#1Bank of Cyprus Group Group Financial Results For the quarter ended 31 March 2021 Bank of Cyprus Holdings KOINO WKYMPI WN اد#2Group Financial Results for quarter ended 31 March 2021 DISCLAIMER This presentation has not been 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. Important Notice Regarding Additional Information Contained in the Investor Presentation The presentation for the Group Financial Results for the quarter ended 31 March 2021 (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 and (ii) ESG performance metrics. Except in relation to any non-IFRS measure, the financial information contained in the Investor Presentation has been prepared in accordance with the Group's significant accounting policies as described in the Group's Annual Financial Report 2020. The Investor Presentation should be read in conjunction with the information contained in the Press Release and neither the financial information in the Press Release nor in the Investor Presentation constitutes statutory financial statements prepared in accordance with International Financial Reporting Standards. Forward Looking Statements This document contains certain forward-looking statements which can usually be identified by terms used such as "expect", "should be", "will be" and similar expressions or variations thereof or their negative variations, but their absence does not mean that a statement is not forward-looking. Examples of forward-looking statements include, but are not limited to, statements relating to the Group's near term, medium term and longer term future capital requirements and ratios, intentions, beliefs or current expectations and projections about the Group's future results of operations, financial condition, expected impairment charges, the level of the Group's assets, liquidity, performance, prospects, anticipated growth, provisions, impairments, business strategies and opportunities. By their nature, forward-looking statements involve risk and uncertainty because they relate to events, and depend upon circumstances, that will or may occur in the future. Factors that could cause actual business, strategy and/or results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements made by the Group include, but are not limited to: general economic and political conditions in Cyprus and other European Union (EU) Member States, interest rate and foreign exchange fluctuations, legislative, fiscal and regulatory developments, information technology, litigation and other operational risks, adverse market conditions, the impact of outbreaks, epidemics or pandemics, such as the COVID-19 pandemic and ongoing challenges and uncertainties posed by the COVID-19 pandemic for businesses and governments around the world. Should any one or more of these or other factors materialise, or should any underlying assumptions prove to be incorrect, the actual results or events could differ materially from those currently being anticipated as reflected in such forward looking statements. The forward-looking statements made in this document are only applicable as at the date of publication of this document. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained in this document to reflect any change in the Group's expectations or any change in events, conditions or circumstances on which any statement is based. Bank of Cyprus Holdings 2#3Highlights Bank of Cyprus Holdings Group Financial Results for quarter ended 31 March 2021 3#41Q2021 - Highlights Group Financial Results for quarter ended 31 March 2021 COVID-19 Developments Positive Organic Performance €487 m n New lending €45 mn Operating Profit Cypriot economy gradually recovering Continuing to support this recovery; new lending of €487 mn, up 30% qoq Cyprus ranks 4th in the EU in COVID-19 vaccine doses administered per 100 people1 48% of adult population in Cyprus already vaccinated² with first dose; on track to reach 65% by end of June Total income of €136 mn, down 3% qoq Cost of risk of 66 bps, improved by 33 bps qoq Organic profit after tax of €14 mn, up €12 mn qoq Profit after tax of €8 mn, vs loss after tax of €49 mn in 4Q2020 Operating Efficiency 60% Cost/Income³ Good Capital Strong Liquidity 14.6% CET1 ratio 4,5 Balance Sheet Repair Continuing 7% • Net NPE ratio4 • • • . Total operating expenses³ of €82 mn down 9% qoq driven by seasonality Cost to income ratio³ at 60%, down 4 p.p. qoq CET1 ratio of 14.6% 4,5 and Total Capital ratio of 18.3%4,5 Successful refinancing of Tier 2 in April 2021 at a significantly lower coupon rate; Total Capital ratio expected to increase to 19.2%4,5,6 Deposits at €16.3 bn, broadly flat qoq; Significant surplus liquidity of €4.9 bn (LCR at 284%) €0.5 bn NPE sale (Helix 2 Portfolio B) signed in January 2021 NPEs at €1.7 bn4 (€0.7 bn net 4) Gross NPE ratio at 16%4 stable qoq4 (7% net4); organic NPE reduction impacted by lockdown Coverage maintained at 59%4 95% of performing loans under expired payment deferrals with an instalment due by 14 May 2021, presented no arrears Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements On the basis of 31 March 2021 figures. Together with the Existing Notes that remain outstanding after the Tender Offer of €43 mn, the Total Capital ratio pro forma for Helix 2 is expected to increase to 19.5%, including 28 bps relating to the outstanding Existing Notes. The Existing Notes are redeemable at the option of the Bank (subject to applicable regulatory consents) in January 2022. 5) 1) 2) 3) According to ECDC; https://vaccinetracker.ecdc.europa.eu/public/extensions/COVID-19/vaccine-tracker.html#uptake-tab Data as at 21 May 2021. 20% have completed their vaccination regime (Source: Ministry of Health) Excluding Special Levy and contributions to SRF and DGF 6) 4) Pro forma for Helix 2 (Portfolio A and B). Calculations on a pro forma basis assume legal completion of the transaction 7) As at 31 March 2021 Bank of Cyprus Holdings 4#5GDP contraction of 1.6% in 1Q2021, continuing to outperform Euro area Economy contracted by 1.6% in 1Q2021; significant rebound expected in 2021 • Open, small and flexible economy which has demonstrated historically that it can quickly recover from economic crises 4.3%-4.4% 3.8%-4.4% 1.1% 3.0% -3.6% 3.6% -3.9% • Small GDP contraction of 1.6% in 1Q2021 resulting from reintroduction of restrictive measures -4.60% -4.4% -1.6% -3.3% -12.5% -1.8% 2021E 2022E -4.2% -4.9% • Gradual recovery underway; Cypriot economy expected to grow by 3.0%- 3.6% during 2021 and 3.6%-3.9% in 2022 -14.6% 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 • Successful management of the pandemic to date, enabling substantial lifting of restrictive measures as of 17 May 2021 Cyprus Euro Area • • - Fewest days of lockdown in EU - Cyprus ranks 4th in the EU in COVID-19 vaccine doses administered per 100 people¹ - 48% of adult population already vaccinated 2; on track to reach 65% by end of June A recovery in tourist activity is expected from 2H2021; reduction in international tourist arrivals in 2021 vs 2019, expected to be partly offset by domestic tourism UK, Russia and Israel account for >60% of tourism arrivals, which are well progressed with vaccination plans Gross Value Added by sector of economic activity (2019) 6% 23% 12% Accommodation 7% Trade Transport Information Manufacturing Education 11% Real estate Health Professional & Administrative Construction Other 4% 6% 6% 11% 7% 7% 1) According to ECDC; https://vaccinetracker.ecdc.europa.eu/public/extensions/COVID-19/vaccine-tracker.html#uptake-tab 2) Data as at 21 May 2021. 20% have completed their vaccination regime (Source: Ministry of Health) Bank of Cyprus Holdings Sources: Cyprus Statistical Service, IMF, European Commission and Economics Research centre of University of Cyprus 5#6Group Financial Results for quarter ended 31 March 2021 New lending' of €487 mn in 1Q2021, up 30% qoq Strongest new lending¹ quarter since the pandemic outbreak Monthly new lending data showing improving trend yoy € mn € mn +30% 487 451 37 32 374 7 233 288 206 206 9 174 238 18 117 62 63 62 99 33 63 24 79 25 117 102 98 69 67 27 40 43 57 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 Shipping & International loans SME Retail other Corporate Retail Housing 1) 2) 3) Refer to slide 70 for definition of new lending Includes syndicated loans As at 31 March 2021 Bank of Cyprus Holdings 42% Market share in loans³ up 1 p.p. yoy lockdown lockdown 179 161 147 122 123 98 95 103 90 118 126 130 78 62 Jan Febi Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2021 2021 2021/ Corporate up 34% qoq, as economic activity continues to improve • Demand for business loans expected to increase in line with economic recovery • Retail housing remain above pre-COVID 19 levels, supported by government interest rate subsidy scheme; €117 mn new housing loans approved since the beginning of the scheme; pipeline of c.€104 mn as at mid-May 2021 High quality origination via prudent underwriting standards • Strong assessment of repayment capability • Strict origination standards 6#7Group Financial Results for quarter ended 31 March 2021 Strong performance of moratorium portfolio Performing loans¹ under expired payment deferrals of €5.08 bn € bn 95% of performing loans¹ under expired payment deferrals² with no arrears Performing loans¹with 5.08 instalments due by 14 May 2021 4.18 Performing loans¹ with 0.55 instalments due after 14 May 2021 0.31 0.90 > 0.04 31 Mar 2021 15 May -30 Jun 2021 2H2021 Post 2021 Cautiously optimistic based on customer behaviour by 14 May 2021 82% of performing loans¹ under payment deferrals that expired on 31 Dec 2020, had instalments due by 14 May 2021: • 95% (€3.97 bn) present no arrears, of which €0.26 bn have been restructured • 5% (€0.21 bn) in arrears 1) As at 31 March 2021 2) With instalment due by 14 May 2021 Bank of Cyprus Holdings 5% 6% 95% no arrears €4.18 bn 89% • Restructurings: Resumed payments as per original schedule Restructured In arrears • Strong track record in dealing with restructurings Targeted restructuring solutions to alleviate pandemic- • • related short-term cash flow burden, following rigorous assessment of repayment ability Mostly in the tourism sector Arrears: • In close contact with customers with early arrears to offer solutions as necessary 7#8Group Financial Results for quarter ended 31 March 2021 Private individuals loan portfolio, highly collateralised Private Individuals: €4.12 bn 96% of performing loans 2 to private individuals under expired payment deferrals had instalments due by 14 May 2021; 91% with no arrears Other 17% € bn 1.86 83% Housing Performing loans 2 with instalments due by 14 May 2021 Performing loans² with instalment due after 14 May 2021 1.79 0.07! 