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Investor Presentaiton

Comfortable liquidity position Low-cost deposit-funded banking sector • Steady deposit increases in the domestic base reflecting the stronger domestic economy whilst reduction recorded in non resident deposits due to proactive risk mitigating practices by banks. • The Liquidity Coverage Ratio more than double the EU-average while the two largest banks report comfortable Net Stable Funding Ratios. Evolution in deposits, EUR bn 5,6 7,7 7,6 5,9 4,2 3,6 6,7 6,5 6,4 6,6 6,3 6,5 4,0 3,6 3.5 3.3 3,5 4,1 29,0 28,9 30,6 32,9 33,7 34,6 Liquidity 150% 100% 50% 90 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Liquidity Coverage Ratio (RHS) Loan to Deposit ratio Source: Central Bank of Cyprus, EBA; Note: LCR data not available in Jun-19 400% 300% 2014 2015 2016 2017 2018 8m-2019 ■Residents-EUR Residents-FX Non Residents-EUR Non Residents-FX Share of cash balance and liquid assets, % of assets 5% 200% 73% 100% 6% 54% 0% 10% 11% 16% 21% Dec-14 Mar-19 Cash Debt securities ■Loans Other 27
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