#1Bank of Cyprus Group Investor Update 8 June 2023 KOING#2DISCLAIMER The financial information included in this presentation is not audited by the Group's external auditors. This financial information is presented in Euro (€) and all amounts are rounded as indicated. A comma is used to separate thousands and a dot is used to separate decimals. On 1 January 2023, the Group adopted IFRS 17 'Insurance contracts which replaced IFRS 4 'Insurance contracts'. Historical data in the presentation is disclosed as previously reported, under IFRS 4, unless otherwise stated. For Glossary & Definitions refer to slides 66-70. Important Notice Regarding Additional Information Contained in the Investor Presentation The Investor Update Presentation includes additional financial information not presented within the Announcement, primarily relating to (i) the Company's strategic pillars (ii) overview of the financial performance and strategy of the business lines and card payment solutions business, (iii) details of the business model and strategy of life and non-life insurance companies and (iv) analysis of the business model of the Group's digital transformation and digital economy platform (namely 'Jinius'). Moreover, the Investor Update Presentation includes additional financial information not presented within the Announcement of current and expected levels for (i) growth of new lending, (ii) ratio of fixed income portfolio to total assets (iii) growth of net fee and commission income (iv) growth of insurance business (v) ratio of non-interest income to total operating expenses and (vi) REMU stock evolution. Except in relation to any non-IFRS measure, the financial information contained in the Investor Update Presentation has been prepared in accordance with the Group's significant accounting policies as described in the Group's Annual Financial Report 2022. The Investor Update Presentation should be read in conjunction with the information contained in the Announcement and neither the financial information in the Announcement nor in the Investor Update Presentation constitutes statutory financial statements prepared in accordance with International Financial Reporting Standards. For further information, please contact Investor Relations at [email protected]. Forward Looking Statements This document contains certain forward-looking statements which can usually be identified by terms used such as "expect", "should be", "will be” and similar expressions or variations thereof or their negative variations, but their absence does not mean that a statement is not forward-looking. Examples of forward- looking statements include, but are not limited to, statements relating to the Group's near term, medium term and longer term future capital requirements and ratios, intentions, beliefs or current expectations and projections about the Group's future results of operations, financial condition, expected impairment charges, the level of the Group's assets, liquidity, performance, prospects, anticipated growth, provisions, impairments, business strategies and opportunities. By their nature, forward-looking statements involve risk and uncertainty because they relate to events, and depend upon circumstances, that will or may occur in the future. Factors that could cause actual business, strategy and/or results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements made by the Group include, but are not limited to: general economic and political conditions in Cyprus and other European Union (EU) Member States, interest rate and foreign exchange fluctuations, legislative, fiscal and regulatory developments, information technology, litigation and other operational risks, adverse market conditions, the impact of outbreaks, epidemics or pandemics, such as the COVID-19 pandemic and ongoing challenges and uncertainties posed by the COVID-19 pandemic for businesses and governments around the world. The Russian invasion of Ukraine has led to heightened volatility across global markets and to the coordinated implementation of sanctions on Russia, Russian entities and nationals. The Russian invasion of Ukraine has caused significant population displacement, and as the conflict continues, the disruption will likely increase. The scale of the conflict and the extent of sanctions, as well as the uncertainty as to how the situation will develop, may have significant adverse effects on the market and macroeconomic conditions, including in ways that cannot be anticipated. This creates significantly greater uncertainty about forward-looking statements. Should any one or more of these or other factors materialise, or should any underlying assumptions prove to be incorrect, the actual results or events could differ materially from those currently being anticipated as reflected in such forward-looking statements. The forward-looking statements made in this document are only applicable as at the date of publication of this document. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained in this document to reflect any change in the Group's expectations or any change in events, conditions or circumstances on which any statement is based. Changes in our reporting frameworks and accounting standards, including the recently announced reporting changes and the implementation of IFRS 17 'Insurance Contracts', which may have a material impact on the way we prepare our financial statements and (with respect to IFRS 17) may negatively affect the profitability of Group's insurance business. 2#3Agenda Topic Update of Cyprus macroeconomic outlook Strategy Update & Business Lines overview Speaker Chris Patsalides, Special Advisor to the President of Cyprus on Economic Affairs Panicos Nicolaou, Group Chief Executive Officer Insurance spotlight Digital and Jinius spotlight Louis Pochanis, Director Insurance Business Demetris Nicolaou, Chief Digital Officer Medium Term Financial Outlook Eliza Livadiotou, Executive Director Finance Q&A 3#4Strategy Update Panicos Nicolaou Chief Executive Officer 4#5Why Bank of Cyprus ༣། . • Strong Macro Open economy growing faster than the Eurozone Strong and continued recovery in tourism Fiscal discipline, sovereign rated investment grade Kil ())))) . Attractive business hub with low tax regime Diversified & Sustainable Profitability ⚫ Holistic offering with integrated bank-insurance-payment model; digitally engaged • One of the most highly geared banks to higher interest rates Strong capital light non-interest income . Efficiency focus with low cost to income ratio Data as at 31 March 2023 Market Leader • • • Market leader in a consolidated market 42% loan market share; 37% deposit market share #1 Life and #2 Non-Life Insurance player in Cyprus ⚫ #1 in domestic card processing and payment solutions 自 . Prudent & resilient Strong capital base with CET1 >15% • Strong deposit franchise; one of most liquid banks in EU with LCR >300% • Asset quality in line with EU peers; NPE ratio <4% • Experienced management team delivering targets ahead of schedule Sustainable ROTE With Strong Capital Generation ST 5#6Our Shareholder Focus • Raising our 2023 ROTE guidance to >17% Highly Profitable . ROTE of >13% in 2025 • ROTE of >16% on 15% CET1 ratio4 in 2025 Highly Capital Generative Committed to Shareholder distributions • Expected to generate 200-250 bps per annum of CET1 pre distributions Current CET1 ratio 15.2%1, expected to increase significantly • Dividend resumed after 12 years, paid out of 2022 profits • . Payout ratio building prudently and progressively towards 30-50% on adjusted recurring profitability² Accruing 30% payout ratio³ for 2023 (equivalent to 8% yield) 1) Includes unaudited/unreviewed profits for 1Q2023 and for compliance with CRR an accrual for an estimated final dividend at a payout ratio of 30% of the Group's adjusted recurring profitability in line with the Group's approved dividend policy. Any recommendation for a dividend is subject to regulatory approval Profit after tax before non-recurring items (attributable to the owners of the Group) taking into account distributions under other equity instruments such as the annual AT1 coupon For compliance with CRR an estimated final dividend at a payout ratio of 30% of the Group's adjusted recurring profitability was accrued in line with the Group's approved dividend policy. Any recommendation for a dividend is subject to regulatory approval CET1 ratio for 2025 expected to be at c.19% 2) 3) 4) 10 6#7Capacity for Creating Shareholder Value Targeted payout ratio of 30-50% on adjusted recurring profitability1 Expected to distribute cumulatively c.20-35% of current market cap between 2023-2025 Accruing 30% payout ratio² in 2023 building progressively to 30-50% Excess capital of c.30-45%5 of market cap over CET1 ratio of 15% € bn 1.8 1.1 1.1 5 c.30-45% Capital excess of 15% CET1 Cumulative Dividends c.20-35% 2023-2025 Tangible Market cap 4 Book Value 3 Shareholder value as a % of market cap Profit after tax before non-recurring items (attributable to the owners of the Group) taking into account distributions under other equity instruments such as the annual AT1 coupon For compliance with CRR an estimated final dividend at a payout ratio of 30% of the Group's adjusted recurring profitability was accrued in line with the Group's approved dividend policy. Any recommendation for a dividend is subject to regulatory approval. 