Investor Presentaiton
CET1 at 14.4% pro forma for Helix 25
min OCR (SREP) requirement for 2020 post ECB Announcement 4
Group Financial Results for the six months ended 30 June 2020
(-36 bps
17.9%
1.7%
14.3%
14.3%
14.4%
0.4%
(0.3%)
0.2%-
(0.1%)
-0.5%
(0.2%)
1.8%
(0.5%)
0.1%
9.7%
9.7%
CET1 31 Mar Operating
20201
Loan credit
profit
losses &
other
impairments
3
RWAs
Other
Amendments
to
capital
regulations
Other NPE
sales related
losses
Helix 2
CET1 30 Jun
2020 1,2
Helix 2
P&L
Impact
Release
of
RWAS
CET1 30 Jun
2020 pro
form a for
AT1
T2
1,2,5
Helix 2
•
•
Helix 2 reduces capital by 36 bps on completion
c.40 bps organic capital generation from operating profitability
Loan credit losses and other impairments³ reduced capital by
c.30 bps
c.50 bps capital benefit from amendments to capital regulations
Flexibility to operate below Capital Conservation Buffer (CCB)
and P2G, at least until end of 2022
_14.5%
Total
capital ratio
30 Jun 2020
pro forma 1,5
for Helix 2
Amendments in capital regulations in June 2020
•
Benefit recorded in 2Q2020
SME factor: c.+ 40 bps
Extension of IFRS 9 transitional arrangements: c.+10 bps
Benefit not yet recorded
Add back to CET1 of unrealised losses on government debt: c.+10 bps
No full deduction of software assets from CET1: c.+10 bps
Helix 2 benefit upon full payment of deferred consideration: +46 bps
Onsite inspection by the SSM on the stock of REMU properties completed
•
Findings relating to a possible prudential charge of up to c.50 bps, under review by SSM
Size and timing of impact, if any, uncertain
} G
OCR(SREP)- Overall Capital Requirement comprises the Total SREP Capital Requirement (Pillar 1 and Pillar 2 Requirement) plus
combined buffer requirements (capital conservation buffer, countercyclical buffer and systemic buffers)
Calculations on a pro forma basis assume completion of the transaction
+50
bps
+20
bps
1.
Allowing for IFRS 9 transitional arrangements
4.
2.
3.
The CET1 ratio for 30 June 2020, including the full impact of IFRS 9 amounted to 12.6% and 12.7% pro forma for Helix 2
Loan credit losses and other impairments include the net change of the prudential charges relating to specific credits and other items
5.
Bank of Cyprus Holdings
21View entire presentation