Investor Presentaiton

Significant progress made on Group KPIs, with a clear plan of action to achieve medium-term targets Medium- Key Group Group Cyprus Category performance indicators Dec- Jun- Jun- 2014 2015 2015 term target (2017) * 1. Reverse 90+ DPD 41% 43% 39% 40%-50% coverage Asset quality Provisioning charge 3,6% 2,2%** 1,7% <1,0% trend on overdue loans 2. Normalise funding; Eliminate ELA Eurosystem Funding funding % total 31% 25% n.a <25% balance sheet 3. Focus on Basel 3 Capital transitional 14,0% 14,9% n.a >12% core markets in Cyprus CET1 Net interest 3,9% 3,9% 3,8% ~3,25% margin Fee and Margins and efficiency commission 13% 15% 15% Increase income/total income 4. Achieve a lean operating model 5. Deliver returns Cost to income ratio 36% 36% 35% 40%-45% Key Pillars & Plan of action • • • • Continue restructuring, capitalising on the foreclosure law Seek FDI to enhance business viability Re-cycle restructured loans into the lending business for continued support and service Boost deposits by leveraging on stronger capital position Access Debt Capital Markets on the back of improved ratings, stronger financial soundness and better prospects Proceeds from exiting non-core overseas activities Direct lending into promising sectors with a view to funding the recovery of the Cypriot economy Further diversify income stream by boosting fee income from new sources in international business and wealth • Set-out a digital vision and introduce appropriate technology to enhance product distribution channels Introduce technology and processes to reduce operating costs Introduce HR policies aimed at enhancing productivity O Strengthen governance and risk management to deliver appropriate medium-term risk-adjusted returns * Medium term target refers to the targets set as per the latest NDR presentation (available on the Group's website). ** Calculated as the provisions for impairment of customer loans, including provisions of discontinued operations, (in total €493 mn), net of gains on derecognition and changes in expected cash flows on acquired loans (totalling €230 mn) over average gross loans Bank of Cyprus KOINO WKYMPιW 28

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