#1Bank of Cyprus Group Group Financial Results for the nine months ended 30 September 2015 Overview Income Statement Review Balance Sheet Review KPIs Key Takeaways Additional Information EUROMONEY AWARDS FOR EXCELLENCE 2015 Bank of Cyprus The Best Bank in Cyprus 2015 23 November 2015 Bank of Cyprus KOINO WKYпPIW 2235 1#29M2015 Group Financial Results - Key Highlights 90+ DPD were reduced by €649 mn or 5% in 3Q2015 to €12,0 bn, with about half of the reduction relating to the disposal of the Russian operations Improving funding structure; Customer deposits in Cyprus increased by €527 mn or 5% in 3Q2015 and the loans to deposits ratio (L/D) improved to 132% Emergency Liquidity Assistance (ELA) has been reduced by €1,6 bn post 30 June 2015 to a current level of €4,3 bn; €7,1 bn or 62% ELA reduction since peak CET 1 ratio (transitional) improved by 70 bps to 15,6% due to the risk weighted assets reduction following the disposal of the majority of the Russian operations and due to organic capital generation Ongoing regulatory dialogue with the ECB regarding the Supervisory Review and Evaluation Process (SREP); taking into account its current capital position, the Group does not expect to be required to raise any capital Profit after tax from continuing operations and Profit after tax of €45 mn and €13 mn for 3Q2015, respectively; Profit after tax of €73 mn for 9M2015 With the disposal of the majority of the Russian operations, the Bank is now focused on its core Cypriot operations Bank of Cyprus KOINO WKYПPIW 2235 2#3Overview Income Statement Review Balance Sheet Review KPIs Key Takeaways Additional Information Bank of Cyprus 3 KOINO WKYNРIW 2235#4BOC-At a glance Strengthened capital position CET1 ratio (transitional basis) --1,9% Significant Balance Sheet deleveraging Total assets (bn) -27% 15,4% 14,0% 13,9% 14,9% 15,6% 33,0 31,4 30,3 11,3% 10,5% 10,4% 29,4 28,6 27,5 26,8 26,7 25,4 24,2 Capital increase I of €1 bn Jun Sep Dec Mar Jun Sep Dec 2013 2013 2013 2014 2014 2014 Mar Jun Sept 2014 2015 2015 2015 Dec Jun Dec 2012 2013 2013 Jun Sep Mar 2014 2014 2014 2015 Dec Jun 2015 Sept 2015* ELA funding reduced by €7,1 bn since peak ELA funding (€ bn) ECB funding (€ bn) 11,4 11,1 11,2 11,0 10,9 90+ DPD formation has reversed ■Change in 90+ DPD (€ mn) 5.311 Excluding the disposal of the majority of the Russian operations 10,2 1,3 1,4 1,4 2.723 1,4 8,6 8,3 7,7 1.329 1.399 945 11,4 0.9 11,1 0,9 9,9 0,8 6,4 9,6 9,5 5,4 8,8 0,5 5,2 €7,1 bn reduction of ELA since peak 7,7 7,4 -350 0,5 0.9 6,9 5,9 FY2009 FY2010 FY2011 FY2012 FY2013 4,9 -656 FY2014 9M2015 9M 2015 (excl. UB) I 1-287 43 Apr Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep 23 Nov 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 * CET 1 ratio includes independently verified profits for 9M 2015 Bank of Cyprus KOINO WKYпPIW 4#516% 14% 12% 10% 8% 6% 4% 2% 80 80 of o 07-2010 Cyprus - 2015 the year 2015 the year of normalisation and growth GDP growth expected to be positive from 2015 - faster recovery than other peripheral countries 2010 2011 2012 2013 2014 2015f 2016f 2017f I GDP Growth (yoy) 2,0% 1,4% 1,2% 1,4% 0,3% (2,4%) (2,5%) (5,4%) (3,4% (3,9%) (8,7%) Real GDP growth - Actual Current projections (EC) Initial Projections (EC) Improved rating and credit outlook as demonstrated by benchmark sovereign bond issue Yield 2020 Cyprus government bond 09-2010 11-2010 01-2011 03-2011 05-2011 07-2011 09-2011 11-2011 01-2012 03-2012 05-2012 07-2012 09-2012 11-2012 01-2013 03-2013 05-2013 07-2013 09-2013 11-2013 01-2014 03-2014 05-2014 07-2014 09-2014 * Data used is based on flash estimates SOURCE: Statistical Service of Republic of Cyprus, European Commission, Bloomberg, IMF and company reports 2Q2011 3Q2011 1,2% -0,4% 4Q2011 -0,8% 1Q2012 -1,2% 2Q2012 -2,4% 3Q2012 -2,3% 4Q2012 -3,7% 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 Continued improvement 11-2014 01-2015 03-2015 05-2015 07-2015 09-2015 11-2015 . According to the flash estimate published on 13 November 2015, real GDP in 3Q2015 increased by 2,2% yoy over the corresponding quarter of 2014, on a seasonally adjusted basis. This was the third consecutive quarterly increase after fourteen quarters of continuous decline. In October 2015 the Republic of Cyprus tapped the international debt markets for a second time in 2015 with the issuance of a 10 year bond and raised €1 bn (€2 bn in total in 2015) at a yield of 4,25% Bank of Cyprus 5 KOINO WKYпPIW#6Cyprus - 2015 the year of normalisation and growth Government budget and primary balance and public Tourist Arrivals and Receipts: yoy % changes debt as % of GDP 108% 103% 106% 98% 94% 14,4% ■ Arrivals Receipts 79% 66% 10,1% 56% 8,7% 8,0% 7,4% 3% 3% 2% 2% 3,8% 3,2% 1,5% 1% 1,5% 0% 0% 0,5% -1% -2% -3% -3% -4% -5% -2,6% -2,8% 2010 2011 2012 2013 2014 2015* ytd -6% -5% -6% 2010 2011 2012 2013 2014 Government budget balance (% of GDP) 2015 2016 2017 Evolution of Residential Property Price Index (RPPI) (yoy % change) 25% 20% 15% 10% 5% 0% -5% -10% -15% 25% -7% 0% Government primary balance (% of GDP) Gross public debt (% of GDP) Contribution to GDP growth -Residential Property Price Index 4 1,4% 0,3% 2 0,3% 0 -2,0% -2 -2,4% -2.5% -5% -4 -5,4% -9% -6 2009 1Q2015 2Q2015 2010 Agriculture 2011 2012 2013 2014 1H2015 Construction Information 1Q2007 2Q 2007 3Q 2007 4Q2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q2009 2Q 2009 3Q 2009 4Q2009 1Q2010 2Q 2010 3Q 2010 4Q2010 1Q2011 2Q2011 3Q 2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q 2014 3Q2014 4Q2014 * Data for Tourist arrivals as at 31 October 2015 and for receipts 30 September 2015 Real Estate Other services SOURCE: Central Bank of Cyprus, Statistical Service of Republic of Cyprus, European Commission, Bloomberg, IMF and company reports Industry Tourism, trade and transport Financial and insurance O Professional and administrative GDP Bank of Cyprus KOINO ΚΥΠΡΙ 237 6#7Overview Income Statement Review Balance Sheet Review KPIs Key Takeaways Additional Information Bank of Cyprus KOINO WKYNРIW 2235 7#8Income Statement Review 9M2015 9M20143 yoy % 3Q2015 2Q20154 qoq % 1Q20154 Net interest income -13% 205 212 -3% 227 644 743 Fees and commission income 115 117 -1% 36 36 0% 43 Insurance income net of insurance claims 32 35 -10% 12 9 35% 11 Core income 791 895 -12% 253 257 -1% 281 Other income (5) 1 (2) 4 (7) Total income 786 896 -12% 251 261 -4% 274 Total expenses Profit before provisions and impairments1 (296) (312) -5% (102) (92) 11% (102) 490 584 -16% 149 169 -12% 172 Provisions for impairment of customer loans net of gains on loans derecognition and changes in expected cash flows on acquired loans (329) (400) -18% (96) (123) -23% (110) Impairments of other financial and non financial assets (37) (38) -1% (6) (30) -80% (1) Share of profit from associates 3 2 122% 1 1 1 ■ Profit before tax, restructuring costs and discontinued operations 127 148 -14% 48 17 181% 62 Tax (18) (10) 76% (8) (3) 186% (7) Loss attributable to non-controlling interests 6 2 5 1 441% 0 Profit after tax from continuing operations² 115 140 -18% 45 15 195% 55 Restructuring costs (27) (32) -16% (5) (14) -60% (8) Loss from disposal group held for sale/discontinued operations (38) (92) -58% (9) (11) -17% (18) Net gain/(loss) on disposal of non-core assets 23 60 -61% (18) 41 -143% Profit after tax 73 76 -3% 13 31 -59% 29 Net interest margin 3,85% Cost-to-Income ratio 38% 3,99% 35% 3,70% 3,79% 3,94% 41% 35% 37% 1. Profit before provisions and impairments, gains on derecognition and changes on expected cash flows on acquired loans, restructuring costs and discontinued operations. 2. Profit after tax and before restructuring costs, discontinued operations and net profit on disposal of non-core assets. 3. The 9M 2015 is not comparable to the 9M2014 given the significant deleveraging completed since then, including, among others, the partial repayment of the sovereign bond held by the Bank, by the Republic of Cyprus on 1 July 2014, and the disposal of the majority of the Russian operations during 3Q2015. 