#1Bank of Cyprus Group Preliminary Group Financial Results For the year ended 31 December 2021 Bank of Cyprus Holdings KOINO WKYMPI WN اد#2DISCLAIMER The financial information included in this presentation is neither reviewed nor 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. The presentation for the Group Financial Results for the year ended 31 December 2021 contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014. Pro forma for held for sale (HFS) comprise Project Helix 3 and Project Sinope; which refer to the agreements the Group reached for the sale of portfolios of NPEs with gross book value of c.€0.6 bn and €12 mn as at 31 December 2021 respectively, as well as properties with carrying value of c.€120 mn and €0.6 mn as at 31 December 2021 respectively. Numbers on a pro forma basis are based on 31 December 2021 underlying basis figures, and are adjusted for Project Helix 3 and Project Sinope and assume their completion, currently expected to occur in 1H2022, which remain subject to customary regulatory and other approvals. Important Notice Regarding Additional Information Contained in the Investor Presentation The presentation for the Group Financial Results for the year ended 31 December 2021 (the "Presentation"), available on https://www.bankofcyprus.com/en-GB/investor-relations-new/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) analysis of new lending, (v) Income statement by business line, (vi) NIM and interest income analysis and (vii) Loan portfolio analysis in accordance with the three-stages model for impairment of IFRS 9. Moreover, the Investor Presentation includes additional financial information not presented in the Results Announcement of current and expected medium term levels for (i) NPE coverage and (ii) ESG performance metrics. 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 2020 and updated in the Interim Financial Report 2021. 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. 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. 2#3Table of Contents Preliminary FY2021 Financial Results Updated Medium-term Strategic Targets Appendix 3#4Preliminary FY2021 Financial Results 4#52021 Achievements and Medium Term Strategy Positive Net Result • Profit after tax and before non-recurring items of €91 mn Profit after tax of €30 mn Careful Cost Management . Total operating expenses¹ of €347 mn broadly flat yoy • C/I ratio at 60%¹ flat yoy Strong Capital and Initiation of MREL issuance • CET1 ratio of 15.8% 2,3 and Total Capital ratio of 20.8% 2,3 • • Successful refinancing of Tier 2 at a significantly lower coupon rate Inaugural issuance of €300 mn Senior Preferred notes; Interim MREL requirement as at 1 January 2022 achieved Single Digit NPE ratio achieved a year earlier than anticipated • NPE ratio reduced to 7.5%² (3.1%² net), following NPE sale (Helix 3) signed in November 2021 Updated Medium Term Strategic Targets • ROTE >10% by 2025 NPE ratio c.5% by end-2022 and <3% by end-2025 • Paving the way for dividend distribution4 from 2023 onwards Announcement of ESG targets; Carbon Neutral by 2030 and Net Zero by 2050 7237 2) 3) Excluding special levy on deposits and other levies/contributions Pro forma for HFS Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements 4) Subject to performance and relevant approvals 5#64Q2021 - Highlights Strong Recovery Continues • 6.0%¹ GDP in 4Q2021 well above the eurozone average of 4.6% €1.8 bn • New Lending New lending of €471 mn in 4Q2021 totalling €1.8 bn for FY2021, up 33% yoy, recovering towards pre-pandemic levels Positive Operating Performance €55 mn Operating Profit Total income of €154 mn for 4Q2021, up 11% qoq driven mainly by higher non-NII • Profit after tax and before non-recurring items of €27 mn for 4Q2021 Small-scale targeted Voluntary Staff Exit Plan with one-off cost of €16 mn; gross annual savings of c.3% Operating Efficiency Strong Capital and Liquidity 57% Cost/Income² • . Profit after tax of €10 mn for 4Q2021 Total operating expenses² of €87 mn for 4Q2021, broadly flat qoq Cost to income ratio² at 57% for 4Q2021, down 7 p.p. qoq supported by higher non-NII 15.8% • CET1 ratio of 15.8% 3,4 and Total Capital ratio of 20.8% 3,4 CET1 ratio 3,4 . Deposits at €17.5 bn up 2% qoq; significant surplus liquidity of €6.4 bn NPE ratio reduced to 7.5%4 (3.1%4 net) • Single Digit NPE ratio4 3.1%4 Net NPE ratio €0.6 bn NPE sale (Helix 3) signed in November 2021 • . Organic NPE reduction of c.€400 mn in FY2021 96% of performing loans 5 under expired payment deferrals with an instalment due by 8 February 2022, presented no arrears 723 2) Source: Cyprus Statistical service & Ministry of Finance announcement dated 15 February 2022 Excluding special levy on deposits and other levies/contributions 4) Pro forma for HFS 3) Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements 5) As at 31 December 2021 6#7Significant recovery of Cyprus economy in 2021 with solid growth outlook A diversifying services-based economy Structure of economy 2020 (current prices % of GVA • • • • • Open, small and dynamic economy which has demonstrated historically that it can quickly recover from economic crises Economy recovered to pre-pandemic levels; GDP grew 6.0%¹ in 4Q2021 and expected to grow by c.4%¹ in 2022 Largest drivers to growth are expected to remain the Trade, Tourism, Professional Services, Shipping & IT services and the Construction sector Tourism performance in 2021 better than initially anticipated; Tourism season extended until October 2021; Oct tourist arrivals at 90% of 2019 levels; Overall arrivals in 2H2021 at c.70% of 2019 levels; Tourism expected to fully recover by 2023-2024 The implementation of Cyprus' Recovery and Resilience Plan (€1.2 bn) is expected to support domestic activity and employment through higher investment and to enhance growth potential via reforms (see slides 53- 54) Tertiary sector 83% 15% 12% 5% 2% 5% Primary sector Secondary sector Information Finance & Insurance 10% Wholesale & Retail trade Real Estate Health & social work 6% Public 9% 4% 10% 8% 7% Transport Accommodation Professional Education Other 7% Strong economic recovery expected to continue in 2022 Annual Real GDP yoy % change 13.4% 14.4% 5.6% 6.0% 3.9% 4.6% GDP expected to grow by c.4% in 2022, above EU Area projections 1) According to Ministry of Finance -210 -4.3% -4.4% 4Q2020 -1.1% 1Q2021 2Q2021 3Q2021 4Q2021 Cyprus Euro Area 7#8New lending of €1.8 bn in FY2021, approaching 2019 levels New lending up 33% yoy € mn New lending remained strong in 4Q2021 +33% 2,045 356 1,792 150 1,351 71 912 798 596 189 211 144 366 363 475 200 177 180 FY2019 FY2020 FY2021 1 Shipping & International loans Corporate SME Retail Housing Retail other 39% Leading Market share in loans 1) Includes syndicated loans 487 471 451 37 32 427 38 407 374 31 49 7 288 206 238 88 233 215 9 162 174 188 18 117 63 42 45 62 99 33 39 24 79 25 117 102 124 98 109 140 69 67 27 40 43 57 48 42 33 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 2Q2021 3Q2021 4Q2021 • New lending for FY2021 reached c.90% of FY2019 levels • • Demand for housing loans supported by government interest rate subsidy scheme (expired on 31 Dec 2021); c.