Bank of Cyprus Credit Ratings and Financial Position slide image

Bank of Cyprus Credit Ratings and Financial Position

Stage 2 exposures well collateralised with low migration history Limited historic migration of Stage 2 to Stage 3 3.2% € mn Trade 1,814 153 Of which: 7.5% Real estate 162 €794 mn (43%) Performing Forborne 2.6% Other 196 • €550 mn (30%) Overlays • €309 mn (17%) SICR1 2.4% 1.2% Construction 319 • €109 mn (6%) POCI 2.0% 0.7% Hotel & catering 430 3.6% Private individuals 554 Provision coverage Mar 23 Days past due 0 dpd 1-30 dpd >30 dpd Private Individuals 97% 2% 1% Business 99% 1% 0% 1.8% 2.3% lili FY2020 FY2021 FY2022 1Q2023 • Migraton to Stage 3 as a % of Stage 2 loans Strong performance of Stage 2 exposures; 99% present no arrears Only c.2% p.a. of Stage 2 loans migrated to Stage 3 in the last three years 95% of Stage 2 loans are collateralised 18% of gross loans classified as Stage 2 of which: • • 43% were classified as Stage 2 mainly due to Covid-19 forbearances (of which 31% relate to hotel & catering exposures) 55% expected to be eligible for transfer to Stage 1 in 2023 30% were classified as Stage 2 due to overlays; reviewed on an on going basis and expected to be eligible for transfer to Stage 1 in 2023 LTV2 0-75% 75%-100% >100% Private Individuals 75% 9% 16% Business 79% 7% 14% Total 78% 7% 15% 1) Significant increase in credit risk 2) Loan to Value (LTV) is calculated as the Gross IFRS Balance to the indexed market value of the property. Under Pillar 3 disclosures LTV is calculated as the Gross IFRS Balance to the indexed market value of collateral. Collateral takes into consideration the mortgage amount registered in the land registry plus legal interest from registration date to the reference date 60
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