#1Bank of Cyprus Group Group Financial Results For the nine months ended 30 September 2020 Bank of Cyprus Holdings KOINO WKYMPI WN اد#2DISCLAIMER Group Financial Results for the nine months ended 30 September 2020 The financial information included in this presentation is neither reviewed nor audited by the Group's external auditors. 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. The presentation for the Group Financial Results for the nine months ended 30 September 2020 contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014. 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 from 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. Important Notice Regarding Additional Information Contained in the Investor Presentation The presentation for the Group Financial Results for the nine months ended 30 September 2020 (the "Presentation"), available on 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, (ii) growth of performing loan book, (iii) ratio of revenue over total assets, (iv) ratio of fee and commission over total assets, (v) ratio of total revenues over risk weighted assets, (vi) market shares and total regular income or gross written premiums of insurance companies, (vii) restructuring expenses, (viii) cost to income ratio (excluding special levy and contributions to Single Resolution Fund and Deposit Guarantee Fund), and (ix) 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 2019 and updated in the Interim 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. Bank of Cyprus Holdings 2#3Table of Contents 9M2020 Financial Results Medium-term Strategic Targets Appendix Bank of Cyprus Holdings Group Financial Results for the nine months ended 30 September 2020 3#49M2020 Financial Results Bank of Cyprus Holdings Group Financial Results for the nine months ended 30 September 2020 4#53Q2020 - Highlights Covid-19 Developments Group Financial Results for the nine months ended 30 September 2020 ~€1 bn New Lending YTD • • • • Cypriot economy more resilient in 3Q2020 than anticipated earlier in the year We continue to support the recovery of the Cypriot economy New lending of €288 mn recovering post lockdown, driven by retail housing Careful on-going monitoring of credit quality of loans under moratorium Total income of €137 mn; operating profit of €44 mn Cost of risk of 97 bps Positive Performance in 3Q2020 €44 mn Operating Profit Operating Efficiency 62% Cost/Income¹ . Profit after tax of €4 mn • • Total operating expenses¹ at €84 mn for 3Q2020, up by 4% qoq as more normal business operations have resumed post lockdown; €249 mn for 9M2020 down by 13% yoy Cost to income ratio¹ at 62% for 3Q2020 and 59% for 9M2020 Good Capital Strong Liquidity Balance Sheet Repair Continues Strategy and Outlook 14.7% CET1 ratio 2,3 10% • CET1 ratio of 14.7% 2,3 and Total Capital ratio of 18.2% 2,3 Deposits at €16.4 bn, broadly flat qoq Significant surplus liquidity of €4.1 bn (LCR at 256%) Organic NPE reduction of €230 mn with pace returning to pre-lockdown levels €0.9 bn NPE sale (Helix 2) agreed in August 2020 Net NPE ratio 2 . NPEs reduced to €2.4 bn (€1.0 bn net)² • • ~7% ROTE4 target • in the medium-term • Gross NPE ratio reduced to 21%² (10% net²) and coverage maintained at 59%2 Clear path to reduce NPE ratio to single digit by end of 2022 and to ~5% in the medium term Enhance revenues in a more capital efficient way, capitalising on strong market position Improve operating efficiency through leaner operations, digitisation and automation Initiate MREL issuance and refinance Tier 2, subject to market conditions Position the Bank on the path for sustainable profitability delivering on shareholders returns 3) Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements 1) Excluding Special Levy and contributions to SRF and DGF 2) Pro forma for Helix 2. Calculations on a pro forma basis assume completion of the transaction 4) ROTE is calculated as Profit after Tax divided by (Shareholders' equity minus Intangible assets) Bank of Cyprus Holdings 5#6Group Financial Results for the nine months ended 30 September 2020 Cypriot economy more resilient in 3Q2020 than anticipated earlier in the year Economy expected to contract in 2020 at a lower rate compared to Euro area Unemployment rate rose at 7.4% in 3Q2020 GDP 3.2% 1.5% 1.0% -12.3% -5.5% to -6.5% -3.3% -4.4% 3.7% to 4.7% 4.2% 7.7% 7.9% -14.8% -7.8% 4Q2019 1Q2020 2Q2020 3Q2020 2020E1 2021E1 Cyprus Euro Area 3Q2020 tourism arrivals impacted by lockdown (mn) -83% yoy 0.55 0.55 0.52 0.44 0.11 0.06 0.09 0.10 Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2019 2020 9.4% 8.3% 8.2% 8.2% 7.3% 7.2% 7.8% 7.4% 7.0% 6.6% 1Q2019 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 2020E2 2021E Cyprus Euro Area 2 • Open, small and flexible economy which has demonstrated historically that it can quickly recover from economic crises Unprecedent policy response mitigating COVID-19 impact As number of new COVID-19 cases has increased in recent weeks, local restrictions have been re-imposed to contain the spread, which is likely to lead to some loss of momentum in economic recovery in 4Q2020 Source: Cyprus Statistical Service, Economics Research centre of the University of Cyprus and Eurostat • GDP projections under the updated base scenario of Ministry of Finance, European Commission, IMF and the Economics Research centre of the University of Cyprus Unemployment projections under the base scenario of the European Commission dated 5 November 2020 1) 2) Bank of Cyprus Holdings The latest news for an effective vaccine is encouraging, which in time should support a return to more normal conditions 6#7Group Financial Results for the nine months ended 30 September 2020 Economic activity improving since easing of restrictions Retail sales increasing Retail trade volume % change -3m average Card spending rebounded, having hit low in April 2020 #ths 1,000 916 922 9.1 5 -1.97 755 800 813 818 -4.3 -5 626 716 -15 600 -25 -31.9 -35 Jan 19 Apr 19 Jul 19 Retail trade ex motor Oct 19 Jan 20 Retail trade ex autom fuel Apr 20 Jul 20 Non-food ex autom fuel Volume of building permits shows signs of recovery- yet remain volatile #ths 800 600 400 200 Jan 400 463 Jan Feb Mar Apr May Jun Jul Aug Sep Oct - 2020 2019 Motor vehicles registrations improve Motor vehicles registrations % change -3m average 10 766 0 -9 684 -10 490 -20 -30 -40 -50 -50 Feb Mar Apr May Jun Jul Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug 19 19 19 19 19 19 20 20 20 20 - 2018 - 2019 - 2020 520 Oct 20 Vehicles registrations Source: Cyprus Statistical Service, and Eurostat Bank of Cyprus Holdings 7#8Group Financial Results for the nine months ended 30 September 2020 On-going support to customers and society through COVID-19 723 2) 3) • • Payment holidays until end of 2020 (capital & interest) €5.9 bn (>25k customers) > €2.1 bn private individuals > €3.8 bn businesses Payment holidays for €5.9 bn loans ~€1 bn new lending YTD • ~€1 bn new lending in 9M2020 Participation in the government's schemes for interest rate subsidy to private individuals and businesses Strong pipeline of over €148 mn for new housing loans, by mid November 2020 #RestartCY • #SupportCy¹ network initiative contributing: Support CY Sustaining Operational Resilience • • €265k towards education • €70k towards health • €167k towards social services Grants covering cost of repatriation flights All branches operating as usual Increased usage of digital channels sustained post lockdown 84% of total transactions² are performed through digital channels (vs 77% in FY2019) 74% of customers currently digitally engaged³ (vs 69% in FY2019) #SupportCY is a network of 82 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 wider Society 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 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 Bank of Cyprus Holdings 8#9Group Financial Results for the nine months ended 30 September 2020 Continue to monitor credit quality of loans under moratorium Payment deferrals granted to 25K customers affecting €5.9 bn gross loans # customers approved Gross Loans under moratorium % of Gross loans 30 Sep 2020 (€ bn) Private Individuals 20,427 2.09 (excluding legacy)1 52% €5.2 bn Businesses 4,627 3.84 76% Total 25,054 5.93 65% -80% of which NPES -0.34 at the start of moratorium Review campaign of €5.2 bn loans initiated in May 2020 Approximately 80% of loans reviewed by mid November 2020 without triggering a significant change in UTP² status Borrowers representing 31% of loans of private individuals under moratorium have paid ≥1 instalment On going review Continue to engage with customers and monitor credit quality of loans under moratorium 31% 25% Private individuals 19% 15% 13% 9% 30 Jun 2020 31 Oct 2020 Businesses Total Payments of instalments in 2020 are considered prepayments for 2021 instalments Bank of Cyprus Holdings 1) 2) Gross loans as at 30 September 2020: Corporate (incl. IB and W&M and Global Corporate), SME, Retail, and H/O Unlikely to pay criteria 9#10Group Financial Results for the nine months ended 30 September 2020 New lending increasing post lockdown, driven by retail housing New lending of €288 mn in 3Q2020, up 21% qoq Monthly new lending data show improving trend € mn 1,602 124 -39% 491 59 +21% 881 977 lockdown 206 44 288 254 442 238 9 17 117 169 111 100 43 24 122 123 98 78 62 80 95 90 00 118 103 270 25 246 90 98 69 158 134 45 27 40 9M2019 9M2020 3Q2019 2Q2020 3Q2020 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Shipping & Syndicated loans Corporate SMES Retail-housing Retail other 42% Market share in loans³, flat yoy 99% of new exposures² since 2016 were performing at the start of moratorium New disbursements in the reporting period including the average YTD change (if positive) for overdraft facilities Facilities/limits approved in the reporting period 1) 2) 3) As at 30 September 2020 Bank of Cyprus Holdings Retail housing up 43% qoq, supported by government interest rate subsidy scheme; pipeline of €148 mn by mid-November • SME flat qoq • • • Corporate up 17% qoq as economic activity is gradually improving Demand from businesses expected to increase following moratorium expiry (Dec 20) High quality origination via prudent underwriting standards 10#11Performance before exceptional items in 3Q2020 Positive Organic Performance in 3Q2020 Net Interest Income flat qoq 4 1 42 2Q2020 3Q2020 9M2019 -18 9M2020 Non Interest Income down 9% qoq 83 82 2 260 250 2Q2020 3Q2020 9M2019 9M2020 Total Operating Expenses up 4% qoq Group Financial Results for the nine months ended 30 September 2020 Net Fee and Commission income up 6% qoq +6% 33 35 111 106 2Q2020 3Q2020 9M2019 9M2020 Provisions and Impairments down 26% qoq 235 175 60 -9% 60 57% 62% 58% 59% 289 81 84 249 -13% 122 34 35 104 158 4 129 36 9 55 55 50 2 38 47 49 167 145 25 7 117 118 31 2Q2020 3Q2020 9M2019 9M2020 23 2Q2020 3Q2020 9M2019 9M2020 2Q2020 3Q2020 9M2019 9M2020 Operating expenses Staff costs Cost to Income ratio¹ Provisions for litigations and other Impairments on non-financial instruments Loan credit losses 1) Excluding Special Levy and contributions to SRF and DGF Bank of Cyprus Holdings 11#12Income Statement € mn Net Interest Income 9M2020 9M20191 3Q2020 2Q2020 909% yoy% • 250 260 82 83 -1% -4% . Non interest income 175 235 55 60 -9% -25% Total income 425 495 137 143 -5% -14% Total expenses (273) (307) (93) (87) 7% -11% Operating profit 152 188 44 56 -23% -19% Total loan credit losses, impairments (158) (129) (38) (50) -26% 22% and provisions (Loss)/profit after tax-Organic (18) 42 1 4 -71% (attributable to the owners) Exceptional items¹ (104) 74 3 (104) (Loss)/profit after tax-attributable to (122) 116 4 (100) owners Group Financial Results for the nine months ended 30 September 2020 . NII broadly flat qoq at €82 mn • Non interest income reduced to €55 mn, negatively impacted by lower insurance fees and revaluation loss on financial instruments, partly offset by an increase in net fees and commission income (refer to slide 14) Total expenses of €273 mn for 9M2020, down 11% yoy • Total expenses increased to €93 mn for 3Q2020, driven by the 2H contribution to DGF (€3 mn) and normalised staff costs post lockdown . • Provisions and impairments reduced to €38 mn in 3Q2020 (including loan credit losses of €31 mn) reflecting lower impairments on properties Key Ratios Net Interest margin (annualised) 1.87% 1.92% 1.79% 1.88% -9 bps Cost to income ratio 64% 62% 68% 61% +7 p.p. -5 bps +2 p.p. • Profit after tax of €4 mn in 3Q2020 and Loss after tax of €122 mn in 9M2020 Cost to income ratio adjusted for the special levy and contributions to 59% 58% 62% 57% +5 p.p. +1 p.p. SRF and DGF Cost of Risk (annualised) 1.25% 1.19% 0.97% 0.76% +21 bps +6 bps EPS Organic (€ cent) -4.1 9.2 0.2 0.8 -0.6 -13.3 1) Exceptional items for 9M2020 relate to mainly Helix 2 loss of €68 mn recognised in 2Q2020 and additional loan credit losses of €21 mn for potential future NPE sales. For 9M2019 exceptional items consist of loss from the sale of CNP Insurance of €21 mn, reversal of impairment of DTA and impairment of other tax receivables of €101 mn and provisions/net loss relating to NPE sales of €6 mn Bank of Cyprus Holdings 12#13Drivers of NIM NII broadly flat qoq Group Financial Results for the nine months ended 30 September 2020 Effective yield on assets & cost of funding 199 187 195 188 179 NII (€ mn) 90 84 85 83 82 NIM (bps) 3 - Non-Legacy Legacy -Liquids Cost of funding 110 Liquids1 5 102 100 95 4 Legacy 29 29 2. 