1) 2) 3) As at 31 March 2023 Market capitalisation as at 31 May 2023 5) For 2025 7#8Highly Attractive Market and Demographics... Cyprus is growing faster than EU Attractive business hub Consolidated, highly liquid, low risk banking sector GDP growth 23-241 +3.1 ppts 5.8% 2.7% Euro area Cyprus Tax rate 21% Cyprus economic growth vs EU average 2023-2024 6.8% Cyprus unemployment rate March 2023 >1,600 companies relocated to Cyprus in 2022 #3 country in Europe with highest number of university graduates per capita 13% 13,000 work permits in 2022, equivalent to 3% of labour force EU average Cyprus Loan market share² 42% 28% One of the lowest Loan to Deposit ratios in EU BOC Peer 1 Source: Eurostat, CBC statistics 1) Cumulative growth forecasts: Cyprus: Ministry of Finance; Euro area: European Economic Forecast- Spring 2) For BOC as at 31 March 2023; Peer 1 as at 31 December 2022 as per latest available information -78% reduction in NPES (2018-Feb 2023) 8#9.. Complementing the Leading Position for Banking and Financial Services in Cyprus A consolidated banking sector.... €bn Loans Peer 4 Peer 3 Peer 2 BOC Peer 1 Deposits ...with market leadership Market share 42% BOC Peer 1 85% 37% #1 31% 28% 27% 22% #1 #1 14% 15% 15% #1 #2 Rest 2 Loans¹ Deposits Life Insurance² Non-Life² Insurance Payment Solutions Bank of Cyprus ΚΟΙΝΟ KYMPI WHI eurolife Genikes Insurance JCC PAYMENT SYSTEMS 1) 2) For BOC data loan and deposit market shares as at 31 March 2023; for peer 1 loan and deposit market share as at 31 December 2022 Data for insurance and payment solutions as at 31 December 2022 9#10Our Universal Offering Creates Strong and Lasting Relationships... Retail & Wealth Corporate & SME • #1 Retail bank • Servicing c.3/4 of the population • €4.4 bn loans and €12.0 bn deposits • Private Banking as well as Custody and Depositary services Brokerage and Asset Management International . Preferred partner for international customers • >50k customers • Diversified lending arm Insurance • Life: >70k customers Non-Life: >100k customers IUI • >2.5k Corporates and c.5k SMES • €4.7 bn loans and €2.8 bn deposits Payment Solutions . #1 payments provider in Cyprus • National hub facilitator . 75% shareholding Treasury & Markets • . Manages Liquid assets and Wholesale funding Manages Interest rate, liquidity & FX risks Treasury sales (FX derivative solutions) ...and Sets the Foundation for our Diversified and Sustainable Business Model Data as at 31 March 2023, excluding RRD and REMU 10#11The Bank has been Radically Transformed... NPE ratio reduced to 4%; no tail risk NPE ratio 63% 47% 4% Capital strengthened organically while restructuring No equity issuance since 2014 15.0 7.4 Net NPES 9.9 3.5 0.4 0.1 Dec 14 Dec 18 Dec 22 Coverage 34% 52% 69% Strong liquidity position restored LCR 141% L/D ratio² 231% 291% 72% 52% -97% CET1 ratio (FL) Dec 14 Dec 18 Dec 22 1) 2) CET1 ratio restated for the dividend distribution out of FY2022 profits of c.20 bps Net loan to deposit ratio 3) 14.5% 13.4% 10.1% Dec 14 Dec 18 Dec 22 1 Delivering positive returns since 2021 <0% FY2014 <0% FY2018 1.8% FY2021 4.3% FY2022 Reported ROTE 3 ROTE calculated as annualised profit after tax (attributable to owners of the Company) divided by quarterly average shareholders' equity minus intangible assets 11 =#12Now Well Positioned to Deliver >17% ROTE in 2023 Net Interest Income to be 2x average 2019-2021 level Diversified business model >45% of revenues from Non-NII (€ mn) 370 344 330 296 >650 FY2022 Confirming strong ROTE trajectory 47% Non-NII NII 53% 2020 2021 2022 162 1Q2023 FY2019 FY2020 FY2021 FY2022 FY2023 Improved Cost to Income ratio 60% 60% 49% sub 40% FY2020 FY2021 FY2022 FY2023 2023 >17% 5.5% 11.3% <0% Steady declining Cost of Risk (bps) Recurring ROTE1 Recurring ROTE1 Recurring ROTE1 Reported ROTE² 118 50-80 57 44 FY2020 FY2021 FY2022 FY2023 1) 12 Recurring ROTE is calculated as annualised profit after tax before non-recurring items (attributed to the owners of the Company) divided by the quarterly average shareholders' equity minus intangible assets 2) ROTE is calculated as annualised profit after tax (attributed to the owners of the Company) divided by the quarterly average shareholders' equity minus intangible assets 12#13Bank of Cyprus of Tomorrow Bank of Cyprus Bank of Cyprus Holdings KOIHO ΚΥΠΡΙ Strength c.19% CET1 ratio Significant surplus capital KOINO ΚΥΠΡΙ WN Profitability >13% ROTE (>16% based on 15% CET1 ratio) Shareholder distributions 30-50% Dividend payout ratio 2025 Asset quality <3% NPE ratio 13#14Our Vision and Strategic Pillars Going Forward 0000 To create lifelong partnership with our customers, guiding and supporting them in a changing world Kil Lean Operating Model Robust asset quality Organisational resilience and ESG Revenue growth in capital efficient and diversified way . . Grow high quality new lending Drive growth in niche areas for further market penetration Diversify income further, via insurance and digital Defend margins and prudently manage liquidity Ongoing focus on efficiency • Invest further in digitisation • Further centralise and automate operations enabled by digitisation Maintain asset quality in an uncertain environment • Maintain high quality new lending via strict underwriting criteria • Normalise cost of risk and reduce other impairments • • Lead the transition of Cyprus to a sustainable future Build a forward-looking organisation embracing ESG in all aspects Maintain leading role in social and governance pillars 14#15Business Lines overview 15#16Universal Offering to Our Customers Retail & Wealth c.32% Retail Wealth International International1 C.20% Non-Banking c.14% KOINO ΚΥΠΡΙ WN Insurance · Insurance 9% Payment Services • Payment Services 5% • Treasury Corporate & SME c.28% Corporate SME JINIUS Upside expected. Treasury & Markets c.6% Uniquely positioned to serve customers across the life cycle by operating across all elements of the ecosystem Note: % are contribution to Group Core FY2022 revenues, excluding REMU and RRD 1) International corporate and International banking services 16#17BOC Cyprus Market Retail Banking at a Glance – Servicing c.3/4 of the Population - Group contribution 60% 43% Loans Deposits Key Facts 45% of loans are Household loans 4% Household new lending increase (CAGR) since 2018 46% Leading market share in Household loans 40% As at 31 March 2023; 1) Excluding RRD Leading market share in Household deposits . • Key Highlights • #1 Retail Bank in Cyprus Re-defined operating model driving profitability: migration of sales and servicing to digital channels, focusing on customer centricity (reducing the number of branches by c.50% from 2017 to 1Q2023) Sticky Deposits; average retail deposit size of c. €27k Strong digital capabilities across all offerings and cross selling Meticulous assessment of repayment ability Gross Loans¹ 0.9 Other €4.3 bn Deposits¹ Time & Notice 3.4 Housing 4.3 €11.4 bn 7.1 Savings, current & demand 17#18Grow Relationship Value by Offering the Best Service, Products and Solutions Retail Banking Ambition 1) Point of sale credit ה Value from re-defined model Migrate simple sales and servicing to digital channels Improve customer experience Maintain leading market share whilst defending pricing and asset quality To be achieved by.... • • Relevant products and services for key customer segments Improve lending by establishing partnerships with key retailers through Digital loans ("Quickloans") and POS credit¹ O New Affluent Banking proposition Use of right channels, through Digital and Remote sales Physical network to shift from transactional activity to high value sales; 20% further increase in selling activity expected Continue reduction in admin activity & improve in-branch efficiency Enhance right value propositions and brand awareness New re-defined loyalty scheme rewarding holistic relationship with the Bank Creation of dedicated customer experience team 。 