4. Comparative information has been represented. See Note 4.2 of the Financial Report for the 9 months ended 30 September 2015, Comparative information. Bank of Cyprus KOINO WKYNРIW 2235 8#9Net Interest Income and Net Interest Margin Net Interest Income and Net Interest Margin Interest income from Laiki Recapitalisation bond (€ mn) Net interest income (other) (€ mn) NIM (bps) FY2014: 394 423 390 9M2015: 385 394 382 381 379 370 262 248 231 225 227 212 44 205 43 26 26 25 22 9 205 218 205 199 202 190 196 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 Evolution of Yield of Loans, Cost of Deposits and Customer Spread in Cyprus operations* (bps) ■1Q2015 2Q2015** ■3Q2015 3Q2015 9M2015: 549 573 537 536 9M2015: 428 9M2015: 120 434 418 432 139 119 104 Yield on Loans Cost of Deposits Customer spread • 3Q2015 Group Net Interest Income (NII) at €205 mn compared to €212 mn for 2Q2015, reflecting the reduction in lending rates in March 2015, the gradual repricing of deposits and the partial repayment of a bond by the Republic of Cyprus in June 2015; Group Net Interest Margin (NIM) remains healthy at 3,70% for 3Q2015, compared to 3,79% for 2Q2015 • Customer spread in Cyprus increased to 432 bps in 3Q2015 compared to 418 bps in 2Q2015, as the repricing of deposits lagged the earlier repricing of loans Includes all currencies 2Q2015 and year to date 1H2015 that has been adjusted to exclude non recurring items Bank of Cyprus KOINO WKYNРIW 9#10Analysis of Non-interest income Analysis of Non Interest Income (€ mn) ■Net fee and commission income ■Insurance income net of insurance claims ■Net FX gains/(losses) & Net gains/(losses) on other financial instruments (Losses)/gains from revaluation and disposal of investment properties ■Other income/(expenses) 12% 55 14% 13% 16% 14% 14% 46 501 38 -- 31 47i 37 50 47 49 45i 54 45 43 48i 15 36 1 36 I 10 6 17 3 4 12 2 10- 2 10 11 9 12 -4 -14 2Q2014 3Q2014 -3 -9 -7 4Q2014 1Q2015 -16 -13 2Q2015 3Q2015 % Net fee and commission income % Total income X Non interest income (€ mn) LIJ Recurring non- interest income • Non-interest income stood at €46 mn for 3Q2015, compared to €49 mn for 2Q2015 • Net fee and commission income remained at the same level for 3Q2015 at €36 mn (about 14% of total income) • Recurring income from insurance business (average of about €11 mn for the last six quarters) reflecting the Group's leading position in the insurance business in Cyprus; Insurance income was higher in 3Q2015, as 2Q2015 was negatively affected by a revaluation effect of investments Average recurring income from fee and commission income and insurance income of about €48 mn for the last six quarters Bank of Cyprus KOINO ΚΥΠΡΙ 10#11Total expenses Total expenses (€ mn) 9M 2014: 312 9M2015: 296 115 105 104 103 102 102 92 57 47 45 44 43 43 33 58 59 59 58 59 59 59 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 Staff costs Other operating expenses Group Cost to Income Ratio ■Group ■Cyprus 38% 35% 37% 35% 37% 35% 36% 35% 35% 34% 33% 33% 31% 31% 1Q2014 1H2014 9M2014 FY2014 1Q2015 1H2015 9M 2015 • • • Total expenses for 3Q2015 increased to €102 mn from €92 mn for 2Q2015, but remained in line with previous quarters. 2Q2015 operating expenses. were exceptionally lower if compared to previous quarters as a consequence of lower advertising, consultancy and professional expenses that incurred during the quarter. Staff costs for 3Q2015 at €59 mn in line with the previous quarters Total expenses for 9M2015 totalled €296 mn compared to €312 mn at 9M2014. The cost-to-income ratio for the Group stood at 38% for 9M2015, compared to 36% for 1H2015 Actions to maintain a lean operating structure include: ➤ Complete redesign and rationalisation of branches Align the IT strategy with business needs ➤ Digital Transformation Improve organisational structure Bank of Cyprus KOINO WKYNРIW 2235 11#12Group Income Statement Highlights Group Income Statement Highlights (€ mn) 9M15: 490 9M 14: 584 ** 2Q2014 ■3Q2014 ■ 4Q2014 ■1Q2015 2Q2015 ■ 3Q2015 214 159 161 172 169 149 9M 15: 329 9M15: 115 9M 14: 140 9M 14: 400 9M 15: 73 9M 14: 76 55 34 45 50 11 15 29 31 13 Profit before impairments* restructuring costs and discontinued operations -119 -110 -123 -96 -169 -189 -312 Provisions for impairment of customer loans and gains on derecognition and changes in expected cash flows on acquired loans -6 Profit/(loss) after tax from continuing operations** -337 Profit/(loss) after tax • • • Profit before impairments*, restructuring costs and discontinued operations for 9M2015 of €490 mn. Profit before impairments*, restructuring costs and discontinued operations for 3Q2015 of €149 mn, compared to €169 mn for 2Q2015 Provisions for impairment of customer loans and gains on derecognition and changes in expected cash flows on acquired loans for 9M2015 of €329 mn. Provisions for impairment of customer loans and gains on derecognition and changes in expected cash flows on acquired loans for 3Q2015 of €96 mn, compared to €123 mn for 2Q2015 Profit after tax from continuing operations** for 9M2015 of €115 mn. Profit after tax from continuing operations for 3Q2015 at €45 mn, compared to a profit for 2Q2015 at €15 mn • Profit after tax for 9M2015 at €73 mn. Profit after tax for 3Q2015 of €13 mn, compared to a profit of €31 mn for 2Q2015 Profit before provisions and impairments, gains on derecognition and changes on expected cash flows on acquired loans, restructuring costs and discontinued operations. Bank of Cyprus KOINO WKYNРIW Profit/(loss) after tax and before restructuring costs, discontinued operations and net profit on disposal of non-core assets 12#13Income Statement Highlights - Group vs Cyprus 9M2015 Cyprus Vs Group performance (€ mn) 94% 97% 766 786 603 644 91% 101% 277% % 496 490 % contribution of Cyprus operations 203 -270 -296 73 41 20 ■Cyprus operations -26 -6 -130 Net interest income Total income Total expenses Profit before provisions Profit/(loss) after tax Rest of operations ■Group and impairments* restructuring costs and discontinued operations High NIM in Cyprus operations Low Cost to Income ratio for Cyprus operations Fee and commission income / total income for Cyprus operations (bps) 423 377 372 384 379 386 50% 369 367 354 314 38% 9M2015: 375 FY2013: 353 FY2014: 385 Total income (€ bn) Other income 0,7 Fee and commission income 0,27 0,27 0,26 0,25 1,0 0,30 0,25 19% 13% 12% 15% 12% 16% 14% 14% 35% 35% 35% 35% 33% 31% 31% 81% 87% 88% 85% 88% 84% 86% 86% 1H13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 1H13 FY13 1Q14 1H14 9M 14 FY14 1Q15 1H15 9M15 2012 2013 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Profit before provisions and impairments, gains on derecognition and changes on expected cash flows on acquired loans, restructuring costs and discontinued operations. Bank of Cyprus 13 KOINO ΚΥΠΡΙ#14Overview Income Statement Review Balance Sheet Review KPIs Key Takeaways Additional Information Bank of Cyprus 14 KOINO WKYNРIW 2235#15Balance Sheet* Deleverage Shrinking to Strength strategy is successfully coming to an end € mn Jun 2013 Dec 2013 Jun Sep Dec 2014 2014 2014 Mar 2015 Jun 2015 Sep 2015 Change Since Jun 2013 Cash & bank placements 3.012 2.530 1.973 2.417 2.908 2.748 2.558 2.385 -627 Investments 3.413 Net Loans Other assets Total assets 3.433 3.538 2.578 23.769 21.764 20.063 19.794 2.762 32.956 30.349 28.558 27.483 2.541 2.401 18.632 1.631 1.428 18.731 18.545 17.930 -1.985 Net loans reduction driven -5.839 2.622 2.984 2.694 2.708 26.789 2.792 2.648 2.454 26.672 25.382 24.197 -308 by disposal of non-core assets and the ongoing deleveraging -8.759 Customer deposits ECB funding 16.970 14.971 13.803 13.330 920 13.169 13.611 13.629 13.608 -3.362 Deposit base gradually stabilising 1.400 1.400 880 800 500 501 501 ELA 11.107 9.556 8.785 7.684 7.404 6.900 5.903 4.902 -6.205 Overall €7,1 bn ELA reduction from peak Interbank funding 983 790 802 707 772 808 805 691 -292 Other liabilities 976 895 954 1.057 1.083 1.045 1.026 957 -19 Total equity 2.920 2.737 Total liab. & equity 32.956 30.349 RWA 23.510** 23.530 2.814 3.785 28.558 27.483 22.485 22.863 3.481 26.789 22.715 3.508 3.519 26.672 25.382 24.197 22.972 21.527 20.717 3.538 618 -8.759 RWA intensity 71% 78% 79% 83% 85% 86% 85% 86% Balance sheet -2.607 -1.791 -1.075 -694 -117 -1.290 -1.185 deleverage qoq CET1 ratio n/a 10,4% 11,3% 15,4% 14,0% 13,9% 14,9% 15,6% (transitional basis) Leverage ratio Steady reduction of total assets. Average quarterly reduction at €1bn or 4% CET1 ratio & Leverage ratio strengthened by share capital increase, deleverage and RWA reduction 11,3x 11,1x 10,1x 7,3x 7,7x 7,6x 7,2x 6,9x (Assets/Equity) Bank of Cyprus KOINO WKYNРIW ** * Consolidated Balance Sheet -comparatives ignoring classification as disposal group held for sale Pre CRD IV 15#16Funding Structure Analysis of Liabilities and Equity (€ bn) ■Total equity ■Other liabilities ELA ECB funding Customer deposits Loans to Deposits ratio -Customer deposits to Total Assets Loans to deposits ratio (net) I Adjusting for the disposal I of the majority of the Russian operations 15,0 14,1 13,8 13,3 13,2 13,6 30,4 29,4 28,6 27,5 26,8 26,7 25,4 24,2 145% 151% 148% 148% 140% 141% 138% 136% 139% 1 132% I 13,6 13,6 N N I 1,4 0,9 0,9 I 0,8 0,5 51% 0,5 49% 48% 48% 49% 49% 51% 54% 51% 156% 9,6 9,5 8,8 7,7 7,4 6,9 5,9 4,9 + 1,8 1,8 1,9 1,9 1,7 1,7 1,6 1,8 2,7 2,8 2,8 3,8 3,5 3,5 3,5 3,5 Jun Dec Mar Jun Sep Dec Mar 2013 2013 2014 2014 2014 2014 2015 Jun Jun Sep 2015 2015 2015 ¡ (excl. ¡ Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 I UB) Analysis of Liabilities and Equity (%) ■Total equity Other liabilities ■ELA ECB funding Customer deposits 49% 48% 48% 49% 49% 51% 54% 56% 5% 5% 5% 3% 3% 3% 2% 2% 31% 32% 31% 28% 28% 26% 23% 20% 6% 7% 7% 7% 7% 6% 6% 6% 9% 9% 10% 14% 13% 13% 14% 15% . • Further progress in normalising the Bank's funding structure. At 30 September 2015, customer deposits and ELA accounted for 56% and 20% of assets, respectively. Consistent improvement in the loans to deposits ratio (L/D), with the L/D ratio improving by 4 p.p. in 3Q2015 to 132%, the lowest level post bail in; Adjusting for the disposal of the majority of the Russian operations, the improvement in the L/D ratio during 3Q2015 was 7 p.p. Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Bank of Cyprus 16 KOINO WKYNРIW#17Eurosystem Funding Reliance Reducing Fast Continuous reduction of ELA with further potential going forward Actions for further ELA reduction 34% .32% 31% 31% 31% 11,40 28% 28% 11,11 11,16 10,96 10,91 26% 11,40 10,18 11,11 1,30 1,40 1,40 23% 1,40 9,86 8,60 9,56 9,51 8,28 • 20% Issue senior unsecured debt subject to market conditions Repos with Counterparties using CyGBs as collateral (currently pledged with the CBC) Interbank funding from local banks 8,78 0,92 7,70 0,88 18% • 0,80 Proceeds from deleveraging 7,68 7,40 6,40 6,90 0,50 5,40 5,15 5,90 0,50 0,85 4,90 4,30 €7,1 bn reduction of ELA since peak • Securitisation/new covered bond Working closely with the CBC so as to enable the use of a pool of retail loans within the ECB's Additional Credit Claims framework Continuous efforts to attract customer deposits Apr Jun Sep Dec Mar Jun Sep Dec 2013 2013 2013 2013 2014 2014 2014 2014 Mar Jun 2015 2015 Sep 2015 23 Nov 2015 • ELA (€ bn) ECB funding (bn) ELA % Total Assets In light of challenging market conditions the Bank is maintaining a significant liquidity buffer. * Ratio of ELA Funding % Total Assets for 23 November 2015 is based on total assets as at 30 September 2015 Bank of Cyprus 17 KOINO ΚΥΠΡΙ 2235#18Customer Deposits Customer Deposits by Geography (€ mn ) Cyprus ■ UK Russia & Other countries* 14.971 14.066 13.803 1.022 1.244 13.330 832 1.249 863 1.252 798 1.289 13.169 550 1.305 13.611 614 1.357 13.629 13.608 5 607 1.391 1.445 Evolution of Customer deposits** (€ mn) Adjusting for the disposal of the ☐ majority of the Russian operations ■Group Cyprus 442326 -161 -297 -497 -263297 -445 -473 -720 -905 12.705 11.985 11.688 11.243 11.314 11.640 11.631 12.158 -1415 -1502 71 581 527 527 18 I -9 -21 • 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 3Q15 (excl. UB) Group customer deposits totalled €13.608 mn at 30 September 2015. Customer deposits in Cyprus increased by €527 mn during 3Q2015 and stood at €12.158 at 30 September 2015, the highest level post December 2013 Deposit market shares. in Cyprus for Residents and non-Residents reached 26,1% and 27,5% respectively, in September 2015 Sep-13 Dec-13 25,6% 35,2% 32,2% Deposit market shares in Cyprus Residents Non-Residents Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 25,5% 24,6% 30,8% 24,3% 28,4% 23,7% 27,5% 23,7% 27,2% 23,9% 26,4% 24,1% 26,7% 24,2% 26,9% 24,7% 27,2% 26,9% Jun-14 Sep-14 Mar-14 Oct-14 Nov-14 Dec-14 Jan-15 * Other countries comprise Ukraine (until March 2014), Romania and Greece. Including deposits of disposal groups held for sale/discontinued operations. Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 25,8% 25,1% 26,1% 25,3% 26,7% Aug-15 Sep-15 25,7% 26,5% 26,0% 26,1% 26,4% 27,5% Bank of Cyprus KOINO WKYNРIW 18#19Capital Position Evolution for CET1 ratio during 3Q20151 14,9% +0,7% 15,6% 15,1% -0,4% +0,3% +0,1% -0,5% CET1 ratio 30.06.15 (transitional) Profit before provisions Provisions Disposal of the majority of the Russian operations RWAs Change CET1 ratio 30.09.15 (transitional) 2 Capital Adequacy Ratios on an improving trend DTA CET1 ratio 30.09.15 (fully loaded) 22% 17% 12% 'Clean' Fully Loaded CET1 ratio² (September - 2015³) BOC CET1 ratio 15,1% RWA intensity 86% 7% Clean Fully Loaded CET1 ratio (Sept-2015)3 RWAs intesity (RWAS % Total assets)3 median CET1 ratio (11,8%) median RWAs intensity (41%) RWA intensity one of the highest among EU banks 31.03.14 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 30.09.15 90% 86% 86% 85% 85% 85% 83% 15,4% 15,6% 15,6% 15,7% 80% 78% 79% 78% 14,9% 15,0% 14,0%13,9% 14,2% 14,1% 75% 73% 71% 70% 11,3% 10,6% 11,5% 10,8% 65% 60% Jun CET 1 ratio (transitional) Total capital ratio (transitional) 2013 Sept Dec Mar Jun Sept Dec Mar Jun Sep 2013 2013 2014 2014 2014 2014 2015 2015 2015 1 Includes independently verified profits for 9M 2015 2 As per Citigroup Research, 'Clean' Fully Loaded CET1 ratio excludes Deferred Tax Credits, AFS and Danish Compromise Estimated Impact. 3 Includes data for 3 EU banks as at 31 March 2015, 3 EU banks as at 30 June 2015 and 32 EU banks as at 30 September 2015 -RWA (%) Total Assets Bank of Cyprus KOINO WKYNРIW 19 100% 80% 60% 40% 20% 0%#20Capital Position ● • • SREP Process and onsite inspection Current SREP and onsite inspection process and related considerations with the ECB expected to be concluded by end-2015. The onsite inspection and related draft recommendation letter state that, on the basis of a modified set of assumptions, there is, in the ECB's view, a provision-related adjustment of around €300 mn for the judgemental (specifically assessed) portfolio and around €700 mn for the statistical (collectively assessed) portfolio, mostly relating to the recovery value of real estate collateral. The Group is contesting certain of the assumptions used by ECB for the calculation of the provisions for the credit risk inspection. The Group has substantially recognised the provisions for the judgmental portfolio reviewed by the ECB and part (around €100 mn) of the provisions for the reviewed statistical portfolio in the 9M2015 results, as part of the normal application of its provisioning methodology. The Group considers that the ECB calculated adjustments do not indicate that the Group is not in compliance with IFRS If the impact of the provision-related adjustment calculated by the ECB and which, in the view of the Group, has not been recognised to date amounting to around €600 million was to be considered, there would be a decrease of 2,4% on CET1 ratio (pre-tax) The Group estimates that ECB's current SREP dialogue and onsite inspection process and related considerations will be concluded by the end of 2015. The CET1 Pillar II add-on capital requirement at 30 September 2015 stands at 5,2% (resulting in a total minimum CET1 of 13,2%) and it may be further reduced by future losses of up to €658 million, up to a CET1 ratio of 8%. The revised Pillar II CET1 capital requirement was preliminarily determined by the ECB to be 3,75%, resulting in a total minimum CET1 of 11,75%. Taking into account the Group's CET1 ratio of 15,6% as at 30 September 2015 and the expectations for the SREP process outcome, even after adjusting for potential additional capital requirements, as a result of the credit risk inspection, the Group expects to be compliant with both its Pillar I and revised Pillar II add-on capital requirements and therefore does not expect to be required to raise any capital Bank of Cyprus KOINO WKYNРIW 2235 20#21Gross Loans Gross Loans by Geography (€ mn) ■Cyprus ■Russia ■ UK -19% Other countries** -6% -2% -4% 28.349 -2% 26.743 -4% 1% -1% 1.268 26.263 -4% 25.300 1.459 1.230 1.180 1.794 1.284 804 1.194 24.742 706 23.772 24.085 23.926 22.863 1.429 1.172 1.290 1.112 692 667 1.304 1.208 914 1.026 570 1.132 966 1.072 1.033 490 1.140 257 23.828 22.800 22.599 22.020 21.716 21.200 21.320 21.191 20.976 Jun Dec Mar Jun Sep Dec Mar 2013 2013 2014 2014 2014 2014 2015 2015 Jun Sep 2015 • Group gross loans totalled €22,9 bn at 30 September 2015, compared to €23,9 bn at 30. June 2015. Gross loans in Cyprus totalled €21,0 bn at 30 September 2015, and accounted for 92% of gross loans of the Group. Overall, a 19% reduction in Group gross loans. since June 2013 Domestic loan book reduced by 12% since June 2013, reflecting primarily customers' efforts to deleverage by using their deposits to pay down debt * Gross loans are reported before fair value adjustment on initial recognition relating to loans acquired from Laiki Bank (difference between the outstanding contractual amount and the fair value of loans acquired) amounting to €1.266 mn (compared to €1.351 mn at 30 June 2015), including loans of discontinued operations/disposal group held for sale. ** Other countries: Romania, Ukraine (until March 2014) and Greece. Furthermore, certain loans and advances in Romania are included, that previously were reported under Cyprus. Bank of Cyprus KOINO WKYNРIW 2235 21#22Credit Risk - Quality of Loan portfolio 90+ DPD Loans י - ז L- I Adjusting for the disposal of the majority of the Russian operations NPES Adjusting for the disposal of the majority of the Russian operations I L_I 62,9% 63,0% I 61,9% 62,2% 62,2% 52,5% 53,2% 53,1% 52,9% 153,0% 52,5% 48,6% 48,6% 49,8% 15,0 15,2 14,8 14,4 14,2 13,0 13,0 12,8 12,6 12,7 12,8 12,6 12,3 12,0 Mar-15 Jun-15 Jun 2015 | Sep-15 (excl.UB) I 90+ DPD ratio Dec-14 Mar-15 Jun-15 INPES (€ bn) Jun 2015 (excl.UB) L. -NPEs ratio Sep-15 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 90+ DPD (bn) Evolution of 90+ DPD and NPES (€ mn) Change in 90+ DPD ■Change in NPES 3.319 Excluding disposal of the majority of the Russian operations 1.972 1.240 386 136214 I 20 -247 -164 -143 -325 -280 -366 -649 -172 4Q12 1H13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 3Q15 I I (excl | UB) I 90+ DPD1 decreased by €649 mn during 3Q2015 and totalled €12,0 bn at 30 September 2015. €369 mn of the reduction relates to the disposal of the Russian operations. 