Group Financial Results

Glossary & Definitions Group Financial Results for the year ended 31 December 2020 Tangible Collateral Total Capital ratio Total expenses Total income Total loan credit losses, impairments and provisions T2 Underlying basis Write offs Restricted to Gross IFRS balance. Total capital ratio is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013, as amended by CRR II applicable as at the reporting date. Total expenses comprise staff costs, other operating expenses and the special levy and contributions to the Single Resolution Fund (SRF) and Deposit Guarantee Fund (DGF). It does not include (i) 'advisory and other restructuring costs-organic', or (ii) any restructuring costs relating to NPE sales, or (iii) any restructuring costs relating to the Voluntary Staff Exit Plan, or (iv) the DTC levy. (i) 'Advisory and other restructuring costs-organic' amounted to €1 mn for 4Q2020 (compared to €3 mn for 3Q2020, €3 mn for 2Q2020, €3 mn for 1Q2020 and €8 mn for 4Q2019). (ii) Restructuring costs relating to NPE sales amounted to c.€1.5 mn for 4Q2020 (compared to Nil for 3Q2020, €1 mn for 2Q2020, €3 mn for 1Q2020 and €10 mn for 4Q2019). (iii) Restructuring costs relating to the Voluntary Staff Exit Plan amounted to €6 mn for 4Q2020 and FY2020 (compared to €81 mn for 4Q2019 and FY2019). (iv) The DTC levy amounted to €3 mn for 4Q2020 and FY2020 (compared to nil for FY2019). Total income comprises net interest income and non-interest income (as defined). Total loan credit losses, impairments and provisions comprises loan credit losses (as defined), plus impairments of other financial and non-financial assets, plus provisions for litigation, claims, regulatory and other matters. Tier 2 Capital This refers to the statutory basis after being adjusted for certain items as explained in the Basis of Presentation. Loans together with the associated loan credit losses are written off when there is no realistic prospect of future recovery. Partial write-offs, including non-contractual write-offs, may occur when it is considered that there is no realistic prospect for the recovery of the contractual cash flows. In addition, write-offs may reflect restructuring activity with customers and are part of the terms of the agreement and subject to satisfactory performance. Yoy Bank of Cyprus Holdings Year on year change 80

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