#1Bank of Cyprus Group Group Financial Results For the quarter ended 31 March 2023 Bank of Cyprus Holdings KOINO WKYMPI WN#2DISCLAIMER The financial information included in this presentation is not audited by the Group's external auditors. This financial information is presented in Euro (€) and all amounts are rounded as indicated. A comma is used to separate thousands and a dot is used to separate decimals. On 1 January 2023, the Group adopted IFRS 17 'Insurance contracts which replaced IFRS 4 'Insurance contracts'. Comparative data have been restated accordingly, unless otherwise stated (for further information refer to section F9 of the press release). For Glossary & Definitions refer to slides 66-72 Important Notice Regarding Additional Information Contained in the Investor Presentation The presentation for the Group Financial Results for the quarter ended 31 March 2023 (the "Investor Presentation"), available on https://bankofcyprus.com/en-gb/group/investor-relations/reports- presentations/financial-results/, includes additional financial information not presented within the Group Financial Results Press Release (the "Press Release"), primarily relating to (i) NPE analysis (movements by segments and customer type), (ii) rescheduled loans analysis, (iii) details of historic restructuring activity including REMU activity, (iv) income statement by business line, (v) NIM and interest income analysis, (vi) loan portfolio analysis in accordance with the three-stages model for impairment of IFRS 9, (vii) fixed income portfolio per issuer type and (viii) income statement of insurance and payment solutions business. Except in relation to any non-IFRS measure, the financial information contained in the Investor Presentation has been prepared in accordance with the Group's significant accounting policies as described in the Group's Annual Financial Report 2022. The Investor Presentation should be read in conjunction with the information contained in the Press Release and neither the financial information in the Press Release nor in the Investor Presentation constitutes statutory financial statements prepared in accordance with International Financial Reporting Standards. Forward Looking Statements This document contains certain forward-looking statements which can usually be identified by terms used such as "expect", "should be", "will be” and similar expressions or variations thereof or their negative variations, but their absence does not mean that a statement is not forward-looking. Examples of forward- looking statements include, but are not limited to, statements relating to the Group's near term, medium term and longer term future capital requirements and ratios, intentions, beliefs or current expectations and projections about the Group's future results of operations, financial condition, expected impairment charges, the level of the Group's assets, liquidity, performance, prospects, anticipated growth, provisions, impairments, business strategies and opportunities. By their nature, forward-looking statements involve risk and uncertainty because they relate to events, and depend upon circumstances, that will or may occur in the future. Factors that could cause actual business, strategy and/or results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements made by the Group include, but are not limited to: general economic and political conditions in Cyprus and other European Union (EU) Member States, interest rate and foreign exchange fluctuations, legislative, fiscal and regulatory developments, information technology, litigation and other operational risks, adverse market conditions, the impact of outbreaks, epidemics or pandemics, such as the COVID-19 pandemic and ongoing challenges and uncertainties posed by the COVID-19 pandemic for businesses and governments around the world. The Russian invasion of Ukraine has led to heightened volatility across global markets and to the coordinated implementation of sanctions on Russia, Russian entities and nationals. The Russian invasion of Ukraine has caused significant population displacement, and as the conflict continues, the disruption will likely increase. The scale of the conflict and the extent of sanctions, as well as the uncertainty as to how the situation will develop, may have significant adverse effects on the market and macroeconomic conditions, including in ways that cannot be anticipated. This creates significantly greater uncertainty about forward-looking statements. Should any one or more of these or other factors materialise, or should any underlying assumptions prove to be incorrect, the actual results or events could differ materially from those currently being anticipated as reflected in such forward-looking statements. The forward-looking statements made in this document are only applicable as at the date of publication of this document. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained in this document to reflect any change in the Group's expectations or any change in events, conditions or circumstances on which any statement is based. Changes in our reporting frameworks and accounting standards, including the recently announced reporting changes and the implementation of IFRS 17 'Insurance Contracts', which may have a material impact on the way we prepare our financial statements and (with respect to IFRS 17) may negatively affect the profitability of Group's insurance business. 2#31Q2023 Financial Performance 3#41Q2023- Highlights Economic outlook remains strong • Economy to grow by c.2.8%¹ in 2023, significantly above the eurozone average Another seasonally strong quarter of new lending of €624 mn, up 41% qoq and broadly flat yoy Gross performing loan book of €9.9 bn, up 1% qoq and yoy NII of €162 mn up 127% yoy, underpinned by interest rate rises 723 2) 4) Strong profitability benefiting from tailwinds • Total operating expenses² down 3% yoy; cost to income ratio² at 34% down 26 p.p. yoy • Profit after tax of €95 mn for 1Q2023 vs €17 mn for 1Q2022 • ROTE³ of 21.3% for 1Q2023 vs 4.0% for 1Q2022, with rates higher than expected and anticipated increases in deposit costs not yet developing • Asset quality in line with target • Resilient asset quality NPE ratio at 3.8% (1.1%4 net) down 7.6 p.p. yoy • Coverage at 73%; cost of risk at 44 bps flat qoq and yoy, reflecting resilient credit portfolio quality • CET1 ratio of 15.2%5 and Total Capital ratio of 20.3%5 Robust capital and liquidity Resumption of dividend payments after 12 years Organic capital generation of c.90 bps 6 Retail funded deposit base at €19.0 bn up 7% yoy and flat qoq Highly liquid balance sheet with €9.2 bn placed at the ECB ✓ €0.05 dividend per ordinary share (€22.3 mn out of FY2022 profitability); payout ratio of 14% on adjusted recurring profitability or 31% based on FY2022 profit after tax ✓ Payout ratio expected to build prudently and progressively to 30-50% of adjusted recurring profitability? Projections in accordance with Ministry of Finance Excluding special levy on deposits and other levies/contributions ROTE is calculated as annualised profit after tax (attributed to the owners of the Company) divided by the quarterly average shareholders' equity minus intangible assets Calculated as NPEs net of provisions over net loans 5) Includes unaudited/unreviewed profits for 1Q2023 and for compliance with CRR an accrual for an estimated final dividend at a payout ratio of 30% of the Group's adjusted recurring profitability in line with the Group's approved dividend policy. Any recommendation for a dividend is subject to regulatory approval 6) Based on profit after tax before non-recurring items 7) Profit after tax before non-recurring items (attributable to the owners of the Company) taking into consideration the AT1 coupon 8) As reported in the 2022 Annual Report#5Resumption of dividend payments after 12 years FY2022 ROTE:10.0% (Recurring)1 4% NPE ratio Balance sheet de-risking completed 49% C/I ratio² Improved efficiency on cost initiatives despite inflationary pressures 15.4% 3,4 CET1 ratio Robust capital position with 70 bps5 organic capital generation Proposed dividend: €0.05 per ordinary share or 14% payout ratio out of FY2022 earnings³ 1) Recurring ROTE: calculated as annualised Profit after Tax and before non-recurring items divided by quarterly average Shareholders' equity minus Intangible assets 234 2) Excluding special levy on deposits and other levies/contributions 3) As reported in 2022 Annual Report 4) 2022 CET1 ratio is restated to 15.2% to take into account the dividend proposal in April 2023 6) 7) Sustainable ROTE: >13% 2023-2024 Going forward <5% NPE ratio mid-40s C/I ratio² Organic capital generation Dividend payout ratio building progressively to 30-50% on adjusted recurring profitability6 Based on profit after tax before non-recurring items Based on adjusted recurring profitability: The Group's profit after tax before non-recurring items (attributable to the owners of the Company) taking into account distributions under other equity instruments such as the annual AT1 coupon ROTE calculated as annualised profit after tax (attributable to owners of the Company) divided by quarterly average shareholders' equity minus intangible assets 5#61Q2023 performance ahead of 2023 targets FY2023 targets €520-550 mn Net interest income (+40-50% yoy) Cost to income ratio¹ Mid-40s ROTE² NPE ratio Cost of risk Dividend 1Q2023 €162 mn (+127% yoy) 34% >13% 21.3% <5% 50-80 bps Intention to commence from 2023 onwards Excluding special levy on deposits and other levies/contributions ROTE calculated as annualised profit after tax (attributable to owners of the Company) divided by quarterly average shareholders' equity minus intangible assets 1) 2) 3) As reported in 2022 Annual Report 3.8% 44 bps €22.3 mn out of FY2022 earnings³ (announced in April 2023) 6#7-14.2% 1Q20 2Q20 3Q20 4Q20 1Q21 5.3% 4.5% GDP expected to grow by c.2.8% in 2023, well above eurozone average 14.3% 2.2% 2.5% 1.9% -2.8% 10.6% 2Q21 3Q21 Inflation decreased to 3.8% for April 2023 HICP index (yoy% change) 2022: 8.1% Dec 21 Jan 22 Feb 22 Mar 22 Apr 22 May 22 Jun 22 Jul 22 Aug 22 Sep 22 Oct 22 Nov 2 Dec 22 Jan 23 Feb 23 4Q21 Strong Cypriot economy; solid GDP growth of c.2.8% expected for 2023 GDP growth of 5.6% in FY2022 Real GDP (yoy % change) 2021: 6.6% 2022: 5.6% 12.9% 1Q2023 Tourist arrivals 10% ahead of 1Q2019 Tourism arrivals (ths) 3,977 1Q22 2Q22 3Q22 4Q22 10.6% 10.6% 9.2% 7.4% 8.9% 6.9% HICP expected to drop to 8.6% 7.6% c.3% in 2023 7.0% 5.0% 6.1% 6.2% 4.8% 3.8% Cyprus Euro area Mar 23 Apr 23 2Q19 3,201 1,937 2019 2021 2022 1Q2019 1Q2022 1Q2023 Unemployment rate decreased to 6.8% in 2022 Quarterly (%) (seasonally adjusted) 3Q19 4Q19 1Q21 2Q21 3Q21 2021: 7.1% 2022: 6.8% 8.3% 8.0% 6.8% 6.9% 7.1% 4Q21 Source: Cystat, Eurostat 1) Projections in accordance with Ministry of Finance 1Q22 2Q22 3Q22 4Q22 +10% 394 358 245 6.5% 6.8% 6.7% Unemployment rate expected to decrease to 6.5% in 2023 7#8Income Statement 1Q2023 1Q2022 4Q2022 € mn qoq% yoy% IFSR 17 IFRS 17 Net Interest Income 162 71 136 19% 127% Non interest income 72 66 79 -11% 8% Total income 234 137 215 8% 70% Total operating expenses¹ (80) (81) (84) -5% -3% Operating profit 143 46 120 19% 213% Provisions and impairments (28) (17) (32) -10% 68% PAT before non-recurring items 96 23 74 28% Advisory and organic restructuring (1) (1) (1) -22% -15% costs PAT-organic² 95 22 73 29% Restructuring costs - VEP - (3) Other exceptionals 0 (2) 2 -109% -100% -92% 95 17 75 26% Profit after tax Key Ratios Net Interest margin 2.91% Cost to income ratio¹ 34% Cost of Risk 0.44% 1.32% 60% 0.44% 2.36% 39% 0.42% 55 bps 159 bps -5 p.p. 2 bps • -26 p.p. QoQ Performance (1Q2023 vs 4Q2022) • NII up 19% supported by interest rate rises and resilient low deposit pass-through Non-NII down 11% reflecting mainly the termination of liquidity fees and NPE sale-related servicing fees Total operating expenses¹ down 5% as seasonally lower other operating expenses partially offset higher staff costs Provisions and impairments down by €4 mn (-10%) mainly due to lower REMU6 stock impairments on prior quarter Cost of risk broadly flat reflecting resilient credit portfolio quality Profit after tax, up 26% YoY Performance (1Q2023 vs 1Q2022) . NII up 127% underpinned by interest rate rises and resilient low deposit pass-through Total operating expenses¹ down 3% reflecting benefits from efficiency actions partly offset by wage and inflationary pressures Provisions and impairments up by €11 mn (68%) driven by higher REMU6 stock impairments EPS (€ cent) 21.24 3.86 16.84 4.40 17.38 • Cost of risk flat reflecting resilient credit portfolio quality ROTE³ 21.3% 4.0% 17.3% 4.0 p.p. 17.3 p.p. • Profit after tax at €95 mn Adjusted recurring profitability4,5 89 17 68 31% • Reported ROTE³ at 21.3% 723 1) Excluding