Analytics based campaigning to improve conversion 18#19BOC Cyprus Market Corporate & SME Banking at a Glance - Cyprus Bank of Choice for Businesses Key Facts Key Highlights Group contribution 15% Deposits 48% Loans #1 Corporate & SME bank in Cyprus 48% of loans in Cyprus are corporate loans¹ 4% Cyprus corporate performing loans¹ increase. CAGR since 2018 Wide network of specialised SME & Corporate units Digitised customer journey, with digital deposit ratio >90% and client digital engagement at 97% Well diversified loan book by sector Meticulous assessment of repayment ability Leading market share in corporate loans¹ 43% Gross Loans³ 41% Leading market share in corporate deposits² As at 31 March 2023 1) Lending to Non-Financial Corporations 2) Deposits to Non-Financial Corporations 3) Excluding RRD 3.7 Corporate €4.7 bn By sector Other sectors Accommodation SME 12% 1.0 22% Professional 12% Manufacturing 8% 9% 20% Real estate Construction 17% Trade 19#20Established Partner for Businesses, Offering Holistic Suite of Products and Solutions Corporate & SME Banking Ambition To be achieved by.... ה Accelerate cross-selling opportunities to improve customer profitability Further digitisation for continuous improvement in efficiency and customer experience ✓ Maintain leading market share whilst defending pricing and asset quality 1) EU Recovery & Resilience Facility > • • Enhance cross-selling through digital economy platform ("Jinius") to fully digitalise collections and offer innovative digital products Utilise customer insights for customised service Diversify lending, complimented also through the RRF1, to transition financing and energy New lending growth to capture leading market share in the economy Automate end to end lending process 20#21Group contribution - International Banking at a Glance – the Preferred Choice Key Facts Key Highlights 96% of International Companies opened in 2022 are registered in Cyprus/European Economic Area and 3rd equivalent countries • >30% BOC DOO Fees and Commissions contribution to the Group c.€0.8 bn Diversified international loans >90% of Group deposits are from EU (country of residence) • #1 choice for International customers in Cyprus International Banking consists of: 22% Deposits 8% Loans International Banking Services: Financial partner of companies that select Cyprus as their business hub; capital light business facilitating their day to day operations Main market segments: Greece, Israel, and international technology companies relocated in Cyprus. International Corporate Lending: Building a diversified arm offering international lending in Greece and UK, Shipping Finance to Greece/ Cyprus market and International Syndicated participation loans No reliance on Russia and Belarus; c.1% of Group deposits Group Deposits by country of residence 1% 5% 2% 5% 87% Cyprus Other EU Other countries Other European countries, excl. Russia Russia/Belarus As at 31 March 2023 21#22Continue Providing Diversified Banking Activities, capitalising on Cyprus' growing business hub International Banking Ambition To be achieved by.... D 600 ר Expand diversified international lending including Shipping and Syndications participations Sustainable growth of income and volume of business Improve efficiency with digitisation and enhance Customer Experience > • • • Expand international lending through specialised units Capitalise on business and technology hub initiatives in Cyprus Accelerate new business through specialised GreekHub unit to retain an increased clientele Continue enhancing Digital Service model providing high quality service with a personal touch Continue with best in class AML culture across all stakeholders and associates 22#23PAYMENT SYSTEMS JCC Leading Card Processing and Payment Solutions Business in Cyprus Key Facts JCC PAYMENT SYSTEMS C.85% Market share1 Cyprus Payments processor Leader DOC €17 mn EBITDA in FY2022 Key Highlights #1 Payments hub; 75% Shareholding Leading player in the market Strong presence in both physical and online card processing and acquiring space Comprehensive omni-channel end-to-end offering across the payments value chain Established network with major banks and strong institutional connectivity Value of transactions up 53% since 2020 10% Contribution to Group's non-NII² € bn 3% Contribution to Group's PBT2,3 As at 31 December 2022 based on market statistics 1) 2) For 1Q2023 3) Before non-recurring items +53% 11.8 9.1 7.7 FY2020 FY2021 FY2022 23#24Insurance spotlight Louis Pochanis Director Insurance 24#25Strong, Sustainable Insurance Business Competitive strengths gili ע 8 Contribution to Group eurolife Genikes Insurance Genikes Insurance 13% % Group's Non-NII 1Q2023 7% 6% 100% owner in both life eurolife and non-life insurance Well established, market leaders 10% % Group's Profit Contribution 6% 4% High Return on Equity & resilient profitability 1Q2023 Capital light business Synergies between Insurance and the Banking business 1) Profit After Tax - contribution to the Group before Voluntary Exit Plans and market impact Average Annual €33 mn¹ Normalised Profit- contribution to Group since 2019 Average Annual €18 mn Ordinary Dividends since 2019 €20 mn €13 mn €11 mn €7 mn 25#26eurolife Cyprus Market eurolife Profitable Life Insurance Business - Valuable and Sustainable Contribution Key Facts Key Highlights 2%1 of GDP Life Insurance premiums vs 4.0% for Europe Further Market penetration potential 5.5% CAGR C.27%2 20%3 ROE 2019-2022 Cyprus market premium growth vs 10.8% for Eurolife Growing above Cyprus market #1 in Market share Cyprus Life Insurance Leader Profitable in all years of operations >200% Solvency ratio³ . . #1 in Life Insurance in Cyprus; established in 1989 Attractive tax incentives for Life insurance holders in Cyprus Strong agency and bancassurance channels Solid brand awareness (>95%) and excellent customer satisfaction (9/10) Life Insurance policies are predominantly Unit Linked >€550 mn Assets under Management (leader at >35% market share) > €10 mn dividends to Group each year Continuous portfolio growth with increasing profitability >70k customers Highest # of individuals customers in Cyprus with 72k life and 17k health 2) 723 1) Source: Insurance Europe 2020 3) Total regular income for Life, Health & Occupational Pension, FY2022 Based on 1Q2023 financials 26#27eurolife Successful Distribution Model will Drive Further Growth Complimentary distribution Focused more on agency network... % of individual new business premiums, FY2022 ...by strengthening agency network and Growth expected to continue CAGR +6% bancassurance model Agency network Bancassurance 26% 162 37 > 371 391 338 293 > 120 Other 28 74% 249 125 Life 92 Agency network Product mix Life is the major product line... 2022 premiums by product: Occupational pension Group life 4% Life protection 7% 24% Life savings 11% Health 50% 4% Group business 2019 2020 2021 2022 1Q2023 ...with high profit margin 2022 operating profit by product: Health 15% Group Life 11% 74% Individual Life, Protection & Occupational pension 2019 2020 2025 27#28eurolife Market Leader with Potential for Further Penetration Well positioned amongst peers Leader in Life insurance¹ in a concentrated market... ...and in Unit linked Funds under management Consistently increasing market % (total market %1) 26.7% 21.8% 16.0% > 35.2% 22.9% 14.6% > 26.7% 23.0% 23.8% 25.0% eurolife Peer 1 Peer 2 eurolife Peer 1 Peer 2 FY2019 FY2020 FY2021 FY2022 FY20205 With further growth prospects Low Penetration of Cyprus vs Europe Penetration: Total Life premiums/ GDP 1) 4% > 2% CY EU Total regular income for Life, Health & Occupational Pension, FY2022 Low Density of Cyprus Vs Europe Density: Total Life premiums / Inhabitant (€) 1,178 462 CY EU 28#29eurolife Clear and Consistent Strategy with Increased Ambition Ambition To be achieved by.... 2025 Targets ר Further penetrate Life insurance market in Cyprus Enhance leading market share > Continue successful distribution model to accelerate new business Embed digital transformation to enhance customer experience . Pursuing new market segments • • Cross-sell opportunities with the Bank in the area of Occupational Pensions and appealing products/services to extend customer base Continue strengthening the agency force, optimising regional market coverage Further leverage on bancassurance Increase productivity with data analytics to enhance cross selling/upselling Enhance customer service via a holistic servicing