#1Bank of Cyprus Group Group Financial Results for the six months ended 30 June 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 26 August 2015 Bank of Cyprus 1 KOINO WKYNPIW#21H2015 Group Financial Results - Key Highlights Improving funding structure; Loans to deposits ratio at 136% (138% at 31 March 2015) and customer deposits accounting for 54% of total assets (51% at 31 March 2015) Emergency Liquidity Assistance (ELA) reduced by €1 bn during 2Q2015 to €5,9 bn and by further €500 mn post quarter-end to a current level of €5,4 bn; €6 bn ELA reduction since peak Common Equity Tier 1 capital ratio (transitional basis) increased by 100 basis points to 14,9% (qoq) due to reduced risk weighted assets (RWAs) and organic capital generation 90+ DPD and NPEs were reduced by €143 mn to €12,6 bn (qoq) and by €366 mn to €14,8 bn (qoq) respectively; 90+ DPD ratio at 53% and 90+ DPD provisioning coverage improved to 43% Profit after tax at €60 mn for 1H2015; Profit before provisions and impairments at €169 mn and Profit after tax at €31 mn for 2Q2015; Post quarter-end, the Bank agreed to sell the majority of its Russian operations; release of RWAs by approx. €600 mn and improvement of CET1 ratio by approx. 33 basis points With a deleveraged and de-risked balance sheet, improving funding structure and stabilising asset quality, the Bank is focusing on core business and profitability Bank of Cyprus KOINO WKYNPIW 2#3Overview Income Statement Review Balance Sheet Review KPIs - Key Takeaways Additional Information Bank of Cyprus 3 KOINO WKYNPIW#4BOC Overview Strengthened capital position Adjusting for the disposal of the majority of the Russian operations ■CET1 ratio (transitional basis) | 15,4% 14,9% 15,2% 14,0% 13,9% 10,5% 10,4% 11,3%- Capital increase of €1 bn Significant Balance Sheet deleveraging Adjusting for the disposal I of the majority of the Russian operations Total assets (bn) -25% I 33,0 31,4 30,3 29,4 28,6 27,5 26,8 26,7 25,4 24,7 -1,9% proforma Dec Jun 2012 2013 Dec 2013 Jun 2014 Sep 2014 Dec Mar 2014 2015 Jun 2015* proforma Jun Jun Sep Dec Mar Jun Sep Dec Mar Jun Jun 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 ELA funding reduced by €6,0 bn since peak ELA funding (bn) ECB funding ( bn) 90+ DPD formation slowed down sharply Adjusting for the disposal of the majority of the Russian operations 5.311 ■Change in 90+ DPD ( mn) 11,4 11,1 11,2 11,0 10,9 10,2 1,3 1,4 1,4 2.723 1,4 8,6 8,3 7,7 1.329 1.399 11,4 945 11,1 0,9 0,9 136 9,9 0,8 6,4 9,6 9,5 5,9 8,8 0,5 €6,0 bn reduction of ELA since peak 7,7 -350 -143 7,4 0,5 I -665 6,9 5,9 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 1Q2015 2Q2015 proforma 5,4 2Q2015 Apr 2013 Jun 2013 Sep Dec Mar Jun Sep Dec 2013 2013 2014 2014 2014 2014 2015 Mar Jun 26 Aug 2015 2015 * CET 1 ratio includes independently verified profits for 1H2015 Bank of Cyprus KOINO WKYNPIW 4#507-2010 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 SOURCE: Statistical Service of Republic of Cyprus, European Commission, Bloomberg, IMF and company reports 05-2014 07-2014 Macroeconomic overview GDP growth expected to be positive from 2015 faster recovery than other peripheral countries (8,7%) Real GDP growth - Actual Current projections (EC) Initial Projections (EC) GDP Growth (yoy) 2010 2011 2012 2013 2014 2015f 2016f I 1,4% 1,6% 0,3% 0,4% (2,4%) (2,3%) (5,4%) (3,4%) (3,9%) Improved rating and credit outlook as demonstrated by benchmark sovereign bond issue Yield 16% 14% 12% 10% 8% 6% 4% 2% 2020 Cyprus government bond Continued improvement . According to the flash estimate published on 14 August 2015, real GDP in 2Q2015 increased by 0,9% over the corresponding quarter of 2014, on a seasonally adjusted basis. This was the second consecutive quarterly increase after fourteen quarters of continuous decline. Yields of Cyprus Government bonds have been stable despite the turbulence in Greece, underlying the decoupling of Cypriot economy and banking system 09-2014 11-2014 01-2015 03-2015 05-2015 07-2015 Bank of Cyprus 5 KOINO WKYNPIW 2Q2011 1,2% 3Q2011 -0,4% 4Q2011 -0,8% 1Q2012 -1,2% 2Q2012 -2,4% 3Q2012 -2,3% 4Q2012 -3,7% 1Q2013 -5,3% 2Q2013 -6,0% 3Q2013 -5,5% 4Q2013 -4,7% 1Q2014 -3,2% 2Q2014 -1,8% 3Q2014 -2,1% 4Q2014 -1,8% 1Q2015 0,2% 2Q2015 ◆ 0,9%#6Macroeconomic overview Tourist Arrivals and Receipts: annual % changes 25% 14,4% Arrivals Receipts 20% 15% 10,1% 8,7% 8,0% 10% 6,5% 5% 3,8% 3,2% 0% 1,5% 1,5% -5% -10% -1,0% -15% -2,6% 2010 2011 2012 2013 -2,8% 2014 2015* ytd Unemployment will ease gradually 15,9% 16,2% 15,8% 14,8% 11,9% 0,5% 7,9% 0,2% 1,3% -1,8% -4,2% -5,2% 2011 2012 2013 2014 2015** 2016** Unemployment rate (% of labour force) Employment growth % Figures for 2015 arrivals are up to July 2015 and receipts are up to May 2015 ** Figures for 2015 and 2016 are based on European Commission report SOURCE: Central Bank of Cyprus, Statistical Service of Republic of Cyprus, European Commission, IMF and company reports. 1Q2007 2Q2007 3Q2007 4Q2007 1Q2008 2Q2008 3Q2008 Evolution of Residential Property Price Index (RPPI) (yoy % change) 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 Residential Property Price Index 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 • Tourist arrivals for January to July 2015 reached 1,5 mn, recording an increase of 6,5% compared to similar period the year before, due to increased arrivals from UK and other northern European countries compensating for lower arrivals from Russia. During 1Q2015, the RPPI recorded an annual decrease of 7%. RPPI declined by 43% since its peak in 1Q2008 Unemployment rate projections for 2015 expected to have a small decrease to 15,8% and is expected to ease gradually. Bank of Cyprus 6 KOINO WKYNPIW 4Q2014 1Q2015 -43% since 1Q2008#7Overview Income Statement Review Balance Sheet Review KPIs - Key Takeaways Additional Information Bank of Cyprus KOINO WKYNPIW 7#8Income Statement Review 1H2015 1H20143 yoy % 2Q2015 1Q2015 qoq % --- Net interest income Other income Total income Total expenses Profit before provisions and impairments¹ Provisions for impairment of customer loans -14% 214 225 -5% 439 514 94 115 -19% 47 47 533 629 -15% 261 272 -4% (194) (208) -7% (92) (102) -10% 339 421 -19% 169 170 (457) (289) 58% (309) (148) 109% Gains on derecognition and changes in expected cash flows on acquired loans 230 11 187 43 335% Impairments of other financial and non financial assets (31) (34) -8% (30) (1) Share of profit from associates. 