special levy on deposits and other levies/contributions 2) Used for organic capital generation calculation (refer to slide 23) 3) ROTE is calculated as annualised profit after tax (attributed to the owners of the Company) divided by the quarterly average shareholders' equity minus intangible assets 456 4) Used for the payout ratio calculation, in line with the Dividend Policy approved by the BoD in April 2023 5) 6) Profit after tax before non-recurring items (attributable to the owners of the Company) taking into consideration the AT1 coupon Real Estate Management Unit • 8#9NII up 127% yoy, supported by interest rate rises and well-managed deposit pass-through NII of €162 mn, up 19% qoq Effective yield on assets & cost of funding 291 236 153 NIM bps 132 133 +127% yoy 89 NII (€ mn) 71 74 Performing loans Liquid assets 1,3 (bps) Cost of deposits Cosf of wholesale funding 3 455 390 292 301 319 162 +19% 155 136 qoq 33 -2 -2 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 • NIM up by 55 bps qoq to 291 bps reflecting repricing of liquid assets and loans • Effective yields on liquid assets¹ increased to 280 bps (up 125 bps qoq) 215 -5 -6 -7 -10 280 -277 -263 -272 1Q2022 2Q2022 3Q2022 -344 4Q2022 -328 1Q2023 NII assumptions • Cost of deposits remains low at 10 bps; Time and Notice deposit pass through remains resilient at 10%² Average ECB depo rate Time deposit pass through² FY2023 assumptions4 1Q2023 2.8% 2.3% up to c.50% Deposit mix (Time and Notice deposits) by Dec 2023 up to c.45% in by Dec 2023 • Cost of other funding broadly flat qoq 4) 7237 Cash, placements with banks, balances with central banks and bonds 2) Calculated as a percentage of the cost of Time and Notice deposits over average 6m Euribor rate of the period 3) Calculation for effective yields on liquids assets and cost of wholesale funding was adjusted to exclude the impact of TLTRO III on both NII and on interest bearing assets & liabilities As communicated in February 2023 10% (vs 7% in 4Q2022) 30% (vs 29% in 4Q2022) 9#10Highly liquid balance sheet As at 31 March 2023 (€ bn) 25.39 25.39 Other assets 1.76 1.20 Other REMU properties 1.05 2.14 Equity 0.61 Wholesale 1.99 0.48 Funding from Central Bank Net loans 10.01 Due to banks Securities 2.90 Due from banks 0.42 18.97 Cash, balances 9.25 with Central Banks Customer deposits Total assets Total liabilities & equity • • Cash, balances with Central Banks of €9.2 bn, of which €2.0 bn TLTRO III Immediate benefit from ECB depo rate increases¹ Securities of €2.9 bn (of which €2.7 bn fixed income portfolio) Fixed income portfolio up 10% qoq and 48% yoy • • Careful expansion to continue subject to market conditions Net loans of €10.0 bn (of which €9.7 bn performing book) >95% of loan book variable based including: 52% linked with Euribor; full benefit with a time lag 22% linked with Bank's base rate 17% linked with ECB MRO rate Customer deposits of €19.0 bn Cyprus banking system has ample liquidity; gradual deposit repricing expected Sticky deposit base of which 60% Retail-based Wholesale funding of €0.6 bn Expected to gradually increase to comply with MREL requirements • On-going tangible book value build-up 31 March 2023 31 December 2022 (IFRS 17) qoq • Tangible Book Value (€ bn) 1.85 1.75 5% Tangible Book Value per share (€) 4.15 3.93 6% 1) Excluding TLTRO III of €2 bn 10 10#11Robust liquidity position; surplus liquidity of €7.4 bn Diversified, mainly Retail funded deposit base Group deposits deposits Highly liquid balance sheet Liquid assets 59% insured 5% 21% 60% €19.0 bn 14% SMEs Retail Corporate IBS1 3% • Sticky deposit base • 59% insured deposits • 60% Retail • Average size of Retail deposits: c.€27k 4% 78% 19% 16% €12.4 bn 58% • of liquid assets held in Cash balances with Central banks TLTRO proceeds Placements with Banks Amortised cost bonds FVOCI bonds Liquidity ratios historically significantly above minimum requirements 296% 299% 300% 291% 303% 248% 160% 160% 168% 160% 145% 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 LCR NSFR 1Q2023 LCR (excluding TLTRO III) 100% minimum requirement • Strong liquidity ratios • • • LCR ratio of 303% (248% when excluding TLTRO III) Surplus liquidity of €7.4 bn (€5.4 bn when excluding TLTRO III Cash, balances with Central Banks of €9.2 bn Highly rated fixed income portfolio of low average duration • Prudent interest rate risk management; majority of positions in FVOCI² book hedged for interest rate risk 1) 2) • Amortised cost portfolio with low average duration and high average rating of A1 or at Aa3 when Cyprus government bonds are excluded (refer to slide 14) International Business Services: servicing exclusively international activity companies registered in Cyprus and abroad and non residents Investments classified as fair value through other comprehensive income 11#122) 3) 4) 7237 Retail funded deposit base up 7% yoy; loan to deposit ratio at 53% Deposits at €19.0 bn; market share at 37.3% Deposit pass through remained at 10% € bn +7% yoy 19.0 19.0 Time & Notice Savings, Current & Demand Cost of deposits (bps) 19.0 17.7 1 21% IBS 5.6 29% 5.7 30% 5.8 33% 14% Corporate² 2 2 3 7 10 5% SMEs 31 20 20 10 13.4 13.3 60% 6 Retail 11.9 0 1Q2022 2Q2022 0 3Q2022 4Q2022 1Q2023 Mar 23 Mar 22 Dec 22 Time & Notice Mar 23 Time & Notice deposit pass-through4 c.7% c.10% Resilient Time & Notice deposit pass-through4 Savings, Current & Demand Time & notice deposits by maturity Up to 1 month 1-3 months 3-6 months 6-9 months 9-12 months Over 12 months 17% 19% 19% 3% 31% 11% €5.7 bn Group deposits by passport origin³ 4% 7% 6% 14% by country of residence 1% 5% 2% 5% 00 69% Cyprus Other EU Other countries 87% Other European countries Russia/Belarus International Business Services: servicing exclusively international activity companies registered in Cyprus and abroad and non residents Including large and international corporate Origin is defined as the country of passport of the Ultimate Beneficial Owner Calculated as a percentage of the cost of Time and Notice deposits over average 6m Euribor rate of the period 12 12#131) 2) 3) Another seasonally strong quarter of new lending of €624 mn, up 41% qoq New lending of €624 mn in 1Q2023, broadly flat yoy Gross performing book² up 1% yoy to €9.9 bn € mn +41% qoq 622 624 104 537 64 489 48 444 31 1 297 258 238 261 234 64 55 77 42 44 128 145 108 115 122 68 51 40 43 78 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 Shipping & International Corporate SME Retail Housing Retail other 42%¹ Leading market share in loans • • • As at 31 March 2023 Non-legacy loan book which includes Corporate and Large corporate, International corporate, International business services, Wealth and Markets, SME and Retail Facilities/limits approved in the reporting period Gross loans (€ bn) +1% yoy 9.75 9.92 9.92 9.80 9.90 0.70' 0.74 0.75 0.69 0.67 3.86 3.91 3.90 3.83 3.90 1.04 1.05 1.05 1.04 1.02 3.24 3.31 3.32 3.35 3.39 -0.91. -0.91- 0.90 0.89 -0.92- Mar 22 Jun 22 Sep 22 Dec 22 Mar 23 Another strong quarter of new lending driven by increased seasonal business demand Gross performing loan book2 up 1% yoy and qoq Meticulous track record of repayment capability; 99% of new exposures³ in Cyprus since 2016 are performing 13#14Fixed income portfolio up 10% qoq; careful expansion to continue¹ Fixed income securities per category - NBV Fixed income securities per issuer type - NBV % assets (€ mn) 7% 10% 11% 2,747 2,500 415 454 1,855 FVOCI² 604 +10% (€ mn) qoq 2,747 2,500 135 A1 110 Aa3 970 1,855 838 Other financial & other corporations 35 Average yield of 2,332 1Q2023 new investments: 3.61% Financial Institutions 559 310 Aaa 294 2,046 Supranationals 209 426 492 A1 Other Governments 278 Amortised cost 1,251 Mar 22 Dec 22 Mar 23 Amortised cost FVOCI Average contractual duration 2.24 3.62 (years) Average duration taking into • consideration interest rate 2.12 0.42 hedging (years) Average rating A1 Baa3 1) Subject to market conditions 2) Investments classified as fair value through other comprehensive income Cyprus Government 774 832 840 Ba1 Mar 22 Dec 22 Mar 23 Average rating per issuer type Mark to market impact of Amortised cost portfolio at €87 mn in 1Q2023; (c.85 bps) of CET1 ratio Majority of positions in the FVOCI book are hedged for interest rate risk, therefore minimal effect on reserves expected from interest rate changes Ample excess liquidity conducive for further expansion of fixed income portfolio¹ 14#152) 3) 323 1) Non interest income at €72 mn in 1Q2023 Total non NII (€ mn) 85676 11 38 227 79 76 72 71 4 2 2 17 6 14 16 13 10 10 10 6 35 45 45 1Q2022 2Q2022 15 45 45 42 3Q2022 4Q2022 Comparative information restated for transition to IFRS 17 from IFRS 4 1 REMU FX and other income² Net insurance result³ 10 • 44 1Q2023 Liquidity & NPE sale-related servicing fees Net fee & commission • . • • • QoQ Performance (1Q2023 vs 4Q2022) Net fee and commission income net of liquidity fees and NPE sale-related servicing fee, down 3% reflecting seasonally lower transactional fees As a reminder, liquidity fees and NPE sale-related servicing fees terminated in December 2022 and in February 2023 respectively Net insurance result³ broadly flat Net FX and other income² down 3% due to lower FX income through FX swaps partly offset by high revaluation gain in financial instruments YoY Performance (1Q2023 vs 1Q2022) Net fee and commission income net of liquidity fees and NPE sale-related servicing fee up 16% reflecting the introduction of price adjustments in February 2022, higher non-transactional fees and higher credit card commissions Net FX and other income² more than doubled, reflecting higher foreign exchange gains through FX swaps and higher revaluation gain in financial instruments Net FX gains/(losses) & net gains/(losses) on financial instruments are volatile profit contributors Gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties Net FX gains/(losses) & Net gains/(losses) on financial instruments, and other income Previously called insurance income net of insurance claims 15#16Transition to IFRS 17 from IFRS 4 IFRS 17 is an accounting standard. It does not change the economics of our insurance business Overview • Accounting change impacting the phasing of profit recognition on insurance contracts • Implementation on 1 January 2023 with retrospective application • • IFRS 17 does not change the economics of the insurance contracts but it does decrease the volatility of Group's insurance companies profitability Profit is recognised over the lifetime of the contract rather than substantially at inception, as was the case under IFRS 4 No expected impact on: • Regulatory capital of the Group • Insurance business solvency • Lifetime expected profit of insurance contracts • The Group's financial results over the longer-term; although near- term reported net insurance result expected to be lower Meaningful dividend generation from insurance business is expected to continue For more details on the transition to IFSR 17, please refer to section F9 of the press release > Balance Sheet and Capital Equity 31 December 2022 under IFRS 17 vs IFRS 4 • • Group's Total Equity reduced by €52 mn reflecting: Elimination of PVIF1 and related tax effect; c.€101 mn decrease Recognition of contractual service margin (CSM) liability; c.€42 mn decrease Remeasurement of insurance assets and liabilities; c.