#1Bank of Cyprus Group Group Financial Results For the six months ended 30 June 2021/ Bank of Cyprus Holdings KOINO WKYMPI WN اد#2DISCLAIMER Group Financial Results for the six months ended 30 June 2021 The financial information included in this presentation is neither reviewed nor audited by the Group's external auditors. The Interim Condensed Consolidated Financial Statements for the six months ended 30 June 2021 have 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. Important Notice Regarding Additional Information Contained in the Investor Presentation on The presentation for the Group Financial Results for the six months ended 30 June 2021 (the "Presentation"), available https://www.bankofcyprus.com/en-GB/investor-relations-new/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) analysis of new lending, (v) Income statement by business line, (vi) NIM and interest income analysis and (vii) Loan portfolio analysis in accordance with the three-stages model for impairment of IFRS 9. Moreover, the Investor Presentation includes additional financial information not presented in the Results Announcement of current and expected medium term levels for (i) NPE coverage and (ii) ESG performance 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 2020. 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. 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. Bank of Cyprus Holdings 2#3Highlights Bank of Cyprus Holdings Group Financial Results for the six months ended 30 June 2021 3#4Group Financial Results for the six months ended 30 June 2021 1H2021 - Highlights Strong Recovery Underway Positive Operating Performance €894 m n New lending €57 mn Operating Profit • 12.9% GDP growth in 2Q2021 • • • Continuing to support this recovery; new lending of €894 mn in 1H2021, up 30% yoy Tourism demonstrating signs of recovery; July 2021 arrivals +358% yoy or 54% of July 2019 levels • 78% of adult population in Cyprus vaccinated with first dose¹ and 74% have completed their vaccination regime • • Total income of €152 mn for 2Q2021, up 11% qoq Cost of risk of 52 bps for 2Q2021, improved by 14 bps qoq Profit after tax and before non-recurring items of €34 mn for 2Q2021 and €51 mn for 1H2021 After recognising exceptional costs, loss after tax of €7 mn for 2Q2021 and profit after tax of €1 mn for 1H2021 Operating Efficiency Good Capital Strong Liquidity Balance Sheet Repair Continuing 1) Data as at 28 August 2021 (Source: Ministry of Health) 2) Excluding special levy on deposits and other levies/contributions. Bank of Cyprus Holdings 58% Cost/Income² 14.2% CET1 ratio³ 6.4% Net NPE ratio • Total operating expenses² of €89 mn for 2Q2021, up 7% qoq reflecting seasonality in prior quarter Cost to income ratio² at 58% for 2Q2021, down 2 p.p. qoq • • CET1 ratio of 14.2%³ and Total Capital ratio of 19.2%3 • . MREL interim requirement as of 1 Jan 2022 already achieved through the successful refinancing of Tier 2 and the inaugural issuance of Senior Preferred notes in 2Q2021 Deposits at €16.8 bn, up 3% qoq; Significant surplus liquidity of €5.7 bn (LCR at 303%) . €1.3 bn NPE sale (Helix 2 Portfolios A and B) completed in 2Q2021 • NPES at €1.6 bn (€0.6 bn net) • Gross NPE ratio reduced to 14.6% (6.4% net); organic NPE reduction of €171 mn in 1H2021 Coverage improved to 60% over the quarter • 96% of performing loans under expired payment deferrals with an instalment due by 12 Aug 2021, presented no arrears 3) 4) Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements As at 30 June 2021 4#5Group Financial Results for the six months ended 30 June 2021 New lending' of €894 mn in 1H2021, up 30% yoy New lending¹ remained strong in 2Q2021 Monthly new lending data showing improving trend yoy € mn €689 m n 487 € mn €894 m n 451 37 32 407 374 31 206 7- 233 288 206 238 9 162 174 18 117 62 99 33 83 63 42 24 79 25 117 102 124 98 69 67 27 40 43 57 48 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 2Q2021 2 Shipping & International loans Corporate SME Retail other Retail Housing 1) Refer to slide 71 for definition of new lending 2) Includes syndicated loans Bank of Cyprus Holdings 39% Market share in loans lockdown 122 123 lockdown 179 161- 465-170 mn 147 118 126 130 141 130 98 95 103 112 90 78 62 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 2020 2021 • • average 2019 monthly new lending Demand for housing loans remains strong, supported by government interest rate subsidy scheme; c.