31 Mar 2021 LTV1 Housing €3.43 bn Other €0.69 bn • < 60% 64% 30% 60%-80% 21% 5% 80-100% >100% 7% 8% 7% 58% 91% no arrears 9% 1% €1.79 bn 90% 91% (€1.62 bn) present no arrears, of which c. €20 mn have been restructured 9% (€0.17 bn) in arrears Resumed payments as per original schedule Restructured In arrears Housing performing loans: €3.43 bn Low LTV1 housing portfolio 64% of portfolio with LTV1<60% Only 8% of portfolio with LTV1>100% • Other: €0.69 bn • 62% secured portfolio of which 59% with property of which 41% with other type of collateral 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 As at 31 March 2021 1) 2) Bank of Cyprus Holdings 8#9Group Financial Results for quarter ended 31 March 2021 Business portfolio well diversified, with high quality collateral Breakdown of Non legacy loans¹ by Covid-19 impact 74% of performing business ³ loans under expired payment deferrals had instalments due by 14 May 2021; 98% present no arrears Low 35% €5.18 bn Real Estate Education Health • Moderate High 22% • Tourism 3% Medium 40% Trade Administrative Other services • Manufacturing Construction Transportation & storage € bn €3.22 bn Performing loans 3 with installments due by 14 May 2021 2.39 Performing loans 3 with instalments due after 14 May 2021 0.83 31 Mar 2021 98% no arrears 10% 2% €2.39 bn 88% Resumed payments as per original schedule Restructured In arrears 73% of the portfolio with LTV2<80% 1) 2) 3) 4) 74% of business performing loans³ under expired payment deferrals had instalments due by 14 May 2021: LTV2 High Medium Moderate Low Total • < 80% 94% 61% 57% 76% 73% >80% 6% 39% 43% 24% 27% Total 100% 100% 100% 100% 100% Gross loans as at 31 March 2021 of Corporate (incl. IB and W&M and Global Corporate), SME, Retail and H/O 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 As at 31 March 2021 Restructurings for the period Mar 2017-Jun 2019 Bank of Cyprus Holdings 98% (€2.35 bn) present no arrears, of which €0.24 bn have been restructured; Mostly in the tourism sector 2% (c.€40 mn) present arrears Targeted restructuring solutions to alleviate pandemic-related short-term cash flow burden, following rigorous assessment of repayment ability Strong track record in dealing with restructurings; 92%4 of corporate restructured loans prior to moratorium presented no arrears 9#10Group Financial Results for quarter ended 31 March 2021 31 Dec 2020 € bn 31 Mar 2021 € bn 0.06 0.06 Portfolio exposure to businesses most impacted by COVID-19 Tourism: €1.15 bn Hotels & Catering Food services Trade: €0.89 bn % of portfolio 31 Dec 2020 31 Mar 2021 Trade € bn € bn % of portfolio 5% Supermarkets, pharmacies and 0.26 0.26 30% other essential retail businesses Accommodation 1.06 1.09 95% All other 0.63 0.63 70% Total 1.12 1.15 Total 0.89 0.89 Unutilised Liquidity¹ 0.32 0.32 Unutilised Liquidity1 0.95 0.88 - of which deposits 0.26 0.26 22% - of which deposits 0.60 €0.56 63% • • A recovery in tourist activity is expected from 2H2021; reduction in international tourist arrivals in 2021 vs 2019, expected to be partly offset by domestic tourism Majority of Accommodation customers entered the crisis with significant liquidity, following strong performance in recent years 98% of tourism portfolio is secured by property 94% of tourism portfolio with LTV <80% c. €1.0 bn performing loans² under expired payment deferrals; 60% had instalments due by 14 May 2021; • 99% present no arrears, of which c.€190 mn have been restructured 1% in arrears Bank of Cyprus Holdings . 30% tied up to lower risk essential retail services, not materially impacted by COVID-19 €0.33 bn performing loans² under expired payment deferrals; 90% had instalments due by 14 May 2021; • 96% present no arrears, of which €6 mn have been restructured 4% in arrears 1) Unutilised overdraft amounts and deposits 2) As at 31 March 2021 10#11Profitability Group Financial Results for quarter ended 31 March 2021 Bank of Cyprus Holdings 11#12Positive Organic Performance in 1Q2021 Positive Organic Performance in 1Q2021 2 14 -23 1Q2020 4Q2020 1Q2021 Group Financial Results for quarter ended 31 March 2021 Net Interest Income down 5% qoq Net Fee and Commission broadly flat qoq 85 80 60 -5% 76 1Q2020 4Q2020 1Q2021 Non Interest Income down 2% qoq -2% Total Operating Expenses ¹ down 9% qoq 58% 64% 60% 60 62 29 60 91 84 82 41 35 32 1Q2020 4Q2020 1Q2021 1) 2) Excluding Special Levy and contributions to SRF and DGF Impairments of financial and non-financial assets Bank of Cyprus Holdings +1% 38 38 39 1Q2020 4Q2020 1Q2021 Provisions and Impairments down 34% qoq 70 4 2 -34% 40 26 64 5 49 50 50 31 50 20 1Q2020 4Q2020 1Q2021 1Q2020 4Q2020 1Q2021 Operating expenses Staff costs Cost to Income ratio¹ Provisions for litigations and other Impairments² 2 Loan credit losses 12#13Group Financial Results for quarter ended 31 March 2021 Income Statement € mn Net Interest Income 1Q2021 1Q2020 4Q2020 909% yoy% • 76 85 80 -5% -10% Non interest income 60 60 62 -2% -0% Total income 136 145 142 -3% -6% Total operating expenses¹ (82) (84) (91) -9% -1% • Operating profit 45 52 45 1% -15% Total loan credit losses, impairments and (26) (70) (40) -34% -63% provisions • Profit/(loss) after tax-Organic 14 (23) 2 (attributable to the owners) Exceptional items² (6) (3) (51) -89% 99% • Profit/(loss) after tax-attributable to 8 (26) (49) owners Key Ratios Net Interest margin (annualised) 1.63% 1.95% 1.75% -12 bps Cost to income ratio 67% 64% 69% -2 p.p. -32 bps 3 p.p. Cost to income ratio excluding special levy and contributions to SRF 60% 58% 64% -4 p.p. 2 p.p. and DGF NII for 1Q2021 reduced to €76 mn mainly due to higher interest collections in 4Q2020 of c.€2.5 mn not previously recognised and continuing pressure from the low interest rate environment NIM reduced to 1.63% for 1Q2021, negatively impacted mainly by the increase in liquid assets following the participation in TLTRO III in 1Q2021, with €1.7 bn Non interest income for 1Q2021 reduced to €60 mn, driven mainly by lower REMU gains Total operating expenses¹ decreased to €82 mn for 1Q2021, down 9% qoq, driven by seasonally lower operating expenses, and down 1% yoy Provisions and impairments for 1Q2021 reduced to €26 mn, due to lower loan credit losses; cost of risk at 66 bps. Provisions and impairments down 63% yoy as a result of the impact of IFRS 9 Forward Looking Information (FLI) of €28 mn in 1Q2020 Profit after tax at €8 mn for 1Q2021, representing an ROTE³ of 2% Cost of Risk (annualised) 0.66% 2.00% 0.99% -33 bps -134 bps EPS Organic (€ cent) 3.16 -5.14 0.42 2.74 8.30 1) Excluding Special Levy and contributions to SRF and DGF 2) 3) Exceptional items for 1Q2021 relate to €6 mn provisions/net loss of NPE sales including restructuring expenses, compared to €3 mn for 1Q2020. For 4Q2020 exceptional items of €51 mn relate to provisions/net loss of NPE sales including restructuring expenses of €42 mn, cost of targeted Voluntary Exit Plan of €6 mn and DTC levy of €3 mn Return on Tangible Equity (ROTE) is calculated as Profit after Tax (annualised) divided by Shareholders' equity minus intangibles assets 13 Bank of Cyprus Holdings#14Drivers of NIM NII for 1Q2021 at €76 mn Effective yield on assets & cost of funding Group Financial Results for quarter ended 31 March 2021 195 188 179 NII (€ mn) 85 83 82 80 76 NIM (bps) - Non-Legacy Legacy 175 163 3,5 -Liquids Cost of funding Interest income 100 95 95 560 Liquids¹ 91 -2- 2. 8 86 Legacy 24 18 3. 63 515 497 452 446 17 18 16 Non-Legacy 72 75 15 74 71 67 20 324 338 331 4 314 1 301 5 -30 -25 -23 -20 -17 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 1Q2020 2Q2020 3Q20205 4Q2020 1Q2021 • Interest expense Net derivative -3 -2 -3 -2 -2 Other² -6 -6 Subordinated -6 • -6 -6 loan stock -3 -2 -3 Customer -3 -10 -5 -11 deposits -12 -13 -15 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 sustained low interest rate environment and competition pressure Higher-yielding, higher-risk legacy loans are reducing as we successfully exit NPEs TLTRO III borrowing of €1.7 bn in 1Q2021, increasing funding from central banks to €2.7 bn • Based on current ECB rates, NII benefit for the period Jun 2020-Jun 2021 estimated at c.€7 mn, recognised over the respective period in the income statement Potential NII benefit for the period Jun 2021-Jun 2022 at c.€13.5 mn6 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 60 3) 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) 4) 5) 6) 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) Interest income of non-legacy book for 3Q2020 increased from €73 mn to €74 mn since previously disclosed on 27 November 2020, following a transfer of €1 mn from liquids to non-legacy interest income Based on current ECB rates and provided the Bank meets the lending thresholds Bank of Cyprus Holdings 14#15Non interest income at €60 mn in 1Q2021 (€ mn) 26% Net fee & Commission % of Total Income 23% 26% 27% 28% 60 60 62 60 55 10 10 5 2 11 14 1623 655 2. 18 13 38 38 39 33 35 49 51 48 52 1) 2) 1Q2020 (1) 2Q2020 Net FX and other income REMU² Recurring income 3Q2020 4Q2020 Insurance income net of insurance claims 1 Net fee & commission Net FX gains/(losses) & Net gains/(losses) on financial instruments, and other income Gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties Bank of Cyprus Holdings 1Q2021 Group Financial Results for quarter ended 31 March 2021 . . . . Non interest income for 1Q2021 reduced to €60 mn qoq, reflecting mainly lower REMU gains² Net fee and commission income increased to €39 mn mainly due to extension of liquidity fees and introduction of revised price list in Feb 2021, partially offset by lower transactional fees due to lockdown in 1Q2021 Net insurance income at €13 mn down 9% qoq, mainly driven by seasonally lower premiums, partially offset by lower claims REMU gains² decreased to €2 mn in 1Q2021 mainly due to higher net revaluation gains relating to specific properties in Greece in 4Q2020; REMU sales remain volatile 15#16Group Financial Results for quarter ended 31 March 2021 Profitable Life and Non-life Insurance business with further opportunities to grow EuroLife KOINO WKYNPIW ww KOINO ΚΥΠΡΙ S WHE General Insurance of Cyprus Sustainable healthy profitability in 1Q2021 Sustainable healthy profitability in 1Q2021 € mn 1Q2021 1Q2020 yoy% € mn 1Q2021 1Q2020 yoy% Insurance income 13.4 12.8 5% Total regular income1 33.2 31.9 4% (of which GWP2) 12.4 11.7 5% (of which GWP2) 32.6 31.3 4% Costs and claims (7.6) (7.0) 9% Costs and claims (17.4) (20.5) -15% Net insurance income 7.4 5.6 32% Net insurance income 5.7 5.8 0% • Market leader in Life Insurance with market share of 25%³ . Market share of 13%³ in a highly fragmented market with >20 companies • Assets under management increased to €500 mn, up 4% since 31 Dec 2020 • Net insurance income of €6 mn for 1Q2021, flat yoy . GWP2 increased to €33 mn up 4% yoy • Robust solvency capital ratio of 173% as at 31 Dec 2020 • Robust solvency capital ratio of 231% as at 31 Dec 2020 12% contribution to non interest income 1) 2) 3) Total regular income includes yearly renewable gross written premiums and occupational pension contributions Gross written premium As at 31 December 2020 (based on market statistics) Bank of Cyprus Holdings 10% contribution to non interest income 16#17Group Financial Results for quarter ended 31 March 2021 Total Operating Expenses down 9% qoq Total operating expenses ¹ down 9% qoq and broadly flat yoy Cost to income ratio¹ at 60% for 1Q2021 (€ mn) 62% 64% 58% 60% 57% 91 84 81 84 82 35 34 35 41 32 49 47 49 50 50 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 1 1 Other operating expenses Staff costs C/I ratio • Staff costs of €50 mn for 1Q2021, flat qoq Operating expenses of €32 mn for 1Q2021, down 21% qoq, mainly due to seasonally lower marketing, consultancy and professional fees C/I ratio of 60%¹ for 1Q2021 down 4 p.p. qoq, mainly due to lower operating expenses C/I ratio¹ for 1Q2021 pro forma for Helix² at 64% 1) Excluding Special Levy and contributions to SRF and DGF 2) Pro forma for Helix 2 (Portfolio A and B). Calculations on a pro forma basis assume legal completion of the transaction Bank of Cyprus Holdings 64% Mid 60s% 60% 60% 58% 57% Mid 50s% 1Q2020 1H2020 FY2020 1Q2021 1Q2021 pro forma FY2021 Medium term for Helix 22 • • 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 C/I ratio¹ to reduce to mid 50s% in the medium term 17#18Group Financial Results for quarter ended 31 March 2021 Leverage leading Digital Capabilities to serve customers and the economy Vision Digital Transactions ratio1 . 