model approach Further develop digital channel for servicing and efficient cost management +6% CAGR Regular Income (2022-2025) 29#30Insurance Genikes Cyprus Market Genikes Insurance Key Facts c.1.7%1 of GDP Profitable Non-Life Insurance Business - Valuable and Sustainable Contribution Non-Life Insurance vs 2.5% for Europe Key Highlights 3.7% 2 CAGR 2019-2022 Cyprus market premium vs 5.8% for Genikes c.14%2 >20% ROE #2 in Market share Consistently #1 in profitability Highly profitable >180%³ Solvency ratio >100k customers High # of individuals customers in Cyprus with 99K individuals and 9K companies • • Well established since 1951 Strong bancassurance and agency channels Increasing market share in a highly fragmented market Continuous portfolio growth (19% in last three years) Solid brand awareness (>90%) and excellent customer satisfaction (8.4/10) Consistent dividends to Group each year • Initiated shift to digital products Ongoing efficiency and service quality enhancement through digitalisation and organisational structure optimisation 1) Source: Insurance Europe 2020 723 2) 3) Excluding A&H of life companies, FY2022 Based on 1Q2023 financials 30#31Genikes Insurance Well Positioned with Complimentary Distribution Complimentary distribution Three distribution channels % of premiums, FY2022 Agency Network 22% Growth in bancassurance leveraging on Bank's leading position Premiums through bancassurance (€ mn) Growth also achieved through Direct sales and the Agency network Premiums (€ mn ) CAGR +5% CAGR >8% 59 58% 20% Bancassurance > 50 29 26.0 26.3 28.2 29.7 24 Direct 26 30 2019 2020 2021 2022 2019 2022 2025 Other Bancassurance Well positioned amongst peers #2 in Total market share in a fragmented market Premiums Market shares 1 2022 14.6% 13.7% 9.8% > Peer 1 1) Excluding A&H of life companies Genikes Insurance Peer 2 #1 in Property market share (high margin product) Business mix Premiums Market shares¹ 2022 - Property % of premiums, FY2022 Other 24.0% 10% Liability 17.7% 14.5% > 14% Genikes Insurance Peer 1 Peer 2 Motor 26% 50% Property 31#32Genikes Insurance Most Profitable Non-Life Company in Cyprus, with Potential to Further Penetrate the Market High profitability More profitable than the market in all major classes Profit margins by class¹ Highest share of market profits Shares in market profits (%)¹ 32% 29% 26% 26% 24% Strategy for prudent underwriting 21% 19% 20% 19% standards and careful growth in Motor 10% 11% results in a high profit margin in a low > margin class 29% 21% 15% -2% Property Motor Liability A&H Other Total Genikes Market With further growth prospects Low Penetration of Cyprus vs Europe 2 Penetration: Total P&C premiums/GDP 2.5% 1.7% Genikes Insurance Peer 1 Peer 2 Low Density of Cyprus vs Europe 2 Density: Total P&C premiums / Inhabitant (€) Consistently increasing market share³ % > 694 394 CY EU CY EU 1) 2021 data 2) Source: Insurance Europe 2020 3) Excluding A&H of life companies 13.7% 13.1% 12.6% FY2020 FY2021 FY2022 FY20205 32#33Genikes Insurance Clear and Consistent Strategy with Increased Ambition Ambition ר To be achieved by.... Further penetrate the non-life insurance market in Cyprus Grow the bancassurance potential to leverage on Bank's strong market share Continue promoting and enhancing the digital sales offering through the Bank's mobile app 2025 Targets >8% CAGR Enhancing Increase market share underwriting quality, claims Total Premium management and automation • Optimise synergies with life insurance. Income (2022-2025) Continue successful distribution model to accelerate new business • Pursuing profitable segments and products • Simplify procedures to enhance efficiency and service quality Embed digital transformation to enhance customer experience and efficiency • Transform into a customer centric business 33#34Digital and Jinius spotlight Demetris Nicolaou Chief Digital Officer 34#35Leverage Leading Digital Capabilities to Serve Customers and the Economy Expand the Bank's digital offerings Accelerate digital adoption and digital sales Be the driver of the national digital economy ° $ तील Creating shareholders value Improved efficiency: Branch rationalisation • • Cost efficiency FTE savings Increasing digital sales Opportunities to cross sell • New revenue streams 55 35#36Our Digital Transformation Journey 2022 Mobile Cheque Deposit 2017 Digital Transformation Program begins 2019 eAccounts ApplePay 2018 New BOC Mobile App Al based Personal Financial Management Tools - MoneyFit GooglePay 2023 QuickLoans QuickHub onwards 2020 Digital Signatures Connection with Government Portal Ariadne 2021 New customer onboarding Card management Digital Insurance products Enhance and launch new digital products and improve customer experience 36#37The QuickHub Era 个 QuickHub Everyday needs Borrow Save Open an account Get a new card Offer Car hire purchase Personal loan Notice account Fixed deposit account Get your insurance Car Get it done New Deposit a cheque Update your contact info Home and content Link other Banks 12:30 37#38Our Journey has Enabled a Best in Class Digital Offering and Embraced by Customers Leading position Making digital channels a "one-stop shop" for our customers Multi-channel offering Digital transactions ratio 79% +15 p.p. 94% 2019 2022 Leading digital functionality and continuing innovation Active users (k) 2022 412 246 ВОС Peer 1 Award Wining Digital Offering Best Digital Bank in Cyprus 2019-2022 By Global Finance Magazine 94% digital transactions ratio 12:30 t QuickHub Everyday needs Engagement and Transaction Ratios 94% Digitally transactions ratio 79% 87% Open an account Get a new card 83% Digitally engaged 69% customers Borrow Save ☑ Offer Car hire purchase Personal loan Digital deposits ratio 10% Dec 2019 Fixed deposit Notice account account Get your insurance 19 Car Get it done New Deposit a cheque 8 உ Update your contact info Home and content 52% increase in active users Active users count (#'000) 427 +52% Mar 2023 Active Digital 281 378 users Link other Banks Active Mobile Banking users 173 218 49 Active Quickpay users Dec 2019 Mar 2023 38#39... Transforming the Bank and Creating Value to Shareholders From Enabling Cost optimisation To Driving sales and revenue Scaling up digital transformation Improve customers' experience and business efficiency while enhancing service offering Bank committed to continue investing Progressing to accelerating and enhancing digital offerings QuickLoans 60% New to Lending customers QuickLoans disbursed 75% Enhance user experience and launch new digital products of eligible personal loans 79% Digital transactions ratio 94% Improve traffic generation and optimise conversion Building digital foundations 281k Active digital users ↑ 52% 427k Cross-selling banking products to individual and business digital economy platforms clients 123 Branches 86 Branches 60 +30% 4,355 FTEs 3,672 FTEs +21% 2,883 2017 2019 Note 1: Launched on 12 Jan 2023 1Q2023 2023+ 39#40J!ՈԼՍՏ by Bank of Cyprus 40 40#41J!NIUS The Vision To become the go-to platform for Businesses and Individuals by facilitating transactions through online ecosystems supported by Banking products and services. Orchestrator of Cyprus Digital Economy Ecosystem Driven Platform to Create Opportunities for All Calendar Spend Time Social Bank Branches ATMs Rate Portal Login Business partners J! Financial Health A Real Estate GPS Connectivity energy 41#42JINIUS The Concept What? To Connect Businesses Together . • Facilitate end to end business transactions (invoicing, tendering, remittance etc.) Enable businesses to optimise and digitise their operations and provide to them tools and services to enhance their performance To Connect Consumers with Businesses • Facilitate end to end integrated economy services (products marketplace, bookings etc) Through a suite of lifestyle products and services offering convenience, personalisation, transparency and security • Why? To Support the Digital Economy • Facilitate the digitisation of national economy Enable efficiencies for our clients To Promote the Bank of Cyprus brand Establish stronger bonds with customers reinforcing the value of existing banking relationships • Be there at the point of need for clients creating cross- selling opportunities Bank of Cyprus Supported by Bank Products / Services • Bank products and services offered digitally • Online payments via bank's systems • Available to existing and new customers To Diversify revenues • Subscriptions and transaction commissions 42#43J!NIUS An Ecosystem Example: Mini-Markets & Kiosks Invoicing & Payments, before Jinius Mini