3 -16% ■ Profit before tax, restructuring costs and discontinued operations 84 113 -26% 18 66 -72% Tax (11) 132% (9) -69% Loss attributable to non-controlling interests (0) (0) (0) (0) Profit after tax from continuing operations² 73 108 -32% 16 57 -72% Restructuring costs (21) (21) 3% (14) (7) 61% Loss from disposal group held for sale/discontinued operations (33) (66) -51% (12) (21) -43% 41 60 -32% 41 Net gain on disposal of non-core assets Profit after tax 60 81 -26% 31 29 11% Net interest margin 3,88% 4,07% 3,79% 3,94% Cost-to-Income ratio 36% 33% 35% 38% 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 1H2015 is not comparable to the 1H2014 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. Bank of Cyprus KOINO WKYNPIW 8#9Net Interest Income and Net Interest Margin Net Interest Income (€ mn) and Net Interest Margin (bps) Interest income from Laiki Recapitalisation bond Net interest income (other) NIM FY2014: 394 423 390 1H2015: 388 394 382 381 379 264 250 232 225 225 44 43 26 26 25 214 22 207 220 206 199 200 192 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 Evolution of Yield of Loans, Cost of Deposits and Customer Spread in Cyprus operations* ■1Q2015 2Q2015 1H2015: 5,42% 2Q2015 5,73% 1H2015: 4,13% 5,11% 1H2015: 1,29% 4,34% 3,92% 1,39% 1,19% Yield on Loans Cost of Deposits Customer spread • 2Q2015 Group Net Interest Income (NII) at 214 mn compared to 225 mn for 1Q2015, reflecting the reduction in lending rates in March 2015 and the partial repayment of a bond by the Republic of Cyprus in June 2015; Group Net Interest Margin (NIM) at 3,79% for 2Q2015, compared to 3,94% for 1Q2015 NII and NIM continue to reflect market conditions in Cyprus and the composition of the Group's funding, with Eurosystem funding accounting for 25% of assets at 30 June 2015. Going forward, the Nll will be negatively affected by the early repayment of a bond by the Republic of Cyprus in June 2015, primarily driven by the upfront recognition of the accounting gain • Customer spread in Cyprus decreased to 3,92% in 2Q2015 compared to 4,34% in 1Q2015 reflecting the impact of the reduction in lending and deposit rates in March 2015. * Includes all currencies Bank of Cyprus KOINO WKYNPIW 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) 14% 12% 61 55 ¡¡ 55 42 50 37 4 3 13 13 2 -1 -3 i37 14% 13% 16% 14% 32 56 47 47 47 i I 1551 451 37 10 2 10 48 43 i 36 12 6 3 121 9 % Net fee and commission income % Total income X Non interest income (mn) 1 -13 -16 Recurring non- interest income 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 Non-interest income remained at the same level for 2Q2015 at 47 mn • Net fee and commission income for 2Q2015 at 36 mn (about 14% of total income); lower compared to 1Q2015 due to seasonality relating to annual charges for banking services provided. • 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; 2Q2015 Insurance income was lower mainly due to revaluation effect of investments Average recurring income from fee and commission income and insurance income of about 50 mn for the last six quarters Bank of Cyprus KOINO WKYNPIW 10#11Total expenses Total expenses (€ mn) Other operating expenses Staff costs 114 105 103 103 102 92 92 56 47 44 44 43 33 58 59 59 58 59 59 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 Group Cost to Income Ratio ■Group cost to income ratio 38% 36% 36% 35% 34% 33% • • • Total expenses for 2Q2015 decreased to 92 mn from 102 mn for 1Q2015, driven by the reduction of operating expenses due to lower advertising, consultancy and professional expenses. Operating expenses per quarter, excluding 2Q2015 and 4Q2014 when there were one-off items, are around 45 mn. Staff costs for 2Q2015 at 59 mn broadly at the same level as for the previous quarters The cost-to-income ratio stood at 36% for 1H2015, compared to 38% for 1Q2015 1Q2014 1H2014 9M2014 FY2014 1Q2015 1H2015 Bank of Cyprus KOINO WKYNPIW 11#12Group Income Statement Highlights Group Income Statement Highlights (€ mn) 205 215 161 167 170 169 -111 -105 -122 -122 -156 ■1Q2014 ■2Q2014 ■ 3Q2014 ■4Q2014 ■1Q2015 ■ 2Q2015 83 43 57 25 16 31 -164 50 50 -5 29 31 -276 -337 Profit before impairments* restructuring costs and discontinued operations Provisions for impairment of customer loans and gains on derecognition and changes in expected cash flows on acquired loans Profit/(loss) after tax from continuing operations** Profit/(loss) after tax • • • Profit before impairments*, restructuring costs and discontinued operations for 2Q2015 at 169 mn, compared to 170 mn for 1Q2015 Provisions for impairment of customer loans and gains on derecognition and changes in expected cash flows on acquired loans for 2Q2015 at 122 mn, compared to 105 mn for 1Q2015 Profit after tax from continuing operations for 2Q2015 at 16 mn, compared to a profit for 1Q2015 at 57 mn • Profit after tax for 2Q2015 at 31 mn, compared to a profit of 29 mn for 1Q2015 Profit before provisions and impairments, gains on derecognition and changes on expected cash flows on acquired loans, restructuring costs and discontinued operations. Profit/(loss) after tax and before restructuring costs, discontinued operations and net profit on disposal of non-core assets Bank of Cyprus KOINO WKYMPιW 12#13Income Statement Highlights - Group vs Cyprus 1H2015 Cyprus Vs Group performance (€ mn) 93% 96% 513 533 439 411 20 28 92% 99% 173% 335 339 % % contribution of Cyprus operations ■Cyprus operations 127 73 ■Rest of operations -178 -194 20 20 4 ■Group -16 Net interest income Total income Total expenses Profit before provisions and impairments* restructuring costs and discontinued operations -54 Profit/(loss) after tax from continuing operations** Profit before provisions and impairments* for the Cyprus operations for 1H2015 at 335 mn, compared to a Group total of 339 mn for the same period • Profit after tax from continuing operations** for the Cyprus operations for 1H2015 at compared to a Group profit of 73 mn for the same period 127 mn, Profit before provisions and impairments, gains on derecognition and changes on expected cash flows on acquired loans, restructuring costs and discontinued operations. Profit/(loss) after tax and before restructuring costs, discontinued operations and net profit on disposal of non-core assets Bank of Cyprus KOINO WKYMPιW 13#14Overview Income Statement Review Balance Sheet Review KPIs - Key Takeaways Additional Information Bank of Cyprus KOINO WKYMPιW 14#15Balance Sheet* Deleverage - Shrinking to Strength Change € mn Jun 2013 Dec Mar Jun Sep Dec Mar 2013 2014 2014 2014 2014 2015 Jun 2015 Since Jun 2013 Cash & bank 3.012 2.530 2.105 1.973 2.417 2.908 2.748 2.558 -454 placements Investments 3.413 3.433 3.475 3.538 2.578 2.541 2.401 1.631 -1.782 Net loans reduction driven by disposal of Net Loans 23.769 21.764 21.234 20.063 19.794 18.632 18.731 18.545 -5.224 Other assets Total assets 2.762 32.956 2.622 2.564 2.984 Customer deposits 30.349 29.378 28.558 16.970 14.971 14.066 13.803 2.694 2.708 27.483 26.789 26.672 2.792 2.648 25.382 -114 -7.574 13.330 13.169 13.611 13.629 -3.341 non-core assets and the ongoing deleveraging Deposit base gradually stabilising ECB funding - 1.400 1.400 1.400 920 880 800 500 500 ELA 11.107 9.556 9.506 8.785 7.684 7.404 6.900 5.903 -5.204 Overall 6,0 bn ELA reduction from peak Interbank funding 983 790 753 802 707 772 808 Other liabilities 976 895 894 954 1.057 Total equity 2.920 2.737 2.759 2.814 3.785 3.481 1.083 1.045 3.508 805 1.026 -178 50 3.519 599 Total liab. & equity 32.956 30.349 29.378 28.558 27.483 26.789 26.672 25.382 -7.574 Balance sheet -2.607 -971 -820 -1.075 -694 -117 -1.290 deleverage qoq CET1 ratio n/a 10,4% 10,6% 11,3% 15,4% 14,0% 13,9% 14,9% (transitional basis) Leverage ratio 11,3x 11,1x 10,6x 10,1x 7,3x 7,7x 7,6x 7,2x (Assets/Equity) * Consolidated Balance Sheet - ignoring classification as disposal group held for sale 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 Bank of Cyprus KOINO WKY PIW 15#16Funding Structure Analysis of Liabilities and Equity (€ bn) Total equity ECB funding Other liabilities ■Customer deposits ELA Loans to Deposits ratio Customer deposits (bn) to Total Assets Loans to deposits ratio (net) Adjusting for the disposal I of the majority of the Russian operations 30,35 151% 145% 148% 148% 29,38 140% 141% 138% 136% 139% 28,56 27,48 26,79 26,67 51% 49% 48% 48% 49% 51% 49% 54% 53% I 25,38 30.06.13 31.12.13 31.03.14 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 proforma 30.06.15 14,97 14,07 13,80 13,33 13,17 13,61 13,63 . 