90+ DPD ratio stood at 52,5% at 30 September 2015 Non Performing Exposures (NPEs), as per EBA definition, decreased by €584 mn during 3Q2015 and totalled €14,2 bn at 30 September 2015 The level of NPEs exceeds the level of 90+ DPD, primarily due to the fact that cured performing exposures are required to remain in the NPES category until specific probation timeframes have elapsed Bank of Cyprus 1 Loans in arrears for more than 90 days (90+ DPD) are defined as loans with a specific provision and loans past-due for more than 90 days, but not impaired. 22 KOINO WKYпPIW 2235#23Credit Risk - Provisions Accumulated provisions Accumulated provisions (€ bn) Provisions % Gross loans Provision coverage ratios Excluding disposal of the 90+ DPD provision coverage I I majority of the Russian operations Excluding disposal of the NPLs/NPEs provision coverage I majority of the Russian operations 21,6% 22,2% 22,5% 17,6% 18,6% 19,1% 19,3% 20,0% 21,8% 21,6% 45% 37% 39% 38% 39% 41% 42% 43% 41% 41% 38% 16,2% 42% 37% 35% 35% 33% 34% 34% 35% 36% 35% 135% 4,6 4,8 5,0 5,0 4,9 4,9 5,1 5,4 5,4 5,1 4,9 Jun Sep Dec 2013 2013 2013 Mar Jun Sep 2014 2014 2014 Dec 2014 Mar 2015 Jun 2015 Jun 1 Sep 2015 | 2015 (excl. I Jun 2013 Sep Dec Mar 2013 2013 2014 Jun 2014 Sep 2014 Dec Mar Jun 2014 2015 2015 I Jun 2015 2015 Sep (excl. I UB) I LUB) Cost of risk 1 Cost of Risk Cyprus Cost of Risk Group 3,6% 2,8% 2,8% 2,7% 2,1% 2,2% 2,1% 2,4% 2,2% 2,4% 1,9% 1,7% 1,5% 1,6% 1Q2014 1H2014 9M 2014 FY2014 1Q2015 1H2015 9M 2015 Accumulated provisions totalled €4,9 bn and accounted for 21,6% of gross loans at 30 September 2015 The provisioning coverage ratio of 90+ DPD has remained at the same level at 41%, as the previous quarter when adjusting June 2015 results to exclude the Russian operations. The provisioning coverage ratio of 90+ DPD taking into account unrecognised income on contractual customer balances, totalled 52% at 30 September 2015 The provisioning coverage ratio of NPEs (as defined by EBA) totalled 35% at 30 September 2015 Group annualised cost of risk for 9M2015 was 2,1%, compared to 2,2% for 1H2015 and 3,6% for FY2014; Annualised cost of risk for Cyprus for 9M2015 was 1,6%, compared to 1,7% for 1H2015 1 Calculated as the provisions for impairment of customer loans, including provisions of discontinued operations, (in total €635 mn), net of gains on derecognition and changes in expected cash flows on acquired loans (totalling €263 mn) over average gross loans 2 This ratio is calculated by adjusting both the provisions stock and the customer balances to include any unrecognized interest income due on contractual balances. Bank of Cyprus KOINO WKYNРIW 23#24Credit Risk — 90+ DPD loans by number of days past due and by customer type - 90+ DPD loans by number of days past due (€ bn) Group 90+ DPD ratios by customer type (%) 13,00 12,76 12,59 12,98 12,65 12,79 12,65 12,00 Corporate SMES Retail 4,85 4,02 3,54 3,76 3,36 3,37 3,00 2,67 62% 63% 64% 63% 59% 60% 56% 1,05 1,13 1,15 1,15 1,01 0.97 0,93 0,40 0,23 0,23 0,29 0,34 0,22 0,85 61% 0,13 57% 58% 59% 59% 58% 0,52 56% 36% 35% 36% 35% 34% 30% 32% 6,70 7,29 7,69 7,84 7,85 8,07 8,46 8,35 T Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Mar-14 ■Not Impaired but with arrears over 90 dpd Impaired with no arrears ■Impaired with arrears up to 90 dpd Impaired with arrears over 90 dpd 90+ DPD by number of days past due as a % of gross loans • Total 90+DPD as a % of Gross Loans 53,2% 53,1% 52,9% 52,5% 52,5% 48,6% 48,6% 49,8% 12% 15% 14% 14% 13% 14% 18% 15% 4% 5%% 5% 1% 1% 4%% 4% 4% 1% 3% 4%% 1% 25% 28% 30% 32% 33% 34% 35% 37% Dec 2013 Mar 2014 Jun 2014 Sept 2014 Dec 2014 Mar 2015 Jun 2015 Sep 2015 Impaired with arrears over 90 dpd ■Impaired with no arrears. Impaired with arrears up to 90 dpd ■Not impaired but with arrears over 90 dpd Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Approximately €0,9 bn of loans classified as impaired have presented no arrears during the last few quarters. The Bank is monitoring the performance of these customers. 90+ DPD ratio of Corporate, SMEs and Retail has been relatively stable at 58%, 64% and 34% respectively at 30 September 2015 compared to 30 June 2015 Bank of Cyprus KOINO WKYNРIW 2235 24#25Credit Risk by customer type - 90+ DPD fully covered by provisions & tangible collateral 30 September 2015 Corporate SMES Retail Housing Retail Other Cyprus 48% 21% 21% 10% 100% 21,0 Gross loans 10,0 4,5 4,3 2,2 (€ bn) 61% 66% 90+ DPD loans 54% 50% 26% by segment Loan Loss Reserve (LLR) 51% 43% 33% 25% 39% coverage Tangible 72% 75% 81% 53% 72% coverage Total coverage 115% 108% 106% 104% 111% Significant provision and collateral coverage, with additional comfort from personal guarantees XX % of total gross loans (Cyprus only) Bank of Cyprus KOINO ΚΥΠΡΙ 2235 25#26Restructuring and Recoveries Division Good progress has been made with Restructuring efforts on top 30 exposures¹ assumed by RRD € bn • €5,3 bn €5,0 bn €4,7 bn €4,3 bn €4,3 bn 1,2 1,0 0,9 0,9 0,8 1,3 2,2 22 0,5 2,1 1,9 2,1 ■Restructuring implemented or to be signed ■Detailed non binding heads of terms for restructuring agreed Good progress in agreeing heads of terms for restructuring; some commercial points still open Diligence ongoing; Some way to go before heads of terms to be agreed Insolvency appointment 1,7 0,8 0,4 0,5 0,5 0,5 0,3 0,3 0,1 0,3 0,5 0,5 0,5 0,6 Other recovery cases 0,3 0,2 0,2 0,2 0,2 30.09.14 31.12.14 31.03.15 31.07.15 30.09.15 Currently, about €0,8 bn of restructured loans that are managed and monitored by RRD will be transferred to business lines upon satisfactory performance Bank of Cyprus KOINO WKYNРIW 1 Funded and unfunded exposures. Top 30 exposures assumed by RRD on 30 November 2013 and their progress over time 26#27Overseas non-core operations The non-core overseas operations as at 30 September 2015 were as follows: Greece: The net exposure comprised: Overseas non-core operations (€ mn) 1.311 166 (a) Net on-balance sheet exposures (excluding foreclosed properties) totalling €49 mn; (b) 637 foreclosed properties with a book value of €192 mn; (c) off-balance sheet exposures totalling €132 mn; and (d) lending exposures to Greek entities in the normal course of business in Cyprus totalling €71 mn, and lending exposures in Cyprus with collaterals in Greece totalling €68 mn. -25% 1.179 155 1.051 627 185 986 585 140 154 528 97 139 I 512 76 133 179 132 56 200 49 199 192 Romania: The overall net exposure is €354 mn Russia: Following the disposal of Uniastrum Bank and certain other Russian assets the remaining net exposure (on and off balance sheet) in Russia is €120 mn 520 439 368 354 164 155 155 120 Sep-15 Dec-14 Mar-15 Jun-15 Greece other* ■Greece net on balance sheet exposure ■Romania: Net Exposure Greece net off balance sheet exposure ■Greece Foreclosed Properties ■Russia: Net exposure Lending exposures to Greek entities in the normal course of business in Cyprus and lending exposures in Cyprus with collaterals in Greece As per the completion of the announcement dated 28 September 2015. Comprising €135 mn on-balance sheet and €20 mn off-balance sheet exposures, based on the Group financial results for the six months ended 30 June 2015. Bank of Cyprus KOINO WKYNРIW 27#28Overview Income Statement Review Balance Sheet Review KPIs - Key Takeaways Additional Information Bank of Cyprus 28 KOINO WKYNРIW#29Significant progress made on Group KPIs, with a clear plan of action to achieve medium-term targets Medium- Key Group Group Cyprus term Category performance indicators Dec- Sep- Sep- 2014 2015 2015 target (2017) * 1. Reverse 90+ DPD 41% 41% 39% 40%-50% coverage Asset quality Provisioning charge 3,6% 2,1% ** 1,6% <1,0% Key Pillars & Plan of action trend on overdue loans 2. Normalise funding; Eliminate ELA 3. Focus on • Continue restructuring, capitalising on the foreclosure law • • Seek FDI to enhance business viability Re-cycle restructured loans into the lending business for continued support and service Boost deposits by leveraging on stronger capital position Access Debt Capital Markets on the back of improved ratings, stronger financial soundness and better prospects Proceeds from disposal of non- core operations Direct lending into promising sectors with a view to funding the recovery of the Cypriot economy Further diversify income stream by boosting fee income from new sources in international business and wealth Eurosystem Funding funding % total 31% 22% n.a <25% balance sheet Basel 3 Capital transitional 14,0% 15,6% n.a >12% core markets in Cyprus CET1 Net interest 3,9% 3,9% 3,7% ~3,25% margin Fee and Margins and efficiency commission 13% 15% 14% Increase income/total income 4. Achieve a lean operating model ° Set-out a digital vision and introduce appropriate technology to enhance product distribution channels Introduce