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Investor Presentaiton

Buffer to MDA Restrictions Level & Distributable Items¹ Maximum Distributable Amount for BOCH CET1 Ratios 14.8% Group Financial Results for the year ended 31 December 2020 385 bps c..11.0% L-1.3% } 9.7% Unfilled AT1 + T2 capacity • The Bank and BOCH having obtained approval by their shareholders, the ECB and the Court of Cyprus and Irish High Court respectively, implemented a capital reduction process in Oct 2020, which resulted in the reclassification of c.€619 mn and €700 mn of share premium to distributable reserves respectively ⚫ No prohibition applies to the payment of coupons on any AT1 capital instruments issued by the Company and the Bank² • Significant CET1 MDA buffer³ (31 Dec 2020): c.385 bps (c.€448 mn) CET1 31 Dec 2020 31 Dec 20203 MDA Threshold CET1 Ratio (%) CET1 Req Unfilled AT1 & T2 Bucket Distance [ ] bps to MDA 72 1) 2) 3) Distributable Items definition per CRR Based on the SREP decisions of prior years, the Company and the Bank were under a regulatory prohibition for equity dividend distribution and therefore no dividends were declared or paid during years 2019 and 2018. Following the 2019 SREP decision, which will continue to be in effect in 2021, the Company and the Bank are still under equity dividend distribution prohibition. This prohibition does not apply if the distributions are made via the issuance of new ordinary shares to the shareholders which are eligible as CET1 capital Including phasing in of O-SII buffer (+50 bps). The Central Bank of Cyprus (CBC) set the O-SII buffer for the Group at 2%. This buffer will be phased-in gradually, having started from 1 January 2019 at 0.5% and increased by 0.5% every year thereafter, until being fully implemented on 1 January 2022. In April 2020 the CBC, as part of the COVID measures, decided to delay the phasing-in by 12 months (1 January 2023). As a result, the phasing-in of 0.5% on 1 January 2021 has been delayed for 12 months Bank of Cyprus Holdings 70
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