2022 Key messages €1.2 bn Strong New Lending Building net performing loan book¹ at €9.7 bn, up 4% in 1H2022 €33 mn Recurring Net insurance Income Up 6% yoy Insurance a key component of income growth 43 bps Normalising COR In line with medium-term target of 40-50 bps €59 mn Healthy Profit after tax and before non-recurring items Underlying ROTE of 7.3% converging to ROTE>10% 14.2%* Robust CET1 ratio Absorbing fully the cost of Voluntary Staff Exit Plan (VEP) €37 mn Annual saving in staff costs post successful July VEP 16% reduction in workforce achieved ahead of schedule €154 mn Non-NII Trends in line representing 51% of total income 5.7% 2 Mid-Single-digit NPE ratio On track to achieve c.5% by end of 2022 399k Active Digital users Up 8% ytd 3 344k active mobile banking users, up 8% ytd Non-legacy loan book which includes Corporate, Large and International corporate, International business unit, Wealth and Markets, SME and Retail Pro forma for HFS 3) 7234 2) Active users of mobile and internet banking 4) Pro forma for HFS and Voluntary Staff Exit Plan 100 6#71H2022 - Highlights Resilient economic outlook . Strong underlying profitability • Efficiency actions completed ahead of schedule Robust capital and liquidity Mid-single digit NPE ratio 6 . • • • 6.1% GDP growth in 2Q2022; expected to grow by over 5% in 2022, outperforming wider Euro area Strong new lending of €1.2 bn, up 30% yoy and ahead of pre-pandemic levels 4% growth in net performing loan book2 in 1H2022 Profit after tax before non-recurring items of €59 mn, up 20% yoy underpinned by higher revenue and lower impairments Underlying ROTE of 7.3%8 . Profit after tax of €50 mn for 1H2022 vs €1 mn for 1H2021 • . • . Cost to income ratio³ at 58% for 1H2022, broadly flat yoy Successful completion of Voluntary Staff Exit Plan (VEP) in 3Q2022 at one-off cost of c.€99 mn Full time employees reduced by c.16%; estimated annual saving of c.€37 mn (19%) of staff costs Branch footprint reduced by 25% year to date CET1 ratio of 14.2% 4,5 and Total Capital ratio of 19.3%4,5 Deposits at €18.5 bn up 4% qoq • Significant surplus liquidity of €6.7 bn; well positioned to benefit from further interest rate increases . • NPE ratio reduced to 5.7% (2.4% 6,7 net) vs 6.5% at March 2022 Coverage at 59%6; cost of risk at 43 bps 7234 1) Source: Cyprus Statistical Service, Ministry of Finance 2) 3) Non-legacy loan book which includes Corporate, Large and International corporate, International business unit, Wealth and Markets, SME and Retail Excluding special levy on deposits and other levies/contributions 4) Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements 5198 5) 6) Pro forma for HFS and the completion of VEP Pro forma for HFS 7) Calculated as NPEs net of provisions over net loans 8) Calculated as Profit after Tax and before non-recurring items divided by (Shareholders' equity minus Intangible assets) 7#8Improved near-term guidance on faster rate rises: ROTE>10% in 2023 Net interest income now rising Well positioned to benefit from further rate rises Loans and liquids repricing faster than funding costs Strong Net F&C in 1H2022 but near-term pressure Phasing out of liquidity fees in 2023 Delivery on efficiency plans ahead of schedule Reduction of number of staff and branches in July 2022 unlocks meaningful savings from 2023 Elevated inflation will put pressure on total operating costs¹ Cost of risk remains under control FY2022 Guidance 2022 NII at c.€320 mn, up 8% yoy C/I ratio at around current levels vs initial expectations of mid-60s FY2023 Guidance 2023 NII up c.€100-€120 mm, up c.30% 35% yoy C/I ratio¹ down to c.50% Cost of risk at c.50 bps Cost of risk at c.50-80 bps • Strong loan portfolio performance in 1H2022 • Some upward pressure in near term due to macro uncertainty in 2023 Maintain healthy capital buffers • IFRS 17 Day 1 (January 2023) benefit on Group tangible equity estimated at c.€50 mn, enhancing Group CET1 by c.50 bps³ Clear path to double digit ROTE; intention for meaningful dividend distributions • ROTE of over 10% from 2023 supporting ability to make meaningful dividend distributions² from 2023 onwards Excluding special levy on deposits and other levies/contributions 1) 2) Subject to regulatory approvals and market conditions 3) Upon the upstreaming of dividend by the subsidiary ROTE of >10% supporting ability to make meaningful dividend distributions² from 2023 onwards 8#9Cypriot economy proves resilient and adaptable to external shocks GDP grew by 6.1% in 2Q2022 Quarterly Real GDP qoq % change 14.6% 13.4% Annual Real GDP yoy % change 5.5% 5.4% >5.0% 4Q2020 1Q2021 2,182 22% 6.0% 6.1% 5.4% 3.9% 2021 2022E1 Cyprus Euro area 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 2.6% 2.8% 1.4% • 2023E² GDP Cyprus (% quarterly change) GDP - Euro area (% quarterly change) • Better than expected tourism performance despite challenges Tourist arrivals ('000) for Jan-Jul 638 321 1,676 -2% -23% Tourism Receipts Revenue (€ mn) 1H2019 1H2021 1H2022 1,003 259 836 Deviation from 2019 2019 2020 2021 Russian, Belarus & Ukraine 2022 Tourist arrivals Source: Eurostat, Cyprus Statistical Services, Ministry of Finance, Ministry of Energy 1) 2) GDP forecasts: For Cyprus: Cyprus Statistical Service, Ministry of Finance in August 2022; For Euro area: ECB projections published in July 2022 GDP forecasts: Cyprus: Economic Research Centre of University of Cyprus in July 2022; For Euro area: ECB projections published in July 2022 GDP expected to grow by over 5%¹ in 2022 and by c.2.8%² in 2023, outperforming wider Euro area Strong performance in January-May activity and strong labour market indicators support the 2022 outlook, notwithstanding a modest slowdown in activity in 2H2022: - Industrial production up 5% yoy - Retail sales excluding vehicles up 4% yoy Investments and reforms, through the Recovery and Resilience Plan (€1.2 bn) are expected to support growth (slides 43-44) Tourism • • Tourism sector recovering towards pre-pandemic levels Stronger than anticipated tourist arrivals from markets other than Russia (UK, Greece, Germany) Jan-Jul 2022 arrivals at c.77% of 2019 levels and • -74% -17% 1H2022 receipts at 83% 2019 levels - higher spending per capita 9#10Labour market conditions further improved while inflation has picked up Unemployment rate at 6.6% in 1Q2022 (6.8% Euro area) Quarterly Unemployment rate (%) (seasonally adjusted) 8.2 7.6 7.5 8.0 7.2 6.8 6.7 7.1 2Q2019 3Q2019 4Q2019 Cyprus Euro area 1Q2021 2Q2021 3Q2021 6.6 4Q2021 6.2 1Q2022 Inflation remains elevated mainly due to surging energy prices HICP Index (annual rate of change) (%) 2.2 1.9 Jun-21 Sep-21 Oct-21 Nov-21 10.6 9.0 8.9 7.4 8.6 5.0 6.2 4.8 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Unemployment Unemployment reduced to 6.2% in 1Q2022 from 6.6% in 4Q2021 and 8.2% in 2Q2021, attributed mainly to accommodation, trade and manufacturing sectors Energy • No energy dependence on Russia No gas dependence; Solely oil imports mainly from Greece, Italy and the Netherlands Indirectly affected by pricing pressures in the international energy markets Steady increase in contribution from renewables (16% for 2021) Significant gas discovery in Cyprus in August 2022; new opportunities for natural gas exploitation Milder winter compared to other European countries Inflation • Cyprus HICP +10.6% yoy in July 2022 (January-July 2022: average 7.7%), mainly due to the impact of imported inflation in domestic economy (electricity and petroleum products) Pressure on household disposable income partly offset by: Fiscal measures targeting mainly low-income households (€350 mn for FY2022 announced up to July 2022) High employment rate Increase in wages (6.8% yoy increase in average gross monthly annual earnings in 1Q2022) Increase in household deposits by 1.1% in 1H2022 and by 7.8% since Jun 2020 to €26.0 bn Limited Group's exposure to Russia, Belarus and Ukraine: Cyprus Euro area Source: Eurostat, Central Bank of Cyprus - 5% of deposits - c.1% of net loans 10#11Net performing 4 book up 4% to €9.7 bn Strong new lending of €1.2 bn in 1H2022 up 30% yoy New lending of €537 mn in 2Q2022 back to pre-pandemic levels € mn Net loans € bn +30% +4% 1,159 1,111 622 152 9.38 9.72 194 548 894 8.94 9.00 104 537 0.63 0.73 63 48 156 407 496 3.70 3.80 31 498 258 395 238 199 162 119 1.04 1.03 64 55 126 105 42 47 273 99 124 128 145 180 226 3.14 3.26 47 48 68 51 113 105 119 0.87 -0.90. 2Q2019 2Q2021 1Q2022 2Q2022 1H2019 1H2021 1H2022 Dec-19 Dec 20 Dec 213 Jun 223 1) 7237 Shipping & International Corporate 1 SME Retail Housing Retail other 41% Leading Market share in loans Includes syndicated loans Facilities/limits approved in the reporting period Pro forma HFS Non-legacy loan book which includes Corporate, Large and International corporate, International business unit, Wealth and Markets, SME and Retail • Increase in 1H2022 new lending driven by higher lending activity across all sectors Meticulous assessment of repayment capability and strict origination standards . Increase in net performing book is spread across most sectors • Strong track record in dealing with restructurings; Just 11% of net performing loan book is restructured • 99% of new exposures² in Cyprus since 2018 are performing 11#12Profitability 172#13Income Statement € mn 1H2022 1H2021 2Q2022 1Q2022 909% yoy% Net Interest Income 145 152 74 71 4% -4% Non interest income 154 136 79 75 6% 13% Total income 299 288 153 146 5% 4% Total operating expenses¹ (173) (171) (87) (86) 2% 2% • Operating profit 109 102 59 50 18% 7% Loan credit losses and (37) (50) (20) (17) 14% -27% impairments PAT before non-recurring items² 59 51 32 32 27 18% 20% QoQ Performance (2Q2022 vs 1Q2022) NII up 4% reflecting growth of net performing book 5 and loan yields improvement in line with rising interest rate environment Non interest income up 6% driven by higher net fee and commission income Total operating expenses¹ up 2% Loan credit losses and impairments up 14% qoq mainly due to higher impairments on net legacy overseas exposures PAT before non-recurring items² of €32 mn up 18% Advisory and organic restructuring (5) (18) (4) (1) 219% -70% • costs Underlying ROTE 4 at 7.8% PAT-organic² 54 33 28 26 8% 70% • Exceptionals³ (4) (32) 1 (5) -103% -85% Profit after tax² 50 1 29 21 35% Key Ratios Net Interest margin 1.32% 1.56% 1.33% 1.32% 1 bps -24 bps Cost to income ratio¹ 58% 59% 57% 59% -2p.p. -1p.p. • • Profit after tax² of €29 mn YoY Performance (1H2022 vs 1H2021) NII down 4%, impacted by foregone Helix 2 interest (c.