technology and processes to reduce operating costs • Introduce HR policies aimed at enhancing productivity 5. Deliver returns Cost to income ratio 36% 38% 35% 40%-45% • Strengthen governance and risk management to deliver appropriate medium-term risk-adjusted returns * Medium term target refers to the targets set as per the latest NDR presentation (available on the Group's website). ** Calculated as the provisions for impairment of customer loans, including provisions of discontinued operations, (in total €635 mn), net of gains on derecognition and changes in expected cash flows on acquired loans (totalling €263 mn) over average gross loans Bank of Cyprus 29 KOINO WKYПPIW 1235#30Key Takeaways Leading financial institution in an economy that is on the road to economic recovery CET1 ratio at 15,6% (transitional basis); capital position shields the Group from further shocks and helps in regaining trust of counterparties; at the same time, we are confident about the outcome of the SREP discussion During 3Q2015 the Bank disposed of the majority of the Russian operations; With the disposal the Bank completes the disposal of the Group's overseas banking subsidiaries identified for sale. Improving funding structure with an increasing deposit base in Cyprus; L/D ratio at 132% and customer deposits at 56% of total assets ELA reduced by €7,1 bn to €4,3 bn through deleveraging actions, capital proceeds and customer inflows. 90+ DPD reduced to €12 bn; a reduction of €649 mn during 3Q2015, out of which €369 mn due to the disposal of the majority of the Russian operations; provision coverage stood at 41% while taking into account the unrecognised interest income calculated with reference to the contractual balances of the customer, the provisioning coverage rises to 52%. The adoption of the foreclosure legislation and insolvency framework coupled with the improved fundamentals of the Cypriot economy is a significant step in enabling the Bank to tackle its delinquent loans and to improve its asset quality. Recurring profitability stabilising, Profit after tax from continuing operations and Profit after tax of €115 mn and €73 mn for 9M2015, respectively Bank of Cyprus 30 KOINO ΚΥΠΡΙ#31Overview Income Statement Review Balance Sheet Review KPIs Key Takeaways Additional Information Bank of Cyprus 31 KOINO WKYNРIW 2235#32Key Information and Contact Details Credit Ratings: Fitch Ratings: Long-term Issuer Default Rating: upgraded to "CCC" on 28 April 2015 Short-term Issuer Default Rating: affirmed at "C" on 28 April 2015 Viability Rating: upgraded to “ccc" on 28 April 2015 Moody's Investors Service: Baseline Credit Assessment: Affirmed at caa3 on 28 May 2015 (stable outlook) Short-term deposit ratings: Affirmed at "Not Prime" on 17 November 2014 Long-term deposit ratings: Affirmed at Caa3 on 28 May 2015 (stable outlook) Counterparty Risk Assessment: Assigned at Caa2 (cr) / Not-Prime (cr) on 28 May 2015 Listing: ATHEX-BOC, CSE - BOCY, ISIN CY0104810110 Contacts Investor Relations Tel: +35722122239, Email: [email protected] Constantinos Pittalis, Investor Relations Manager, Tel: +35722122466, Email: [email protected] Annita Pavlou, ([email protected] ) Elena Hadjikyriacou, ([email protected]) Marina loannou, ([email protected]) Styliani Nicolaou, ([email protected]) Chief Financial Officer Eliza Livadiotou, Tel: +35722122344, Email: [email protected] Finance Director Dr. Chris Patsalides, Tel: +35722122456, Email: [email protected] Visit our website at: www.bankofcyprus.com Bank of Cyprus KOINO WKYNРIW 32#33Consolidated Balance Sheet € mn % 30.09.15 31.12.14 € mn % 30.09.15 31.12.14 change change Cash and balances with Amounts due to banks +99% 323 162 -13% 986 1.139 Central Banks Funding from Central Banks -35% 5.403 8.284 Placements with banks -15% 1.399 1.647 Repurchase agreements -37% 368 580 Debt securities, treasury bills -44% 1.428 2.541 Customer deposits +8% 13.608 12.624 and equity investments Debt securities in issue +1% 1 1 Net loans and advances to -1% 17.980 18.168 customers Other liabilities -9% 956 1.046 Other assets 2.381 2.378 Non current liabilities and disposal groups classified as held for sale 611 Non current assets and disposal groups classified as -97% 23 916 Total liabilities -11% 20.659 23.308 held for sale Share capital 0% 892 892 Total assets -10% 24.197 26.789 Capital reduction reserve and share premium 0% 2.505 2.505 Note: Revaluation and other reserves +41% 208 147 As from 4Q2014, the Group's operations in Russia are treated as disposal group held for sale and results have been presented accordingly as discontinued operations according to IFRS 5. In September 2015, the Bank completed the sale of the majority of its Russian operations. The part of the operations not disposed of, has ceased to be classified as held for sale and its results are presented as part of the continuing operations. Accumulated losses +10% (87) (79) Shareholders' equity +2% 3.518 3.465 Non controlling interests +26% 20 16 Total equity +2% 3.538 3.481 Total liabilities and equity -10% 24.197 26.789 Bank of Cyprus KOINO ΚΥΠΡΙ 2235 33#34Consolidated Income Statement € mn Net interest income Net fee and commission income Insurance income net of insurance claims Core income Other income ■ Total income 3Q2015 2Q2015* 1Q2015* 4Q2014* 3Q2014* 205 212 227 225 231 36 36 43 35 37 12 9 11 10 10 253 257 281 270 278 (2) (7) 6 (16) 251 261 274 276 262 Staff costs Other operating expenses (59) (59) (59) (59) (59) (43) (33) (43) (56) (44) Total expenses (102) (92) (102) (115) (103) ¡Profit before provisions and impairments, gains on derecognition and changes in expected cash Iflows on acquired loans, restructuring costs and discontinued operations 149 169 172 161 1591 Provisions for impairment of customer loans net of gains on derecognition and changes in expected cash flows on acquired loans (96) (123) (110) (312) (119) Impairments of other financial and non-financial assets (6) (30) (1) (57) 1 Share of profit/(loss) from associates and joint ventures 1 1 1 3 ■ Profit/(loss) before tax, restructuring costs and discontinued operations 48 17 62 (205) 38 Tax (8) (3) (1) (6) Profit attributable to non-controlling interests 5 1 0 17 2 iProfit/(loss) after tax and before restructuring costs, discontinued operations and net profit on disposal of non-core assets 45 15 55 (189) 34 Restructuring costs 5 (14) (8) (4) (11) Loss from disposal group held for sale / discontinued operations (11) (18) (131) (28) Net (loss)/gain on disposal of non-core assets (18) 41 (13) Profit/(loss) after tax 13 31 29 (337) (5) Bank of Cyprus KOINO ΚΥΠΡΙ 2237 Comparative information has been represented. See Note 4.2 of the Financial Report for the 9 September 2015, Comparative information. months ended 30 34#35Income Statement bridge for 9M2015 € mn Net interest income Net fee and commission income Net foreign exchange gains/(losses) and net gains/(losses) on other financial instruments Insurance income net of insurance claims Losses from revaluation and disposal of investment properties Per presentation Reclassification 644 Per financial statements 644 115 115 18 41 59 32 32 (36) (36) Other income 13 13 Total income Total expenses Profit before provisions and impairments, gains on derecognition and changes in expected I cash flows on acquired loans, restructuring costs and discontinued operations 786 827 (296) (27) (323) 490 504 Provisions for impairment of customer loans (592) (592) Gains on derecognition and changes in expected cash flows on acquired loans Impairments of other financial and non-financial assets Share of profit from associates Profit before tax, restructuring costs and discontinued operations Tax Loss attributable to non-controlling interests 263 263 (37) (37) 3 3 127 141 (18) (18) 6 6 Profit after tax and before restructuring costs, discontinued operations and net profit from disposal of non-core assets 115 129 Restructuring costs (27) 27 Net gains on disposal of non-core assets 23 (23) Loss from disposal group held for sale / discontinued operations, net of minority interest Profit after tax (38) (18) (56) 73 73 Bank of Cyprus KOINO ΚΥΠΡΙ 2237 35#36Cyprus Income Statement (€ mn) 9M2015 9M2014 3Q2015 2Q2015 1Q2015 4Q2014 3Q2014 Net interest income 603 704 192 200 211 216 216 Net fee & commission income 110 111 34 34 42 34 35 Insurance income net of insurance claims 31 33 11 8 12 10 9 Core income 744 848 237 242 Other income (expenses) 22 22 (10) 16 8 Total income 766 858 253 250 Staff costs (164) (165) (54) (55) Other operating expenses (106) (114) (38) (31) Total expenses (270) (279) (92) (86) ¡Profit before provisions and impairments 496 579 161 164 Provisions 1 (254) (373) (73) (102) Impairment of other financial assets and non financial assets (26) (33) (6) (19) 2 སྐྱེ་བ8ཕྱེ88 8 260 260 7 (14) 267 246 (55) (56) (55) (37) (54) (38) (92) (110) (93) 157 153 (79) (177) (95) (48) 1 Share of profit/(loss) from associates 3 2 0 1 2 3 (2) Profit/(loss) before tax 219 175 82 44 93 (65) 57 Tax (16) (4) 2 (8. 