5 23 23 24 24 18 17 576 560 52 95 485 452 446 Non-Legacy 76 75 72 2 75 15 73 73 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 338 7 3360 330 324 338 327 8 4 10 -39 -38 -30 -25 -23 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 Effective yield of liquids improved to 10 bps, following €1 bn participation in TLTRO III (€5 mn annual benefit) • Challenging interest rate outlook continues to put pressure on the effective yield of liquids Non-Legacy book yields remain under pressure mainly due to the continued lower interest rate environment and intense competition pressure Despite competitive pressures, efforts to improve credit spreads are underway Higher-yielding, higher-risk legacy loans are reducing as we successfully exit NPEs Reduction of cost of deposits continues (down by 2 bps qoq) to 6 bps in Sep 2020 Net derivative -3 -3 -3 Other 2 -3 -6 -6 -6 -6 Subordinated -6 -3 loan stock -3 -5 -8 -12 Customer -13 • -8 -15 deposits -18 -20 1) Cash, placements with banks, balances with central banks and bonds 2) Other includes funding from central banks and deposits by banks and repurchase agreements. For further details, please see slide 77 3) 4) Effective yield of liquid assets: Interest income on liquids after hedging, over average liquids (Cash and balances with central banks, placements with banks and bonds) 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) Bank of Cyprus Holdings 13#14Non interest income at €55 mn (€ mn) 23% Net fee & Commission % of Total Income 25% 26% 23% 26% 72 72 11 14 60 60 6 55 10 10 10 5 2 16 12 11 18 13 39 36 38 33 35 48 55 149 51 148 3Q2020 3Q2019 4Q2019 1Q2020 (1)― 2Q2020 Net FX and other income REMU 2 1 Insurance income net of insurance claims Net fee & commission 1) 2) 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 Bank of Cyprus Holdings Group Financial Results for the nine months ended 30 September 2020 • • Net fee and commission income increased to €35 mn as transactional volumes gradually recover post lockdown Net insurance income decreased to €13 mn in 3Q2020, impacted by lower claims in 2Q2020 due to the lockdown and lower management fee income from unit-linked funds reflecting the performance of the market REMU gains at €2 mn as sales gradually increasing post lockdown; REMU sales remain volatile • Net FX and other income¹ reduced to €5 mn in 3Q2020 impacted by €6 mn revaluation loss on financial instruments 14#15Total Operating Expenses down 13% yoy Cost to income ratio¹ at 59% broadly flat yoy Total operating expenses down 13% yoy 59% 59% 58% 57% 9M2019 FY2019 1H2020 9M2020 Special Levy and contributions to SRF and DGF (€ mn) 9 9 6 7 6 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 • Quarterly increase of €3 mn due to 2H contribution to DGF 1) Excluding Special Levy and contributions to SRF and DGF Bank of Cyprus Holdings (€ mn) -13% 289 • • Group Financial Results for the nine months ended 30 September 2020 249 63% 62% 122 57% 58% 57% 104 93 96 84 81 84 38 43 43 35 167 34 35 145 55 55 33 53 49 47 49 9M2019 9M2020 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 1 Other operating expenses Staff costs C/I ratio Total operating expenses of €84 mn for 3Q2020, up 4% qoq Total operating expenses of €249 mn for 9M2020, down 13% yoy Following normalisation of staff costs post lockdown, staff costs increased to €49 mn in 3Q2020 • Operating expenses at €35 mn, broadly flat qoq 15#16Balance Sheet Bank of Cyprus Holdings Group Financial Results for the nine months ended 30 September 2020 16#17Balance sheet composition Total assets € bn 21.37 21.52 Other assets 1.91 1.94 (including HFS) REMU properties 1.46 1.47 Legacy net loans 1.17 1.11 Non-legacy net loans³ 3 8.93 8.93 AIEA¹Mix 3Q2020 Group Financial Results for the nine months ended 30 September 2020 Total equity & liabilities € bn 21.37 21.52 Other 1.28 1.34 Equity 2.12 2.13 Wholesale 0.26 0.27 Funding from 1.00 1.00 Central Bank 0.41 0.40 Due to banks 2 Securities 2.00 2.03 0.53 Due from banks 0.62 Liquids 43% AIEA¹: €18.2 bn Non- legacy 49% net loans³ Cash and balances 5.28 5.51 with Central Banks 8% Legacy 30 Jun 2020 30 Sep 2020 net loans 1) AIEA: Average Interest earning assets. Please refer to slide 85 for the definition 2) Debt securities, treasury bills and equity investments 3) Net loans of Corporate (incl. IB and W&M and Global Corporate), SME, Retail, and H/O Bank of Cyprus Holdings Customer deposits 16.30 16.38 30 Jun 2020 30 Sep 2020 17#18CET1 at 14.7% pro forma for Helix 25 min OCR (SREP) requirement for 2020 post ECB Announcement 4 14.3% 14.6% -0.4% -(0.3%)- 0.1% 0.1% 14.7% 0.1% 9.7% Group Financial Results for the nine months ended 30 September 2020 18.2% 1.6% 1.9% 14.5% 9.7% 1,2 CET1 30 Jun 1 Operating 2020 profit Provisions and impairments 3 RWAs Amendments to CET1 30 Sep capital 2020 regulations Helix 2 CET1 30 Sep 2020 pro AT1 T2 Total capital ratio 30 Sep forma for 1,2,5 Helix 2 2020 pro forma for Helix 2 1,5 11,780 RWAS (€ mn) 11,960 RWAs intensity 56% 11,888 55% 55% • CET1 ratio¹ positively impacted by: • ~40 bps organic capital generation from operating profitability ~10 bps capital benefit from amendments to capital regulations in relation to FVOCI instruments; ~10 bps benefit not yet recorded ~10 bps from release of RWAS CET1 ratio negatively impacted by: ~30 bps from provisions and impairments Onsite inspection by the SSM on the stock of REMU properties completed Findings relating to a possible prudential charge of up to ~50 bps, under review by SSM Size and timing of impact, if any, uncertain 1) Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements 2) The CET1 ratio for 30 September 2020, including the full impact of IFRS 9 and the temporary treatment for certain FVOCI instruments amounted to 12.8% and 12.9% pro forma for Helix 2 4) 3) Loan credit losses and other impairments include the net change of the prudential charges relating to specific credits and other items 5) OCR(SREP)- Overall Capital Requirement comprises the Total SREP Capital Requirement (Pillar 1 and Pillar 2 Requirement) plus combined buffer requirements (capital conservation buffer, countercyclical buffer and systemic buffers) Calculations on a pro forma basis assume completion of the transaction Bank of Cyprus Holdings 18#19Group Financial Results for the nine months ended 30 September 2020 Deposits at €16.4 bn broadly flat qoq € bn 16.84 16.69 16.30 16.38 16.38 Cyprus deposits by passport origin² 3% 4% 6% Deposits IBU¹ 3.28 Corporate 2.05 Retail 10.22 SME Dec 18 Dec 19 Jun 20 Sep 20 0.83 Sep 20 Significant surplus liquidity of €4.1 bn Minimum Liquidity ratio 30 Sep 2020 Surplus required LCR (Group) 100% 256% €4,095 mn NSFR2 100% 135% €4,345 mn 20% 67% Cyprus Other EU Russia Other countries Other European countries, excl. Russia Strong deposit market share of 35% as at 30 Sep 2020 Flexibility to operate below 100% LCR limit at least until end 2021 1) 2) Servicing exclusively international activity companies registered in Cyprus and abroad and not residents The NSFR has not yet been introduced. The NSFR is calculated as the amount of "available stable funding" (ASF) relative to the amount of "required stable funding" (RSF), on the basis of Basel III standards. Its Bank of Cyprus Holdings calculation is a SREP requirement. The EBA NSFR will be enforced as a regulatory ratio under CRR II in 2021 19#20Asset Quality Bank of Cyprus Holdings Group Financial Results for the nine months ended 30 September 2020 20#21Group Financial Results for the nine months ended 30 September 2020 NPE ratio reduced to 21% pro forma for Helix 2; Coverage maintained at 59% Organic NPE reduction of €230 mn in 3Q2020 with pace returning to pre-lockdown levels NPE coverage maintained at 59% post Helix 2 (€ bn) 7.4 122% 122% 128% 130% 128% 69% 70% 70% 68% 69% 59% 3.6 3.9 3.5 3.2 2.4 52% 54% 59% 60% 59% Re-performing ³ 19% NPES Dec 18 1.8 Dec 19 Core NPES 64% 1.4 Jun 20 1.3 1.0 Sep 20 Sep 20 Dec 18 Dec 19 Jun 20 Sep 20 Sep 20 Allowance for Expected Loan Credit Losses pro forma for Helix 2 2 pro forma Tangible collateral for Helix 21 Net NPES Sep 20 pro forma for Helix 21 Gross NPE ratio reduced to 21%; 10% on a net basis 47% 30% 28% 26% 21% 30% 17% Allowance for expected loan credit losses Dec 18 14% Dec 19 Jun 20 Net NPE ratio Gross NPE ratio Calculations on a pro forma basis assume completion of the transaction Restricted to Gross IFRS balance 13% Sep 20 10% Sep 20 pro forma for Helix 2 In pipeline to exit NPEs subject to meet all exit criteria; the analysis is performed on a customer basis (formerly called Non-core NPEs) 1) 2) 3) Bank of Cyprus Holdings • Agreement for the sale of ~ €0.9 bn NPES (known as Helix 2) • €230 mn organic reduction in 3Q2020 • €1.5 bn NPE reduction in 9M2020 pro forma for Helix 21 • NPEs reduced by 27% to €2.4 bn 21#22Group Financial Results for the nine months ended 30September 2020 €236 mn organic NPE outflows in 3Q2020, leading to €230 mn organic NPE reduction Net organic outflows (€ mn) -227 Inflows (€ mn) 50 -205 -142 -137 -230 32 New inflows 33 17 16 Redefaults 8 8 9 8 6 Unlikely to pay 9 6 7 Organic NPE outflows of €236 mn, recovered to pre-lockdown levels Outflows (mn) 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 -42 Curing of restructuring -65 -72 -59 -47 -17 -51 -24 DFAS & DFES -18 ■-22, -71 -84 Write-offs -107 -89 -23 -158 -158 -54 -133 Other¹ -87 -237 -236 Sales of NPES -277 1) Other includes interest, cash collections and changes in balances Bank of Cyprus Holdings -886 Helix 2 -1,164 SPA Signed 22#23Clear strategy for residual NPES Group NPES (€ bn) 2.37 Re-performing 1 0.27 NPES Retail 1.45 SME 0.31 Corporate 0.34 Re-performing NPES1: €0.27 bn² . Group Financial Results for the nine months ended 30 September 2020 Close monitoring of redefaults & quality of restructurings ~€240 mn re-performing NPEs¹ applied to moratorium, extending exit date (by 9 months)³ Core NPES: €2.10 bn² • €2.10 bn . • 30 Sep 2020 pro forma for Helix 22 In pipeline to exit NPEs subject to meet all exit criteria; the analysis is performed on a customer basis (formerly called Non-core NPEs) Calculations on a pro forma basis assume completion of the transaction 1) 2) 3) Subject to continuing meeting all exit criteria Bank of Cyprus Holdings Sale of €864 mn (as at 30 September 2020) mainly Retail and SME secured NPES (Helix 2) expected to be completed in 1H2021 Following COVID-19 outbreak, focus on arresting potential asset quality deterioration and early managing of arrears Continue to seek organic solutions, including realisation of collateral via consensual and non consensual foreclosures Remain committed to assess the potential to accelerate the decrease in NPEs through additional NPE sales 23#24Group Financial Results for the nine months ended 30 September 2020 Gross loans and coverage