1,40 1,40 1,40 0,92 . 0,88 0,80 0,50 9,56 9,51 8,78 7,68 7,40 6,90 5,90 • 1,76 1,86 1,85 1,83 1,68 1,64 1,77 2,74 2,76 2,81 3,79 3,48 3,51 3,52 31.12.13 31.03.14 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 Further progress in normalising the Bank's funding structure. At 30 June 2015, customer deposits and Eurosystem funding accounted for 54% and 25% of assets, respectively. Consistent improvement in the loans to deposits ratio (L/D), with L/D ratio improving by 2 p.p. in 2Q2015 to 136%, the lowest level post-bail-in. Bank of Cyprus KOINO WKYMPιW 16#17Eurosystem Funding Reliance Reducing Fast Continuous reduction of ELA and ECB funding with further potential going forward 37% 36% 36% 36% 34% 11,40 11,11 11,16 10,96 10,91 1,30 10,18 1,40 1,40 31%---31% 29% 25% 23% 1,40 8,60 8,28 0,92 7,70 0,88 11,4 0,80 11,11 6,40 9,86 9,56 9,51 5,90 0,50 8,78 0,50 7,68 7,40 6,90 5,90 5,40 €6,0 bn reduction of ELA since peak Apr 2013 Jun 2013 Sep 2013 Dec 2013 Mar 2014 Jun 2014 Sep 2014 Dec 2014 Mar 2015 Jun 2015 ELA (bn) ECB funding (bn) 26 Aug 2015 Eurosystem Funding % Total Assets * Ratio of Eurosystem Funding % Total Assets for 25 August 2015 based on balance sheet as at 30 June 2015 In light of challenging market conditions given recent developments in Greece and Russia, the Bank is maintaining a significant liquidity buffer. Once market conditions are normalised, the Bank expects to proceed with further ELA repayments. Bank of Cyprus 17 KOINO WKYMPιW#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 13.629 607 1.391 12.705 11.985 11.688 11.243 11.314 11.640 11.631 31.12.13 31.03.14 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 Deposit market shares in Cyprus Residents Non-Residents 35,2% 25,5% 32,2% 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% 24,6% 25,6% Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Oct-14 Nov-14 24,9% 25,8% 25,1% 26,1% 25,3% 26,7% Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 * Other countries comprise Ukraine (until March 2014), Romania and Greece. ** Including deposits of disposal groups held for sale/discontinued operations. Evolution of Customer deposits** (€ mn) ■Group Cyprus -297 -497 -720 -905 -1415 -1502 -263 -297 -473 -445 -161 71 442 326 18 -9 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 Group customer deposits totalled 13.629 mn at 30 June 2015. Customer deposits in Cyprus remained relatively stable and stood at 11.631 mn at 30 June 2015, despite the full abolition of capital controls in April 2015 and the recent adverse economic developments in Greece, underlying the decoupling of the Cypriot banking system and economy. 26,7% Deposit market shares in Cyprus for Residents and non-Residents respectively stand at 25,3% and Bank of Cyprus KOINO WKYMPιW 18#19Capital Position Evolution for CET1 ratio during 2Q20151 13,9% +0,7% 14,9% +0,9% CET1 ratio 31.03.15 (transitional) Profit before provisions -0,5% -0,1% Provisions Loss from discontinued operations RWAs Change CET1 ratio 30.06.15 (transitional) DTA Capital Adequacy Ratios 14,4% 31.03.14 ■31.03.15 -0,5% CET1 ratio 30.06.15 (fully loaded) 11,3% 10,6% ■ 30.06.14 30.06.15 I Adjusting for the disposal of the majority of the 'Russian operations I I 15,4% 115,2% 14,9% 14,0% 13,9% 11,5% 10,8% ■30.09.14 prof 30.06.15 ■31.12.14 I 15,6% I | 1,5,3% 15,0% I I 14,2%14,1% 1 'Clean' Fully Loaded CET1 ratio² (March - 2015³) 24% 86% 19% BOC 13,4% 14% 9% 4% .median CET1 ratio 100% 80% 60% 40% 20% 0% CET 1 ratio (transitional) Total capital ratio (transitional) CET1 ratio (transitional) at 14,9% at 30 June 20151 (compared to 13,9% at 31 March 2015), mainly due to the reduction in RWAs and organic capital generation. The reduction in RWAs was driven by the NPEs reduction and balance sheet deleveraging and the reassessment of credit risk exposures and collaterals to optimise credit risk management and management of RWAs. Taking into account the agreement for the sale of the majority of the Russian operations, the pro-forma CET1 ratio (transitional) rises to 15,2% CET1 ratio (fully loaded) at 14,4% at 30 June 2015 Significant RWAs intensity at 86% compared to the average for European banks as at 31 March 2015-(median of 38 banks covered by Citigroup is 42%). Clean Fully Loaded CET1 ratio (Mar-2015*) RWAs intesity (RWAS % Total assets) median RWAs intensity Comprises 38 EU banks covered by Citigroup Research 1 Includes independently verified profits for 1H2015 2 As per Citigroup Research, Clean Fully Loaded CET1 ratio excludes Deferred Tax Credits, AFS and Danish Compromise Estimated Impact. 3 Includes data for 9 EU banks as at 31 December 2014 and 29 EU banks as at 31 March 2015 Bank of Cyprus KOINO WKYNPIW 19#20Gross Loans Gross Loans* by Geography (€ mn) Cyprus ■Russia ■ UK -16% Other countries** -6% 28.349 -2% -4% 26.743 -2% 1.268 26.263 -4% 1% -1% 25.300 1.459 1.230 24.742 1.180 23.772 24.085 23.926 1.794 1.284 804 1.194 706 1.429 1.172 1.290 1.112 692 667 570 1.304 914 1.026 1.132 1.208 966 1.072 1.033 23.828 22.800 22.599 22.020 21.716 21.200 21.320 21.191 • · Group gross loans totalled 23,9 bn at 30 June 2015, compared to 24,1 bn at 31 March 2015. Gross loans in Cyprus totalled 21,2 bn at 30 June 2015, and accounted for 89% of gross loans of the Group. Overall, a 16% reduction in Group gross loans since June 2013 Domestic loan book reduced by 11% since June 2013, reflecting primarily customers' efforts to deleverage by using their deposits to pay down debt 30.06.13 31.12.13 31.03.14 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 * 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 €1,351 mn (compared to €1,545 mn at 31 March 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 WKYMPιW 20#21Credit Risk - Quality of Loan portfolio Problem Loans (€ bn) Adjusting for the 90+ DPD NPLS (CBC definition) NPES (EBA definition) | I disposal of the majority of the Russian operations I | 14,4 14,6 15,0 15,0 15,2 14,8 14,2! 