Market 4. Order accepted, paper invoice received and signed 5. Delivery person collects cash or cheques and takes them to supplier Orders products Supplier 1. Order placed 2. Invoice printed 3. Order ready for delivery, with invoice 6. Accounting team counts payments 7. Buyer manually inputs the ☐ ☐ invoice information to the system invoice and files printed 100 suppliers x 2-4 per month 8. Supplier takes payments to the Bank for deposit 1,500 points of sale x 2-4 per month 43#44J!NIUS An Ecosystem Example: Mini-Markets & Kiosks Invoicing & Payments, the Jinius way Mini Market 3. Order is delivered Invoice received Orders products JINIUS ✓ Invoice paid by Bank of Cyprus No paper Eliminating cheques No cash Easier account reconciliation Invoice sent ✓ Real-time update Supplier 1. Order placed 2. Order ready for delivery 087 Efficient communication Save money and time Free up resources 44#45J!NIUS Long Term Vision for B2B and B2C Services For companies Business to Business Services Advanced Analytics, Offers, Promotions Company Ratings Payments due and Cash Flow Mgmt. Financial and Insurance Products B2B Trading Electronic Invoicing Remittance Mgmt. Tenders Management Business Ecosystem Ö For Consumers Business to Consumer Services Personalised Analytics, Offers and Promotions Ratings and Consumer Communities Payments due Mgmt. Financial and Insurance Products J! porters Loyalty scheme Property and Motor transactions Services Bookings Products Marketplace Demographic Bank Branch AIMA 45#46J!NIUS Reflections of 2022, the Focus and Vision for 2023 and Beyond 2022 2023 and beyond Launching and evolving first services What comes next Launched first B2B services Approx. 1,500 businesses onboarded Key technical capabilities established Continue building and evolving B2B Services Continue and escalate the adoption drive Launch first B2C service - Products Marketplace Jinius costs are included in the Bank's profitability projections; potential additional revenue upside 46#47Financial Outlook Eliza Livadiotou Executive Director Finance 47#48What Makes Bank of Cyprus Different Highly liquid balance sheet • Sticky deposit base; one of the lowest loan to deposit ratios in Europe One of the most geared banks to higher rates; 2023 NII to reach 2x 2019-2021 average Diversified business model Highly profitable Solid capital position & generation • • Non-NII sustainable revenue streams offsetting NII headwinds in a lower interest rate environment • Strong recovering profitability; NII growing rapidly Improved efficiency on successful cost initiatives Strong capital position after absorbing restructuring actions organically • Strong organic capital generation going forward Resumption of dividend payments after 12 years • Accruing 30% payout ratio for 20231, equivalent to 8% yield • • Payout ratio expected to build prudently and progressively to 30-50%² Commitment to further shareholder distributions 1) For compliance with CRR an estimated final dividend at a payout ratio of 30% of the Group's adjusted recurring profitability was accrued in line with the Group's approved dividend policy. Any recommendation for a dividend is subject to regulatory approval 2) Of adjusted recurring profitability: Profit after tax before non-recurring items (attributable to the owners of the Company) taking into consideration the AT1 coupon 48#49Highly Liquid Balance Sheet (€ bn) 25.4 Other assets 3.4 Net loans 10.0 39% >95% of loan book is variable based 25.4 Other liabilities 4.3 Equity 2.1 8% Fixed income portfolio 2.7 11% Fixed income portfolio; expanding carefully Customer deposits 19.0 75% TLTRO III proceeds 2.0 36% Cash, balances 7.3 with Central Banks As at 31 March 2023 Total Assets 36% of total assets held in cash with central banks Total Liabilities & Equity Loan to deposit ratio at 53% One of the lowest loan to deposit ratios in Europe 59% deposits insured Average retail deposit size of €27k 49 49#50NII-Highly Geared to Rising Rates Due to Strong Liquidity and Sticky Retail Funding Outlook Highly sensitive P&L to interest rate movements . 2023 NII upgraded to >€650 mn • 2024 NII expected to exceed €625 mn • 2025 NII expected to be lower than 2024, reflecting lower projected ECB depo rates (2.5%) Drivers Careful credit expansion, prudent interest rate and pass-through assumptions • Highly liquid balance sheet • NII bottomed out; reverted to growth on the back of higher rates Average ECB depo rate -0.40% -0.50% 0.10% 3.0% 3.1% € mn NII 370 344 296 >650 >625 162 2019 2021 2022 2023 2024 1Q2023 Sticky deposit base; low pass-through rate experienced so far NII sensitivity¹ to parallel shift in interest rates (annualised) • Careful growth in fixed income portfolio • Factoring in increased MREL issuance cost • Careful long-term liquidity management • Considering actions to offset NII headwinds from potentially future lower rates Y1 +60 bps² -60 bps² Total €70 mn -€77 mn 1) Refer to slide 68 for key simplifying assumptions 2) 75 bps shift in USD interest rates 50#51NII-Prudent Loan Growth, Defending Margins New lending and performing book to grow in line with economic growth Outlook New lending and performing book to grow by c.4% p.a. from 2022-2025 Drivers • • • • • • Economic growth expected to continue at annual average of c.4% from 2022-2025 Maintain leading market share whilst safeguarding pricing Defend interest margin via the introduction of fixed interest rate loan products Competitive pressure on lending rates International and shipping loan portfolio to grow to c.€1 bn (c. €0.7 bn as at 31 March 2023) Help deploy EU Recovery & Resilience Fund (2021-2026: €1.2 bn) CAGR +4% € bn 2.0 2.1 0.6 FY2019 FY2022 FY2023 FY2024 FY025 Performing gross loan book CAGR +4% € bn 9.8 9.2 Dec 19 Dec 22 Dec 23 Dec 24 Dec 25 95% of performing loan book is variable based 9% Euribor 17% 52% Base rate MRO Other 22% 51#52NII-Sticky Deposit Base Resulting in Modest Deposit Pass-Through Resilient deposit pass-through¹; gradually increasing at sustained Outlook 2023-2024 • Assumptions updated to reflect resilient pass- through Gradual increase in Time and Notice deposit pass- through to 50% by June 2024 (previously expected by December 2023) Gradual change in deposit mix; Time and Notice deposits from 30% to c.45% by June 2024 and to 50% by December 2024 (previously expected by December 2023) levels of 50% Cost (bps) Current 2025 • • Time and Notice deposit pass-through to remain stable at 50% Deposit mix: Time and Notice deposits to remain stable at c.50% Factoring in higher wholesale funding costs through further MREL issuances 1) Calculated as a percentage of the cost of Time and Notice deposits over average 6m Euribor rate of the period 4Q2022 1Q2023 1 0 Time & Notice Total deposits 20 31 7 10 Time & Notice pass-through c.7% c. 10% Deposit mix: Time and Notice deposits to remain at c.50% € bn Time & Notice 17.5 34% 19.0 29% 19.0 30% 50% Savings, Current & Demand Dec 21 Dec 22 Mar 23 Dec 23 Dec 24 52#53NII-Careful, Low-Risk Expansion of Fixed Income Portfolio, Subject to Market Conditions Outlook . Conservative growth of fixed income portfolio to reach c.15% of total assets³, broadly in line with average of EU peers1 Drivers • • Gradually deploy excess liquidity to expand fixed income portfolio Maintain low-risk, diversified fixed income portfolio with short average duration and high average rating; 2) - 23 3) • 2.1 years for amortised cost portfolio • 0.4 years for FVOCI portfolio Maintain prudent interest rate risk management; • Majority of FVOCI hedged for interest rate risk Excluding Greek banks Excluding TLTRO III proceeds Subject to market conditions Fixed Income portfolio % assets² 8% 8% 9% 11% 12% 2.75 € bn 2.50 0.42 0.45 1.92 1.74 1.71 FVTPL 0.02 0.02 0.73 FVOCI 0.89 0.66 2.33 2.05 Amortised 0.83 1.03 1.19 cost Dec 19 Dec 20 Dec 21 Dec 22 Mar 23 Diversified, highly rated fixed income portfolio to increase to c.15% by Dec 20243 € bn 2.75 0.14 A1 0.97 Aa3 Average yield of 1Q2023 new 0.31 Aaa investments: 3.61% 0.49 A1 Other financial & other corporations Financial Institutions Supranationals Other Governments 0.84 Ba1 Cyprus Government Mar 23 53#54Non-NII - Net F&C Income Remains an Important Contributor to Group's Revenues Outlook Net fee and commission income expected to grow by c.3% (2022-2024), net of liquidity and NPE sales servicing fees (c. €21 mn p.a.), driven by: • economic growth • higher volume of transactions • As a reminder, liquidity fees and NPE sale-related servicing fees terminated in December 2022 and in February 2023 respectively Non-NII expected to continue covering c.80% of total operating expenses Drivers Net F&C income to grow by c.3% mainly driven by economic growth 192 150 21 CAGR +3%1 Net F&C 171 FY2019 FY2022 FY2023 FY2024 Liquidity fees & NPE sales servicing fee Non-NII expected to continue covering c.80% of total operating expenses² • Improve cross-selling to under-penetrated customers 96% 80% 82% c.80% • Enhance digital and other capital-light sales (cards, wealth, insurance) Average c.80% 70% Non-NII/ Total OPEX Grow insurance revenue; by 6% p.a. for life insurance and >8% for non-life for 2022-2025 FY2019 FY2020 FY2021 FY2022 FY2023 • Potential additional revenue upside from Jinius 1) 2) CAGR growth for 2022-2024 where 2022 F&C excludes liquidity fees of c.