Investor Presentaiton

Drivers of NIM NII for 4Q2020 at €80 mn Group Financial Results for the year ended 31 December 2020 Effective yield on assets & cost of funding 179 175 3,5 Liquids Cost of funding 515 452 446 195 188 -Non-Legacy Legacy 560 NII (€ mn) 84 85 83 82 80 187 NIM (bps) Interest income 102 Liquids¹ 100 95 95 4 2- 54 91 485 Legacy 23 24 24 18 17 200 18 Non-Legacy 75 72 22 55 75 74 71 14 3360 330 324 8 338 331 314 4 5 -38 -30 -25 -23 -20 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 4Q2019 1Q2020 2Q2020 3Q20205 4Q2020 Interest expense Net derivative -3 -3 Other 2/ -6 -6 -6 -6 -6 Subordinated -3 loan stock -3 -3 -5 -11 =1 Customer -8 -12 -13 deposits -15 -18 Challenging interest rate outlook continues to put pressure on the effective yield of liquids Non-Legacy book yields remain under pressure mainly due to the sustained low interest rate environment and competition pressure Higher-yielding, higher-risk legacy loans are reducing as we successfully exit NPES Reduction of cost of deposits continued (down by 1 bps qoq) to 5 bps in Dec 2020 1) Cash, placements with banks, balances with central banks and bonds 2) Other includes funding from central banks and deposits by banks and repurchase agreements. For further details, please see slide 66 3) 4) 5) Effective yield of liquid assets: Interest income on liquids after hedging, over average liquids (Cash and balances with central banks, placements with banks and bonds) Effective yield of cost of funding: Interest expense of all interest bearing liabilities after hedging, over average interest bearing liabilities (customer deposits, funding from the central bank, interbank funding, subordinated liabilities) Interest income of non-legacy book for 3Q2020 increased from €73 mn to €74 mn since previously disclosed on 27 November 2020, following a transfer of €1 mn from liquids to non-legacy interest income Bank of Cyprus Holdings 18

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