Market Leader with Potential for Further Penetration
NII-Careful, Low-Risk Expansion of Fixed Income Portfolio, Subject to Market Conditions
Outlook
.
Conservative growth of fixed income portfolio to
reach c.15% of total assets³, broadly in line with
average of EU peers1
Drivers
•
•
Gradually deploy excess liquidity to expand fixed
income portfolio
Maintain low-risk, diversified fixed income portfolio
with short average duration and high average
rating;
2)
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3)
•
2.1 years for amortised cost portfolio
•
0.4 years for FVOCI portfolio
Maintain prudent interest rate risk management;
•
Majority of FVOCI hedged for interest rate risk
Excluding Greek banks
Excluding TLTRO III proceeds
Subject to market conditions
Fixed Income portfolio
% assets² 8%
8%
9%
11%
12%
2.75
€ bn
2.50
0.42
0.45
1.92
1.74
1.71
FVTPL 0.02
0.02
0.73
FVOCI 0.89
0.66
2.33
2.05
Amortised
0.83
1.03
1.19
cost
Dec 19
Dec 20
Dec 21
Dec 22
Mar 23
Diversified, highly rated fixed income portfolio
to increase to
c.15%
by Dec 20243
€ bn 2.75
0.14
A1
0.97
Aa3
Average yield of
1Q2023 new
0.31
Aaa
investments: 3.61%
0.49
A1
Other financial & other corporations
Financial Institutions
Supranationals
Other Governments
0.84
Ba1
Cyprus Government
Mar 23
53View entire presentation