€355 mn new housing loans approved under the scheme Corporate new lending at €798 mn for FY2021, up 34% yoy as economic activity continues to improve Meticulous assessment of repayment capability and strict origination standards 8#912 1) 2) Strong performance of moratorium portfolio continues > 12 months after deferral expiry 4% 13% Resumed payments as per original schedule Restructured In arrears €4.60 bn 83% 96% no arrears Private Individuals 2% 8% €1.71 bn 90% 92% no arrears Businesses 2% 19% €2.89 bn 79% 98% no arrears 96% of performing loans¹ under expired payment deferrals² present no arrears, of which c.€0.60 bn have been restructured; >75% of restructurings took place in 1H2021 • Just 4% (€196 mn) in arrears of which €166 mn in early arrears (<30 dpd) • Strong track record in dealing with restructurings • Targeted restructuring solutions to alleviate pandemic-related short-term cash flow burden, following rigorous assessment of repayment ability Private Individuals: • 92% of performing loans¹ under expired payment deferrals² present no arrears of which c.€35 mn have been restructured • €142 mn (8%) in arrears of which €138 mn in early arrears (<30 dpd) Businesses: • 98% of performing loans¹ under expired payment deferrals² present no arrears of which c.€564 mn have been restructured; mostly in the tourism sector Just 2% (c.€54 mn) in arrears As at 31 December 2021 With instalment due by 8 February 2022 9#1030 Sep 2021 31 Dec 2021 € bn € bn 0.06 0.06 Portfolio exposure to businesses most impacted by COVID-19 Tourism: €1.15 bn Hotels & Catering Food services Trade: €0.94 bn % of portfolio 30 Sep 2021 31 Dec 2021 Trade € bn € bn % of portfolio 5% Supermarkets, pharmacies and 0.26 0.27 29% other essential retail businesses Accommodation 1.09 1.09 95% All other 0.67 0.67 71% Total 1.15 1.15 Total 0.93 0.94 Unutilised Liquidity¹ 0.40 0.39 Unutilised Liquidity1 0.89 0.97 - of which deposits 0.32 0.31 27% - of which deposits 0.56 0.63 67% Tourism season extended until October 2021; Overall arrivals in 2H2021 at c.70% of 2019 levels; Tourism expected to fully recover by 2023-2024 • 98% of tourism portfolio secured by property • 94% of tourism portfolio with LTV <80% • c. €0.88 bn performing loans² under expired payment deferrals; nearly all with zero arrears³ (of which c. €300 mn have been restructured; >90% of restructurings took place in 1H2021) 723 1) 2) 3) Unutilised overdraft amounts and deposits As at 31 December 2021 With an instalment due by 8 February 2022 • c. €0.30 bn performing loans² under expired payment deferrals; 98% of performing loans² under expired payment deferrals³, presented no arrears (of which €18 mn have been restructured) 10#11Profitability 11#12Income Statement € mn Net Interest Income FY2021 FY2020 4Q2021 3Q2021 qoq% yoy% 296 330 73 71 2% -10% Non interest income 285 237 81 68 20% 20% Total income 581 567 154 139 11% 2% Total operating expenses¹ (347) (340) (87) (89) -1% 2% Operating profit 198 194 59 55 41 33% 2% Total loan credit losses, impairments and (100) (198) (24) (26) -7% provisions Profit/(loss) after tax and before non- 91 (9) recurring items² 27 27 13 101% Advisory and other restructuring costs -organic (22) (10) (3) (1) Profit/(loss) after tax-organic² 69 (19) 24 12 96% Provisions/ net (loss)/profit on NPE sales³ (7) (120) (1) 10 Restructuring and other costs³ (32) (32) (13) (3) -93% 1% Profit/(loss) after tax² 30 (171) 10 19 -46% Key Ratios Net Interest margin (annualised) 1.45% 1.84% 1.34% 1.34% -39 bps Cost to income ratio 66% 66% 65% 71% -6 p.p. Cost to income ratio excluding special levy on deposits and other 60% 60% 57% 64% -7 p.p. levies/contributions¹ Cost of Risk (annualised) 0.57% 1.18% 0.35% 0.78% -43 bps -61 bps EPS4 before non-recurring items 20.50 -2.12 6.19 3.08 3.11 22.62 (€ cent) ROTE4 before non-recurring items 5.5% -0.5% 6.6% 3.3% 3.3 p.p. 6.0 p.p. -50% • • • • • NII for 4Q2021 increased to €73 mn mainly due to higher volume of loans and interest collections; NII for FY2021 reduced to €296 mn impacted mainly by the low interest rate environment and the completion of Helix 2 Non interest income for 4Q2021 amounted to €81 mn, driven mainly by higher net insurance income and revaluation gains in financial instruments; Non interest income for FY2021 increased to €285 mn supported mainly by higher fees and commissions Total operating expenses¹ at €87 mn for 4Q2021 and €347 mn for FY2021, broadly flat qoq and yoy Provisions and impairments for 4Q2021 of €24 mn include loan credit losses of €9 mn, impairments of €23 mn mainly relating to specific, large illiquid REMU assets, and net reversal in litigations of €8 mn due to revised estimates for cases provided for Profit after tax and before non-recurring items² of €27 mn for 4Q2021 and €91 mn for FY2021 Restructuring and other costs of €13 mn for 4Q2021, relate mainly to small-scale targeted Voluntary Staff Exit Plan cost of €16 mn; restructuring and other costs of €32 mn for FY2021, broadly flat yoy Profit after tax² of €10 mn for 4Q2021 and €30 mn for FY2021 ROTE 4 before non-recurring items of 6.6% for 4Q2021 and 5.5% for FY2021 3) 2) 1) Excluding special levy on deposits and other levies/contributions (including DTC levy) Attributable to the owners of the Company 4) Please refer to section B.3.4 "Profit/(loss) after tax (attributable to the owners of the Company)" of the Preliminary FY2021 FR Press Release and Updated Medium Term Strategic Targets Calculated using Profit/(loss) after tax and before non-recurring items 12#13Drivers of NIM NII of €296 mn for FY2021 Effective yield on assets & cost of funding NII (€ mn) 344 330 296 76 76 71 73 NIM (bps) 163 149 134 134 429 Liquids 21 381 57 -12 4 5 NPE trades 340 34 - Non-Legacy -Legacy Legacy 49 19 43 86 86 25 83 85 -Liquids 563 Cost of funding 497 28 4632 532 10 10 [7 8 301 287 287 295 Non-Legacy 302 292 268 1 5 13 12 67 65 67 69 -17 -16 -19 -18 1Q2021 2Q2021 3Q2021 4Q2021 Interest expense FY2019 FY2020 FY2021 1Q2021 2Q2021 3Q2021 4Q2021 • Non-Legacy book yields increased to 295 bps, up 8 bps qoq Net derivatives -11 -10 -10 -2 -2 -3. -3 -3 Other 1 -11 • Effective yield of liquids at 12 bps broadly flat qoq -24 -28 -6 -6 Tier 2 & -24 -8 -8 Senior preferred -14 -6 -2 -2 -44 Customer -51 -10 -10 -1 -1 -39 deposits -12 -12 • -85 . Cost of funding at 18 bps, broadly flat qoq following issuance of senior preferred notes in June 2021 with coupon rate 2.5%; further MREL issuances are expected in the coming years TLTRO III borrowing at €3.0 bn; favourable terms not expected to be extended post June 2022 1) Other includes funding from central banks and deposits by banks and repurchase agreements. Adjusted for Helix 2 F23 2) 3) 4) 5) Based on current ECB rates and provided the Bank meets the lending thresholds; the Bank exceeded the benchmark net lending threshold in the period 1 Mar 2020-31 Mar 2021 Effective yield of liquid assets: Interest income on liquids after hedging, over average liquids (Cash and balances with central banks, placements with banks and bonds) Effective yield of cost of funding: Interest expense of all interest bearing liabilities after hedging, over average interest bearing liabilities (customer deposits, funding from the central bank, interbank funding and wholesale funding) • c.€7 mn NII benefit for the period Jun 2020-Jun 2021 was recognised • c.