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ESG Strategy and Digital Transformation

Glossary & Definitions IB, W & M IBU Impact of parallel shifts in interest curves Legacy exposures Leverage Ratio Exposure (LRE) Liquid assets Loan credit losses (PL) (previously 'Provision charge') Loan to Value ratio (LTV) Market shares MSCI ESG Rating Net Proceeds Net fee and commission income over total income Net interest margin (NIM) Net loans and advances to customers Net loans to deposits ratio Net zero emissions International Banking, Wealth and Markets Servicing exclusively international activity companies registered in Cyprus and abroad and not residents The sensitivity is calculated assuming a constant balance sheet This sensitivity is not a forecast of interest rate expectations, and the Bank's pricing decisions in the event of an interest rate change may differ from the assumptions underlying this sensitivity. Accordingly, in the event of an interest rate change the actual impact on Group NII may differ from that presented in this analysis Legacy exposures are exposures relating to (i) Restructuring and Recoveries Division (RRD), (ii) Real Estate Management Unit (REMU), and (iii) non-core overseas exposures. Leverage Ratio Exposure (LRE) is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013, as amended. Cash, placements with banks, balances with central banks and bonds Loan credit losses comprise: (i) credit losses to cover credit risk on loans and advances to customers, (ii) net gains on derecognition of financial assets measured at amortised cost and (iii) net gains on loans and advances to customers at FVPL, for the reporting period/year. 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 Both deposit and loan market shares are based on data from the CBC. The Bank is the single largest credit provider in Cyprus with a market share of 38.8% at 31 December 2021, compared to 39.1% at 30 September 2021 and 30 June 2021, 42.4% at 31 March 2021 and 41.9% at 31 December 2020. The decrease in 2Q2021 is mainly due to the completion of Project Helix 2. The use by the Company and the Bank of any MSCI ESG Research LLC or its affiliates ('MSCI') data, and the use of MSCI Logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation or promotion of the Company or the Bank by MSCI. MSCI Services and data are the property of MSCI or its information providers and are provided "as-is" and without warranty. MSCI Names and logos are trademarks or service marks of MSCI. Proceeds after selling charges and other leakages Fee and commission income less fee and commission expense divided by total income (as defined). Net interest margin is calculated as the net interest income (annualised) divided by the 'quarterly average interest earning assets' (as defined). Net loans and advances to customers comprise gross loans (as defined) net of allowance for expected loan credit losses (as defined, but excluding allowance for expected credit losses on off- balance sheet exposures disclosed on the balance sheet within other liabilities). Net loans to deposits ratio is calculated as gross loans (as defined) net of allowance for expected loan credit losses (as defined) divided by customer deposits. The reduction of greenhouse gas emissions to net zero through a combination of reduction activities and offsetting investments 84
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