€15 mn in 1H2022) Non interest income up 13% following the initiatives on price adjustments and extension of liquidity fees to a wider customer group in 1Q2022 Cost of Risk 0.43% 0.61% 0.41% 0.44% -3 bps -18 bps • Total operating expenses¹ up 2% EPS before non-recurring items 13.51 11.24 7.31 6.20 1.11 2.27 • (€ cent) ROTE before non-recurring items 7.3% 6.1% 7.8% 6.7% 1.1 p.p. 1.2 p.p. • Loan credit losses and impairments down 27% yoy due to higher COVID-19 related charges in 1H2021 PAT before non-recurring items² of €59 mn up 20% • 723 2) 1) Excluding special levy on deposits and other levies/contributions Attributable to the owners of the Company 4) 5) 3) Please refer to section B.3.4 "Profit after tax (attributable to the owners of the Company)" of the 1H2022 FR Press Release Calculated using Profit/(loss) after tax and before non-recurring items Non-legacy loan book which includes Corporate, Large and International corporate, International business unit, Wealth and Markets, SME and Retail Underlying ROTE 4 at 7.3% • Profit after tax² of €50 mn 13#14Quarterly NII bottomed out; reverting to growth Effective yield on assets & cost of funding NII of €74 mn for 2Q2022 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 81 6 6 Liquids 10 563 555 7' 8 Helix 2 & 3 525 463 532 Legacy 292 301 287 287 295 1 95 65 67 40 69 72 68 Perfoming 9 7 5 13 12 -16 -19 -18 -16 -16 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 Interest expense -3 -3 -2 -2 Net derivatives Tier 2 & -6 -7 -7 -8 -8 Senior preferred -2 Customer -1 -1 deposits -10 -1 -1 -10 -10 -12 -12 • • Quarterly NII bottomed out with high quality NII reverting to growth due to increased lending and faster repricing of loans and liquid assets than funding costs; low legacy NII contribution Increase in performing loan NII reflects volume growth, improving yields (Euribor linked) and 2 extra calendar days Increased deposits in 2Q2022 (+4% qoq) were placed in liquid assets with ECB, diluting the yield on liquid assets; expected to improve on ECB rate rises TLTRO III borrowing of €3.0 bn; NII benefit of €15 mn booked during the period (June 2021-June 2022); TLTRO participation expected to be maintained to maturity, subject to no change in terms and conditions 1) Non-legacy loan book which includes Corporate, Large and International corporate, International business unit, Wealth and Markets, SME and Retail 14#15Liquid balance sheet positively geared to higher interest rates 1 Cash and balances with Central Banks of €9.91 bn, of which €3 bn TLTRO 2) 3) 4) 7234 25.84 25.84 Other assets 2.25 1.24 Other (including HFS) 1.15 2.09 REMU properties 0.40 Equity 0.61 Wholesale 5 Legacy net loans 2.96 3 Funding from 2 2 0.49 Central Bank Net performing loans 9.72 Due to banks 3 2 Securities Due from banks 2.10 0.31 IEA1 3 18.45 Customer deposits 4 Cash and balances 1 9.91 with Central Banks Total assets Total liabilities & equity Interest earning assets Non-legacy loans of corporate (including IBU, W&M and Large and International corporate), SME and Retail Debt securities, treasury bills and equity investments Excluding TLTRO (€3 bn) and Exempt Tier (€1 bn) 4 • ECB depo rate rises benefit to be booked immediately c. €12 mn4 benefit in 2H2022 from the 50 bps July 2022 rate rise Securities of €2.10 bn Conducive conditions for fixed income portfolio expansion going forward Net loans of €10.12 bn (of which €9.72 bn performing book) • 48% linked with Euribor 23% linked with Bank's base rate 15% linked with ECB MRO rate Customer deposits of €18.45 bn • Cyprus banking system has ample liquidity, so no immediate deposit repricing expected • Liquidity fees charged from March 2021, contributed c. €8 mn in 1H2022, expected to phase out as interest rates pick up 5 Wholesale funding of €0.61 bn Expected to gradually increase to comply with MREL requirements 15#16Rising interest rates enabling faster NII growth Immediate benefit ECB Deposit rate Loan repricing sensitivity 3m Euribor rate ⚫BOC business plan (Feb 2022) Market/BOC Expectations May 2022² BOC Base rate Market/BOC Expectations Aug 2022³ ECB MRO rate 1.30% 1.75% 1.5% 2.0% 3.2% 2.0% 1.65% 1.00% 1.17% 1.50% 1.5% 1.0% 3.0% 0.65% 1.0% 1.36% 2.79% 1.5% 0.90% 0.76% 2.8% 0.5% 0.00% 0.5% 1.0% -0.30% 2.6% 0.35% 0.0% -0.40% 0.0% -0.50% -0.49% 2.32% 0.5% -0.5% -0.54%. 2.4% Flat at 2.30% 0.00% Flat at 0% -0.5% -0.50%* 0.0% -1.0% 2.2% 2021A 2022 2023 2024 2025 2021A 2022 2023 2024 2025 2021A 2022 2023 2024 2025 2021A 2022 2023 2024 2025 €9.9 bn or c.44% of AIEA¹ cash balances with the ECB % of net loans 48% NII outlook 23% Based on August 2022 forward curves: ⚫ NII for 2022 expected to reach c.€320 mn, reflecting higher income on liquid assets and higher loan yields from loan repricing 2023 NII up c.€100 - €120 mn yoy 15% Assumptions include: . Partial pass-through to deposits (c.50% starting in 2023 on term deposits) • • Gradual change in deposit mix towards term deposits (term deposits 31% of total deposits as at 30 June 2022) Higher wholesale funding costs from 2023 1) Average interest earning assets 2) 3) Source for ECB Deposit rate and ECB MRO rate: Bloomberg -16/5/22, Source For 3m Euribor rate: Bloomberg - 9/5/22 Source for ECB Deposit rate and ECB MRO rate: Bloomberg -15/8/22, Source For 3m Euribor rate: Bloomberg - 3/8/22 16#17Net interest income positively geared to higher interest rates NII sensitivity to parallel shift in interest rates (annualised), over and above uplift potential of c.€100-€120 mn Key simplifying assumptions Y1 +50bps +100bps EUR €55 mn €101 mn • USD €1 mn 1 €2 mn Total €56 mn €103 mn 160 bps parallel shift in USD interest rates • • • • An instantaneous and sustained parallel movement in EUR and USD interest rates Static balance sheet in size and composition Assets and liabilities whose pricing is mechanically linked to market / central bank rates assumed to reprice accordingly Certain other assumptions including pass-throughs to assets and liabilities This sensitivity is not a forecast of interest rate expectations, and the Bank's pricing decisions in the event of an interest rate change may differ from the assumptions underlying this sensitivity. Accordingly, in the event of an interest rate change the actual impact on Group NII may differ from that presented in this analysis 17#18Deposits at €18.5 bn up 4% qoq; significant liquidity surplus of €6.7 bn Cyprus deposits by passport origin² € bn 18.45 17.53 17.66 16.53 Deposits 1) 3) 723 Dec 20 Dec 21 Mar 22 Jun 22 • 37% market share in deposits as at 30 Jun 2022 Significant surplus liquidity of €6.7 bn 5% 18.45 IBU1 3.67 Corporate 6% 5% 2.42 14% Retail 11.45 SME 0.91 Jun 22 Liquidity ratio Minimum required 30 June 2022 Surplus LCR (Group) 100% 299% €6,700 mn 3 L/D ratio NSFR 100% 160% €7,423 mn L/D ratio³ 56% Servicing exclusively international activity companies registered in Cyprus and abroad and non residents Origin is defined as the country of passport of the Ultimate Beneficial Owner Net loans to deposits ratio 70% Cyprus Other EU Other countries Other European countries, excl. Russia Russia/Belarus/Ukraine Cypriot banks have lower L/D ratio compared to Euro area 103% 97% 92% 88% 80% 79% 79% 75% 63% 58% 56% 40% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 BOCH Peer 11 18#19Conducive 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) FVTPL- 1,925 1,925 1,855 1,908 1,908 1,855 1 40' 0 FVOCI² 516 733 604 Other financial & non-financial corporations Other Governments 50' 3% 35 311 278 344 18% Cyprus Government 736 774 694 36% 1,391 Amortised cost 1,191 1,251 Financial Institutions 629 559 595 31% Supranationals 209 209 225 12% Dec 21 Mar 22 Jun 22 Dec 21 Mar 22 Jun 22 Portfolio comprised of highly rated holdings of low average duration that provides reallocation flexibility and will allow the Bank to benefit from the rising interest rate environment (amortised cost portfolio) • Average Duration: 1.7 years³ • Average rating: A2 • Ample excess liquidity conducive for the expansion of fixed income portfolio subject to market conditions • Majority of positions in the FVOCI book are hedged for interest rate risk, therefore minimal effect on reserves expected from interest rate changes 723 1) Investments classified as fair value through profit or loss 2) Investments classified as fair value through other comprehensive income 3) After taking into consideration the hedging of interest rate risk 19#20Recurring 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 22% 28% 30% 32% 28% 30% 33% €136 mn +13% €154 mn 10 • Total non interest income of €79 mn for 2Q2022 representing 51% of total income Net fee and commission income for 2Q2022 of €50 mn was up 14% qoq (compared to €44 mn for 1Q2022), due to: higher volume of transaction fees higher credit card commissions due seasonality to the full impact of the introduction of the revised price list and extension of liquidity fees Phasing out of liquidity fees in 2023 (c.€4 mn per quarter) Net insurance income of €17 mn for 2Q2022 mn, broadly flat qoq Net FX and other income¹ broadly flat at €10 mn 92 60 76 68 81 75 79 Total non - NII(€ mn) 92 Non recurring 36 24 8 12 6 + 13 9 2 12 19 15 14 10 15 565 12 10 63 Recurring 56 56 52 18 12 62 18 13 1) 2) 72 67 62 60 17 18 16 50 45 44 44 44 38 39 1Q2022 2Q2022 REMU 2 Net FX and other income¹ 2Q2019 1Q2021 2Q2021 3Q2021 4Q2021 Insurance income net of insurance claims Net fee & commission Net FX gains/(losses) & Net gains/(losses) on financial instruments, and other income Gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties 20#21Profitable Life Insurance business - valuable and sustainable contribution to the Group eurolife € mn GWP2 Net reinsurance cost 13% contribution 1H2022 1H2021 yoy% 73.5 65.3 12% (10.2) (9.7) 5% Net impact of interest rate 2.3 (2.4) -193% to non interest income movements Costs, claims and change in (46.0) (34.9) 32% reserves Net insurance income 19.6 18.3 7% Total operating costs (6.3) (6.0) 6% PBT-contribution to the 13.3 12.3 8% Group6 Total Regular income1 78.4 66.0 19% 18% contribution to the Group's PBT 25% Market share³ . • . GWP2 up 12% yoy due to increased new business in 1H2022 and the low rate of policy surrenders and lapses Costs, claims and change in reserves up 32% yoy mainly due to increase in production related expenses directly related in new business and higher claims PBT- contribution to the Group up 8% yoy mainly driven by increased GWP AUM at €524 mn down 6% in 1H2022 driven by the decrease in the FV of investments held due to volatile market conditions • Solvency ratio of 223% as at 30 June 2022 . Plan in place to enhance value further by business growth supported by digitisation and lean operating structure Total regular income targeted to grow by 35% by 2025 (vs FY2021) IFRS 174 Day 1 benefit on Group tangible equity estimated at c.€50 mn, enhancing Group CET1 by c.50 bps 5 Drivers: Highest # of individual customers in Cyprus with 70k life and 16k health customers Pursue new profitable market segments . • Explore opportunities in Occupational Pensions • Launch new products and investment funds • Widen target market • Upgrade customer experience (myeurolife portal) 6) PBT is adjusted to exclude intercompany transactions between insurance companies and the Bank 21 1) Total regular income includes yearly renewable gross written premiums and occupational pension contributions 4) 2) Gross written premium 375 3) As at 31 December 2021 based on market statistics Adoption date 1 Jan 2023 5) Upon the upstreaming of dividend by the subsidiary#22Profitable Non-Life Insurance business – valuable and sustainable contribution to the Group € mn Genikes Insurance Insurance income - 8% contribution 9% contribution to the Group's PBT 13% Market share2 Plan in place to enhance value further by business growth supported by digitalisation and lean operating structure GWP targeted to grow by more than 50% by 2025 (vs FY2021) 1H2022 1H2021 yoy% 36.5 32.2 14% to non interest income (of which GWP1) 32.1 29.7 8% Costs and claims (23.3) (19.4) 20% Net insurance income 13.2 12.8 4% Total operating costs (4.4) (4.0) 7% Revaluation losses on (2.0) (0.4) investments PBT-contribution to the 6.8 8.4 -19% Group³ • GWP¹ up 8% yoy due to increased new and renewal business • Cost and claims up 20% yoy due to higher activity in 1H2022 PBT- contribution to the Group³ down 19% yoy mainly due to increased revaluation losses on investments driven by volatile market conditions • Solvency ratio of 186% as at 30 June 2022 Drivers: • Widen target market leveraging on revamped bancassurance model • Exploit synergies with life insurance agency force • Focus on profitable business segments (fire and liability) • Strengthen profitable penetration into motor sector 72 1) Gross written premium 3) 2) As at 31 December 2021 based on market statistics PBT is adjusted to exclude intercompany transactions between insurance companies and the Bank 222 22#23Leading card processing business in Cyprus JCC PAYMENT SYSTEMS € mn Net fee and commission income 1H2022 1H2021 yoy% 12.2 9.7 26% 9% contribution to non interest income 9% contribution to the Group's PBT 85% Market share1 Other income 2.5 0.8 200% FX and net losses