Investor Presentaiton

Group Financial Results for the year ended 31 December 2020 Glossary & Definitions NPEs (continued) As a result of the above, the following changes will come into effect: 1.New Days-past-Due (DPD) counter: The new counter will begin counting DPD as soon as the arrears or excesses of an exposure reach the materiality threshold (rather than the first day of presenting any amount of arrears in excesses). Similarly, the counter will be set to zero when the arrears or excesses drop below the materiality thresholds. Payments to the exposure that do not impact the materiality of the remaining arrears / excesses will not impact the counter. New default definition effective from 1 January 2021 1.The NPE exit criteria will change and will now include: (i) a 3 month probation period for non-forborne exposures (ii) the exit of non-performing forborne accounts will become aligned with the distressed restructuring exit criteria i.e. a period of one year has passed since the latest of the following events: a. The restructuring date b. The date the exposure is classified as non-performing c. The payment of interest and capital for at least 12 months 2. As per the new definition of default, the 20% materiality threshold and the NPE due to >90 DPD will no longer apply for non-retail exposures i.e. any non-performing exposure of the customer, for any reason, will result in a non-performing classification at customer level. NPE coverage ratio (previously 'NPE Provisioning coverage ratio') NPE ratio NPES sales Non-legacy Phased-in Capital Conservation Buffer (CCB) NSFR OMV Operating profit The NPE coverage ratio is calculated as the allowance for expected loan credit losses (as defined) over NPEs (as defined). NPEs ratio is calculated as the NPEs as per EBA (as defined) divided by gross loans (as defined). NPE sales refer to sales of NPE portfolios completed in each period and contemplated sale transactions, as well as potential further NPE sales, at each reporting date, irrespective of whether or not they met the held for sale classification criteria at the reporting dates. They include both Project Helix and Project Helix 2, as well as other portfolios. Relates to all business lines excluding Restructuring and Recoveries Division ("RRD"), REMU and non-core overseas exposures In accordance with the legislation in Cyprus which has been set for all credit institutions, the applicable rate of the CCB is 1.25% for 2017, 1.875% for 2018 and 2.5% for 2019 (fully phased-in). The NSFR is calculated as the amount of "available stable funding" (ASF) relative to the amount of "required stable funding" (RSF), on the basis of Basel III standards. Its calculation is a SREP requirement. The EBA NSFR will be enforced as a regulatory ratio under CRR II in June 2021. Open Market Value Comprises profit before Total loan credit losses, impairments and provisions (as defined), tax, (profit)/loss attributable to non-controlling interests and non-recurring items (as defined). p.p. Bank of Cyprus Holdings percentage points 78

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