0 Profit/(loss) attributable to non-controlling interests 0 (0) 0 (0) 0 1 (0) Profit/(loss) after tax and before one off items 203 171 76 42 85 (64) 55 Bank of Cyprus 36 1. Provisions for impairment of customer loans and gains on derecognition and changes in expected cash flows on acquired loans KOINO WKYNРIW#37Cyprus: Income Statement by business line (€ mn) Consum er SME Banking Corporate Banking International Banking Wealth & Brokerage & RRD Other Total Cyprus Banking Asset Management Net interest income 187 52 52 46 5 221 40 603 Net fee & commission income 41 7 6 36 1 11 8 110 Other income (expenses) 4 0 0 5 3 0 41 53 Total income 232 59 58 87 9 232 89 766 Total expenses (90) (9) (8) (16) (4) (24) (119) (270) Profit/(loss) before provisions and I impairments 142 50 50 71 5 208 (30) 496 Provisions for impairment of customer loans net of gains on derecognition and changes in expected cash flows on 20 34 27 27 (1) (4) (340) 10 (254) acquired loans Impairment of other financial assets Share of profits from associates ---- | Profit/(loss) before tax (26) (26) 3 162 84 77 70 1 (132) (43) 219 Tax (19) (11) (10) (9) (1) 17 17 (16) ¡Profit/(loss) after tax and before one 143 73 67 61 0 (115) (26) 203 I off items L- Cost-to-Income ratio 39% 16% 14% 18% 42% 10% 34% Bank of Cyprus KOINO ΚΥΠΡΙ 37#38Summary Income Statement by Geography (€ mn) UK OTHER 9M2015 9M2014 9M2015 9M2014 Net interest income Net fee & commission income 23 26 35 65 4 3 9 17 Insurance income net of insurance claims . 1 2 Other income (expenses) 0 1 (6) 13 Total income 27 30 39 97 Staff costs Other operating expenses Total expenses (11) (9) (24) (29) (12) (9) (30) (45) (23) (18) (54) (74) Profit/(loss) before provisions and impairments 12 (15) 18 Provisions1 7 (28) (125) (131) Impairment of other financial assets and non financial assets (11) (5) Share of profit from associates I Profit/(loss) before tax Tax Profit attributable to non-controlling interests Profit/(loss) after tax and before one off items 11 (16) (151) (113) (1) (1) 0 (10) 15 16 10 (17) (136) (107) 1. Provisions for impairment of customer loans and gains on derecognition and changes in expected cash flows on acquired loans Bank of Cyprus KOINO WKYпPIW 38#39Risk Weighted Assets by Geography - Regulatory Capital Risk weighted assets by Geography (€ mn) Equity and Regulatory Capital (€ mn) 30.09.14 31.12.14 31.03.15 30.06.15 30.09.15 30.09.14 31.12.14 31.03.15 30.06.15 30.09.15 Cyprus 20.296 20.452 20.473 19.607 19.551 Shareholders' equity 3.728 3.465 3.502 3.506 3.518 Russia 1.203 706 813 708 30 United Kingdom 633 986 1.162 667 663 CET1 capital 3.512 3.191 3.201 3.205 3.2312 Romania 316 308 294 318 253 Tier I capital 3.512 3.191 3.201 3.205 3.231 Greece 367 217 181 180 173 Tier II capital 39 42 30 32 22 Other¹ 48 46 49 47 47 Total regulatory capital (Tier I + Tier Total RWA 22.863 22.715 22.972 21.527 20.717 II) 3.551 3.233 3.231 3.237 3.253 RWA intensity (%) 83% 85% 86% 85% 86% Risk weighted assets by type of risk (€ mn) 30.09.14 31.12.14 31.03.15 30.06.15 30.09.15 20.835 20.625 20.881 19.426 18.793 Credit risk Market risk 5 5 6 16 44 Operational risk 2.023 2.085 2.085 2.085 1.880 Total 22.863 22.715 22.972 21.527 20.717 Bank of Cyprus KOINO WKYNРIW 1 Other countries include Ukraine, Channel Islands and Netherlands 2 Includes independently verified profits for 9M2015 39#40Reconciliation of Group Equity to CET 1 (€ mn) Group Equity per financial statements Less Intangibles and other deductions Less: Deconsolidation of insurance and other entities 30.09.15 3.538 (16) (229) Less: Regulatory adjustments (Minority Interest, DTA and other items) (24) Less: Revaluation reserves and other unrealised items transferred to Tier II (38) CET 1 (transitional)1 3.231 Less Adjustments to fully loaded (mainly DTA) (108) CET 1 (fully loaded) 3.123 Risk Weighted Assets CET 1 ratio (fully loaded) CET 1 ratio (transitional)1 20.717 15,1% 15,6% 1 CET 1 ratio includes independently verified profits of 9M 2015 Bank of Cyprus 40 KOINO WKYNРIW 2235#41BOC- Main performance indicators 30 September 2015 Ratios ROAA** ROE ** Group 9M 2015 0,4% 2,8% Performance Net Interest Margin 3,85% Cost to income ratio Loans to deposits 90+ DPD (€mn)/ 90+ DPD ratio 38% 132% 11.998 (52,5%) 90+ DPD coverage 41% Asset Quality Capital Cost of risk** Provisions Gross Loans Transitional Common Equity Tier 1 capital (€ mn) CET1 ratio (transitional basis) (%) 2,1%* 21,6% 3,231 15,6% Total Equity Total Assets 14,5% Shareholder's Equity (€ mn) Intangible assets (€ mn) # shares Book Value per Tangible Book Value per (mn) share share 31/12/2013 2.663 131 4.684 0,57 0,54 31/03/2014 2.689 130 4.700 0,57 0,54 30/06/2014 2.748 135 4.756 0,58 0,55 30/09/2014 3.728 135 8.922 0,42 0,40 31/12/2014 3.465 127 8.922 0,39 0,37 31/03/2015 3.502 130 8.923 0,39 0,38 30/06/2015 3.506 128 8.923 0,39 0,38 30/09/2015 3.518 131 8.923 0,39 0,38 ** * Calculated as the provisions for impairment of customer loans, including provisions of discontinued operations, (in total €635 mn) net of gains on derecognition and changes in expected cash flows on acquired loans (totalling €263 mn) over average gross loans Annualised figures Bank of Cyprus KOINO ΚΥΠΡΙ 41#42Analysis of Deposits by Geography and by Type Deposits by geography 30 September 2015 (%) Total 16,97 ■Cyprus non-IBU Cyprus IBU ■ UK ■Russia & Other countries* ■Cyprus non IBU Cyprus IBU** 1,25 14,97 (€ bn) 14,07 13,80 1,30 1,02 13,33 13,17 13,61 13,63 13,61 ■ UK ■Russia 0,83 1,24 0,87 4,75 1,25 0,79 0,61 1,25 0,55 0,61 1,29 1,30 1,36 1,39 1,45 11% 4,05 3,79 3,59 3,46 3,47 3,57 3,21 3,40 25% 9,67 8,66 8,20 8,09 7,79 7,85 8,07 8,42 8,76 64% Jun-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Deposits by type of deposits Total Cyprus 89% 30 September 2015 (%) Time deposits Savings account Current and demand account Total Time deposits Savings accounts ■Current & demand accounts 16,97 14,97 (€ bn) 3,42 14,07 13,80 13,33 13,17 13,61 13,63 13,61 0.83 3,49 3,53 3,72 0,93 3,96 4,33 4,48 4,47 4,63 0,95 0.95 0.84 0.96 0,97 1.02 1.01 34% 12,72 10,55 59% 9,59 9,13 8,53 7,88 8,16 8,14 7,96 7% T Jun-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Other countries: Romania and Ukraine (until March 2014) Bank of Cyprus KOINO WKYNРIW 2235 ** IBU- Division servicing exclusively international activity companies registered in Cyprus and abroad and non-residents 42#43Analysis of Deposits by sector for Cyprus operations Deposits by sector as per CBC classification for Cyprus operations 30 September 2015 (%) Total (€ bn) ■Households Non financial corporations Other financial corporations General Governments Market Shares 12,71 11,99 12,16 ■General Governments Other financial corporations ■Non financial corporations 11,69 11,64 0,13 11,24 11,31 11,63 0,13 0,12 ■ Households 0,16 0,99 0,87 0,13 0.14 0,12 0,13 1,33 0,75 0,80 1,53 1,20 ■Total market shares 1,37 3,90 3,61 3,64 3,21 2,94 3,41 2,82 2,87 7,69 7,38 7,14 6,91 6,99 7,12 7,36 7,50 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 27,9% 17,6% 31,4% 27,3% 26,5% Bank of Cyprus KOINO ΚΥΠΡΙ 2235 43#44Gross loans by Geography and by Customer Type Gross loans by geography 30 September 2015 (%) Total 25,30 24,74 (€ bn) 24,09 23,93 22,86 23,77 ■Cyprus ■ UK ■Russia Other Countries* 0,80 1,17 1,30 1% .2% 0,70 5% 1,11 1,21 0.69 0,67 0,91 0,97 0,58 1,03 1,07 Other countries* 1.13 1,03 9.49 0.26 ■Russia ■ UK ■Cyprus 22,02 21,72 21,20 21,32 21,19 20,98 92% Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Gross loans by customer type Total (€ bn) 30 September 2015 (%) Corporate Retail Housing SME Retail Other 25,30 24,74 10% 23,77 24,09 23,93 22,86 2,52 ■Retail other 2,42 2,44 2,54 2,52 2,20 19% 4,67 4,61 4,41 4,43 4,39 4,35 50% Retail Housing 5,50 5,54 5,09 5,02 4,99 4,75 21% SMES 12,61 ■ Corporate 12,17 11,83 12,10 12,03 11,56 Jun-14 Sep-14 Dec-14 *Other countries: Greece, Romania and Ukraine (until March 2014) Mar-15 Jun-15 Sep-15 Bank of Cyprus 44 KOINO WKYNРIW 2235#45NPEs by Geography and by Customer Type NPEs by geography 30 September 2015 (%) ■Cyprus ■Russia UK Other Countries* Total 15,17 14,96 14,73 14,81 (€ bn) 0,56 0,58 0,57 0,47 14,22 0,64 ■Other countries* 0,52 0.11 0,65 0,39 ■Russia 0,57 0.11 0,10 0,26 0,26 0.08 ■ UK ■Cyprus 13,33 13,75 13,86 13,59 13,49 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 NPEs by customer type Total (€ bn) 2,7% 1,8% 0,6% 11 94,9 % 30 September 2015 (%) ■Corporate ■Retail Housing ■SME ■Retail Other 14,73 14,96 15,17 14,81 14,22 ■Retail Other 1,45 1,45 1,49 1,51 1,36 9,6% ■Retail Housing 1,66 1,82 1,93 1,95 1,98 ■SMES 3,64 3,53 3,57 13,9% 3,60 3,51 ■Corporate 51,8 % 24,7% 7,98 8,17 8,18 7,75 7,37 Sep-14 *Other countries: Greece and Romania Dec-14 Mar-15 Jun-15 Sep-15 Bank of Cyprus KOINO WKYNРIW 45#46Market Shares and Customer flows in Cyprus Market share evolution in Cyprus -Deposits Loans Cumulative Customer flows (€ mn) 300 0 -300 -600 -900 -1.200 -1.500 -1.800 -2.100 -2.400 -2.700 -3.000 31/03/13 30/04/13 31/05/13 30/06/13 31/07/13 31/08/13 30/09/13 31/10/13 