Investor Presentaiton
Group Financial Results for the six months ended 30 June 2020
Income Statement
€ mn
Net Interest Income
Non interest income
Total income
Total expenses
1H2020
1H20191
2Q2020
1Q20201,2
qoq%
yoy%
168
170
83
85
-2%
-1%
120
163
60
60
0%
-26%
288
333
143
145
-1%
-13%
(180)
(208)
(87)
(93)
-6%
-14%
Operating profit
108
125
56
52
7%
-13%
Loan credit losses
(87)
(87)
Impairments of other financial and non-financial assets
(29)
(10)
(Provisions)/reversal of provisions for litigation, claims,
regulatory and other matters
(4)
Total loan credit losses, impairments and provisions
Advisory and other restructuring costs-organic
(Loss)/profit after tax-Organic (attributable to the
owners)
(120)
(94)
(6)
(19)
Provisions/net loss relating to NPE sales, including
restructuring expenses²
(107)
Net loss of remeasurement of investment in associate
(CNP) classified as held for sale
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(23)
(64)
-63%
1%
(25)
(4)
(2)
(2)
10%
(50)
(70)
-28%
27%
(10)
(3)
(3)
0%
-39%
4
(23)
(104)
(3)
(21)
Reversal of impairment of DTA and impairment of other
tax receivables
101
(Loss)/profit after tax-attributable to owners
(126)
97
(100)
(26)
Net Interest margin (annualised)
1.90%
1.88%
1.88%
1.95%
-7 bps
+2 bps
NII decreased to €83 mn in 2Q2020, mainly due
to higher cash collections on interest not
previously recognized in 1Q2020, offset by lower
cost of deposits
Non-interest income of €60 mn for 2Q2020, flat
qoq
• Total expenses reduced to €87 mn in 2Q2020,
compared to €93 mn in 1Q2020, due to COVID-
19 related lower staff costs and seasonality of
Deferred Guarantee Fund contribution
• C/I ratio at 57%, broadly flat qoq
• Loan credit losses of €23 mn in 2Q2020,
reflecting cost of risk of 76 bps
•
Other impairments of €25 mn for 2Q2020, on
specific, large, illiquid REMU properties
Provisions/net loss relating to NPE sales of €104
mn for 2Q2020, including Helix 2 loss of €68 mn
and loan credit losses of €21 mn for potential
future NPE sales
Profit after tax-organic of €4 mn in 2Q2020
Cost to income ratio
62%
63%
61%
64%
-3 p.p.
Cost to income ratio adjusted for the
57%
59%
57%
58%
special levy and contributions to SRF and DGF
Cost of Risk (annualised)
EPS
Organic (€ cent)
1.39%
-4.3
1.34%
4.0
0.76%
0.8
2.00%
-1 p.p.
-124 bps
-5.1
+5.9
-1 p.p.
-2 p.p.
+5 bps
-8.3
Loss after tax of €100 mn for 2Q2020 and €126
mn for 1H2020
(1) The interest income, non-interest income, staff costs, other operating expenses and loan credit losses related to Project Helix are disclosed under 'Provisions/net loss relating to NPE sales, including restructuring expenses' since they are considered one-off items
(2) Provisions/net loss relating to NPE sales including restructuring expenses' refer to the net loss on transactions completed during each period, net loan credit losses on transactions under consideration and for potential further sales at each reporting date, as well as the restructuring
costs relating to these trades
Bank of Cyprus Holdings
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