Investor Presentaiton
Buffer to MDA Restrictions Level & Distributable Items¹
Maximum Distributable Amount for BOCH
CET1 Ratios
14.3%
c. 10.0%
425 bps
0.3%
}
9.7%
CET1 30 Jun 2020
30 Jun 20203
MDA Threshold
Group Financial Results for the six months ended 30 June 2020
Unfilled
AT1 + T2
capacity
• The Bank and BOCH will proceed with a capital reduction process
which will result in the reclassification of up to c.€619 mn and €700 mn
of share premium to distributable reserves respectively
• Subject to approvals by ECB, Cyprus and Irish High Court
• No prohibition applies to the payment of coupons on any AT1 capital
instruments issued by the Company and the Bank²
• Significant CET1 MDA buffer³ (30 Jun 2020): ~425 bps (~€508 mn)
⚫ECB frontloaded the ability to use AT1 and T2 to meet P2R
requirement; increases CET1 and MDA buffer by c.131 bps
CET1
Ratio (%)
CET1
Req
Unfilled AT1 &
T2 Bucket
[ ] bps
Distance
to MDA
(1) Distributable Items definition per CRR
(2) Based on the SREP decisions of prior years, the Company and the Bank were under a regulatory prohibition for equity dividend distribution and therefore no dividends were declared or paid during years 2019 and 2018. Following the 2019 SREP decision, the Company and the
Bank are still under equity dividend distribution prohibition. This prohibition does not apply if the distributions are made via the issuance of new ordinary shares to the shareholders which are eligible as CET1 capital
(3) Including phasing in of O-SII buffer (+50 bps). The Central Bank of Cyprus (CBC) set the O-SII buffer for the Group at 2%. This buffer will be phased-in gradually, having started from 1 January 2019 at 0.5% and increasing by 0.5% every year thereafter, until being fully implemented
(2.0%) on 1 January 2022. In April 2020 the CBC, as part of the COVID measures, decided to delay the phasing-in by 12 months (1 January 2023). As a result, the phasing-in of 0.5% on 1 January 2021 has been delayed for 12 months
Bank of Cyprus Holdings
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