Investor Presentaiton
Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin
423
Interest income from Laiki Recap. bond (€ mn)
NIM (bps)
FY2014
NIM: 394 bps
NII: €969 mn
Net interest income (other) (€ mn)
-NIM (excluding Laiki Recap. bond) (bps)
FY2015
NIM: 379 bps / 351 bps (excl recap bond)
NII: €842 mn / €779 mn (excl recap bond)
394
382
381
379
370
369
<-350-
3.40.
-
355
262
231
225
227
212
205
198
44
26
26
25
22
-9
-7
218
205
199
202
190
196
191
355
2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015
Yield of Loans, Cost of Deposits and Customer Spread in Cyprus
operations (bps)
1Q2015 2Q20152 ■3Q2015
FY2015:
543
■4Q2015
FY2015:
428
573
537 536 527
FY2015:
115
434
418 432
427
139
119
104
100
Cost of Deposits
IIII
Customer spread
4Q2015 Net Interest Income (NII) at €198
mn, compared to €205 mn for 3Q2015,
reflecting a lower yield on restructured loans
partly due to restructurings made during the
4Q2015 and deleverage actions
• The reduction in NII during 2015 reflects the
reduction in lending rates, the gradual repricing
of deposits and the repayment of a bond by the
Republic of Cyprus in June and December of
2015
•
•
•
Net Interest Margin (NIM) remains healthy at
3,69% for 4Q2015; Adjusting for the Laiki
Recapitalisation bond, the NIM remained
unchanged qoq at 3,55%
Customer spread in Cyprus decreased to 427
bps in 4Q2015 compared to 432 bps in
3Q2015, with the reduction reflecting a lower
yield on loans partly due to loans restructuring
Going forward the Bank will address the
pressure on NII via new loan origination, while
maintaining lending yields despite growing
competition
Yield on Loans
(1) Includes all currencies
(2) 2Q2015 and year to date 1H2015 that has been adjusted to exclude non recurring items
Bank of Cyprus
4
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