Market Leader with Potential for Further Penetration
Costs-Significant Improvement in Cost to Income Ratio
Outlook
•
2023 cost to income ratio expected at sub 40s benefiting from
higher revenues
Substantial optimisation of workforce and branches facilitated by digital
transformation
82%
83%
Digitally engaged customers
•
2024 cost to income ratio at c.40s
• As rates normalise, C/I ratio expected to stabilise to c.mid 40s
by 2025
Drivers
•
Successful completion of efficiency actions in 2022
•
•
69%
86
3,672
60
60
# branches
2,899
2,883
# FTEs
Inflation in Cyprus expected to reduce to c.3%¹ in 2023
Some upward pressure on costs due to:
•
•
•
Investment in transformation and digitisation
Salary increases impacted by increased cost of living
adjustment (COLA)²
Staff reward costs (variable pay), driven both by delivery
of the Group's strategy as well as individual performance
2019
2020
2021
2022
Mar-23
Cost to income ratio¹ at c.40% by 2024
60%
60%
49%
sub-40s
c.40%
Total Opex
340
347
343
ΠΠ
12
1)
Projections in accordance with Ministry of Finance
FY2020
FY2021
FY2022
FY2023
FY2024
2)
COLA represents a salary increment of 4.4% effective from 1 January 2023, representing c.50% on prior year's inflation rate
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