14,0 14,7 13,1 10,2 13,0 13,0 12,8 13,0 12,6 12,7 12,8 12,6 12,1 11,0 7,7 6,7 31.12.12 30.06.13 30.09.13 31.12.13 31.03.14 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 proforma 30.06.15 Evolution of 90+ DPD and NPES (€ mn) Change in 90+ DPD 3.319 1.973 Adjusting for the disposal ■Change in NPES 1 I I of the majority of the I Russian operations 20 -247 -164 386 -324 136 214 -932 -143 -366-665 1H2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 2Q2015 proforma 90+ DPD1 decreased by 143 mn during 2Q2015 and totalled 12,6 mn at 30 June 2015 Non Performing Exposures (NPEs), as per EBA definition, decreased by 366 mn during 2Q2015 and totalled 14,8 bn at 30 June 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 190+ DPD are loans with a specific provision (i.e. impaired loans) and loans past-due for more than 90 days but not impaired Bank of Cyprus KOINO WKYNPIW 21#22Credit Risk - - Provisions Accumulated provisions Accumulated provisions ( bn) Provisions % Gross loans 17,6% 18,6% 19,1% 19,3% 20,0% 21,6% 22,2% 22,5% 16,2% Group loan quality indicators 90+ DPD provision coverage Adjusting for the disposal 90+ DPD ratio of the majority of the Russian operations 47,4% 48,6% 48,6% 49,8% 52,5% 53,2% 53,1% 52,9% 52,7% 38,8% 4,6 4,8 5,0 5,0 4,9 4,9 5,1 5,4 5,4 30.06.13 30.09.13 31.12.13 31.03.14 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 Cost of risk¹ Cost of Risk - Cyprus Cost of Risk - Group 3,6% 2,8% 2,8% 2,7% 2,1% 2,2% 2,4% 2,2% 2,4% 1,9% 1,7% 1,5% 1Q2014 1H2014 9M2014 FY2014 1Q2015 1H2015 37% 38% 39% 39% 38% 41% 42% I 43% 41% 42% 30.06.13 30.09.13 31.12.13 31.03.14 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 proforma 30.06.15 Accumulated provisions totalled 5,4 bn and accounted for 22,5% of gross loans at 30 June 2015 The gains on derecognition and changes in expected cash flows relate to a part-reversal of the fair value adjustment on initial recognition relating to loans acquired from Laiki Bank. The reversal is the result of revised expectations of future cash flows compared to the cash flows expected at the time of acquisition. For credit risk monitoring purposes, the fair value adjustment is considered as part of provisions and the Group reviews both of them as a single item Group annualised cost of risk for 1H2015 was 2,2%, compared to 2,1% for 1Q2015 and 3,6% for FY2014; Annualised cost of risk for Cyprus for 1H2015 was 1,7%, compared to 1,5% for 1Q2015 1 Calculated as the provisions for impairment of customer loans, including provisions of discontinued operations, (in total €493 mn), net of gains on derecognition and changes in expected cash flows on acquired loans (totalling €230 mn) over average gross loans Bank of Cyprus 22 KOINO WKYNPIW#23Credit Risk – 90+ DPD loans by number of days past due 90+ DPD loans by number of days past due (€ bn) • 13,00 12,76 12,98 12,59 12,65 12,79 12,65 4,85 4,02 3,54 3,76 3,36 3,37 3,00 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 0,52 7,29 7,69 7,84 7,85 8,07 8,46 6,70 31.12.13 31.03.14 30.06.14 30.09.14 Impaired with arrears over 90 dpd ■Impaired with no arrears 31.12.14 31.03.15 Impaired with arrears up to 90 dpd 30.06.15 • ■Not Impaired but with arrears over 90 dpd Group 90+ DPD ratios by customer type (€ bn) 31.12.13 31.03.14 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 90+ DPD at 12,65 bn at 30 June 2015 compared to 12,79 bn a quarter earlier. Approximately 1 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 of Corporate, SMEs and Retail has been relatively stable at 59%, 63% and 35% respectively at 30 June 2015 compared to 31 March 2015 59% 57% 56% 58% 61% 59% 59% 56% 59% 62% 54% 63% 63% 60% Corporate SMEs 36% 35% 36% 35% 30% 32% 30% Retail Bank of Cyprus 23 KOINO WKYMPιW#24Credit Risk by customer type - 90+ DPD fully covered by provisions & tangible collateral 30 June 2015 Corporate SMEs Retail Housing Retail Other Cyprus 47% 21% 21% 11% 100% 21,2 Gross loans (€ bn) 10,1 4,5 4,3 2,3 61,7% 66,7% 90+ DPD loans 54,2% 48,6% 26,7% by segment Loan Loss Reserve (LLR) 50,6% 43,3% 31,9% 24,5% 39,1% coverage Tangible 69,1% 74,7% 80,1% 51,6% 70,0% coverage 112,4% 106,6% 104,6% 102,2% 109,1% Total coverage Significant provision and collateral coverage, with additional comfort from personal guarantees XX % of total gross loans (Cyprus only) Bank of Cyprus 24 KOINO WKYMPιW#25Restructuring and Recoveries Division Good progress has been made with Restructuring efforts on top 30 exposures¹ assumed by RRD bn €5,8 bn €5,3 bn €5,0 bn €4,7 bn €4,3 bn RRD set up and assumption of exposures 1,2 1,3 1,0 0,9 2,2 0,5 99 24 0,9 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 2,1 2,1 1,7 0,8 0,4 ■Insolvency appointment 0,5 0,3 0,5 0,1 0,3 0,5 0,5 0,5 Other recovery cases 0,3 0,2 0,2 0,2 30.11.13 30.09.14 31.12.14 31.03.15 31.07.15 • Currently, about 0,9 bn of restructured loans that are managed and monitored by RRD will be transferred to business lines upon satisfactory performance Aggregate of top exposures being reduced; approximately 400 mn restructured loans are in the process of being transferred back to business lines Bank of Cyprus KOINO WKYMPιW 1 Funded and unfunded exposures. Top 30 exposures assumed by RRD on 30 November 2013 and their progress over time 25#26Overseas non-core operations Disposing of overseas operations considered as non-core • During 2Q2015 the Bank disposed of its investment in Marfin Diversified Strategy Fund • Post 30 June 2015, the Bank has reached an agreement to sell the majority of its Russian operations, including Uniastrum Bank. The sale follows a similar disposal in Ukraine and completes the disposal of the Group's overseas banking subsidiaries identified for sale. The sale allows the Group to de-risk its balance sheet by approximately 600 mn and allows the release of risk weighted assets of approximately 600 mn. The sale improves the Group's regulatory capital position, with a positive impact of approximately 33 basis points on the CET 1 ratio. The non-core overseas operations as at 30 June 2015 were as follows: Greece: The net exposure comprised (a) net on-balance sheet exposures (excluding foreclosed properties) totalling 56 mn (compared to 76 mn at 31 March 2015), (b) 637 foreclosed properties with a book value of 199 mn (compared to about 619 foreclosed properties with a book value of 200 mn at 31 March 2015), (c) off-balance sheet exposures totalling 133 mn (compared to 154 mn at 31 March 2015) and (d) lending exposures to Greek entities in the normal course of business in Cyprus totalling 74 mn, (compared to 89 mn at 31 March 2015) and lending exposures in Cyprus with collaterals in Greece totalling 66 mn at the same level as with previous quarter · • Romania: The overall net exposure is 368 mn (compared to 439 mn at 31 March 2015). Russia: The overall net exposure is 103 mn (compared to 121 mn at 31 March 2015). Bank of Cyprus 26 KOINO WKYMPιW#27Overview Income Statement Review Balance Sheet Review KPIs - Key Takeaways Additional Information Bank of Cyprus 27 KOINO WKYMPιW#28Significant progress made on Group KPIs, with a clear plan of action to achieve medium-term targets Medium- Key Group Group Cyprus Category performance indicators Dec- Jun- Jun- 2014 2015 2015 term target (2017) * 1. Reverse 90+ DPD 41% 43% 39% 40%-50% coverage Asset quality Provisioning charge 3,6% 2,2%** 1,7% <1,0% trend on overdue loans 2. Normalise funding; Eliminate ELA Eurosystem Funding funding % total 31% 25% n.a <25% balance sheet 3. Focus on Basel 3 Capital transitional 14,0% 14,9% n.a >12% core markets in Cyprus CET1 Net interest 3,9% 3,9% 3,8% ~3,25% margin Fee and Margins and efficiency commission 13% 15% 15% Increase income/total income 4. Achieve a lean operating model 5. Deliver returns Cost to income ratio 36% 36% 35% 40%-45% Key Pillars & Plan of action • • • • 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 exiting non-core overseas activities 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 • 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 O 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 €493 mn), net of gains on derecognition and changes in expected cash flows on acquired loans (totalling €230 mn) over average gross loans Bank of Cyprus KOINO WKYMPιW 28#29Key Takeaways Leading financial institution in an economy that is on the road to economic recovery CET1 ratio at 14,9% (transitional basis); capital position shields the Group from further shocks and helps in regaining trust of counterparties Post 30 June 2015 the Bank has reached an agreement for the sale of the majority of the Russian operations; The sale allows the Group to de-risk its balance sheet even further and eliminates future potential risks, to release risk weighted assets and therefore improve its CET1 ratio by approx. 