1) 2) 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 Mar 2020 Mar 2021 78.5% 85.1% Digitally Engaged 2 Customers Mar 2020 Mar 2021 69.7% 75.4% Creating shareholder value Improving operational efficiency through: • further automation • further branch rationalisation Opportunities to cross-sell through: • modelling customers' needs and behaviours ⚫ offering tailored products and services ☐ Average mobile logins per month Mar 2020 Mar 2021 15.4x 18.6x Active users of Internet and/or Mobile Banking Mar 2020 256k Mar 2021 299k 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 18#19Balance Sheet Group Financial Results for quarter ended 31 March 2021 Bank of Cyprus Holdings 19#20Balance sheet composition Total assets € bn 23.04 21.51 2.21 Other assets 2.21 (including HFS) 1.43 0.82 REMU properties 1.46 Legacy net loans 0.88 9.12 3. Non-legacy net loans 9.00 AIEA¹Mix 1Q2021 2.11 Securities² 1.91 0.42 Due from banks 0.40 Liquids 45% AIEA¹: €19.0 bn Cash and balances 6.93 5.65 with Central Banks 31 Dec 2020 7% Legacy 31 Mar 2021 net loans 1) AIEA: Average Interest Earning Assets. Please refer to slide 68 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 Group Financial Results for quarter ended 31 March 2021 Total equity & liabilities € bn 23.04 1.27 21.51 Other 1.25 2.09 Equity 0.25 2.07 Wholesale Funding from 0.27 2.69 1.00 Central Bank 0.39 0.41 Due to banks Non- legacy 48% net loansз Customer deposits 16.53 16.33 31 Dec 2020 31 Mar 2021 20#21CET1 at 14.6% pro forma for Helix 24 min OCR (SREP) requirement for 2020 post ECB Announcement ³ 18.3% 1.7% 14.8% 0.4% (0.2%) (0.1%) 14.4% 14.6% 2.0% (0.5%) 0.2% 9.7% 9.7% CET1 31 Dec Operating 2020 1 Provisions Other profit and impairments 2 Phasing in CET1 31 Mar of IFRS9 2021 Helix 2 1 CET1 31 Mar 2021 pro form a for 1,4 Helix 2 AT1 T2 Total capital ratio 31 Mar 2021 pro forma 14.5% for Helix 2 1,4 Group Financial Results for quarter ended 31 March 2021 • CET1 ratio¹ positively impacted by: c.40 bps organic capital generation from operating profitability • CET1 ratio¹ negatively impacted by: • c.20 bps from provisions and impairments • c.45 bps from the phasing in of IFRS 9 The CET1 ratio fully loaded of 13.1% and 13.3% pro forma for Helix 24 • Onsite inspection and review by the SSM on the stock of REMU properties completed. Findings relating to a prudential charge of up to 44 bps, the majority of which is expected to be taken at 30 Jun 2021, depending on the Bank's progress in disposing the properties impacted by the prudential charge Successful refinancing of Tier 2 in April 2021;Total capital ratio expected to increase by c. 100 bps to 19.2% 1,4,5 1) 2) 3) 4) 5) Allowing for IFRS 9 and starting from 3Q2020, also for temporary treatment for certain FVOCI instruments transitional arrangements Loan credit losses and other impairments include the net change of the prudential charges relating to specific credits and other items 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) Pro forma for Helix 2 (Portfolio A and B). Calculations on a pro forma basis assume legal completion of the transaction On the basis of 31 March 2021 figures. Together with the Existing Notes that remain outstanding after the Tender Offer of €43 mn, the Total Capital ratio pro forma for Helix 2 is expected to increase to 19.5%, including 28 bps relating to the outstanding Existing Notes. The Existing Notes are redeemable at the option of the Bank (subject to applicable regulatory consents) in January 2022. Bank of Cyprus Holdings 21#22Group Financial Results for quarter ended 31 March 2021 Successful €300 mn Tier 2 issuance repositions Bank of Cyprus Orderbook oversubscribed almost 4x with more than 140 investors 10% • ⚫ Key highlights • Issuance of €300 mn Tier 2 notes in April 2021 to refinance outstanding €250 mn 9.25% Tier 2 issued in 2017 . Final orderbook oversubscribed almost 4x with more than 140 investors 14% 58% 18% Fund Managers Banks/Private Banks Hedge funds Other 1) Allowing for IFRS 9 and starting from 3Q2020, also for temporary treatment for certain FVOCI instruments transitional arrangements 2) Pro forma for Helix 2 (Portfolio A and B). Calculations on a pro forma basis assume legal completion of the transaction 3) • • More than 65% of orders from new investors Coupon of 6.625% is more than 250 bps lower than the previous Tier 2 issue Total capital ratio expected to increase by c. 100 bps to 19.2% 1,2,3 Tender offer to repurchase the €250 mn 9.25% Tier 2 announced alongside new issue The tender was extremely successful achieving a participation of 83% at a modest premium to market • The transaction represents a major milestone for the Group, and has helped to ... diversify the Group's investor base re-rate the Group's pricing in the international credit markets ... establish a foundation for future issuance (e.g. MREL) ⚫ ... demonstrate Group's proactive capital management: refinancing the existing Tier 2 at a significantly lower coupon and reducing carry cost • The highly successful Tier 2 capital refinancing will allow the Group to focus on evaluating opportunities for an MREL issuance, in terms of capital markets activity On the basis of 31 March 2021 figures. Together with the Existing Notes that remain outstanding after the Tender Offer of €43 mn, the Total Capital ratio pro forma for Helix 2 is expected to increase to 19.5%, including 28 bps relating to the outstanding Existing Notes. The Existing Notes are redeemable at the option of the Bank (subject to applicable regulatory consents) in January 2022. Bank of Cyprus Holdings 22#23Group Financial Results for quarter ended 31 March 2021 Deposits at €16.3 bn broadly flat qoq and significant liquidity surplus of €4.9 bn € bn 16.84 16.69 16.53 16.33 Deposits 16.33 IBU 1 3.14 Corporate 1.82 --- SME Dec 18 Dec 19 Dec 20 Mar 21 0.85 Mar 21 Retail 10.52 Cyprus deposits by passport origin³ 19% 3% 3% 6% 69% Cyprus Other EU Russia Other countries Other European countries, excl. Russia Significant surplus liquidity of €4.9 bn • Minimum Strong deposit market share of 35% as at 31 Mar 2021 Liquidity ratio 31 Mar 2021 Surplus required • Flexibility to operate below 100% LCR limit at least until end 2021 LCR (Group) 100% 284% €4,874 mn NSFR2 100% 140% €5,322 mn ⚫ In Mar 2021 the Bank borrowed €1.7 bn from TLTRO III, increasing funding from central banks to €2.7 bn 1) Servicing exclusively international activity companies registered in Cyprus and abroad and not residents 2) 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 calculation is a SREP requirement. The EBA NSFR will be enforced as a regulatory ratio under CRR II in June 2021 3) Origin is defined as the country of passport by the Ultimate Beneficiary Owner 23 Bank of Cyprus Holdings#24Asset Quality Group Financial Results for quarter ended 31 March 2021 Bank of Cyprus Holdings 24#25Group Financial Results for quarter ended 31 March 2021 €1.4 bn NPE sales agreed since Dec 2019, reducing NPE ratio to 16%¹ • Helix 2 Portfolio B 44% NPE reduction 9 p.p. reduction in NPE ratio Agreement for the sale of €529 mn NPES (with reference date 30 Sep 2020) in Jan 2021 NPES (€ bn) NPE ratio • Gross consideration of 44% of gross book value (based on 30 Sep 2020) and 31% of contractual balance³, payable in cash, of which 50% is deferred unconditionally up to Dec 2025 -44% 3.0 -9 p.p. 25% • Loan credit losses of €27 mn recorded in 4Q2020 16% 1.7 Helix 2 Portfolio A Agreement for the sale of €886 mn NPES (with reference date 30 Jun 2020) in Aug 2020 Gross consideration of 46% of gross book value (based on 30 Jun 2020) and 29% of contractual balance³, payable in cash, of which 65% is deferred unconditionally to 3 broadly equal instalments over 48 months Loss of €68 mn recorded in 2Q2020 Mar 21 Mar 21 pro forma Mar 2021 for Helix 2¹ Mar 2021 pro forma for Helix 21 CET1 ratio at 14.6% 2 pro forma for Helix 21 14.3% 14.4% 14.6% 15.2% (1) Calculations on a pro forma basis assume legal completion of both Helix 2 Portfolio A and Helix 2 Portfolio B (2) Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements (3) As at 30 September 2019 (4) Deferred Purchase Price Bank of Cyprus Holdings Jun 20 Mar 21 Mar 21 Mar 21 pro forma post DPP for Helix 2 payment4 Total CET1 impact +16 bps: -48 bps impact in FY2020 and 2021 until completion +64 bps upon full payment of deferred consideration 25#26Group Financial Results for quarter ended 31 March 2021 NPE ratio at 16% pro forma for Helix 2; Coverage maintained at 59% Organic NPE reduction of c. €60 mn in 1Q2021 Residual NPEs comprises mainly Retail (€ bn) 7.4 3.9 3.1 3.0 1.7 3.6 Dec 18 1.8 Dec 19 1.2 Dec 20 1.1 0.7 Mar 21 Mar 21 Allowance for Expected Loan Credit Losses pro forma for Helix 2 1 Net NPES Gross NPE ratio reduced to 16%; 7% on a net basis 47% 1.7 0.2 Re-performing NPEs 3 Retail 1.1 €1.5 bn SME Corporate 0.1 0.3 Mar 21 pro forma for Helix 21 NPE coverage maintained at 59% post Helix 2 131% 122% 122% 131% 128% 69% 69% 69% 70% 68% 30% 30% 59% 25% 25% Re-performing NPES 19% 3 17% 16% 11% 11% 7% 52% 54% 62% 62% 59% Core NPES 65% Dec 18 Dec 19 Dec 20 Mar 21 Mar 21 pro forma Gross NPE ratio Net NPE ratio for Helix 21 1) 2) 3) Calculations on a pro forma basis assume legal completion of both Helix 2 Portfolio A and Helix 2 Portfolio B Restricted to Gross IFRS balance In pipeline to exit NPEs subject to meet all exit criteria; the analysis is performed on a customer basis (formerly called Non-core NPEs) Bank of Cyprus Holdings Dec 18 Dec 19 Dec 20 Mar 21 Mar 21 pro forma for Helix 21 Tangible collateral 2 Allowance for expected loan credit losses Mar 21 pro forma for Helix 21 26#27Group Financial Results for quarter ended 31 March 2021 €75 mn organic NPE outflows in 1Q2021, leading to €59 mn organic NPE reduction Net organic outflows (€ mn) -142 Inflows (€ mn) -137 -208 -85 -59 24 16 8 22 62 4 5 • 2 xxx wwwww 16 New inflows 9 8 Redefaults Unlikely to pay • €14 mn NPE inflows relate to the loans that were under expired payment deferral Net organic NPE reduction of €59 mn for 1Q2021 impacted by COVID-19 lockdown Additionally there were €15 mn net NPE reduction relating to NPE sales lockbox (4Q2020: €67 mn) 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 Outflows (mn) Curing of restructuring -59 -42 -40 -23. -5 E-17: -20 -2-11- -62 • DFAS & DFES -82 -71 -84 -75 Write-offs Other/ -23 -150 -158 -133 -4 -214 -499 Helix 2 Portfolio B SPA Signed -608 -886 Sales of NPES Helix 2 Portfolio A SPA Signed -1,164 1) Other includes interest, cash collections and changes in balances Bank of Cyprus Holdings 27#28Group Financial Results for