Bank of Cyprus Credit Ratings and Financial Position
COR of 44 bps for 1Q2023; resilient credit portfolio quality
1.18%
0.43%
Bank's IFRS 9 Macroeconomic assumptions
Base line
GDP rate
Unemployment rate
0.57%
0.44%
0.44%
0.44%
0.75%
0.61%
2023
2.7%
6.9%
2024
2.5%
6.8%
FY2020
(0.04%)
FY2021
FY2022
1Q2022
1Q2023
bps
44
41
45
42
44
61
51
50
45
9
42
Charge
10
7
4
(bps)
6
15
48
24
35
36
16
9
10
1Q2022
2Q2022
3Q2022
4Q2022
1Q2023
•
Reversal
(bps)
-7
-9
COVID-19
Interest on net NPEs not received in cash
New lending
Stage 3
Stage 1 & 2
-17
Cost of risk of 44 bps, flat qoq and yoy mainly reflecting:
•
•
releases on management overlays for performing book in specific
sectors (including tourism) due to continuing strong loan
performance and expected improved sector performance
loan credit losses on Stage 2 and Stage 3 exposures following
post model adjustments to capture uncertain macroeconomic
conditions and conservative assumptions
Ongoing monitoring of asset quality and customer behaviour; no signs of
asset quality deterioration to date
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