on (0.2) 0.8 revaluation of investment • Market leader in payment business in Cyprus Total contribution Group's 14.5 11.3 27% • Entrusted business partner Non-NII • Interest expense (0.1) (0.1) 6% Strong market growth reflects transition away from cash transactions Compulsory credit card payments in most businesses in Cyprus Total operating costs (8.1) (7.1) 14% PBT-contribution to the 6.3 4.1 52% Group JCC card transactions continue to increase Value of transactions (€ mn) 1,200 • Net fee and commission income up 26% yoy due to higher activity in 1H2022 (as 1H2021 was impacted by lockdown) 1,100 1,105 1,023 1,000 900 • One-stop shop, providing various innovative solutions 800 859 757 792 • Strong transaction volume growth (up 35% yoy) and merchant onboarding (up 40% yoy) 700 600 500 • Backed by BOC with 75% stake 400 Jan Feb Mar Apr May Jun Jul 2019 2020 2021 2022 1) As at 31 December 2021 based on market statistics 23#24Tight cost management of workforce and branches more than offsets elevated inflation pressures Total operating expenses¹ up 2% qoq Substantial streamlining of workforce and branches (€ mn) 89 89 87 86 87 38 38 37 36 37 51 51 50 50 50 2Q2021 3Q2021 4Q2021 1Q2022 50 50 2Q2022 Other operating expenses Staff costs C/l ratio¹ in 2022 revised to around current levels (vs mid-60s) due to cost management initiatives and improved revenues 64% ⚫ Mid-60s 59% 58% 57% 57% Previous expectations • 50-55% 66% 75% 79% 80% 96 84 80 80 -16% 75 60 4,155 3,573 3,438 3,422 2,872 Jun 19 Dec 20 Dec 21 Jun 22 Jun 22 post - VEP 3,661 2,986 2,453 # of branches # of FTEs - Group Digitally engaged customers # FTEs of Bank • Successful completion of Voluntary Staff Exit Plan in July 2022 Reduction of 16% in full time employees (c.550 applicants approved to leave) • Annual savings of c. €37 mn or 19% in staff costs c.50% • c.50% 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 FY2022 FY2023 FY2025 C/I ratio 1 C/I ratio' initial expectations 1) Excluding special levy on deposits and other levies/contributions Estimated one-off cost of c. €99 mn to be recorded in the 3Q2022 income statement Branch footprint rationalization facilitated by digital transformation 15 branches closed down on 1 Jul 2022 Reduction of 38% since Jun 2019 24#25Leverage leading Digital Capabilities to serve customers and the economy Digital Transactions ratio 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 logins per month Jul 2019 13.3x Jul 2021 Jul 2022 19.1x 21.7x Active users of Internet and/or Mobile Banking Jul 20192 Jul 20212 Jul 2022 272k 348k 399k 1) Comparative figures have been revised in order to include data for the transactions of "Payroll & Group Transfers" through 1Bank. 2) Comparative figures have been revised in order to include active users for business subscribers . • Leader in shaping the digital transformation of local economy JINIUS FE Calendar Spend Demographic Time Rate Portal Login Bank Branches ATM Business partners Social J! Financial Health Real Estate Connectivity energy A Authorities Vision Introduction of the Digital Economy Platform to optimize processes within the economy and create new revenue sources over the medium- term Bringing stakeholders together Connecting businesses with each other and with consumers • Driving opportunities in lifestyle banking and beyond Launch of first set of services for digitizing business to business activities (eg: electronic invoicing, remittance management and payments) 25#26Capital, Liquidity & Asset Quality 26#27Pro forma for HFS and VEP, CET1 at 14.2% 14 and Total Capital ratio at 19.3%¹4 • • min OCR (SREP) requirement for 2022³ 19.3% 2.9% 14.6% 14.6% 0.6% (0.3%) (0.1%) (0.2%) 0.6% 14.2% (1.0%) 2.2% 15.0% 10.1% - -10.1% CET1 1 31 Mar 2022 Operating profit Provisions and impairments 2 6 RWAs Other movements CET1 30 Jun 2022 1,4 Held for Sale VEP CET1 30 Jun AT1 T2 2022 pro Total Capital ratio form a for HFS and VEP 1,4 30 Jun 2022 pro forma for HFS and VEP 1,4 CET1 ratio¹ positively impacted by: • c.60 bps organic capital generation from operating profitability CET1 ratio negatively impacted by: • c.30 bps from provisions and impairments • c.20 bps from other reserve movements (AT1 coupon payment and movements on FVOCI) . • . • Held for Sale expected to add c.60 bps on completion in 2H2022 VEP expected to reduce CET1 ratio by c.95 bps in 3Q2022 CET1 ratio fully loaded at 13.9% as at 30 June 2022 and 13.4% pro forma for HFS and VEP IFRS 17 Day 1 (January 2023) benefit on Group tangible equity estimated at c.€50 mn, enhancing Group CET1 by additional c.50 bps5 The Group continues to monitor opportunities for the optimisation of its capital position including Additional Tier1 capital 1) Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements 3) OCR (SREP) - Overall Capital Requirement (refer to slide 61) 5) 2) Loan credit losses and other impairments (include the net change of the prudential charges relating to specific credits and other items) 4) Includes reviewed profits for the six months ended 30 June 2022 6) Upon the upstreaming of dividend by the subsidiary Held for sale refer to Project Helix 3 and Project Sinope 27#28Interim MREL requirement of 1 January 2022 achieved MREL ratio as % of RWAs at 18.47%¹ as at 30 June 2022 pro forma for HFS and VEP • MREL ratio as % of Leverage Ratio Exposure (LRE) of 9.28% as at 30 June 2022 Interim MREL requirement as a % of RWAs of 14.94% for 1 January 2022 achieved following inaugural issuance of €300 mn senior preferred notes in June 2021 MREL (% of RWAs) 23.74% as at 31 Dec 2025 18.47% The Bank will continue to evaluate opportunities to advance the build-up of its MREL liabilities 30 Jun 2022 pro forma for HFS and VEP (as % of RWAs) 1 MREL requirement (as % of RWAs) Interim requirement 14.94% as at 1 Jan 2022 MREL ratio and requirement expressed as % of RWAs do not include capital used to meet the Combined Buffer Requirement (CBR), of 3.75% as at 30 June 2022 MREL requirements Based on BRRD II; The Bank (BOC) is the resolution entity Final Target of 23.74% of RWAs and 5.91% of Leverage Ratio Exposure (LRE) to be met by 31 December 2025; no subordination requirement The own funds used to meet the combined buffer requirement (CBR) are not eligible to meet MREL requirement as % of RWAs 1) Includes unaudited/unreviewed profits for the six ended 30 June 2022 28#29NPE ratio reduced to 5.7%; Coverage at 59% NPE reduced to €0.6 bn in 2Q2022 (€ bn) 3.1 • Helix 3 (€0.6 bn) • Sinope (c.€12 mn) • Organic reduction (€170 mn) Residual NPEs comprises mainly Retail -55% 1.3 1.2 1.2 0.6 1.2 0.6 0.5 0.5 0.2 Dec 20 Dec 21 Mar 22 Jun 22 Jun 22 pro forma for HFS3 Allowance for Expected Loan Credit Losses Net NPES NPE ratio reduced to 5.7%; 2.4% on a net basis 25.2% 0.60 0.13 0.26 0.06 0.15 Jun 22 3 pro forma for HFS³ Re-performing NPEs Retail SME Corporate Pro forma for HFS, NPE coverage at 59% 131% 128% 128% 128% 130% 11.4% 12.4% 11.4% 10.6% 5.7% c. 5.0% 62% 59% 59% 58% 5.5% 5.0% 4.7% 69% 69% 69% 70% 71% 59% Re-performing NPES¹ 32% Core NPES 66% 59% 2.4% Dec 20 Dec 21 Mar 22 Jun 22 Jun 22 pro forma for HFS Dec 22 Dec 20 Dec 21 Mar 22 Jun 22 3 Jun 22 pro forma for HFS 3 Jun 22 pro forma for HFS³ Gross NPE ratio Net NPE ratio 2) 3) 723 1) In pipeline to exit NPEs subject to meet all exit criteria; the analysis is performed on a customer basis Restricted to Gross IFRS balance Held for sale refer to Project Helix 3 and Project Sinope Tangible collateral² Allowance for expected loan credit losses 29#301) €74 mn net organic NPE reduction in 2Q2022 Net organic outflows (€ mn) -112 -131 -98 -96 -74 Inflows (€ mn) 19 17 14 5 New inflows 11 1! 6 13 7 Redefaults 7 13 5 Unlikely to pay 2 7 =1 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 Outflows (mn) Curing of restructuring -17 -13 -11 -34 -36 -2 -12 DFAS & DFES ఉ -71 -75 -70 Write-offs -80 -90 -12 -22 -93 -103 -112 Other 1 -10' -13 Sales of NPES 568 Helix 3 -1,305 -710 -1,434 Other includes interest, cash collections and changes in balances • • • • • €93 mn organic NPE outflows in 2Q2022, leading to €74 mn net organic NPE reduction Additional €5 mn net NPE reduction in 2Q2022 relating to NPE sales lockbox (1Q2022: Nil) €16 mn NPE inflows in 2Q2022 relate to loans that were under expired payment deferral €13 mn of UTP NPE inflows mainly impacted by a specific customer in tourism sector under the expired payment deferral Helix 3 of c.€0.6 bn expected to be completed in 2H2022 Strong track record in dealing with restructurings • Project Sinope was completed in August 2022 (c.€12 mn) 30#31Gross loans and coverage by IFRS 9 staging Gross loans by IFRS 9 stage (€ mn) Allowance for expected loan credit losses (€ mn) Coverage ratio 10,856 10,964 11,047 10,477 Dec 21 Mar 22 Jun 22 Stage 1 7,529 7,753 7,799 Jun 22 pro forma 792 7,799 74% 734 for HFS 84 677 54 85 52 83 51 Stage 1 1.1% 1.1% 1.1% 1.1% 355 Stage 2 1,984 1,964 2,080 20% 654 597 Stage 2 2.7% 2.7% 2.5% 2.4% 543 83 2,078 51 Stage 3 1,343 1,247 1,168 6% 221 Stage 3 48.7% 47.8% 46.5% 36.9% 600 Dec 21 Mar 22 Jun 22 Jun 22 Dec 21 Mar 22 Jun 22 pro forma % of gross loans for HFS Jun 22 pro forma for HFS . Coverage for stage 3 loans at 36.9% pro forma for HFS • Transfers of €198 mn loans from Stage 2 to Stage 1, due to improved performance and updated financial information •⚫ Transfer of €339 mn of loans from Stage 1 to Stage 2, mainly due to management overlays on sectors that are expected to be impacted by the prolonged geopolitical uncertainty and the persistent inflationary pressures as a result of soaring energy prices 31#32Stage 2 exposures well collateralised with low migration history € mn 2,078 Trade 191 2.4% Limited historic migration of Stage 2 to Stage 3 Real estate 242 2.7% 2.4% Other 243 2.8% 2.0% • Strong performance of Stage 2 exposures; 99% present no arrears Only 2% of stage 2 loans migrated to Stage 3 p.a. in the last two years 96% of stage 2 loans are collateralised Construction 326 1.6% Hotel & catering 508 1.7% • Low LTV1 portfolio 0.9% 0.3% FY2020 FY2021 1Q2022 2Q2022 Private individuals 568 3.3% Migraton to Stage 3 as a % of Stage 2 loans Jun 22 pro forma for HFS Provision coverage 81% with LTV1 < 100% (of which 74% with LTV1 <75%) 19% with LTV1 >100%; 97% of these present no arrears and 99% < 30 dpd Prudent management of credit risk; €0.5 bn of Stage 2 exposures has been classified as Stage 2 due to an overlay applied (staging overlay) €677 mn of stage 2 loans were restructured after exiting the moratorium schedule; 77% are expected to be eligible transfer to Stage 1 in 2023 LTV1 0-75% 75%-100% >100% Days past due 0 dpd 1-30 dpd >30 dpd Private Individuals Business 70% 10% 20% 75% 7% 18% Private Individuals Business 98% 99% 1% 1% 0% 1% 1) Loan to Value (LTV) is calculated as the Gross IFRS Balance to the indexed market value of the property. Under Pillar 3 disclosures LTV is calculated as the Gross IFRS Balance to the indexed market value of collateral. Collateral takes into consideration the mortgage amount registered in the land registry plus legal interest from registration date to the reference date 32#33Cost of risk of 41 bps for 2Q2022 1.18% 0.43% 0.57% 0.61% 0.21% 0.43% 0.75% 0.61% 0.40% -(0.04%) FY2020 FY2021 1H2021 1H2022 • bps 52 78 35 44 41 140 Charge (bps) 77 15 75 81 12 3-7- 51 50 17 12 71 =7= 56 36 35 36 10 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 Reversal -7 -9 (bps) -25 -46 -62 COVID-19 Interest on net NPEs not received in cash New lending Stage 3 Stage 1 & 2 Bank's IFRS 9 Macroeconomic assumptions Base line GDP rate Unemployment rate 2022 2.7% 6.2% 2023 3.0% 6.3% Cost of risk of 41 bps for 2Q2022 (€11 mn) includes: • • 18 bps (c.