Deleveraging and Financial Overview
Significant progress made on Group KPIs, with a clear plan of action to
achieve medium-term targets
Medium-
Category
Key
performance
indicators
Group Group Cyprus
2013
2014
2014
term
target
(2017) *
1. Reverse
90+ DPD
coverage
38%
41%
38%
40%-50%
Asset
quality
Provisioning
charge
4,0%
3,6% **
2,6%
<1,0%
Key Pillars & Plan of action
trend on
overdue
loans
2. Normalise
funding;
Eliminate
ELA
3. Focus on
•
°
.
.
•
Continue re-structuring capitalising on the foreclosure
law
Seek FDI to enhance business viability
• Re-cycle re-structured 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
Eurosystem
Funding
funding % total
36%
31%
n.a.
<25%
balance sheet
Basel 3
Capital
transitional
10.4%
14,0%
n.a.
>12%
core
markets
in Cyprus
CET1
Net interest
3,5%
3,9%
3,8%
~3,25%
margin
Fee and
Margins
and
efficiency
commission
14%
13%
13%
Increase
income/total
income
4. Achieve a
lean
operating
model
5. Deliver
returns
Cost to income
ratio
43%
36%
35%
40%-45%
°
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
• 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 that this available on the Group's website.
** Calculated as the provisions for impairment of customer loans, including provisions of discontinued operations, (in total €969
mn) net of gains on derecognition and changes in expected cash flows on acquired loans (totalling €47 mn) over average gross
loans
Bank of Cyprus
KOINO
WKYПPIW
1235
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