Income Statement and Eurosystem Funding Review slide image

Income Statement and Eurosystem Funding Review

Net Interest Income and Net Interest Margin Net Interest Income (€ mn) and Net Interest Margin (bps) 390 Interest income from Laiki Recapitalisation bond Net interest income (other) NIM 423 394 382 381 263 248 231 225 44 43 26 26 225 25 205 219 205 199 200 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 Evolution of Yield of Loans, Cost of Deposits and Customer Spread in Cyprus operations * Jan-15 Feb-15 Mar-15 % 1Q2015 • 1Q2015 Group Net Interest Income (NII) at €225 mn; Group Net Interest Margin (NIM) at 3,94%, compared to 3,81% for 4Q2014 • • NII and NIM continue to reflect market conditions in Cyprus and the composition of the Group's funding, with Eurosystem funding accounting for 29% of assets as at 31 March 2015. Following CBC's decision to reduce the deposit interest rate cap ceiling from 3% to 2% above market rates, the Bank lowered its base rate lending rates in March 2015 by 1%, with lower lending rates expected to help economic activity Customer spread in Cyprus at 4,34% for 1Q2015 5,73% 5,92% 5,82% 5,45% 1,39% 1,45% 1,41% 1,31% 4,34% 4,47% 4,41% 4,14% III Yield on Loans Cost of Deposits Customer spread Bank of Cyprus KOINO WKYNРIW * It relates to all currencies 9
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