Investor Presentaiton
Group Financial Results for the six months ended 30 June 2020
SREP requirement for 2020 at 9.7%, post ECB's capital relaxations for COVID-19
SREP requirements for 2020: CET1 ratio at 9.7%
SREP requirements for 2020 Total Capital ratio at 14.5%
O-SII 1
10.5%
0.5%
11.0%
1.0%
14.0%
O-SI|1
0.5%
CCB2
2.5%
14.5%
1.0%
2.5%
9.7%
CCB 2 2.5%
2.5%
1.0%
Pillar 2R
3.0%
3.0%
2.5%
Pillar 2R
3.0%
3.0%
Tier 2
2.0%
2.0%
1.7%
AT1³
1.5%
1.5%
Total
Pillar 1
4.5%
4.5%
4.5%
Pillar 1
Pillar 1
of 8%
4.5%
4.5%
2019
2020
2020
post ECB
announcement
2019
2020
•
.
Per EBA final guidelines on SREP and supervisory stress testing and the Single Supervisory Mechanism's (SSM) 2018 SREP methodology own funds held for the purposes of Pillar
Il Guidance cannot be used to meet any other capital requirements (Pillar 1, Pillar Il requirement or the combined buffer requirements), and therefore cannot be used twice4
In May 2020, the Bank received formal notification from the CBC in its capacity as National Resolution Authority, of the final decision by the Single Resolution Board (SRB), for the
binding minimum requirement for own funds and eligible liabilities (MREL) for the Bank, determined as the preferred resolution point of entry. The MREL requirement has been set at
28.36% of risk weighted assets as of 30 June 2019 and must be met by 31 December 2025. This MREL requirement would be equivalent to 18.54% of total liabilities and own funds
(TLOF) as at 30 June 2019. The MREL requirement is in line with the Bank's expectations, and largely in line with its funding plans5
The MREL ratio of the Bank as at 30 June 2020, calculated according to SRB's eligibility criteria currently in effect, and based on our internal estimate stood at 18.21% of RWAs
(1) The Central Bank of Cyprus (CBC) set the O-SII buffer for the Group at 2%. This buffer will be phased-in gradually, having started from 1
January 2019 at 0.5% and increasing by 0.5% every year thereafter, until being fully implemented (2.0%) on 1 January 2022. In April 2020
the CBC, as part of the COVID measures, decided to delay the phasing-in by 12 months (1 January 2023). As a result, the phasing-in of
0.5% on 1 January 2021 has been delayed for 12 months
(2) In accordance with the legislation in Cyprus which has been set for all credit institutions the applicable rate of the CCB was fully phased in
at 2.5% in 2019
Bank of Cyprus Holdings
(3) Additional Tier 1 Capital
(4) The new provisions are effective from January 2020
(5) This decision is based on the current legislation, it is expected to be updated annually and could be subject to subsequent changes by the
resolution authorities, especially considering the developments of the Bank Recovery and Resolution Directive (BRRD) and its
transposition into the local legislation
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