€15 mn³ potential NII benefit for the period Jun 2021-Jun 2022 is recognised over the respective period in the income statement 13#14Balance sheet composition Total assets € bn 24.55 24.96 2.36 2.28 21.51 Other assets (including HFS) 1.21 1.26 2.21 0.48 0.44 REMU properties 1.46 0.88 Legacy net loans ހ 9.37 9.28 AIEA Mix 4Q2021 € bn Total equity & liabilities 24.55 24.96 1.30 1.28 Other 21.51 2.08 2.09 Equity 0.64 1.25 0.65 \Wholesale 2.07 2.98 2.97 Funding from 0.27 1.00 0.40 0.46 Central Bank 0.39 Due to banks 1 Non-legacy net loans 9.00 Non- legacy¹ 2.14 2.14 43% net loans 0.28 0.29 2 Securities 1.91 Liquids 54% AIEA: €21.6 bn 16.53 17.13 17.53 Customer deposits Due from banks 0.40 8.75 9.23 Cash and balances 5.65 with Central Banks 31 Dec 2020 30 Sep 2021 31 Dec 2021 3% Legacy net loans 31 Dec 2020 30 Sep 2021 31 Dec 2021 Balance sheet size increased by c.€0.4 bn qoq to €24.96 bn driven by 2% increase of customer deposits • 54% of AIEA held in liquids resulting in a dilutive impact on NIM • Non-legacy net loans¹ increased by 1% to €9.37 bn, driven mainly by increased demand for housing and corporate loans • Pro forma for HFS, legacy net loans and REMU properties reduced to €0.44 bn and €1.21 bn respectively 1) Net loans of Corporate (incl. IB and W&M and Global Corporate), SME, Retail, and H/O 2) Debt securities, treasury bills and equity investments 14#15Deposits at €17.5 bn up 2% qoq; significant liquidity surplus of €6.4 bn Cyprus deposits by passport origin² € bn 17.53 16.69 17.13 16.53 Deposits |||| 17.53 IBU¹ 3.50 Corporate 2.09 Retail 11.06 3% 4% 6% 19% 68% SME Dec 19 Dec 20 Sep 21 Dec 21 0.88 Dec 21 Cyprus Other countries Other EU Russia Other European countries, excl. Russia Significant surplus liquidity of €6.4 bn Minimum Liquidity ratio 31 Dec 2021 Surplus required LCR (Group) 100% 301% €6,356 mn NSFR 100% 147% €5,374 mn 1) 72 Servicing exclusively international activity companies registered in Cyprus and abroad and not residents 2) Origin is defined as the country of passport of the Ultimate Beneficial Owner Strong deposit market share of 35% as at 31 Dec 2021 • TLTRO III borrowing at €3.0 bn; favourable terms not expected to be extended post June 2022 15#16Non interest income at €81 mn in 4Q2021 Non-NII % of Total 47% 42% 49% 44% 50% 49% 53% Income F&C % of Total 23% 26% 30% 28% 30% 32% 28% Income 1) 2) 72 (€ mn) 307 285 67 39 237 13 32 30 58 56 49 61 60 13 မာ 81 76 9 68 4 10 18 12 822 14 5 18 172 150 144 208 200 233 52 45 56 44 62 44 39 FY2019 FY2020 FY2021 Net FX and other income 2 REMU ☐ Recurring income 1Q2021 2Q2021 3Q2021 4Q2021 Insurance income net of insurance claims Net fee & commission Net FX gains/(losses) & Net gains/(losses) on financial instruments, and other income Gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties • • • • Non interest income of €81 mn for 4Q2021, up 20% qoq, reflecting mainly higher net insurance income and increased revaluation gains from financial instruments Net fee and commission income at €44 mn flat qoq Net fee and commission income of €172 mn for FY2021, up 19% yoy, and above pre-COVID-19 levels reflecting higher volume of transactions, the extension of liquidity fees to a wider customer group and the introduction of a revised price list both in Feb 2021 Net insurance income of €18 mn for 4Q2021 mn, up 60% qoq mainly due to higher claims in the previous quarter, seasonality and valuation assumptions Net FX and other income increased to €14 mn, up 47% qoq, mainly due to the higher gains from financial instruments 16#17Profitable Insurance business- sustainable healthy profitability in FY2021 eurolife Genikes Insurance • € mn FY2021 FY2020 € mn FY2021 FY2020 yoy% yoy% GWP2 137.1 127.4 8% Insurance income 60.7 56.3 8% Net reinsurance cost (18.2) (18.8) -4% Net impact of interest rate (2.6) (2.1) 28% (of which GWP2) 53.3 49.3 8% movements Costs, claims and change in reserves (80.2) (73.2) 10% Costs and claims (35.8) (33.5) 7% Net insurance income 36.1 33.3 8% Net insurance income 24.9 22.7 9% Total Regular income1 138.2 128.6 8% GWP2 up 8% yoy Net insurance income up 8%, reflecting mainly increased GWP2 partially offset by increased costs and claims AUM increased to €558 mn, up 17% yoy • Total Regular income¹ up 8% yoy Market share of 25.0%³ 13% contribution to non interest income • GWP2 up 8% yoy . • Net insurance income up 9% yoy, driven mainly by higher GWP2 partially offset by increased costs and claims (FY2020 claims positively impacted by lockdowns) Market share of 13.1%³, key player in a concentrated market 9% contribution to non interest 1) income 2) 3) 23 Total regular income includes yearly renewable gross written premiums and occupational pension contributions Gross written premium As at 31 December 2021 based on draft preliminary market statistics 17#18Total Operating Expenses at €87 mn Total operating expenses¹ of €87 mn for 4Q2021 and €347 mn for FY2021 Cost to income ratio¹ at 60% for FY2021 • 64% 64% 64% 61% 60% (€ mn) 58% (€ mn) 385 340 347 57% 165 59% 60% 60% 145 145 91 89 89 87 82 41 38 38 32 34 50 50 51 51 50 37 220 195 202 50 4Q2020 1Q2021 2Q2021 3Q2021 4Q2021 FY2019 FY2020 FY2021 FY2019 FY2020 FY2021 1,2 C/I Ratio 1 C/I Ratio excluding Helix 2 Other operating expenses Staff costs Staff costs of €50 mn for 4Q2021, broadly flat qoq; €202 mn for FY2021, up 4% yoy driven mainly by the renewal of the collective agreement in 3Q2021 • Operating expenses of €37 mn for 4Q2021, down 3% qoq; €145 mn for FY2021 broadly flat yoy C/I ratio¹ at 57% for 4Q2021, down 7 p,p, qoq supported by higher non-NII; 60% for FY2021, flat yoy Successful completion of a small-scale targeted Voluntary Staff Exit Plan in 4Q2021 at one-off cost of €16 mn • Gross annual savings in staff costs of c.3% (c.€7 mn) • 100 full time employees left the Bank 1) Excluding special levy on deposits and other levies/contributions 2) Adjusted for the interest income of Helix 2 portfolios 18#19Leverage leading Digital Capabilities to serve customers and the economy Vision Digital Transactions ratio Leverage technology to sustain a competitive advantage through digital banking Serve customer needs anywhere and at any time, through an agile technology ecosystem Be the driver of digital economy, in support of national efforts for structural economic reform Creating shareholder value . Improving operational efficiency through: • • further automation further branch rationalisation Opportunities to cross-sell through: • . modelling customers' needs and behaviours ⚫ offering tailored products and services 1) Comparative figures have been revised in order to include data for the transactions of "Payroll & Group Transfers" through 1Bank. Jan 20191 Jan 20211 Jan 2022 70.7% 86.2% 89.4% Digitally Engaged Customers Jan 20191 Jan 20211 Jan 2022 64.2% 74.9% 78.8% Average mobile logins per month ☐ Jan 2019 Jan 2021 13.4x 15.3x Jan 2022 17.7x Active users of Internet and/or Mobile Banking Jan 2019 224K Jan 2021 Jan 2022 295k 336k 19#20Capital & Asset Quality 20 20#21• Pro forma for Held For Sale, CET1 at 15.8% ¹ and Total Capital ratio at 20.8%¹ min OCR (SREP) requirement for 2021³ 20.8% 2.9% 14.8% 15.8% 15.1% 2.1% 14.7% 0.5% (0.3%) -0.3%- (0.1%) 0.7% 9.7% 14.5% Capital position 1 January 2022 15.1% 10.1% CET1 31 Dec 2020 CET1 30 Sep Operating Provisions and profit impairments RWAs Other 2 2021 1 CET1 31 Dec 2021 1 Held for Sale CET1 31 Dec 2021 AT1 T2 Total Capital ratio CET1 ratio pro forma 31 Dec 2021 for HFS 1,4 pro forma for HFS 1,4 pro forma for HFS 1,4 CET1 ratio¹ positively impacted by: • c.50 bps organic capital generation from operating profitability c.30 bps from release of RWAS CET1 ratio¹ negatively impacted by: • c.30 bps from provisions and impairments² HFS expected to add c.65 bps by completion • CET1 ratio fully loaded at 13.7% and 14.3% pro forma for HFS • • CET1 and Total capital minimum capital requirements for 2022 at 