Investor Presentaiton
B. Preliminary Group Financial Results - Underlying Basis (continued)
B.2. Balance Sheet Analysis (continued)
B.2.3 Funding and Liquidity
Funding
Funding from Central Banks
At 31 December 2022, the Bank's funding from central banks amounted to €1,977 mn, which relates to ECB funding,
comprising solely of funding through the Targeted Longer-Term Refinancing Operations (TLTRO) III, compared to €2,952
mn at 30 September 2022 and to €2,970 mn as at 31 December 2021.
The Bank borrowed an overall amount of €3 bn under TLTRO III by June 2021, despite its comfortable liquidity position,
given the favourable borrowing terms, in combination with the relaxation of collateral requirements.
The Bank exceeded the benchmark net lending threshold in the period 1 March 2020 - 31 March 2021 and qualified for the
beneficial rate of -1% for the period from June 2020 to June 2021. The NII benefit from its TLTRO III borrowing for the
period from June 2020 to June 2021 stood at c.€7 mn and was recognised over the respective period in the income
statement.
In addition, the Bank has exceeded the benchmark net lending threshold in the period 1 October 2020 - 31 December 2021
and qualified for a beneficial rate for the period from June 2021 to June 2022. The NII benefit from its TLTRO III borrowing
for the period from June 2021 to June 2022 stood at c.€15 mn and was recognised over the respective period in the income
statement.
The Group recognised an additional net NII benefit of c.€8 mn from the TLTRO III borrowing for the period 24 June 2022
to 22 November 2022, of which c.€5 mn was recognised in the income statement in 4Q2022.
Following the changes in the terms of the TLTRO III announced by the ECB in October 2022, and given the Bank's strong
liquidity position, the Bank proceeded with the repayment of €1 bn TLTRO III funding in December 2022.
Deposits
Customer deposits totalled €18,998 mn at 31 December 2022 (compared to €18,792 mn at 30 September 2022 and to
€17,531 mn at 31 December 2021) broadly flat in the fourth quarter and increased by 8% since the year end.
The Bank's deposit market share in Cyprus reached 37.2% as at 31 December 2022, compared to 37.1% as at 30
September 2022 and to 34.8% as at 31 December 2021. Customer deposits accounted for 75% of total assets and 81% of
total liabilities at 31 December 2022 (4 p.p. up since 31 December 2021).
The net loans to deposits (L/D) ratio stood at 52% as at 31 December 2022 (compared to 55% as at 30 September 2022
and to 57% as at 31 December 2021 on the same basis), reflecting the ongoing increase in customer deposits and the
derecognition of Helix 3 portfolio following completion.
Subordinated liabilities
At 31 December 2022, the Group's subordinated liabilities (including accrued interest) amounted to €302 mn (compared to
€317 mn at 30 September 2022 and €340 mn at 31 December 2021) and relate to unsecured subordinated Tier 2 Capital
Notes (T2 Notes').
The T2 Notes were priced at par with a fixed coupon of 6.625% per annum, payable annually in arrears and resettable on
23 October 2026. The maturity date of the T2 Notes is 23 October 2031. The Company will have the option to redeem the
T2 Notes early on any day during the six-month period from 23 April 2026 to 23 October 2026, subject to applicable
regulatory approvals.
Debt securities in issue
At 31 December 2022, the Group's debt securities in issue (including accrued interest) amounted to €298 mn (compared
to €299 mn at 30 September 2022 and €303 mn at 31 December 2021) and relate to senior preferred notes.
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