quarter ended 31 March 2021 De-risking: Clear path to reduce NPE ratio to single digit by 2022 NPE ratio 63% Gross NPE reduction in 2021, through both organic and inorganic actions, expected to more than offset NPE inflows 15.0 € bn Continue to assess potential to accelerate NPE reduction through additional NPE sales Coverage (4.3) (9.0) 16% <10% c.5% 1.7 Dec 2014 NPE Sales Net Organic Reduction Mar 20211 NPE sales & Net Organic reduction Dec 2022 Net Organic Reduction Medium- term target 34% COR (bps) 365 1) Pro forma for Helix 2: Calculations on a pro forma basis assume legal completion of both Helix 2 Portfolio A and Helix 2 Portfolio B Bank of Cyprus Holdings 59% 66 >50% c.70-80 28#29Group Financial Results for quarter ended 31 March 2021 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 12,261 12,281 10,942 Mar 21 Dec 19 Dec 20 Mar 21 pro forma for Helix 21 Stage 1 1.2% 1.4% 1.4% 1.4% 1,706 1,002 51.96 Stage 2 2.5% 3.3% 2.7% 2.3% 855 Mar 21 pro forma for Helix 21 Stage 3 50.6% 56.1% 56.7% 50.3% Stage 1 7,209 6,870 7,061 64% 7,051 2,096 90 44 1,902 95 76 1,869 102 61 Stage 2 1,733 2,305 2,208 20% 1,962 2,190 Stage 3 3,880 3,086 3,012 16% 1,701 Dec 19 " 1,731 Dec 20 Mar 21 Mar 21 Dec 19 Dec 20 Mar 21 pro forma % of gross loans for Helix 21 Coverage for stage 3 loans remains at c.50% post Helix 2 • Net transfer of €53 mn of loans under expired payment deferrals from Stage 2 to Stage 1: • Transfer of €304 mn of loans under expired payment deferrals from Stage 1 to Stage 2 as a result of management overlays and restructurings Migration of €357 mn of loans under expired payment deferrals from Stage 2 to Stage 1, mainly due to good performance of loans to private individuals after the end of the payment deferrals • Transfer of €14 mn of loans were under expired payment deferrals mainly from Stage 2 to Stage 3 1) Calculations on a pro forma basis assume legal completion of both Helix 2 Portfolio A and Helix 2 Portfolio B Bank of Cyprus Holdings 29#30Cost of risk of 66 bps for 1Q2021 Group Financial Results for quarter ended 31 March 2021 Bank's IFRS 9 Macroeconomic assumptions 1.18% 1.12% 1.00% Base line GDP rate Unemployment rate 0.43% 2021 3.9% 9.0% 0.66% 0.29% COVID-19 2022 3.4% 8.1% 0.75% 0.37% FY2018 FY2019 FY2020 1Q2021 bps 200 76 97 99 66 200 152 88 Charge 30 107 110 (bps) 58 17 37 92 53 33 6- 43 22 40 58 51 14 32 14 16' 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 Reversal -10 -11 (bps) -26 -76 92 29 • Cost of risk of 66 bps for 1Q2021 (€20 mn), of which 29 bps (€9 mn) reflect the impact of IFRS 9 Forward Looking Information (FLI) driven by the update of macroeconomic assumptions in 1Q2021 Cost of risk includes a reversal of 26 bps driven mainly by the migration of €357 mn loans that were under expired moratorium from Stage 2 to Stage 1 (refer to slide 29) Interest on net NPEs not received in cash fully provided; reduced to 22 bps in 1Q2021 following Helix 2 sale (€8 mn in 1Q2021) COVID-19 Interest on net NPEs not received in cash New lending Stage 3 Stage 1 & 2 Loan credit losses charge (cost of risk) (year to date) is calculated as the annualised 'loan credit losses' (as defined) divided by average gross loans. The average gross loans are calculated as the average of the opening balance and the closing balance for the reporting period/year 1) Bank of Cyprus Holdings 30#31Group Financial Results for quarter ended 31 March 2021 REMU: Asset disposal strategy tackles both value and volume of assets REMU stock at €1.4 bn; signs of gradual reduction Group BV (€ mn) Cumulative sales by property type c. €1.1 bn REMU sales (Book Value) since 2017 Group BV (€ mn) 1,641 1,490 1,457 93 1,433 90 Greece & Romania 7% 1,300 (1,097) 158 152 Residential 11% 36% 1,427 314 307 Commercial properties (133) 1,433 (64)- 24 13% 24 -Hotels 606 598 Land & plots 10% 23% 262 262 Golf Land Dec 17 Dec 19 Dec 20 Mar 211 Commercial Hotels Residential Cyreit Overseas 3 1 Jan Additions Sales Impairment Transfer 2017 loss to 31 Mar 1 2021 & FV loss HFS 4 €28 mn sales in 1Q20201 comfortably above Book Value Sales contract prices 2 - Organic (€ mn) • REMU sales impacted by 1Q2021 lockdown 117% 88% 115% 88% Asset disposals across all property classes 113% 86% 105% 81% 8 28 10 Total Sales Commercial Residential 10 Land 1Q2021 Net Proceeds / BV Gross Proceeds / OMV 1) In addition to assets held by REMU, properties classified as "Investment properties" with carrying value of €21 mn as at 31 March 2021 relate to legacy properties 3) 4) 2) Amounts as per Sales purchase Agreements (SPAs) Bank of Cyprus Holdings • • 36% of sales (by value) relate to land Visible pipeline for €49 mn (SPAs signed) as at 31 Mar 2021 • Offers accepted for €29 mn as at 31 Mar 2021 Additions include €21 mn transfer from own properties Stock of property with a carrying value of €64 mn as at 31 March 2021 was transferred to non-current assets and disposal groups held for sale as it was included in the Helix 2 (both portfolios A & B) 31#32Group Financial Results for quarter ended 31 March 2021 Organizational resilience & ESG agenda: ESG Performance Environmental 昌 583k kWh of energy savings in 1Q2021 €0.1 mn investment in energy-saving in 1Q2021 1,929 tones paper recycled in 2020, c.4x times more than 2019 Introduction of environmentally friendly loan products People >3,500 employees Social c.8,500 cancer patients received treatment and other services at the Bank of Cyprus Oncology Centre for 1Q2021 c. €70 m n cumulative investment for the Bank of Cyprus Oncology Centre >5,000 enterprenuers educated via IDEA innovation centre, a non-profit organization, established in 2015, acting as incubator accelerator for start-ups Responsible services c. €0.5 bn new lending for 1Q2021 Governance 30% of the board of directors are female as at 31 Mar 2021 15 internal audits finalised in 1Q2021 633 customer relationships suspended for compliance reasons in 1Q2021 #SupportCy Network Initiative €620k total contribution to the Society by all members (monetary, products and services) since March 2020 >8 ths hours of training conducted in 1Q2021 Certificate by the Ministry of Labour, Welfare and Social Insurance for applying good practices for gender equality in the working environment יון 85% of total transactions in 1Q2021 are through digital channels 75% of customers are digitally engaged as at 31 Mar 2021 #SupportCY is a network of 117 companies and NGOs, initiated by Bank of Cyprus, during March 2020, with the aim to support the public services performing frontline duties during the Pandemic and the Society, in general 1) 2) Please refer to slide 70 in the definitions Bank of Cyprus Holdings ESG Ratings MSCI ESG Ratings² MSCI A A Scale: AAA to CCC ESG RATINGS Rating action date: Jun 2020 CCC B BB BBB A AA AAA 32#33Medium Term Outlook Bank of Cyprus Holdings Group Financial Results for quarter ended 31 March 2021 33#34Our journey Group Financial Results for quarter ended 31 March 2021 Where we were... Shrinkage to core strength 2014-2019 What we have achieved in 2020... Normalisation of balance sheet 2020 Where we want to be... Business turnaround for sustainable growth 2021-2022 Medium-term Significant balance sheet de- risking ✓ Normalised funding stack ✓ Exited non core operations Supporting the recovery of Cypriot economy ✓ Managing pandemic asset quality Acceleration of NPE reduction ✓ Address costs 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 Refinancing of Tier 2 (successfully completed) Priorities ■ Deliver sustainable profitability and shareholder returns ■ Enhance revenues by capitalising on market leading positions across business divisions ▪ Enhance operating efficiency, through sustained focus on cost base Optimise capital management 1) Subject to market conditions Bank of Cyprus Holdings ■ Initiation of MREL issuance¹ 34#35Medium-term strategic targets Profitability вде Return on Tangible Equity (ROTE) 1 Total Operating Expenses² NPE Ratio Asset Quality Capital L())))) Cost of risk Group Financial Results for quarter ended 31 March 2021 2022 Medium Term c.7% <€350 m n <10% c.5% Supported by CET1 ratio of at least 13% c.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 35#36Group Financial Results for quarter ended 31 March 2021 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 29 January 2021 (negative outlook) Short-term Issuer Default Rating: Affirmed at "B" on 29 January 2021 Viability Rating: Affirmed at "b-" on 29 January 2021 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 36#37APPENDIX Macroeconomic overview Bank of Cyprus Holdings Group Financial Results for quarter ended 31 March 2021 37#38S&P credit ratings Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Nov 14 Feb 15 May 15 Aug 15 Nov 15 120 100 80 60 40 Confidence returning despite 1Q2021 lockdown Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Cyprus maintains investment grade Apr-17 Jul-17 Cypriot economy gradually recovering Unemployment rate increased to 8.4% in 4Q2020 Apr-21 Oct 16 Jan 17 Apr 17 Jul 17 Oct 17 Oct-17 Jan-18 Apr-18 Jan 18 Jul-18 Mar 18 Oct-18 Jun 18 Sep 18 Jan-19 Dec 18 Apr-19 Mar 19 Jul-19 Jun 19 Sep 19 Oct-19 Nov 19 Jan-20 Feb 20 May 20 Apr-20 Aug 20 Nov 20 Jul-20 Oct-20 Feb 21 May 21 Jan-21 Feb 16 May 16 Jul 16 Cyprus Portugal Italy Spain Greece Ireland SOURCE: Statistical Service of Republic of Cyprus; Bloomberg, Economics Research Centre of University of Cyprus, Eurostat Normalised against Germany Government bond with maturity 15/8/2025 except Greece BBB- BB- AA- A 8.3% 8.4% 8.4% -8.7% 8.2% 7.8%-8.5% 110.2 96.5 7.3% 7.4% 8.0% 8.1% 78.4 7.2% 72.9 6.7% 7.5% 6.9% 7.0%-7.2% BBB 1) 2) Due to the Debt swap of the Hellenic Republic. from November 2017 onwards data for the new Hellenic Republic Bond with maturity 4) Forecast by IMF and European Commission Bank of Cyprus Holdings -0.1 Spreads (%) 0 0.1 10 0.2 0.3 0.4 0.5 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021E³ 2021E 4 2022E4 Cyprus Euro Area Tightening of spreads as market confidence improves Jan 2019 Feb 2019 Apr 2019 May 2019 Jun 2019- Aug 2019 Sep 2019 Nov 2019- Dec 2019 Feb 2020 Mar 2020 Cyprus - maturity 4/11/20251 Italy - maturity 01/12/20251 Portugal - maturity 15/10/20251 Greece maturity 30/01/20282 Spain - maturity 31/10/20251 30/01/2028 was used and normalised against the closest maturity of German Government bond (DBR) 15/08/2027 3) Estimate from Eurostat May 2020 Jun 2020 Aug 2020 Sep 2020 Nov 2020 Dec 2020 38 Feb 2021 Mar 2021 May 2021 Group Financial Results for quarter ended 31 March 2021#39Economic activity improving despite 1Q2021 lockdown Retail sales rebounded, after hitting low in Jan 2021 Retail trade volume % change -3m average Card spending picking up #ths Group Financial Results for quarter ended 31 March 2021 730 750 2000 10 14.9 -8.4 -10 -20 -30 -40 -50 -60 -70 Jan 20 Feb 20 Mar 20 Retail trade ex motor Apr 20 May 20 Jun 20 400 200 0 ⚫2019 Source: Cyprus Statistical Service Bank of Cyprus Holdings Volume of building permits impacted by restrictive measures in 1Q2021 #ths Retail trade ex autom fuel Jul-20 Aug 20 Sep-20 Oct-20 Nov-20 Non-food ex autom fuel Dec-20 Jan-21 Feb-21 683 667 630 650 655 600 607 600 550 463 450 400 Jan Feb Mar Apr 2021 2020 Motor vehicles registrations stabilised Motor vehicles registrations % change -3m average 10 10 0 -10 -20 -30 Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec -50 شرا -8° -10 -12 -40 -2020 2021 -50 Feb 19 Apr Jun Aug Oct 19 19 19 Dec Feb 19 19 20 20 Apr Jun 20 Aug Oct Dec Feb 20 20 20 21 Vehicles registrations 39#40Group Financial Results for quarter ended 31 March 2021 Timely and strong response by the Government of Cyprus Comprehensive and far reaching measures to support performing businesses and the wider economy 2021 • Additional package of measures with fiscal impact of c.