Bank of Cyprus Credit Ratings and Financial Position
NII up 127% yoy, supported by interest rate rises and well-managed deposit pass-through
NII of €162 mn, up 19% qoq
Effective yield on assets & cost of funding
291
236
153
NIM bps
132
133
+127%
yoy
89
NII (€ mn)
71
74
Performing loans
Liquid assets 1,3
(bps)
Cost of deposits
Cosf of wholesale funding 3
455
390
292
301
319
162
+19%
155
136
qoq
33
-2
-2
1Q2022
2Q2022
3Q2022
4Q2022 1Q2023
•
NIM up by 55 bps qoq to 291 bps reflecting repricing of liquid assets and loans
•
Effective yields on liquid assets¹ increased to 280 bps (up 125 bps qoq)
215
-5
-6
-7
-10
280
-277
-263
-272
1Q2022
2Q2022
3Q2022
-344
4Q2022
-328
1Q2023
NII assumptions
•
Cost of deposits remains low at 10 bps; Time and Notice deposit pass through
remains resilient at 10%²
Average ECB depo rate
Time deposit pass through²
FY2023
assumptions4
1Q2023
2.8%
2.3%
up to c.50%
Deposit mix (Time and Notice
deposits)
by Dec 2023
up to c.45% in
by Dec 2023
•
Cost of other funding broadly flat qoq
4)
7237
Cash, placements with banks, balances with central banks and bonds
2)
Calculated as a percentage of the cost of Time and Notice deposits over average 6m Euribor rate of the period
3)
Calculation for effective yields on liquids assets and cost of wholesale funding was adjusted to exclude the impact of TLTRO III on both NII and on interest bearing assets & liabilities
As communicated in February 2023
10%
(vs 7% in 4Q2022)
30%
(vs 29% in 4Q2022)
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