Sustainable Bond Framework slide image

Sustainable Bond Framework

• Continuous reduction in NPES In 2018 sharp reduction by 50% in NPES due to NPES sale by Bank of Cyprus ("Helix", €2.7bn NPEs) and Cooperative Bank carve-out (€6.9bn NPE). In 2020 and 2021, Bank of Cyprus and Hellenic Bank reached further agreements for NPE portfolio sales. By the end of November 2022 NPEs dropped to €2.7 bn (10.5% of gross loans) and accumulated provisions stood at 52% of NPEs. Banks continue deleverage efforts and further sales of NPE portfolio are expected to drop further the NPES in the future. Non performing exposures, in EUR bn 28.4 30 27.3 24.2 20.9 3225 20 15 10 10 5 0 write-offs and Remaining reduction attributed to cash repayments, successful restructurings reclassified as settlement of debt via swaps of immovable property. Q4-2014 Q4-2015 Q4-2016 Q4-2017 10.4 9.1 5.1 3.0 2.7 Q4-2018 Q4-2019 Q4-2020 Q4-2021 11m_2022 performing, Gross loans breakdown, November 2022, in % 60% Performing not restructured (82.5%) 50% 40% Performing & restructured (7.0%) 30% 20% 10% Non-performing & restructured (5.0%) 0% Source: Central Bank of Cyprus, Ministry of Finance Non-performing not restructured (5.5%) Q4-2014 Q4-2015 Non performing exposures and provisions, in % Q4-2016 NPEs to Gross loans % Q4-2017 Q4-2018 Q4-2019 Q4-2020 Provisions to NPES % 20 20 Q4-2021 11m_2022 10.5% 52%
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