30/11/13 31/12/13 31/01/14 28/02/14 31/03/14 30/04/14 31/05/14 30/06/14 31/07/14 31/08/14 30/09/14 31/10/14 30/11/14 31/12/14 31/01/15 28/02/15 31/03/15 30/04/15 31/05/15 30/06/15 31/07/15 31/08/15 30/09/15 31/10/15 Sep-13 Dec-13 Mar-14 903 446 450 386 283 65 -11 -411 -546 Total customer flows per quarter (€ mn) Jun-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 27,9% 27,5% 26,4% 38,1% 39,1% 40,0% 25,5% 39,5% 24,9% 40,5% 24,8% 40,8% 24,6% 41,1% 24,8% 38,8% 25,0% 37,2% 25,5% 37,3% 25,3% 37,7% 25,2% 38,0% 25,4% 38,6% 25,7% 38,5% 26,0% 38,9% 26,1% 39,2% 26,5% 39,3% Jul-15 Aug-15 Sep-15 -2.227 453 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15* • Around 2% increase in the Bank's market share in deposits since low of 24,6% in November 2014. The Bank's market share in loans has been hovering around 39% Positive net customer flows** per quarter since 4Q2014 despite full abolition of capital controls in April 2015 and the recent adverse economic developments developments in Greece, underlying the decoupling of the Cypriot banking system and economy. Net customer flows** of €2,5 bn post 3Q2014 indicate a return of confidence by customers towards the Bank Bank of Cyprus Customer flows are defined as the difference between changes in the stock of customer deposits and changes in the stock of gross customer loans, taking into account, among others, provisions, write offs, accrued interest, fair value adjustments and foreign exchange fluctuations. Up to 23 November 2015 KOINO ΚΥΠΡΙ 46#47UK Operations UK Loans (€ bn) ex-Laiki UK loans 1,46 1,38 1,28 1,19 1,17 1,11 1,13 1,14 1,03 0,91 0,83 0,72 0,65 0,56 0,45 0,40 0,30 0,83 0,74 0,73 0,72 0,74 0,77 0,81 0,91 1,03 1,13 1,14 Dec Jun Sep Dec 2012 2013 2013 2013 Mar Jun Sep Dec Mar Jun Sep 2014 2014 2014 2014 2015 2015 2015 UK Deposits (€ bn) 1,45 1,39 1,36 1,29 1,28 1,29 1,30 1,22 1,24 1,25 1,25 Loans by sector Consumer Credit Housing 2% 2% SMEs 22% Corporate 74% Dec Jun Sept Dec. Mar June Sept Dec Mar Jun Sept 2012 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 Bank of Cyprus 47 KOINO WKYNРIW 2235#48Asset Quality (€ mn) Sept-15 Jun-15 Mar-15 Dec-14 Sep-14 A. Gross Loans after Fair value on Initial recognition 21.597 22.575 22.540 22.206 23.136 Fair value on Initial recognition 1.266 1.351 1.545 1.566 1.606 B. Gross Loans 22.863 23.926 24.085 23.772 24.742 B1. Loans with no arrears 9.925 10.178 10.038 10.065 10.298 B2. Loans with arrears but not impaired 3.611 4.105 4.627 4.413 5.222 Up to 30 DPD 585 668 662 562 750 31-90 DPD 355 435 596 492 716 91-180 DPD 200 227 344 440 718 + + 181-365 DPD 374 529 758 926 1.058 + Over 1 year DPD 2.097 2.246 2.267 1.993 1.980 + B3. Impaired Loans 9.327 9.644 9.420 9.294 9.221 With no arrears 848 969 1.006 1.153 1.145 Up to 30 DPD 66 91 68 149 66 31-90 DPD 91-180 DPD 60 121 275 142 168 152 167 181 143 233 181-365 DPD 464 489 445 685 828 Over 1 year DPD 7.737 7.807 7.445 7.022 6.781 (90+ DPD)* 11.998 12.646 12.789 12.653 12.977 90+ DPD ratio (90 + DPD / Gross Loans) 52,5% 52,9% 53,1% 53,2% 52,5% Accumulated provisions 4.933 5.381 5.354 5.140 4.948 Gross loans provision coverage 21,6% 22,5% 22,2% 21,6% 20,0% 90+ DPD provision coverage 41,1% 42,5% 41,9% 40,6% 38,1% Bank of Cyprus KOINO ΚΥΠΡΙ 48 * Loans in arrears for more than 90 days (90+ DPD) are defined as loans with a specific provision and loans past-due for more than 90 days, but not impaired.#4990+ DPD by Geography 90+ DPD by Geography (€ bn) ■Cyprus Russia ■ UK Other countries* 12,98 12,76 12,79 12,59 12,65 12,65 0,57 0,55 0,89 0,52 0,26 0,58 0,47 12,00 0,11 0,28 0,55 0,09 0,09 0,25 0,51 0,60 0,61 0,39 0,44 0,51 0,260 0,08 11,60 11,18 11,28 11,47 11,53 11,48 11,27 49% 90+ DPD ratios by Geography ■Cyprus Russia ■ UK Other countries* 75% 51% 39% 24% 34% 21% 65% 53% 46% 23% %08 %08 54% 52% 10% 84% 54% 56% 11% 82% 54% 59% %8 83% 54% 100% Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Mar-14 Jun-14 Sep-14 Dec-14 Other countries: Romania, Ukraine (until March 2014) and Greece Mar-15 7% Jun-15 Sep-15 Bank of Cyprus KOINO WKYNРIW 49#50% of total 19% Gross loans by business line (€ bn) ■30.09.14 ■31.12.14 31.03.15 ■30.06.15 30.09.15 4,87 4,34 4,53 Analysis of Loans and 90+ DPD ratios by Business Line* Corporate SMES 8% 4,59 4,38 2,63 2,30 2,20 2,14 1,83 3,90 3,85 3,85 3,80 3,75 90+ DPD ratios by business line 33% 32% 29% 27% 22% Corporate 30.09.14 ■31.12.14 ■31.03.15 30.06.15 30.09.15 28% 24% 27% SMES 26% 22% 17% 16% 16% 15% 14% 16% Housing Consumer Credit 32% 31% 31% 30% 25% 7% 21% 1,90 1,75 1,83 1,80 1,48 5,55 5,33 5,37 5,20 4,87 68% 69% 68% 70% 71% *As part of the restructuring of the Group, management is currently monitoring the loan portfolio of the Group using new business line definitions. An important component of the Group's new operational structure is the establishment of the RRD for the purposes of centralising and streamlining the management of its delinquent loans. Housing Consumer Credit RRD-Mid and Large Corporates RRD-SMEs RRD-Mid and Large Corporates 82% 81% 81% 80% 79% RRD-Recoveries 6% 1,48 1,40 1,39 1,38 1,41 23% 4,41 4,78 4,91 5,02 5,13 RRD-SMES RRD Recoveries 100% 100% Bank of Cyprus 50 KOINO ΚΥΠΡΙ 100% 100% 100%#51■30.09.14 total Gross loans by economic activity (€ bn) % of ■ 30.09.14 ■ 31.12.14 ■31.03.15 11% 4% ■30.06.15 30.09.15 7% Analysis of Loans and 90+ DPD ratios by Economic Activity 2,70 2,47 2,48 2,50 2,38 18% 15% 0,95 0,89 0,91 0,92 0,85 1,61 1,50 1,57 1,64 1,62 4,09 3,96 4,04 4,19 4,14 3,59 3,12 90+ DPD ratios by economic activity ■31.12.14 Trade Manufacturing Hotels & Restaurants Construction Real estate Private 47% 50% 48% 48% 49% 55% 54% 54% 54% Trade ■31.03.15 ■ 30.06.15 30.09.15 54% %09 59% 62% 57% %69 78% 79% 77% %08 3,17 32% 8% 5% 3,20 3,38 7,96 7,85 7,92 7,86 7,41 2,32 1,86 1,89 2,07 1,84 1,53 2,12 2,09 1,55 1,24 Individuals Professional & other services Other sectors 79% 51% 48% 48% 48% 48% 37% 38% 38% 38% 36% 58% 54% 55% 57% 62% %09 67% Professional Manufacturing Hotels & Restaurants Construction Real estate Private Individuals & other services Other sectors Bank of Cyprus KOINO ΚΥΠΡΙ 2235 51 67% 64% 57%#52Credit Risk — 90+ DPD by customer type Group 90+ DPD loans by customer type (€ bn) ■ Corporate ■SMES ■Retail other ■Retail housing 13,0 12,8 13,0 12,6 12,7 12,8 12,0 12,6 1,3 1,3 1,3 1,2 1,2 1,2 1,2 1,1 1,2 1,2 1,1 1,1 1,2 1,3 1,2 1,1 3,3 3,4 3,5 3,1 3,1 3,1 3,3 3,0 7,2 6,9 7,0 7,1 7,2 7,2 7,1 6,8 31.12.13 31.03.14 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 30.09.15 Group 90+ DPD have reduced to €12,0 bn Adoption of foreclosure legislation and insolvency framework are significant steps in enabling the Bank to tackle its delinquent loans in Cyprus and to improve asset quality. Bank of Cyprus KOINO WKYNРIW 52#5312-2008 90+ DPD and Quarterly Change of 90+ DPD 90+ DPD (€bn) and Quarterly change of 90+ DPD (€ mn) Quarterly change of 90+ DPD (€ mn) -90+ DPD (€ bn) 90+ DPD formation 11,0 13,0 13,0 12,8 12,613,0 12,7 12,8 12,6 1,3 1,6 2,0 2,3 2,2 7,7 6,5 5,0 5,1 5,1 4,4 3,5 3,6 3,8 4,0 2,5 2,9 03-2009 06-2009 09-2009 12-2009 03-2010 06-2010 09-2010 12-2010 03-2011 06-2011 09-2011 12-2011 03-2012 06-2012/ 09-2012 12-2012 06-2013* 09-2013 12-2013 03-2014 06-2014 09-2014 12-2014 03-2015 06-2015 09-2015 FY 2009 €945 mn FY2010 €1.329 mn FY2011 €1.399 mn FY2012 €2.723 mn FY2013 €5.311 mn FY2014 -€350 m n -85 321 380 329 265 410 558 96 232 156 402 609 100 64 1.319 1.240 3.319 1.972 20 -247 -164 386 -325 136 -143 -649 * Information for 1Q2013 and 2Q2013 is not available as it has not been possible to publish the financial results for the three months ended 31 March 2013. Bank of Cyprus 53 KOINO WKYNРIW 12,0#5490+ DPD in Cyprus and GDP growth Correlation between quarterly change of 90+ DPD (%) and GDP growth (%) Quarterly change of 90+ DPD (%) 2,1% 2,4% -GDP growth (%) y/y 1,2% 0,6% 0,1% 2,2% 6,6% 03-2010 06-2010 09-2010 12-2010 03-2011 27,1% 26,2% * Information for 1Q2013 and 2Q2013 is not available as it has not been possible to publish the financial results for the three months ended 31 March 2013 Bank of Cyprus 54 KOINO WKYNРIW 2235 2% 1,2% 3,1% 1,6% 6,4% 06-2011 09-2011 12-2011 12,0% -0.4% -0,8% -1,2% 03-2012 06-2012 09-2012 12-2012 09-2013 12-2013 03-2014 06-2014 09-2014 12-2014 03-2015 06-2015 2,9% -4,7% 0,9% 0,5% -1,3% -1,1% -0,5% -2,2% -1,8% ,3% -5,5% -0,2% -7,4% ,7% -3,2% 20,4% -1,8% -1,8% 19,2% -,4% -2,3% 18,7% -2,1% 41,7% 09-2015#55Rescheduled Loans for the Cyprus operations Rescheduled Loans by customer type (€ bn) Rescheduled Loans (€ bn) ■Retail housing ■Retail consumer ■SMES Corporate 8,4 8,2 7,4 1,7 1,7 5,7 1,5 0,6 8.394 0,6 0,5 1,3 1,8 1,7 1,5 0,4 1,1 3,9 4,3 4,2 2,9 31.12.14 31.03.15 30.06.15 30.09.15 885 -453 -512 8.209 -105 Rescheduled Rescheduling Loans during 3Q2015 30.06.2015 Already classified rescheduled Loans no longer classified rescheduled Other adjustment Rescheduled Loans 30.09.2015 Rescheduled loans % gross loans¹ by customer type 31.12.14 31.03.15 ■ 30.06.15 ■30.09.15 43%42% 40%40% 38% 39%38% 34% 34% 29% 29% 24% 26%26% 22% 17% • Taking into