Investor Presentaiton

Drivers of NIM Composition of NII Effective yield on assets & cost of funding NIM NII (€ mn) 85 90 84 85 83 189 199 187 • 195 188 (bps) 110 3 4 • 107 - Non-Legacy -Legacy -Liquids Cost of funding 1 5 102 100 Liquids 6 95 29 Legacy 27 29 23 23 24 24 18 528 2- 576 560 530 485 452 Non-Legacy 74 76 75 72 22 15 75 335 338 330 324 338 Group Financial Results for the six months ended 30 June 2020 €5 mn annual potential NII benefit from the take up of €1 bn TLTRO III Challenging interest rate outlook continues to put pressure on the effective yield of liquids Loan yields: • Non-Legacy book yields remain under pressure mainly due to the continued lower interest rate environment and intense competition pressure Despite competitive pressures, efforts to improve credit spreads are underway Higher-yielding, higher-risk legacy loans are reducing as we successfully exit NPEs • 17 7 6 8 4 -43 -39 -38 -30 -25 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 Net derivative Other Subordinated -6 236 -3 -3 -3 -3 336 -3 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 -6 -6 -6 -6 -3 loan stock -5 -8 -12 Customer -8 -10 -15 deposits -18 -20 -22 Legacy book yields remain volatile Cost of funding: • The reduction of cost of deposits continues • Cost of deposits reduced by 3 bps in 2Q2020 and by 68 bps since year end 2017 (1) Cash, placements with banks, balances with central banks and bonds (2) Other includes funding from central banks and deposits by banks and repurchase agreements. For further details, please see slide 67 (3) Effective yield of liquid assets: Interest income on liquids after hedging, over average liquids (Cash and balances with central banks, placements with banks and bonds) (4) Effective yield of cost of funding: Interest expense of all interest bearing liabilities after hedging, over average interest bearing liabilities (customer deposits, funding from the central bank, interbank funding, subordinated liabilities) Bank of Cyprus Holdings 27

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