33 basis points. Stabilising deposit base; Loans-to-deposits ratio improved to 136%. ELA reduced by €6,0 bn to €5,4 bn through deleveraging actions, capital proceeds and customer inflows. Improved funding structure with customer deposits at 54% of total assets compared to 51% at 31 March 2015 RRD efforts are yielding results, with loan quality showing further signs of stabilisation; 90+ DPD reduced to €12,6 bn, with 90+ DPD provisioning coverage improving to 43% 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, with profit before provisions at 169 mn and profit after tax at 31 mn for 2Q2015 Bank of Cyprus KOINO WKYMPιW 29#30Overview Income Statement Review Balance Sheet Review KPIs - Key Takeaways Additional Information Bank of Cyprus KOINO WKYMPιW 30#31Key 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 WKYNPIW 31#32Consolidated Balance Sheet € mn % 30.06.15 31.12.14 € mn % 30.06.15 31.12.14 change change Cash and balances with Amounts due to banks +24% 201 162 -11% 1.011 1.139 Central Banks Funding from Central Banks -23% 6.403 8.284 Placements with banks -13% 1.425 1.647 Repurchase agreements -1% 576 580 Debt securities, treasury bills -36% 1.631 2.541 Customer deposits +3% 13.027 12.624 and equity investments Debt securities in issue 1 1 Net loans and advances to customers 18.136 18.168 Other liabilities -6% 986 1.046 Other assets 2.374 2.378 Non current liabilities and disposal groups classified as held for sale +9% 669 611 Non current assets and disposal groups classified as -12% 805 916 Total liabilities held for sale Share capital -6% 21.863 23.308 892 892 Total assets -5% 25.382 26.789 Capital reduction reserve and share premium 2.505 2.505 Note: As from the fourth quarter of 2014, the Group's operations in Russia are treated as a disposal group held for sale and results have been presented accordingly as discontinued operations in accordance with IFRSS. Revaluation and other reserves +21% 178 147 Accumulated losses -12% (69) (79) Shareholders' equity +1% 3.506 3.465 Non controlling interests -17% 13 16 Total equity +1% 3.519 3.481 Total liabilities and equity -5% 25.382 26.789 Bank of Cyprus KOINO WKYNPIW 737 32#33Consolidated Income Statement mn 2Q2015 1Q2015 4Q2014* 3Q2014* 2Q2014* Net interest income 214 225 225 232 264 Net fee and commission income 36 43 37 37 37 Net foreign exchange gains/(losses) and net gains/(losses) on other financial instruments Insurance income net of insurance claims 12 (4) 14 (13) (1) 9 12 10 10 13 (Losses)/gains from revaluation and disposal of investment properties (16) (7) (9) (4) 4 Other income 6 3 4 2 2 Total income 261 272 281 264 319 Staff costs (59) (59) (58) (59) (59) Other operating expenses (33) (43) (56) (44) (45) Total expenses (92) (102) (114) (103) (104) I Profit before provisions and impairments, gains on derecognition and changes in expected cash flows on acquired loans, restructuring costs and discontinued operations 169 170 167 161 215 Provisions for impairment of customer loans (309) (148) (306) (117) (160) Gains on derecognition and changes in expected cash flows on acquired loans 187 43 30 6 4 Impairments of other financial and non-financial assets (30) (1) (57) 1 (34) Share of profit/(loss) from associates and joint ventures 1 2 3 2 I Profit/(loss) before tax, restructuring costs and discontinued operations 18 66 (163) 49 271 Tax (1) (Loss) attributable to non- controlling interests (0) (0) 0 (0) ---- iProfit/(loss) after tax and before restructuring costs, discontinued operations and net profit on disposal of non-core assets 16 57 (164) 43 25 Restructuring costs (14) (7) (3) (11) (16) Loss from disposal group held for sale / discontinued operations (12) (21) (157) (37) (19) Net gain/(loss) on disposal of non-core assets 41 (13) 60 ¡Profit/(loss) after tax 31 29 (337) (5) 50 Bank of Cyprus KOINO WKYMPιW •Comparative information has been represented. See Note 4.2 to the Mid-year Financial Report for the six months ended 30 June 2015, Comparative information. 33#34Income Statement bridge for 1H2015 Per presentation Reclassification Per financial statements € 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 Other income Total income Total expenses ■ Profit before provisions and impairments, gains on derecognition and changes in expected cash flows on acquired loans, restructuring costs and discontinued operations ---- Provisions for impairment of customer loans 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 439 439 79 79 8 271 279 21 21 (23) (23) 9 9 533 804 (194) (21) (215) 339 589 (457) (457) 230 (230) (31) (31) 3 3 84 104 (11) (11) (0) (0) = 93 Loss attributable to non-controlling interests Profit after tax and before restructuring costs, discontinued operations and net profit from I disposal of non-core assets Restructuring costs Net losses on disposal of non-core assets (21) 21 (33) (33) Profit from disposal group held for sale / discontinued operations, net of minority interest Profit after tax 41 (41) 60 60 Bank of Cyprus KOINO WKY PIW 34#35Cyprus Income Statement (€ mn) 1H2015 1H2014 2Q2015 1Q2015 4Q2014 3Q2014 2Q2014 Net interest income 411 487 200 211 216 216 251 Net fee & commission income 76 75 34 42 Net FX income/(losses) and net gains/(losses) from financial instruments 7 5 12 25 34 35 (5) 12 (9) Insurance income net of insurance claims Other income (expenses) 5225 36 (2) 20 23 8 12 10 9 12 (1) 5 (4) 3 (5) (5) Total income Staff costs Other operating expenses Total expenses I Profit before provisions and impairments 513 595 250 263 267 246 302 (110) (110) (55) (55) (56) (55) (55) (68) (76) (31) (37) (54) (38) (40) (178) (186) (86) (92) (110) (93) (95) 335 409 164 171 157 153 207 Provisions for impairment (410) (272) (288) (122) (207) (101) (163) Gains on derecognition and changes in expected cash flows on acquired loans 229 11 186 43 30 30 6 4 Impairment of other financial assets and non financial assets (20) (34) (19) (1) (48) 1 (34) Share of profit from associates 4 4 2 2 3 (2) 2 Profit/(loss) before tax 138 118 45 93 (65) 57 16 Tax (11) (2) (3) (8) 0 (2) (1) (Loss)/profit attributable to non-controlling interests (0) (0) (0) 0 1 (0) (0) Profit/(loss) after tax and before one off items 127 116 42 85 (64) 55 15 Bank of Cyprus KOINO WKYNPIW 35#36Cyprus operations: key driver of Group performance High NIM Cyprus operations - supported by high funding reliance on Eurosystem funding Lower Cost to Income ratio for Cyprus operations (bps) 423 377 372 384 379 386 369 354 50% 314 43% 38% FY2014: 385 FY2013: 353 1H2015: 379 35% 35% 35% 33% 