by IFRS 9 staging Gross loans by IFRS 9 stage (€ mn) Allowance for expected loan credit losses (€ mn) Coverage ratio 12,822 12,491 12,309 11,427 Stage 1 7,209 7,025 7,042 7,041 62% 2,096 2,043 90 44 104 1,933 54 107 55 Dec Jun Sep 2019 2020 2020 Sep 2020 pro forma for Helix 21 Stage 2 1,733 1,998 2,029 17% Stage 1 1.2% 1.5% 1.5% 1.5% 2,012 1,962 1,885 1,391 Stage 3 1,771 3,880 106 3,468 3,238 46 2,374 21% Stage 2 2.5% 2.7% 2.7% 2.3% 1,239 Dec 19 Jun 20 Sep 20 Sep 20 Dec 19 Jun 20 Sep 20 Sep 20 Stage 3 50.6% 54.4% 54.7% 52.2% % of gross loans pro forma for Helix 21 pro forma for Helix 21 . Coverage for Stage 3 loans maintained >50% post Helix 2 Review campaign of €5.2 bn loans initiated in May 2020; ~80% was completed by mid-November 2020, with no significant change in UTP status 1) Calculations on a pro forma basis assume completion of the transaction Bank of Cyprus Holdings 24#25Cost of risk' increased to 97 bps for 3Q2020 Mainly impact of 1.25% deterioration of macro- 1.12% economic outlook in 1Q2020 1.00% 0.45% 0.80% FY2018 FY2019 9M2020 bps 200 76 97 200 152 88 30 107 Charge (bps) 58 17 53 33 6 40 58 51 14: 1Q2020 2Q2020 Reversal 3Q2020 -10 (bps) -76 Group Financial Results for the nine months ended 30 September 2020 Base Scenario GDP Unemployment rate 2Q2020 3Q2020 2Q2020 3Q2020 2020 -6.3% -6.0% 9.2% 8.2% 2021 5.6% 4.0% 8.0% 7.3% Cost of risk of 125 bps for 9M2020, of which 45 bps (€43 mn) reflect the initial impact of IFRS 9 Forward Looking Information (FLI) driven by deterioration of macroeconomic outlook recognised in 9M2020 Cost of risk of 97 bps for 3Q2020, of which 17 bps (€5 mn) COVID-19 related • Interest on net NPEs not received in cash, fully provided (€10 mn in 3Q2020) COVID-19 Interest on net NPEs not received in cash New lending Stage 3 Stage 1 & 2 Loan credit losses on customer loans including off-balance sheet exposures, net of gains/(losses) on derecognition of loans and advances to customers and change in expected cash flows over average gross loans 1) Bank of Cyprus Holdings 25#26Group Financial Results for the nine months ended 30 September 2020 REMU sales gradually increasing post lockdown Evolution of REMU stock1 Group BV (€ mn) €56 mn sales in 9M2020 Sales contract prices² - Organic (€ mn) 1,530 1,490 1,456 1,467 98 92 182 177 Greece & Romania Residential 268 293 Commercial properties 24 24 Hotels 619 619 Land & plots Golf 265 262 Dec Dec Jun Sep 2018 2019 2020 2020 Property market recovery Sale contracts (excluding DFA's)³ -80% 31% +14% 115% 88% 56 105% 85% 13 122% 90% 113% 89% 26 17 Total Sales 9M2020 Commercial Residential Land Net Proceeds / BV Gross Proceeds / OMV • • 1,423 1,064 1,057 766742 834 739 766 896825 714646 588561 692786 813 510 419 216 Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2019 2020 1) In addition to assets held by REMU, properties classified as "Investment properties" with carrying value of €21 mn as at 30 September 2020 relate to legacy properties Bank of Cyprus Holdings Visible pipeline for €54 mn (SPAs signed) Offers accepted for €31 mn 23 2) Amounts as per Sales purchase Agreements (SPAs) 3) Based on data from Land of Registry- Sales contracts 26#27Medium-term Strategic Targets Bank of Cyprus Holdings Group Financial Results for the nine months ended 30 September 2020 27#28Key remarks A Our Operating Environment B Our Starting Point C Our Team D Our Board E Our Strategic Priorities 1) As at 30 September 2020 Bank of Cyprus Holdings Group Financial Results for the nine months ended 30 September 2020 Open, small and flexible economy which has demonstrated historically that it can quickly recover from economic crises Leading Financial Hub in Cyprus with strong brand and customer base (~75% of population) Loan market share of 42%¹ and deposit market share of 35%¹ Strong leadership team with an excellent track-record, committed to deliver shareholder value Proactive and strategically minded Board, maintaining best in class governance standards Complete restructuring and de-risking Set the Bank on the path for sustainable profitability 28#29Group Financial Results for the nine months ended 30 September 2020 Setting the path for sustainable profitability Where we are now... Normalisation of balance sheet Where we want to be... Business turnaround for sustainable growth 2021-2022 Medium-term Where we were... Shrinkage to core strength 2014-2019 1) 2) Priorities Balance sheet de-risking Normalise funding stack Exit non core operations Achievements ✓ Sale of ~€2.7 bn NPES (Helix 1) ✓ >€11 bn or 74% NPE reduction ✓ Sale of non-core overseas assets ✓ Full repayment of €11.4 bn ELA ✓ Issuance of €250 mn Tier 2 & €220 mn AT1 Pro forma for Helix 2. Calculations on a pro forma basis assume completion of the transaction Subject to market conditions Bank of Cyprus Holdings Priorities 2020 Support the recovery of Cypriot economy Manage pandemic asset quality Accelerate NPE reduction Address costs Achievements Sale of €1 bn NPES (Helix 2) ✓ NPE ratio reduced to 21%¹ (10%1 net) ✓ ~€1 bn new lending year to date ✓ Completion of VEP reducing FTEs by 11% ✓ On-going monitoring of credit quality of loans under moratorium Priorities Complete de-risking while managing the post- pandemic NPE inflow Position the Bank on the path for sustainable profitability Modernise the BOC franchise, including IT and digital investment Address challenges from low rates and surplus liquidity Initiate MREL issuance² and refinance Tier 2² Priorities ■ Deliver sustainable profitability and shareholder returns ■ Enhance revenues by capitalising on market leading position ■ Enhance operating efficiency Optimise capital management 29#30Spreads (%) Jan 2019 0.1 0.3 2.0% Annual Real GDP yoy % change¹ 6.4% Group Financial Results for the nine months ended 30 September 2020 Open, small and flexible economy which has demonstrated historically that it can quickly recover from economic crises -6.6% 5.2% 3.1% 3.7% to 4.7% 2.6% 1.3% 4.2% 2010 2011 2013 2014 2015 2016 2017 2018 2019 2020E1 2021E1 19% Cyprus Euro area Tightening of sovereign spreads as market confidence improves 0.2 Feb 2019 1) Bank of Cyprus Holdings Apr 2019 May 2019 Jun 2019 Aug 2019 Sep 2019 Nov 2019 Dec 2019 Feb 2020 Jun 2020 -5.5% to -6.5% -7.8% Cyprus maturity 4/11/2025 GDP Projections under base scenario of the Ministry of Finance, the European Commission and the Economics Research centre of the University of Cyprus Nov 2020 Gross Value Added by sector of economic activity (2Q2020) Public, education and health Trade, Transport, 3% 7% 23% 7% Real Estate 8% Professional Tourism 9% administrative Industry & Agriculture Information 11% Construction 12% Arts and other Financial · • · • Cypriot economy has outperformed the European Union over the past five years; growing market confidence can be seen in the sharp fall in sovereign spreads Contraction in Cyprus in 2020 expected to be less severe than in the Euro area; economic activity is expected to rebound during 2021 and GDP growth is estimated to range between 3.7% to 4.7%. Coordinated monetary, fiscal and regulatory measures announced by the Government and the European Authorities are mitigating the pandemic impact Investment grade sovereign rating by S&P and Fitch 30#31Group Financial Results for the nine months ended 30 September 2020 The leading full service bank in Cyprus Positioning against market players Bank of Cyprus Gross loans 1 KOINO ΚΥΠΡΙ WN5 Loan Leading life and non-life insurance business in Cyprus EuroLife KOINO WN K € bn Deposits¹ € bn 12.3 6.8 3.4 2.0 Market Share1 42% 21% Market share 2 (life regular & Accident Health) BOCH Peer 1 Peer 2 Peer 3 BOCH Peer 1 16.4 14.2 5.4 2.1 BOCH Peer 1 Peer 2 Peer 3 Deposit Market Share1 1) As at 30 September 2020. Peer 1 as at 30 June 2020 (latest public available information) Data based on statistics published on IAC website as at 31 December 2019 2) Bank of Cyprus Holdings 35% 30% BOCH Peer 1 KOINO Η ΚΥΠΡΙ W WHI 2 Market share (GWP) 24% 22% 20% Eurolife Peer 1 Peer 2 General Insurance of Cyprus 14% 13% 9% 9% Peer 1 GIC Peer 2 Peer 3 31#32Group Financial Results for the nine months ended 30 September 2020 What we have achieved: Substantial improvement in key balance sheet metrics ... > €5.0 bn balance sheet deleveraging >€12.5 bn NPE reduction Funding stack normalisation € bn Total assets 26.8 21.1 21.5 Dec 2014 Dec 2019 Sep 2020 30 p.p. reduction in RWA intensity RWA intensity 4 85% 61% 55% Dec Dec Sep 2014 2019 2020 1 Bank of Cyprus Holdings NPE ratio 63% 30% 21% € bn 15.0 3.9 2.4 Net NPES 9.9 1.8 1.0 Dec Dec 2014 2019 Sep 20201 -84% Loans/ Deposit ratio Capital position consistently above regulatory requirements CET12 3 Min. regulatory requirements 14.8% 14.7% 14.0% 11.0% 9.7% 1) Dec Dec Sep 2) 1 2014 2019 2020 3) 141% -80 p.p. 64% 61% Dec Dec 2014 2019 Sep 20201 Pro forma for Helix 2: calculations on pro forma basis assume completion of the transaction Allowing for transitional arrangements OCR(SREP)- Overall Capital Requirement comprises the Total SREP Capital Requirement (Pillar 1 and Pillar 2 Requirement) plus combined buffer requirements (capital conservation buffer, countercyclical buffer and systemic buffers) 4) Risk weighted assets over total assets 32#33... with consequences for Profit and Loss metrics Smaller yet safer loan book resulting in lower but higher quality income Net loans Group Financial Results for the nine months ended 30 September 2020 Total Income € bn 14.7 € mn 717 .651 Legacy 5.9 10.7 1.8 10.0 -32% > -41% 425 Performing 8.8 8.9 8.9 Sep 2016 Dec Sep 9M2016 FY2019 9M2020 1 2019 2020 2 L/D ratio 141% • Restored funding position resulting in significant excess liquidity Liquids % Total assets 36% 34% 64% 61% -80p.p. > 15% Dec 2014 Dec Sep 2019 2020 2 Sep Dec Sep 2016 2019 2020 • Total operating expenses Cost reduction smaller than revenue reduction leading to increased C/I ratio € mn 284 289 249 -12% 171 167 145 113 122 104 9M2016 9M2019 9M2020 Staff expenses Other opex 1) Excluding BOC UK which was disposed in 2018 2) 3) Pro forma for Helix 2: calculations on pro forma basis assume completion of the transaction Excluding special levy and contributions to SRF and DGF Bank of Cyprus Holdings +21 p.p. 3 C/I ratio 58% 59% 40% +19p.p. > 9M2016 9M2019 9M2020 33#34Our starting point: Leading financial hub in Cyprus Market Leader ~655k private individuals customers (-75% of population) ~50% market share in households and corporate loans Strong Brand Leading financial hub in Cyprus with long history 1) Referring to non-financial residential corporates Bank of Cyprus Holdings OL E Group Financial Results for the nine months ended 30 September 2020 Diversified financial group • Profitable subsidiaries in affiliated businesses with high market shares (e.g. Insurance, JCC) Leading digital bank 285K active users of internet and mobile banking Widest range of internet & mobile functionalities & e-Accounts Track record on delivery of targets Excellent track- record of delivery against strategic objectives BOCH strengths 34#35Key strategic pillars to deliver shareholder value Bank of Cyprus Holdings De-risking 1 2 Complete balance sheet de-risking Revenue Growth in more capital efficient way Enhance revenue generation via growth in performing book and less capital intensive banking and financial services operations (Insurance and Digital economy) Operating efficiency 3 Lean operations through digitisation and automation 4 Organisational resilience & ESG agenda Build a forward looking organisation with a clear strategy supported by effective corporate governance aligned with ESG priorities Group Financial Results for the nine months ended 30 September 2020 35#36Group Financial Results for the nine months ended 30 September 2020 ་་ ⑪De-risking: Clear path to reduce NPE ratio to single digit by 2022 Gross NPE reduction in 2021, through both organic and inorganic actions, expected to more than offset NPE inflows Continue to assess potential to accelerate NPE reduction through additional NPE sales 1) Pro forma for Helix 2: calculations on pro forma basis assume completion of the transaction Bank of Cyprus Holdings NPE ratio 63% € bn 15.0 (3.8) (8.8) 21% <10% 2.4 Dec 2014 NPE Sales Net Organic Sep 20201 Reduction NPE sales & Net Organic Dec 2022 Net Organic Reduction reduction Coverage 34% COR (bps) 365 59% 125 ☐ ~5% Medium- term target >50% -70-80 36#372 Revenue Growth: NII drivers and challenges NII challenges • Reduction of Legacy book Performing book¹ to grow by ~10% Net loans Group Financial Results for the nine months ended 30 September 2020 - Higher-yielding, higher-risk legacy loans are reducing € bn - Legacy book interest fully provided 12.0 10.7 Legacy 3.4 10.0 1.8 ~+10% 1.1 Plan of action - Grow performing book by ~10% Grow international and shipping lending Excess liquidity built in a low interest rate environment - Significant excess liquidity of ~€4 bn Challenging interest rate outlook continues to put pressure on the effective yield of liquids and performing book Plan of action Performing 8.7 8.9 8.9 Dec 2018 Dec 2019 Sep 1 2020 Medium-term target Efforts to improve credit spreads - Price away or price correctly deposits through liquidity fees - Efforts to improve credit spreads . MREL compliance Plan of action - Funding cost expected to reduce as we successfully complete de-risking Bank of Cyprus Holdings 9M2020 (annualized) Medium term Revenues/Total Assets ~260 bps > ~280bps ☐ 1) Pro forma for Helix 2: calculations on pro forma basis assume completion of the transaction 37#38Group Financial Results for the nine months ended 30 September 2020 (2) Revenue Growth: Enhance fee and commission income Initiatives Extend liquidity fees to a wider group of customers • Boost fee & commission income through a new price list • Increase average product holding through cross selling to the under-penetrated customer base Fee and commission income / Total Assets Total Revenues/RWAS Introduce Digital Economy Platform to generate new revenue sources 9M2020 annualised Medium term ~70 bps > ~100 bps - ~ 5% > ~ 6% Become the centre of the Cypriot Digital Economy Leverage the Bank's market position, knowledge and digital infrastructure Potential to improve product penetration Avg product holding/retail customer¹ 2.4 2.6 3.1 1) Average product holding includes debit prepaid cards, credit cards, overdraft facilities, housing and other loans, notice and fixed deposits as well as referrals for insurance services per retail customer Bank of Cyprus Holdings 420k 2018 2019 Medium term Targeted retail customers ☐ <25% hold credit cards <15% have overdraft 38#39Group Financial Results for the nine months ended 30 September 2020 2 Revenue Growth: Profitable Insurance business with further opportunities to grow EuroLife KOINO WKYПPI ENK Key operational shifts and growth targets Widen target market by offering more basic and appealing products/services to extend customer base Market leader1 in Life insurance 34% -26% 24% 22% 20% Market share (Life & Health regular) ☐ • New distribution philosophy through enhanced agency force to accelerate new business . Leverage on Bank's strong franchise and customer base Improve cost efficiency through digitalisation capabilities 13% contribution to non interest income 1) As at 31 December 2019 2) Total regular income includes Yearly Renewable Gross Written premiums and occupational pension contributions Bank of Cyprus Holdings Eurolife Peer 2 Peer 3 Other market players Medium- term target Sustainable healthy profitability > PBT € mn aiming to further grow capturing fair share based on bank base Total regular income growth² € mn 14 13 120 11 104 111 >35% 9M2018 9M2019 9M2020 FY2017 FY2018 FY2019 Medium- term target 39#40Group Financial Results for the nine months ended 30 September 2020 2 Revenue Growth: Profitable Insurance business with further opportunities to grow General KOINO KYMPι W S WHI Insurance of Cyprus Key operational shifts and growth targets Opportunities for further market penetration Market share¹: (GWP2) 55% ~18% 14% 13% 9% 9% • Focus on high margin products (property and fire) and profitable part of motor segment Peer 1 GIC Peer 2 Peer 3 Other 21 companies Medium- term target • Revamp bancassurance channel • Optimise synergies with life insurance and its sales network • Enhance digital sales 11% 1) 2) As at 31 December 2019 Gross Written Premium Bank of Cyprus Holdings contribution to non interest income Sustainable healthy profitability > PBT € mn 8 6 ☐ aiming to further grow capturing fair share based on bank base GWP growth € mn 10 47 49 50 50 >50% 9M2018 9M2019 9M2020 FY2017 FY2018 FY2019 Medium- term target 40#41Group Financial Results for the nine months ended 30 September 2020 2 Revenue Growth: Leverage leading Digital Capabilities to serve customers and the economy Vision 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: ☐ ☐ Digital Transactions ratio 1 Dec 2019 Oct 2020 77.4% 83.5% Digitally Engaged 2 Customers Dec 2019 Oct 2020 68.6% 73.6% Average mobile logins per month Dec 2019 Oct 2020 16.8x 16.9x . • further automation • further branch rationalisation Opportunities to cross-sell through: • modelling customers' needs and behaviours ⚫ offering tailored products and services Active users of Internet and/or Mobile Banking Dec 2019 Oct 2020 249k 285k 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 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 1) 2) Bank of Cyprus Holdings 41#42Group Financial Results for the nine months ended 30 September 2020 3 Operating efficiency: Revamping operating model to further improve efficiency Initiatives . Exit solutions to release FTES □□ . Further branch footprint rationalisation € mn Reduction of total operating expenses¹ by ~10% -10% C/I ratio¹ expected to rise to mid 60s% before improving in the medium-term • Contain restructuring costs following completion of balance sheet de-risking 385 mid 60s% <350 59% 59% mid 50s% Staff cost 220 249 Enhance procurement control 145 · Reduction of total operating expenses¹ by ~10% despite inflation Other opex 165 FY2019 104 9M2020 FY2019 9M2020 Medium term target Medium-term target C/I ratio 1 2021 Outlook C/I ratio¹ expected to rise in the near term as revenues remain under pressure and operating expenses increase due to higher IT/digitisation investment costs Reduction of restructuring expenses to single digit as we successfully complete de-risking € mn >-80% 47 . C/I ratio¹ to reduce to mid 50s% in the medium term 1) Excluding Special Levy and contributions to SRF and DGF Bank of Cyprus Holdings 13 <10 FY2019 9M2020 Medium-term target 42#434 Organisational resilience & ESG agenda A B Group Financial Results for the nine months ended 30 September 2020 C 36 Build a forward looking organisation with a clear strategy supported by effective corporate governance aligned with ESG priorities Enhanced structure and corporate governance Fostering faster decision- making, cross-functional collaboration Focus on our people Strengthening the performance-based culture across the organisation with focus on customer centricity Invest in attracting and developing top talent in functional areas that will support our future growth Priority on the ESG agenda Continue evolving our ESG strategy and embed ESG priorities in our business targets Bank of Cyprus Holdings 43#444 Organizational resilience & ESG agenda: ESG Performance Environmental 1.27 mn kWh of energy savings €0.4 mn investment in energy-saving 1,800 tones paper recycled People >3,500 employees Social 1,717 cancer patients treated at the Bank of Cyprus Oncology Centre €221k raised for the Cyprus Anti-Cancer Society ~€70 m n cumulative investment for the Bank of Cyprus Oncology Centre Responsible services €5.9 bn loans (>25k customers) under payment holiday Group Financial Results for the nine months ended 30 September 2020 Governance 30% of the board of directors are female 22 internal audit tests finalised 3,146 customer relationships terminated for compliance reasons 36 #SupportCy1 Network Initiative €265k contributions to education 白百 * >27 ths hours of training conducted 91% of employees received feedback during interim performance assessments O T ~ €1.0 bn new lending ytd 83% of total transactions are through digital channels €70k contributions to health services €167k contributions to welfare 73% of customers are digitally engaged Data for the period 1 January 2020 to 30 September 2020 1) #SupportCY is a network of 82 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 Bank of Cyprus Holdings 44#451) 2) Capital Management with CET1>13% Aim for more efficient capital usage, including growing non-capital intensive fee generating business • Reduce high intensity RWA in the legacy book • Performing loan growth to lead to business RWA growth • Volatility due to timing of potential future impacts from regulatory changes and one-off restructuring costs Tailwinds Organic capital generation, supported by focus on less capital intensive businesses Reduce high intensity legacy RWA Helix 2 benefit upon full payment of deferred consideration Headwinds IFRS 9 phasing-in Regulatory impacts One-off cost optimisation charges € bn 17.2 Group Financial Results for the nine months ended 30 September 2020 Legacy RWAs 12.9 7.4 11.9 110% 3.4 103% 3.1 105% Non legacy RWAs 9.8 58% 9.5 53% 8.8 47% Dec 2017 Dec 2019 Sep 2020 RWA intensity Planning assumption of CET1 ratio >13% 2 CET1 ratio 14.7% Sep 20201 3 Min. regulatory requirements 9.7% Pro forma for Helix 2: calculations on pro forma basis assume completion of the transaction Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements OCR(SREP)- Overall Capital Requirement comprises the Total SREP Capital Requirement (Pillar 1 and Pillar 2 Requirement) plus combined buffer requirements (capital conservation buffer, countercyclical buffer and systemic buffers) 3) Bank of Cyprus Holdings 45#46Medium-term strategic targets Profitability Return on Tangible Equity (ROTE) 1 X Total Operating Expenses² NPE Ratio Asset Quality Capital LOUD Cost of risk Group Financial Results for the nine months ended 30 September 2020 2022 Medium Term ~7% <€350 mn <10% ~5% Supported by CET1 ratio of at least 13% ~70-80 bps 1) ROTE is calculated as Profit after Tax divided by (Shareholders' equity minus Intangible assets) 2) Total operating expenses comprise staff costs and other operating expenses. Total operating expenses do not include the special levy or contributions to the Single Resolution Fund (SRF) or Deposit Guarantee Fund (DGF) or any advisory or other restructuring costs Bank of Cyprus Holdings 46#47Summary 血 Strong customer base with relationship with 75% population ivivi • Bank of Cyprus Holdings Renewed customer trust Group Financial Results for the nine months ended 30 September 2020 Market leader both in terms of loans and deposits; 42% market share in loans and 35% in deposits • Driving forward our digital knowledge and infrastructure • Clear strategy in place; complete the turnaround and set the Bank on a path for profitability 47#48Group Financial Results for the nine months ended 30 September 2020 Key Information and Contact Details Contacts Investor Relations Tel: +35722122239, Email: [email protected] Annita Pavlou Investor Relations Manager Tel: +357 22 122740, Email: [email protected] Elena Hadjikyriacou ([email protected]), Marina loannou ([email protected]) Andri Rousou ([email protected]), Stephanie Koumera ([email protected]) Executive Director Finance Eliza Livadiotou, Tel: +35722 122128, Email: [email protected] Credit Ratings Standard & Poor's Global Ratings: Long-term issuer credit rating: Affirmed at "B+" on 16 July 2020 (stable outlook) Short-term issuer credit rating: Affirmed at "B" 16 July 2020 Fitch Ratings: Long-term Issuer Default Rating: Affirmed at "B-" on 2 October 2020 (outlook revised to negative on 7 April 2020) Short-term Issuer Default Rating: Affirmed at "B" on 2 October 2020 Viability Rating: Affirmed at "b-" on 2 October 2020 Moody's Investors Service: Baseline Credit Assessment: Affirmed at "caa1" on 10 November 2020 Short-term deposit rating: Affirmed at "Not Prime" on 10 November 2020 Long-term deposit rating: Affirmed to "B3" on 10 November 2020 (positive outlook) Counterparty Risk Assessment: Affirmed at