€91 mn increase Group's Tangible Equity increased by €64 mn 2022 Profit & Loss Decrease in Group's 2022 profit after tax by €14 mn reflecting: • • • Deferral of new business profit Assumptions changes on the valuation of insurance contract assets and liabilities Less market volatility in P&L for unit-linked business under VFA² as part of the changes adjusts the CSM 1) Present value of in-force life insurance contracts 2) Variable Fee Approach (VFA) 16#17. Profitable Life Insurance business - valuable and sustainable contribution to the Group eurolife 1Q2022 Adjusted Income Statement; Transition to IFRS 17³ from IFRS 4 € mn 1Q2023 1Q2022 (IFRS 17) yoy% 2.9 Net Insurance result 4.7 6.1 -23% 6.1 (13.2) Other operating costs (non- 6.4 (0.3) (0.3) -20% attributable) 2.2 Net revaluations profit/(losses) on 1.5 (3.6) own investments PAT-contribution to the Group1 5.9 2.2 PAT 1 IFRS 4 163% Net insurance result under IFRS 17 Attributable expenses Removal of IFRS 4 and other reclassifications PAT IFRS 17 1 Gross written premium (GWP) 41.7 37.4 12% Net Insurance result down 23% yoy reflecting higher claims and higher attributable expenses due to increased new business, partially offset by lower reinsurance expenses . IFRS 17 vs. IFRS 4 accounting changes • Profit is deferred and spread over the insurance contract service period Assumptions changes on the valuation of insurance contract assets and liabilities • PAT¹ up 163% yoy mainly driven by increased net revaluation gains on own investments compared to volatile market conditions in 1Q2022 GWP up 12% yoy due to increased new business, reflecting continuous focus on business growth Solvency ratio at 201% at 31 March 2023 7% Contribution to non-NII • Directly attributable expenses (including premium tax) part of net insurance result 6% 27% Contribution Market to the share² 1) Group's PAT Contribution to the Group: Adjusted to exclude intercompany transactions between insurance companies and the Bank 2) As at 31 December 2022 3) For further information on the transition to IFRS 17 refer to section F9 of the press release 17#18• Profitable Non-Life Insurance business - valuable and sustainable contribution to the Group € mn Genikes Insurance 1Q2022 Adjusted Income Statement; Transition to IFRS 17³ from IFRS 4 1Q2023 1Q2022 (IFRS 17) yoy% Net Insurance result 4.8 5.1 -6% Other operating costs (non- (0.7) (0.7) 10% 5.1 attributable) 3.2 1.4 (6.5) 3.2 Revaluation gains/(losses) on investments 0.3 (0.9) PAT-contribution to the Group1 4.2 3.2 30% Gross written premium (GWP) 15.7 13.6 16% PAT1 IFRS 4 1 Net insurance result under IFRS 17 Attributable expenses Removal of IFRS 4 and other reclassifications PAT IFRS 17 Net insurance result down 6% yoy mainly driven by the impact of interest rate movements on insurance liabilities • PAT¹ up 30% yoy mainly due to increased revaluation gains on investments compared to volatile market conditions in 1Q2022 • • GWP up 16% yoy due to increased new and renewal business, reflecting continuous focus on business growth Solvency ratio at 182% as at 31 March 2023 6% Contribution to non-NII IFRS 17 vs. IFRS 4 accounting changes . Discounting and assumptions changes on the valuation of insurance contract assets and liabilities Directly attributable expenses part of net insurance result 4% 14% Contribution Market to the share² 1) Group's PAT 2) As at 31 December 2022 Contribution to the Group: Adjusted to exclude intercompany transactions between insurance companies and the Bank 3) For further information on the transition to IFRS 17 refer to section F9 of the press release 18#19. Leading card processing and payment solutions business in Cyprus JCC PAYMENT SYSTEMS € mn 1Q2023 1Q2022 yoy% 10% Net fee and commission income 6.2 5.1 21% 3% Contribution 85% to the Contribution Other income 0.6 1.51 -62% to non-NII Group's PBT2 Market share3 FX and net gains on revaluation 0.5 0.4 34% of investment Total contribution to Group's 7.3 7.0 3% Non-NII • Total operating costs (4.3) (3.8) 11% PBT-contribution to the Group 3.0 3.2 -6% • before non-recurring items • Restructuring costs - VEP (3.1) PBT-contribution to the Group 3.0 0.1 Market leader in payment business in Cyprus Trusted business partner Strong market growth reflects transition away from cash transactions Compulsory credit card payments in most businesses in Cyprus Strong transaction volume growth; up 22% yoy Value of transactions from January to March (€ mn) • Net fee and commission income up 21% yoy, in line with higher volume of transactions . Total operating costs up 11% yoy mainly driven by higher marketing and IT costs One-stop shop, providing various innovative solutions Backed by BOC with 75% stake 323 Includes c.€1mn catch up adjustment 2) Before non-recurring items 3) As at 31 December 2022 based on market statistics 2,392 1,841 1,960 1,929 I +22% yoy 2,929 1Q2019 1Q2020 1Q2021 1Q2022 1Q2023 19#20Cost to income ratio¹ at 34% in 1Q2023 Cost base continues to reflect benefits from efficiency actions -3% yoy 81 83 84 80 77 60 34 35 33 33 42 34 47 48 46 44 42 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 Comparative information restated for transition to IFRS 17 from IFRS 4 Other operating expenses Staff costs • Total operating expenses down 3% yoy reflecting benefits from efficiency actions partly offset by wage and inflationary pressures Staff costs up 9% qoq driven by higher cost-of-living adjustments (COLA2), salary increments and accrued staff reward costs of c.€2 mn (variable pay, driven by both delivery of the Group's strategy as well as individual performance) Staff costs down 4% yoy as VEP savings offset inflationary pressures Other operating expenses down 19% qoq due to seasonally higher professional and marketing expenses in 4Q2022 Other operating expenses flat yoy C/I ratio¹ at 34% for 1Q2023, down 5 p.p. qoq supported by higher revenues Cost to income ratio¹ at 34% supported by higher revenues 60% 57% 49% 47% 39% 34% 34% 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 FY2022 1Q2023 Excluding special levy on deposits and other levies/contributions 2) 4.4% effective from 1 January 2023, reflecting c.50% of prior year's inflation rate 20#211) 2) 3) Leverage leading Digital Capabilities to serve customers and the economy Digital transactions ratio¹ at 94% 92% 94% 86% Digitally engaged customers ratio at 83% 76% 79% 83% Leader in shaping the digital transformation of local economy JINIUS Mar 21 2 Mar 22² Mar 23 Mar 21 Mar 22 Mar 23 Average mobile logins per month Active users of Internet and/or Mobile Banking (k '000) 427 379 332 23 × 19x 20x Mar 21 Mar 22 Mar 23 Mar 21³ Mar 223 Mar 23 ☐ This is the ratio of the number of digital transactions performed by individuals and legal entity customers to the total number of transactions. Transactions include deposits, withdrawals, internal and external transfers. Digital channels include mobile, browser and ATMs Comparative figures have been revised in order to include data for the transactions of "Payroll & Group Transfers" through 1Bank Comparative figures have been revised in order to include active users for business subscribers • Demographic Bank Branches J! Business gertners میرا Vision Introduction of the Digital Economy Platform to optimise processes within the economy and create new revenue sources over the medium-term • Bringing stakeholders together • Connecting businesses with each other and with consumers • Driving opportunities in lifestyle banking and beyond Launch of first set of services for digitising business to business activities (eg: electronic invoicing, tenders service, remittance management and payments) >1,500 companies registered on the platform 21#22Capital, Liquidity & Asset Quality 22 222#23Robust capital position with CET1 at 15.2%¹ and Total Capital ratio at 20.3%¹ min OCR requirement for 2023² Restated for FY2022 dividend³ 20.3% 3.0% 15.2% 0.5% (0.2%) 0.9% (0.7%) 15.5% 15.2% 2.1% (0.2%) (0.3%) 10.25% 15.10% CET1 31 Dec 2022 Organic Capital generation IFRS 17 (day 1 impact) RWAs Final Phasing in of IFRS 9 Other CET1 Accrued 31 Mar 20235 dividend CET1 31 Mar 2023 1 AT1 T2 Post-dividend Total Capital ratio 31 Mar 20231 • • • • Organic capital generation4 of c.90 bps in 1Q2023 Final phasing in of IFRS 9 impact of c.65 bps on 1 January 2023 IFRS 17 day 1 (1 January 2023) benefit of c.50 bps on insurance business equity distributed to the Bank as dividend in February 2023 The Group continues to monitor opportunities for the optimisation of its capital position including Additional Tier1 capital accrual Dividend distribution Total distribution of €22.3 mn out of FY2022 profitability, equivalent to c.20 bps of CET1 ratio as at 31 December 2022 Payout ratio of 14% out of FY2022 Group's adjusted recurring profitability (as reported in FY2022 Annual Report) For CRR compliance purposes, an accrual for dividend at a payout ratio of 30% of the Group adjusted recurring profitability for the period, in line with the Group's approved dividend policy7, was recognised Based on profit after tax before non-recurring items Includes unaudited/unreviewed profits for 1Q2023 F Includes unaudited/unreviewed profits for 1Q2023 and for compliance with CRR an accrual for an estimated final dividend at a payout ratio of 30% of the Group's adjusted recurring profitability in line with the Group's approved dividend policy. Any recommendation for a dividend is subject to regulatory approval 456 4) 5) 6) 23 2) OCR - Overall Capital Requirement (refer to slide 43) 3) Opening CET1 restated following ECB approval and BOD recommendation for a final dividend payment of €22.3 mn out of FY2022 profitability. Dividend payment is subject to shareholders approval at the AGM on 26 May 2022 7) Any recommendation for a dividend is subject to regulatory approval Profit after tax before non-recurring items (attributable to the owners of the Company) taking into consideration the AT1 coupon 23#241) 2) 3) MREL position • MREL ratio as % of RWAs¹ at 20.82%² as at 31 March 2023 MREL (% of RWAs) 4.021 • MREL ratio as % of Leverage Ratio Exposure (LRE) of 10.01% as at 31 March 2023 + 20.82%² 3 Senior preferred liabilities 4.45% • Based on latest SRB communication: . final target is set at 24.35%¹ of RWAS • MREL as % of LRE target at 5.91% to be met by 31 December 2025 • interim requirement of 1 January 2022 set at 14.94% of RWAs and 5.91% of LRE must continue to be met The Bank continues to evaluate opportunities to advance the build-up of its MREL liabilities Own funds 16.37% CBR1 + 24.35% 31 March 2023 (as % of RWAs) MREL requirement (as % of RWAs) as at 31 Dec 2025 The Combined Buffer Requirement (CBR) of 4.02% as at 31 March 2023 applies on top of MREL as %RWAs and will further increase on 30 November 2023 following increase in CcyB from 0.00% to 0.50% of the total risk exposure amounts in Cyprus (as announced by Central Bank of Cyprus) Includes unaudited/unreviewed profits for 1Q2023 and for compliance with CRR an accrual for an estimated final dividend at a payout ratio of 30% of the Group's adjusted recurring profitability in line with the Group's approved dividend policy. Any recommendation for a dividend is subject to regulatory approval MREL-eligible senior preferred bonds of €300 mn and other MREL eligible liabilities 24#251) 2) NPE ratio decreased at 3.8%; limited NPE inflows NPE organically reduced by 5% qoq (€ mn) 1,343 -5% 411 389 551 129 107 Dec 21 Dec 22 Mar 23 Allowance for Expected Loan Credit Losses Net NPES NPE ratio reduced to 3.8%; 1.1% on a net basis Residual NPEs comprises mainly Retail NPE inflows remain under control 389 99 (€ mn) 197 (Єmn) 7 19 20 20 13 10 49 44 Mar 23 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 1 Re-performing NPEs Retail SMEs Corporate No signs of deterioration due to interest rate rises NPE coverage increased to 73% 151% 156% 12.4% 134% 128% 10.6% 9.3% 82% 83% 73% 69% 74% 4.0% 3.8% Re-performing NPES¹ 46% 5.5% 4.7% <5% - 4.0% 1.3% 1.1% Dec 21 Jun 22 Sep 22 Dec 22 Mar 23 Dec 23 Target Gross NPE ratio Net NPE ratio 59% 60% 69% 73% Dec 21 Sep 22 Dec 22 Mar 23 2 Tangible collateral Core NPES 82% Mar 23 In pipeline to exit NPEs subject to meeting all exit criteria; the analysis is performed on a customer basis Restricted to Gross IFRS balance Allowance for expected loan credit losses 25#26COR of 44 bps for 1Q2023; resilient credit portfolio quality 1.18% 0.43% Bank's IFRS 9 Macroeconomic assumptions Base line GDP rate Unemployment rate 0.57% 0.44% 0.44% 0.44% 0.75% 0.61% 2023 2.7% 6.9% 2024 2.5% 6.8% FY2020 (0.04%) FY2021 FY2022 1Q2022 1Q2023 bps 44 41 45 42 44 61 51 50 45 9 42 Charge 10 7 4 (bps) 6 15 48 24 35 36 16 9 10 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 • Reversal (bps) -7 -9 COVID-19 Interest on net NPEs not received in cash New lending Stage 3 Stage 1 & 2 -17 Cost of risk of 44 bps, flat qoq and yoy mainly reflecting: • • releases on management overlays for performing book in specific sectors (including tourism) due to continuing strong loan performance and expected improved sector performance loan credit losses on Stage 2 and Stage 3 exposures following post model adjustments to capture uncertain macroeconomic conditions and conservative assumptions Ongoing monitoring of asset quality and customer behaviour; no signs of asset quality deterioration to date 26#27REMU: Asset disposals steady qoq Organic sales of €43 mn in 1Q2023 Organic sales € mn (contract prices¹) #161 #212 #139 #162 #138 Organic sales consistently close to Open Market Value; comfortably above Book Value 119% 114% 113% 112% 107% 51 94% 48 43 42 43 88% 90% 86% 91% 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 # properties Organic sales REMU stock reduced to €1.05 bn as at 31 March 2023 Group BV (€ bn) #3,388 #2,860 #2,594 #2,510 1Q2019 1Q2020 Net proceeds to BV 1Q2021 1Q2022 1Q2023 Gross proceeds to OMV Properties sold exceed properties acquired since 2017 Group BV (€ mn) 1.47 1,412 1.21 1.12 c.80% of Open Market Value (1,577) 1,438 1.05 (19) (204) 1,050 Dec 20 Dec 21 Dec 22 Mar-23 # properties 1) Amounts as per Sales Purchase Agreements (SPAs) 1 Jan 2017 Additions Sales Transfer to/from own Impairment 31 Mar 2023 & FV loss properties 27#28. Substantial progress against our ESG agenda Carbon Neutral by 2030 Progress on carbon neutrality target in FY2022: For the Bank to meet the carbon neutrality target, the Scope 1 and Scope 2 GHG emissions should be reduced by 42% (absolute target) by 2030. The absolute reduction target has been set following the climate scenario of 1.5°C which is aligned with the Paris Agreement. The Bank achieved 8% reduction in Scope 1 and Scope 2 emissions as at 31/12/2022 compared to the baseline year of 2021. Environment Governance Progress on carbon neutrality target in 1Q2023: • c.255k KWh energy savings yoy Social • • • c.123k investment in energy-saving activities in 1Q2023 The Bank formulated a plan of action to reduce Scope 1 and Scope 2 and meet carbon neutrality target by 2030 and plans to invest in energy efficient installations and actions and replace fuel intensive machineries and vehicles from 2023 to 2025, which would lead to approximately 5-10% reduction in Scope 1 and Scope 2 GHG emissions by 2025 compared to 2021. The Bank expects that the Scope 2 GHG emissions will be reduced further when the energy market in Cyprus shifts further towards renewable energy. 