31% 31% 1H2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 1H2013 9M2013 FY2013 1Q2014 1H2014 9M2014 FY2014 1Q2015 1H2015 Historical fee and commission income / total income for Cyprus operations Total income (€ bn) Evolution of Cost of risk* for Cyprus operations 3,9% 0,7 19% 1,0 13% 0,29 0,30 14% 12% 0,25 0,27 0,26 0,25 15% 12% 16% 14% 3,7% 3,7% 1,9% 2,4% 2,4% 2,2% 81% 87% 86% 88% 85% 88% 84% 86% 1,7% 1,5% 1H2013 9M2013 FY2013 1Q2014 1H2014 9M2014 FY2014 1Q2015 1H2015 2012 2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 Other income Fee and commission income Calculated as the provisions for impairment of customer loans, including provisions of discontinued operations, (in total €493 mn), net of gains on derecognition and changes in expected cash flows on acquired loans (totalling €230 mn) over average gross loans. Gross loans are before the deduction of the fair value adjustment on initial recognition relating to loans acquired from Laiki Bank. Bank of Cyprus KOINO WKYNPIW 36#37Summary Income Statement by Geography (€ mn) UK OTHER 1H2015 1H2014 1H2015 1H2014 Net interest income Net fee & commission income 15 15 24 47 3 Net FX income/(losses) and net gains/(losses) from financial instruments 1 21 5 11 4 2 Insurance income net of insurance claims Other income /(expenses) Total income Staff costs Other operating expenses Total expenses Profit/(loss) before provisions and impairments Provisions for impairment 0 0 19 18 (7) (6) (16) (8) (6) (20) (15) (12) (36) 4 6 (1) (30) (82) Gains on derecognition and changes in expected cash flows on acquired loans 1 ༠སེཎ€888 ་ 2 5 67 (20) (31) (51) 15 (66) Impairment of other financial assets and non financial assets Share of profit/(loss) from associates ¡Profit/(loss) before tax Tax Profit attributable to non-controlling interests ¡Profit/(loss) after tax and before one off items (12) (24) (99) (51) (1) 0 1 (6) 8 8 3 (24) (90) (49) Bank of Cyprus KOINO WKYNPIW 37#38Cyprus: Income Statement by business line (€ mn) Consumer Banking SME Banking Corporate Banking International Banking Wealth & Brokerage & Asset Management RRD Other Total Cyprus Net interest income 114 32 33 31 3 166 Net fee & commission income 27 5 4 27 Other income (expenses) 3 0 1 ≈ 3 1 7 2 0 Total income 144 37 38 61 6 173 Total expenses (59) (6) (5) (9) (2) (18) I Profit/(loss) before provisions and 85 31 33 52 155 2522 32 411 76 17 26 54 513 (79) (178) (25) 335 Limpairments Provisions for impairment (5) 1 (15) (0) (0) (392) 1 (410) Gains on derecognition and changes in expected cash flows on acquired loans 50 24 29 2 2 116 6 229 Impairment of other financial assets Share of profit of associate and Non- Controlling Interest (20) (20) 4 4 Profit/(loss) before tax 130 56 47 54 6 (121) (34) 138 Tax (16) (7) (6) (7) (1) 15 11 (11) Profit/(loss) after tax and before one off items 114 49 41 47 5 (106) (23) 127 Cost-to-Income ratio 41% 16% 14% 16% 43% 10% 35% Bank of Cyprus KOINO WKYNPIW 38#39Risk Weighted Assets by Geography - Regulatory Capital Risk weighted assets by Geography (€ mn) Equity and Regulatory Capital (€ mn) 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 30.6.14 30.9.14 31.12.14 31.03.15 30.06.15 Cyprus 19.807 20.296 20.452 20.473 19.607 Shareholders' equity 2.748 3.728 3.465 3.502 3.506 Russia 1.276 1.203 706 813 708 United CET1 capital 2.547 3.512 3.191 3.201 3.2052 Kingdom 616 633 986 1.162 667 Romania 358 316 308 294 318 Tier I capital 2.547 3.512 3.191 3.201 3.205 Greece 381 367 217 181 180 Tier II capital 3 39 42 30 32 Total regulatory Other¹ 47 48 46 49 47 capital (Tier I + Tier II) 2.550 3.551 3.233 3.231 3.237 Total 22.485 22.863 22.715 22.972 21.527 Risk weighted assets by type of risk (€ mn) 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 Credit risk 20.457 20.834 20.625 20.881 19.426 Market risk 5 5 5 16 Operational risk 2.023 2.023 2.085 2.085 2.085 Total 22.485 22.863 22.715 22.972 21.527 Bank of Cyprus KOINO WKYMPιW 1 Other countries include Ukraine, Channel Islands and Netherlands 2 Includes independently verified profits for 1H2015 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 Less: Regulatory adjustments (Minority Interest, DTA and other items) Less: Revaluation reserves and other unrealised items transferred to Tier II CET 1 (transitional)1 Less Adjustments to fully loaded (mainly DTA) CET 1 (fully loaded) Risk Weighted Assets CET 1 ratio (fully loaded) 1 CET 1 ratio includes profits of 1H2015 30.06.15 3.519 (16) (222) (24) (52) 3.205 (114) 3.091 21.527 14,4% Bank of Cyprus KOINO WKYMPιW 40#41Loans and Deposits by Geography Gross Loans by Geography Deposits by Geography € mn 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 € mn 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 Cyprus 22.020 21.716 21.200 21.320 21.191 Cyprus non-IBU** 8.094 7.785 7.847 8.080 8.421 Cyprus IBU** 3.594 3.458 3.467 3.560 3.210 UK 1.172 1.112 914 1.026 1.132 Cyprus - Total 11.688 11.243 11.314 11.640 11.631 Russia 1.304 1.208 966 1.072 1.033 UK 1.252 1.289 1.305 1.357 1.391 Other 804 706 692 667 570 Russia 845 794 545 609 602 countries* Group 25.300 24.742 23.772 24.085 23.926 Other countries*** 18 5 5 5 Group 13.803 13.330 13.169 13.611 13.629 Gross Loans by Geography Deposits by Geography 4,7% 4,3% 2,4% 4,4% 0,0% ■Cyprus -non IBU 10,2% Cyprus - IBU** ■Cyprus ■ UK Russia Other Countries* 88,6% * Other countries: Romania and Greece ■ UK ■Russia Other Countries 23,6% 61,8% Total Cyprus 85% ** IBU- Division servicing exclusively international activity companies registered in Cyprus and abroad and non- residents *** Other countries: Romania and Greece Bank of Cyprus KOINO WKYNPIW 41#42Gross loans by Geography and by Customer Type Gross loans by geography 28,35 Total 26,74 26,26 1,27 25,30 24,74 1,79 1,23 ■ Other countries* 1.46 1,18 23,77 24,09 23,93 (€ bn) 1,28 1,43 1,29 0,80 0,70 1.19 1,17 1,30 1,11 1,21 0,69 0,97 0,67 1,07 0,58 0,91 1.03 1,03 ■Russia UK 1,13 ■Cyprus 23,83 22,80 22,60 22,02 21,72 21,20 21,32 21,19 30.06.13 31.12.13 31.03.14 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 *Other countries: Greece, Romania and Ukraine (until March 2014) Gross loans by customer type Total ■Retail other 28,35 26,74 26,26 25,30 24,74 Retail Housing 3,44 23,77 24,09 23,93 (€ bn) 3,01 2,94 2,52 2,42 5,44 2,44 2,54 2,52 SMES 5,37 5,30 4,67 4,61 4,41 4,43 4,39 6,37 ■Corporate 6,12 6,09 5,50 5,54 5,09 5,02 4,99 13,10 12,24 11,93 12,61 12,17 11,83 12,10 12,03 30.06.13 31.12.13 31.03.14 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 Bank of Cyprus KOINO WKYMPιW 42#43Analysis of Deposits by Geography and by Type Deposits by geography ■Russia & Other 16,97 countries* 1,25 14,97 14,07 13,80 1,29 1,02 13,33 13,17 13,61 13,63 ■ UK 0,83 1,24 0,87 0,79 1,25 0,55 4,75 1,25 1,29 1,30 0,61,36 0,61 1,39 4,05 3,79 3,59 3,46 3,47 3,57 3,21 ■Cyprus IBU ■Cyprus non-IBU 9,67 8,66 8,20 8,09 7,79 7,85 8,07 8,42 30.06.13 31.12.13 31.03.14 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 * Other countries: Romania and Ukraine Total (€ bn) Deposits by type of deposit 16,97 Current & demand Total 14,97 accounts 14,07 3,42 13,80 13,33 13,17 13,61 13,63 (€ bn) 0.83 3,49 Savings accounts 3,53 3,72 0,93 3,96 4,33 4,48 4,47 0,95 0,95 0,84 0,96 0,97 1,02 ■Time deposits 12,72 10,55 9,59 