Group Financial Results
Group Financial Results for the year ended 31 December 2020
Revenue outlook: short-term stabilisation, while building a less capital intensive
revenue growth model
Revenue remains under pressure in the near term following acceleration of balance
sheet de risking; Helix 2 reduces NII by €7 mn per quarter (slide 57); Interest on Net
NPEs not received in cash, fully provided
- Multiple initiatives put in place to deliver NII and less capital intensive non interest
income with focus on fees, insurance and non-banking business
NII initiatives
-
TLTRO borrowing increased by €1.7 bn in Mar 2021; potential NII benefit of up to €10.6
mn for the period Mar 2021 to Jun 20222
- Grow performing book by c.10% over the medium term
Performing book to grow by c.10%
Net loans (€ bn)
12.0
10.7
c.+10%
Legacy 3.4
9.9
1.8
0.9
Performing
8.7
8.9
9.0
Dec 2018
Dec 2019
Dec 2020
Medium-
term
target
-
Grow international and shipping lending
Efforts to improve credit spreads
- Price away or price correctly deposits through liquidity fees
Fee and commission income initiatives
―
Extension of liquidity fees to wider customer group as of February 2021
FY2020
Medium term
Fee and commission
income / Total Assets
c.70 bps
>
c.100 bps
Total Revenues /
RWAS
c.5%
>
c.6%
-
Boost fee & commission income through new price list as of February 2021
Estimated positive impact of c.€13 mn p.a. of the above initiatives
Increase average product holding through cross selling to under-penetrated
customer base
Introduce Digital Economy Platform to generate new revenue sources, leveraging
the Bank's market position, knowledge and digital infrastructure
Revenues/Total
Assets
1)
2)
Pro forma for Helix 2 (Portfolio A and B). Calculations on a pro forma basis which assume legal completion of the transaction
Based on current ECB rates and provided the lending thresholds set by ECB are met
Bank of Cyprus Holdings
c.260 bps
>
c.280bps
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