€750 mn¹ for the support of the businesses and the self employed, according 2020 • The package of measures with fiscal impact amounted to €766 mn or 3.6% of GDP²: . Subsidy plan for businesses and self employed impacted by lockdowns: • Moratorium of loan instalment for 9 months until Dec 2020 • • • • Coverage of rents and other operational expenses Second loan moratorium for business and private individuals impacted by the second lockdown up to 30 Jun 2021 ⚫ Eligible borrowers entitled to total moratorium of up to 9 months, inclusive of any time spent on moratorium during 2020 Extension of subsidy of interest rate of new business and housing loans to 31 Dec 2021 • Subsidy of interest rate for 4 years Employment compensation schemes for businesses impacted by the second lockdown to protect jobs and avoid layoffs Strengthening of the public health sector Loan government guarantee scheme of c.€1.0 bn to facilitate liquidity (guarantee of 70%) . • c.€550 mn to small businesses, c. €350 mn to medium-size businesses and; • • • Liquidity support to businesses and households Employment compensation schemes for businesses impacted by COVID-19, to protect jobs and avoid layoffs Subsidy of interest rate of new Business and Housing Loans • Financing of SMEs through CYPEF1 (€800 mn) €3.0 bn of government funding raised in Apr 2020; vote of confidence to the Cypriot economy European Authorities measures-Implications for Cyprus • • EU Recovery Fund (€1.2 bn) Pan-European Guarantee Fund (PEGF) (€300-€400 mn) EU SURE Programme (€479 mn) . c. €150 mn to large companies • €1.0 bn of government funding raised in Feb 2021 Bank of Cyprus Holdings 1) 2) Based on the Stability Programme Update 2021-24, published in April 2021 Estimation of Bank of Cyprus' Economic Research Department 40#41APPENDIX Additional asset quality slides Bank of Cyprus Holdings Group Financial Results for quarter ended 31 March 2021 41#42Group Financial Results for quarter ended 31 March 2021 Suspension of foreclosures for primary residences extended until 31 July 2021 Foreclosures commenced 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 Cumulative 2016-20181 FY2019 FY2020 1Q2021 1,437 1,829 1,5532 274 5932 Auctions held 470 807 6322 83 1642 2,211 properties were resolved since 2016 Sold at auction 353 868 Repossessed 2 3 • 990 Consensual deals 2,211 1) 723 2) 3) 4) Excluding Helix 1 Properties that have been auctioned unsuccessfully at least once Includes DFAs, restructurings and settlements With revenue of up to €2 mn per annum and less than 10 employees Bank of Cyprus Holdings 227 733 274 468 83 Following outbreak of the pandemic, foreclosures for primary residences <€350k and "very small business premises”4 suspended until the end of Mar 2021, via a legislation enacted on 29 December 2020 by the Cyprus Parliament In early May, further legislation was enacted extending the suspension of foreclosures until 31 July 2021 for primary residences with <€500k, very small business premises4 and agricultural fields with value up to €250k 42#43Group Financial Results for quarter ended 31 March 2021 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 €9.30 bn Breakdown by COVID-19 impact assessment on business sectors € bn €9.30 bn Private Individuals 4.12 • High Impact: (12%) High 12% • Tourism (Hotels & Catering) Hotels & 1.15 Catering Real Estate 1.02 Trade 0.89 Professional 0.67 & Other services Other sectors 0.59 Construction 0.53 Manufacturing 0.33 1) Gross loans as at 31 March 2021 of Corporate (incl. IB and W&M and Global Corporate), SME, Retail, and H/O Bank of Cyprus Holdings Medium 22% Moderate 2% Low 20% 44% Private individuals • Medium Impact: (22%) Trade • Manufacturing Construction Transportation and storage • Moderate Impact: (2%) Administrative • Other • Low: (20%) Real Estate Education Health • Private individuals (44%) . Refer to slide 8 43#44Decomposition of payment deferrals IFRS 9 staging for expired loan payment deferrals Private individuals: €2.02 bn¹ 1.31 1.7% 1.51 Stage 1 Businesses: €3.69 bn¹ 1.7% 2.65 2.40 Stage 1 Dec 2020 Mar 2021 3.6% 27.3% 0.63 0.37 0.14 0.14 • Stage 2 Stage 3 2.1% 1.10 0.95 23.5% 0.19 0.19 Stage 2 Coverage Stage 3 1) 2) As at 31 March 2021; includes current accounts and overdrafts of c. €0.3 bn Re-performing: pipeline to exit NPEs subject to meet all exit criteria; the analysis is performed on a customer basis (formerly called Non-core NPEs) Bank of Cyprus Holdings Group Financial Results for quarter ended 31 March 2021 • Private Individuals Reclassifications of €26 mn from Stage 1 to Stage 2 in 1Q2021, mainly due to management overlays Migration of c.€266 mn from Stage 2 to Stage 1 mainly due to good performance of housing loans after the expiry of payment deferrals Businesses . Reclassifications of €278 mn from Stage 1 to Stage 2 in 1Q2021, mainly due to management overlays and restructurings Migration of €91 mn from Stage 2 to Stage 1 mainly due to good performance after the end of payment deferrals Adequate coverage of Stage 3 expired payment deferrals; higher than the coverage of re-performing NPES¹ (slide 26) 44#45Continuous progress across all segments Focus shifts to Retail and SME after intense Corporate attention € mn 1,701 Corporate Dec 201 Inflows 541 Group Financial Results for quarter ended 31 March 2021 Exits (22) NPE ratio Corporate 345 €389 mn Mar 21 520 Helix 2 (131) NPE coverage Pro-forma for Terminated Corporate 389 44 Helix 21 NPE total coverage SME 80 €160 mn Terminated SMEs 80 SME Retail 274 Dec 20 2 Terminated Retail 878 Mar 2021 pro forma for Helix 21 Inflows Exits Mar 21 €1,152 mn Helix 2 Pro forma for Helix 2 (445) 160 Retail Dec 202 Inflows Exits Mar 21 Helix 2 619 7 (21) 605 NPE ratio NPE coverage NPE total coverage Mar 2021 Pro forma¹ 8% 61% 118% Mar 2021 Pro forma¹ 12% 59% 128% Mar 2021 Pro forma¹ 1,926 9 (48) NPE ratio 23% 1,887 NPE coverage (735) ➤ Retail Housing 52% 1,152 Retail Other 67% NPE total coverage 132% 1) 2) Pro forma for Helix 2 Calculations on a pro forma basis assume legal completion of both Helix 2 Portfolio A and Helix 2 Portfolio B Following a reorganisation of the RRD portfolio and mainly of the terminated exposures, certain gross loans were reclassified between the business lines, resulting an increase of €92 mn in the Retail line and a reduction of €32 mn and €60 mn of the SME and Corporate line respectively. In addition, certain NPEs were reclassified between the business lines, resulting an increase of €84 mn in the Retail line and a reduction of €24 mn and €60 mn of the SME and Corporate line respectively. Bank of Cyprus Holdings 45#46Gross loans and NPEs by Customer Type Group Financial Results for quarter ended 31 March 2021 Gross loans by customer type (€ mn) 12,822 12,709 12,309 12,261 12,281 1,875 1,870 1,696 1,667 1,662 10,942 1,329 4,077 4,068 4,044 4,073 4,068 3,653 1,922 1,914 1,798 1,765 1,746 1,288 2,209 2,186 2,117 2,126 2,160 2,160 2,739 2,671 2,654 2,630 2,645 2,512 Dec 19 Mar 20 Sep 20 Dec 201 Mar 21 Mar 21 NPEs by customer type (€ mn) pro forma for Helix 2 2 3,880 1,043 3,738 3,238 1,026 3,086 3,012 844 805 802 1,388 1,326 1,701 1,170 1,121 1,085 471 727 724 639 619 605 681 164 159 112 105 106 160 558 503 106 473 436 414 283 Dec 19 Mar 20 Sep 20 Dec 201 Mar 21 Mar 21 pro forma for Helix 2² Retail other Retail Housing SMEs Global Corporate Corporate 1) 2) Bank of Cyprus Holdings Following a reorganisation of the RRD portfolio and mainly of the terminated exposures, certain gross loans were reclassified between the business lines, resulting an increase of €92 mn in the Retail line and a reduction of €32 mn and €60 mn of the SME and Corporate line respectively. In addition, certain NPEs were reclassified between the business lines, resulting an increase of €84 mn in the Retail line and a reduction of €24 mn and €60 mn of the SME and Corporate line respectively. Calculations on a pro forma basis assume legal completion of both Helix 2 Portfolio A and Helix 2 Portfolio B 46#47NPE Coverage and Total coverage by segment Coverage and collateral maintained post Helix 23 Group Financial Results for quarter ended 31 March 2021 Tangible Collateral¹ Allowance for expected loan credit losses Corporate €283 mn Global Corporate: €106 mn SME €160 mn Retail-Housing €681 mn Retail-Other €471 mn Total €1,701 mn 167% 167% 167% 140% 140% 137% 131% 131% 131% 131% 128% 127% 127% 128% 123% 86% 87% :87%: 109% 109% 100% 52% 52% 46% 68% 68% 85% 84% 58% 57% 69% :85% 56% 69% 69% 69% 81% 80% 80% 69% 70% 67% 62% 62% 63% 63% 59% 59% 55% 56% 57% 57% 52% 54% 2 Dec 20 Mar 21 Mar 21 pro forma 3 Dec 20² Mar 21 Mar 21 pro Dec 202 Mar 21 forma 3 Mar 21 pro forma 3 Dec 202 Mar 21 Mar 21 pro 3 forma Dec 202 Mar 21 Mar 21 pro forma 3 Dec 20² Mar 21 Mar 21 pro forma 3 1) Restricted to Gross IFRS balance 2) 3) Following a reorganisation of the RRD portfolio and mainly of the terminated exposures, certain gross loans were reclassified between the business lines, resulting an increase of €92 mn in the Retail line and a reduction of €32 mn and €60 mn of the SME and Corporate line respectively. In addition, certain NPEs were reclassified between the business lines, resulting an increase of €84 mn in the Retail line and a reduction of €24 mn and €60 mn of the SME and Corporate line respectively. Calculations on a pro forma basis assume legal completion of both Helix 2 Portfolio A and Helix 2 Portfolio B Bank of Cyprus Holdings 47#48Asset quality- NPE analysis (€ mn) Mar-21 Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Dec-18 A. Gross Loans after Residual Fair value 12,055 12,031 12,066 12,243 12,457 12,551 15,438 adjustment on initial recognition Residual Fair value adjustment on initial recognition 226 230 243 248 252 271 462 B. Gross Loans 12,281 12,261 12,309 12,491 12,709 12,822 15,900 B1. Loans with no arrears 9,2302 9,149 9,028 8,954 8,706 8,820 8,260 B2. Loans with arrears but not NPES 39 26 43 69 265 122 221 1-30 DPD 27 21 34 54 209 88 166 31-90 DPD 12 5 9 15 56 34 55 B3. NPES With no arrears Up to 30 DPD 31-90 DPD 91-180 DPD 181-365 DPD 3,012 3,086 3,238 3,468 3,738 3,880 7,419 536 548 533 603 601 722 1,482 15 16 19 28 52 54 136 35 26 29 39 72 76 231 18 18 35 48 79 121 178 31 81 101 178 255 263 393 2,377 2,397 2,521 2,572 2,679 2,644 4,999 25% 25% 26% 28% 29% 30% 47% Group Financial Results for quarter ended 31 March 2021 Over 1 year DPD NPE ratio (NPEs / Gross Loans) Allowance for expected loan credit losses (including residual fair value adjustment on initial 1,869 1,902 1,933 2,043 2,109 2,096 3,852 recognition¹) Gross loans coverage 15% NPES coverage 62% 16% 62% 16% 16% 17% 16% 24% 60% 59% 56% 54% 52% 1) 2) 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 Includes c.