Investor Presentaiton
Significant progress made on Group KPIs, with a clear plan of action to
achieve medium-term targets
Medium-
Key
Group
Group Cyprus
term
Category
performance
indicators
Dec-
Sep-
Sep-
2014
2015
2015
target
(2017) *
1. Reverse
90+ DPD
41%
41%
39%
40%-50%
coverage
Asset
quality
Provisioning
charge
3,6%
2,1% **
1,6%
<1,0%
Key Pillars & Plan of action
trend on
overdue
loans
2. Normalise
funding;
Eliminate
ELA
3. Focus on
• Continue restructuring, capitalising on the foreclosure
law
•
•
Seek FDI to enhance business viability
Re-cycle restructured loans into the lending business
for continued support and service
Boost deposits by leveraging on stronger capital
position
Access Debt Capital Markets on the back of improved
ratings, stronger financial soundness and better
prospects
Proceeds from disposal of non- core operations
Direct lending into promising sectors with a view to
funding the recovery of the Cypriot economy
Further diversify income stream by boosting fee
income from new sources in international business
and wealth
Eurosystem
Funding
funding % total
31%
22%
n.a
<25%
balance sheet
Basel 3
Capital
transitional
14,0%
15,6%
n.a
>12%
core
markets
in Cyprus
CET1
Net interest
3,9%
3,9%
3,7%
~3,25%
margin
Fee and
Margins
and
efficiency
commission
13%
15%
14%
Increase
income/total
income
4. Achieve a
lean
operating
model
°
Set-out a digital vision and introduce appropriate
technology to enhance product distribution channels
Introduce technology and processes to reduce
operating costs
• Introduce HR policies aimed at enhancing productivity
5. Deliver
returns
Cost to income
ratio
36%
38%
35%
40%-45%
• Strengthen governance and risk management to
deliver appropriate medium-term risk-adjusted returns
* Medium term target refers to the targets set as per the latest NDR presentation (available on the Group's website).
** Calculated as the provisions for impairment of customer loans, including provisions of discontinued operations, (in total €635 mn),
net of gains on derecognition and changes in expected cash flows on acquired loans (totalling €263 mn) over average gross loans
Bank of Cyprus
29
KOINO
WKYПPIW
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