42% 8% 2022 2030 Target Bank-Scope 1 and Scope 2 GHG emissions Emissions (CO2e tonnes per year) 127% 138 175 - Scope 1 Stationary compustion of facilities 18% 19% 12.451 ↑20% 11.423 15% 11.405 10.414 726 619 164 197 Scope 1 - Mobile combustionof vehicles Scope 1 Fugitive Emmissions Scope 2 Purchased Electricity Total Scope 1 and Scope 2 2021 2022 28#29Substantial progress against our ESG agenda First TCFD Report Published The first TCFD report has been published by the Company, as part of its 2022 Annual Financial Report, presenting the current activities and future plans in the climate field, structured in the core elements of how organisations operate: governance, strategy, risk management and metrics and targets. Environment Governance Financed Scope 3 GHG emissions on 2022 loan portfolio (CO2e tonnes per year (mn)) 5.0 4.4 4.9 0.06 0.03 0.04 Net zero by 2050 PCAF • • Partnership for Carbon Accounting Financials The Bank joined the Partnership for Carbon Accounting Financials (PCAF) in October 2022 and is following the recommended methodology for the estimation of the Financed Scope 3 GHG emissions. Estimated the Financed Scope 3 GHG emissions for approximately 88% of Gross Loans portfolio using PCAF methodology and proxies The Bank is currently in the process to set decarbonisation targets in specific sectors and asset classes of the loan portfolio Continue to build out the green product offerings • Published the Sustainable Finance Framework 1) Score 1-5; 1 represents the highest data quality Social 1.16 5.0 Business loans Commercial Real Estate Mortgages Motor vehicles DQS: PCAF Data Quality Score1 Customers . • c.€3.62 mn fil-eco loans granted in 1Q2023 Green car loans launched end of 2022 • c.€0.56 mn granted in 1Q2023 Green Cars loans • The majority of Financed Scope 3 GHG emissions derive from Business Loan asset class The most carbon concentrated sectors under Business Loan asset class are Transportation and storage (24%), Construction (20%), Manufacturing (16%), Accommodation and food service activities (12%), and Wholesale and retail trade (10%) Decarbonisation target expected to be set for most carbon concentrated sectors of business loan asset class 29#30• . Substantial progress against our ESG agenda BOC Oncology Centre Cumulative investment of c.€70 mn from 1998 to March 2023 60% of diagnosed cancer cases in Cyprus are being treated at the Centre CSR Program • >15 projects running in 1Q2023 under the pillars: Health, Education, Environment Network Support CY1 SupportCY1 Network: 174 members including BOC contributing >€880k to the society (monetary, products and services) from March 2020 to March 2023 Bank of Cyprus Cultural Foundation Environment <<AISTHISEIS>>: Continued multisensory museum experience promoting and facilitating the participation of vulnerable groups in culture and society RelnHerit program: Second year of facilitating innovation and research cooperation between European museums and heritage Participation of 4430 people in Cultural Foundation events between January to March 2023 (including 4 educational programs for schools) IDEA (Non-profit organisation, acting as incubator accelerator for start-ups since 2015) . • 89 new companies created and 210+ entrepreneurs supported in total through Startup program since incorporation c.€4 mn invested in startup business creation since incorporation Governance Social MSCI ESG RATINGS 1) 2) AA CCC B BB BBB A AA AAA Women representation at Board and Senior Management levels As at 31 March 2023: • • 27% of women representation in Group's management2 bodies as 40% at Board Level are female 39% for key positions below Extended EXCO are female ≥ 30% 27% 27% 2021 2022 2030 Target Our people • Winning moments training program launched in 2023 aiming to improve Customer experience through upgrading the customer service. Well at Work program continues into 2023 with new initiatives to enhance mental health, physical, financial and social health SupportCY is a network of companies and NGOs, created and coordinated by Bank of Cyprus since March 2020, with the aim to support the public services performing frontline duties during the Pandemic. SupportCY has become the leading network for offering assistance and support to the society in general. The members on 31//03/2023 were 174 companies and NGOs EXCO and extended EXCO 30#31Concluding remarks Resumption of dividend payments after 12 years 1Q2023 performance ahead of 2023 targets Profit after tax of €95 mn in Q1 2023, equivalent to an annualised ROTE of 21.3% Investor Update Event 8 June 2023 London 31#32A3 Baa1 Baa2 Baa3 Ba1 Ba2 Ba3 B1 B2 B3 Caa1 Caa2 Caa3 Ca ပီပ Steadily improving credit ratings for BOC Moody's upgraded rating to Ba1; outlook positive Dec 14 May 15 Oct 15 Mar 16 Aug 16 Dec 16 May 17 Sep 17 BOC-Moodys long-term deposit rating Sovereign rating Fitch upgraded rating to B+; outlook positive AS- BBB+ BBB BBB- BB+ BB BB- B+ B B- CCC+ CCC CCC- CC C+,C,C- Dec 14 Apr 15 Sep 15 Feb 16 Jun 16 Nov 16 Apr 17 BOC-Fitch Long-term Issuer Default Rating Sovereign rating Aug 17 Jun 18 Nov 18 Jan Apr 19 Sep 19 Feb 20 Jul 20 Dec 20 May 21 Oct 21 Mar 22 Aug 22 Dec 22 Oct 21 Feb 22 Jul 22 Dec 22 B+ BBB May 23 A- BBB+ BBB Investment grade Ba1 BBB- BB+ BB BB- B+ B B- CCC+ CCC CCC- Investment grade CC C+,C,C- Oct 17 S&P upgraded rating to BB+; outlook positive BOC-S&P Long-term Issuer Credit Rating Sovereign rating 20 Dec 17 Mar 18 Jun 18 Aug 18 Nov 18 Feb 19 May 19 Aug 19 Nov 19 May Aug 20 Nov May Aug 2 Nov 21 Feb 22 May 22 Bank of Cyprus LT KOINO KYMPI BBB Investment grade BB- LT Cyprus Sovereign Credit rating Deposit Counterparty Risk Rating rating Outlook Senior Unsecured Debt Subordinate (Tier 2) MOODY'S Ba1 Ba1 Baa3 Positive Ba3 B1 S&P Global Ratings BBB N/A BB+ Positive BB- CCC Fitch Ratings BBB BB- N/A Positive N/A N/A 32#33Key Information and Contact Details Contacts Investor Relations & ESG Tel: +35722122239, Email: [email protected] Annita Pavlou Manager Investor Relations & ESG Tel: +357 22 122740, Email: [email protected] Elena Hadjikyriacou ([email protected]) Andri Rousou ([email protected]) Stephanie Olympiou ([email protected]) Dafni Georgiou ([email protected]) Executive Director Finance & Legacy Eliza Livadiotou, Tel: +35722 122128, Email: [email protected] Listing: LSE - BOCH, CSE - BOCH/TPKH, ISIN IE00BD5B1Y92 Visit our website at: www.bankofcyprus.com 33#34Appendix Macroeconomic overview 34#35EU Recovery and Resilience Facility (RRF) To mitigate the socioeconomic impact of the pandemic & to strengthen the resilience and competitiveness of the Cypriot economy €1.2 bn from EU mechanism €1.0 bn additional funds mobilised in Cyprus 58 reforms 75 investments M c.7% increase in GDP for 2022-2026 c.3% increase in employment for 2021-2026 +11,000 new high value-added jobs preparing for a green and digital era IIIII 75 new investments to be initiated including: • • Interconnection between Cyprus, Greece and Israel Promotion of diversification and competitiveness via introduction of financing schemes to SMEs and start-ups 41% 23% Green Transition Digital Transition 36% Other • Promotion of sustainable transport (eg: electric vehicles) . Prefinancing €157 mn received in Sep 2021 and; First payment of €85 mn received in Dec 2022 58 reforms to be introduced including: Modernising public and local authorities, improving efficiency in judicial system Introducing green taxation Establishing e-government 35#36Limited economic effects on BOCH from Russia-Ukraine war Direct Impact • . No banking operations in Ukraine/Russia since 2015; <€1 mn net legacy exposure as at 31 March 2023 Limited direct exposure to loans (c. €87 mn of which c.€80 mn is performing) related to Russia and Belarus; granular portfolio and secured mainly by real estate properties in Cyprus; none of which are under sanctions Exposure to Russia and Belarus Actions taken by the Bank to address legacy shortcomings Since 2014, the Bank has engaged in a very demanding and rigorous anti- financial crime remediation programme The Bank fully adheres to all relevant UN, EU, USA, UK sanction frameworks • The Bank has implemented additional measures to monitor the complicated sanctions environment in 2022 including systemic enhancements, specialised training, revision of risk appetite and continuous support by US lawyers specialised on sanctions c.4%1 c.1% of deposits of net loans Recent Progress • Indirect Impact The economic effects result from higher inflation and a slowdown in activity, with tourism sector most impacted; Tourism sector recovering to pre-pandemic levels. Stronger than anticipated tourist arrivals in 2022 from markets other than Russia (like UK, Greece, Germany) Cyprus is not an importer of Russian oil/gas though it is indirectly affected by pricing pressures in the international energy markets. Cyprus mainly imports oil from other countries (like Greece, Italy, the Netherlands), though a steady increase in contribution from renewables is noted Services accounting for c.10% of GDP² of which some relate to Russia/Ukraine and thus adversely impacted; no credit risk exposure as sector not levered By passport origin, defined as the country of passport of the Ultimate Beneficial Owner 1) 2) In accordance with 2021 structure of the economy Eliminating Professional Intermediaries Customer Terminations and Rejections 44 1.601 currently 0 Intermediaries in 2014 Intermediaries 25.909 customers terminated/suspended (*) 12.028 potential new customers rejected exclusively on Compliance (KYC/AML) grounds in years 2012-2022 (*) customers have multiple accounts 36#37Macro & Banking Overview Loan market share at 42% in Mar 2023 Strong market shares in resident and non-resident deposits Loans Deposits Residents Non-residents 45.4% 41.1% 41.9% 41.9% 41.2% 41.1% 40.9% 42.4% 38.3% 37.1% 38.8% 37.3% 37.9% 37.5% 37.7% 37.9% 35.8% 35.4% 35.2% 36.0% 36.0% 35.1% 35.0% 34.8% 35.8% 36.8% 37.1% 37.2% 37.3% 32.8% 35.3% 34.9% 34.9% 34.8% 33.5% 34.1% 34.3% 33.3% 33.0% 31.5% 1 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 Mar 23 Average contractual interest rates (bps) (Cy) Yield on Loans Cost of Deposits Customer spread 489 429 380 376 375 363 381 343 347 352 355 479 422 374 371 371 360 378 340 345 350 353 6 5 4 3 3 2 2 2 3 7 10 3Q2020 4Q2020 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 Mar 23 1) The market share as at 31 March 2022 was affected by the decrease in total loans in the banking sector, following RCB's decision to phase out its banking activities, and NPE disposal of a peer C 37#38Analysis of Deposits Deposits by Currency (€ bn) 18.97 0.34 0.07 18.79 19.00 18.45 17.66 0.32-0.09 0.32-0.08 1.52 1.70 0.32 0.08 1.53 0.33 0.07 1.52 1.39 15.86 Mar 22 16.53 Jun 22 Deposits by Customer Sector (€ bn) Other Currencies 16.69 17.07 17.04 GBP USD EUR Sep 22 Dec 22 Mar 23 18.45 18.79 19.00 18.97 17.66 11.45 11.13 11.35 11.45 Retail SME 11.22 0.86 0.16 0.91 0.11 0.95 0.14 3.47 3.67 3.91 1.01 0.14 3.96 0.93 0.14 3.97 1.95 2.31 2.66 Mar 22 Jun 22 Sep 22 2.54 Dec 22 2.48 Mar 23 International corporate International Banking Services Corporate & Large Corporate Deposits by Type (€ bn) 17.66 5.82 18.45 18.79 19.00 18.97 5.76 5.68 5.60 5.68 11.84 12.69 13.11 13.40 13.29 Mar 22 Jun 22 Sep 22 Dec 22 Mar 23 Time & Notice deposits Current, Demand & Savings accounts 38#39Appendix Additional financial information 39#40Income Statement € mn Net Interest Income 1Q2022 4Q2022 1Q2023 qoq% yoy% (IFRS 17) (IFRS 17) 162 71 136 19% 127% Net fee and commission income 44 44 50 -12% 1% Net insurance result Net foreign exchange gains and net gains/(losses) on financial instruments Net gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties 13 12 12% 10 11 10 -11% -15% 2 5 2 -34% -68% Other income Total income Staff costs 3 4 5 -38% -31% 234 137 215 8% 70% (46) (47) (42) 9% -4% Other operating