€220 mn new housing loans approved since the beginning of the scheme; pipeline of €106 mn as at mid-Aug 2021 Corporate new lending at €162 mn for 2Q2021, up 64% yoy as economic activity continues to improve High quality origination via prudent underwriting standards • Strong assessment of repayment capability • Strict origination standards 5#6Group Financial Results for the six months ended 30 June 2021 Strong performance of moratorium portfolio continues, 8 months after deferral expiry Performing loans¹ under expired payment deferrals of €4.94 bn 96% of performing loans¹ under expired payment deferrals² with no arrears € bn Performing loans¹ 4.94 with instalments due by 12 Aug 2021 4.75 Performing loans¹ with instalments due after 12 Aug 2021 > 0.14 0.05 0.19 2H2021 Post 2021 30 Jun 2021 4% 10% 96% no arrears €4.75 bn 86% Resumed payments as per original schedule Restructured In arrears Customer performance better than expected, nearly 8 months after deferral expiry 96% of performing loans¹ under payment deferrals that expired on 31 Dec 2020, had instalments due by 12 Aug 2021: • 96% (€4.57 bn) present no arrears, of which €0.50 bn have been restructured Just 4% (€0.18 bn) in arrears of which c.95% in early arrears (<30 dpd) Restructurings: . • Strong track record in dealing with restructurings Targeted restructuring solutions to alleviate pandemic-related short-term cash flow burden, following rigorous assessment of repayment ability Mostly in the tourism sector Arrears: • In close contact with customers with early arrears to offer solutions as necessary 1) As at 30 June 2021 2) With instalment due by 12 August 2021 Bank of Cyprus Holdings 60#7Positive Organic Performance in 2Q2021 Profit after tax and before non-recurring items Net Interest Income flat qoq doubled qoq 17 +99% 51 =4 76 76 34 168 152 Group Financial Results for the six months ended 30 June 2021 Net Fee and Commission up 18% qoq 39 +18% 45 45 84 71 1Q2021 2Q2021 -13 1H2020 1Q2021 2Q2021 1H2020 1H2021 1Q2021 2Q2021 1H2020 1H2021 1H2021 Non Interest Income up 26% qoq Total Operating Expenses¹ up 7% qoq Provisions and Impairments down 6% qoq 60% 58% 57% 59% 136 120 +26% 165 171 2420 120 76 69 70 -6% 50 60 89 82 26 24 87 32 38 96 101 51 36 35 50 51 20 15 1Q2021 2Q2021 1H2020 1H2021 1Q2021 2Q2021 1H2020 1H2021 1Q2021 2Q2021 1H2020 1H2021 Operating expenses Staff costs 2 Impairments Cost to Income ratio¹ Provisions for litigations and other Loan credit losses 1) 2) Excluding special levy on deposits and other levies/contributions Impairments of financial and non-financial assets Bank of Cyprus Holdings 7#8Income Statement € mn Net Interest Income 1H2021 1H2020 2Q2021 1Q2021 qoq% yoy% 152 168 76 76 -1% -9% Non interest income 136 120 76 60 26% 12% Total income 288 288 152 136 11% 0% Total operating expenses¹ (171) (165) (89) (82) 7% 3% Operating profit 102 108 57 45 28% -6% Total loan credit losses, impairments and (50) (120) (24) (26) -6% -58% provisions Profit/(loss) after tax and before non- 51 recurring items² (13) 34 17 99% Advisory and other restructuring costs - (18) (6) (15) (3) organic Profit/(loss) after tax-Organic² 33 (19) 19 14 30% Exceptional items³ (32) (107) (26) (6) -70% Profit/(loss) after tax² 1 (126) (7) 8 Key Ratios Net Interest margin (annualised) 1.56% 1.90% 1.49% Cost to income ratio 64% 62% 62% 1.63% -14 bps 67% -5 p.p. -34 bps +2 p.p. Cost to income ratio excluding special levy on deposits and other 59% 57% 58% 60% -2p.p. +2 p.p. levies/contributions Cost of Risk (annualised) 0.61% 1.39% 0.52% 0.66% -14 bps -78 bps EPS5 before non-recurring items 11.24 (2.93) 7.48 3.76 3.72 14.17 (€ cent) Group Financial Results for the six months ended 30 June 2021 • • • • . . NII for 2Q2021 flat at €76 mn of which c.€8 mn relates NII from Helix 2; Helix 2 NII will be partially set off by the unwinding of the net present value and interest income of the deferred consideration Increase in % of AIEA held in liquids to c.50% (see slide 21), resulting in a dilutive impact on NIM which reduced to 1.49% for 2Q2021; Adjusting for the €3.0 bn TLTRO III4, NIM amounts to 1.66% for 2Q2021 Non interest income for 2Q2021 increased to €76 mn, driven mainly by higher net fee and commission income, higher net insurance income and higher revaluation gains on financial instruments (see slide15) Total operating expenses¹ increased to €89 mn for 2Q2021, up 7% qoq, mainly due to seasonally lower marketing, consultancy