Group Financial Results
CET1 at 15.2% pro forma for Helix 25
min OCR (SREP) requirement for 2020 post ECB Announcement 4
14.8%
14.6%
14.8%
-0.4%
(0.3%)
(0.1%)
-0.2%-
-0.2%-
(0.2%)
Group Financial Results for the year ended 31 December 2020
Capital position
1 January 2021
18.7%
1.6%
15.2%
1.9%
0.4%
14.5%
14.7%
9.7%
9.7%
9.7%
CET1 31
1
Dec 2019
CET1
30 Sep
2020
Operating Provisions
Other
RWAs Amendments
Helix 2
CET1
Helix 2
profit
and
impairments
to
31 Dec
3
capital
regulations
2020 1,2
CET1 31
Dec
2020 pro
form a for
AT1
T2
Total capital
ratio 31 Dec
2020
pro form a
CET1 ratio
pro forma
1,5
for Helix 2
Helix 2 1,2,5
for Helix 2
1,5
• CET1 ratio¹ positively impacted by:
•
c.40 bps organic capital generation from operating profitability
c.20 bps capital benefit from amendments to capital regulations in
relation to prudential treatment of software assets and IFRS 9
dynamic component
c.20 bps from release of RWAs
• CET1 ratio¹ negatively impacted by:
c.30 bps from provisions and impairments
Onsite inspection and review by the SSM on the stock of REMU properties
completed. Findings relating to a prudential charge of up to 46 bps, the majority of
which is expected to be taken at 30 Jun 2021, depending on the Bank's progress
in disposing the properties impacted by the prudential charge
• The Group is currently evaluating opportunities for a potential Tier 2 capital
transaction given the terms and maturity profile of the Bank's existing €250 mn
10NC5 Tier 2 notes, subject to market conditions. Separately the Group continues
to evaluate opportunities to initiate its MREL issuance as part of its overall capital
and funding strategy
1)
2)
3)
Allowing for IFRS 9 and starting from 3Q2020, also for temporary treatment for certain FVOCI instruments transitional arrangements
The CET1 ratio for 31 December 2020, including the full impact of IFRS 9 and the temporary treatment for certain FVOCI instruments
amounted to 12.9% and 13.3% pro forma for Helix 2
Loan credit losses and other impairments include the net change of the prudential charges relating to specific credits and other items
Bank of Cyprus Holdings
4)
5)
OCR(SREP)- Overall Capital Requirement comprises the Total SREP Capital Requirement (Pillar 1 and Pillar 2
Requirement) plus combined buffer requirements (capital conservation buffer, countercyclical buffer and systemic buffers)
Pro forma for Helix 2 (Portfolio A and B). Calculations on a pro forma basis which assume legal completion of the
transaction
27View entire presentation