Investor Presentaiton
Cost of risk' reduced to 76 bps for 2Q2020
4.30%
4.00%
2.80%
1.70%
ıl.I...
FY2014
1.39%
1.00% 1.12%
0.59%
0.80%
FY2015 FY2016 FY2017 FY2018 FY2019 1H2020
Group Financial Results for the six months ended 30 June 2020
Mainly impact of
deterioration of
macro-economic
outlook in 1H2020
Update of IFRS 9 macroeconomic assumptions for the Bank driving increase in COR
by 59 bps in 1H2020
Base Scenario
GDP
Unemployment rate
2020
1Q2020
-6.9%
2Q2020
-6.3%
1Q2020
9.1%
2Q2020
9.2%
2021
5.4%
5.6%
7.6%
8.0%
bps
123
90
89
200
76
200
173
152
88
123
55
30
111
2.
58
58
56
53
•
7:
7:
116
6
29
40
48
58
29
14
•
2Q2019
3Q2019
4Q2019
1Q2020
2Q2020
-21
-76
-84
COVID-19
Interest on net NPEs not received in cash
New lending
Stage 3
Stage 1 & 2
Cost of risk of 139 bps for 1H2020, of which 59 bps (€38 mn) reflect the initial
impact of IFRS 9 Forward Looking Information (FLI) driven by deterioration of
macroeconomic outlook recognised in 1H2020
COVID-19 related charge of 30 bps (€10 mn) in 2Q2020
Cost of risk of 105 bps for 2Q2020, when excluding one-off reversal of 59 bps
and COVID-19 related charge of 30 bps
In addition,
•
Helix 2 loss of €68 mn and loan credit losses of €21 mn for potential
future NPE sales recorded in 2Q2020
•
Other impairments of €25 mn on specific, large, illiquid REMU properties
recorded in 2Q2020
•
Interest on Net NPEs not received in cash, fully provided (€18 mn in 2Q2020)
(1) Loan credit losses on customer loans including off-balance sheet exposures, net of gains/(losses) on derecognition of loans and advances to customers and change in expected cash flows over average gross loans
Bank of Cyprus Holdings
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