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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 KOINO WKYNPIW
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