10.1% and 15.0% respectively, following 26 bps increase in P2R mainly due to ECB's prudential provisioning (effective from Mar 2022) and 25 bps phasing in of O-SII buffer as of 1 Jan 2022 (refer to slide 73) P2R add-on is dynamic and can be reduced during 2022 on the basis of in- scope NPEs and level of provisioning • Decrease in P2G more than offsets P2R increase in CET1 ratio • The Group continues to monitor opportunities for the optimisation of its capital position including Additional Tier1 capital 1) Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements 2) Loan credit losses and other impairments (include the net change of the prudential charges relating to specific credits and other items) 4) 37 3) OCR (SREP) - Overall Capital Requirement (refer to slide 73) Includes unaudited/unreviewed profits for the year ended 31 December 2021 21#22Interim MREL requirement of 1 January 2022 achieved MREL ratio as % of RWAs at 20.18%1 and 19.30% 1 as at 31 Dec 2021 and 1 Jan 2022 both pro forma for HFS MREL ratio as % of Leverage Ratio Exposure (LRE) of 9.87% as at 31 Dec 2021 and 9.56% as at 1 Jan 2022 Interim MREL requirement as a % of RWAs of 14.94% for 1 January 2022 achieved following inaugural issuance of €300 mn senior preferred notes in June 2021 The Bank will continue to evaluate opportunities to advance the build-up of its MREL liabilities MREL (% of RWAs) 20.18% 23.74% as at 31 Dec 2025 31 Dec 2021 pro forma for HFS1 (as % of RWAs) MREL requirement (as % of RWAs) Interim requirement 14.94% as at 1 Jan 2022 MREL ratio and requirement expressed as % of RWAs do not include capital used to meet the Combined Buffer Requirement (CBR), of 3.75% as at 1 Jan 2022 MREL requirements Based on BRRD II; The Bank (BOC) is the resolution entity Final Target of 23.74% of RWAs and 5.91% of Leverage Ratio Exposure (LRE) to be met by 31 Dec 2025; no subordination requirement The own funds used to meet the combined buffer requirement (CBR) are not eligible to meet MREL requirement as % of RWAs 1) Includes unaudited/unreviewed profits for the year ended 31 December 2021 22#231) 2) 75% NPE reduction in FY2021 reducing the NPE ratio to 7.5% €2.3 bn NPE reduction in 2021 Helix 3 (€0.6 bn) Helix 2 (€1.3 bn) Residual NPEs comprises mainly Retail (€ bn) 3.9 • Organic reduction (€0.4 bn) -75% 3.1 3.0 1.4 1.3 0.8 1.8 1.2 1.1 Dec 19 Dec 20 Mar 21 0.6 0.6 Sep 21 Dec 21 Dec 21 pro forma for HFS 0.3 Allowance for Expected Loan Credit Losses Net NPES NPE ratio reduced to 7.5%; 3.1% on a net basis 0.8 0.1 Re-performing NPEs Retail 0.4 0.1 SME Corporate 0.2 Dec 21 pro forma for HFS Pro forma for HFS, NPE coverage at 61% 25.2% 14.6% 13.3% 11.4% 12.4% 6.4% 7.5% 131% 127% 128% 129% 122% 69% 68% 69% 68% 61% 68% Re-performing NPES¹ 28% 54% 62% 59% 59% 61% Core NPES 68% 6.0% 5.5% -3.1% Dec 20 Jun 21 Sep 21 Dec 19 Dec 20 Dec 21 Dec 21 Sep 21 Dec 21 pro forma for HFS Gross NPE ratio Net NPE ratio Dec 21 pro forma for HFS Dec 21 pro forma for HFS In pipeline to exit NPEs subject to meet all exit criteria; the analysis is performed on a customer basis Restricted to Gross IFRS balance Tangible collateral² Allowance for expected loan credit losses 23#24€400 mn net organic NPE reduction in FY2021 Net organic outflows (€ mn) -59 -112 -131 -98 Inflows (€ mn) 17 16 14 New inflows 11 8 13 6 Redefaults 7 4 Unlikely to pay 4 1Q2021 2Q2021 3Q2021 4Q2021 Outflows (mn) Curing of restructuring -11 -21 -34 -36 -17 -2 DFAS & DFES Write-offs -62 -71 Othen- -75 -80 -90 -22 -112 -10 -13 Helix 3 -568 Sales of NPES Helix 2 -1,305 -710 1) Other includes interest, cash collections and changes in balances -1,434 • €112 mn organic NPE outflows in 4Q2021, leading to €98 mn net organic NPE reduction 24 24#25Gross loans and coverage by IFRS 9 staging Gross loans by IFRS 9 stage (€ mn) Allowance for expected loan credit losses (€ mn) Coverage ratio 12,261 10,864 10,856 10,282 Stage 1 6,870 Dec 21 Dec 20 Sep 21 Dec 21 Pro forma 1,902 7,362 7,529 73% 7,529 95 for HFS 76 849 792 Stage 1 1.4% 1.2% 1.1% 1.1% Stage 2 2,305 90 60 84 54 1,731 467 2,053 1,984 19% Stage 2 3.3% 2.9% 2.7% 2.7% 84 Stage 3 3,086 1,982 699 654 52 1,449 1,343 8% 331 Stage 3 56.1% 48.3% 48.7% 42.9% 771 Dec 20 Sep 21 Dec 21 Dec 21 Dec 20 Sep 21 Dec 21 % of gross loans pro forma for HFS Dec 21 pro forma for HFS Coverage for stage 3 loans at 43% pro forma for HFS • The decrease in coverage in all stages is attributed to the good performance of the portfolio and the lower provision needs • Net transfer of c.€74 mn of loans from Stage 2 to Stage 1 in 4Q2021 driven mainly by updated financial information 25#26Cost of risk of 57 bps for FY2021; 35 bps for 4Q2021 1.18% 1.12% 1.00% 0.43% 0.57% 0.75% 0.61% (0.04%) FY2018 FY2019 FY2020 FY2021 bps 66 52 78 35 140 92 Charge (bps) 22 77 75 81 29 12 -7- 22 17 12 71 56 32 36 1Q2021 2Q2021 3Q2021 4Q2021 Reversal (bps) -26 -25 -46 -62 COVID-19 Interest on net NPEs not received in cash New lending Stage 3 Stage 1 & 2 Bank's IFRS 9 Macroeconomic assumptions Base line GDP rate 2022 4.3% Unemployment rate 6.5% 2023 3.3% 6.4% Cost of risk of 35 bps for 4Q2021 (€9 mn), includes a reversal of 46 bps (€12 mn) from stage 1 and stage 2 mainly due to improved cash collections and updated financial information Close monitoring of sectors vulnerable to COVID-19 continues Additionally, impairments of €23 mn mainly relate to specific, large illiquid REMU assets 26#27REMU: Pro forma for Held For Sale, REMU stock reduced by 17% in FY2021 REMU stock reduced to €1.2 bn as at 31 Dec 2021 Group BV (€ mn) #1,951 #3,388 #2,860 Properties sold exceed properties acquired since 2017 Group BV (€ mn) -17% 1,653 1,473 Dec 17 Dec 20 1,215 Dec 21 1,324 (1,374) 1,438 (173) 1,215 1 Jan 2017 Additions Sales 3 Impairment & FV loss 31 Dec 2021 Pro forma for HFS, €249 mn sales in FY2021, +174% yoy Sales € mn (contract prices¹) €149 mn organic sales in FY2021; comfortably above Book Value # 579 505 Cyreit 160 # 492 # 1,130² +174% 249 Organic 100 HFS 345 sales 91 149 FY2019 FY2020 FY2021 # properties 723 2) Amounts as per Sales Purchase Agreements (SPAs) Includes 421 properties of Project Helix 3 and 6 properties of Project Sinope 3) Include €102 mn REMU assets classified as held for sale 111% 87% 107% 115% 110% 89% 92% 84% 33 40 149 76 Total Organic Sales FY2021 Commercial Residential Land Net Proceeds / BV Gross Proceeds / OMV 27#28Organisational resilience & ESG agenda: ESG Performance Environmental 昌 2.0 mn kWh of energy savings in FY2021 €273k investment in energy-saving in FY2021 305k kg paper recycled in FY2021 Introduction of environmentally friendly loan products People >3,400 employees * >50 ths hours of training conducted in FY2021 Certificate by the Ministry of Labour, Welfare and Social Insurance for applying good practices for gender equality in the working environment Social >16.5 ths cancer patients received treatment and other services at the Bank of Cyprus Oncology Centre for FY2021 c. €70 m n cumulative investment for the Bank of Cyprus Oncology Centre >30 entrepreneurs educated in FY2021 via IDEA innovation centre, a non-profit organization, established in 2015, acting as incubator accelerator for start-ups (>6,000 entrepreneurs since establishment) Responsible services €1.8 bn new lending for FY2021;up 33% yoy 89% of total transactions in FY2021 are through digital channels; up 3p.p. yoy 79% of customers are digitally engaged as at 31 Dec 2021; up 4 p.p. yoy Governance 33% of the board of directors are female as at 31 Dec 2021 38% of