€5 mn) reflecting management overlays on sectors (eg: tourism, private individuals, transportation, construction and real estate) that maybe impacted by the ongoing geopolitical uncertainty and soaring energy prices resulting to pressure on domestic economy 5 bps (€1 mn) release due to the improved 2022 macro outlook for the Cypriot economy, compared to 1Q2022 projections 2022 COR outlook • Cost of risk expected at c.50 bps in 2022 33#34REMU: Asset disposals recovering towards pre-pandemic levels Sales of €99 mn in 1H2022 Sales € mn (contract prices¹) #258 # 170 # 387 # 373 110 €99 mn organic sales in 1H2022; comfortably above Book Value 110% 89% 104% 120% 109% 95% 92% 87% Organic sales 1) 27 85 99 99 19 19 99 61 Commercial Residential Land 1H2019 1H2020 1H2021 1H2022 Total Organic Sales 1H2022 # properties Net Proceeds / BV Gross Proceeds / OMV REMU stock reduced to €1.15 bn as at 30 Jun 2022 Group BV (€ mn) Properties sold exceed properties acquired since 2017 Group BV (€ mn) #2,732 #1,951 #3,388 #2,860 1,653 1,473 1,215 1,146 1,350 (1,461) 1,438 (181) 1,146 Dec 17 Dec 20 Dec 21 Jun 22 1 Jan 2017 Additions Sales Impairment & FV loss 30 Jun 2022 Amounts as per Sales Purchase Agreements (SPAs) 34#35Medium-term strategic targets 35#36Delivering on our priorities Priorities set in 2020 What we have achieved since then... Complete de-risking while managing post-pandemic NPE inflow Deliver sustainable profitability Enhance operating efficiency 81% NPE reduction (organic and inorganic); NPE ratio approaching 5% on track with 2022 target Medium-term ROTE target of c.7% achieved in 1H2022, two years ahead of schedule; path to double digit ROTE in 2023 Completion of Voluntary Staff Exit Plans and 30% branch network reduction Modernise BOC franchise, including IT and digital investment 26% increase in active digital users Address challenges from low rates and surplus liquidity Initiate MREL issuance and refinance Tier 2 Optimise capital management 1) Subject to regulatory approvals and market conditions NII reverting to growth after bottomed out Regained market access; inaugural MREL issuance and T2 refinancing Stable capital after absorbing restructurings; positioned for resumption of dividend payments¹ 36#37Upgrades to medium term guidance on strong performance and changing macro dynamics Profitability November 2020 August 2022 2025 Targets Medium Term target set in: February 2022 2024 Targets 2025 Targets May 2022 2025 Targets Return on Tangible Equity¹ c.7% in 2024 >10% in 2025 >10% from 2024 >10% from 2023 onwards Capital Capital return Asset Quality Cost to Income ratio² Mid-50s 50%-55% 50%-55% NPE Ratio Cost of risk Dividends CET1 ratio c.5% <3% <3% 40-50 bps 70-80 bps 40-50 bps No guidance Consider from 2023 onwards³ Consider meaningful dividends from 2023 onwards³ At least 13% Supported by CET1 ratio of 13.5%-14.5% 12 1) ROTE is calculated as Profit after Tax divided by (Shareholders' equity minus Intangible assets) 2) Calculated using total operating expenses which comprise staff costs and other operating expenses. Total operating expenses do not include the special levy on deposits or other levies/contributions and do not include any advisory or other restructuring costs. 32 3) Subject to performance and regulatory approvals 4) Subject to regulatory approvals and market conditions c.50% <3% 40-50 bps Meaningful from 2023 onwards 4 Supported by CET1 ratio of 13.5%-14.5% 37#38Key Information and Contact Details Contacts Investor Relations & ESG Tel: +35722122239, Email: [email protected] Annita Pavlou Manager Investor Relations & ESG Tel: +357 22 122740, Email: [email protected] Elena Hadjikyriacou ([email protected]) Andri Rousou ([email protected]) Stephanie Olympiou ([email protected]) Dafni Georgiou ([email protected]) Executive Director Finance & Legacy Eliza Livadiotou, Tel: +35722 122128, Email: [email protected] Credit Ratings Standard & Poor's Global Ratings: Long-term Issuer Credit Rating: Affirmed at "B+" on 28 June 2022 (positive outlook) Short-term Issuer Credit Rating: Affirmed at "B" on 28 June 2022 Long-term Resolution Counterparty Rating: Affirmed at "BB" on 28 June 2022 Short-term Resolution Counterparty Rating: Affirmed at "B" on 28 June 2022 Fitch Ratings: Long-term Issuer Default Rating: Affirmed at "B-" on 14 December 2021 (positive outlook) Short-term Issuer Default Rating: Affirmed at "B" on 14 December 2021 Viability Rating: Affirmed at "b-" on 14 December 2021 Moody's Investors Service: Long-term Deposit Rating: Upgraded to "Ba3" on 15 December 2021 (positive outlook) Short-term Deposit Rating: Affirmed at "Not Prime" on 15 December 2021 Baseline Credit Assessment: Upgraded to "b2" on 15 December 2021 Counterparty Risk Assessment: Upgraded to "Ba2(cr)"/ Affirmed at "Not-Prime (cr)" on 15 December 2021 Local and foreign currency long-term Counterparty Risk Rating: Upgraded to "Ba2" on 15 December 2021 Local and foreign currency short-term Counterparty Risk Rating: Affirmed at "Not-Prime" on 15 December 2021 Visit our website at: www.bankofcyprus.com Listing: LSE - BOCH, CSE - BOCH/TPKH, ISIN IE00BD5B1Y92 38#39APPENDIX Environmental Social Governance 39#40ESG strategy - Lead the transition to a Sustainable Future Robust Infrastructure Set-up of dedicated Executive Committee to oversee ESG agenda Launch of ESG Targets Formulation of dedicated workgroups to ensure delivery Improvement of MSCI ESG rating: AA rating assigned to BOCH 1) D NEUTRAL Carbon neutral by 2030 Net Zero by 2050 . Carbon footprint calculation and formulation of decarbonisation plan with specific interim targets • Data gap analysis and initiation of data collection from customers • Identification of climate & environmental risks, to integrate into Bank's Risk Management EXCO and extended EXCO • Green Asset Ratio & Green Mortgage Ratio Steadily increase Continuously enriching environmentally friendly products in line with Recovery & Resilience Plan of Cyprus ≥30% women in Group's management bodies1 by 2030 • 26% as at 30 June 2022 40% at Board level as at 30 June 2022 38% for key positions below Extended EXCO as at 30 June 2022 Committed to Diversity & Equal Opportunities 40 40#41Organisational 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 • • • Initiation of decarbonisation of the Group's operations and portfolio in 2022 Approval of Green Lending Policy based on the Green Loan Principles (GLPs) Environmental products launched in line with ESG Strategy, under Fil-eco product scheme 。 Car Hire Purchase for a new hybrid/electric car o Home renovation for energy efficiency upgrade 。 Energy loan for the installation of energy saving systems (e.g: photovoltaic systems) • 555kWh energy savings for 1H2022 1) c.€142k investment in energy-saving for 1H2022 • Environment Social Governance BOC Oncology centre cumulative investment of c.€70 mn since 1998 • 60% of diagnosed cancer cases in Cyprus are being treated at the Centre Network #SupportCy1 142 members contributing >€780k to the society (monetary, products and services) since Mar 2020 Bank of Cyprus Cultural Foundation Promoting cultural heritage IDEA Non-profit organization, acting as incubator accelerator for start-ups since establishment 82 new companies created, 6,500 entrepreneurs trained €3.75 mn invested in startup business creation Training and Development . >3,200 FTEs; continuing upgrading skill set through training and development opportunities Robust governance structure to oversee ESG agenda; progress on implementation is monitored by Sustainability Committee and Board of Directors • 40% at Board level are female as at 30 June 2022 38% for key positions below Extended EXCO are female as at 30 June 2022 SupportCY is a network of companies and NGOs, created and coordinated by Bank of Cyprus since March 2020, with the aim to support the public services performing frontline duties during the Pandemic. SupportCY has become the leading network for offering assistance and support to the Society in general. The members on 30/06/22 were 142 companies and NGOs. MSCI ESG RATINGS AA CCC B BB BBB A AA AAA 41#42APPENDIX Macroeconomic overview 42#43EU Recovery and Resilience Facility (RRF) To mitigate the socioeconomic impact of the pandemic & to strengthen the resilience and competitiveness of the Cypriot economy €1.2 bn from EU mechanism €1.1 bn additional funds mobilised in Cyprus 58 reforms 75 investments 41% Green Transition 23% 36% Digital Transition Other m 7.1% increase in GDP for 2022-2026 2.5% increase in employment for 2021-2026 +11,000 new high value-added jobs preparing for a green and digital era • 75 new investments to be initiated including: Interconnection between Cyprus, Greece and Israel (€100 mn) Promotion of diversification and competitiveness via introduction of financing schemes to SMEs and start-ups (€52 mn) • Promotion of sustainable transport (eg: hybrid vehicles) (€49 mn) 58 reforms to be introduced including: Modernising public and local authorities, improving efficiency in judicial system Introducing green taxation Establishing e-government 43#44Appendix- Recovery and Resilience Facility Estimated Budget Policy axis/ Component 1 Public Health and civil protection- lessons learnt from the pandemic 1.1 Resilient and effective health system and enhanced civil protection 2 Accelerated transition to a green economy 2.1 Climate neutrality, energy efficiency and renewable energy penetration 2.2 Sustainability transition 2.3 Smart and sustainable water management Estimated budget (€ mn) % of total estimated budget 74.1 6.1% 74.1 6.1% 447.6 37.1% 269.3 22.3% 91.3 7.6% 87.3 7.2% 3 Strengthening the resilience and competitiveness of the economy 422.3 35.0% 3.1 New growth model and diversification of the economy 166.4 13.8% 3.2 Enhanced research and innovation 64.0 5.3% 3.3 Business support for competitiveness 78.4 4.3% 3.4 Modernising public and local authorities, making justice more efficient and fighting corruption 96.0 7.9% 3.5 Safeguarding fiscal and financial stability 44.5 3.7% 4 Towards a digital economy 4.1 Upgrade infrastructure for connectivity 4.2 Promote e-government 5 Labour market, education and human capital 89.4 7.4% 53.0 4.4% 36.4 3.0% 172.9 14.3% 5.1 Educational system modernization, upskilling and retraining 5.2 Labour market 94.0 7.8% 78.9 6.5% Total RRP Green transition Digital transition 1,233 100% c.500 c.40% c.289 c.23% 44#45Limited economic effects on BOCH from Russia-Ukraine war Direct Impact • • • • No banking operations in Ukraine/Russia since 2015; <€1 mn net legacy exposure as at 30 Jun 2022 No exposure to Russian bonds nor to banks which are the subject of sanctions Limited direct exposure to loans (c.€108 mn of which c.