B1(cr) / Not-Prime (cr) on 10 November 2020 Listing: LSE - BOCH, CSE - BOCH/TPKH, ISIN IE00BD5B1Y92 Visit our website at: www.bankofcyprus.com Bank of Cyprus Holdings 48#49Appendix Bank of Cyprus Holdings Group Financial Results for the nine months ended 30 September 2020 49#50APPENDIX Macroeconomic overview Bank of Cyprus Holdings Group Financial Results for the nine months ended 30 September 2020 50#51S&P credit ratings Dec 12 Apr 13 Aug 13 Dec 13 Apr 14 Jul 14 Nov 14 Mar 15 Jul 15 Nov 15 Feb 16 Jun 16 120 100 80 60 40 Feb-14 Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16 Feb-17 Jun-17 Oct-17 Cyprus maintains investment grade Cyprus Portugal SOURCE: Statistical Service of Republic of Cyprus; 1) Italy Bloomberg Spain Normalised against Germany Government bond with maturity 15/8/2025 except Greece Bank of Cyprus Holdings Cypriot economy more resilient than anticipated earlier in the year Economic sentiment reflects COVID-19 uncertainty Tightening of spreads as market confidence improves Oct 16 Feb 17 May 17 Feb-18 Sep 17 Jan 18 Jun-18 May 18 Oct-18 Sep 18 Feb-19 Dec 18 Jun-19 Apr 19 Oct-19 Aug 19 Feb-20 Dec 19 Mar 20 Jul 20 Jun-20 Oct-20 Nov 20 Greece Ireland BB- BBB- BBB -0.1 0.1 Spreads (%) 22 0.5 0.4 0.3 0.2 0 Jan 2019 Feb 2019- ■ AA- A Cyprus - maturity 4/11/20251 Italy maturity 01/12/20251 2) Due to the Debt swap of the Hellenic Republic, from November 2017 onwards data for the new Hellenic Republic Bond with maturity 30/01/2028 was used and normalised against the closest maturity of German Government bond (DBR) 15/08/2027 51 Apr 2019 May 2019 Jun 2019- Aug 2019- Sep 2019- Nov 2019 Portugal maturity 15/10/20251 Greece - maturity 30/01/20282 Dec 2019 Feb 2020- Mar 2020- May 2020- Spain - maturity 31/10/20251 Nov 2020- Group Financial Results for the nine months ended 30 September 2020#52Covid-19 Recent Developments Bank of Cyprus Holdings Group Financial Results for the nine months ended 30 September 2020 52#53Group Financial Results for the nine months ended 30 September 2020 Timely and strong response by the European and the Cypriot authorities Comprehensive and far reaching measures to support performing businesses and the wider economy Government measures include: 1. Subsidy of interest rate of new Business Loans (€180 mn) European Authorities measures-Implications for Cyprus 1. • Subsidy of interest rate for new loans to self employed and businesses Subsidy of interest rate for 4 years • Application deadline extended to 30 June 2021 2. Subsidy of interest rate of new Housing Loans (€45 mn) Subsidy of interest for 4 years 2. 3. 4. Application deadline extended to 30 June 2021 Financing of SMEs through CYPEF1 (€800 mn) 3. 50%-50% risk sharing between the Government and the banks Government Guarantee to EIB (€1.0 bn) Government additional funding of €500 mn to eligible businesses EU Recovery Fund (€2.4 bn) Cyprus expects to receive €1.1 bn in grants during the period 2021-23 and additional loans up to €1.3 bn The exact amounts will depend on the finalisation of the allocation criteria and on the government's national plan that will be submitted to the European Commission Pan-European Guarantee Fund (PEGF) (€300-€400 m n) Liquidity support to eligible businesses through the PEGF of EIB Guarantee to the banks of up to 80% EU SURE Programme (€479 mn) Financial assistance in the form of loans on favourable terms supporting member states in their employment preservation schemes Process for payment of the disbursement of €250 mn initiated 4. Access to ESM's Pandemic Crisis Support through the Enhanced Conditions Credit Line, for ~€440 mn (2% of GDP) 1) The Cyprus Enterprise Fund Bank of Cyprus Holdings 53#54Group Financial Results for the nine months ended 30 September 2020 Well diversified loan portfolio; close monitoring and set up of strategies to prevent further asset quality deterioration Gross loans (excluding legacy)¹ by business sector of €9.12 bn Breakdown by COVID-19 impact assessment on business sectors € bn €9.12 bn Private Individuals 4.04 • High Impact: (12%) High 12% • Tourism (Hotels & Catering) Hotels & Catering 1.07 Real Estate 1.03 Trade 0.95 Other sectors 0.60 Professional 0.57 & Other services Construction 0.53 Manufacturing 0.33 1) Gross loans as at 30 September 2020 of Corporate (incl. IB and W&M and Global Corporate), SME, Retail, and H/O Bank of Cyprus Holdings Medium 14% Moderate 16% Low 14% 44% Private individuals • Medium Impact: (14%) Trade Manufacturing • Moderate Impact: (16%) Construction Transportation and storage • Low: (14%) Real Estate Education ⚫ Health • Private individuals (44%) Refer to slide 55 54#55Private individuals loan portfolio, highly collateralised Private Individuals: €4.04 bn Other 17% • Low LTV1 housing portfolio 83% Housing Payment deferrals: €2.09 bn 1) Group Financial Results for the nine months ended 30 September 2020 • Housing performing loans: €3.34 bn • 65% of portfolio with LTV1<60% Only 15% of portfolio with LTV1>80% Other: €0.70 bn 62% secured portfolio • • of which 59% with property of which 41% with other type of collateral LTV1 Housing €3.34 bn Other €0.70 bn Other 7% 31% with 21 payment by 31 October 2020 < 60% 65% 30% Personal 8% 60%-80% 20% 5% 80-100% 7% 6% 85% Housing >100% 8% 59% Loan to Value (LTV) is calculated as the Gross IFRS Balance to the indexed market value of the property. Under Pillar 3 disclosure, 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 Bank of Cyprus Holdings 55#56Group Financial Results for the nine months ended 30 September 2020 Business portfolio well diversified, with high quality collateral Business gross loans (excluding Legacy)¹ Breakdown, by Covid-19 impact Payment deferrals • 13% with 21 payment by 31 October 2020 €5.08 bn €3.84 bn ⚫ High Impact: (21%) 21% Tourism (Hotels & Catering) • • Medium Impact: (26%) Trade • Manufacturing Moderate Impact: (28%) 26% 26% 20% Construction 28% 29% • Transportation and storage • Low: (25%) • Real Estate 25% 25% • Education • Health High quality origination via prudent underwriting standards Strong assessment of repayment capability . • Strict origination standards Effective foreclosure law in place, following the amendments in recent years • 99% of new exposures 2 since 2016 were performing at the start of the moratorium • 90% of portfolio secured • . of which 80% with property • of which 20% other type of collateral Low LTV3 business portfolio; 73% of the portfolio with LTV³<80% LTV3 High Medium < 80% 94% 59% Moderate 68% Low Total 77% 73% >80% 6% 41% 32% 23% 27% Total 100% 100% 100% 100% 100% 1) 2) Gross loans as at 30 September 2020 of Corporate (incl. IB and W&M and Global Corporate), SME, Retail and H/O Facilities/limits approved in the reporting period 3) 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 Bank of Cyprus Holdings 56#57Group Financial Results for the nine months ended 30 September 2020 Portfolio exposure to businesses most impacted by COVID-19 Tourism: €1.07 bn Trade: €0.95 bn 30 Jun 2020 Hotels & Catering € bn 30 Sep 2020 € bn % of portfolio 30 Jun 2020 Trade € bn 30 Sep 2020 € bn % of portfolio Food services 0.06 0.06 5% Supermarkets, pharmacies and other essential retail businesses 0.29 0.28 30% Accommodation 1.00 1.01 95% All other 0.71 0.67 70% Total 1.06 1.07 Total 1.00 0.95 Unutilised Liquidity1 0.31 0.34 Unutilised Liquidity¹ 0.88 0.93 - of which deposits 0.26 0.27 26% - of which deposits 0.56 0.62 66% Majority of Accommodation customers entered the crisis with significant liquidity, following strong performance in recent years ~€1.0 bn or 94% under payment deferrals • 30% tied up to lower risk essential retail services, not materially impacted by COVID-19 ⚫ €0.54 bn or 57% under for payment deferrals 1) Unutilised overdraft amounts and deposits Bank of Cyprus Holdings 57#58APPENDIX Additional asset quality slides Bank of Cyprus Holdings Group Financial Results for the nine months ended 30 September 2020 58#59€0.9 bn NPE Trade Delivers Accelerated Risk Reduction €898 mn Helix 2 portfolio (€ mn) Group Financial Results for the nine months ended 30 September 2020 Performing Re-performing NPES/ 898 12 50 30 June 2020 Assets sold Contractual Loans² Gross Loans of which NPES € mn 1.478 Receipts Consideration € mn 422 898 of which: 886 Cash 148 Retail 475 Provisions Held (479) - Deferred Purchase Price 274 €886 m n NPES Other³ 34 Transaction Costs and other adjustments (37) Consideration net of transaction costs and Carrying Value of assets being sold 453 385 other adjustments SMES 259 P/L Impact: (68) Corporate 102 Jun 20 Contractual balance² of €1.48 bn as at 30 June 2020 • Portfolio comprises 22,224 loans, mainly to Retail and SME clients, secured over 5,616 real estate collaterals . Completion remains subject to a number of customary regulatory and other approvals, currently estimated to occur in the 1H2021 1) In pipeline to exit NPEs subject to meet all exit criteria; the analysis is performed on a customer basis (formerly called Non-core NPEs) 2) 3) The difference between the contractual balance and the GBV relates to IFRS adjustments/unrecognised income and non-contractual write-offs DFAs and cash already received by 30 June 2020 Bank of Cyprus Holdings 59#60Foreclosures resumed on 1 September 2020 Cumulative 2016-20181 FY2019 9M2020 Foreclosures commenced² 1,437 1,829 8202 Auctions held 470 807 1642 1,554 properties excluding Helix assets were resolved since 2016 Sold at auction 266 851 Consensual deals 4 3437 Repossessed 1) 2) 3) 4) Excluding Helix Foreclosures suspended between 18 March and 31 August as per the Cyprus Bank Association Properties that have been auctioned unsuccessfully at least once Includes DFAs, restructurings and settlements Bank of Cyprus Holdings Group Financial Results for the nine months ended 30 September 2020 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 436 536 5932 189 373 1642 227 60 60#61Group Financial Results for the nine months ended 30 September 2020 ESTIA- Government scheme for the resolution of NPEs backed by primary residence ΕΣΤΙΑ Clear definition of socially protected borrowers Resolution part of ESTIA- eligible portfolio Identification of non-viable (vulnerable) customers Facilitates resolution of remaining customers mainly through consensual and non consensual foreclosures € mn 189 • Participants Non-viable 93 96 Nov 2020 1) As per latest available figures in November 2020 Bank of Cyprus Holdings Participants: €93 mn¹ Restructured loans will exit NPE definition in accordance with the NPE exit criteria² Non viable: €96 mn¹ Government solution under consideration Non-participants of Estia • . • Enforcement measures initiated for non Estia applicants Focus on realizing collateral via consensual and non-consensual foreclosures On-board assets in REMU at conservative ~25%-30% discount to open market value 61#62Group Financial Results for the nine months ended 30 September 2020 Core NPE risk reduced to €2.10 bn pro forma for Helix 22; 64% cash covered Core NPEs reduced to €2.10 bn pro forma for Helix 22 13.97 € bn 1 Re-performing NPEs 2.61 Core NPES 11.36 3.88 0.43, 3.47 3.24 0.35 0.31, 3.45 3.12 2.93 Dec 15 Dec 19 Jun 20 Sep 20 Core NPES € bn Retail 2.59 3.07 SMEs 11.36 5.70 Corporate 2.04 Retail 1) 2) In pipeline to exit NPEs subject to meet all exit criteria; the analysis is performed on a customer basis (formerly called Non-core NPEs) Calculations on a pro forma basis assume completion of the transaction Bank of Cyprus Holdings Corporate 0.47 3.12 0.61 SMES Corporate 0.45 2.93 0.56 SMEs 1.92 Retail 2.37 0.27 2.10 Sep 20 pro forma for Helix 2 1.45 Retail 2 Corporate 0.34 2.10 0.31 SMES 62#63Continuous progress across all segments Focus shifts to Retail and SME after intense Corporate attention € mn 2,374 Corporate Dec 19 Inflows Exits (144) Sep 20 585 Corporate 387 €472 mn Helix 2 (113) Pro-forma for Helix 21 472 Terminated Corporate 85 SME 130 €366 mn SME Terminated SMEs 236 Retail 370 Terminated Retail 1,166 Sep 2020 pro forma for Helix 2¹ €1,536 mn 1) Calculations on a pro forma basis assume completion of the transaction Bank of Cyprus Holdings Dec 19 Inflows Exits (95) Sep 20 639 Helix 2 (273) Pro