Financial Analysis and Currency Deposits slide image

Financial Analysis and Currency Deposits

Cost of risk of 41 bps for 2Q2022 1.18% 0.43% 0.57% 0.61% 0.21% 0.43% 0.75% 0.61% 0.40% -(0.04%) FY2020 FY2021 1H2021 1H2022 • bps 52 78 35 44 41 140 Charge (bps) 77 15 75 81 12 3-7- 51 50 17 12 71 =7= 56 36 35 36 10 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 Reversal -7 -9 (bps) -25 -46 -62 COVID-19 Interest on net NPEs not received in cash New lending Stage 3 Stage 1 & 2 Bank's IFRS 9 Macroeconomic assumptions Base line GDP rate Unemployment rate 2022 2.7% 6.2% 2023 3.0% 6.3% Cost of risk of 41 bps for 2Q2022 (€11 mn) includes: • • 18 bps (c.€5 mn) reflecting management overlays on sectors (eg: tourism, private individuals, transportation, construction and real estate) that maybe impacted by the ongoing geopolitical uncertainty and soaring energy prices resulting to pressure on domestic economy 5 bps (€1 mn) release due to the improved 2022 macro outlook for the Cypriot economy, compared to 1Q2022 projections 2022 COR outlook • Cost of risk expected at c.50 bps in 2022 33
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