the key positions³ below extended EXCO are female 68 internal audits finalised in FY2021 3,620 customer relationships terminated/suspended for compliance reasons in FY2021 SupportCy Network >€780k total contribution to the Society by all members (monetary, products and services) since March 2020 Improvement of MSCI ESG Rating MSCI ESG Rating² AA for BOCH MSCI AA Rating action date: Jan 2022 ESG RATINGS CCC B BB BBB A AA AAA 1) 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 31/12/21 were 130 companies and NGOs. 2) Please refer to slide 84 in the definitions 3) Key positions defined as positions between Assistant Manager A and Manager A 28#29Updated Medium-term Strategic Targets 29#30Investment highlights Our Operating Environment Open, small and dynamic economy; fully recovered to pre-pandemic levels Our Position Our Team Diversified Leading Financial and Technology hub in Cyprus Strong leadership team with an excellent track-record, committed to deliver shareholder value while maintaining best in class governance Our Strategic Priorities Delivering sustainable profitable growth and shareholder value creation 30#31Diversified Leading Financial and Technology hub in Cyprus . Leading full-service Bank 39% market share in loans and 35% in deposits c.655k private individuals customers (~3/4 of population) . Profitable life and non-life insurance business Market leader in Life insurance Strong player in Non Life business • • Strong Technology hub 336K active digital users¹; 89% digital transactions2 75% shareholder in largest payment processing company Launch of Ecosystem to drive the digital economy, leveraging on digital capabilities and market footprint BOCH strengths 1) Active users of mobile and internet banking 2) 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. Digital transactions have been adjusted to include Payroll & Group Transfers performed through 1Bank at transaction level 31#32Significant progress achieved on strategy announced in November 2020... Single digit NPE ratio achieved a year earlier Ⓒ Strengthened capital position CET1 ratio² NPE ratio 30.3% 25.2% <10% 7.5% Dec 19 Dec 20 Dec 211 Dec 22 Previous Guidance 15.8% 14.8% 14.8% ≥13% Dec 19 Dec 20 Dec 211 Previous MT Guidance Cost of Risk normalising post NPE sales II. C/I ratio³ increasing in the near term (as expected) before improving in the medium-term bps 112 118 c.70-80 57 FY2019 FY2020 FY2021 Previous MT Guidance 1) Pro forma for HFS 2) Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements 3) Excludes special levies and other contributions 59% C/I ratio³ 3 Total operating expenses 3 60% 60% Mid 50s% 385 340 347 <350 FY2019 FY2020 FY2021 Previous MT Guidance 32#331) 2) 4) 37 3) ... leading to increased focus on value creation, with updated medium term targets 2021 2023 2025 Return on Tangible Equity (ROTE)1 1.8% Mid-single digit >10% Profitability On trajectory to consider dividend distribution4 Cost to Income ratio² 60% 50%-55% Asset Quality NPE Ratio 7.5% 3 <5% <3% Cost of risk 57 bps 40-50 bps Capital CET1 ratio 15.8% 3 (14.3%³ FL) Supported by CET1 ratio of 13.5%-14.5% Paving the way for dividend distribution from 2023 onwards4 ROTE is calculated as Profit after Tax divided by (Shareholders' equity minus Intangible assets) Calculated using total operating expenses which comprise staff costs and other operating expenses. Total operating expenses do not include the special levy on deposits or other levies/contributions and do not include any advisory or other restructuring costs. Pro forma for HFS Subject to performance and relevant approvals 33#341 4 Key strategic pillars to deliver shareholder value Revenue growth in a more capital efficient way Grow high quality new lending Drive growth in niche areas for further market penetration Diversify through non banking services (insurance and digital products) Organisational resilience & ESG . • Embed ESG sustainability in the Bank's culture Launch of ESG targets with a shift of focus on Environment Invest in our people and promote talent ROTE >10% by 2025 2 Lean operating model • Continued delivery on the cost agenda Improve operating efficiency whilst funding digital transformation and investing in the business 3 • Asset Quality Maintain high quality new lending Complete legacy de-risking and management post pandemic NPE inflows Normalise Cost of Risk and reduce other Impairments 34#35Transformation Plan enabling delivery on Strategic Pillars • Re-define branch operating model . Centralise, streamline and digitalise admin activities ⚫ Migrate transactions to alternative channels Consumer Banking • Improve cross selling • Improve SME service model by simplifying and standardising product offering Our ambition in the near term Digital Sales • Introduce digital products through web and mobile banking platforms (cards, overdrafts, personal loans, auto loans) . • Improve automated campaign capabilities Transformation Plan Efficiency Wholesale/SME Banking • Process streamlining (improve "Time to Yes") Introduce automatic and semi-automatic credit decisioning Optimise and streamline lending process c.65% of wholesale customers to have a positive economic value added >30% sales through digital channels >70% of deposits to migrate to self-service channels >40% of decisions for consumer lending fully automated >30% reduction of administrative activities in branch 35#36Building blocks towards a strong ROTE of >10% by 2025 Gradual recovery of NII ⚫ NII impacted by de-risking and end of TLTRO favourable terms in the near term Expected to recover from 2023 as loan expansion and margin stabilisation more than offsets foregone NII • Well positioned for rising rates given high levels of liquidity c.1% ROTE1 Non-NII: growth in a more capital efficient way Grow Net fees and commissions via multiple initiatives (CAGR c.4%²) Expand insurance income leveraging on Bank's strong market share Digital economy platform introduced to exploit opportunities beyond banking c.1.5-2.0% 1.8% ROTE 2021 Lean operating model Cost containment in the near term driven by transformation plan and digital focus • Committing to total operating expenses <€350 mn by 2025, despite inflationary pressures, whilst funding digitisation and investment in business Effectively eliminating restructuring costs as de-risking largely complete c.2.5-3.0% De-risking ROTE1 Normalisation of COR and reduction in other impairments as balance sheet de- risking largely complete Benefit expected to kick-in in the near term c.2.5-3.0% ROTE 1 >10% ROTE by 2025 1) 2) 72 Contribution to ROTE for 2025 Fees from banking activities (i.e. do not include any fees from Digital Economy Platform) ROTE1 36#37• 1 ① NII growth driven by loan expansion and margin stabilisation Drivers . c.€9 bn of high quality new lending Significant deleverage of Cyprus economy in past 7 years, coming to an end Economic growth expected to continue by annual average of ≥3% in 2022-2025 • • • Benefit from strong market position New lending of c.€9 bn for 2022-2025 € bn New lending €7.1 bn or c.8.0% of GDP1 p.a. 2.0 1.9 1.8 1.4 New lending of c.€9.0 bn or c.8.5% of GDP1 p.a. Help deploy EU Recovery & Resilience Fund (2021- 2026: €1.2 bn) International and shipping new lending of c.€1 bn Explore market opportunities from performing loan trades in Cyprus Support customers in the transition to a sustainable future 2018 2019 2020 2021 2025 Net performing book to grow by c.6% p.a. Net loans (€ bn) • Net performing book to grow by c.6% p.a. Improved NII driven by high quality new lending 1) Nominal GDP 1.4 0.4- CAGR: c.