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Group Financial Results

Cost of risk' of 118 bps for FY2020, as expected 1.18% Mainly impact of 1.12% deterioration of macro- 1.00% economic outlook in 1Q2020 0.43% 0.75% FY2018 FY2019 FY2020 Group Financial Results for the year ended 31 December 2020 Base line 2020 GDP rate -5.8% Unemployment rate 7.1% 2021 4.0% 7.4% 2022 3.9% 6.3% bps 200 76 97 99 • 200 152 88 30 107 110 Charge (bps) 58 17 37 53 33 • Cost of risk of 118 bps for FY2020 (€149 mn), of which 43 bps (€54 mn) reflect the impact of IFRS 9 Forward Looking Information (FLI) driven by deterioration of macroeconomic outlook recognised in FY2020 Cost of risk of 99 bps for 4Q2020 (€31 mn), of which 37 bps (€11 mn) COVID-19 related 43 40 58 51 14- 14: 16 . Interest on net NPEs not received in cash, fully provided (€13 mn in 4Q2020) 1Q2020 2Q2020 3Q2020 4Q2020 Reversal -10 -11 (bps) -76 1) COVID-19 Interest on net NPEs not received in cash New lending Stage 3 Stage 1 & 2 Loan credit losses charge (cost of risk) (year to date) is calculated as the annualised 'loan credit losses' (as defined) divided by average gross loans. The average gross loans are calculated as the average of the opening balance and the closing balance for the reporting period/year. Bank of Cyprus Holdings 36
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