Investor Presentaiton

Significant progress made on Group KPIs Well on track to meet 2017 targets - A clear plan of action to achieve new Medium Term Targets Key Pillars & Plan of action Category Key performance indicators Medium Dec- Dec- 2014 2015 Targets 2017 Term Targets <30% 1. Drastically reduce problem loans ° 90+ DPD ratio 53% 50% Intensify restructuring and workout activities of delinquent borrowers Increase pace of restructurings and focus on more complex and older cases on the back of the foreclosure law • REMU to on-board, manage and dispose of properties acquired • Boost deposit franchise, leveraging on increasing customer confidence and improving macroeconomic conditions Access Debt Capital Markets on the back of improved ratings, stronger financial soundness and better prospects Access ECB funding Direct lending into promising sectors to fund the recovery of the Cypriot economy Diversify income stream by boosting fee income from international business, wealth, and insurance Asset 90+ DPD 41% 48% 40%-50% >50% quality coverage Provisioning 3,6% 4,3% <1,0% <1,0% charge 1 ELA % Assets; 28%; 16%; € bn €7,4 bn €3,8 bn Fully repay 2. Normalise funding structure; Eliminate • • ELA ° Funding Net Loans % 141% 121% 100%-120% Deposits 3. Focus on • CET1 Capital 14,0% 14,0% >12% >15% (transitional) core markets Net interest 3,9% 3,8% ~3,25% ~3,00% margin • Fee and Margins and commission 13% 15% Increase >20% income/total efficiency income 4. Achieve a lean operating model Tangible savings through a targeted reduction program for operating expenses • • Introduce appropriate technology/processes to enhance product distribution channels and reduce operating costs Introduce HR policies aimed at enhancing productivity Cost to income ratio 37% 40% 40%-45% 40%-45% New loan origination, while maintaining lending yields Expand the UK franchise by leveraging the UK subsidiary Balance Sheet Total assets € bn €26,8 bn €23,3 bn 5. Deliver returns Deliver appropriate medium-term risk-adjusted returns >€25 bn IFRS9 impact, which is effective as from 1 January 2018, has not been taken into account for the purpose for the targets. Targets are set on the basis of the present regulatory environment. DINO Bank of Cyprus 19

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