€95 mn is performing) related to Russia, Belarus and Ukraine; granular portfolio and secured mainly by real estate properties in Cyprus; none of which are under sanctions Only c.3% of the Group's 2021 net F&C income is from Russian, Ukrainian and Belarusian Ultimate Beneficiary Owners Exposure to Russia, Belarus & Ukraine 5% of deposits c.1% of net loans only c.3% of 2021 net F&C income Indirect Impact • The economic effects are expected to come from higher inflation and a slowdown in activity, with tourism sector likely most impacted Tourism sector recovering to pre-pandemic levels. Stronger than anticipated tourist arrivals from markets other than Russia (like UK, Greece, Germany) Cyprus is not an importer of Russian oil/gas though it is indirectly affected by pricing pressures in the international energy markets. Cyprus mainly imports oil from other countries (like Greece, Italy, the Netherlands), though a steady increase in contribution from renewables is noted • Services accounting for c. 10% of GDP1 of which some relate to Russia/Ukraine and thus expected to be adversely impacted; no credit risk exposure as sector not levered • Between 2018-2020, Cyprus recorded net FDI outflow to Russia; Special Purpose Entities make a large contribution to Cypriot FDI; these entities have similar inward and outward income due to the structure of their financial assets and liabilities Shipping in Cyprus is German dominated, so there will be no impact on this sector from the sanctions on Russian ships 1) In accordance with 2020 structure of the economy 45#46APPENDIX Additional asset quality slides 46 46#47Well diversified loan portfolio with high quality collateral Gross loans (excluding legacy)¹ by business sector of €9.92 bn € bn Private Individuals Hotels & Catering 1.21 Real Estate 1.06 Trade 0.94 Professional 0.74 & Other services 72 1) 2) Other sectors 0.65 Construction 0.53 Manufacturing 0.40 Housing 3.70 Other Private individuals Private individuals- Business LTV2 0.69 4.39 housing €3.70 bn other €0.69 bn €5.53 bn <80% 88% 36% 69% >80% 12% 64% 31% Private Individuals: €4.39 bn • Housing performing loans: €3.70 bn . Low LTV² housing portfolio 88% of portfolio with LTV²<80% • Other: €0.69 bn • 63% secured portfolio of which: Business: €5.53 bn • 69% of business portfolio with LTV² <80% 57% with property • 43% with other type of collateral Gross loans as at 30 June 2022 of Corporate (incl. IB and W&M and Large and International corporate), SME and Retail Loan to Value (LTV) is calculated as the Gross IFRS Balance to the indexed market value of the property. Under Pillar 3 disclosures LTV is calculated as the Gross IFRS Balance to the indexed market value of collateral. Collateral takes into consideration the mortgage amount registered in the land registry plus legal interest from registration date to the reference date 47#48Continuous progress on NPE reduction across all segments Focus shifts to Retail € mn 600 Corporate 187 €211 mn Terminated Corporate 24 SME 35 €69 mn Terminated SMEs 34 Retail 137 €320 mn Corporate Dec 21 Inflows Exits Jun 22 HFS Pro forma for HFS SME Dec 21 Inflows Exits Jun 22 HFS Pro forma for HFS Terminated Retail 183 Jun 22 pro forma for HFS Retail Dec 21 Inflows Exits Jun 22 Pro forma (20) 89 99 69 69 (28) Jun 2022 Pro forma NPE ratio 4.4% 281 14 NPE coverage 83% (64) NPE total coverage 127% 231 (20) 211 Jun 2022 Pro forma 113 NPE ratio 6.0% NPE coverage 67% NPE total coverage 144% Jun 2022 Pro forma 949 NPE ratio 7.1% 8 (109) NPE coverage 848 ➤ Retail Housing 39% HFS (528) ➤ Retail Other 50% 320 for HFS NPE total coverage 129% 48#49Gross 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 forma for HFS NPEs by customer type (€ mn) 3,086 805. 1,343 1,247 1,121 1,168 366 355 341 619 600 583 539 507 88 105 232 113 104 89 436 66 69 67 67 56 215 182 164 155 Dec 20 Dec 21 Mar 22 Jun 22 Jun 22 Retail other Retail Housing SMEs Large and International corporate Corporate pro forma for HFS 49 49#5072 1) 2) NPE Coverage and Total coverage by segment Coverage and collateral maintained Tangible Collateral¹ Allowance for expected loan credit losses Large and International Corporate €155 mn SME €69 mn Retail-Housing €232mn Retail-Other €88 mn corporate €56 mn 105% 104% 106% 104% 187% 175% 179% 180% Total €600 m n 57% 64% 63% 144% 64% 136% 139% 134% 133% 131% 130% 131% 128% 124% 124% 122% 123% 128% 128% 130% 73% 70% 73% 77% 87% 86% 62% 62% 60% 69% 69% 70% 71% 86% 92% 73% 34% 34% 41% 39% 130% 111% 115% 117% 71% 70% 65% 65% 63% 64% 66% 67% 62% 62% 62% 59% 59% 58% 59% 50% 46% 45% 44% 39% Dec 21 Mar 22 Jun 22 Jun 22 pro Dec 21 Mar 22 Jun 22 Jun 22 pro Dec 21 Mar 22 Jun 22 Jun 22 pro Dec 21 Mar 22 Jun 22 Jun 22 forma 2 forma 2 forma 2 pro forma² Dec 21 Mar 22 Jun 22 Jun 22 pro forma Dec 21 Mar 22 Jun 22 Jun 22 pro 2 forma 2 Restricted to Gross IFRS balance Pro forma for HFS 50#511) 2) 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 adjustment on initial recognition 10,902 10,815 10,678 10,683 10,708 12,055 12,031 Residual Fair value adjustment on initial recognition 145 149 178 181 185 226 230 B. Gross Loans 11,047 10,964 10,856 10,864 10,893 12,281 12,261 B1. Loans with no arrears² 9,840 9,681 9,492 9,385 9,268 9,230 9,149 B2. Loans with arrears but not NPES 39 36 21 31 36 39 26 1-30 DPD 25 31 16 23 29 27 21 31-90 DPD 14 5 5 8 7 12 5 B3. NPES With no arrears Up to 30 DPD 31-90 DPD 91-180 DPD 181-365 DPD Over 1 year DPD 1,168 1,247 1,343 1,449 1,589 3,012 3,086 307 312 348 363 413 536 548 6 3 4 5 11 15 16 6 10 10 11 16 35 26 13 11 19 24 31 18 18 28 40 49 41 16 31 81 808 871 913 1,005 1,102 2,377 2,397 NPE ratio (NPEs / Gross Loans) 10.6% 11.4% 12.4% 13.3% 14.6% 24.5% 25,2% Allowance for expected loan credit losses (including residual fair value adjustment on initial 677 734 792 849 947 1,869 1,902 recognition¹) Gross loans coverage 6% 7% 7% 8% 9% 15% 16% NPES coverage 58% 59% 59% 59% 60% 62% 62% Comprise (i) loan credit losses for impairment of customer loans and advances, (ii) the residual fair value adjustment on initial recognition of loans acquired from Laiki Bank and on loans classified at FVPL, and (iii) loan credit losses on off-balance sheet exposures disclosed on the balance sheet within other liabilities Loans with "non-material" arrears as at 31 Dec 2021 which are calculated based on the new EBA regulation on Definition of Default implemented as of 1 Jan 2021, affecting the calculation of Days-Past-Due' 51#52% of total 9% 1.18 1.04 1.02 1.03 0.97 Trade Gross loans by economic activity (€ bn) 4% Analysis of gross loans and NPE ratio by Economic activity 0.44 0.36 0.41 NPE ratio by economic activity Manufacturing 0.44 0.42 1.19 1.18 1.20 1.23 1.22 Hotels & Restaurant 6% 11% 11% 0.79 0.55 0.62 0.60 0.57 Construction 1.27 1.30 Real Estate 1.18 1.19 1.17 Trade Manufacturing Hotels & Restaurant Construction Real Estate Private Individuals Professional and other services Other sectors 5.83 46% Dec 20 Dec 21 Mar 22 Jun 22 Jun 22 pro forma for HFS 5.06 5.06 5.10 4.71 0.89 0.71 0.80 0.79 0.76 7% 6% Private Individuals Professional and Other sectors other services 1.2% 52 0.67 0.66 0.67 0.67 0.66#53Balance sheet de-risking results in a smaller but safer loan book Net Loans: Performing 1 vs Legacy € bn Interest Income on Loans: Performing 1 vs Legacy € mn 68 80 72 22 36% 5.64 82 81 10.73 10.36 10.06 10.23 10.37 79 10.12 77 77 77 1.79 1.36 0.68 0.66 0.63 0.40 (4% 9 17 10 75 10 9 15.62 64% 9.98 8.94 9.00 9.38 9.57 9.74 9.72 96% 65 67 69 69 • Dec 16 Legacy Dec 19 Dec 20 Performing 1 Dec 21 Mar 22 Jun 22 Jun 22 pro forma for HFS 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 Legacy Performing 1 72 12 2Q2022 pro forma for HFS Interest income of performing 1 book increased at €72 mn, reflecting the beginning of loan book repricing as interest rates start to rise and increased volume of loans • Interest income of legacy book at €9 mn broadly flat qoq • Interest on Net NPEs not received in cash, fully provided 1) Non legacy includes corporate (incl. IB and W&M and Large and International corporate), SME and Retail 53#541) 2) Capital & balance Sheet Profitability Risk adjusted yield will rise as Legacy book reduces Performing¹ Legacy Group 1H2022 1H2022 1H2022 Interest Income on loans 140 18 158 (€ mn) (pre FTP) Loan credit losses (€ mn) (6) (18) (23) Interest Income net of loan 135 135 credit losses (€ mn) • Cost of Risk 0.11% 2.92% 0.43% Effective Yield Risk adjusted Yield² 2.96% 5.38% 3.12% 2.85% 0.04% 2.66% Average Net Loans (€ mn) RWA Intensity 9,559 663 10,222 37% 99% 41% Large and International RRD corporate, Corporate IB, W&M REMU SME and Retail Banking Non legacy includes corporate (incl. IB and W&M and Large and International corporate), SME and Retail Interest Income on loans net of allowance for expected loan credit losses/Average Net Loans Overseas non core Performing Book is expected to grow and to increasingly drive Group results Legacy book revenues predominantly driven by loan credit losses unwinding (but offset via loan credit losses) Interest on Net NPEs not received in cash, fully provided (€5 mn in 1H2022) As Legacy book reduces: • • Group risk adjusted yield expected to rise Group Risk intensity expected to fall supporting CET1 ratio build 54#551) Rescheduled Loans¹ Rescheduled loans¹ by customer type (€ bn) 2.73 Stage 1 0.97 2.09 Stage 2 1.68 1.64 0.81 1.58 Stage 3 0.44 0.43 0.39 0.37 POCI 0.53 0.36 0.17 0.16 0.15 0.17 0.15 0.14 FVPL 0.41 0.34 0.51 0.52 0.52 0.15 0.45 Total 0.36 0.40 0.42 0.40 Dec 19 Dec 20 Dec 21 Mar 22 Jun 22 Retail housing Retail other SMEs Large and International corporate Corporate Rescheduled loans 1 % gross loans by customer type 13% 17% 17% 17% 16% 15% 24% 23% 23% 28% 7% Rescheduled loans are presented net of fair value 20% 14% 12% 12% 24% 21% 12% 10% 10% 23% 22% 14% 13% 12% Rescheduled loans 1-Asset Quality 30 Jun 2022 Fair value of collateral and credit enhancements Loans and advances to customers Cash Corporate Global Corporate SMEs Retail Housing Retail Consumer Net collateral Dec 19 Mar 22 Dec 20 Jun-22 Dec 21 Securities Letters of credit / guarantee Property Other Surplus collateral € '000 819,933 491.521 53,714 212,365 1,577,533 30 Jun 2022 (€ mn) 473 552 140 16,179 312 (8,397) 9,259 55#56REMU- 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 Sales €1.69 bn 505 160 330 1,215 26 (87) 1,146 1,146 (8) 65 77 260 24 246 238 249 179 345 100 91 99 474 149 2016 2017 2018 2019 2020 2021 1H2022 01 Jan 2022 Additions Sales HFS Cyreit Organic sales # properties Overseas Residential Impairment 30 Jun 2022 loss & fair value losses Commercial & Manufacturing BV by property type Hotels Golf Land Breakdown of cumulative sales1 by on-boarding year (€ mn) 359 646 397 174 91 5 19 1,691 % Sales of vintage stock (BV)4 67% 57% 62% 51% 3 Legacy 2016 2017 2019 2021 2018 2020 3) 72 1) Amounts as per Sales purchase Agreements (SPAs) 4) 2) Number of properties include 421 properties from Project Helix 3 and 6 from Project Sinope 373 properties sold in 1H2022 Strong pipeline of €81 mn by contract value as at 30 June 2022, of which €41 mn related to SPAs signed Legacy properties relate to properties that were on-boarded before REMU set-up in January 2016 The BV of the properties disposed at the date of disposal as a proportion of the: BV of the properties disposed at the time of the disposal plus the BV of the residual properties managed by REMU as at 30 June 2022 56#57Legacy 2016 REMU-the engine for dealing with foreclosed assets On-board assets in REMU at conservative c.25%-30% discount to OMV BV € mn Cumulative sales by property type; 38% of sales relate to land Sales contract price 100% 2017 2018 2019 2020 2021-22 152 438 203 146 94 76 37 1,146 72% avg on-boarded value as a % of OMV1 71% 72% 72% 72% Real Estate Market property prices up 3.2% yoy in 1Q20222 Central Bank Residential Property Price index 120.0 110.0 100.0 99.1 100.0 93.2 90.0 80.0 70.0 60.0 50.0 40.0 30.0 2010Q1 Q12012 Q12013 Q12014] Q12015 Residential Propert Price index (2010Q1=100) 1) Open market value at on-boarding date 2) Based on Residential price index published by Central Bank dated 1 July 2022 3) Based on data from Land of Registry- Sales contracts % change y-o-y (RHS) 6% 10% Land 38% 16% €1.69 bn 8% 22% Commercial Hotels Residential Cyreit Overseas Sales contracts (excl. DFAs) ³ for 1H2022 up c.40% yoy 4.0 10.366 10.347 3.2 2.0 9.242 8.734 +39% 0.2 0.0 7.968 7.063 81.2 -2.0 5,885 4,875 6,656 6.263 -4.0 4.952 6,328 4,983 4.501 5,250 3,248 -6.0 3,603 3,062 -8.0 4,367 4,481 -10.0 1,349 1,813 2,406 2,985 3,691 3,015 1,439 -12.0 2015 2016 2017 2018 2019 2020 2021 1H2021 1H2022 Sales to Cypriots Sales to non-Cypriots 57#58APPENDIX Additional financial information 58#59Consolidated Balance Sheet Assets (€ mn) 30.06.2022 Cash and balances with Central Banks 9,905 31.12.2021 change Liability and Equity (€ mn) 30.06.2022 31.12.2021 change 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 securities, treasury bills and equity investments 2,102 2,139 -2% Customer deposits 18,450 17,531 5% Net loans and advances to customers 10,144 9,836 3% Debt securities in issue Stock of property 1,054 1,112 -5% Investment properties 102 118 -13% Other liabilities 299 303 -1% Subordinated