Investor Presentaiton
Credit Risk -
- Provisions
Accumulated provisions
Accumulated provisions ( bn)
Provisions % Gross loans
17,6% 18,6% 19,1% 19,3% 20,0%
21,6% 22,2% 22,5%
16,2%
Group loan quality indicators
90+ DPD provision coverage
Adjusting for the disposal
90+ DPD ratio
of the majority of the Russian operations
47,4% 48,6% 48,6% 49,8% 52,5% 53,2% 53,1% 52,9% 52,7%
38,8%
4,6 4,8 5,0 5,0
4,9 4,9 5,1 5,4 5,4
30.06.13 30.09.13 31.12.13 31.03.14 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15
Cost of risk¹
Cost of Risk - Cyprus
Cost of Risk - Group
3,6%
2,8%
2,8% 2,7%
2,1%
2,2%
2,4%
2,2% 2,4%
1,9%
1,7%
1,5%
1Q2014
1H2014 9M2014 FY2014 1Q2015 1H2015
37% 38% 39% 39% 38% 41% 42%
I
43% 41%
42%
30.06.13 30.09.13 31.12.13 31.03.14 30.06.14 30.09.14 31.12.14 31.03.15 30.06.15 proforma
30.06.15
Accumulated provisions totalled 5,4 bn and accounted for
22,5% of gross loans at 30 June 2015
The gains on derecognition and changes in expected cash flows
relate to a part-reversal of the fair value adjustment on initial
recognition relating to loans acquired from Laiki Bank. The
reversal is the result of revised expectations of future cash flows
compared to the cash flows expected at the time of acquisition.
For credit risk monitoring purposes, the fair value adjustment is
considered as part of provisions and the Group reviews both of
them as a single item
Group annualised cost of risk for 1H2015 was 2,2%, compared
to 2,1% for 1Q2015 and 3,6% for FY2014; Annualised cost of
risk for Cyprus for 1H2015 was 1,7%, compared to 1,5% for
1Q2015
1 Calculated as the provisions for impairment of customer loans, including provisions of discontinued operations, (in total €493 mn),
net of gains on derecognition and changes in expected cash flows on acquired loans (totalling €230 mn) over average gross loans
Bank of Cyprus
22
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