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Investor Presentaiton

Income Statement € mn Net Interest Income 1H2021 1H2020 2Q2021 1Q2021 qoq% yoy% 152 168 76 76 -1% -9% Non interest income 136 120 76 60 26% 12% Total income 288 288 152 136 11% 0% Total operating expenses¹ (171) (165) (89) (82) 7% 3% Operating profit 102 108 57 45 28% -6% Total loan credit losses, impairments and (50) (120) (24) (26) -6% -58% provisions Profit/(loss) after tax and before non- 51 recurring items² (13) 34 17 99% Advisory and other restructuring costs - (18) (6) (15) (3) organic Profit/(loss) after tax-Organic² 33 (19) 19 14 30% Exceptional items³ (32) (107) (26) (6) -70% Profit/(loss) after tax² 1 (126) (7) 8 Key Ratios Net Interest margin (annualised) 1.56% 1.90% 1.49% Cost to income ratio 64% 62% 62% 1.63% -14 bps 67% -5 p.p. -34 bps +2 p.p. Cost to income ratio excluding special levy on deposits and other 59% 57% 58% 60% -2p.p. +2 p.p. levies/contributions Cost of Risk (annualised) 0.61% 1.39% 0.52% 0.66% -14 bps -78 bps EPS5 before non-recurring items 11.24 (2.93) 7.48 3.76 3.72 14.17 (€ cent) Group Financial Results for the six months ended 30 June 2021 • • • • . . NII for 2Q2021 flat at €76 mn of which c.€8 mn relates NII from Helix 2; Helix 2 NII will be partially set off by the unwinding of the net present value and interest income of the deferred consideration Increase in % of AIEA held in liquids to c.50% (see slide 21), resulting in a dilutive impact on NIM which reduced to 1.49% for 2Q2021; Adjusting for the €3.0 bn TLTRO III4, NIM amounts to 1.66% for 2Q2021 Non interest income for 2Q2021 increased to €76 mn, driven mainly by higher net fee and commission income, higher net insurance income and higher revaluation gains on financial instruments (see slide15) Total operating expenses¹ increased to €89 mn for 2Q2021, up 7% qoq, mainly due to seasonally lower marketing, consultancy and professional fees in the previous quarter Profit after tax and before non-recurring items of €34 mn for 2Q2021 and €51 for 1H2021 Advisory and other restructuring costs-organic of €15 mn for 2Q2021 including €12 mn relating to the tender offer for existing Tier 2 notes After recognising exceptional costs of €26 mn relating to NPE sales (of which €14 mn related to the completion mechanics of Helix 2 which is expected to unwind over time) loss after tax of €7 mn for 2Q2021 and profit after tax of €1 mn for 1H2021 ROTE 5 before non-recurring items of 8.1% for 2Q2021 and 6.1% for 1H2021 1) Excluding special levy on deposits and other levies/contributions 2) Attributable to the owners of the Company 4) 3) Please refer to section B.3.4 "Profit/(loss) after tax (attributable to the owners of the Company)" of the 6M2021 FR Press Release 5) Removing the TLTRO from AIEA and the respective benefit recognised over the period from the NII Calculated using Profit/(loss) after tax and before non-recurring items Bank of Cyprus Holdings 8
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