Investor Presentaiton

Audited FY2015 financial results - Highlights . 90+ DPD1 down by €1,3 bn or 10% during FY2015; 90+ DPD ratio at 50% Improving Asset Quality Strong Capital Position • . • 90+ DPD provision coverage boosted by 7 percentage points to 48%; Elevated provision charges for 4Q2015 following the assumption changes in the Bank's provisioning methodology Intensify restructuring and workout activity Set up of Real Estate Management Unit (REMU) to take ownership of, manage and monetise real estate assets in settlement of customer obligations CET1 ratio (transitional basis) at 14,0%; Well above the minimum regulatory requirement of 11,75% CET1 ratio (fully loaded) at 13,1% Leverage ratio at 12,6%, one of the highest among EU peers, reflecting a very high RWA intensity of 85% Normalising Funding Structure • • • ELA reduced by €1,6 bn post 3Q2015 to a current level of €3,3 bn; Reduction of €8,1 bn since peak Customer deposits² increased by €1,6 bn or 12% during FY2015 Customer deposits increased to 61% of Total assets Income Statement Dominant Franchise in a recovering economy • Ratio of Loans to Deposits (L/D) improved to 121% Profit before provisions of €624 mn for FY2015 Provisions for impairment of loans of €630 mn for 4Q2015, with a full year charge of €959 mn for FY2015 Loss after tax from continuing operations and Loss after tax of €394 mn and €438 mn for FY2015, respectively Deposit market share of 28,2% at 31 December 2015; a 3,4 percentage points market share gain during 2015 . New lending of €0,6 bn during 2015 to support economic recovery and promising sectors Cypriot economy growing faster than expected; Exited from Troika MoU in March 2016 Bank of Cyprus (1) Loans in arrears for more than 90 days (90+ DPD) are defined as loans with a specific provision and loans past-due for more than 90 days. (2) Adjusted for the disposal of the Russian operations. 2

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