Investor Presentaiton

E. Strategy and Outlook (continued) KEY STRATEGIC PILLARS Strengthening asset quality Enhancing organisational resilience and ESG (Environmental, Social and Governance) agenda; by continuing to work towards building a forward-looking organisation with a clear strategy supported by effective corporate governance aligned with ESG agenda priorities ACTION TAKEN IN FY2022 and to date Completion of Project Helix 3 in November 2022 (sale of NPE portfolio with gross book value of €0.55 bn) Balance sheet de-risking continued in FY2022 with further c.€360 mn of organic NPE reduction NPE ratio reduced to 4.0% as at 31 December 2022, delivering the 2022 NPE ratio target of sub-5% For further information, please refer to Section B.2.5 'Loan portfolio quality' and Section D. 'Business Overview' First Bank in Cyprus joining the Partnership for Carbon Accounting Financials (PCAF) which enable the Bank to initiate the estimation of financed emissions (Scope 3) derived from loan portfolio Initiated the development of ESG questionnaire and ESG scorecard that will be introduced in loan origination process Concluded on the materiality assessment and identification of climate and environmental risks. Determined the decarbonisation strategy for Scope 1 and Scope 2 emissions Launch of low emission vehicle loan product (hybrid or electric) ⚫ Finalising the Sustainable Finance Framework which will enable the issue of Green/Social/Sustainable bonds . Provision of ESG training to the Board of Directors, Senior Management and all staff to increase awareness and skills Introduced the ESG internal portal communication as well as Green@Work which enable the employees to take energy efficient actions at work Launched <<AISTHISEIS» - Multi sensory museum experience for people with disabilities Introduction of a new visa debit card made from recycled plastic collected from the ocean For further information, please refer to Section D. 'Business Overview' • PLAN OF ACTION Prevent asset quality deterioration in an uncertain outlook Maintain strict discipline on new business NPE ratio target of <5% for 2023 remains unchanged Cost of risk target of 50-80 bps for 2023 remains unchanged, starting to normalise to 40-50 bps from 2024 onwards Set decarbonisation targets on specific sectors and asset classes Establish ESG questionnaire and ESG scorecard in the loan origination process Incorporate loan decarbonisation targets in the business strategy of the Bank Evolution of the ESG strategy with a continued focus on the climate and environmental risks Continue to embed ESG in the Bank's culture Continuous enhancement of structure and corporate governance • Invest in people and promote talent 34 34

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