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Investor Presentaiton

Asset Quality Top 20 group exposures Top 20 customer groups exposure € bn Top 20 90+DPD ratio 78% 79% 79% Top 20 90+ DPD € bn Top 20 90+DPD provision coverage 80% 73% 46% 41% 42% 41% 3,51 2,74 3,42 2,71 3,39 2,69 3,21 2,56 Dec-14 Mar-15 Jun-15 Sep-15 47% 3,15 2,30 Dec-15 Top 20 group exposures reduced by 10% during FY2015 to €3,15 bn at 31 December 2015; 90+ DPD ratio for Top 20 group was reduced to 73% at 31 December 2015, while the 90+ DPD provision coverage improved to 47% During 4Q2015, about 6 clients of the Bank's top exposures (or parts of group exposures) reached a consensual agreement for the restructuring of their lending with the Bank. Some of these cases have been executed in 4Q2015 contributing materially to the reduction of 90+ DPD, whilst further completions are expected in 1Q2016. Set up of Real Estate Management Unit (REMU) The Bank has set up REMU in order break the systemic inertia that exists today with defaulting borrowers in the real estate sector by taking ownership of assets, reducing unsustainable debt burden of both corporate and retail borrowers, and assisting also the Cyprus economy into recovery. The Bank recognises that the real estate market poses significant challenges but remains confident that with measured and professional approach underpinned by a genuine real estate focus and support from external advisors and all stakeholders, the Bank can crystallise benefits for itself and the economy. Main objectives of the REMU are: (a) provide solutions for distressed borrowers, (b) accelerate the recovery process for both the Bank and the local real estate market, (c) to strengthen the Bank's balance sheet and (d) to monetise such assets at the appropriate time. DINO Bank of Cyprus 17
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