expenses (34) (34) (42) -19% -1% Special levy on deposits and other levies/contributions Total expenses Operating profit (11) (91) 143 Loan credit losses (11) Impairments of other financial and non-financial assets (11) Provisions for pending litigations, regulatory and other matters (net of reversals) (6) Total loan credit losses, impairments and provisions (28) Profit before tax and non-recurring items 115 Tax (18) Profit attributable to non-controlling interests (1) Profit after tax and before non-recurring items (attributable to the owners of the Company) Advisory and other restructuring costs - organic 96 (1) Profit after tax - organic (attributable to the owners of the Company) 95 Provisions/net profit/(loss) relating to NPE sales Restructuring and other costs relating to NPE sales Restructuring costs – Voluntary Staff Exit Plan (VEP) ༄དྨེ⊕༅€གླ©>སླ€སླ€€@ (10) (11) -7% 12% (91) (95) -5% -1% 120 19% 213% (12) (11) 0% -6% (13) -8% 126% (8) -26% (17) (32) -10% 68% 88 29% (13) 40% 236% (1) -45% 74 28% (1) -22% -15% 73 29% 2 -100% -100% -41% -72% -100% Profit after tax (attributable to the owners of the Company) 95 75 26% 40 40#41Consolidated Balance Sheet 31.12.2022 % Assets (€ mn) 31.03.2023 (IFRS 17) change Liability and Equity (€ mn) 31.03.2023 Cash and balances with central banks 9,248 9,567 -3% Deposits by banks 31.12.2022 (IFRS 17) % change 481 508 -5% Loans and advances to banks 416 205 103% Funding from central banks 1,988 1,977 1% Debt securities, treasury bills and equity investments 2,897 2,704 7% Customer deposits 18,974 18,998 0% Net loans and advances to customers 10,013 9,953 1% Debt securities in issue 300 298 1% Stock of property 978 1,041 -6% Subordinated liabilities 307 302 2% Investment properties Other assets Total assets 83 85 -2% Other liabilities 1,195 1,157 3% 1,752 1,734 1% Total liabilities 23,245 23,240 0% 25,387 25,289 0% Shareholders' equity 1,899 1,807 56 5% Other equity instruments 220 220 Total equity excluding non- 2,119 2,027 controlling interests 5. 5% Non-controlling interests Total equity Total liabilities and equity 23 22 3% 2,142 2,049 5% 25,387 25,289 0% • As at 31 March 2023 there were 446,199,933 issued ordinary shares 41#42Risk Weighted Assets- Regulatory Capital Risk Weighted Assets by Geography (€ mn) Reconciliation of Group Equity to CET1 € mn 31.03.23 31.12.21 30.09.22 31.12.22 31.03.23 Shareholder's equity 1,899 Cyprus 10,595 10,472 10,059 10,108 Less: Intangibles (28) Overseas 99 66 55 56 Less: Deconsolidation of insurance entities and other entities¹ (123) RWAS 10,694 10,538 10,114 10,164 Less: Regulatory adjustments (200) RWA intensity 43% 40% 40% 40% CET1 1,548 Risk Weighted Assets 10,164 CET1 ratio² 15.2% Risk Weighted Assets by type of risk (€ mn) CET1 ratio fully loaded 15.2% 31.12.21 30.09.22 31.12.22 31.03.23 Credit risk 9,678 9,523 9,103 9,153 Market risk Operational risk 1,016 Total 10,694 1,015 10,538 1,011 10,114 1,011 10,164 1) 2) Includes for compliance with CRR an accrual for an estimated final dividend at a payout ratio of 30% of the Group's adjusted recurring profitability in line with the Group's approved dividend policy. Any recommendation for a dividend is subject to regulatory approval Includes unaudited/unreviewed profits for 1Q2023 and for compliance with CRR an accrual for an estimated final dividend at a payout ratio of 30% of the Group's adjusted recurring profitability in line with the Group's approved dividend policy. Any recommendation for a dividend is subject to regulatory approval 3) Capital amounts and ratios include profits for the year ended 31 December 2022; restated following ECB approval and BOD recommendation for a final dividend payment of €22.3 mn out of FY2022 profitability. Dividend payment is subject to shareholders approval at the AGM on 26 May 2022 Equity and Regulatory Capital (€ mn) 31.12.21 31.12.223 31.03.232 Total equity excl. non-controlling interests 2,059 2,027 2,119 CET1 capital 1,620 1,540 1,548 Tier I capital 1,840 1,760 1,768 Tier II capital 300 300 300 Total regulatory capital (Tier I + Tier II) 2,140 2,060 2,068 42#431) Overall capital requirements Overall capital requirements for 2022 and 2023 CET1 ratio Total capital ratio 15.03% 10.25% 10.10% ССУВ- 0.02% 0.02% 1.25% 1.50% O-SII CCyB 1.25% 0.02% 1.25 O-SII 2.50% CCB CCB 2.50% 2.50% Pillar 2R 3.26% 15.10% 0.02% 1.50% 2.50% 3.08% Pillar 2R 1.83% 1.73% Tier 2 2.00% 2.00% AT1 1.50% 1.50% Total Pillar 1: 8% Pillar 1 4.50% 4.50% Pillar 1 4.50% 4.50% • • 2022 2023 2022 2023 CET1 and Total capital ratio minimum capital requirements for 2023 set at 10.25% and 15.10% P2R decreased by 25 bps to 3.08% in 2023. The revised P2R includes a revised P2R add-on of 0.33% relating to ECB's prudential provisioning expectations • Non-public guidance for P2G remains unchanged • Total O-SII buffer fully phased in January 2023 at 1.50% • Following the CBC's revised methodology described in its macroprudential policy in November 2022, the CcyB for the Group is expected to increase1 According to CBC, following the revised methodology described in its macroprudential policy in November 2022, decided to increase the CcyB from 0.00% to 0.50% of the total risk exposure amounts in Cyprus of each licensed credit institution incorporated in Cyprus. The new rate of 0.50% must be observed as from 30 November 2023 43#44Buffer to MDA Restrictions Level & Distributable Items¹ CET1 Ratios 15.2% 498 bps 10.2% CET1 ratio² MDA threshold 31 Mar 2023 31 Mar 2023 CET1 ratio CET1 min requirement [ ] bps Distance to MDA • · Significant CET1 MDA buffer as at 31 Mar 2023: 498 bps (€506mn) . Distributable items of €952 mn for BOCH as at 31 March 2023 •M-MDA3 buffer as at 31 Mar 2023: 588 bps (€598 mn) ⚫ BOCH fully utilises its AT1 and Tier 2 buckets as at 31 Mar 2023 • No prohibition applies to the payment of coupons on any AT1 capital instruments issued by the Company and the Bank • • Dividend distribution subject to regulatory approval as per 2022 SREP decision (previous dividend distribution prohibition lifted) 1) 2) 3) Distributable Items definition per CRR Includes unaudited/unreviewed profits for 1Q2023 and for compliance with CRR an accrual for an estimated final dividend at a payout ratio of 30% of the Group's adjusted recurring profitability in line with the Group's approved dividend policy. Any recommendation for a dividend is subject to regulatory approval The SRMR2 introduces the Maximum Distributable Amount related to MREL (M-MDA). The SRB may set restrictions for banks that do not comply with the CBR, which under the new Banking Package is added on top of the MREL requirements expressed in TREA, preventing them from distributing more than the M-MDA via various actions (including dividend payments on CET1, variable remuneration and payments on AT1 instruments). The M-MDA is calculated against the binding interim requirement of 14.94% 44#45Income Statement bridge' for 1Q2023 € mn Net interest income Net fee and commission income Net foreign exchange gains and net gains on financial instruments Net gains on derecognition of financial assets measured at amortised cost Net insurance result Net gains from revaluation and disposal of investment properties and on disposal of stock of properties Other income Total income Total expenses Operating profit Underlying basis Other Statutory Basis 162 162 44 44 13 1 14 0 0 1 2 3 10 10 2 3 234 1 235 (91) (7) (98) 143 (6) 137 Loan credit losses (11) 11 Impairments of other financial and non-financial assets (11) 11 Credit losses on financial assets and impairment net of reversals of non-financial assets Provisions for pending litigations, regulatory and other matters (net of reversals) (23) (23) (6) 6 Profit before tax and non-recurring items 115 (1) 114 Tax (18) (18) Profit attributable to non-controlling interests Profit after tax and before non-recurring items (attributable to the owners of the Company) Advisory and other restructuring costs - organic Profit after tax - attributable to the owners of the Company (1) (1) 96 (1) 95 (1) 95 1 95 1) Please refer to section F.1 'Unaudited reconciliation of consolidated income statement for the quarter ended 31 March 2023 between statutory basis and underlying basis' of the press release 45#46Analysis of Interest Income and Interest Expense Analysis of Interest Income (€ mn) 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 Loans and advances to customers 77 81 87 102 113 Loans and advances to banks and central banks 7 7 9 36 57 Investments and other financial assets at amortised costs 4 4 5 11 13 Investments FVOCI 35 2 2 91 94 103 151 25 2 185 Trading Investment Derivative financial instruments 2 2 2 5 6 Other investments at fair value through profit or loss Total Interest Income 93 96 96 105 156 191 Analysis of Interest Expense (€ mn) Customer deposits (1) (1) (1) (3) (4) Funding from central banks and deposits by banks 0 Loan stock (7) (7) Repurchase agreements 0 • • (1) (6) (14) (7) (7) (7) 0 0 0 Negative interest on loans and advances to banks and central banks (10) (10) (3) 0 0 (18) (18) (12) (16) (25) Derivative financial instruments Total Interest Expense (4) (4) (4) (4) (4) (22) (22) (16) (20) (29) 46 46#47Net interest income positively geared to further interest rate rises NII sensitivity to parallel shift in interest rates (annualised) Key simplifying assumptions Y1 +60bps +100bps • EUR €69 mn €112 mn • USD €1 mn 1 €2 mn • An instantaneous and sustained parallel movement in EUR and USD interest rates • Total €70 mn €114 mn • 175 bps parallel shift in USD interest rates Static balance sheet in size and composition Assets and liabilities whose pricing is mechanically linked to market / central bank rates assumed to reprice accordingly 50% pass through assumption for term deposits (Fixed and Notice) This sensitivity is not a forecast of interest rate expectations, and the Bank's pricing decisions in the event of an interest rate change may differ from the assumptions underlying this sensitivity. Accordingly, in the event of an interest rate change the actual impact on Group NII may differ from that presented in this analysis 47#48Income Statement by business line for 1Q2023 € mn Consumer SME Banking Banking Corporate International International and large corporate Banking Banking Banking Services Wealth & Markets RRD REMU Insurance Treasury Other Total Net interest income/(expense) 80 13 40 27 4 (10) (3) 162 Net fee & commission income/(expense) 15 3 6 1 13 1 1 (2) 6 44 Other income 1 1 11 8 3 28 Total income 96 16 46 8 41 5 5 (6) 9 Total expenses Operating profit/ (loss) Loan credit losses of customer loans net of gains/(losses) on derecognition of loans and changes in expected cash flows Impairment of other financial and non financial instruments Provision for litigation, claims, regulatory and other matters Profit/ (loss) before tax Tax Profit attributable to non controlling interest Profit/(loss) after tax and before non- recurring items (attributable to the owners of the Company) (41) 55 བྱེསྐྱརེ (5) (12) (2) (8) (2) (5) (4) (1) 11 =4 34 6 33 3 0 (10) 8 5 32 α ∞ 9 234 (3) (8) (91) 1 143 (7) 1 8 (1) (13) 1 42 (11) (11) (11) (6) (6) 48 (6) (2) 21 12 42 6 32 3 (5) (1) (4) (13) (21) 2 8 2 (4) 115 (5) (18) (1) (1) 22 42 10 12 37 5 28 28 3 12 (11) (18) 8 2 (10) 96 96 The above analysis is prepared on the basis of the Bank's internal MIS, which includes FTP and central cost allocation 48#49Appendix IFRS 17 Implementation 49 49#50Statutory Income Statement for insurance businesses for 1Q2023 eurolife Genikes Insurance € mn 1Q2023 1Q2022 (IFSR 17) yoy% € mn 1Q2023 1Q2022 yoy% (IFRS 17) Insurance revenue 17.9 19.0 -6% Insurance revenue 15.4 13.7 12% Insurance service expense (14.0) (12.3) 14% Insurance service expense (8.8) (6.8) 30% Net insurance service result 3.9 6.7 -42% Net insurance service result 6.6 6.9 -5% Reinsurance service expense (4.1) (4.1) -1% Reinsurance service expense (6.0) (4.4) 34% Reinsurance revenue 2.9 1.8 63% Reinsurance revenue 3.1 1.1 Net reinsurance service result (1.2) (2.3) -50% Net reinsurance service result (2.9) (3.3) -11% Net insurance finance income/(expense) (3.8) 13.1 Loss from investment and occupational (0.5) (0.2) 134% Insurance finance income and expense Reinsurance finance income or expense (0.4) 0.4 0.2 (0.1) pension contracts Net insurance financial result (0.2) 0.3 Insurance service result (1.6) 17.3 Insurance service result 3.5 3.9 -11% Other income 0.1 0.2 -37% Staff costs (non attributable) (0.4) (0.4) 9% Staff costs (non attributable) (0.1) (0.2) -30% Other operating costs (non-attributable) (0.5) (0.5) -4% Other operating costs (non-attributable) (0.1) (0.2) -3% Net revaluations and/or sale on financial assets 6.9 (15.6) Loss from revaluation and/or sale of investments 0.3 (0.9) at fair value through profit or loss¹ Total net expenses 6.8 (15.8) Total net expenses (0.6) (1.8) -70% Profit before tax 2.9 2.1 37% Profit before tax 5.2 1.5 Tax expense Profit after tax 5.2 (0.1) 1.4 -100% Tax expense (0.3) (0.4) -15% Profit after tax 2.6 1.7 48% Income statement based on the statutory financial statements of Eurolife and Genikes Insurance and including transactions with the Bank 1) Includes net revaluations and/or sale on policyholder assets included within "Net Insurance result" line in the Group's Income Statement (refer to slides 17 and 40) 50#51IFRS 17 implementation; Adjusted Balance Sheet as at 31 December 2022 Assets (€ mn) Cash and balances with central banks Loans and advances to banks Debt securities, treasury bills and equity investments Net loans and advances to customers Stock of property Investment properties Other assets Total assets Liability and Equity (€ mn) Deposits by banks Funding from central banks Customer deposits Debt securities in issue Subordinated liabilities Other liabilities Total liabilities Shareholders' equity Other equity instruments Total equity excluding non-controlling interests Non-controlling interests Total equity 31.12.2022 (IFRS 4) IFRS 17 adjustments 9,567 31.12.2022 (IFRS 171) 9,567 205 205 2,704 2,704 9,953 9,953 1,041 1,041 85 85 1,880 (146) 1,734 25,435 (146) 25,289 508 508 1,977 1,977 18,998 18,998 298 298 302 302 1,251 (94) 1,157 23,334 (94) 23,240 1,859 (52) 1,807 220 220 2,079 (52) 2,027 22 22 2,101 (52) 2,049 Total liabilities and equity 25,435 (146) 25,289 51 1) For more details on the transition to IFSR 17, please refer to section F9 of the press release#52IFRS 17 implementation; adjusted FY2022 Income Statement € mn FY2022 IFRS 4 FY2022 IFRS 17 adjustments IFRS 171 Net Interest Income 370 370 Net fee and commission income 192 192 Net foreign exchange gains and net gains/(losses) on financial instruments 36 (10) 26 Net insurance result² 71 (27) 44 Net gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties 13 13 Other income 17 17 Total income 699 (37) 662 Staff costs (190) 9 (181) Other operating expenses (153) 9 (144) Special levy on deposits and other levies/contributions Total expenses (38) (38) (381) 18 (363) Operating profit Loan credit losses 318 (19) 299 (47) (47) Impairments of other financial and non-financial assets Provisions for pending litigations, regulatory and other matters (net of reversals) Total loan credit losses, impairments and provisions Profit before tax and non-recurring items Tax (33) (33) (11) (11) (91) (91) 227 (19) 208 (36) сл (31) Profit after tax - organic (attributable to the owners of the Company) Restructuring and other costs relating to NPE sales Profit attributable to non-controlling interests Profit after tax and before non-recurring items (attributable to the owners of the Company) Advisory and other restructuring costs - organic Provisions/net profit/(loss) relating to NPE sales (3) (3) 188 (14) 174 (11) (11) 177 (14) 163 1 1 (3) Restructuring costs – Voluntary Staff Exit Plan (VEP) (104) Profit after tax (attributable to the owners of the Company) 71 (14) (3) (104) 57 FIL 1) 2) For more details on the transition to IFSR 17, please refer to section F9 of the press release Previously reported as insurance income net of claims and commissions under IFRS 4 52#53F2 1) 2) 2022 Quarterly Income Statement adjusted under IFRS 171 1Q2022 2Q2022 3Q2022 4Q2022 € mn Net Interest Income Net fee and commission income IFSR 4 71 IFSR 17 71 IFSR 4 74 IFSR 17 IFSR 4 IFSR 17 IFSR 4 IFSR 17 74 89 89 136 136 44 44 50 50 48 48 50 50 Net foreign exchange gains and net gains/(losses) on financial instruments Net insurance result² Net gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties Other income Total income Staff costs Other operating expenses Special levy on deposits and other levies/contributions Total expenses Operating profit 6 2 LO 5 1 13 11 12 12 16 11 17 13 15 10 23 10 5 5 2 N 2 4 4 2 2 4 4 5 5 3 3 5 5 Γ 146 137 153 145 172 165 228 215 (50) (47) (50) (48) (46) (44) (44) (42) (36) (34) (37) (35) (35) (33) (45) (42) (10) (10) (7) (7) (10) (10) (11) (11) (96) (91) (94) (90) (91) (87) (100) (95) 50 46 59 55 81 78 128 120 Loan credit losses (12) (12) (11) (11) (13) (13) (11) (11) Impairments of other financial and non-financial assets (5) (5) (8) (8) (7) (7) (13) (13) Provisions for pending litigations, regulatory and other matters (net of reversals) 0 0 (1) (1) (2) (2) (8) (8) Total loan credit losses, impairments and provisions Profit before tax and non-recurring items Tax Profit attributable to non-controlling interests Profit after tax and before non-recurring items (attributable to the owners of the Company) Advisory and other restructuring costs - organic Profit after tax - organic (attributable to the owners of the Company) Provisions/net profit/(loss) relating to NPE sales (17) Restructuring and other costs relating to NPE sales Restructuring costs – Voluntary Staff Exit Plan (VEP) Profit/(loss) after tax (attributable to the owners of the Company) For more details on the transition to IFSR 17, please refer to section F9 of the press release Previously reported as insurance income net of claims and commissions under IFRS 4 - ➢༅༔་hC 8 བྱང྄@ སོ (17) (20) 29 (6) 0 23 (1) 22 ៩ ន ន ន ១៩៩ (20) (22) (22) (32) (32) 35 59 56 96 88 (5) (8) (7) (16) (13) (1) (1) (1) (1) Γ 29 50 48 79 (4) (5) (5) (1) 25 45 43 78 (1) 1 1 (1) (1) 2 (1) (2) (2) 0 NENO 74 (1) 73 2 0 (101) (101) 17 29 29 26 (59) (61) 80 75 53#54IFRS 17 implementation¹; adjusted FY2022 Key Performance Ratios Key Performance Ratios Cost to income ratio FY2022 IFRS 4 FY2022 IFRS 171 Change 54% 55% +1 p.p. Cost to income ratio excluding special levy on 49% 49% deposits and other levies/contributions Operating profit return on average assets 1.2% 1.2% Basic earnings per share attributable to the owners 15.94 12.68 -3.26 of the Company (€ cent) Tangible book value per share (€) 3.79 3.93 +0.14 Return on tangible equity (ROTE) after tax and 11.3% 10.0% -1.3 p.p. before nonrecurring items² Return on tangible equity (ROTE)³ Leverage ratio4 4.3% 3.2% -1.1 p.p. 7.5% 7.8% +30 bps 2) 3) 4) 7237 For more details on the transition to IFSR 17, please refer to section F9 of the press release Recurring ROTE: calculated as Profit after Tax and before non-recurring items divided by quarterly average Shareholders' equity minus Intangible assets ROTE is calculated as profit after tax (attributed to the owners of the Company) divided by the quarterly average shareholders' equity minus intangible assets The ratio of tangible total equity (including Other equity instruments) to total assets as presented on the balance sheet. Tangible total equity comprises of equity attributable to the owners of the Company minus intangible assets 54#55Appendix Additional asset quality slides 55#561) 2) Well diversified loan portfolio with high quality collateral Gross loans (excluding legacy)1 by business sector of €9.90 bn € bn Private Individuals Hotels & Catering Real Estate Trade Professional 0.66 & Other services Other sectors 0.69 Construction 0.50 Manufacturing 0.38 0.90 1.20 1.11 Housing 3.79 Other 0.67 4.46 Private individuals Private individuals Business LTV2 housing €3.79 bn other €0.67 bn €5.44 bn <80% 91% 34% 73% >80% 9% 66% 27% Gross loans as at 31 March 2023 of Corporate (incl. IB and W&M, Large corporate and International corporate), SME and Retail Loan to Value (LTV) is calculated as the Gross IFRS Balance to the indexed market value of the property. Under Pillar 3 disclosures LTV is calculated as the Gross IFRS Balance to the indexed market value of collateral. Collateral takes into consideration the mortgage amount registered in the land registry plus legal interest from registration date to the reference date 56#57Gross loans and NPE coverage by Customer Type Gross loans by customer type (€ mn) 10,856 10,913 10,217 1,240 1,215 947 10,278 974 Retail other 3,741 3,788 3,542 3,559 Retail Housing 1,198 1,161 SMEs 1,119 648 754 685 1,096 668 International corporate Corporate and Large Corporate 4,029 3,995 3,924 3,981 Dec 21 Sep 22 Dec 22 Mar 23 Corporate Dec Sep Dec Mar 2021 2022 2022 2023 SME Dec Sep Dec Mar 2021 2022 2022 2023 Retail Dec Sep Dec Mar 2021 2022 2022 2023 NPE ratio 19.1% 15.9% 5.4% 5.0% NPE ratio 6.0% 3.0% 2.4% 2.3% NPE ratio 9.4% 7.0% 5.3% 5.0% NPE 80% 110% 130% 121% NPE 63% 65% 68% 67% NPE coverage coverage coverage ➤ Retail 46% 42% 39% 48% NPE total coverage 122% 176% 198% 190% NPE total 136% 140% 148% 151% Housing coverage Retail 62% 62% 49% 59% Other NPE total 130% 125% 130% 141% coverage 57#581) €22 mn net organic NPE reduction in 1Q2023 Net organic outflows (€ mn) -96 -74 -133 -57 -22 Inflows (€ mn) 20 20 New inflows Redefaults 7 13 Unlikely to pay. 19 5 13 17 7 5 10 10 .... 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 Outflows (€ mn) Curing of restructuring 13 -11 -12 -13 -12 DFAS & DFES -40 -10 -61 -32 -14 Write-offs -75 -70 -15 1 Other -12 -93 -103 -80 -550 Helix 3 Sinope -12 Sales of NPES -165 Other includes interest, cash collections and changes in balances -620 €32 mn organic NPE outflows in 1Q2023, leading to €22 mn net organic NPE reduction 58#59Gross loans and coverage by IFRS 9 staging Gross loans by IFRS 9 stage (€ mn) 10,856 10,913 10,217 10,278 Allowance for expected loan credit losses (€ mn) Coverage ratio 792 Stage 1 7,529 7,905 84 Dec 21 Sep 22 Dec 22 Mar 23 7,970 8,075 78% 54 610 89 48 Stage 1 1.1% 1.1% 1.1% 1.0% 282 282 Stage 2 1,984 654 1,990 473 85 80 Stage 2 2.7% 2.4% 2.8% 2.7% 1,836 18% 51 49 1,814 Stage 3 1,343 1,018 146 153 Stage 3 48.7% 46.5% 35.4% 39.5% 411 389 4% Dec 21 Sep 22 Dec 22 Mar 23 Dec 21 Sep 22 Dec 22 Mar 23 % of gross loans 59#60Stage 2 exposures well collateralised with low migration history Limited historic migration of Stage 2 to Stage 3 3.2% € mn Trade 1,814 153 Of which: 7.5% Real estate 162 €794 mn (43%) Performing Forborne 2.6% Other 196 • €550 mn (30%) Overlays • €309 mn (17%) SICR1 2.4% 1.2% Construction 319 • €109 mn (6%) POCI 2.0% 0.7% Hotel & catering 430 3.6% Private individuals 554 Provision coverage Mar 23 Days past due 0 dpd 1-30 dpd >30 dpd Private Individuals 97% 2% 1% Business 99% 1% 0% 1.8% 2.3% lili FY2020 FY2021 FY2022 1Q2023 • Migraton to Stage 3 as a % of Stage 2 loans Strong performance of Stage 2 exposures; 99% present no arrears Only c.2% p.a. of Stage 2 loans migrated to Stage 3 in the last three years 95% of Stage 2 loans are collateralised 18% of gross loans classified as Stage 2 of which: • • 43% were classified as Stage 2 mainly due to Covid-19 forbearances (of which 31% relate to hotel & catering exposures) 55% expected to be eligible for transfer to Stage 1 in 2023 30% were classified as Stage 2 due to overlays; reviewed on an on going basis and expected to be eligible for transfer to Stage 1 in 2023 LTV2 0-75% 75%-100% >100% Private Individuals 75% 9% 16% Business 79% 7% 14% Total 78% 7% 15% 1) Significant increase in credit risk 2) Loan to Value (LTV) is calculated as the Gross IFRS Balance to the indexed market value of the property. Under Pillar 3 disclosures LTV is calculated as the Gross IFRS Balance to the indexed market value of collateral. Collateral takes into consideration the mortgage amount registered in the land registry plus legal interest from registration date to the reference date 60#611) Asset quality - NPE analysis (€ mn) Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 Dec-21 Sep-21 Jun-21 Mar-21 Dec-20 A. Gross Loans after Residual Fair value adjustment on initial recognition 10,200 10,131 10,797 10,902 10,815 10,678 10,683 10,708 12,055 12,031 Residual Fair value adjustment on initial recognition 78 86 116 145 149 178 181 185 226 230 B. Gross Loans 10,278 10,217 10,913 11,047 10,964 10,856 10,864 10,893 12,281 12,261 B1. Loans with no arrears 9,860 9,788 9,874 9,840 9,681 9,492 9,385 9,268 9,230 9,149 B2. Loans with arrears but not NPES 29 18 21 39 36 21 31 36 39 26 1-30 DPD 17 12 13 25 31 16 23 29 27 21 31-90 DPD 12 6 8 14 5 5 8 7 12 5 B3. NPES With no arrears Up to 30 DPD 31-90 DPD 91-180 DPD 389 411 1,018 1,168 1,247 1,343 1,449 1,589 3,012 3,086 153 170 217 307 312 348 363 413 536 548 3 2 4 6 3 4 11 15 16 5 5 9 6 10 10 11 16 35 26 13 12 25 13 11 19 24 31 18 18 181-365 DPD 32 30 22 28 40 49 41 16 31 81 Over 1 year DPD 183 192 741 808 871 913 1,005 1,102 2,377 2,397 NPE ratio (NPES / Gross Loans) 3.8% 4.0% 9.3% 10.6% 11.4% 12.4% 13.3% 14.6% 24.5% 25,2% Allowance for expected loan credit losses (including residual fair value adjustment 282 282 610 677 734 792 849 947 1,869 1,902 on initial recognition¹) Gross loans coverage 3% 3% 6% 6% 7% 7% 8% 9% 15% 16% NPES coverage 73% 69% 60% 58% 59% 59% 59% 60% 62% 62% Comprise (i) loan credit losses for impairment of customer loans and advances, (ii) the residual fair value adjustment on initial recognition of loans acquired from Laiki Bank and on loans classified at FVPL, and (iii) loan credit losses on off-balance sheet exposures disclosed on the balance sheet within other liabilities. 