Group Financial Results H1 2016
Significant Progress made on Group KPIs
A clear plan of action to achieve Medium Term Targets
Category
Key performance
indicators
Dec-
2015
Jun-
2016
Medium
Term
Targets
1. Significantly
90+ DPD ratio
50%
44%
<30%
reduce
problem
loans
Asset
quality
90+ DPD coverage
48%
53%
>50%
Provisioning charge 1
4,3%
1,4%
<1,0%
ELA % Assets;
16%;
€ bn
€3,8 bn
11%;
€2,4 bn
Fully repay
ELA
Funding
Net Loans % Deposits
121%
110%
100%-120%
•
3. Focus on
•
14,0%
14,4%
>15%
core
2. Normalise
funding
structure;
Eliminate
markets
Key Pillars & Plan of action
°
Intensify restructuring and workout activity of delinquent
borrowers
Maintain increased 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
Deposit Growth; Wholesale and interbank market access
Retention of cash profits from operations; Proceeds from
deleveraging
Increase loan pool for the Additional Credit Claim ECB
framework
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
New loan origination, while maintaining lending yields
Expand the UK franchise by leveraging the UK subsidiary
Capital
CET1 (transitional)
Net interest margin
3,8%
3,6%
~3,00%
•
Margins and
efficiency
Fee and commission
income/total income
15%
15%
>20%
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
40%
42%
40%-45%
Balance
Sheet
Total assets
5. Deliver
returns
Deliver appropriate medium-term risk-adjusted returns
€23,3 bn
€22,7 bn
>€25 bn
1) 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.
Bank of Cyprus
KOINO
KYMPI
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