ESG Strategy and Digital Transformation slide image

ESG Strategy and Digital Transformation

4Q2021 - Highlights Strong Recovery Continues • 6.0%¹ GDP in 4Q2021 well above the eurozone average of 4.6% €1.8 bn • New Lending New lending of €471 mn in 4Q2021 totalling €1.8 bn for FY2021, up 33% yoy, recovering towards pre-pandemic levels Positive Operating Performance €55 mn Operating Profit Total income of €154 mn for 4Q2021, up 11% qoq driven mainly by higher non-NII • Profit after tax and before non-recurring items of €27 mn for 4Q2021 Small-scale targeted Voluntary Staff Exit Plan with one-off cost of €16 mn; gross annual savings of c.3% Operating Efficiency Strong Capital and Liquidity 57% Cost/Income² • . Profit after tax of €10 mn for 4Q2021 Total operating expenses² of €87 mn for 4Q2021, broadly flat qoq Cost to income ratio² at 57% for 4Q2021, down 7 p.p. qoq supported by higher non-NII 15.8% • CET1 ratio of 15.8% 3,4 and Total Capital ratio of 20.8% 3,4 CET1 ratio 3,4 . Deposits at €17.5 bn up 2% qoq; significant surplus liquidity of €6.4 bn NPE ratio reduced to 7.5%4 (3.1%4 net) • Single Digit NPE ratio4 3.1%4 Net NPE ratio €0.6 bn NPE sale (Helix 3) signed in November 2021 • . Organic NPE reduction of c.€400 mn in FY2021 96% of performing loans 5 under expired payment deferrals with an instalment due by 8 February 2022, presented no arrears 723 2) Source: Cyprus Statistical service & Ministry of Finance announcement dated 15 February 2022 Excluding special levy on deposits and other levies/contributions 4) Pro forma for HFS 3) Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements 5) As at 31 December 2021 6
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