61#62Trade 9.9% 9.6% 8.7% 8.0% 2.4% 2.4% % of total 9% 1.04 1.02 1.03 1.02 0.93 0.92 0.36 0.41 Trade Manufacturing NPE ratio by economic activity 11.3% 10.3% 8.6% 8.2% 2.5% 2.4% Manufacturing 1.9% 1.9% 2.8% 3.4% 2.1% 2.0% Gross loans by economic activity (€ bn) 0.44 0.44 0.40 0.39 4% Analysis of gross loans and NPE ratio by Economic activity 1.18 1.20 1.23 1.21 1.18 1.22 Hotels & Restaurant Construction 10.7% 9.6% 7.6% 6.8% Hotels & Restaurant Construction 2.0% 2.0% 12% 5% 11% 0.55 0.62 0.60 0.59 0.56 0.54 1.8% 4.7% 12.6% 11.4% 11.5% Real Estate Real Estate 1.30 1.18 1.19 1.12 1.14 1.13 5.06 46% 5.06 5.10 5.08 4.70 4.71 Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 Mar 23 0.71 0.80 0.79 0.67 0.62 0.68 Private Individuals Professional and Other sectors other services Private Individuals other services Professional and Other sectors 62 1.0% 0.9% 6% 7% 0.66 0.67 0.67 0.78 0.69 0.69#63Rescheduled Loans¹ Rescheduled loans¹ - Asset Quality Rescheduled loans¹ by customer type (€ bn) 31 March 2023 1.68 € mn 1.58 1.51 Stage 1 0.43 0.37 0.34 1.25 Stage 2 0.17 0.15 0.14 0.18 0.17 1.01 0.14 0.01 0.01 0.01 0.13 0.06 Stage 3 0.11 0.17 0.08 0.05 POCI 777 201 31 0.90 0.91 0.89 0.90 FVPL 0.71 Dec 21 Jun 22 Retail housing SMEs Retail other International corporate Sep 22 Rescheduled loans¹ % gross loans by customer type 20% 15% 1% Corporate & Large corporate 14% 12% 12% 10% 7% 12% 10% 9% 5% 5% Dec 22 Mar 23 14% 12% 11% Corporate & International corporate SMEs Large corporate Retail Housing Retail Consumer Dec 21 Jun 22 Sep 22 Dec 22 Mar 23 1) Rescheduled loans are presented net of fair value %9 5% Total Fair value of collateral and credit enhancements Loans and advances to customers Cash Securities Letters of credit / guarantee Property Other Surplus collateral Net collateral 1,009 31 March 2023 (€ mn) 477 569 133 16,229 270 (8,692) 8,986 63#64REMU - decline of foreclosed assets inflows and sales record positive results €1.82 bn sales of 4,018 properties across all property classes since set-up Sales € mn (contract prices¹) Evolution of properties managed by REMU # 99 # 331 Group BV (€ mn) # 575 # 579 # 492 #1,130² # 674 # 138 1,116 Sales €1.82 bn 505 160 (41) (19) 1,050 1,050 (8) 56 64 202 22 235 330 238 179 345 249 1003 184 471 91 43 149 2016 2017 2018 2019 2020 2021 2022 1Q2023 01 Jan 2023 Additions Sales Helix 3 and Sinope Organic sales Transfer Impairment 31 Mar 2023 to/from own loss & fair properties value losses BV by property type # properties Cyreit Overseas Residential Commercial & Manufacturing Hotels Golf Land Breakdown of cumulative sales1 by on-boarding year (€ mn) Cumulative sales by property type; 39% of sales relate to land Sales contract price 374 % Sales 74% of vintage stock (BV)5 19 677 431 192 99 €1.82 bn 27 60% 69% 57% 50% 5% 9% Legacy4 2016 2017 2019 2021-2023 2018 2020 1) Amounts as per Sales purchase Agreements (SPAs) 2) Number of properties include 421 properties from Project Helix 3 and 6 from Project Sinope 4) 3) Classified as non-current assets and disposal groups held for sale" since 2021 and were derecognised with the completion of Project Helix 3 in November 2022 5) Land 39% 16% €1.82 bn Commercial Hotels Residential 8% Cyreit Overseas 23% Legacy properties relate to properties that were on-boarded before REMU set-up in January 2016 The BV of the properties disposed at the date of disposal as a proportion of the: BV of the properties disposed at the time of the disposal plus the BV of the residual properties managed by REMU as at 31 Mar 2023 64#652) F234 1) 3) 4) REMU - the engine for dealing with foreclosed assets On-board assets in REMU at conservative c.25%-30% discount to OMV €43 mn organic sales³ in 1Q2023; comfortably above Book Value BV € mn Legacy 2016 2017 2018 2019 2020 2021-23 113 401 161 127 87 70 91 1,050 100% 68% avg on-boarded value as a % of OMV1 71% 72% 72% 73% 71% Sales contracts (excl. DFAs)2 for 1Q2023 up 19% yoy 13,409 10,366 10,347 9,242 7,481 7,968 +19% 5,885 4,875 6,656 yoy 4,983 3,574 3,009 5,928 4,367 4,481 2,985 3,691 1,583 1,592 1,426 1,982 2018 2019 2020 2021 2022 1Q2022 1Q2023 Sales to Cypriots Sales to non-Cypriots Open market value at on-boarding date Based on data from Land of Registry- Sales contracts Amounts as per Sales purchase Agreements (SPAs) Based on Residential price index published by Central Bank dated on 3 February 2023 107% 91% 106% 96% 11 43 125% 93% 102% 88% 25 Residential Land Total Organic Commercial Sales 1Q2023 Net Proceeds / BV Gross Proceeds / OMV Relatively strong pipeline of €58 mn by contract value as at 31 March 2023, of which €38 mn related to SPAs signed Real estate property prices up 6.3% yoy in 3Q20224 100.0 99.1 6.3 4.7 3.2 81.9 83.2 85.0 1Q2010 4Q2010 4Q2012 4Q2013 4Q2014 4Q2015 4Q2016 4Q2017 4Q2018 4Q2019 4Q2020 4Q2021 1Q2022 2Q2022 3Q2022 Residential Propert Price index (2010Q1=100) % change y-o-y (RHS) 65#66Appendix Glossary & Definitions 99 66#67Glossary & Definitions AC Amortised cost bonds. Adjusted recurring profitability Advisory and other restructuring costs Allowance for expected loan credit losses (previously 'Accumulated provisions') AIEA AT1 Average contractual interest rates Book Value Basic earnings/(losses) after tax per share (attributable to the owners of the Company) Carbon neutral CET1 capital ratio (transitional basis) CET1 Fully loaded (FL) Cost of Funding Cost to Income ratio Cost of Risk CRR DD DFAs The Group's profit after tax before non-recurring items (attributable to the owners of the Company) taking into account distributions under other equity instruments such as the annual AT1 coupon. Comprise mainly (a) fees of external advisors in relation to: (i) disposal of operations and non-core assets, and (ii) customer loan restructuring activities, and (b) the cost of the tender offer for the Old T2 Capital Notes, where applicable. Allowance for expected loan credit losses (previously 'Accumulated provisions') Comprises (i) allowance for expected credit losses (ECL) on loans and advances to customers (including allowance for expected credit losses on loans and advances to customers held for sale where applicable), (ii) the residual fair value adjustment on initial recognition of loans and advances to customers (including residual fair value adjustment on initial recognition on loans and advances to customers classified as held for sale where applicable), (iii) allowance for expected credit losses for off-balance sheet exposures (financial guarantees and commitments) disclosed on the balance sheet within other liabilities, and (iv) the aggregate fair value adjustment on loans and advances to customers classified and measured at FVPL. This relates to the average of 'interest earning assets' as at the beginning and end of the relevant quarter. Average interest earning assets exclude interest earning assets of any discontinued operations at each quarter end, if applicable. Interest earning assets include: cash and balances with central banks (including cash and balances with central banks classified as non-current assets held for sale), plus loans and advances to banks, plus net loans and advances to customers (including loans and advances to customers classified as non-current assets held for sale), plus 'deferred consideration receivable' included within 'other assets', plus investments (excluding equities and mutual funds). AT1 (Additional Tier 1) is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013, as amended by CRR II applicable as at the reporting date. Interest rates on cost of deposits were previously calculated as the Interest Expense over Average Balance. The current calculation which the Bank considers more appropriate is based on the weighted average of the contractual rate times the balance at the end of the month. The rates are calculated based on the month end contractual interest rates. The quarterly rates are the average of the three quarter month end contractual rates. BV= book value = Carrying value prior to the sale of property. Basic earnings/(losses) after tax per share (attributable to the owners of the Company) is the Profit/(loss) after tax (attributable to the owners of the Company) divided by the weighted average number of shares in issue during the period, excluding treasury shares. The reduction and balancing (through a combination of offsetting investments or emission credits) of greenhouse gas emissions from own operations. CET1 capital ratio (transitional basis) is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013, as amended by CRR II applicable as at the reporting date. The CET1 fully loaded (FL) ratio is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013, as amended by CRR II applicable as at the reporting date. 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). Historical information has been adjusted to take into account hedging. Cost-to-income ratio comprises total expenses (as defined) divided by total income (as defined). Loan credit losses charge (cost of risk) (year-to-date) is calculated as the annualised 'loan credit losses' (as defined) divided by average gross loans. The average gross loans are calculated as the average of the opening balance and the closing balance, for the reporting period/year. Default Definition. Debt for Asset Swaps. 67#68Glossary & Definitions DFEs Debt for Equity Swaps. Digitally engaged customers ratio Digital transactions ratio DTA DTC EBA ECB Effective yield Effective yield of liquid assets FTP FVOCI GBV Gross Loans Gross Sales Proceeds Group This is the ratio of digitally engaged individual customers to the total number of individual customers. Digitally engaged customers are the individuals who use the digital channels of the Bank (mobile banking app, browser and ATMs) to perform banking transactions, as well as digital enablers such as a bank-issued card to perform online card purchases, based on an internally developed scorecard. This is the ratio of the number of digital transactions performed by individuals and legal entity customers to the total number of transactions. Transactions include deposits, withdrawals, internal and external transfers. Digital channels include mobile, browser and ATMs. Deferred tax asset. Deferred Tax Credit. European Banking Authority. European Central Bank. Interest Income on Loans/Average Net Loans. Interest income on liquids after hedging, over average liquids (Cash and balances with central banks, placements with banks and bonds). Fund transfer pricing methodologies applied between the business lines to present their results on an arm's length basis. Fair value through other comprehensive income bonds. Gross Book Value. Gross loans comprise: (i) gross loans and advances to customers measured at amortised cost before the residual fair value adjustment on initial recognition (including loans and advances to customers classified as non-current assets held for sale where applicable) and (ii) loans and advances to customers classified and measured at FVPL adjusted for the aggregate fair value adjustment. Gross loans are reported before the residual fair value adjustment on initial recognition relating mainly to loans acquired from Laiki Bank (calculated as the difference between the outstanding contractual amount and the fair value of loans acquired) amounting to €78 mn as at 31 March 2023 (compared to €86 mn as at 31 December 2022 and €149 mn as at 31 March 2022). Additionally, gross loans include loans and advances to customers classified and measured at fair value through profit or loss adjusted for the aggregate fair value adjustment of €208 mn as at 31 March 2023 (compared to €211 mn as at 31 December 2022 and €312 mn at 31 March 2022). Proceeds before selling charge and other leakages. The Group consists of Bank of Cyprus Holdings Public Limited Company, "BOC Holdings" or the "Company", its subsidiary Bank of Cyprus Public Company Limited, the "Bank" and the Bank's subsidiaries. 