+6% 9.0 9.4 2020 2021 pro forma for HFS 2025 Legacy Performing 34 37#38① NII growth driven by loan expansion and margin stabilisation Drivers Conservative interest rate assumptions Well positioned for faster rising rates • TLTRO favourable terms not expected to be extended post June 2022 Factoring in increased funding cost from further MREL issuance • Conservative assumptions for Fixed Income investments Conservative interest rate assumptions 2.33% 2.31% 0.04 2021 2022 -0.49 2023 -0.30 2024 02.09 2025 -0.54 3M Euribor 1 BOC Base rate 2022 Outlook • NII impacted by de-risking, end of TLTRO favourable terms and potential further MREL issuance4 Interest on Net NPEs not received in cash, fully provided Recovery from 2023 Well positioned for faster rising rates Impact of parallel shifts in interest curves 2,3 Upward scenario* Downward scenario* Y1 Y2 Y3 c.30 mn c.40 mn c.45 mn c.-30 mn c.-30 mn c.-35 mn 50 bps parallel shift in EUR interest rates and 60 bps in USD rates Changes in the Bank base rates are highly correlated to changes in Bank's fixed deposit rates. Bank's fixed deposit rates are currently assumed to have zero sensitivity to +/-50 bps change in EUR market rates and hence no change in Bank base rate is assumed Refer to slide 84 for further details 7237 Based on Market forward rates as of December 2021 (Source Bloomberg) 2) 3) 4) Subject to market conditions 38#39Grow F&C from banking activities, through targeted initiatives Drivers • • Fees supported by price adjustments and increased activity as economy recovers Amend the universe of deposits on which liquidity fees are charged Deposit conversion to higher return products for customers (Wealth services) • Increase average product holding through cross selling (cards, digital loans, wealth and insurance products) to the under-penetrated customer base via: . Operational model re-design Fee and commission income from banking activities1 CAGR: C.+4% 172 144 FY2020 FY2021 FY2025 Potential to improve product penetration Avg product holding/retail customer cards 3.1 2.4 2.6 2.7 • Client segmentation & catering to different customer niches digital products wealth products insurance products 1) Fee and commission income from banking activities do not include any fees from Digital Economy Platform 2018 2019 2021 FY2025 39#40① Profitable insurance business well positioned for further growth eurolife Drivers • Pursue new market segments with profitable potential (business insurance, income protection) • Explore opportunities in Occupational Pensions Launch new products and investment funds (eg: Individual Pension product, ESG fund) Widen target market, leveraging on revamped bancassurance model Strengthen agency force organically and improve productivity through digitisation and campaigns Upgrade customer experience via enhanced self- service capabilities (myeurolife portal) Sustainable healthy profitability... Net insurance income¹ € mn 35 333 +8% 36 FY2019 FY2020 FY2021 ...aiming to further grow, leveraging on Bank's strong market share Bank's loan market share 38.8% Total regular income² € mn +35% > 120 129 138 FY2019 FY2020 FY2021 FY2025 3 Total regular 25.0% 2) 3) 323 1) IFRS 17 (as of 1 Jan 2023) impact remains uncertain but not expected to significantly impact medium term ROTE Total regular income includes yearly renewable gross written premiums and occupational pension contributions Market share as at 31 December 2021 based on draft preliminary market data 2021 3 2025 40 40#41① Profitable insurance business well positioned for further growth Genikes Insurance Drivers • Widen target market leveraging on revamped bancassurance model • Exploit synergies with life insurance agency force • Focus on profitable business segments (fire and liability) • Strengthen profitable penetration into motor sector Pursue digital growth via Genikes Insurance & BOC digital channels • Centralise and automate claims handling process • Enhance customer relationship management Sustainable healthy profitability... Net insurance income € mn 22 +9% 23 25 23 FY2019 FY2020 FY2021 GWP1 growth € mn 50 49 19 > ...aiming to further grow leveraging on Bank's strong market share Bank's loan market share 38.8% 53 >50% FY2019 FY2020 FY2021 FY2025 1) Gross written premium 2) Market share as at 31 December 2021 based on draft preliminary market data GWP1 13.1% market share 2 2021 2025 41#421 A Trusted Provider and the Market Cornerstone Leveraging our market footprint, our trusted provider status and our digital capability investment JINIUS 60% of the businesses in the economy are BOC clients that can obtain value through a B2B1 ecosystem enabled connectivity Digital Partners Reduce integration time. Allow cross industry connectivity Scale 72 1) Business to Business 2) Business to Customer B2B1 帅容 00 Calendar Spend Demographic Bank Branches /ATMs Time Social Rate Portal Login Business partners J! Financial Health Real Estate GPS Connectivity energy میرا A Authorities B2C2 >335K users currently utilise the BOC digital channels services and are digitally engaged and active C Drive the digital economy and create new revenue streams End Users Centralised frictionless experience Combining banking and lifestyle services 42#431 An Ecosystem Driven Platform to Create Opportunities for All Bringing the economy stakeholders together to drive opportunities in lifestyle banking and beyond BOC Own Propositions and Products JINIUS Products, Offerings and Transactions from Others 1) Business to Business 72 2) Business to Customer Facilities Payments Insurance oooo elnvoicing Other eCommerce Utilities pooo ထ B 2 Logistics ထထ pooo 1 A Real Estate Prioritizing the B2B1 Ecosystem as a first stage and continuing to B2C2 after + Other 43#44② Cost containment whilst funding digitisation and investment in business 2 Drivers for a lean operating model Absorbing inflationary pressures and investments in the business by cost saves from further staff and footprint optimisation • Transformation plan in progress to enable modern banking by digitally transforming customer service and internal operations • Automations and centralisation of backoffice activities • Reduction of restructuring expenses to single digit as de-risking largely complete 2022 Outlook C/I ratio¹ expected to rise in 2022 before improving to 50-55% by 2025, as revenues remain under pressure and operating expenses increase due to higher IT/digitisation investment costs Total operating costs¹ <€350 mn despite inflationary pressures € mn C/I ratio¹ expected to rise to mid 60s% before improving to 50-55% 347 Well below 350 Below 350 Mid-60s% 60% 50-55% FY2021 FY2023 FY2025 FY2021 FY2025 Reduction of restructuring expenses to single digit € mn 88 43 38 36 <10 FY2019 FY2020 FY2021 2025 1) Excluding special levy on deposits and other contributions 44#453 Low single digit NPE ratio in sight . Organic NPE reduction resulting to NPE ratio of c.5% by end-2022 Containment of NPE inflows post the pandemic • Normalisation of COR and reduction in other impairments as balance sheet de-risking largely complete NPE ratio 62.9% € bn 15.0 (4.7) (9.5) 7.5% 0.8 c.5% <3% Dec 2014 NPE Sales Net Organic Reduction Dec 2021 pro forma for HFS Dec 2022 Dec 2025 Coverage 34% COR (bps) 365 61% >50% 57 c.40-50 45#46Capital Management with CET1 13.5-14.5% Robust capital position in 2021 Improving ROTE supporting