liabilities 312 340 -8% 1,243 1,281 -3% Other assets 1,877 1,876 0% Total liabilities Non current assets and disposal groups held for sale 348 359 -3% Shareholders' equity 23,751 22,882 4% 1,850 1,839 1% Other equity instruments 220 220 Total assets 25,844 24,963 4% Total equity excluding non- 2,070 2,059 1% controlling interests Non controlling interests 23 22 3% Total equity 2,093 2,081 1% Total liabilities and equity 25,844 24,963 4% 59#60Balance sheet composition Total assets € bn 25.84 25.12 Other assets 2.25 (including HFS) 2.26 1.15 REMU properties 1.17 0.40 0.43 Legacy net loans AIEA Mix 2Q2022 1 9.72 Performing net loans 9.55 Total equity & liabilities € bn 25.84 25.12 1.24 Other 1.27 2.09 Equity 2.09 0.61 0.61 Wholesale 2.96 2.96 Funding from 0.49 Central Bank 0.53 Due to banks Securities² 2.10 Non- legacy¹ 2.07 0.31 43% net loans Due from banks 0.31 Liquids 54% AIEA: €22.4 bn 17.66 18.45 Customer deposits Cash and balances 9.33 9.91 with Central Banks 31 Mar 2022 30 Jun 2022 3% Legacy net loans 31 Mar 2022 30 Jun 2022 • • . Balance sheet size increased by 4% qoq to €25.84 bn mainly driven by 4% increase of customer deposits 54% of AIEA held in liquids: immediate NII benefit following the increase of ECB depo rate by 50 bps in Jul 2022 Performing net loans¹ increased by 2% qoq to €9.72 bn Pro forma for HFS, legacy net loans and REMU properties reduced to €0.40 bn and €1.15 bn respectively . Net loans to Deposits ratio (L/D) at 56% as at 30 June 2022 and 55% pro forma for HFS 1) Non-legacy includes of Corporate (incl. IB and W&M and Global Corporate), SME and Retail 2) Debt securities, treasury bills and equity investments 60#61Risk Weighted Assets- Regulatory Capital Risk Weighted Assets by Geography (€ mn) Reconciliation of Group Equity to CET1 30.06.22 € mn 30.06.22 31.12.19 31.12.20 31.12.21 31.03.22 30.06.22 Pro forma for HFS Cyprus 12,678 11,477 10,595 10,473 10,526 10,186 United Kingdom 48 23 0 0 Total equity Less: Intangibles Less: Deconsolidation of insurance entities 2,093 (30) (193)4 Greece 121 105 84 79 72 72 Less: Deconsolidation of other entities (13) Other 43 31 15 7 2 2 Less: Regulatory adjustments (60) RWAS 12,890 11,636 10,694 10,559 10,600 10,260 Less: Revaluation reserves and equity instruments transferred to AT1 (251) RWA intensity 61% 54% 43% 42% 41% 40% CET11 1,546 Risk Weighted Assets 10,600 CET1 ratio 1,4 14.6% Risk Weighted Assets by type of risk (€ mn) 30.06.22 31.12.20 31.12.21 31.03.222 30.06.223 Pro 31.12.19 31.12.20 31.12.21 31.03.22 30.06.22 form a for Total equity excl. non-controlling interests 2,051 2,059 2,069 2,070 Credit risk 11,547 10,505 9,678 9,543 9,585 HFS 9,245 CET1 capital 1,723 1,620 1,546 1,546 Market risk Tier I capital 1,943 1,840 1,766 1,766 Operational risk 1,343 1,131 1,016 1,016 1,015 1,015 Tier II capital 192 300 300 300 Total 12,890 11,636 10,694 10,559 10,600 10,260 Total regulatory capital (Tier I + Tier II) 2,135 2,140 2,066 2,066 7237 1) Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements Capital amounts and ratios include unaudited/unreviewed profits for the quarter ended 31 Mar 2022 Capital amounts and ratios include reviewed profits for the six months ended 30 Jun 2022 €105 mn of €193 mn relates to the Life insurance in-force business reserve 61#62Pro forma for HFS, RWA intensity reduced to 40% RWAs reduced to €10,260 mn as at 30 June 2022 pro forma for HFS RWAs Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Mar 22 Jun 22 Jun 22 Pro 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 decreased to 40% pro forma for HFS 85% 85% 73% 70% 61% 54% 43% 42% 41% 40% Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Mar 22 Jun 22 Jun 22 pro forma for HFS 62 62#63Overall capital requirements Overall capital requirements for 2021 and 2022 CET1 ratio Total capital ratio 15.01% 14.50% 10.08% 1.25% O-SII 1.00% 9.69% 1.25% 2.50% O-SII 1.00% CCB 1 2.50% 2.50% CCB 2.50% 3.26% Pillar 2R 3.00% Pillar 2R 1.69% 1.83% Tier 2 2.00% 2.00% AT1 1.50% 1.50% Total Pillar 1 4.50% 4.50% Pillar 1 Pillar 1 4.50% of 8% 4.50% 2021 2022 2021 2022 Overall capital Requirement CET1 and Total capital ratio minimum capital requirements for 2022 set at to 10.08% and 15.01% respectively, following c.26 bps² add-on in P2R due to ECB's prudential provisioning expectations and 25 bps phasing in of O-SII buffer P2R add-on is dynamic and can be reduced during 2022 on the basis of in-scope NPEs and level of provisioning . Decrease in P2G more than offsets P2R increase in CET1 ratio • New SREP requirements are effective from 1 March 2022 • Total O-SII buffer reduced by 50 bps to 1.5%; phasing-in of 25 bps on 1 January 2023 1) 2) In accordance with the legislation in Cyprus which has been set for all credit institutions the applicable rate of the CCB was fully phased in at 2.5% in 2019 Takes into consideration Helix 3 63#6472 1) 2) 34 3) 4) Buffer to MDA Restrictions Level & Distributable Items¹ CET1 Ratios 14.6% 447 bps c.10.1% <0.1% Unfilled AT1 + T2 capacity 10.1% CET1 ratio MDA threshold 30 Jun 2022 30 Jun 2022 Unfilled AT1 & T2 capacity CET1 ratio CET1 min requirement [ ] bps Distance to MDA • No prohibition applies to the payment of coupons on any AT1 capital instruments issued by the Company and the Bank • Significant CET1 MDA buffer as at 30 Jun 2022: 447bps (€473 mn) • M-MDA buffer as at 30 Jun 2022:367 bps (€389 mn)4 . • Following the 2021 SREP, the Company and the Bank are still be under equity dividend distribution prohibition for 2022 • Previous variable pay restriction was lifted Distributable Items definition per CRR Including phasing in of O-SII buffer (+25 bps). In November 2021, the Bank received notification from the CBC that the final O-SII buffer is reduced by 50 bps to 1.5%, therefore the phasing-in of the O-SII buffer on 1 January 2022 and 1 January 2023 has been revised to 0.25% for each period. Includes reviewed profits for the six months ended 30 Jun 2022 The SRMR2 introduces the Maximum Distributable Amount related to MREL (M-MDA). The SRB may set restrictions for banks that do not comply with the CBR, which under the new Banking Package is added on top of the MREL requirements expressed in TREA, preventing them from distributing more than the M-MDA via various actions (including dividend payments on CET1, variable remuneration and payments on AT1 instruments). The M-MDA is calculated against the binding interim requirement of 14.94% 64#65Cypriot business Loan market share at 41% in Jun 2022 •Loans Deposits 45.4% 41.1% 41.9% 41.9% 37.1% 38.8% Strong market shares in resident and non-resident deposits Residents Non-residents 41.2% 38.3% 37.3% 37.5% 35.8% 35.4% 35.2% 36.0% 35.3% 34.8% 34.9% 34.9% 33.5% 33.0% 31.5% 36.0% 35.1% 35.0% 32.8% 34.8% 35.8% 36.8% Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Mar 22 1 Jun 22 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Mar 22 Jun 22 Average contractual interest rates (bps) (Cy) Yield on Loans Cost of Deposits Customer spread Customer deposit rates (bps) (Cy) Time & Notice accounts Savings and Current accounts Cost of deposits 4 3 3 2 2 2 380 376 375 363 343 347 352 355 374 371 371 360 340 345 350 353 9 9 8 6 5 4 3 3 2 2 2 O 3Q2020 4Q2020 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 6 6 00 60 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 1) The market share as at 31 March 2022 was affected by the decrease in total loans in the banking sector, following RCB's intention to phase out its banking activities, and NPE disposal of a peer 65#66Income Statement bridge¹ for 1H2022 € mn Net interest income Net fee and commission income Net foreign exchange gains and net gains/(losses) on financial instruments Net gains/(losses) on derecognition of financial assets measured at amortised cost Insurance income net of claims and commissions Net gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties Other income Underlying basis NPE sales Other Statutory Basis 145 145 94 94 11 (1) 10 2 2 33 33 7 7 9 9 Total income Total expenses 299 1 300 (190) (1) (9) (200) Operating profit before impairment losses on financial instruments 109 (1) (8) 100 Loan credit losses (23) 23 Impairments of other financial and non-financial assets (13) 13 Credit losses on financial assets and impairment net of reversals of non-financial assets (37) (37) Provision for litigation and regulatory matters (1) 1 Profit before tax and non-recurring items 72 (1) (8) 63 Tax (12) (12) Profit attributable to non-controlling interests (1) (1) Profit after tax and before non-recurring items (attributable to the owners of the Company) Advisory and other restructuring costs - organic 59 (1) (8) 50 (5) 5 54 (1) (3) 50 Profit after tax - Organic (attributable to the owners of the Company) Provisions/net (loss)/profit relating to NPE sales Restructuring and other costs relating to NPE sales Restructuring costs – Voluntary Staff Exit Plan (VEP) Profit after tax - attributable to the owners of the Company 1) Please refer to section B1 "Reconciliation of the Interim Condensed Consolidated Income Statement for the six months ended 30 June 2022 between statutory and underlying basis" (1) 1 (3) 3 50 50 99 66#67Income Statement € mn Net Interest Income Net fee and commission income Net foreign exchange gains/(losses) on financial instruments Insurance income net of claims and commissions Net gains from revaluation and disposal of investment properties and on disposal of stock of properties Other income Total income Staff costs Other operating expenses Special levy on deposits and other levies/contributions Total expenses Operating profit Loan credit losses Impairments of other financial and non-financial assets Provisions for litigation, claims, regulatory and other matters Total loan credit losses, impairments and provisions Profit before tax and non-recurring items Tax Profit/(Loss) attributable to non-controlling interests Profit after tax and before non-recurring items (attributable to the owners of the Company) Advisory and other restructuring costs - organic Profit after tax - organic (attributable to the owners of the Company) Provisions/net (loss)/profit on NPE sales Restructuring and other costs Profit after tax (attributable to the owners of the Company) 2Q2022 1Q2022 qoq% 74 71 4% 15725 50 44 14% 6 -3% 654 16 1% -59% 19% 153 146 5% (50) (50) 1% (37) (36) 2% (7) (10) -33% (94) (96) -2% 59 50 18% (11) (12) -6% (8) (5) 58% (1) 66% (20) (17) 14% 39 33 20% (6) (6) 10% (1) 32 27 18% (4) (1) 219% 28 26 8% 1 (1) -172% (4) -77% 29 21 35% 67#68Analysis 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 3 3 3 2 91 94 92 95 91 94 Trading Investment Derivative financial instruments 8 4 2 2 2 2 Other investments at fair value through profit or loss Total Interest Income 99 98 94 97 93 96 Analysis of Interest Expense (€ mn) Customer deposits (2) (2) (1) (1) (1) (1) Funding from central banks and deposits by banks Loan stock 0 0 0 0 0 (6) (6) (8) (8) (7) (7) Repurchase agreements 0 0 0 0 Negative interest on loans and advances to banks and central banks (5) (8) (9) (10) (10) (10) (13) (16) (18) (19) (18) (18) Derivative financial instruments Total Interest Expense (10) (6) (5) (5) (4) (4) (23) (22) (23) (24) (22) (22) 68#69Income Statement by business line for 1H2022 € mn Net interest income/(expense) Net fee & commission income/(expense) Other income Total income Total expenses Operating (loss)/ profit Loan credit losses of customer loans net of gains/(losses) on derecognition of loans and changes in expected cash flows Impairment of other financial and non financial instruments Provision for litigation, claims, regulatory and other matters (Loss)/profit before tax Tax Profit attributable to non controlling interest Profit/(loss) after tax and before non- recurring items (attributable to the owners of the Company) Consumer SME Corporate Banking Banking Banking Large and