68#69Glossary & Definitions IB, W&M International Banking, Wealth and Markets. IBU Impact of parallel shifts in interest curves Legacy exposures Leverage Ratio Exposure (LRE) Liquid assets Loan credit losses (PL) (previously 'Provision charge') Loan to Value ratio (LTV) Market shares MSCI ESG Rating Net Proceeds Net interest margin (NIM) Net loans and advances to customers Net performing loan book Net zero emissions Servicing exclusively international activity companies registered in Cyprus and abroad and not residents. The sensitivity is calculated assuming a constant balance sheet. This sensitivity is not a forecast of interest rate expectations, and the Bank's pricing decisions in the event of an interest rate change may differ from the assumptions underlying this sensitivity. Accordingly, in the event of an interest rate change the actual impact on Group NII may differ from that presented in this analysis. Legacy exposures are exposures relating to (i) Restructuring and Recoveries Division (RRD), (ii) Real Estate Management Unit (REMU), and (iii) non-core overseas exposures. Leverage Ratio Exposure (LRE) is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013, as amended. Cash, placements with banks, balances with central banks and bonds. Loan credit losses comprise: (i) credit losses to cover credit risk on loans and advances to customers, (ii) net gains on derecognition of financial assets measured at amortised cost and (iii) net gains on loans and advances to customers at FVPL, for the reporting period/year. Loan to Value (LTV) is calculated as the Gross IFRS Balance to the indexed market value of the property. Under Pillar 3 disclosures LTV is calculated as the Gross IFRS Balance to the indexed market value of collateral. Collateral takes into consideration the mortgage amount registered in the land registry plus legal interest from registration date to the reference date. Both deposit and loan market shares are based on data from the CBC. The Bank is the single largest credit provider in Cyprus with a market share of 42.4% as at 31 March 2023 compared to 40.9% as at 31 December 2022, and 41.9% as at 31 March 2022. The use by the Company and the Bank of any MSCI ESG Research LLC or its affiliates ('MSCI') data, and the use of MSCI Logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation or promotion of the Company or the Bank by MSCI. MSCI Services and data are the property of MSCI or its information providers and are provided "as-is" and without warranty. MSCI Names and logos are trademarks or service marks of MSCI. Proceeds after selling charges and other leakages. Net interest margin is calculated as the net interest income (annualised) divided by the 'quarterly average interest earning assets' (as defined). Net loans and advances to customers comprise gross loans (as defined) net of allowance for expected loan credit losses (as defined, but excluding allowance for expected credit losses on off- balance sheet exposures disclosed on the balance sheet within other liabilities). Net performing loan book is the total net loans and advances to customers (as defined) excluding the legacy exposures (as defined). The reduction of greenhouse gas emissions to net zero through a combination of reduction activities and offsetting investments. 69#70Glossary & Definitions New lending Non-interest income Non-recurring items New lending includes the disbursed amounts of the new and existing non-revolving facilities (excluding forborne or re-negotiated accounts) as well as the average year-to-date change (if positive) of the current accounts and overdraft facilities between the balance at the beginning of the period and the end of the period. Recoveries are excluded from this calculation since their overdraft movement relates mostly to accrued interest and not to new lending. Non-interest income comprises Net fee and commission income, Net foreign exchange gains/(losses) and net gains/(losses) on financial instruments and (excluding net gains on loans and advances to customers at FVPL), Net insurance result, Net gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties, and Other income. Non-recurring items as presented in the 'Unaudited Condensed Consolidated Income Statement - Underlying basis' relate to the following items, as applicable: (i) Advisory and other restructuring costs organic, (ii) Provisions/net profit/(loss) relating to NPE sales, (iii) Restructuring and other costs relating to NPE sales, and (iv) Restructuring costs relating to the Voluntary Staff Exit Plan. NPE coverage ratio (previously 'NPE Provisioning coverage ratio') NPE ratio NPES The NPE coverage ratio is calculated as the allowance for expected loan credit losses (as defined) over NPEs (as defined). NPEs ratio is calculated as the NPEs as per EBA (as defined) divided by gross loans (as defined). As per the European Banking Authorities (EBA) standards and European Central Bank's (ECB) Guidance to Banks on Non-Performing Loans (which was published in March 2017), non-performing exposures (NPEs) are defined as those exposures that satisfy one of the following conditions: (i) of days past due. (ii) The borrower is assessed as unlikely to pay its credit obligations in full without the realisation of the collateral, regardless of the existence of any past due amount or of the number Defaulted or impaired exposures as per the approach provided in the Capital Requirement Regulation (CRR), which would also trigger a default under specific credit adjustment, diminished financial obligation and obligor bankruptcy. ¢ རྩེ རྩེ བྷྲ རྩེ ཤྲཱ ° ¢ (iv) (V) Material exposures as set by the CBC, which are more than 90 days past due. Performing forborne exposures under probation for which additional forbearance measures are extended. Performing forborne exposures previously classified as NPEs that present more than 30 days past due within the probation period. From 1 January 2021 two regulatory guidelines came into force that affect NPE classification and Days-Past-Due calculation. More specifically, these are the RTS on the Materiality Threshold of Credit Obligations Past-Due (EBA/RTS/2016/06), and the Guideline on the Application of the Definition of Default under article 178 (EBA/RTS/2016/07). The Days-Past-Due (DPD) counter begins counting DPD as soon as the arrears or excesses of an exposure reach the materiality threshold (rather than as of the first day of presenting any amount of arrears or excesses). Similarly, the counter will be set to zero when the arrears or excesses drop below the materiality threshold. Payments towards the exposure that do not reduce the arrears/excesses below the materiality threshold, will not impact the counter. For retail debtors, when a specific part of the exposures of a customer that fulfils the NPE criteria set out above is greater than 20% of the gross carrying amount of all on balance sheet exposures of that customer, then the total customer exposure is classified as non performing; otherwise only the specific part of the exposure is classified as non performing. For non retail debtors, when an exposure fulfils the NPE criteria set out above, then the total customer exposure is classified as non performing. Material arrears/excesses are defined as follows: (a) Retail exposures: Total arrears/excess amount greater than €100, (b) Exposures other than retail: Total arrears/excess amount greater than €500 and the amount in arrears/excess in relation to the customer's total exposure is at least 1%. For further information please refer to the Annual Financial Report 2022. 70 0#71Glossary & Definitions Non-legacy (performing) Phased-in Capital Conservation Buffer (CCB) NSFR OMV Operating profit p.p. Profit/(loss) after tax and before non- recurring items (attributable to the owners of the Company) Profit/(loss) after tax - organic (attributable to the owners of the Company) Pro forma for HFS (held for sale) Project Helix 3 Project Sinope Qoq Restructured loans Return on Tangible equity (ROTE) after tax and before non-recurring items Relates to all business lines excluding Restructuring and Recoveries Division ("RRD"), REMU and non-core overseas exposures. In accordance with the legislation in Cyprus which has been set for all credit institutions, the applicable rate of the CCB is 1.25% for 2017, 1.875% for 2018 and 2.5% for 2019 (fully phased-in). The NSFR is calculated as the amount of "available stable funding" (ASF) relative to the amount of "required stable funding" (RSF). The regulatory limit, enforced in June 2021, has been set at 100% as per the CRR II. Open Market Value. The operating profit comprises profit before Total loan credit losses, impairments and provisions (as defined), tax, (profit)/loss attributable to non-controlling interests and non-recurring items (as defined). percentage points. This refers to the profit or loss after tax (attributable to the owners of the Company), excluding any 'non-recurring items' (as defined). This refers to the profit or loss after tax (attributable to the owners of the Company), excluding any 'non-recurring items' (as defined, except for the ‘advisory and other restructuring costs - organic'). References to pro forma figures and ratios as at 30 September 2022 refer to Project Helix 3. Numbers on a pro forma basis are based on 30 September 2022 underlying basis figures and are adjusted for Project Helix 3 and assume its completion, currently expected to occur by the end of November 2022, which remains subject to customary regulatory and other approvals. Project Helix 3 refers to the agreement the Group reached in November 2021 for the sale of a portfolio of NPEs with gross book value of €551 mn, as well as real estate properties with book value of c. €88 mn as at 30 September 2022. Project Helix 3 was completed in November 2022. For further information please refer to section A.1.5 Loan portfolio quality of the Press release. Project Sinope refers to the agreement the Group reached in December 2021 for the sale of a portfolio of NPEs with gross book value of €12 mn as at 31 December 2021, as well as properties in Romania with carrying value €0.6 mn as at 31 December 2021. Project Sinope was completed in August 2022. Quarter on quarter change. Restructuring activity within quarter as recorded at each quarter end and includes restructurings of NPES, performing loans and re-restructurings. Return on Tangible Equity (ROTE) after tax and before non-recurring items is calculated as Profit/(loss) after tax and before non-recurring items (attributable to the owners of the Company) (as defined) (annualised), - (based on year to date days)), divided by the quarterly average of Shareholders' equity minus intangible assets at each quarter end. 71#72Glossary & Definitions Return on Tangible equity (ROTE) Risk adjusted yield RRD Return on Tangible Equity (ROTE) is calculated as Profit/(loss) after tax (attributable to the owners of the Company) (as defined) (annualised - (based on year to date days)), divided by the quarterly average of Shareholders' equity minus intangible assets at each quarter end. Interest Income on Loans net of allowance for expected loan credit losses/Average Net Loans. Restructuring and Recoveries Division. RWAs Risk Weighted Assets. RWA Intensity Special levy on deposits and other levies/contributions Stage 2 & Stage 3 Loans Risk Weighted Assets over Total Assets. Relates to the special levy on deposits of credit institutions in Cyprus, contributions to the Single Resolution Fund (SRF), contributions to the Deposit Guarantee Fund (DGF), as well as the DTC levy, where applicable. Include purchased or originated credit-impaired. Tangible Collateral Restricted to Gross IFRS balance. Total Capital ratio Total expenses Total income Total loan credit losses, impairments and provisions Total capital ratio is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013, as amended by CRR II applicable as at the reporting date. Total expenses comprise staff costs, other operating expenses and the special levy on deposits and other levies/contributions. It does not include (i) 'advisory and other restructuring costs-organic', (ii) restructuring and other costs relating to NPE sales, or (iii) restructuring costs relating to the Voluntary Staff Exit Plan. (i) 'Advisory and other restructuring costs-organic' amounted to €1 mn for 1Q2023 (compared to €1 mn for 4Q2022, and €1 mn for 1Q2022) (ii) Restructuring costs relating to NPE sales for 1Q2023 amounted to €0.2 mn (compared to €0.3 mn for 4Q2022, and €1 mn for 1Q2022), and (iii) Restructuring costs relating to the Voluntary Staff Exit Plan (VEP) for 1Q2023 was nil (compared to nil for 4Q2022 and €3 mn for 1Q2022). Total income comprises net interest income and non-interest income (as defined). Total loan credit losses, impairments and provisions comprises loan credit losses (as defined), plus impairments of other financial and non-financial assets, plus (provisions)/net reversals for litigation, claims, regulatory and other matters. T2 Underlying basis Write offs Yoy Tier 2 Capital. This refers to the statutory basis after being adjusted for certain items as explained in the Basis of Presentation. Loans together with the associated loan credit losses are written off when there is no realistic prospect of future recovery. Partial write-offs, including non-contractual write-offs, may occur when it is considered that there is no realistic prospect for the recovery of the contractual cash flows. In addition, write-offs may reflect restructuring activity with customers and are part of the terms of the agreement and subject to satisfactory performance. Year on year change. 72