forma for 366 Helix 2 727 Group Financial Results for the nine months ended 30 September 2020 722 NPE ratio NPE coverage NPE total coverage Sep 2020 Pro forma¹ 10% 63% 117% Sep 2020 Pro forma¹ NPE ratio 24% NPE coverage 58% NPE total coverage 125% Retail Dec 19 Inflows Exits Velocity 2 Sep 2020 Pro forma¹ 2,431 16 NPE ratio 29% (300) (133) NPE coverage Sep 20 2,014 ➤ Retail Housing 51% Helix 2 (478) Pro forma for Helix 2¹ 1,536 ➤ Retail Other 66% NPE total coverage 131% 63#64Gross loans and NPEs by Customer Type Group Financial Results for the nine months ended 30 September 2020 Gross loans by customer type (€ mn) 15,900 1,795 12,822 12,709 12,491 12,309 4,068 1,875 1,870 11,427 1,710 1,696 1,498 2,977 4,077 4,068 4,060 4,044 3,753 1,922 1,914 1,863 1,798 1,518 7,060 2,209 2,186 2,203 2,117 2,117 2,739 2,671 2,655 2,654 2,541 Dec 18 Dec 19 Mar 20 Jun 20 Sep 20 Sep 20 pro forma for Helix 21 NPEs by customer type (€ mn) 7,419 982 1,490 1,759 3,880 3,738 3,468 1,043 1,026 878 3,238 844 1,388 1,326 1,262 3,188 1,170 727 724 689 639 164 159 147 112- 558 503 492 473 Dec 18 Dec 19 Mar 20 Jun 20 Sep 20 Retail other Retail Housing SMEs Global Corporate Corporate 1) Calculations on a pro forma basis assume completion of the transaction Bank of Cyprus Holdings 2,374 647 889 366 360 -112- Sep 20 pro forma for Helix 21 64#65NPE Coverage and Total coverage by segment Coverage and collateral maintained post Helix 22 Group Financial Results for the nine months ended 30 September 2020 Tangible Collateral¹ Allowance for expected loan credit losses Corporate €360 mn Global Corporate: €112 mn SME €366 mn Retail-Housing €889 mn Retail-Other €647 mn Total €2,374 mn 167% 167% 142% 137% 139% 136% 131% 127% 127% 128% 130% 128% 128% 81% 81% 124% 125% 126% 125% 124% 122% 118% 107% 108% 104% 63% 102% 64% 69% 69% 67% 83% 85% 85% 59% 59% 58% 71% 83% 54% 69% 70% 69% 68% 53% 54% 50% 46% 86% 86% 79% 51% 53% 58% 56% 63% 53% 58% 59% 64% 66% 67% 66% 58% 54% 54% 48% 51% 54% 59% 60% 59% Dec 19 Jun 20 Sep 20 Sep 20 Dec 19 Jun 20 Sep 20 Sep 20 pro forma 2 pro forma² Dec 19 Jun 20 Sep 20 Sep 20 pro forma 2 Dec 19 Jun 20 Sep 20 Sep 20 pro forma 2 Dec 19 Jun 20 Sep 20 Sep 20 pro forma Dec 19 Jun 20 Sep 20 Sep 20 2 pro forma 1) Restricted to Gross IFRS balance 2) Calculations on a pro forma basis assume completion of the transaction Bank of Cyprus Holdings 65#66Asset quality- NPE analysis (€ mn) Sep-20 Jun-20 Mar-20 Dec-19 Dec-18 A. Gross Loans after Residual Fair value adjustment on initial recognition 12,066 12,243 12,457 12,551 15,438 Residual Fair value adjustment on initial recognition 243 248 252 271 462 Group Financial Results for the nine months ended 30 September 2020 B. Gross Loans B1. Loans with no arrears B2. Loans with arrears but not NPES 1-30 DPD 31-90 DPD B3. NPES With no arrears Up to 30 DPD 31-90 DPD 91-180 DPD 12,309 12,491 12,709 12,822 15,900 9,028 8,954 8,706 8,820 8,260 43 69 265 122 221 34 54 209 88 166 9 15 56 34 55 3,238 3,468 3,738 3,880 7,419 533 603 601 722 1,482 19 28 52 54 136 29 39 72 76 231 35 48 79 121 178 181-365 DPD 101 178 255 263 393 Over 1 year DPD 2,521 2,572 2,679 2,644 4,999 NPE ratio (NPES / Gross Loans) 26% 28% 29% 30% 47% Allowance for expected loan credit losses (including 1,933 2,043 2,109 2,096 3,852 residual fair value adjustment on initial recognition¹) Gross loans coverage 16% 16% 17% 16% 24% NPEs coverage 60% 59% 56% 54% 52% 1) 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 Bank of Cyprus Holdings 66#67Bank of Cyprus Holdings 49% 31% 31% 29% 1.85 1.36 1.31 1.25 Trade Manufacturing NPE ratio by economic activity 27% 26% 52% 25% 28% 34% % of total 10% 0.64 0.47 0.45 0.44 31% 31% 1.27 1.08 1.13 1.14 Hotels & Restaurant 68% 23% 53% 4% 9% 7% Analysis of gross loans and NPE ratio by Economic activity Gross loans by economic activity (€ bn) 1.95 0.85 0.82 0.81 1.61 1.29 1.28 1.29 29 Construction Real Estate ■31.12.18 ■31.12.19 Private Individuals ■ 30.06.20 ■30.09.20 Professional and other services Trade Manufacturing Hotels and Catering Construction Real estate Private individuals Professional and Other sectors other services 21% 21% 43% 37% 34% 32% 46% 31% 31% 28% 17% 14% 34% 14% 67 10% ■ 31.12.18 ■31.12.19 30.06.20 30.09.2020 6.47 6.02 5.89 5.85 1.20 1.00 0.86 0.83 47% 0.91 0.75 0.75 0.70 Other sectors 7% 6% Group Financial Results for the nine months ended 30 September 2020#68Group Financial Results for the nine months ended 30 September 2020 Balance sheet de-risking results in a smaller but safer loan book Net Loans: Non-legacy 2 vs Legacy Interest Income on Loans: Non-legacy 2 vs Legacy € mn € bn 15.62 14.55 36% 5.64 12.04 4.40 10.73 105 10.45 10.38 10.04 98 96 3.39 93 1.79 90 1.52 1.45 1.11 11% 29 23 85 23 24 24 18 17 12 64% 9.98 10.15 8.65 8.94 8.93 8.93 8.93 89% 76 75 72 75 15 73 73 Dec 16 Dec 17 Dec 18 Dec 19 Jun 20 Sep 20 Legacy Non-legacy Sep 20 pro forma 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 Legacy Non-legacy for Helix 21 . Lower but higher quality income resulting from balance sheet de-risking • Interest income of non-legacy book decreased by €2 mn qoq • Interest income of legacy book decreased by €1 mn qoq as balance sheet de-risking continues Interest on Net NPEs not received in cash, fully provided • Lending rates remain under pressure due to the sustained low interest rate environment 1) Calculations on a pro forma basis assume completion of the transaction 2) Gross loans as at 30 September 2020 of Corporate (incl. IB and W&M and Global Corporate), SME, Retail, and H/O Bank of Cyprus Holdings 3Q2020 pro forma for Helix 2¹ 1 68#69Risk adjusted yield will rise as Legacy book reduces Profitability Capital & balance Sheet Non- Legacy Legacy Group 9M2020 9M2020 9M2020 • Interest Income on loans (€ mn) (pre FTP) 220 59 279 Loan credit losses (€ mn) (6) (112) (118) Interest Income net of loan credit 214 (53) 161 losses (€ mn) Cost of Risk Effective Yield Risk adjusted Yield¹ • 0.08% 4.36% 1.25% 3.29% 4.88% 3.54% 3.21% (4.45%) 2.04% Group Financial Results for the nine months ended 30 September 2020 • Non-Legacy 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 (€10 mn in 3Q2020) As Legacy book reduces: Group risk adjusted yield expected to rise Group Risk intensity expected to fall supporting CET1 ratio build Average Net Loans (€ mn) 8,930 1,607 10,537 . RWA Intensity² 47% 105% 55% Global corporate, Corporate RRD IB, W&M 1) Interest Income on loans net of allowance for expected loan credit losses/ Average Net Loans 2) Risk Weighted Assets over Total Assets Bank of Cyprus Holdings SME and Retail Banking REMU Overseas non core 69#70Rescheduled Loans Rescheduled loans by customer type (€ bn) 4.89 1.17 0.47 2.73 1.01 2.58 2.35 2.23 0.97 0.94 0.88 0.83 0.44 0.42 2.24 0.38 0.37 0.53 0.52 0.50 0.46 0.34 0.27 0.16 0.16 0.45 0.43 0.43 0.41 Retail other Dec 18 Retail housing Rescheduled loans % gross loans by customer type Dec 19 Mar 20 Jun 20 Sep 20 SMEs Global Corporate Corporate 17% 16% 16% 15% 31% Corporate 15% 12% Global Corporate 7% %8 SMEs 34% 28% Dec 18 Dec 19 Mar 20 Jun 20 Bank of Cyprus Holdings 27% 27% 29% 66666 Retail Housing Sep 20 Retail Consumer Group Financial Results for the nine months ended 30 September 2020 Rescheduled loans-Asset Quality 30 September 2020 Stage 1 Stage 2 Stage 3 POCI FVPL Total € '000 251,983 275,204 1,388,510 194,158 120,880 2,230,735 70 70#71Group Financial Results for the nine months ended 30 September 2020 REMU: €1.31 bn sales of 1,904 properties across all property classes since set-up in Jan 2016 Sales since Real Estate Management Unit set-up Sales contract prices 1 (€ mn) Breakdown of cumulative sales¹ #99 # 331 # 575 # 5792 # 320 by on-boarding year (€ mn) Sales €1.31 bn Legacy 3 505 160 300 2016 2017 2018 2019 2020 558 332 108 €1,308 % Sales of vintage stock (BV)4 57% 47% 50% 30% 330 238 179 345 56 by property type 2016 2017 2018 2019 9M2020 Cyreit Sales # properties • Asset disposal strategy tackles both value and volume of assets • Asset disposals across all property classes • 57% of Legacy³ and 47% of 2016 book assets now sold • 36% of sales (by value) relate to land 1) Amounts as per Sales purchase Agreements (SPAs) 4) 2) 3) Number of properties sold include 21 properties from the disposal of Cyreit and 23 properties from NPE sale (Helix) Legacy properties relate to properties that were on-boarded before REMU set-up in January 2016 Bank of Cyprus Holdings 7% 12% 11% 11% 23% Land 36% Commercial Hotels Residential Cyreit Overseas 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 Jun 2020 71#72Group Financial Results for the nine months ended 30 September 2020 REMU - the engine for dealing with foreclosed assets On-board assets in REMU at conservative ~25%-30% discount to OMV BV € mn Evolution of properties managed by REMU BV € mn Investment Properties Legacy 2016 2017 2018 2019 9M2020 1,490 112 74 (48) (38) 1,467 (11) 109 185 550 275 209 174 74 1,467 1,378 1,358 100% 75% 71% 72% 71% 72% 01 Jan 2020 Additions Sales Impairment loss & fair value losses Transfer to non- current assets and disposal groups held for sale 2 30 Sep 20203 avg on-boarded value as a % of OMV1 Real Estate Market property prices up 2.2% in 2Q20204 Sales contracts (excl. DFAs) for 10M2020 down 24% yoy 5 reflecting COVID-19 lockdown 10.366 -24% 9.242 4.0 Central Bank Residential Property Price index 00 8.734 8.549 110.0 1.8 2.2 7.063 5.885 6.508 2.0 4.875 4.793 90.0 79.4 4.952 78.6 6.328 0.0 5.250 4.023 70.0 3.603 4.367 4.481 -2.0 3.756 50.0 1.349 1.813 2.406 2.485 30.0 -4.0 2015 2016 2017 2018 2019 Q42015 Q22016 Q42016 Q22017 Q42017 Q42018 Q22019 Q42019 2Q2020 Residential Propert Price index (2010Q1=100) Jan-Oct 2019 Jan-Oct 2020 % change y-o-y (RHS) Sales to Cypriots Sales to non-Cypriots 1) Open market value at on-boarding date 2020 relate to legacy properties 2) Stock of property with a carrying value of €11 mn as at 30 September 2020 was transferred to non-current assets and disposal groups held for sale as it was included in the Helix 2 portfolio 4) 5) Based on Residential price index published by Central Bank, dated 23 November 2020 Based on data from Land of Registry- Sales contracts 3) In addition to assets held by REMU, properties classified as "Investment properties" with carrying value of €21 mn as at 30 September Bank of Cyprus Holdings 72#73APPENDIX Additional financial information Bank of Cyprus Holdings Group Financial Results for the nine months ended 30 September 2020 73#74Consolidated Balance Sheet Group Financial Results for the nine months ended 30 September 2020 Assets (€ mn) 30.09.2020 Cash and balances with Central Banks 5,507 31.12.2019 change Liability and Equity (€ mn) 30.09.2020 31.12.2019 change 5,060 9% Deposits by banks 405 533 -24% Loans and advances to banks 529 321 65% Funding from Central Bank 997 Debt securities, treasury bills and equity investments 2,026 1,906 6% Repurchase agreements 124 168 -26% Net loans and advances to customers 10,047 10,722 -6% Customer deposits 16,384 16,692 -2% Stock of property 1,358 1,378 -1% Subordinated loan stock 267 272 -2% Investment properties 130 136 -4% Other liabilities 1,208 1,169 3% Other assets 1,558 1,574 -1% Total liabilities 19,385 18,834 3% Non current assets and disposal groups classified as held for sale 361 26 Shareholders' equity 1,886 2,040 -8% Other equity instruments 220 220 Total assets 21,516 21,123 2% Total equity excluding non- 2,106 2,260 -7% controlling interests Non controlling interests 25 29 -14% Total equity 2,131 2,289 -7% Total liabilities and equity 21,516 21,123 2% Bank of Cyprus Holdings 74#751) Cypriot business Market shares¹ Loans 45.4% 41.1% 41.7% 37.5% 37.1% 36.0% 32.8% 35.1% 31.1% -Deposits Group Financial Results for the nine months ended 30 September 2020 Strong market shares in resident and non-resident deposits Residents Non-residents 41.5% 37.3% 38.3% 35.8% 35.8% 35.7% 34.9% 35.0% 35.0% 35.3% 34.9% 34.8% 35.0% 31.5% 29.5% Dec 16 Dec 17 Dec 18 Dec 19 Jun 20 Sep 20 Dec 16 Dec 17 Dec 18 Dec 19 Jun 20 Sep 20 Average contractual interest rates (bps) (Cy) Yield on Loans Cost of Deposits Customer spread 402 396 392 384 380 Customer deposit rates decline further (bps) (Cy) Time & Notice accounts Savings and Current accounts Cost of deposits 19 16 11 8 6 383 380 381 376 374 39 33 19 24 19 16 11 8 6 15 1 1 0 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 The market share on loans was affected as from 30 September 2018 following a decrease in total loans in the banking sector, mainly attributed to €6 bn non-performing loans of Cyprus Cooperative Bank (CyCB) which remained to SEDIPES (a legal entity without license to operate as a credit institution) as a result of the agreement between CyCB and Hellenic Bank Bank of Cyprus Holdings 75#76Group Financial Results for the nine months ended 30 September 2020 Income Statement bridge¹ for 9M2020 € mn Net interest income Underlying basis NPE sales Other Statutory Basis 250 250 Net fee and commission income 106 106 Net foreign exchange gains and net gains on financial instrument transactions and disposal/dissolution of subsidiaries and associates Insurance income net of claims and commissions 14 19 42 42 Net gains from revaluation and disposal of investment properties and on disposal of stock of properties Other income 2 2 11 11 Total income Total expenses Operating profit Loan credit losses Impairments of other financial and non-financial instruments Provisions for litigation, claims, regulatory and other matters Loss before tax and non-recurring items Tax Profit attributable to non-controlling interests 425 5 430 (273) (17) (13) (303) 152 (17) (8) 127 (118) (87) (5) (210) (36) (36) (4) 4 (6) (104) (9) (119) (7) (7) 4 4 Loss after tax and before non-recurring items (attributable to the owners of the Company) Advisory and other restructuring costs - organic (9) (104) (9) (122) (9) 9 Loss after tax - Organic (attributable to the owners of the Company) Provisions/net loss relating to NPE sales, including restructuring expenses Loss after tax - attributable to the owners of the Company (18) (104) (122) (104) 104 (122) (122) 1) Please refer to section F1 "Reconciliation of income statement between statutory and underlying basis of the Group Financial Results for the period 30 September 2020 Bank of Cyprus Holdings 76#77Analysis of Interest Income and Interest Expense Group Financial Results for the nine months ended 30 September 2020 Analysis of Interest Income (€ mn) 3Q2019 4Q2019 1Q2020 2Q2020 3Q2020 Loans and advances to customers 105 98 96 93 90 Loans and advances to banks and central banks 1 1 0 0 4 Investment at amortised costs 3 3 3 2 2 Investments FVOCI 6 5 5 4 4 Investments classified as loans and receivables 115 107 104 99 100 Trading Investment Derivative financial instruments 9 10 9 8 Other investments at fair value through profit or loss Total Interest Income 124 117 113 108 108 Analysis of Interest Expense (€ mn) Customer deposits (8) (8) (5) (3) (3) Funding from central banks and deposits by banks (1) (0) (0) (0) 0 Subordinated loan stock (6) (6) (6) (6) (6) Repurchase agreements (2) (1) (1) (1) Negative interest on loans and advances to banks and central (5) (5) (4) (4) (5) banks (22) (21) (16) (14) (15) Derivative financial instruments (12) (12) (12) (11) (11) Total Interest Expense (34) (33) (28) (25) (26) Bank of Cyprus Holdings 17 77#78Income Statement by business line for 9M2020 Group Financial Results for the nine months ended 30 September 2020 € mn Net interest income/(expense) Net fee & commission income (expense) Other income Total income Consumer SME Corporate Banking Banking Banking Global corporate International Wealth & Banking Markets RRD REMU Insurance Treasury Other Overseas Total 94 27 49 50 14 2 20 (10) 1 2 250 26 26 6 8 6 36 2 7 (5) 1 20 (1) 106 1 1 4 2 (2) 42 8 13 121 34 34 57 56 54 CO 6 27 (12) 37 10 35 35 69 0 425 Total expenses (116) (16) (13) (9) (23) (4) (33) (6) (14) (10) (24) (5) (273) Operating profit/(loss) 5 18 44 42 47 31 2 (6) (18) 23 0 11 (5) 152 Loan credit losses of customer loans net of gains/(losses) on derecognition of loans and 2 (8) (17) (97) 5 (3) (118) changes in expected cash flows Impairment of other financial and non financial (31) instruments Provision for litigation, claims, regulatory and other matters Profit/(loss) before tax Tax Profit attributable to non controlling interest Profit/(loss) after tax - organic (attributable to the owners of the Company) 1 (5) (36) (4) (4) 7 18 36 30 31 2 (103) (49) 23 0 12 (13) (6) (1) (2) (4) (3) (4) I 13 CO 6 (3) I (8) (1) (7) 4 0 4 CO 6 16 32 27 27 2 (90) (43) 20 0 (14) (9) Profit/(loss) after tax-organic (attributable to the owners of the Company) does not include provisions/net loss relating to NPE sales, including restructuring expenses (attributable to owners of the Company) 1) Bank of Cyprus Holdings 78#79Group Financial Results for the nine months ended 30 September 2020 Risk Weighted Assets - Regulatory Capital Risk weighted assets by Geography (€ mn) Reconciliation of Group Equity to CET1 31.12.18 31.12.19 30.06.20 30.09.20 Helix 2 30.09.20 pro forma² € mn 30.09.20 Cyprus 15,070 12,678 11,765 11,704 (108) 11,596 Group Equity per financial statements Less: Intangibles 2,130 (45) Russia 24 8 5 Less: Deconsolidation of insurance and other entities (206) United Kingdom 84 48 48 48 48 Add: Regulatory adjustments (IFRS 9 and other items) 105 Romania 38 29 21 22 22 Less: Revaluation reserves and other unrealised items CET 11 (249) 1,735 Greece 144 121 115 108 108 Risk Weighted Assets 11,888 Other 13 6 6 6 6 CET1 ratio 1 14.6% Total RWA 15,373 12,890 11,960 11,888 (108) 11,780 CET1 ratio pro forma for Helix 22 14.7% RWA intensity 70% 61% 56% 55% 55% Equity and Regulatory Capital (€ mn) Risk weighted assets by type of risk (€ mn) 31.12.2019 30.06.20 30.09.20 30.09.20 31.12.18 31.12.19 30.06.20 30.09..20 Helix 2 pro forma² Total equity excl. non-controlling interests 2.260 2,095 2,106 Credit risk 13,833 11,547 10,617 10,545 (108) 10,437 CET1 capital 1,909 1,707 1,735 Market risk 2 Tier I capital 2,129 1,927 1,955 Operational risk 1,538 Total 15,373 1,343 12,890 1,343 12,599 1,343 11,888 1,343 Tier II capital 190 199 195 (108) 11,780 Total regulatory capital (Tier I + Tier II) 2,319 2,126 2,150 1) 2) Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments Calculations on a pro forma basis assume completion of the transaction Bank of Cyprus Holdings 79#80Group Financial Results for the nine months ended 30 September 2020 SREP requirement for 2020 at 9.7%, post ECB's capital relaxations for COVID-19 SREP requirements for 2020: CET1 ratio at 9.7% SREP requirements for 2020 Total Capital ratio at 14.5% 1 O-SII 10.5% 0.5% 11.0% 1.0% O-SII1 14.0% 0.5% 14.5% 1.0% CCB2 2.5% 2.5% CCB 2 2.5% 9.7% 2.5% 1.0% Pillar 2R 3.0% 3.0% 2.5% Pillar 2R 3.0% 3.0% Tier 2 2.0% 2.0% 1.7% AT13 Total 1.5% 1.5% Pillar 1 of 8% Pillar 1 4.5% 4.5% 4.5% Pillar 1 4.5% 4.5% 2019 2020 2020 post ECB announcement 2019 2020 • • 1) 2) Per EBA final guidelines on SREP and supervisory stress testing and the Single Supervisory Mechanism's (SSM) 2018 SREP methodology own funds held for the purposes of Pillar II Guidance cannot be used to meet any other capital requirements (Pillar I, Pillar II requirement or the combined buffer requirements), and therefore cannot be used twice4 In May 2020, the Bank received formal notification from the CBC in its capacity as National Resolution Authority, of the final decision by the Single Resolution Board (SRB), for the binding minimum requirement for own funds and eligible liabilities (MREL) for the Bank, determined as the preferred resolution point of entry. The MREL requirement was set at 28.36% of risk weighted assets as of 30 June 2019 and must be met by 31 December 2025. This MREL requirement would be equivalent to 18.54% of total liabilities and own funds (TLOF) as at 30 June 2019. The MREL requirement is in line with the Bank's expectations, and largely in line with its funding plans5 The MREL ratio of the Bank as at 30 Sep 2020, calculated according to SRB's eligibility criteria currently in effect, and based on our internal estimate stood at 18.55% of RWAS In November 2020, the Group received communication from the ECB informing it that no SREP decision will be issued for the 2020 SREP cycle and the 2019 SREP will remain in force hence leaving the Group's capital requirements unchanged as well as other requirements established by the 2019 SREP decision. The communication follows relevant announcement by the ECB earlier in the year that ECB will be taking a pragmatic approach towards the SREP for the 2020 cycle. The Central Bank of Cyprus (CBC) set the O-SII buffer for the Group at 2%. This buffer will be phased-in gradually, having started from 1 January 2019 at 0.5% and increasing by 0.5% every year thereafter, until being fully implemented (2.0%) on 1 January 2022. In April 2020 the CBC, as part of the COVID measures, decided to delay the phasing-in by 12 months (1 January 2023). As a result, the phasing-in of 0.5% on 1 January 2021 has been delayed for 12 months 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 Bank of Cyprus Holdings Additional Tier 1 Capital 3) 4) The new provisions are effective from January 2020 5) This decision is based on the current legislation, is expected to be updated annually and could be subject to subsequent changes by the resolution authorities, especially considering that next year's decision will be under the BRRD II, which among others, may affect the quantum of the MREL requirement, the final compliance period, the subordination requirements and is expected to impose a requirement for a binding interim target for 1 January 2022 80#81Group Financial Results for the nine months ended 30 September 2020 Buffer to MDA Restrictions Level & Distributable Items¹ Maximum Distributable Amount for BOCH CET1 Ratios 14.6% ~.11.0% 359 bps L-1.3% } 9.7% Unfilled AT1 + T2 capacity • The Bank and BOCH having obtained approval by their shareholders, the ECB and the Court of Cyprus and Irish High Court respectively, implemented a capital reduction process in October 2020, which resulted in the reclassification of ~€619 mn and €700 mn of share premium to distributable reserves respectively • No prohibition applies to the payment of coupons on any AT1 capital instruments issued by the Company and the Bank² • Significant CET1 MDA buffer³ (30 Sep 2020): ~359 bps (~€426 mn) CET1 30 Sep 2020 30 Sep 20203 MDA Threshold CET1 Ratio (%) CET1 Req Unfilled AT1 & T2 Bucket [ ] bps Distance to MDA 72 1) 2) 3) Distributable Items definition per CRR Based on the SREP decisions of prior years, the Company and the Bank were under a regulatory prohibition for equity dividend distribution and therefore no dividends were declared or paid during years 2019 and 2018. Following the 2019 SREP decision, which will continue to be in effect in 2021, the Company and the Bank are still under equity dividend distribution prohibition. This prohibition does not apply if the distributions are made via the issuance of new ordinary shares to the shareholders which are eligible as CET1 capital Including phasing in of O-SII buffer (+50 bps). The Central Bank of Cyprus (CBC) set the O-SII buffer for the Group at 2%. This buffer will be phased-in gradually, having started from 1 January 2019 at 0.5% and increased by 0.5% every year thereafter, until being fully implemented on 1 January 2022. In April 2020 the CBC, as part of the COVID measures, decided to delay the phasing-in by 12 months (1 January 2023). As a result, the phasing-in of 0.5% on 1 January 2021 has been delayed for 12 months Bank of Cyprus Holdings 81#82Analysis of Deposits Deposits by Currency (€ bn) 16.38 16.69 1.29 0.29 0.10 16.25 16.30 1.28 0.29 0.10 1.31 -0.27 0.10 1.24 15.01 Dec 19 Deposits by Type (€ bn) 0.28 0.12 Other Currencies 14.58 14.62 14.74 GBP USD EUR Mar 20 Jun 20 Sep 20 Group Financial Results for the nine months ended 30 September 2020 Sep 20 8% 2% 90% 16.69 16.25 16.30 16.38 7.59 7.44 7.62 7.91 Current & demand 41% 48% 1.57 1.65 1.76 1.82 accounts 7.53 Savings accounts 7.16 6.92 6.65 Time deposits 11% Dec 19 Mar 20 Jun 20 Sep 20 Deposits by customer Sector (€ bn) 16.69 16.25 16.30 16.38 Retail 4% 29% 10.15 9.98 10.15 10.22 SME 0.69 0.80 0.71 0.77 0.68 0.79 0.64 0.83 Global Corporate 5% 62% 5.05 4.79 4.68 4.69 Corporate Dec 19 Mar 20 Jun 20 Sep 20 Bank of Cyprus Holdings 82#83Reduction in Overseas Non-Core Exposures Overseas non-core exposures (€ mn) 312 31 240 79 11 23 9 35 183 174 19 7 16 25 23 6220 160 12 193 164 139 135 128 Dec 17 Greece Serbia Bank of Cyprus Holdings Dec 18 Dec 19 Romania Russia UK Jun 20 Sep 20 Group Financial Results for the nine months ended 30 September 2020 • The Group continues its efforts for further deleveraging and disposal of non-essential assets and operations in Greece, Romania and Russia In addition as at 30 September 2020, there were €270 mn of overseas exposures in Greece (€269 mn at 30 June 2020) not identified as non-core exposures 83#84APPENDIX Glossary & Definitions Bank of Cyprus Holdings Group Financial Results for the nine months ended 30 September 2020 84#85Group Financial Results for the nine months ended 30 September 2020 Glossary & Definitions Allowance for expected loan credit losses (previously 'Accumulated provisions') Advisory and other restructuring costs AIEA AT1 Average contractual interest rates Book Value CET1 capital ratio (transitional basis) CET1 fully loaded (FL) Cost of Funding Contribution to DGF Contribution to SRF Cost to Income ratio Cost of Risk CRR DD DFAs DFES DTA 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, (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. Comprise mainly: fees of external advisors in relation to: (i) disposal of operations and non-core assets, and (ii) customer loan restructuring activities. 