9,13 8,53 7,88 8,16 8,14 30.06.13 31.12.13 31.03.14 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 Bank of Cyprus 43 KOINO WKYMPιW#44Market Shares and Customer flows in Cyprus . Around 1% 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 38% -446 -411 -546 65 -11 Total customer flows per quarter (€ mn) Sep-13 Dec-13 Mar-14 27,9%⭑ 38,1% 27,5% 26,4% 39,1% 40,0% Jun-14 25,5% 39,5% Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 24,9% 40,5% 24,8% 40,8% 24,6% 41,1% 24,8% 38,8% 25,0% 37,2% 25,5% 37,3% Market share evolution in Cyprus Deposits Loans Mar-15 Apr-15 May-15 Jun-15 25,3% 37,7% 25,2% 38,0% 25,4% 38,6% 25,7% 38,5% 450 386 424 • 283 Customer flows were positive during 2Q2015 -2.227 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015* Up to 25 August 2015 Post full abolition of capital controls in April 2015, customer flows are positive Bank of Cyprus KOINO WKYMPιW 44#45UK Operations UK Loans (€ bn) ex-Laiki UK loans Loans by sector Consumer Credit Housing 2% 1,46 1,38 1,28 1,19 1,17 1,11 1,13 2% 1,03 SMES 0,83 0,72 0,65 0,91 0,56 0,45 0,40 0,30 23% 0,83 0,91 1,03 1,13 0,74 0,73 0,72 0,74 0,77 0,81 Dec Jun Sep Dec 2012 2013 2013 2013 Mar Jun 2014 2014 Sep 2014 2014 Dec Mar Jun 2015 2015 UK Deposits (€ bn) 1,39 1,36 1,29 1,28 1,29 1,30 1,21 1,24 1,25 1,25 Corporate 73% Dec Jun Sept Dec Mar June Sept Dec Mar Jun 2012 2013 2013 2013 2014 2014 2014 2014 2015 2015 Bank of Cyprus 45 KOINO WKYNPIW#46Overseas Operations – Russia, Romania and Greece Romanian Gross loans (€ mn) Total exposure in Greece and Romania Romania € mn 31.12.14 31.03.15 30.06.15 Overall net exposure 520 439 368 Greece € mn 31.12.14 31.03.151 30.06.151 657 637 631 533 Net Exposure from on 97 76 56 518 520 balance sheet financial 430 assets Exposure from off balance sheet financial assets 185 154 133 Dec 2013 Mar 2014 Jun 2014 Sept 2014 Dec 2014 Mar 2015 Jun 2015 Foreclosed properties (book value) 179 200 199 Russian Gross loans (€ bn) 1,79 1,62 1,43 1,29 1,30 1,21 0,97 1,07 1,03 Russian Deposits (€ bn) 1,15 1,08 0,92 0,85 0,77 0,79 0,61 0,60 0,55 Jun Sept Dec Mar 2013 2013 2013 Jun Sept Dec 2014 2014 2014 2014 Mar 2015 2015 Jun Jun Sept Dec Mar Jun 2013 2013 2013 2014 2014 Sept Dec 2014 2014 2015 Mar Jun 2015 1 In addition to the above, in the normal course of business in Cyprus, the Bank has lending exposures to Greek entities amounting to €74 mn as at 30 June 2015, compared to €89 mn as at 31 March 2015 and lending exposures in Cyprus with collaterals in Greece totalling €66 mn, at the same level as the previous quarter end. Bank of Cyprus KOINO WKYMPιW 46#47Adoption of Foreclosure law and Insolvency framework Adoption removes the uncertainty of previous months, but implementation risks remains Foreclosure Law • Provides for the holding of private auctions and sales of mortgaged property by Creditors, without the involvement of governmental bodies New process expected to shorten significantly the time frame for foreclosing property The Bank is assessing the various provisions and expects to be using selectively the new enforcement procedures Insolvency framework • • י - Objective is to introduce a proper insolvency regime for both individuals and legal entities The aim of the framework is: For natural persons The introduction of the concept of Consensual or Non-Consensual Personal Repayment Schemes and Debt Relief Orders (both subject to satisfaction of certain criteria) through the appointment of an Insolvency Practitioner, maintaining, where feasible, the primary residence the modernisation of the existing bankruptcy procedures enabling bankrupt debtors to reactivate their economic activity after 3 years following their bankruptcy For legal entities The modernisation of the liquidation procedures, and The provision of a mechanism through the appointment of an Examiner for the restructuring of debts and finding ways of keeping a company a going concern. Key challenges & issues Untested process Courts not adequately resourced Lack of experience in court procedures Managing reputational implications Implementation of the various provisions of the law The Bank is assessing the various provisions of the laws, e.g. enforcement rights against guarantors Bank of Cyprus 47 KOINO WKYNPIW#48Asset Quality (€ mn) Jun-15 Mar-15 Dec-14 Sep-14 Jun-14 A. Gross Loans after Fair value on Initial recognition 22.575 22.540 22.206 23.136 23.685 Fair value on Initial recognition 1.351 1.545 1.566 1.606 1.615 B. Gross Loans 23.926 24.085 23.772 24.742 25.300 B1. Loans with no arrears 10.178 10.038 10.065 10.298 10.964 B2. Loans with arrears but not impaired 4.105 4.627 4.413 5.222 5.285 Up to 30 DPD 668 662 562 750 919 + + + 31-90 DPD 91-180 DPD 181-365 DPD 435 596 492 716 826 227 344 440 718 674 529 758 926 1.058 1.145 Over 1 year DPD 2.246 2.267 1.993 1.980 1.721 + B3. Impaired Loans 9.644 9.420 9.294 9.221 9.051 With no arrears 969 1.006 1.153 1.145 1.133 Up to 30 DPD 91 68 149 66 104 31-90 DPD 91-180 DPD 121 275 142 168 122 167 181 143 233 398 181-365 DPD 489 445 685 828 1.551 Over 1 year DPD 7.807 7.445 7.022 6.781 5.743 (90+ DPD)* 12.646 12.789 12.653 12.977 12.591 90+ DPD ratio (90+ DPD / Gross Loans) 52,9% 53,1% 53,2% 52,5% 49,8% Accumulated provisions 5.381 5.354 5.140 4.948 4.879 Gross loans provision coverage 22% 22% 22% 20% 19% 90+ DPD provision coverage 43% 42% 41% 38% 39% Bank of Cyprus KOINO WKYNPIW Loans in arrears for more than 90 days (90+ DPD) = Loans with arrears over 90 days but not impaired + Impaired Loans 48#4990+ DPD by Geography 90+ DPD by Geography (€ bn) ■Cyprus Russia ■ UK Other countries* 12,98 12,76 12,59 12,65 12,79 12,65 0,57 0,55 0,89 0,52 0,26 0,58 0,47 0,11 0,28 0,55 0,09 0,09 0,25 0,51 0,60 0,61 0,51 0,44 11,60 11,18 11,28 11,47 11,53 11,48 * Other countries: Romania, Ukraine (until March 2014) and Greece 49% 34% 21% 51% 39% 24% 90+ DPD ratios by Geography 75% ■Cyprus Russia ■ UK Other countries* 65% 53% 46% 23% %08 54% 52% 84% 31.03.14 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 31.03.14 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 10% 54% 56% 11% 82% 54% 59% Bank of Cyprus KOINO WKYMPιW 49 %8 83%#505,21 4,87 4,34 Gross loans by business line (€ bn) 30.06.14 % of total 19% 30.09.14 ■ 31.12.14 9% ■31.03.15 30.06.15 16% 4,53 4,59 90+ DPD ratios by business line 30.06.14 ■30.09.14 ■ 31.12.14 30% 33% 32% 29% 27% Corporate 28% 28% 24% 27% SMEs 26% Analysis of Loans and 90+ DPD ratios by Business Line* 2,73 2,63 2,30 2,20 2,14 3,94 Corporate SMEs Housing Consumer Credit 14% 17% 16% 16% 15% ■ 31.03.15 30.06.15 31% 32% 31% 31% 30% *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. No comparative information is available prior to June 2014. 