account only the loans restructured post 31 March 2014, for the Cyprus operations the percentage of rescheduled loans with no arrears increases to 67% Higher rescheduling activity observed in corporate (42% at 30 September 2015 compared to 43% at 30 June 2015) followed by Retail housing rescheduling activity of 40% and SMEs rescheduling of 38% Corporate SMES Retail housing Retail Consumer 1 Before fair value adjustment on initial recognition relating to loans acquired from Laiki Bank (difference between the outstanding contractual amount and the fair value of loans acquired) amounting to €1,266 mn for gross loans and to €548 mn for rescheduled loans (compared to €1,351 mn and €611 mn respectively at 30 June 2015), including loans of discontinued operations/disposal group held for sale. Bank of Cyprus 55 KOINO WKYNРIW 2235#56Credit Risk - Analysis of problem loans Analysis of problem loans Cyprus operations (€ bn) (Sept-15) - 0,4 13,5 1,1 0,7 0,1 11,3 10,4 0,1 0,8 (0,1) €2,2 bn with arrears >90+DPD reclassification adj Impaired -no other IFRS and Total 90+ DPD with forbearance arrears measure 90+ DPD re-forborne within 2 years forborne >30+ Contagion effect Other DPD reclassification adjustments NPES The Bank is taking targeted action to address the €2,2 bn of NPE exposures that do not present arrears over 90 days The Bank's main focus for addressing the problem loans is the active management of the €10,4 bn of loans with arrears over 90+DPD Bank of Cyprus KOINO WKYNРIW 2235 56 * Loans in arrears for more than 90 days (90+ DPD) are defined as loans with a specific provision and loans past-due for more than 90 days, but not impaired.#57Credit Risk - Collateral values Valuation of collateral - A Conservative approach for prudent calculation of provisions The valuation is a combination of: New valuations, from independent valuers for (i) New loans and a 2nd valuation for amounts > €3mn, (ii) performing accounts with exposures over €3 mn every 3 years (iii) Accounts restructured with LTV > 50%, 1 year for commercial, 3 years for residential properties Continuous effort to revalue our mortgaged properties following the collateral cleansing project. As at 30/09/2015, 35% of valuations are current compared to 30% in December 2014 Key highlights of provisioning methodology Assumptions and Key drivers: Type of Collateral as at 30/09/2015 Retail Business Corporate RRD Total Cash 3% 4% 3% 1% 3% Bank Guarantees 2% 1% 4% 1% 2% 0% Mortgages 87% 93% 85% 94% 89% -10% Contract of sales 6% 1% 1% 0% 3% Fixed/Floating -20% 0% 0% 0% 1% 0% charge -30% Shares/Debentures 0% 0% 3% 1% 1% -40% Vehicles 1% 0% 0% 0% 1% -50% Other 1% 1% 4% 0% 2% Total 100% 100% 100% 100% 100% Older valuations are adjusted/indexed to market values based on RICS's property price index to reflect current market conditions The timing of recovery from mortgages has been estimated to be 3 years with the exception for specific cases where a different period has been used based on specific facts and circumstances. Back-testing of provisioning methodology: 5.000 properties were used in our sample which were re-valued in 2015 (actual valuation). Comparison of the actual valuation versus theoretical index value (based on RICS). Average difference of 2,1% (slightly higher drop assumed in RICS) Adjustment needed for old valuations to bring them to current market values based on RICS property price index 1006 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 είδε 1Q14 3Q14 1Q15 Bank of Cyprus 57 KOINO WKYNРIW 2235#5830% 20% 10% 0% -10% -20% -30% -40% 1Q2002 3Q2001 3Q 2002 1Q 2001 прих Macroeconomic overview Construction growth % qoq Indicators of private consumption (annual percentage change) 1Q 2003 3Q 2003 1Q 2004 Construction growth % qoq 40% 20% 1Q2005 3Q 2004 3Q 2005 1Q2006 1Q 2009 3Q 2006 3Q 2008 1Q 2007 3Q2007 1Q2008 1Q2010 3Q 2009 Accumulative tourist arrivals per year in 000's 3Q2010 1Q2012 3Q2011 1Q2011 له 3Q2012 1Q2013 3Q2013 1Q2014 3Q2014 1Q2015 2440 2240 2040 1840 1640 1440 1240 1040 840 640 440 240 40 Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec 2007 2013 2008 2012 2009 2014 2010 2011 2015 * 2015 tourist revenue projections based on BOC estimates SOURCE: Statistical Service of Republic of Cyprus, European Commission, Bloomberg, IMF and company reports 10% 12% -20% -40% -60% 0% Jul 2011 Jan 2012 Jan 2011 Jul 2012 Mar 2012 Mar 2011 May 2011 Nov 2011 Sep 2011 Sep 2012 May 2012 Nov 2012 Jan 2013 Jul 2013 Mar 2013 Nov 2013 May 2013 Sep 2013 Jan 2014 Mar 2014 May 2014 Retail Sales Volume Index -Total Vehicle Registrations Revenues from Tourism as % of GDP 9,8% Jul 2014 Sep 2014 11,5% 11,6% 11,3% 11,4% 8,8% 8,9% 8% 2009 2010 2011 2012 2013 2014 2015* Tourism as a % of GDP Bank of Cyprus KOINO ΚΥΠΡΙ 58 Nov 2014 Jan 2015 Jul 2015 Mar 2015 May 2015#59Macroeconomic overview Total Government revenue vs expenditure (% of GDP) ■Total revenue ■Total expenditure Prudent fiscal policy delivers strong results (% of GDP) -0,2% -0,1% -0,9% 42,8% 42,5% 42,1% 41,4% 40,4% 40,6% 40,5% 39,6% 39,1% -4,8% -4,9% 39,0% -5,8% -5,8% 37,7% 37,0% 36,3% 36,5% -4,8% -5,8% -5,8% -5,9% -7,4% -7,7% Unemployment will ease gradually 2010 2011 2012 2013 2014 2015f 2016f 2010 2011 2012 2013 2014 2015f 2016f 11,9% 0,5% 7,9% 15,9% 16,1% 15,6% 2.500 14,6% 13,3% 2.000 1,2% 1,6% 0,2% -0,1% 1.500 -4,2% 1.000 -5,2% 500 2011 2012 2013 2014 2015* 2016* 2017* 0 Actual fiscal balance & current forecast Original Programme fiscal target Maturity profile of Cyprus Government Debt (€ mn) 3.000 Other Loans ■Domestic Bonds/T-bills ■IMF-ESM loans EMTN Securities Unemployment rate (% of labour force) -Employment growth % Figures for 2015, 2016 and 2017 are based on European Commission report 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 SOURCE: Statistical Service of Republic of Cyprus, European Commission, Bloomberg, IMF and company reports, Eurostat 2029 2030 2031 2032 2033 2034 2035+ Bank of Cyprus 59 KOINO WKYпPIW 1237 -2,8%#60Non-Performing Loans definition Non-Performing Exposures (NPEs) as per the EBA definition: In 2014 the European Banking Authority (EBA) published its reporting standards on forbearance and non-performing exposures (NPEs). According to the EBA standards, a loan is considered a non- performing exposure if: - (i) the debtor 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, for example in case of a write off, a legal action against the borrower, or bankruptcy - (ii) the exposures are impaired i.e. in cases where there is a specific provision, or - (iii) there are material exposures which are more than 90 days past due, or - (iv) there are performing forborne exposures under probation for which additional forbearance measures are extended, or - (v) there are performing forborne exposures under probation that present more than 30 days past due within the probation period. -90+DPD: Loans in arrears for more than 90 days (90+ DPD) are defined as loans with a specific provision and loans past-due for more than 90 days, but not impaired. Bank of Cyprus 60 KOINO WKYNРIW 2235#61Disclaimer Certain statements, beliefs and opinions in this presentation are forward-looking. Such statements can be generally identified by the use of terms such as “believes", "expects", "may", "will", “should”, “would”, “could”, “plans", "anticipates" and comparable terms and the negatives of such terms. By their nature, forward-looking statements involve risks and uncertainties and assumptions about the Group that could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. We have based these forward- looking statements on our current expectations and projections about future events. Any statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Readers are cautioned not to place undue reliance on forward-looking statements, which are based on facts known to and/ or assumptions made by the Group only as of the date of this presentation. We assume no obligation to update such forward-looking statements or to update the reasons that actual results could differ materially from those anticipated in such forward-looking statements. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any security in any jurisdiction in the United States, to United States Domiciles or otherwise. The delivery of this presentation shall under no circumstances imply that there has been no change in the affairs of the Group or that the information set forth herein is complete or correct as of any date. This presentation shall not be used in connection with any investment decision regarding any of our securities, which should only be made based on expressly authorised materials from us identified as such, nor in connection with any decision whether or how to vote on any matter submitted to our stockholders. The securities issued by Bank of Cyprus Public Company Ltd have not been, and will not be, registered under the US Securities Act of 1933 ("the Securities Act"), or under the applicable securities laws of Canada, Australia or Japan. Bank of Cyprus 61 KOINO WKYNРIW 2235