organic capital generation CET1 ratio 15.8%1 (FL:14.3%¹) Total capital ratio 20.8%1 ROTE: >10% by 2025 CET1 management at 13.5-14.5% 1) 2) Pro forma for HFS Subject to performance and relevant approvals Usage of capital going forward • Organic growth of loan book Investment in business . Regulatory impacts One-off cost optimisation charges Paving the way for dividend distribution from 2023 onwards2 46 46#474 ④ Organisational resilience & ESG agenda A Enhanced structure and corporate governance Fostering, cross-functional collaboration Streamlining management committees for faster decision-making Introducing agile working methodologies in the workplace Focus on our people Performance based pay structure introduced across the Bank to drive greater alignment with Bank's strategy and ambition Invest in attracting and developing top talent in functional areas that will support our future growth ESG strategy Launch of ESG targets with focus shifting on Environment Remain strong on Social and Governance Pillars 47#48ESG strategy - Lead the transition to a Sustainable Future Robust Infrastructure Set-up of dedicated Executive Committee to oversee ESG agenda Launch of ESG Targets Formulation of dedicated workgroups to ensure delivery Improvement of MSCI ESG rating: AA rating assigned to BOCH . DO NEUTRAL Carbon neutral by 2030 Net Zero by 2050 Carbon footprint calculation and formulation of decarbonisation plan with specific interim targets • Data gap analysis and initiation of data collection from customers • Identification of climate & environmental risks, to integrate into Bank's Risk Management Green Asset Ratio & Green Mortgage Ratio Steadily increase Continuously enriching environmentally friendly products in line with Recovery & Resilience Plan of Cyprus . ≥30% women in Group's management bodies1 by 2030 24% as at 31 December 2021 33% at Board level as at 31 Dec 2021 38% for key positions below Extended EXCO as at 31 December 2021 Committed to Diversity & Equal Opportunities 1) EXCO and extended EXCO 48#49Key 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]) Marina loannou ([email protected]) Andri Rousou ([email protected]) Stephanie Koumera ([email protected]) Executive Director Finance & Legacy Eliza Livadiotou, Tel: +35722 122128, Email: [email protected] Credit Ratings Standard & Poor's Global Ratings: Long-term Issuer Credit Rating: Affirmed at "B+" on 7 February 2022 (positive outlook) Short-term Issuer Credit Rating: Affirmed at "B" on 7 February 2022 Long-term Resolution Counterparty Rating: Affirmed at "BB" on 7 February 2022 Short-term Resolution Counterparty Rating: Affirmed at "B" on 7 February 2022 Fitch Ratings: Long-term Issuer Default Rating: Affirmed at "B-" on 14 December 2021 (positive outlook) Short-term Issuer Default Rating: Affirmed at "B" on 14 December 2021 Viability Rating: Affirmed at "b-" on 14 December 2021 Moody's Investors Service: Long-term Deposit Rating: Upgraded to "Ba3" on 15 December 2021 (positive outlook) Short-term Deposit Rating: Affirmed at "Not Prime" on 15 December 2021 Baseline Credit Assessment: Upgraded to "b2" on 15 December 2021 Counterparty Risk Assessment: Upgraded to "Ba2(cr)"/ Affirmed at "Not-Prime (cr)" on 15 December 2021 Local and foreign currency long-term Counterparty Risk Rating: Upgraded to "Ba2" on 15 December 2021 Local and foreign currency short-term Counterparty Risk Rating: Affirmed at "Not-Prime" on 15 December 2021 Visit our website at: www.bankofcyprus.com Listing: LSE - BOCH, CSE - BOCH/TPKH, ISIN IE00BD5B1Y92 49 49#50APPENDIX Macroeconomic overview 50#51Strong economic recovery continued in 4Q2021; Conservative macro assumptions underpin the Business Plan Strong economic recovery expected to continue in 2022 Annual Real GDP yoy % change¹ 14.4% Business Plan GDP assumptions Annual Real GDP yoy % change¹ 5.2% 13.4% 5.6% 6.0% 4.0% 3.2% 3.0% 2.9% -2.19 3.9% 4.6% -4.3% -4.4% -1.1% 2020 2021E 2022F 2023F 2024F 2025F 4Q2020 1Q2021 2Q2021 Cyprus 3Q2021 Euro Area 4Q2021 -5.2% Unemployment rate decreased to 7.2% in 3Q2021 Business Plan Unemployment assumptions 8.6% 8.3% 8.3% 8.3% 7.8% 7.6% 7.6% 7.4% 7.5% 6.5% 6.5% 8.2% 8.3% 6.3% 8.1% 8.0% 5.7% 7.3% 7.2% 6.7% 1Q2020 2Q2020 3Q2020 Cyprus 4Q2020 Euro Area 1Q2021 2Q2021 3Q2021 SOURCE: Statistical Service of Republic of Cyprus; Economics Research Centre of University of Cyprus, BOC Economic Research (projections and calculations) 2020 2021E 2022F 2023F 2024F 2025F 51#52Consumption and business activity continue to improve Economic Sentiment Indicator: Confidence returning 109.9 80.0 80.8 105.6 Retail sales stabilise in 4Q2021 Retail trade volume % change -3m average 52.4 10.6 6.5 6.8 -26.8 -4.0 -12.3 -25.1 -49.8 Feb-20 Jan-16 Sep-16 May-17 Jan-18 Sep-18 May-19 Jan-20 Sep-20 May-21 Jan-22 May-20 Aug-20 Retail trade ex motor Non-food ex autom fuel Nov-20 Feb-21 May-21 Aug-21 Nov-21 Retail trade ex autom fuel Motor vehicle registrations Card spending continues to increase in line with economic activity Volume of building permits (€ mn) 1,100 975 1,002 1,000 842 900 800 700 600 500 1,044 #ths 878 400 842 733 300 200 743 706 100 642 0 Jan Feb Mar Apr May Jun July Aug Sept Oct Nov 400 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 2021 2019 - 2020 2021 Source: Cyprus Statistical Service, S&P Ratings Dec 52#53EU 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 €1.1 bn additional funds mobilised in Cyprus 58 reforms 75 investments 41% Green Transition 23% 36% Digital Transition Other m 7.1% increase in GDP for 2022-2026 2.5% increase in employment for 2021-2026 +11,000 new high value-added jobs preparing for a green and digital era • 75 new investments to be initiated including: Interconnection between Cyprus, Greece and Israel (€100 mn) Promotion of diversification and competitiveness via introduction of financing schemes to SMEs and start-ups (€52 mn) • Promotion of sustainable transport (eg: hybrid vehicles) (€49 mn) 58 reforms to be introduced including: Modernising public and local authorities, improving efficiency in judicial system Introducing green taxation Establishing e-government 53#54Appendix- Recovery and Resilience Facility Estimated Budget Policy axis/ Component 1 Public Health and civil protection- lessons learnt from the pandemic 1.1 Resilient and effective health system and enhanced civil protection 2 Accelerated transition to a green economy 2.1 Climate neutrality, energy efficiency and renewable energy penetration 2.2 Sustainability transition 2.3 Smart and sustainable water management Estimated budget (€ mn) % of total estimated budget 74.1 6.1% 74.1 6.1% 447.6 37.1% 269.3 22.3% 91.3 7.6% 87.3 7.2% 3 Strengthening the resilience and competitiveness of the economy 422.3 35.0% 3.1 New growth model and diversification of the economy 166.4 13.8% 3.2 Enhanced research and innovation 64.0 5.3% 3.3 Business support for competitiveness 51.4 4.3% 3.4 Modernising public and local authorities, making justice more efficient and fighting corruption 3.5 Safeguarding fiscal and financial stability 96.0 7.9% 44.5 3.7% 4 Towards a digital economy 4.1 Upgrade infrastructure for connectivity 4.2 Promote e-government 5 Labour market, education and human capital 89.4 7.4% 53.0 4.4% 36.4 3.0% 172.9 14.3% 5.1 Educational system modernization, upskilling and retraining 5.2 Labour market 94.0 7.8% 78.9 6.5% Total RRP Green transition Digital transition 1,206 100% c.491 c.40% c.282 c.23% 54#55APPENDIX Additional asset quality slides 55#56€0.6 bn NPE sale agreed in 4Q2021, reducing NPE ratio to 7.5%¹ REMU properties NPES Helix 3 Corporate Re-performing NPES 3 SMEs Agreement for the sale of €568 mn NPEs and c.