and professional fees in the previous quarter Profit after tax and before non-recurring items of €34 mn for 2Q2021 and €51 for 1H2021 Advisory and other restructuring costs-organic of €15 mn for 2Q2021 including €12 mn relating to the tender offer for existing Tier 2 notes After recognising exceptional costs of €26 mn relating to NPE sales (of which €14 mn related to the completion mechanics of Helix 2 which is expected to unwind over time) loss after tax of €7 mn for 2Q2021 and profit after tax of €1 mn for 1H2021 ROTE 5 before non-recurring items of 8.1% for 2Q2021 and 6.1% for 1H2021 1) Excluding special levy on deposits and other levies/contributions 2) Attributable to the owners of the Company 4) 3) Please refer to section B.3.4 "Profit/(loss) after tax (attributable to the owners of the Company)" of the 6M2021 FR Press Release 5) Removing the TLTRO from AIEA and the respective benefit recognised over the period from the NII Calculated using Profit/(loss) after tax and before non-recurring items Bank of Cyprus Holdings 8#9Group Financial Results for the six months ended 30 June 2021 Leverage leading Digital Capabilities to serve customers and the economy Vision Digital Transactions ratio¹ . Leverage technology to sustain a competitive advantage through digital banking Serve customer needs anywhere and at any time, through an agile technology ecosystem Be the driver of digital economy, in support of national efforts for structural economic reform Creating shareholder value Improving operational efficiency through: 1) 2) • further automation • further branch rationalisation Opportunities to cross-sell through: • modelling customers' needs and behaviours • ⚫ offering tailored products and services Jul 2019 Jul 2020 Jul 2021 73.7% 82.0% 86.6% Digitally Engaged 2 Customers Jul 2019 Jul 2020 Jul 2021 66.9% 72.3% 77.0% Average mobile logins per month ☐ Jul 2019 13.3x Jul 2020 18.5x Jul 2021 19.1x Active users of Internet and/or Mobile Banking Jul 2019 238K Jul 2020 Jul 2021 278k 314k 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 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 Bank of Cyprus Holdings 9#10Group Financial Results for the six months ended 30 June 2021 De-risking: Clear path to reduce NPE ratio to single digit by 2022 Continue to work towards further accelerating NPE reduction through additional NPE sales NPE ratio 62.9% € bn 15.0 (4.3) I' (9.1) Dec 2014 Coverage 34% COR (bps) 365 Bank of Cyprus Holdings NPE Sales Net Organic Reduction 14.6% 1.6 <10% c.5% Jun 2021 NPE sales & Net Organic reduction Dec 2022 Net Organic Reduction Medium- term target 60% 61 >50% c.70-80 10#11Organizational resilience & ESG agenda: ESG Performance Environmental 昌 2 1146k kWh of energy savings in 1H2021 €184k investment in energy-saving in 1H2021 149k kg paper recycled in 1H2021 Introduction of environmentally friendly loan products People >3,500 employees * >12 ths hours of training conducted in 1H2021 Certificate by the Ministry of Labour, Welfare and Social Insurance for applying good practices for gender equality in the working environment Social c.13,100 cancer patients received treatment and other services at the Bank of Cyprus Oncology Centre for 1H2021 c. €70 m n cumulative investment for the Bank of Cyprus Oncology Centre >5,500 enterprenuers educated via IDEA innovation centre, a non-profit organization, established in 2015, acting as incubator accelerator for start-ups Responsible services יון c. €0.9 bn new lending for 1H2021 87% of total transactions in Jan-Jul 2021 are through digital channels 77% of customers are digitally engaged as at 31 Jul 2021 Group Financial Results for the six months ended 30 June 2021 Governance 30% of the board of directors are female as at 30 June 2021 30 internal audits finalised in 1H2021 1072 customer relationships terminated/suspended for compliance reasons in 1H2021 #SupportCy Network Initiative €650k total contribution to the Society by all members (monetary, products and services) since March 2020 MSCI ESG Ratings MSCI ESG Ratings² Scale: AAA to CCC ESG RATINGS A Rating action date: Jun 2020 CCC B BB BBB A AA AAA A #SupportCY is a network of 125 companies and NGOs, initiated by Bank of Cyprus, during March 2020, with the aim to support the public services performing frontline duties during the Pandemic and the Society, in general 1) 2) Please refer to slide 71 in the definitions Bank of Cyprus Holdings 11