Performance and Capital Position Overview slide image

Performance and Capital Position Overview

Income Statement Review (1) (2) (3) € mn Total income Total expenses 1Q2016 4Q2015 qoq % 1Q20152 yoy % Key Highlights 1Q2016 244 253 -4% 274 -11% (99) (119) -17% (102) -3% 145 134 9% 172 -15% • A solid start to 2016 with a profit after tax of €50 mn Profit before provisions and impairments¹ Provisions for impairment of customer loans net of gains/(losses) on derecognition of loans and changes in expected cash flows (62) (630) -90% (110) -44% • Impairments of other financial and non financial assets (8) (24) -67% (1) Share of profit from associates 1 2 -65% 1 -57% • Profit/(loss) before tax, restructuring costs and discontinued operations 76 (518) 62 22% Tax Profit attributable to non-controlling interests (8) 8 (8) 2% (1) 1 1 Profit/(loss) after tax and before restructuring costs, discontinued operations and net profit on disposal of non- core asset 67 (509) 55 24% • Advisory and other restructuring costs³ (17) (16) 7% (8) 112% Loss from disposal group held for sale/discontinued operations (0) (18) • Net gain/(loss) on disposal of non-core assets 13 Profit/(loss) after tax 50 (512) 29 76% Net interest margin 3,63% 3,69% -6 bps 3,94% -31 bps Return on average assets (annualised) 0,9% -8,6% +9,5 p.p 0,4% +0,5 p.p Return on tangible equity (annualised) 6,7% -69,5% + 76,2 p.p 3,4% +3,3 p.p Cost-to-Income ratio 40% 47% -7 p.p 37% +3 p.p Total Income down by 4% Total Expenses down by 17% • Profit before provisions up by 9% Cost to Income ratio at 40% NIM maintained at 3,63% Profit before provisions and impairments, gains/(losses) on derecognition and changes on expected cash flows, restructuring costs and discontinued operations. 1Q2016 is not comparable to 1Q2015 given the significant deleveraging completed since then, including, among others, the repayment by the Republic of Cyprus of the sovereign bond held by the Bank and the disposal of the majority of the Russian operations during 3Q2015. Restructuring costs comprise mainly costs of external advisors in relation to disposal of operations as well as fees for customer loan restructuring activities which are not part of the effective interest rate, listing related expenses and other expenses including property transfer fees relating to the restructuring process of the Group and costs incurred in closing down branches and operations. Bank of Cyprus DINO 14
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