€171 mn loans with "non-material" arrears which are calculated based on the new EBA regulation on Definition of Default implemented as of 1 Jan 2021, affecting the calculation of Days-Past-Due Bank of Cyprus Holdings 48#49Bank of Cyprus Holdings 49% 31% 29% 25% 25% 1.85 1.36 1.25 1.18 1.17 Trade Manufacturing NPE ratio by economic activity 27% 52% 25% 23% 22% 28% 5% 5% 34% % of total 10% 0.64 0.47 0.44 0.44 0.43 1.27 1.08 1.14 1.19 1.21 Hotels & Restaurant 68% Trade Manufacturing Hotels and Catering Construction Real estate Private individuals 31% 30% 29% 53% 23% 21% 20% 20% 4% 10% 7% 10% Analysis of gross loans and NPE ratio by Economic activity Gross loans by economic activity (€ bn) 1.95 0.85 Construction 0.81 0.79 0.81 1.61 1.29 1.29 1.27 1.27 Real Estate Private Individuals Professional and other services 43% 37% 32% 30% 30% 31% 46% 28% 30% 29% Professional and other services Other sectors 17% 34% 14% 14% 14% 49 47% 6.47 6.02 5.85 5.83 5.81 1.20 1.00 0.83 0.89 0.89 ■Dec 18 ■Dec 19 ■Sep 20 ■Dec 20 ■Mar 21 0.91 0.75 0.70 0.67 0.69 Other sectors 7% 5% Group Financial Results for quarter ended 31 March 2021#50Group Financial Results for quarter ended 31 March 2021 Balance sheet de-risking results in a smaller but safer loan book Net Loans: Non-legacy2 vs Legacy Interest Income on Loans: Non-legacy2 vs Legacy € mn € bn 15.62 14.55 36% 5.64 12.04 4.40 10.73 96 10.36 10.41 93 91 9.94 3.39 1.79 1.36 1.29 0.82 8% 24 24 18 17 17 89 83 18 16 76 9 64% 9.98 10.15 8.65 8.94 9.00 9.12 9.12 92% 72 22 75 75 74 71 67 67 Dec 16 Legacy Dec 17 Dec 18 Dec 19 Dec 20 Mar 21 Mar 21 Non-legacy pro forma 1Q2020 Legacy 2Q2020 3Q2020 restated 4Q2020 1Q2021 3 Non-legacy for Helix 21 1Q2021 pro forma 1 for Helix 2¹ Lower but higher quality income resulting from balance sheet de-risking Interest income of non-legacy book decreased by €4 mn qoq as non-Legacy book yields remain under pressure mainly due to the sustained low interest rate environment and competition pressure • Interest income of legacy book decreased by €2 mn qoq due to higher cash collections not previously recognised in 4Q2020 • Interest on Net NPEs not received in cash, fully provided 1) Calculations on a pro forma basis assume legal completion of both Helix 2 Portfolio A and Helix 2 Portfolio B 2) Gross loans of Corporate (incl. IB and W&M and Global Corporate), SME, Retail, and H/O 3) Interest income of non-legacy book for 3Q2020 increased from €73 mn to €74 mn since previously disclosed on 27 November 2020, following a transfer of €1 mn from liquids to non-legacy interest income Bank of Cyprus Holdings 50#51Capital & balance Sheet Profitability Risk adjusted yield will rise as Legacy book reduces Non- Legacy Legacy Group 1Q2021 1Q2021 1Q2021 Interest Income on loans (€ mn) (pre FTP) 67 16 83 Loan credit/reversal (losses) (€ mn) 8 (28) (20) Interest Income net of loan 75 (12) 63 credit losses (€ mn) Cost of Risk (0.35%) 3.77% 0.66% • Effective Yield 3.01% 4.97% 3.26% Risk adjusted Yield¹ 3.36% (3.62%) 2.47% Average Net Loans (€ mn) RWA Intensity² 9,062 1,323 10,386 44% 98% 50% Global corporate, RRD Corporate IB, W&M 1) 2) Interest Income on loans net of allowance for expected loan credit losses/ Average Net Loans Risk Weighted Assets over Total Assets. Bank of Cyprus Holdings REMU SME and Retail Banking Overseas non core Group Financial Results for quarter ended 31 March 2021 • 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 (€8 mn in 1Q2021) As Legacy book reduces: • Group risk adjusted yield expected to rise Group Risk intensity expected to fall supporting CET1 ratio build 51#521) Bank of Cyprus Holdings 31% 17% 16% 13% 14% Rescheduled Loans Rescheduled loans by customer type (€ bn) 4.89 Rescheduled loans % gross loans by customer type 15% 7% 7% 34% 28% 1.17 0.47 2.73 1.01 2.35 2.09 2.18 0.97 0.88 0.81 0.79 0.44 2.24 0.38 0.53 0.36 0.36 0.50 0.34 0.41 0.42 0.16. 0.15 0.23 0.45 0.43 0.36 0.38 Dec 18 Retail housing Dec 19 Jun 20 Dec 20 1 Mar 21 Retail other SMEs Global Corporate Corporate 11% 27% 24% 20% 29% 24% 22% 21% 19% 26% Corporate Global Corporate SMEs Retail Housing Retail Consumer Dec 18 Dec 19 Jun 20 Dec 201 Mar 21 Stage 1 Stage 2 Stage 3 POCI FVPL Total Rescheduled loans-Asset Quality 31 March 2021 € '000 174,417 306,303 Following a reorganisation of the RRD portfolio and mainly of the terminated exposures, certain gross loans were reclassified between the business lines, resulting an increase of €58 mn in the Retail line and a reduction of €39 mn and €19 mn of the SME and Corporate line respectively. 1,304,470 169,630 227,707 2,182,527 52 Group Financial Results for quarter ended 31 March 2021#53REMU-the engine for dealing with foreclosed assets €1.37 bn sales of 2,240 properties across all property classes since set-up Sales contract prices¹ (€ mn) Breakdown of cumulative sales¹ by on-boarding year ( € mn) # 99 # 331 # 575 # 5792 # 492 # 164 Legacy 3 Sales €1.37 bn 179 330 238 505 307 Group Financial Results for quarter ended 31 March 2021 2016 2017 2018 2019 2020 582 340 118 €1,371 19 % Sales of vintage stock 58% 50% 51% 33% 160 (BV)4 345 91 28 2016 2017 2018 2019 FY2020 1Q2021 Cyreit Sales # properties Bank of Cyprus Holdings 7234 2) 3) 4) Amounts as per Sales purchase Agreements (SPAs) 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 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 31 December 2020 53#54REMU-the engine for dealing with foreclosed assets On-board assets in REMU at conservative c.25%-30% discount to OMV Evolution of properties managed by REMU BV € mn BV € mn Legacy 1,457 2016 2017 2018 2019 2020 2021 107 194 518 267 201 163 85 5 1,433 1,350 100% 74% avg on-boarded value as a % of OMV1 Group Financial Results for quarter ended 31 March 2021 Investment Properties (24) 1,433 (6) (5) 105 1,328 70% 71% 71% 72% 01 Jan 2021 Additions Sales Impairment loss & fair value losses Transfer to non- current assets and disposal 31 Mar 20213 groups held for sale 2 Real Estate Market property prices up 0.8% qoq in 4Q20204 Sales contracts (excl. DFAs) 5 for 1Q2021 broadly flat yoy 120.0 4.0 Central Bank Residential Property Price index 10.366 110.0 3.5 9.242 8.734 100.0 3.0 7.968 90.0 7.063 79.4 79.1 78.9 2.5 5,885 78.6 80.0 4,875 2.0 4.952 70.0 2.2 6,328 4,983 1.2 1.5 5,250 60.0 1.0 3,603 50.0 1.991 1.985 0.8 4,367 4,481 0.5 40.0 1,349 1,813 2,406 2,985 1,117 1,399 30.0 0.0 Q12019 Q22019 Q32019 Q42019 Q12020 Q22020 Q32020 Q42020 2015 2016 2017 2018 2019 2020 Jan-Mar Jan-Mar 2020 2021 Residential Propert Price index (2010Q1=100) % change y-o-y (RHS) Sales to Cypriots Sales to non-Cypriots 1) Open market value at on-boarding date relate to legacy properties 2) Stock of property with a carrying value of €5 mn as at 31 March 2021 was transferred to non-current assets and disposal groups held for sale as it was included in the Helix 2 (both portfolios A & B) 4) 5) Based on Residential price index published by Central Bank, dated 29 April 2021 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 31 March 2021 Bank of Cyprus Holdings 54#55APPENDIX Additional financial information Bank of Cyprus Holdings Group Financial Results for quarter ended 31 March 2021 55#56Consolidated Balance Sheet Group Financial Results for quarter ended 31 March 2021 Assets (€ mn) 31.03.2021 Cash and balances with Central Banks 6,926 31.12.2020 change Liability and Equity (€ mn) 31.03.2021 31.12.2020 change 5,653 23% Deposits by banks 412 392 5% Loans and advances to banks 421 403 4% Funding from Central Bank 2,692 995 Debt securities, treasury bills and equity investments 2,113 1,913 10% Customer deposits 16,332 16,533 -1% Net loans and advances to customers 9,960 9,886 1% Subordinated loan stock 254 272 -7% Stock of property 1,328 1,350 -2% Other liabilities Investment properties 126 128 -2% Total liabilities Other assets 1,544 1,550 -0% Shareholders' equity Non current assets and disposal groups held for sale 626 631 -1% Other equity instruments 1,266 1,247 1% 20,956 19,439 8% 1,844 1,831 1% 220 220 I Total equity excluding non- 2,064 2,051 1% Total assets 23,044 21,514 7% controlling interests Non controlling interests 24 24 1% Total equity 2,088 2,075 1% Total liabilities and equity 23,044 21,514 7% Bank of Cyprus Holdings 56#57Cypriot business Market shares¹ 1) ⚫Loans -Deposits 45.4% 41.1% 41.9% 42.4% 37.5% 37.1% 36.0% 32.8% 35.1% 31.1% Group Financial Results for quarter ended 31 March 2021 Strong market shares in resident and non-resident deposits Residents Non-residents 35.8% 37.3% 38.3% 35.8% 35.4% 33.7% 34.5% 35.0% 35.3% 34.9% 34.9% 34.7% 31.5% 29.5% Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Mar 21 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Mar 21 Average contractual interest rates (bps) (Cy) Yield on Loans Cost of Deposits Customer spread 392 384 380 376 375 Customer deposit rates decline further (bps) (Cy) Time & Notice accounts Savings and Current accounts Cost of deposits 11 8 6 381 376 374 371 371 24 19 15 11 8 6 LO 5 4 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 5 4 12 9 0 1 0 0 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 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 57#58Group Financial Results for quarter ended 31 March 2021 Income Statement bridge¹ for 1Q2021 € mn Net interest income Underlying basis NPE sales Other Statutory Basis Net fee and commission income 6%99 76 76 39 39 Net foreign exchange gains and net losses on financial instrument transactions and disposal/dissolution of subsidiaries 2 1 3 13 Insurance income net of claims and commissions Net gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties Other income Total income Total expenses Operating profit Loan credit losses Impairments of other financial and non-financial instruments N 2 4 136 1 137 (91) (4) (4) 45 (4) (3) (20) (2) (1) (5) Provisions for litigation, claims, regulatory and other matters (1) 1 Tax Profit before tax and non-recurring items Profit attributable to non-controlling interests 19 (6) (3) (2) ོས +ཞྲི$སྐྱེ@ ་ ༅སེ 4 (99) 38 (23) (5) Profit after tax and before non-recurring items (attributable to the owners of the Company) Advisory and other restructuring costs - organic 17 (6) (3) 8 (3) 3 I Profit after tax - Organic (attributable to the owners of the Company) 14 (6) 8 Provisions/net loss relating to NPE sales, including restructuring expenses Profit after tax - attributable to the owners of the Company 1) Please refer to section F1 "Reconciliation of income statement between statutory and underlying basis of the Group Financial Results for the quarter 31 March 2021 Bank of Cyprus Holdings (6) 8 CO 6 I 8 58#59Income Statement € mn Net Interest Income Net fee and commission income Net foreign exchange gains and net losses on financial instrument transactions and disposal/dissolution of subsidiaries and associates Insurance income net of claims and commissions Net gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties Other income Total income Staff costs Other operating expenses Special levy and contributions to Single Resolution Fund (SRF) and Deposit Guarantee Fund (DGF) Total expenses Operating profit Loan credit losses Impairments of other financial and non-financial assets Provisions for litigation, claims, regulatory and other matters Total loan credit losses, impairments and provisions Profit before tax and non-recurring items Tax Loss/ (profit) attributable to non-controlling interests Profit after tax and before non-recurring items (attributable to the owners of the Company) Advisory and other restructuring costs - organic Profit after tax - organic (attributable to the owners of the Company) Provisions/net loss relating to NPE sales, including restructuring expenses Restructuring costs – Voluntary Staff Exit Plan (VEP) DTC levy Profit/(loss) after tax (attributable to the owners of the Company Bank of Cyprus Holdings Group Financial Results for quarter ended 31 March 2021 1Q2021 4Q2020 909% 76 80 -5% 39 38 1% 2 1 324 13 14 -9% 5 -46% 4 -5% 136 142 -3% (50) (50) 1% (32) (41) -21% (9) (6) 48% (91) (97) -5% 45 45 1% (20) (31) -35% (5) (6) -15% (1) (3) -71% (26) (40) -34% 19 сл 5 (2) (1) 18% (1) 17 3 (3) 14 (1) 2 (6) (42) -86% 0 (6) 0 (3) 8 (49) 59#60Analysis of Interest Income and Interest Expense Analysis of Interest Income (€ mn) 1Q2020 2Q2020 3Q2020 restated 1 4Q2020 1Q2021 Loans and advances to customers 96 93 91 89 83 Loans and advances to banks and central banks 0 0 3 2 3 Investment at amortised costs 3 2 2 2 2 Investments FVOCI 5 4 4 4 3 Investments classified as loans and receivables 104 99 100 97 91 Trading Investment Derivative financial instruments 9 9 8 8 8 Other investments at fair value through profit or loss Total Interest Income 113 108 108 105 99 Analysis of Interest Expense (€ mn) Customer deposits (3) (3) (3) Funding from central banks and deposits by banks (0) (0) 0 (2) 0 Subordinated loan stock (6) (6) (6) (6) (6) Repurchase agreements (1) (1) (1) 0 0 Negative interest on loans and advances to banks and (4) (4) (5) (6) (5) central banks (16) (14) (15) (15) (13) Derivative financial instruments Total Interest Expense (12) (11) (11) (10) (10) (28) (25) (26) (25) (23) Group Financial Results for quarter ended 31 March 2021 Interest income of non-legacy book for 3Q2020 increased from €73 mn to €74 mn since previously disclosed on 27 November 2020, following a transfer of €1 mn from liquids to non-legacy interest income 1) Bank of Cyprus Holdings 60 60#61Income Statement by business line for 1Q2021 Group Financial Results for quarter ended 31 March 2021 € mn Net interest income/(expense) Consumer SME Corporate Global International Wealth & Banking Banking Banking corporate Banking RRD REMU Insurance Treasury Other Overseas Total Markets Net fee & commission income/(expense) Other income Total income 31 22-3 20 8 14 14 ± 2 15 (1) 3 1 76 10 3 2 13 1 3 (2) 1 6 39 0 0 0 1 1 0 4 13 0 1 21 10 17 16 16 2 18 3 11 4 8 136 Total expenses (42) (6) (4) Operating (loss)/ profit (11) 4 13 33 (3) (8) (2) (11) (4) (4) (3) (3) (1) (91) 13 8 0 7 (1) 7 1 5 (1) 45 Loan credit losses of customer loans net of gains/(losses) on derecognition of loans and changes in expected cash flows 6 2 (1) 0 1 0 (28) (20) Impairment of other financial and non (4) financial instruments Provision for litigation, claims, regulatory and other matters (Loss)/profit before tax Tax Profit attributable to non controlling interest (Loss)/ profit after tax and before non- recurring items (attributable to the owners of the Company) Bank of Cyprus Holdings (1) (5) (1) (1) (5) 1 6 12 13 9 0 (21) (5) 7 1 (2) (1) (2) (2) (1) I 2 1 (1) I 22 19 (2) I (4) 5 10 11 8 0 (19) (4) 6 1 5 (2) 17 61#62Group Financial Results for quarter ended 31 March 2021 31.12.18 31.12.19 31.12.20 31.03.21 Helix 2 Cyprus 15,070 12,678 11,477 11,397 Risk Weighted Assets- Regulatory Capital Risk Weighted Assets by Geography (€ mn) Reconciliation of Group Equity to CET1 € mn Group Equity per financial statements Less: Intangibles² 31.03.21 pro forma³ 31.03.21 2,088 -260 11,137 (27) Russia 24 8 Less: Deconsolidation of insurance and other entities (195) United Kingdom 84 48 23 23 23 23 Add: Regulatory adjustments (IFRS 9 and other items) 53 Romania 38 29 26 24 24 Less: Revaluation reserves and equity instruments transferred to AT1 (251) CET 11 1,668 Greece 144 121 105 96 96 Risk Weighted Assets 11,546 Other 13 6 5 6 6 CET1 ratio 1 14.4% RWAs 15,373 12,890 11,636 11,546 -260 11,286 CET1 ratio pro forma for Helix 23 14.6% RWA intensity 70% 61% 54% 50% 49% Equity and Regulatory Capital (€ mn) Risk Weighted Assets by type of risk (€ mn) 31.12.19 31.12.20 31.03.214 31.12.18 31.12.19 31.12.20 31.03.21 Helix 2 31.03.21 pro form a ³ Total equity excl. non-controlling interests 2.260 2,051 2,064 Credit risk 13,833 11,547 10,505 10,415 -260 10,155 CET1 capital 1,909 1,723 1,668 Market risk 2 Tier I capital 2,129 1,943 1,888 Operational risk 1,538 1,343 Total 15,373 12,890 1,131 11,636 1,131 1,131 Tier II capital 190 192 196 11,546 -260 11,286 Total regulatory capital (Tier I + Tier II) 2,319 2,135 2,084 1) Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments 2) As per amendments introduced with Regulation 2020/873 3) Calculations on a pro forma basis assume legal completion of both Helix 2 Portfolio A and Helix 2 Portfolio B 4) Capital ratios include unaudited/un-reviewed profits for 1Q2021 Bank of Cyprus Holdings 62#63RWA intensity' reduced to 49%2 RWAS reduced by €90 mn ytd Helix 2 RWAS Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Mar 21 Helix 2 DPP3 Pro forma² €bn 19,666 18,865 17,260 15,373 12,890 11,636 11,546 (641) 381 11,286 RWA intensity¹ decreased to 49%2 85% 85% 73% 70% 61% 54% 50% Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Mar 21 (1) Risk Weighted Assets over Total Assets (2) Pro forma for Helix 2 (Portfolio A and B). Calculations on a pro forma which assume legal completion of the transaction Bank of Cyprus Holdings 49% Mar 21 pro forma for Helix 22 Group Financial Results for quarter ended 31 March 2021 • RWA intensity¹ decreased to 49% pro forma for Helix 22, down 5 p.p. ytd, driven mainly by the increase in total assets following the additional participation of TLTRO III of €1.7 bn 63#64SREP and MREL requirements SREP requirements for 2021: CET1 ratio at 9.7% Group Financial Results for quarter ended 31 March 2021 SREP requirements for 2021: Total Capital ratio at 14.5% 14.5% 14.5% 1 11.0% O-SII 1.0% 1.0% 1 O-SII 1.0% 2 2.5% 2.5% CCB 9.7% 9.7% 2.5% CCB 2 1.0% 1.0% Pillar 2R 3.0% 3.0% 2.5% 2.5% Pillar 2R 3.0% Tier 2 2.0% 2.0% 1.7% 1.7% AT1/ 1.5% Total 1.5% Pillar 1 Pillar 1 4.5% 4.5% 4.5% Pillar 1 4.5% of 8% 4.5% 2020 2020 2021 2020 2021 post ECB announcement MREL requirements • Based on BRRD II MREL ratio • 15.03% of RWAs and c.9% of LRE as at 31 Mar 2021 • The Bank (BOC) is the resolution entity • Final Target of 23.32% of RWAs and 5.91% of Leverage Ratio Exposure (LRE) to be met by 31 Dec 2025 • 15.27% of RWAs as at 31 Mar 2021 pro forma for Helix 23 . • Interim Target of 14.94% of RWAs and 5.91% of LRE to be met by 01 Jan 2022 Does not include capital used to meet the CBR, currently at 3.5% and expected to increase to 4% on 1 Jan 2022 1) 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%). 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 2) 3) 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 Calculations on a pro forma basis assume legal completion of both Helix 2 Portfolio A and Helix 2 Portfolio B 64#65Buffer to MDA Restrictions Level & Distributable Items¹ Maximum Distributable Amount for BOCH CET1 Ratios 14.4% c.. 10.9% 355 bps 1.2% } 9.7% CET1 31 Mar 2021 31 Mar 20213 MDA Threshold Group Financial Results for quarter ended 31 March 2021 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 Oct 2020, which resulted in the reclassification of c.€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 (31 Mar 2021): c.355 bps (c.€410 mn) CET1 Ratio (%) CET1 Req Unfilled AT1 & Distance [ ] bps T2 Bucket 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 2019. 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 65#66Analysis of Deposits Deposits by Currency (€ bn) 16.69 16.25 16.30 16.38 16.53 16.33 1.29 0.29 0.10 0.29 0.10 1.28 1.31 -0.27-0.10 1.24 0.28 0.12 1.20 0.29 0.11 0.32 0.11 1.24 15.01 Dec 19 Deposits by Type (€ bn) Group Financial Results for quarter ended 31 March 2021 Mar 21 7% 2% 1% Other Currencies 14.58 14.62 14.74 14.93 14.66 GBP USD 90% EUR Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 16.69 16.25 16.30 16.38 16.53 16.33 7.59 7.44 7.62 7.91 8.15 8.08 38% Current & demand 49% 1.57 1.65 1.76 1.82 accounts 1.97 2.08 Savings accounts 7.53 7.16 6.92 6.65 6.41 6.17 13% Time deposits Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Deposits by customer Sector (€ bn) 16.69 16.25 16.30 16.38 16.53 16.33 Retail 3% 27% 10.15 SME 9.98 10.15 10.22 10.54 10.52 Global Corporate 0.69 0.80 0.71 0.77 0.68 0.79 5% 5.05 4.79 4.68 0.64 0.83 4.69 0.60 0.85 4.54 0.49 0.85 4.47 Corporate 65% Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Bank of Cyprus Holdings 66#67APPENDIX Glossary & Definitions Bank of Cyprus Holdings Group Financial Results for quarter ended 31 March 2021 67#68Group Financial Results for quarter ended 31 March 2021 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, (including cash and balances with central banks classified as non-current assets held for sale), plus loans and advances to banks, plus net loans and advances to customers (including loans and advances to customers classified as non-current assets held for sale), plus 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 gross loans are calculated as the average of the opening balance and the closing balance, for the reporting period/year. Default Definition. Debt for Asset Swaps. Debt for Equity Swaps. Deferred Tax Assets. Bank of Cyprus Holdings 68#69Group Financial Results for quarter ended 31 March 2021 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 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 comprise: (i) gross loans and advances to customers measured at amortised cost before the residual fair value adjustment on initial recognition (including loans and advances to customers classified as non-current assets held for sale) and (ii) loans and advances to customers classified and measured at FVPL adjusted for the aggregate fair value adjustment Gross loans are reported before the residual fair value adjustment on initial recognition relating mainly to loans acquired from Laiki Bank (calculated as the difference between the outstanding contractual amount and the fair value of loans acquired) amounting to €226 mn at 31 March 2021 (compared to €230 mn at 31 December 2020). Additionally, gross loans include loans and advances to customers classified and measured at fair value through profit or loss adjusted for the aggregate fair value adjustment of €329 mn at 31 March 2021 (compared €326 mn at 31 December 2020). 