Investor Presentaiton
1H2020 - Highlights
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COVID-19
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€1.3 bn NPE reduction in
1H2020, including NPE sales
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Group Financial Results for the six months ended 30 June 2020
Confirmed COVID-19 cases remain amongst the lowest within EU, despite relaxation of measures
Continue to support colleagues, customers affected by COVID-19 and wider Cypriot economy
Nascent signs of economic recovery post lockdown
€0.9 bn NPE sale (Helix 2) agreed in August 2020
Organic NPE reduction of €137 mn in 2Q2020, despite lockdown
Completion of €133 mn NPE sale (Velocity 2) in 2Q2020
NPES reduced to €2.6 bn (€1.1 bn net), pro forma for Helix 21
Gross NPE ratio reduced to 22% (11% net) and coverage maintained at 58%, pro forma for Helix 21
Good Capital and Strong
Liquidity Position
Operational efficiency
Performance
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in 2Q2020
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Total Capital ratio of 17.9%² and CET1 ratio of 14.4%² pro forma for Helix 21
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Deposits at €16.3 bn, broadly flat qoq; significant surplus liquidity of €3.9 bn (LCR at 257%)
Cost to income ratio³ at 57% for 2Q2020, broadly flat on prior quarter
Total operating expenses³ reduced to €81 mn for 2Q2020, down by 18% yoy and by 3% qoq
Increased usage of digital channels sustained post lockdown
New lending of €238 mn for 2Q2020 (down by 47% qoq), impacted by COVID-19 lockdown
Underlying result of profit after tax from organic operations of €4 mn for 2Q2020
Provisions/net loss relating to NPE sales of €104 mn for 2Q2020, including Helix 2 loss of €68 mn and loan credit
losses of €21 mn for potential future NPE sales
Loss after tax of €100 mn for 2Q2020 and €126 mn for 1H2020
(1) Calculations on a pro forma basis assume completion of the transaction
(2) Allowing for IFRS 9 transitional arrangements
(3) Excluding Special Levy and contributions to SRF and DGF
(4) Including restructuring expenses
Bank of Cyprus Holdings
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