Bank of Cyprus Credit Ratings and Financial Position slide image

Bank of Cyprus Credit Ratings and Financial Position

Robust capital position with CET1 at 15.2%¹ and Total Capital ratio at 20.3%¹ min OCR requirement for 2023² Restated for FY2022 dividend³ 20.3% 3.0% 15.2% 0.5% (0.2%) 0.9% (0.7%) 15.5% 15.2% 2.1% (0.2%) (0.3%) 10.25% 15.10% CET1 31 Dec 2022 Organic Capital generation IFRS 17 (day 1 impact) RWAs Final Phasing in of IFRS 9 Other CET1 Accrued 31 Mar 20235 dividend CET1 31 Mar 2023 1 AT1 T2 Post-dividend Total Capital ratio 31 Mar 20231 • • • • Organic capital generation4 of c.90 bps in 1Q2023 Final phasing in of IFRS 9 impact of c.65 bps on 1 January 2023 IFRS 17 day 1 (1 January 2023) benefit of c.50 bps on insurance business equity distributed to the Bank as dividend in February 2023 The Group continues to monitor opportunities for the optimisation of its capital position including Additional Tier1 capital accrual Dividend distribution Total distribution of €22.3 mn out of FY2022 profitability, equivalent to c.20 bps of CET1 ratio as at 31 December 2022 Payout ratio of 14% out of FY2022 Group's adjusted recurring profitability (as reported in FY2022 Annual Report) For CRR compliance purposes, an accrual for dividend at a payout ratio of 30% of the Group adjusted recurring profitability for the period, in line with the Group's approved dividend policy7, was recognised Based on profit after tax before non-recurring items Includes unaudited/unreviewed profits for 1Q2023 F Includes unaudited/unreviewed profits for 1Q2023 and for compliance with CRR an accrual for an estimated final dividend at a payout ratio of 30% of the Group's adjusted recurring profitability in line with the Group's approved dividend policy. Any recommendation for a dividend is subject to regulatory approval 456 4) 5) 6) 23 2) OCR - Overall Capital Requirement (refer to slide 43) 3) Opening CET1 restated following ECB approval and BOD recommendation for a final dividend payment of €22.3 mn out of FY2022 profitability. Dividend payment is subject to shareholders approval at the AGM on 26 May 2022 7) Any recommendation for a dividend is subject to regulatory approval Profit after tax before non-recurring items (attributable to the owners of the Company) taking into consideration the AT1 coupon 23
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