€16 mn and NPE related servicing fee of c. €5 mn Excluding special levy on deposits and other levies/contributions 54#55Costs-Significant Improvement in Cost to Income Ratio Outlook • 2023 cost to income ratio expected at sub 40s benefiting from higher revenues Substantial optimisation of workforce and branches facilitated by digital transformation 82% 83% Digitally engaged customers • 2024 cost to income ratio at c.40s • As rates normalise, C/I ratio expected to stabilise to c.mid 40s by 2025 Drivers • Successful completion of efficiency actions in 2022 • • 69% 86 3,672 60 60 # branches 2,899 2,883 # FTEs Inflation in Cyprus expected to reduce to c.3%¹ in 2023 Some upward pressure on costs due to: • • • Investment in transformation and digitisation Salary increases impacted by increased cost of living adjustment (COLA)² Staff reward costs (variable pay), driven both by delivery of the Group's strategy as well as individual performance 2019 2020 2021 2022 Mar-23 Cost to income ratio¹ at c.40% by 2024 60% 60% 49% sub-40s c.40% Total Opex 340 347 343 ΠΠ 12 1) Projections in accordance with Ministry of Finance FY2020 FY2021 FY2022 FY2023 FY2024 2) COLA represents a salary increment of 4.4% effective from 1 January 2023, representing c.50% on prior year's inflation rate 55#56Asset Quality-Conservative Assumptions on Cost of Risk and Asset Quality Outlook Maintaining high asset quality and prudent cost of risk • 2023 NPE ratio expected to remain <4.0% and to drop to <3.0% by 2025 Cost of risk bps 118 • Prudent Cost of Risk assumptions; maintaining wide range of 50-80 bps due to continued macroeconomic uncertainty • Cost of risk to normalise towards 40-50 bps over the medium-term NPE ratio Cost of risk to normalise towards 40-50 bps over the medium-term 25.2% 50-80 57 12.4% 44 44 4.0% 3.8% <4.0% <3.0% Drivers • • Maintain limited NPE inflows via: • High quality loan origination; 99% of new lending since 2016 are performing • Prudent underwriting standards • • Meticulous assessment of customers' repayment capabilities Proactive solutions to quickly support customers in financial distress No current signs of asset quality deterioration Coverage Dec 20 Dec 21 Dec 22 Mar 23 Dec 23 Dec 25 62% 59% 69% 73% NPE inflows remain under control (Єmn) 16 17 14 11 7 19 20 13 10 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 56#57Real Estate Management Unit (REMU) Outlook • REMU stock expected to halve by December 2025 • Continue to dispose REMU properties comfortably above Properties sold exceed properties acquired since 2017 (€bn) 1.41 (1.58) book value and close to open market value • Average sales of c. €200 mn p.a. since 2017 1.44 • Going forward, REMU inflows expected to reduce rapidly reflecting the significant decline in NPES 1 Jan 2017 Additions Sales Organic sales consistently close to OMV; comfortably above BV 119% 114% 113% 112% 107% 94% 88% 90% 86% 91% 1Q2019 1Q2020 1Q2021 1Q2022 1Q2023 Net proceeds to BV Gross proceeds to OMV (0.02) (0.20) 1.05 C.0.5 Transfer Impairment to/from & FV loss 31 Mar 2023 Dec 25 own properties Inflows substantially reduced with completion of de-risking Net inflows/ (outflows) € bn 0.26 (0.10) (0.01) 0.01 (0.22) (0.07) 0.52 0.43 Inflows (€ bn) 0.20 0.15 0.09 0.02 Sales (€ bn) -0.14 -0.26 -0.21 -0.16 -0.24 -0.53 2017 2018 2019 2020 2021 2022 57#58Upgrading 2023-2024 Targets Net Interest Income FY2023 targets (February 2023) FY2024 targets (February 2023) Sustainable NII Updated FY2023 targets Updated FY2024 targets >650 mn >625 mn €520-550 mn (40-50% yoy) Cost to Mid-40s Income Ratio Around similar levels to 2023 sub 40% ROTE1 >13% >13% > >17% <4% c.40% >14% (>17% based on 15% CET1 ratio) <4% NPE Ratio <5% n/a To normalise towards 40- To normalise towards 40- Cost of Risk 50-80 bps 50 bps over the medium- term 50-80 bps 50 bps over the medium- term Building progressively to 30%-50% Dividend 1) 2) Intention to commence from 2023 onwards ROTE calculated as annualised profit after tax (attributable to owners of the Company) divided by quarterly average shareholders' equity minus intangible assets Of adjusted recurring profitability: Profit after tax before non-recurring items (attributable to the owners of the Company) taking into consideration the AT1 coupon pay-out² 58#59Our Shareholder Focus • Raising our 2023 ROTE guidance to >17% Highly Profitable . ROTE of >13% in 2025 • ROTE of >16% on 15% CET1 ratio4 in 2025 Highly Capital Generative • Expected to generate 200-250 bps per annum of CET1 pre distributions Current CET1 ratio 15.2%1, expected to increase significantly • Committed Dividend resumed after 12 years, paid out of 2022 profits to Shareholder distributions • . Payout ratio building prudently and progressively towards 30-50% on adjusted recurring profitability² Accruing 30% payout ratio³ for 2023 (equivalent to 8% yield) 1) 2) 3) Includes unaudited/unreviewed profits for 1Q2023 and for compliance with CRR an accrual for an estimated final dividend at a payout ratio of 30% of the Group's adjusted recurring profitability in line with the Group's approved dividend policy. Any recommendation for a dividend is subject to regulatory approval Profit after tax before non-recurring items (attributable to the owners of the Group) taking into account distributions under other equity instruments such as the annual AT1 coupon. For compliance with CRR an estimated final dividend at a payout ratio of 30% of the Group's adjusted recurring profitability was accrued in line with the Group's approved dividend policy. Any recommendation for a dividend is subject to regulatory approval 4) CET1 ratio for 2025 expected to be at c.19% 59#60• Strong Organic Capital Generation with Healthy Buffers Strong capital position; building up rapidly and organically... • CET1>16% for 2023 and c.19% for 2025 . Beyond 2023, capital generation of 200-250 bps p.a pre distributions CET1 (FL) • Modest RWAs growth . • CET1 comfortably above capital requirements (including P2G), paving the way for meaningful shareholder distributions; Significant buffer to offset potential external shocks Building progressively towards a 30-50% payout ratio on adjusted recurring profitability1 CET1 ratio >16% 15.0% 13.7% 12.9% c.19% Dec 20 Dec 21 Dec 22 2 Dec 23 2025 15.0% 30-50% payout 200-250 bps p.a. 1) Profit after tax before non-recurring items (attributable to the owners of the Group) taking into account distributions under other equity instruments such as the annual AT1 coupon Dec 222 Organic capital Dividends as per div policy 2) FL CET1 ratio as at 31 December 2022 restated for dividend distribution out of FY2022 earnings of c.20 bps and adjusted for the €50 mn dividend distributed to the Bank (IFRS 17 benefit) Capital in excess of 15% CET1 ratio Dec 25 00 60#61Bank of Cyprus of Tomorrow Bank of Cyprus Bank of Cyprus Holdings KOIHO ΚΥΠΡΙ Strength c.19% CET1 ratio Significant surplus capital KOINO ΚΥΠΡΙ WN Profitability >13% ROTE (>16% based on 15% CET1 ratio) Shareholder distributions 30-50% Dividend payout ratio 2025 Asset quality <3% NPE ratio 61#62Agenda Topic Update of Cyprus macroeconomic outlook Strategy Update & Business Lines overview Speaker Chris Patsalides, Special Advisor to the President of Cyprus on Economic Affairs Panicos Nicolaou, Group Chief Executive Officer Insurance spotlight Digital and Jinius spotlight Louis Pochanis, Director Insurance Business Demetris Nicolaou, Chief Digital Officer Medium Term Financial Outlook Eliza Livadiotou, Executive Director Finance Q&A 62#63Key Information and Contact Details Contacts Investor Relations & ESG Tel: +35722122239, Email: [email protected] Annita Pavlou Manager Investor Relations & ESG Tel: +357 22 122740, Email: [email protected] Elena Hadjikyriacou ([email protected]) Andri Rousou ([email protected]) Stephanie Olympiou ([email protected]) Dafni Georgiou ([email protected]) Executive Director Finance & Legacy Eliza