International corporate Banking International Wealth & Markets RRD REMU Insurance Treasury Other Total 44 1800 10 14 28 31 30 6 8 4 1000 16 (12) 14 145 28 3 4 (4) 1 14 94 1 1 3 12 31 7 5 60 75 20 37 35 44 41 3 20 27 22 19 299 (80) (11) (14) (12) (15) (3) (17) (10) (12) (7) (9) (190) (5) 9 223 23 23 26 3 (10) 15 15 10 109 1 (1) (4) (17) (2) (23) (7) (6) (13) (1) (1) (5) 10 22 19 26 (14) (17) 15 15 1 72 1 (1) (3) (2) (3) 2 2 (1) (2) (5) (12) (1) (1) (4) 9 19 17 23 (12) (15) 14 13 (5) 59 69#70Income statement for insurance businesses for 1H2022 eurolife Genikes Insurance € mn 1H2022 € mn Gross written premiums (GWPS) Reinsurance premium 1H2022 73.5 Gross written premiums (GWPS) 32.1 Reinsurance premium (17.0) (15.5) Change in provision for unearned premiums (0.3) Commissions from reinsurers and other insurance income 5.3 Investment income and gains from investments and other assets (43.0) Commissions from reinsurers and other insurance income Total net income 4.8 19.6 Net gains/(losses) from impairment of assets 0.1 Gross payments to policyholders (6.1) Total net income Gross payments to policyholders 20.4 Reinsurers' share of payments to policyholders 1.9 (33.7) Gross change in insurance contract liabilities (1.7) Reinsurers' share of payments to policyholders 4.1 Gross change in insurance contract liabilities 53.0 Reinsurers' share in the change of insurance contract liabilities Commissions paid to agents and other selling costs 1.2 (3.9) Reinsurers' share in the change of insurance contract liabilities (2.3) Staff costs (2.9) Commissions paid to agents and other selling costs (13.4) Other operating costs (2.0) Staff costs (3.0) Loss from revaluation and/or sale of investments (1.9) Other operating costs (4.0) Provision for impairment of financial assets (0.2) Total net expenses Profit before tax 0.7 21.1 Tax expense Profit after tax (1.7) 19.4 Total net expenses Profit before tax Tax expense Profit after tax (15.6) 4.0 (0.7) 3.3 Income statement based on the statutory financial statements of Eurolife and GIC and including transactions with the Bank and does not include change in value of in-force business net of tax which is only recognised at Group level 70#71Analysis of Deposits Deposits by Currency (€ bn) 18.45 16.69 1.29 17.53 17.66 16.53 -0.29-0.10 0.31-0.11 0.32 0.32-0.09 1.20 0.29-0.11 1.37 1.39 1.52 0.08 15.01 14.93 Dec 19 Deposits by Type (€ bn) Jun 22 8% 2% Other Currencies 0% 15.74 15.86 16.53 GBP USD EUR 90% Dec 20 Dec 21 Mar 22 Jun-22 18.45 17.53 17.66 16.69 16.53 7.59 8.15 9.22 9.32 10.05 31% Current & demand accounts 1.57 55% 1.97 2.42 2.52 2.64 Savings accounts 14% 7.53 6.41 5.89 5.82 5.76 Time deposits Dec 19 Dec 20 Dec 21 Mar 22 Jun 22 Deposits by customer Sector (€ bn) 16.69 10.15 0.69 0.80 5.05 Dec 19 17.53 16.53 17.66 18.45 4% 29% Retail 10.54 11.06 11.22 11.45 SME 5% 0.85 0.60 0.63 0.88 0.65 0.86 0.82 0.91 Large and International corporate 62% 4.54 4.96 4.93 5.27 Corporate Dec 20 Dec 21 Mar 22 Jun 22 71#72APPENDIX Glossary & Definitions 72#73Glossary & Definitions Advisory and other restructuring costs Allowance for expected loan credit losses (previously 'Accumulated provisions') AIEA AT1 Average contractual interest rates Book Value Basic earnings/(losses) after tax and before non-recurring items per share (attributable to the owners of the Company) Carbon neutral CET1 capital ratio (transitional basis) CET1 fully loaded (FL) Cost of Funding Cost to Income ratio Cost of Risk CRR DD DFAs DFES 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 Old T2 Capital Notes, where applicable Comprises (i) allowance for expected credit losses (ECL) on loans and advances to customers (including allowance for expected credit losses on loans and advances to customers held for sale), (ii) the residual fair value adjustment on initial recognition of loans and advances to customers (including residual fair value adjustment on initial recognition on loans and advances to customers classified as held for sale), (iii) allowance for expected credit losses for off-balance sheet exposures (financial guarantees and commitments) disclosed on the balance sheet within other liabilities, and (iv) the aggregate fair value adjustment on loans and advances to customers classified and measured at FVPL. This relates to the average of 'interest earning assets' as at the beginning and end of the relevant quarter. Average interest earning assets exclude interest earning assets of any discontinued operations at each quarter end, if applicable. Interest earning assets include: cash and balances with central banks (including cash and balances with central banks classified as non-current assets held for sale), plus loans and advances to banks, plus net loans and advances to customers (including loans and advances to customers classified as non-current assets held for sale), plus 'deferred consideration receivable' included within 'other assets', plus investments (excluding equities and mutual funds) AT1 (Additional Tier 1) is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013, as amended by CRR II applicable as at the reporting date Interest rates on cost of deposits were previously calculated as the Interest Expense over Average Balance. The current calculation which the Bank considers more appropriate is based on the weighted average of the contractual rate times the balance at the end of the month. The rates are calculated based on the month end contractual interest rates. The quarterly rates are the average of the three quarter month end contractual rates. BV= book value = Carrying value prior to the sale of property. Basic earnings/(losses) after tax and before non-recurring items per share (attributable to the owners of the Company) is the Profit/(loss) after tax and before non-recurring items (as defined below) (attributable to the owners of the Company) divided by the weighted average number of shares in issue during the period, excluding treasury shares. The reduction and balancing (through a combination of offsetting investments or emission credits) of greenhouse gas emissions from own operations. CET1 capital ratio (transitional basis) is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013, as amended by CRR II applicable as at the reporting date The CET1 fully loaded (FL) ratio is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013, as amended by CRR II applicable as at the reporting date. Effective yield of cost of funding: Interest expense of all interest bearing liabilities after hedging, over average interest bearing liabilities (customer deposits, funding from the central bank, interbank funding, subordinated liabilities). Historical information has been adjusted to take into account hedging. Cost-to-income ratio comprises total expenses (as defined) divided by total income (as defined). Loan credit losses charge (cost of risk) (year-to-date) is calculated as the annualised 'loan credit losses' (as defined) divided by average gross loans. The average gross loans are calculated as the average of the opening balance and the closing balance, for the reporting period/year Default Definition. Debt for Asset Swaps. Debt for Equity Swaps. 73#74Glossary & Definitions Digitally engaged customers ratio Digital transactions ratio DTA DTC EBA ECB Effective yield Effective yield of liquid assets FTP GBV Gross Loans Gross Sales Proceeds Group 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 banking app, browser and ATMs) to perform banking transactions, as well as digital enablers such as a bank-issued card to perform online card purchases, based on an internally developed scorecard This is the ratio of the number of digital transactions performed by individuals and legal entity customers to the total number of transactions. Transactions include deposits, withdrawals, internal and external transfers. Digital channels include mobile, browser and ATMs. Deferred tax asset Deferred Tax Credit European Banking Authority European Central Bank Interest Income on Loans/Average Net Loans Interest income on liquids after hedging, over average liquids (Cash and balances with central banks, placements with banks and bonds) Fund transfer pricing methodologies applied between the business lines to present their results on an arm's length basis Gross Book Value Gross loans comprise: (i) gross loans and advances to customers measured at amortised cost before the residual fair value adjustment on initial recognition (including loans and advances to customers classified as non-current assets held for sale) and (ii) loans and advances to customers classified and measured at FVPL adjusted for the aggregate fair value adjustment Gross loans are reported before the residual fair value adjustment on initial recognition relating mainly to loans acquired from Laiki Bank (calculated as the difference between the outstanding contractual amount and the fair value of loans acquired) amounting to €145 mn as at 30 June 2022 (compared to €149 mn at 31 March 2022 and €178 mn at 31 December 2021). Additionally, gross loans include loans and advances to customers classified and measured at fair value through profit or loss adjusted for the aggregate fair value adjustment of €313 mn as at 30 June 2022 (compared to €312 mn at 31 March 2022 and €336 mn at 31 December 2021). Proceeds before selling charge and other leakages The Group consists of Bank of Cyprus Holdings Public Limited Company, "BOC Holdings" or the "Company", its subsidiary Bank of Cyprus Public Company Limited, the "Bank" and the Bank's subsidiaries. 74#75Glossary & Definitions IB, W & M IBU Impact of parallel shifts in interest curves Legacy exposures Leverage Ratio Exposure (LRE) Liquid assets Loan credit losses (PL) (previously 'Provision charge') Loan to Value ratio (LTV) Market shares MSCI ESG Rating Net Proceeds Net fee and commission income over total income Net interest margin (NIM) Net loans and advances to customers Net performing loan book Net zero emissions International Banking, Wealth and Markets Servicing exclusively international activity companies registered in Cyprus and abroad and not residents The sensitivity is calculated assuming a constant balance sheet This sensitivity is not a forecast of interest rate expectations, and the Bank's pricing decisions in the event of an interest rate change may differ from the assumptions underlying this sensitivity. Accordingly, in the event of an interest rate change the actual impact on Group NII may differ from that presented in this analysis 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) is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013, as amended Cash, placements with banks, balances with central banks and bonds Loan credit losses comprise: (i) credit losses to cover credit risk on loans and advances to customers, (ii) net gains on derecognition of financial assets measured at amortised cost and (iii) net gains on loans and advances to customers at FVPL, for the reporting period/year. Loan to Value (LTV) is calculated as the Gross IFRS Balance to the indexed market value of the property. Under Pillar 3 disclosures LTV is calculated as the Gross IFRS Balance to the indexed market value of collateral. Collateral takes into consideration the mortgage amount registered in the land registry plus legal interest from registration date to the reference date Both deposit and loan market shares are based on data from the CBC. The Bank is the single largest credit provider in Cyprus with a market share of 41.2% as at 30 June 2022 compared to 41.9% at 31 March 2022 and 38.8% at 31 December 2021. The increase during the first six months 2022 is mainly due to a reduction in loans in the banking system. The use by the Company and the Bank of any MSCI ESG Research LLC or its affiliates ('MSCI') data, and the use of MSCI Logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation or promotion of the Company or the Bank by MSCI. MSCI Services and data are the property of MSCI or its information providers and are provided "as-is" and without warranty. MSCI Names and logos are trademarks or service marks of MSCI Proceeds after selling charges and other leakages Fee and commission income less fee and commission expense divided by total income (as defined) Net interest margin is calculated as the net interest income (annualised) divided by the 'quarterly average interest earning assets' (as defined).. Net loans and advances to customers comprise gross loans (as defined) net of allowance for expected loan credit losses (as defined, but excluding allowance for expected credit losses on off- balance sheet exposures disclosed on the balance sheet within other liabilities). Net performing loan book is the total net loans and advances to customers (as defined) excluding the legacy exposures (as defined). The reduction of greenhouse gas emissions to net zero through a combination of reduction activities and offsetting investments 75#76Glossary & Definitions New lending Non-interest income 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 the current accounts and overdraft facilities between the balance at the beginning of the period and the end of the period. Recoveries are excluded from this calculation since their overdraft movement relates mostly to accrued interest and not to new lending. Non-interest income comprises Net fee and commission income, Net foreign exchange gains/(losses) and net gains/(losses) on financial instrument transactions and disposal/dissolution of subsidiaries and associatesinstruments and (excluding net gains on loans and advances to customers at FVPL), Insurance income net of claims and commissions, Net gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties, and Other income. Non-recurring items as presented in the 'Interim Condensed Consolidated Income Statement - Underlying basis' relate to the following items, as applicable: (i) Advisory and other restructuring costs - organic, (ii) Provisions/net loss relating to NPE sales, (iii) Restructuring and other costs relating to NPE sales, and (iv) Restructuring costs relating to the Voluntary Staff Exit Plan. Non-recurring items NPE coverage ratio (previously 'NPE Provisioning coverage ratio') NPE ratio NPES The NPE coverage ratio is calculated as the allowance for expected loan credit losses (as defined) over NPES (as defined). NPEs ratio is calculated as the NPEs as per EBA (as defined) divided by gross loans (as defined). As per the European Banking Authorities (EBA) standards and European Central Bank's (ECB) Guidance to Banks on Non-Performing Loans (which was published in March 2017), non-performing exposures (NPEs) are defined as those exposures that satisfy one of the following conditions: (i) The borrower is assessed as unlikely to pay its credit obligations in full without the realisation of the collateral, regardless of the existence of any past due amount or of the number of days past due. (ii) Defaulted or impaired exposures as per the approach provided in the Capital Requirement Regulation (CRR), which would also trigger a default under specific credit adjustment, diminished financial obligation and obligor bankruptcy. 333 (iii) (iv) (v) Material exposures as set by the CBC, which are more than 90 days past due. Performing forborne exposures under probation for which additional forbearance measures are extended. Performing forborne exposures previously classified as NPEs that present more than 30 days past due within the probation period. From 1 January 2021 two regulatory guidelines came into force that affect NPE classification and Days-Past-Due calculation. More specifically, these are the RTS on the Materiality Threshold of Credit Obligations Past-Due (EBA/RTS/2016/06), and the Guideline on the Application of the Definition of Default under article 178 (EBA/RTS/2016/07). The Days-Past-Due (DPD) counter begins counting DPD as soon as the arrears or excesses of an exposure reach the materiality threshold (rather than as of the first day of presenting any amount of arrears or excesses). Similarly, the counter will be set to zero when the arrears or excesses drop below the materiality threshold. Payments towards the exposure that do not reduce the arrears/excesses below the materiality threshold, will not impact the counter. For retail debtors, when a specific part of the exposures of a customer that fulfils the NPE criteria set out above is greater than 20% of the gross carrying amount of all on balance sheet exposures of that customer, then the total customer exposure is classified as non performing; otherwise only the specific part of the exposure is classified as non performing. For non retail debtors, when an exposure fulfils the NPE criteria set out above, then the total customer exposure is classified as non performing. Material arrears/excesses are defined as follows: (a) Retail exposures: Total arrears/excess amount greater than €100, (b) Exposures other than retail: Total arrears/excess amount greater than €500 and the amount in arrears/excess in relation to the customer's total exposure is at least 1%. For further information please refer to the Annual Financial Report 2021. 76#77Glossary & Definitions NPES sales Non-legacy (performing) Phased-in Capital Conservation Buffer (CCB) NSFR OMV Operating profit p.p. Profit/(loss) after tax and before non- recurring items (attributable to the owners of the Company) Profit/(loss) after tax - organic (attributable to the owners of the Company) Pro forma for HFS (held for sale) and VEP (Voluntary Exit Plan) Project Helix 2 Project Helix 3 Project Sinope Qoq Restructured loans Return on Tangible equity (ROTE) after tax and before non-recurring items 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 the reporting dates. Relates to all business lines excluding Restructuring and Recoveries Division ("RRD"), REMU and non-core overseas exposures In accordance with the legislation in Cyprus which has been set for all credit institutions, the applicable rate of the CCB is 1.25% for 2017, 1.875% for 2018 and 2.5% for 2019 (fully phased-in). The NSFR is calculated as the amount of "available stable funding" (ASF) relative to the amount of "required stable funding" (RSF). The regulatory limit, enforced in June 2021, has been set at 100% as per the CRR II. Open Market Value The operating profit comprises profit before Total loan credit losses, impairments and provisions (as defined), tax, (profit)/loss attributable to non-controlling interests and non-recurring items (as defined). percentage points This refers to the profit or loss after tax (attributable to the owners of the Company), excluding any 'non-recurring items' (as defined). This refers to the profit or loss after tax (attributable to the owners of the Company), excluding any 'non-recurring items' (as defined, except for the 'advisory and other restructuring costs - organic'). References to pro forma figures and ratios as at 30 June 2022 refer to Project Helix 3, Project Sinope and to VEP. They are based on 30 June 2022 underlying basis figures and assume their completion, currently expected to occur in 2H2022. The completion of Project Helix 3 remains subject to customary regulatory and other approvals. Project Sinope was completed in August 2022. VEP refers to the Voluntary Staff Exit Plan that the Group completed in July 2022, through which c.550 applicants were approved to leave at a total cost of c.€99 mn, expected to be recorded in the 3Q2022 income statement. Project Helix 2 refers to the sale of portfolios of loans with a total gross book value of €1.3 bn completed in June 2021. For further information please refer to section B.2.5 'Loan portfolio quality' of the Press release. Project Helix 3 refers to the agreement the Group reached in November 2021 for the sale of a portfolio of NPEs with gross book value of €568 mn, as well as real estate properties with book value of c. €120 mn as at 30 September 2021. For further information please refer to section 'B.2.5 Loan portfolio quality' of the Press release. Project Sinope refers to the agreement the Group reached in December 2021 for the sale of a portfolio of NPES with gross book value of €12 mn as at 31 December 2021, as well as properties in Romania with carrying value €0.6 mn as at 31 December 2021. For further information please refer to section 'B.2.5 Loan portfolio quality' of the Press release. Quarter on quarter change Restructuring activity within quarter as recorded at each quarter end and includes restructurings of NPEs, performing loans and re-restructurings. Return on Tangible Equity (ROTE) after tax and before non-recurring items is calculated as Profit/(loss) after tax and before non-recurring items (attributable to the owners of the Company) (as defined) (annualised), - (based on year to date days)), divided by the quarterly average of Shareholders' equity minus intangible assets at each quarter end 77#78Glossary & Definitions Return on Tangible equity (ROTE) Risk adjusted yield RRD 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 average of Shareholders' equity minus intangible assets at each quarter end Interest Income on Loans net of allowance for expected loan credit losses/Average Net Loans. Restructuring and Recoveries Division. RWAs Risk Weighted Assets. RWA Intensity Special levy on deposits and other levies/contributions Stage 2 & Stage 3 Loans Tangible Collateral Risk Weighted Assets over Total Assets. Relates to the special levy on deposits of credit institutions in Cyprus, contributions to the Single Resolution Fund (SRF), contributions to the Deposit Guarantee Fund (DGF), as well as the DTC levy, where applicable Include purchased or originated credit-impaired. Restricted to Gross IFRS balance. Total Capital ratio Total expenses Total income Total loan credit losses, impairments and provisions Total capital ratio is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013, as amended by CRR II applicable as at the reporting date. Total expenses comprise staff costs, other operating expenses and the special levy on deposits and other levies/contributions. It does not include (i) 'advisory and other restructuring costs-organic', (ii) restructuring costs relating to NPE sales, or (iii) restructuring costs relating to the Voluntary Staff Exit Plan. (i) 'Advisory and other restructuring costs-organic' amounted to €4 mn for 2Q2022 (compared to €1 mn for 1Q2022 and €3 mn for 4Q2021), (ii) Restructuring costs relating to NPE sales for 2Q2022 amounted to €0.8 mn (compared to €1 mn for 1Q2022 and €0.2 mn for 4Q2021), and (iii) Restructuring costs relating to the Voluntary Staff Exit Plan (VEP) for 2Q2022 was nil (compared to €3 mn for 1Q2022 and €16 mn for 4Q2021). Total income comprises net interest income and non-interest income (as defined) Total loan credit losses, impairments and provisions comprises loan credit losses (as defined), plus impairments of other financial and non-financial assets, plus (provisions)/net reversals for litigation, claims, regulatory and other matters. T2 Underlying basis Write offs Yoy Tier 2 Capital This refers to the statutory basis after being adjusted for certain items as explained in the Basis of Presentation. Loans together with the associated loan credit losses are written off when there is no realistic prospect of future recovery. Partial write-offs, including non-contractual write-offs, may occur when it is considered that there is no realistic prospect for the recovery of the contractual cash flows. In addition, write-offs may reflect restructuring activity with customers and are part of the terms of the agreement and subject to satisfactory performance Year on year change 78