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, 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 investments (excluding equities and mutual funds). AT1 (Additional Tier 1) is defined in accordance with Articles 51 and 52 of 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 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. Relates to the contribution made to the Deposit Guarantee Fund. Relates to the contribution made to the Single Resolution Fund. 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 balance is calculated as the average of the opening balance and the closing balance). Default Definition. Debt for Asset Swaps. Debt for Equity Swaps. Deferred Tax Assets. Bank of Cyprus Holdings 85#86Group Financial Results for the nine months ended 30 September 2020 Glossary & Definitions Digitally engaged customers ratio Digital transactions ratio DTC EBA ECB Effective yield Effective yield of liquid assets ESMA Foreclosures FTP GBV Gross Loans Gross Sales Proceeds GVA Group H/O IB, W&M 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 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). Historical information has been adjusted to take into account hedging European Securities and Markets Authority Value of on-boarded assets is set at a conservative 25%-30% discount from open market valuations, by two independent sources; Includes consensual and non consensual DFAs and DFES Fund transfer pricing methodologies applied between the business lines to present their results on an arm's length basis Gross Book Value Gross loans are reported before the residual fair value adjustment on initial recognition relating to loans acquired from Laiki Bank (calculated as the difference between the outstanding contractual amount and the fair value of loans acquired) amounting to €243 mn at 30 September 2020 (compared to €248 mn at 30 June 2020 and €271 mn at 31 December 2019). Additionally, gross loans include loans and advances to customers classified and measured at fair value through profit and loss adjusted for the aggregate fair value adjustment of €334 mn at 30 September 2020 (compared to €331 mn at 30 June 2020 and €427 mn at 31 December 2019). Proceeds before selling charge and other leakages Gross Value Added 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. Head Office International Banking, Wealth and Markets Bank of Cyprus Holdings 86#87Group Financial Results for the nine months ended 30 September 2020 Glossary & Definitions IBU Legacy exposures Loan credit losses (PL) (previously 'Provision charge') Loan to Value ratio (LTV) Market shares Net Proceeds Servicing exclusively international activity companies registered in Cyprus and abroad and not residents Legacy exposures are exposures relating to (i) Restructuring and Recoveries Division (RRD), (ii) Real Estate Management Unit (REMU), and (iii) non-core overseas exposures 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. 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 41.5% at 30 September 2020, compared to 41.7% at 30 June 2020, 41.0% at 31 March 2020, 41.1% at 31 December 2019, 40.8% at 30 September 2019, 41.3% at 30 June 2019, 46.7% at 31 March 2019, 45.4% at 31 December 2018 and as at 30 September 2018, 38.6% at 30 June 2018 and 37.4% at 31 March 2018. The market share on loans was affected as at 30 June 2019 following the derecognition of the Helix portfolio upon the completion of Project Helix announced on 28 June 2019. The market share on loans was affected during the quarter ended 31 March 2019 following a decrease in total loans in the banking sector of €1 bn, mainly attributed to reclassification, revaluation, exchange rate and other adjustments (CBC). The market share on loans was affected as at 30 September 2018 following a decrease in total loans in the banking sector, mainly attributed to €6 bn non-performing loans of Cyprus Cooperative Bank (CyCB) which remained to SEDIPES as a result of the agreement between CyCB and Hellenic Bank. The market share on loans was affected as at 30 June 2018 following a decrease in total loans in the banking sector of €2.1 bn, due to loan reclassifications, revaluations, exchange rate or other adjustments (CBC). Proceeds after selling charges and other leakages Net fee and commission income over total income Fee and commission income less fee and commission expense divided by total income (as defined). Net interest margin (NIM) Net loans and advances to customers Net loan to deposit ratio New lending Net interest margin is calculated as the net interest income (annualised) divided by the 'quarterly average interest earning assets' (as defined). Comprise gross loans (as defined) net of allowance for expected loan credit losses (as defined, but excluding credit losses on off-balance sheet exposures). Net loan to deposit ratio is calculated as gross loans (as defined) net of allowance for expected loan credit losses (as defined) divided by customer deposits. New lending includes the average YTD change (if positive) for overdraft facilities. Bank of Cyprus Holdings 87#88Group Financial Results for the nine months ended 30 September 2020 Glossary & Definitions Non-interest income Non-recurring items NPES Non-interest income comprises Net fee and commission income, Net foreign exchange gains and net gains on financial instrument transactions and disposal/dissolution of subsidiaries and associates (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 'Consolidated Condensed Interim Income Statement - Underlying basis' relate to the following items, as applicable: (i) advisory and other restructuring costs - organic, (ii) restructuring costs – Voluntary Staff Exit Plan (VEP), (iii) Provisions/net loss relating to NPE sales, including restructuring expenses, (iv) Loss on remeasurement of investment in associate upon classification as held for sale (CNP) net of share of profit from associates, and (v) Reversal of impairment of DTA and impairment of other tax receivables. According to the EBA standards and ECB's Guidance to Banks on Non-Performing Loans (published in March 2017), 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, distress restructuring and obligor bankruptcy, (iii) material exposures as set by the CBC, which are more than 90 days past due, (iv) performing forborne exposures under probation for which additional forbearance measures are extended, and (v) performing forborne exposures under probation that present more than 30 days past due within the probation period. 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. The NPEs are reported before the deduction of allowance for expected loan credit losses (as defined). The exit criteria of NPE forborne are the following: 1. The extension of forbearance measures does not lead to the recognition of impairment or default 2. One year has passed since the forbearance measures were extended 3. There is not, following the forbearance measures, any past due amount or concerns regarding the full repayment of the exposure according to the post forbearance conditions NPE coverage ratio (previously 'NPE Provisioning coverage ratio') NPE ratio NPES sales NSFR OMV Operating profit p.p. Non-legacy Phased-in Capital Conservation Buffer (CCB) Bank of Cyprus Holdings 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). NPE sales refer to sales of NPE portfolios completed in each period and contemplated sale transactions, as well as potential further NPE sales, at each reporting date, irrespective of whether or not they met the held for sale classification criteria at the reporting dates. They include both Project Helix and Project Helix 2, as well as other portfolios. The NSFR is calculated as the amount of "available stable funding" (ASF) relative to the amount of "required stable funding" (RSF), on the basis of Basel III standards. Its calculation is a SREP requirement. The EBA NSFR will be enforced as a regulatory ratio under CRR II in 2021. Open Market Value 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 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). 88#89Glossary & Definitions Group Financial Results for the nine months ended 30 September 2020 Loan credit losses for impairment of customer loans 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) Project Helix 2 qoq Restructured loans Risk adjusted yield RRD RWA RWA Intensity Special levy Stage 2 & Stage 3 Loans Tangible Collateral Total Capital ratio Total expenses Credit losses for impairment of customer loans and gains/(losses) on derecognition of loans and changes in expected cash flows on acquired loans 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'). Project Helix 2 refers to the portfolio of loans with a gross book value of €898 mn as at 30 June 2020 for which an agreement for sale was reached on 3 August 2020. For further information please refer to section A.1.4 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 Interest Income on Loans net of allowance for expected loan credit losses/Net Loans Restructuring and Recoveries Division Risk Weighted Assets Risk Weighted Assets over Total Assets Relates to the special levy on deposits of credit institutions in Cyprus. Include purchased or originated credit-impaired Restricted to Gross IFRS balance 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 and contributions to the Single Resolution Fund (SRF) and Deposit Guarantee Fund (DGF). It does not include 'advisory and other restructuring costs-organic', or any restructuring costs relating to the Voluntary Staff Exit Plan, or any restructuring costs relating to NPE sales. 'Advisory and other restructuring costs-organic' amounted to €3 mn for 3Q2020 (compared to €3 mn for 2Q2020, €3 mn for 1Q2020 and €8 mn for 4Q2019). Restructuring costs relating to NPE sales amounted to Nil for 3Q2020 (compared to €1 mn for 2Q2020, €3 mn for 1Q2020 and €10 mn for 4Q2019). Restructuring costs relating to the Voluntary Staff Exit Plan amounted to €81 mn for 4Q2019.. Bank of Cyprus Holdings 89#90Glossary & Definitions Group Financial Results for the nine months ended 30 September 2020 Total income Total income comprises net interest income and non-interest income (as defined). Total loan credit losses, impairments and provisions T2 Underlying basis Write offs yoy Total loan credit losses, impairments and provisions comprises loan credit losses (as defined), plus impairments of other financial and non-financial assets, plus provisions for litigation, claims, regulatory and other matters. 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 Bank of Cyprus Holdings 90 90