Livadiotou, Tel: +35722 122128, Email: [email protected] Listing: LSE - BOCH, CSE - BOCH/TPKH, ISIN IE00BD5B1Y92 Visit our website at: www.bankofcyprus.com 63#64Appendix 64#65Beyond Banking - ESG key Highlights Environment GHG Emissions - Loan portfolio BOC Oncology Center 60% Social of the diagnosed cases in Cyprus treated at the Centre. (CO2 tonnes in ths) Business Loans 1.162 Commercial Real Estate 36 €1.1 mn Mortgages 56 47,567 Motor Vehicles 28 €18 mn loans to renewable energy projects reduction in paper printing 12% 200t paper recycled in 2022 10% increase in the use of renewable energy from 2021 8% 42% (Carbon Neutral by 2030) reduction in Scope 1 and Scope 2 from 2021 financial contribution by BOC in 2022 Patients registered and treated at the Centre Support CY 170+ network members in response of crises, disasters and assistance €880k+ contribution to society Well at Work 25+ events on menta, physical, social and financial health of employees 1,300+ Employee participation 70% Governance of independent non-executive directors in Board of Directors 39% representation of women at key positions below the Extended ExCo level 40% of women participation in the Board of Directors 27% ≥30% (2030 Target) representation of women in management bodies (ExCo and Extended ExCo) MSCI ESG RATINGS AA CCC B BB BBB A AA AAA 1) Data as at 31 December 2022 65#66AC Glossary & Definitions Amortised cost bonds Adjusted recurring profitability Advisory and other restructuring costs Allowance for expected loan credit losses (previously 'Accumulated provisions') AT1 Book Value Carbon neutral CET1 capital ratio (transitional basis) CET1 Fully loaded (FL) Cost to Income ratio Cost of Risk CRR DD Digitally engaged customers ratio Digital transactions ratio EBA ECB FVTPL FVOCI The Group's profit after tax before non-recurring items (attributable to the owners of the Company) taking into account distributions under other equity instruments such as the annual AT1 coupon. Comprise mainly (a) fees of external advisors in relation to: (i) disposal of operations and non-core assets, and (ii) customer loan restructuring activities, and (b) the cost of the tender offer for the Old T2 Capital Notes, where applicable. Allowance for expected loan credit losses (previously 'Accumulated provisions') Comprises (i) allowance for expected credit losses (ECL) on loans and advances to customers (including allowance for expected credit losses on loans and advances to customers held for sale where applicable), (ii) the residual fair value adjustment on initial recognition of loans and advances to customers (including residual fair value adjustment on initial recognition on loans and advances to customers classified as held for sale where applicable), (iii) allowance for expected credit losses for off-balance sheet exposures (financial guarantees and commitments) disclosed on the balance sheet within other liabilities, and (iv) the aggregate fair value adjustment on loans and advances to customers classified and measured at FVPL. AT1 (Additional Tier 1) is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013, as amended by CRR II applicable as at the reporting date. BV book value = Carrying value prior to the sale of property. The reduction and balancing (through a combination of offsetting investments or emission credits) of greenhouse gas emissions from own operations. CET1 capital ratio (transitional basis) is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013, as amended by CRR II applicable as at the reporting date. The CET1 fully loaded (FL) ratio is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013, as amended by CRR II applicable as at the reporting date. Cost-to-income ratio comprises total operating expenses (as defined) divided by total income (as defined). Loan credit losses charge (cost of risk) (year-to-date) is calculated as the annualised 'loan credit losses' (as defined) divided by average gross loans. The average gross loans are calculated as the average of the opening balance and the closing balance, for the reporting period/year. Default Definition. This is the ratio of digitally engaged individual customers to the total number of individual customers. Digitally engaged customers are the individuals who use the digital channels of the Bank (mobile banking app, browser and ATMs) to perform banking transactions, as well as digital enablers such as a bank-issued card to perform online card purchases, based on an internally developed scorecard. This is the ratio of the number of digital transactions performed by individuals and legal entity customers to the total number of transactions. Transactions include deposits, withdrawals, internal and external transfers. Digital channels include mobile, browser and ATMs. European Banking Authority. European Central Bank. Fair value through profit or loss Fair value through other comprehensive income bonds. 99 66#67Glossary & Definitions GBV Gross Book Value. Gross Loans Gross Sales Proceeds Group IB, W&M IBS Legacy exposures Liquid assets Loan credit losses (PL) (previously 'Provision charge') Market shares MSCI ESG Rating Net Proceeds Net loans and advances to customers Performing loan book (previously non-legacy) Net zero emissions New lending Gross loans comprise: (i) gross loans and advances to customers measured at amortised cost before the residual fair value adjustment on initial recognition (including loans and advances to customers classified as non-current assets held for sale where applicable) and (ii) loans and advances to customers classified and measured at FVPL adjusted for the aggregate fair value adjustment. Gross loans are reported before the residual fair value adjustment on initial recognition relating mainly to loans acquired from Laiki Bank (calculated as the difference between the outstanding contractual amount and the fair value of loans acquired) amounting to €78 mn as at 31 March 2023 (compared to €86 mn as at 31 December 2022 and €149 mn as at 31 March 2022). Additionally, gross loans include loans and advances to customers classified and measured at fair value through profit or loss adjusted for the aggregate fair value adjustment of €208 mn as at 31 March 2023 (compared to €211 mn as at 31 December 2022 and €312 mn at 31 March 2022). Proceeds before selling charge and other leakages. The Group consists of Bank of Cyprus Holdings Public Limited Company, "BOC Holdings" or the "Company", its subsidiary Bank of Cyprus Public Company Limited, the "Bank" and the Bank's subsidiaries. International Banking, Wealth and Markets. Servicing exclusively international activity companies registered in Cyprus and abroad and not residents. Legacy exposures are exposures relating to (i) Restructuring and Recoveries Division (RRD), (ii) Real Estate Management Unit (REMU), and (iii) non-core overseas exposures. Cash, placements with banks, balances with central banks and bonds. Loan credit losses comprise: (i) credit losses to cover credit risk on loans and advances to customers, (ii) net gains on derecognition of financial assets measured at amortised cost and (iii) net gains on loans and advances to customers at FVPL, for the reporting period/year. Both deposit and loan market shares are based on data from the CBC. The Bank is the single largest credit provider in Cyprus with a market share of 42.4% as at 31 March 2023 compared to 40.9% as at 31 December 2022, and 41.9% as at 31 March 2022. The use by the Company and the Bank of any MSCI ESG Research LLC or its affiliates ('MSCI') data, and the use of MSCI Logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation or promotion of the Company or the Bank by MSCI. MSCI Services and data are the property of MSCI or its information providers and are provided "as-is" and without warranty. MSCI Names and logos are trademarks or service marks of MSCI. Proceeds after selling charges and other leakages. Net loans and advances to customers comprise gross loans (as defined) net of allowance for expected loan credit losses (as defined, but excluding allowance for expected credit losses on off- balance sheet exposures disclosed on the balance sheet within other liabilities). Performing loan book is the total gross loans and advances to customers (as defined) excluding the legacy exposures (as defined). The reduction of greenhouse gas emissions to net zero through a combination of reduction activities and offsetting investments. New lending includes the disbursed amounts of the new and existing non-revolving facilities (excluding forborne or re-negotiated accounts) as well as the average year-to-date change (if positive) of the current accounts and overdraft facilities between the balance at the beginning of the period and the end of the period. Recoveries are excluded from this calculation since their overdraft movement relates mostly to accrued interest and not to new lending. 