66% 3,90 3,85 3,85 3,80 2,01 1,90 %69 %89 %89 70% Housing Consumer Credit RRD-Mid and Large Corporates RRD-SMES 1,75 1,83 1,80 8% 22% 5,84 5,55 5,33 5,37 5,20 1,50 1,48 1,40 1,39 1,38 6% RRD-Mid and Large Corporates RRD-SMES RRD Recoveries - 79% 82% 81% 81% %08 RRD-Recoveries Bank of Cyprus KOINO WKYMPιW 50 100% 100% 100% 100% 100% 20% 4,06 4,41 4,78 4,91 5,02#5150% 45% 47% 44% 44% 48% 48% 50% total 31.12.13 % of 10% 2,82 2,74 2,70 2,83 2,47 4% Gross loans by economic activity (€ bn) 31.03.14 ■ 30.06.14 ■ 30.09.14 ■ 31.12.14 31.03.15 ■30.06.15 Analysis of Loans and 90+ DPD ratios by Economic Activity 7% 17% 2,48 2,50 1,00 0,95 0,96 0,95 0,89 0,91 0,92 1,89 1,85 1,82 1,61 1,50 1,57 1,64 4,25 4,21 4,13 4,09 3,96 4,04 4,19 4,20 4,12 3,63 3,59 3,12 3,17 13% Trade Manufacturing Hotels & Construction Restaurants Real estate Private Individuals 90+ DPD ratios by economic activity ■31.12.13 ■31.03.14 ■ 30.06.14 ■ 30.09.14 ■31.12.14 ■ 31.03.15 BEEEEEE ■ 30.06.15 53% 51% Trade Manufacturing 55% 54% 54% 54% 51% 47% 52% 50% Hotels & Restaurants Construction Real estate 48% 51% 48% 48% 48% 32% 33% 34% 37% 38% 38% Private Individuals 38% 3,20 33% 8% 6% Professional & other services € 65 66 66 Professional & other services Other sectors Bank of Cyprus KOINO WKYNPIW 737 51 1,86 1,89 2,07 1,73 1,72 1,53 1,53 2,12 2,09 1,55 Other sectors#52Credit Risk - 90+ DPD by Geography and by customer type Group 90+ DPD loans by geography (€ bn) 48,6% 48,6% 49,8% 52,5% 53,2% 53,1% 52,9% 13,0 0,9 12,8 90+DPD ratio (% of total loans) 0,9 0,30,5 12,6 0,5 13,0 12,7 12,8 0,6 0,30,4 0,30,5 0,6 12,6 0,6 0,5 0,3 0,1 0,5 0,1 0,6 0.5 0,1 0,6 11,3 11,2 11,3 11,6 11,5 11,5 11,4 31.12.13 31.03.14 ■Cyprus 30.06.14 ■ UK 30.09.14 ■Russia 31.12.14 31.03.15 Other countries* 30.06.15 Group 90+ DPD loans by customer type (€ bn) 13,0 12,8 13,0 12,6 12,7 12,8 12,6 1,3 1,3 1,2 1,3 1,2 1,2 1,2 1,2 1,2 1,1 1,1 1,2 1,3 1,2 3,3 3,4 3,5 3,1 3,1 3,1 3,3 7,2 6,9 7,0 7,1 7,2 7,2 7,1 31.12.13 31.03.14 30.06.14 ■Corporate SMES 30.09.14 ■Retail other 31.12.14 31.03.15 ■Retail housing 30.06.15 Other countries include certain loans and advances in Romania that were previously reported under Cyprus Group 90+ DPD have stabilised below 13 bn 90+ DPD in Cyprus have stabilised at around 11,4 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 WKYMPιW 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 1,3 1,6 2,0 40 2,3 2,2 -85 321 380 329 265 FY2009 €945 mn FY2010 €1.329 mn 2,5 25 2,9 29 410 558 96 3,5 3,6 3,8 4,0 232 156 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 402 609 7,7 6,5 5,0 5,1 5,1 4,4 100 64 * 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. 1.319 1.240 3.319 1.973 FY2011 €1.399 mn FY2012 €2.723 mn FY2013 FY2014 €5.311 mn -€350 mn 20 -247 13,0 13,0 12,8 12,6 13,0 12,7 12,8 12,6 -164 -324 -143 386 136 Bank of Cyprus KOINO WKYMPιW 53#54Rescheduled Loans Rescheduled Loans by customer type (€ bn) Rescheduled Loans Retail housing ■Retail consumer ■SMES Corporate (€ mn) 8,06 9,03 7,66 Loans with no arrears 31.12.14 31.03.15 30.06.15 2.788 2.907 3.532 1,72 1,49 1,41 0,59 Loans with arrears but not impaired 1.806 1.887 1.942 0,52 0,50 1,81 1,59 1,57 Impaired Loans 4,18 4,46 4,90 Total 3.062 3.268 3.556 7.656 8.062 9.030 31.12.14 31.03.15 30.06.15 . Rescheduled loans % gross loans¹ by customer type 31.12.14 ■31.03.15 ■30.06.15 39%41%41% 34%35% 36% 39% 33% 35% Corporate SMES 22%22%24% Retail housing Retail Consumer . Further progress on restructuring activity with Group rescheduled loans totalling 9,03 bn at 30 June 2015 compared to 8,06 bn at 31 March 2015 Around 39% of rescheduled loans have no arrears post rescheduling. 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 70% Higher rescheduling activity observed in corporate (41% at 30 June 2015 at the same level as at 31 March 2015) followed by Retail housing rescheduling activity which increased to 39% compared to 35% at 31 March 2015 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 €1,351 mn for gross loans and to €611 mn for rescheduled loans (compared to €1,545 mn and €689 mn respectively at 31 March 2015), including loans of discontinued operations/disposal group held for sale. Bank of Cyprus 54 KOINO WKYMPιW#55Credit Risk - Analysis of problem loans Analysis of problem loans - Cyprus operations (€ bn) (Jun-15) 0,4 1,0 0,6 0,1 11,4 10,5 0,1 0,8 €2,5 bn 10 0,1 13,6 with arrears >90+DPD Impaired -no arrears other IFRS and Total 90+ DPD with forbearance reclassification adj 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 2,5 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 10,5 bn of loans with arrears over 90+DPD Bank of Cyprus KOINO WKYMPιW * 90+ DPD are loans with a specific provision (i.e. impaired loans) and loans past-due for more than 90 days but not impaired 55#56Provisioning Methodology 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) Non performing/ restructured accounts with LTV > 50% All other cases monitored though the appropriate CBC indices and revalued only in cases where there is a material decline in a specific property Introduction of commercial property price index of the CBC for the monitoring of commercial buildings and land CBC guidelines are applied to marketable securities in order to ensure the appropriate valuation Foreign property mortgaged for facilities in Cyprus is revalued at specified intervals Restructuring / Recoveries cases follow separate valuation guidelines Key highlights of provisioning methodology Assumptions and Key drivers: Older valuations are adjusted/indexed to market values based on RICS's property price index to reflect current market conditions Conservative assumptions for taxes and expenses on the repossession and subsequent sale of the collateral 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. Projection of future property prices based on an internal model reviewed by auditors and external advisors, based on various parameters such as GDP growth, macroeconomic scenario for future changes in property values and other economic fundamentals. The cumulative average future change in property values during this period has been capped at 0% in accordance with the Loan Impairment and Provisioning Directives of 2014 and 2015 of the CBC. Bank of Cyprus 56 KOINO WKYMPιW#57Non-Performing Loans definition Non-Performing Loans (NPLs) as per the Central Bank of Cyprus Directive: In accordance with the directive, a loan is considered as non-performing when it shows arrears of more than 90 days or if it has been restructured and at the time of restructuring presented arrears for a period of more than 60 days, regardless of tangible or other collateral or it has been restructured more than 2 times in a period of 18 months. More specifically a NPL is defined as a loan which has arrears (of interest or capital or any other charges) for a period of more than 90 days, an overdraft in excess of its contractual limit on a continuous basis for a period of more than 90 days and a restructured facility which at the time of restructuring was classified as NPL or has arrears/excesses for a period of more than 60 days, or has been restructured more than 2 times in the last 18 months. Restructured loans remain as NPLs for 6 months following the commencement of the new repayment schedule of capital installments or in the case of gradual increasing installments, six months from the first month from which the higher installment is due. In case of lump-sum payments at maturity, the loan remains as NPL until its maturity. 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: 90+ DPD are loans with a specific provision (i.e. impaired loans) and loans past-due for more than 90 days but not impaired Bank of Cyprus KOINO WKYMPιW 57#58Disclaimer 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 KOINO WKYMPιW 58