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 Bank of Cyprus Holdings 69#70Glossary & Definitions IB, W & M International Banking, Wealth and Markets Group Financial Results for quarter ended 31 March 2021 IBU Legacy exposures Loan credit losses (PL) (previously 'Provision charge') Loan to Value ratio (LTV) Market shares 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, for the reporting period/year. Loan to Value (LTV) is calculated as the Gross IFRS Balance to the indexed market value of the property. Under Pillar 3 disclosures LTV is calculated as the Gross IFRS Balance to the indexed market value of collateral. Collateral takes into consideration the mortgage amount registered in the land registry plus legal interest from registration date to the reference date Both deposit and loan market shares are based on data from the CBC. The Bank is the single largest credit provider in Cyprus with a market share of 42.4x% at 31 March 2021, compared to 41.9% at 31 December 2020. MSCI ESG Rating Net Proceeds Net fee and commission income over total income Net interest margin (NIM) Net loans and advances to customers Net loans to deposits ratio New lending The use by the Bank of any MSCI ESG Research LLC or its affiliates ('MSCI') data, and the use of MSCI Logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation or promotion of the Bank by MSCI. MSCI Services and data are the property of MSCI or its information providers and are provided "as-is" and without warranty. MSCI Names and logos are trademarks or service marks of MSCI. Proceeds after selling charges and other leakages Fee and commission income less fee and commission expense divided by total income (as defined). Net interest margin is calculated as the net interest income (annualised) divided by the 'quarterly average interest earning assets' (as defined). Net loans and advances to customers comprise gross loans (as defined) net of allowance for expected loan credit losses (as defined, but excluding allowance for expected credit losses on off- balance sheet exposures disclosed on the balance sheet within other liabilities). Net loans to deposits 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 disbursed amounts of the new and existing non-revolving facilities (excluding forborne or re-negotiated accounts) as well as the average year to date change (if positive) of the current accounts and overdraft facilities between the balance at the beginning of the period and the end of the period. Recoveries are excluded from this calculation since their overdraft movement relates mostly to accrued interest and not to new lending. Bank of Cyprus Holdings 70 70#71Group Financial Results for quarter ended 31 March 2021 Glossary & Definitions Non-interest income Non-recurring items 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 'Unaudited Consolidated 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) DTC levy. NPES Bank of Cyprus Holdings According to the EBA standards and ECB's Guidance to Banks on Non-Performing loans, 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 CRR, which would also trigger a default under specific credit adjustment, diminished financial obligation 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. (v)Performing forborne exposures under probation that present more than 30 days past due within the probation period. Exposures include all on and off balance sheet exposures, except those held for trading, and are categorised as such for their entire amount without taking into account the existence of collateral. The following materiality criteria are applied: •For retail debtors, when a specific part of the exposures of a customer that fulfils the NPE criteria set out above is greater than 20% of the gross carrying amount of all on balance sheet exposures of that customer, then the total customer exposure is classified as non-performing; otherwise only the problematic part of the exposure is classified as non-performing. •For non-retail debtors, when an exposure fulfils the NPE criteria set out above then the total customer exposure is classified as non-performing. •Material arrears/excesses are defined as follows: -Retail exposures: Total arrears/excesses amount greater than €100 -Exposures other than retail: Total arrears/excesses are greater than €500 and the amount in arrears/excess in relation to the customer's total exposure is at least 1%. •If unlikeliness to pay is not identified at an earlier stage, it is deemed to occur when an exposure is 90 days past due, even where regulatory rules permit default to be defined based on 180 days past due. •The definitions of credit impaired and default are aligned so that stage 3 represents all loans which are considered defaulted or otherwise credit impaired. •When a financial asset has been identified as credit impaired, ECLs are measured as the difference between the asset's gross carrying amount and the present value of estimated future cash flows discounted at the instrument's original effective interest rate. 71#72Glossary & Definitions NPES (continued) Group Financial Results for quarter ended 31 March 2021 NPEs may cease to be considered as non-performing only when all of the following conditions are met: (i) The extension of forbearance measures does not lead to the recognition of impairment or default. (ii) One year has passed since the forbearance measures were extended. (iii) Following the forbearance measures and according to the post-forbearance conditions, there is no past due amount or concerns regarding the full repayment of the exposure. (iv) No unlikely-to-pay criteria exist for the debtor. (v) The debtor has made post-forbearance payments of a non-insignificant amount of capital (different capital thresholds exist according to the facility type). Non-performing non-forborne exposures cease to be considered as NPEs and in such case are transferred out of Stage 3, only when all conditions for which the exposures were classified originally as NPES, cease to apply. When an account exits Stage 3, it is transferred to Stage 2 for a probationary period of 6 months. At the end of this period, the significant increase in credit risk (SICR) trigger is activated and the loan is either transferred to Stage 1 or remains in Stage 2. The reversal of previous unrecognised interest on loans and advances to customers that no longer meet Stage 3 criteria is presented in 'Credit losses to cover credit risk on loans and advances to customers'. New default definition effective from 1 January 2021 From 1 January 2021 two regulatory guidelines came into force that affect NPE classification and Days-Past-Due calculation. More specifically, these are the RTS on the Materiality Threshold of Credit Obligations Past Due (EBA/RTS/2016/06), and the Guideline on the Application of the Definition of Default under article 178 (EBA/RTS/2016/07). As a result of the above, the following changes came into effect as from 1 January 2021: 1.New Days-past-Due (DPD) counter: The new counter will begin counting DPD as soon as the arrears or excesses of an exposure reach the materiality threshold (rather than the first day of presenting any amount of arrears in excesses). Similarly, the counter will be set to zero when the arrears or excesses drop below the materiality threshold. Payments towards the exposure that do not reduce the arrears/excesses below the materiality threshold, will not impact the counter. 2.Additionally to the above criteria for the exit of non-performing exposures the following condition should also be met: A period of one year has passed since the latest of the following events: a. The restructuring date b. The date the exposure was classified as non-performing c. The payment of interest and capital for at least 12 months 3.Non-performing non-forborne exposures cease to be considered as NPES only when all of the following conditions are met: (i) At least three months have passed since the moment that the conditions for which the exposure was classified as non-performing, cease to be met and no trigger of default continues to apply (ii) During the three month period, the behaviour of the obligor should be taken into account (iii) During the three month period, the financial situation of the obligor should be taken into account (iv) No Unlikely to Pay criteria exist for the debtor 4.As per the new definition of default, the 20% materiality threshold and the 90 days past due counter, will no longer apply for non-retail exposures i.e. any non-performing exposure of the customer, for any reason, will result in a non-performing classification at customer level. NPE coverage ratio (previously 'NPE Provisioning coverage ratio') NPE ratio NPES sales 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. 72#73Glossary & Definitions Group Financial Results for quarter ended 31 March 2021 Non-legacy Phased-in Capital Conservation Buffer (CCB) NSFR OMV Operating profit p.p. Project Helix 2 Qoq Restructured loans Relates to all business lines excluding Restructuring and Recoveries Division ("RRD"), REMU and non-core overseas exposures In accordance with the legislation in Cyprus which has been set for all credit institutions, the applicable rate of the CCB is 1.25% for 2017, 1.875% for 2018 and 2.5% for 2019 (fully phased-in). The NSFR is calculated as the amount of "available stable funding" (ASF) relative to the amount of "required stable funding" (RSF), 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 June 2021. Open Market Value The operating profit comprises profit before Total loan credit losses, impairments and provisions (as defined), tax, (profit)/loss attributable to non-controlling interests and non-recurring items (as defined). percentage points 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 in August 2020 (Portfolio A) and to the portfolio of loans with a gross book value of €545 mn as at 30 September 2020 for which an agreement for sale was reached in January 2021 (Portfolio B). For further information please refer to section B.2.5 Loan portfolio quality of the press release. Quarter on quarter change Restructuring activity within quarter as recorded at each quarter end and includes restructurings of NPEs, performing loans and re-restructurings. Risk adjusted yield Interest Income on Loans net of allowance for expected loan credit losses/Net Loans. RRD RW As RWA Intensity Special levy Stage 2 & Stage 3 Loans Bank of Cyprus Holdings 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. 73#74Glossary & Definitions Tangible Collateral Restricted to Gross IFRS balance. Group Financial Results for the year ended 31 December 2020 Total Capital ratio Total expenses Total income Total loan credit losses, impairments and provisions T2 Underlying basis W rite offs Yoy 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 (i) 'advisory and other restructuring costs-organic', or (ii) any restructuring costs relating to NPE sales, or (iii) any restructuring costs relating to the Voluntary Staff Exit Plan, or (iv) the DTC levy. (i) 'Advisory and other restructuring costs-organic' amounted to €13 mn for 4Q20201Q2021 (compared to €3 mn for 3Q2020, €3 mn for 2Q2020, €3 mn for 1Q2020 and €8 mn for 4Q2019).1 mn for 4Q2020), (ii) Restructuring costs relating to NPE sales amounted to €4 mn for 1Q2021 (compared to c.€1.5 mn for 4Q2020 (compared to Nil for 3Q2020, €1 mn for 2Q2020, €3 mn for 1Q2020 and €10 mn for 4Q2019).), (iii) Restructuring costs relating to the Voluntary Staff Exit Plan amounted to €6 mn for 4Q2020 and FY2020 (compared to €81 mn for 4Q2019 and FY2019)., (iv) The DTC levy amounted to €3 mn for 4Q2020 and FY2020 (compared to nil for FY2019). Total income comprises net interest income and non-interest income (as defined). Total loan credit losses, impairments and provisions comprises loan credit losses (as defined), plus impairments of other financial and non-financial assets, plus provisions 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 74