67#68Glossary & Definitions Key simplifying assumptions NII sensitivity Non-interest income Non-recurring items NPE ratio NPES An instantaneous and sustained parallel movement in EUR and USD interest rates. Static balance sheet in size and composition. Assets and liabilities whose pricing is mechanically linked to market / central bank rates assumed to reprice accordingly. 50% pass through assumption for term deposits (Fixed and Notice). This sensitivity is not a forecast of interest rate expectations, and the Bank's pricing decisions in the event of an interest rate change may differ from the assumptions underlying this sensitivity. Accordingly, in the event of an interest rate change the actual impact on Group NII may differ from that presented in this analysis. Non-interest income comprises Net fee and commission income, Net foreign exchange gains/(losses) and net gains/(losses) on financial instruments and (excluding net gains on loans and advances to customers at FVPL), Net insurance result, Net gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties, and Other income. Non-recurring items as presented in the 'Unaudited Condensed Consolidated Income Statement - Underlying basis' relate to the following items, as applicable: (i) Advisory and other restructuring costs organic, (ii) Provisions/net profit/(loss) relating to NPE sales, (iii) Restructuring and other costs relating to NPE sales, and (iv) Restructuring costs relating to the Voluntary Staff Exit Plan. NPEs ratio is calculated as the NPEs as per EBA (as defined) divided by gross loans (as defined). As per the European Banking Authorities (EBA) standards and European Central Bank's (ECB) Guidance to Banks on Non-Performing Loans (which was published in March 2017), non-performing exposures (NPEs) are defined as those exposures that satisfy one of the following conditions: (i) number of days past due. (ii) The borrower is assessed as unlikely to pay its credit obligations in full without the realisation of the collateral, regardless of the existence of any past due amount or of the Defaulted or impaired exposures as per the approach provided in the Capital Requirement Regulation (CRR), which would also trigger a default under specific credit adjustment, diminished financial obligation and obligor bankruptcy. 3333 Material exposures as set by the CBC, which are more than 90 days past due. Performing forborne exposures under probation for which additional forbearance measures are extended. Performing forborne exposures previously classified as NPEs that present more than 30 days past due within the probation period. From 1 January 2021 two regulatory guidelines came into force that affect NPE classification and Days-Past-Due calculation. More specifically, these are the RTS on the Materiality Threshold of Credit Obligations Past-Due (EBA/RTS/2016/06), and the Guideline on the Application of the Definition of Default under article 178 (EBA/RTS/2016/07). The Days-Past-Due (DPD) counter begins counting DPD as soon as the arrears or excesses of an exposure reach the materiality threshold (rather than as of the first day of presenting any amount of arrears or excesses). Similarly, the counter will be set to zero when the arrears or excesses drop below the materiality threshold. Payments towards the exposure that do not reduce the arrears/excesses below the materiality threshold, will not impact the counter. For retail debtors, when a specific part of the exposures of a customer that fulfils the NPE criteria set out above is greater than 20% of the gross carrying amount of all on balance sheet exposures of that customer, then the total customer exposure is classified as non performing; otherwise only the specific part of the exposure is classified as non performing. For non retail debtors, when an exposure fulfils the NPE criteria set out above, then the total customer exposure is classified as non performing. Material arrears/excesses are defined as follows: (a) Retail exposures: Total arrears/excess amount greater than €100, (b) Exposures other than retail: Total arrears/excess amount greater than €500 and the amount in arrears/excess in relation to the customer's total exposure is at least 1%. For further information please refer to the Annual Financial Report 2022. 68 99#69Glossary & Definitions NSFR OMV Operating profit p.p. Profit/(loss) after tax and before non-recurring items (attributable to the owners of the Company) Profit/(loss) after tax - organic (attributable to the owners of the Company) Qoq Restructured loans Return on Tangible equity (ROTE) after tax and before non-recurring items Return on Tangible equity (ROTE) RRD RWAs Special levy on deposits and other levies/contributions Total Capital ratio Total operating expenses The NSFR is calculated as the amount of "available stable funding" (ASF) relative to the amount of "required stable funding" (RSF). The regulatory limit, enforced in June 2021, has been set at 100% as per the CRR II. Open Market Value. The operating profit comprises profit before Total loan credit losses, impairments and provisions (as defined), tax, (profit)/loss attributable to non-controlling interests and non-recurring items (as defined). percentage points. This refers to the profit or loss after tax (attributable to the owners of the Company), excluding any 'non-recurring items' (as defined). This refers to the profit or loss after tax (attributable to the owners of the Company), excluding any 'non-recurring items' (as defined, except for the 'advisory and other restructuring costs - organic'). Quarter on quarter change. Restructuring activity within quarter as recorded at each quarter end and includes restructurings of NPEs, performing loans and re-restructurings. Return on Tangible Equity (ROTE) after tax and before non-recurring items is calculated as Profit/(loss) after tax and before non-recurring items (attributable to the owners of the Company) (as defined) (annualised), - (based on year to date days)), divided by the quarterly average of Shareholders' equity minus intangible assets at each quarter end. Return on Tangible Equity (ROTE) is calculated as Profit/(loss) after tax (attributable to the owners of the Company) (as defined) (annualised - (based on year to date days)), divided by the quarterly average of Shareholders' equity minus intangible assets at each quarter end. Restructuring and Recoveries Division. Risk Weighted Assets. Relates to the special levy on deposits of credit institutions in Cyprus, contributions to the Single Resolution Fund (SRF), contributions to the Deposit Guarantee Fund (DGF), as well as the DTC levy, where applicable. Total capital ratio is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013, as amended by CRR II applicable as at the reporting date. Total operating expenses comprise staff costs and other operating expenses. It does not include (i) special levy on deposits and other levies/contributions (ii) 'advisory and other restructuring costs- organic', (iii) restructuring and other costs relating to NPE sales, or (iv) restructuring costs relating to the Voluntary Staff Exit Plan. (i) Special levy on deposits and other levies/contributions amounted to €11 mn for 1Q2023 (compared to €11 mn for 4Q2022 and €10 mn for 1Q2022) (ii) 'Advisory and other restructuring costs-organic' amounted to €1 mn for 1Q2023 (compared to €1 mn for 4Q2022, and €1 mn for 1Q2022) (iii) Restructuring costs relating to NPE sales for 1Q2023 amounted to €0.2 mn (compared to €0.3 mn for 4Q2022, and €1 mn for 1Q2022) and (iv) Restructuring costs relating to the Voluntary Staff Exit Plan (VEP) for 1Q2023 was nil (compared to nil for 4Q2022 and €3 mn for 1Q2022). 69#70Glossary & Definitions Total income Total loan credit losses, impairments and provisions T2 Underlying basis Total income comprises net interest income and non-interest income (as defined). Total loan credit losses, impairments and provisions comprises loan credit losses (as defined), plus impairments of other financial and non-financial assets, plus (provisions)/net reversals for litigation, claims, regulatory and other matters. Tier 2 Capital. This refers to the statutory basis after being adjusted for certain items as explained in the Basis of Presentation. Yoy Year on year change. 70