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Investor Presentaiton

Income Statement € mn FY2020 FY2019 4Q2020 3Q2020 909% Net Interest Income 330 344 80 82 -2% Non interest income 237 307 62 55 11% yoy% -4% -23% Total income 567 651 142 137 3% -13% Total operating expenses³ (340) (385) (91) (84) 7% -12% Operating profit 197 241 45 45 44 2% -18% Total loan credit losses, impairments (198) (178) (40) (38) 6% 11% and provisions (Loss)/profit after tax-Organic (16) 36 2 1 72% (attributable to the owners) Exceptional items¹ (155) (106) (51) 3 47% (Loss)/profit after tax-attributable to (171) (70) (49) 4 owners Key Ratios Net Interest margin (annualised) 1.84% 1.90% 1.75% 1.79% -4 bps -6 bps Cost to income ratio 65% 63% 69% 68% 1 p.p. 2 p.p. Cost to income ratio excluding special levy and contributions to 60% 59% 64% 62% 2 p.p. 1 p.p. SRF and DGF Cost of Risk (annualised) 1.18% 1.12% 0.99% 0.97% 2 bps 6 bps EPS Organic (€ cent) -3.66 7.97 0.42 0.24 0.18 -11.63 1) Exceptional items for FY2020 relate to €146 mn provisions/net loss of NPE sales including restructuring expenses, Voluntary Exit Plan cost of €6 mn, and levy in the form of guarantee fee relating to tax credits of €3 mn. For FY2019 exceptional items consist of loss from the sale of CNP Insurance of €21 mn, reversal of impairment of DTA and impairment of other tax receivables of €88 mn and provisions/net loss relating to NPE sales of €92 mn and Voluntary Exit Scheme of €81 mn Including restructuring expenses Including restructuring expenses 2) 3) Excluding Special Levy and contributions to SRF and DGF Bank of Cyprus Holdings • • Group Financial Results for the year ended 31 December 2020 NII for 4Q2020 at €80 mn as pressure on lending yields continues Non interest income for 4Q2020 increased to €62 mn, positively impacted by higher fee and commission income, as transactional volumes gradually recover post 1H2020 lockdown and higher REMU revaluation gains; non interest income for FY2020 reduced to €237 mn driven mainly by lower REMU gains, revaluation gains on financial instruments and other income, negatively impacted by COVID-19 Total operating expenses³ of €91 mn for 4Q2020, up 7% qoq driven mainly by higher operating expenses mainly due to seasonality; total operating expenses³ of €340 mn for FY2020, down successful 12% yoy, following the completion of a Voluntary Staff Exit Plan in 4Q2019 and lower operating expenses Provisions and impairments for 4Q2020 at €40 mn, including loan credit losses of €31 mn, driven mainly by the increase in provisions for litigations and other financial instruments • Exceptional items for 4Q2020 of €51 mn relate to provisions/net loss of NPE sales² of €42 mn, cost for targeted Voluntary Exit Plan of €6 mn and DTC levy of €3 mn • Loss after tax of €49 mn for 4Q2020 Loss after tax of €171 mn for FY2020 17
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