€120 mn REMU properties as at 30 Sep 2021 5% Commercial 1% 1% 26% Gross cash consideration of c. €385 mn Completion expected in 1H2022 €568 mn 49% Retail Housing 44% Retail other Accounting profit of c.€10 mn recorded in 3Q2021; +8 bps on CET1 as at 30 Sep 2021 • Overall by completion, total positive impact of 69 bps on the CET1 ratio 32% Land Residential 42% €120 mn 43% reduction of NPES (€ bn) 5 p.p. reduction in NPE ratio 10% reduction of REMU stock Book value (€ bn) Overall, by completion c.70 bps capital accretive CET1 ratio² 1.34 -43% -5 p.p. 12.4% 0.77 Dec 21 Dec 21 pro forma for HFS -10% 1.40 1.26 1.22 7.5% 14.7% 15.1% 15.8% Dec 21 Dec 21 pro forma for HFS Jun 21 Sep 21 Dec 21 Sep 21 Dec 214 Dec 21 pro forma for HFS 4 7237 Pro forma for HFS 2) 3) 4) Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements In pipeline to exit NPEs subject to meet all exit criteria; the analysis is performed on a customer basis CET1 (includes unaudited/un-reviewed profits for the year ended 31 December 2021 56#57Well diversified loan portfolio with high quality collateral Gross loans (excluding legacy)¹ by business sector of €9.54 bn € bn Private Individuals Hotels & Catering Real Estate Trade Professional 0.63 & Other services 1) 2) Other sectors 0.63 Construction 0.46 Manufacturing 0.32 0.94 1.15 1.13 Housing 3.59 Other LTV2 Housing €3.59 bn Other €0.69 bn Business €5.26 bn 0.69 4.28 <80% 88% 35% 71% >80% 12% 65% 29% Private Individuals: €4.28 bn Housing performing loans: €3.59 bn Low LTV² housing portfolio • Other: €0.69 bn • 62% secured portfolio of which: • 88% of portfolio with LTV2<80% • 57% with property • 43% with other type of collateral Business: €5.26 bn • 71% of business portfolio with LTV² <80% Gross loans as at 31 December 2021 of Corporate (incl. IB and W&M and Global Corporate), SME, Retail, and H/O 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 57#581) 2) Decomposition of payment deferrals IFRS 9 staging for expired loan payment deferrals Private individuals: €1.84 bn¹ 1.5% 3.0% 20.7% • Private Individuals Net reclassification of c.€18 mn from Stage 2 to Stage 1 mainly due to improved macro assumptions 1.53 1.51 1.31 Stage 1 Businesses: €3.26 bn¹ 1.7% 2.65 2.08 2.00 0.63 0.25 0.23 0.14 0.10 0.10 • Stage 2 Stage 3 2.4% 40.1% 1.21 1.14 0.95 0.19 Stage 1 Coverage Dec 2020 Stage 2 Sep 2021 0.13 0.12 Stage 3 Dec 2021 As at 31 Dec 2021; includes current accounts and overdrafts of c. €0.26 bn (€0.02 bn for Private individuals and €0.24 bn for businesses) Re-performing: pipeline to exit NPEs subject to meet all exit criteria; the analysis is performed on a customer basis (formerly called Non-core NPEs) Businesses Net reclassification of c.€46 mn from Stage 2 to Stage 1 in 4Q2021, mainly due to updated financial information Adequate coverage of Stage 3 expired payment deferrals; higher than the coverage of re-performing NPES² (slide 23) 58#59Continuous progress across all segments Focus shifts to Retail € mn 771 Corporate 225 €261 mn Terminated Corporate 36 SME 49 €89 mn Terminated SMEs 40 Retail 167 Terminated Retail 254 Dec 21 pro forma for HFS Corporate Dec 20 Inflows Exits Dec 21 HFS (20) Pro forma for HFS SME Dec 20 Inflows Exits Dec 21 113 HFS (24) Pro forma 89 for HFS Retail €421 mn 1) Through organic NPE reduction and NPE sale that was completed in June 2021 (Helix 2) 281 261 (527) 541 3 (263) 619 21 Dec 2021 Pro forma NPE ratio NPE coverage NPE total coverage 5.6% 83% 121% Dec 2021 NPE ratio NPE coverage NPE total coverage Pro forma 7.5% 64% 138% Dec 2021 Pro forma Dec 20 Inflows Exits Dec 21 Pro forma for HFS 1,926 35 NPE ratio 9.5% (1,012) 949 NPE coverage HFS (528) ➤ Retail Housing 44% 421 ➤ Retail Other 52% NPE total coverage 132% 59#60Gross loans and NPEs by Customer Type Gross loans by customer type (€ mn) 12,261 1,667 10,864 10,856 10,282 1,293 1,240 987 4,073 3,698 3,741 3,464 1,765 1,222 1,198 1,173 2,126 2,186 2,196 2,186 2,630 2,465 2,481 2,472 Dec 20 Sep 21 Dec 21 Dec 21 pro forma for HFS NPEs by customer type (€ mn) 3,086 805. 1,449 1,121 1,343 412 366 619 771 608 583 114 105 307 134 113 436 66 89 66 55 229 215 206 Dec 20 Sep 21 Dec 21 Dec 21 Retail other Retail Housing SMEs Global Corporate Corporate pro forma for HFS 60#61NPE Coverage and Total coverage by segment Coverage and collateral maintained Tangible Collateral¹ Allowance for expected loan credit losses Corporate €206 m n Global Corporate: €55 mn SME €89 mn Retail-Housing €307mn Retail-Other €114 mn Total €771 mn 184% 174% 175% 167% 58% 64% 64% 136% 138% 140% 131% 132% 133% 133% 135% 131% 127% 86% 123% 124% 124% 127% 128% 129% 109% 102% 105% 103% 52% 37% 34% 32% 68% 72% 73% 74% 85% 58% 87% 87% 91% 59% 62% 69% 68% 69% 68% 72% 126% 110% 111% 81% 57% 65% 71% 71% 69% 63% 60% 63% 64% 64% 62% 62% 59% 59% 61% 55% 52% 46% 46% 44% Dec 20 Sep 21 Dec 21 Dec 21 pro forma 2 Dec 20 Sep 21 Dec 21 Dec 21 Dec 20 Sep 21 Dec 21 Dec 21 pro forma² pro forma² Dec 20 Sep 21 Dec 21 Dec 21 pro forma 2 Dec 20 Sep 21 Dec 21 Dec 21 forma 2 Dec 20 Sep 21 Dec 21 Dec 21 pro pro forma² 1) Restricted to Gross IFRS balance 2) Pro forma for HFS 61#62Asset quality- NPE analysis (€ mn) Dec-21 Sep-21 Jun-21 Mar-21 Dec-20 Dec-19 A. Gross Loans after Residual Fair value adjustment on initial recognition 10,678 10,683 10,708 12,055 12,031 12,551 Residual Fair value adjustment on initial recognition 178 181 185 226 230 271 B. Gross Loans 10,856 10,864 10,893 12,281 12,261 12,822 B1. Loans with no arrears 9,4922 9,3852 9,2682 9,2302 9,149 8,820 B2. Loans with arrears but not NPES 21 31 36 39 26 122 1-30 DPD 16 23 29 27 21 88 31-90 DPD 8 7 12 5 34 B3. NPES With no arrears Up to 30 DPD 31-90 DPD 91-180 DPD 181-365 DPD 1,343 1,449 1,589 3,012 3,086 3,880 348 363 413 536 548 722 4 5 11 15 16 54 10 11 16 35 26 76 19 24 31 18 18 121 49 41 16 31 81 263 Over 1 year DPD 913 1,005 1,102 2,377 2,397 2,644 NPE ratio (NPES / Gross Loans) 12.4% 13.3% 14.6% 24.5% 25,2% 30.3% Allowance for expected loan credit losses (including residual fair value adjustment on initial recognition¹) 792 849 947 1,869 1,902 2,096 Gross loans coverage NPEs coverage 7% 59% 8% 9% 15% 16% 16% 59% 60% 62% 62% 54% 1) 2) 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 Includes c.€138 mn loans with "non-material" arrears as at 31 Dec 2021 which are calculated based on the new EBA regulation on Definition of Default implemented as of 1 Jan 2021, affecting the calculation of Days-Past-Due. Non material arrears amounted to c.€171 mn as at 31 March 2021, c.€143 mn as at 30 June 2021 and €139 mn as at 30 Sep 2021 62#6331.1% 24.9% 14.1% 10.8% 9.9% Trade 1.36 1.18 1.03 1.04 1.04 NPE ratio by economic activity 26.9% 23.0% 12.8% 12.5% 11.3% Trade Manufacturing Hotels & Restaurant 6.7% 5.0% 2.6% 2.2% 1.9% 0.47 % of total 10% 0.44 0.38 Manufacturing 0.37 0.36 3% Analysis of gross loans and NPE ratio by Economic activity Gross loans by economic activity (€ bn) 1.08 1.19 1.17 1.17 1.18 Hotels & Restaurant Construction 11% 5% 12% 0.85 0.79 0.62 0.62 0.55 Real Estate 1.29 1.27 1.24 1.21 1.30 47% 6.02 5.83 5.08 5.06 5.06 1.00 0.89 0.75 0.75 0.71 Private Individuals Professional and Other sectors other services Construction Real Estate Private Individuals Professional and other services Other sectors 63 3.4% Dec 19 Dec 20 Jun 21 Sep 21 Dec 21 6% 0.75 0.67 0.62 0.64 0.66 6%#64Balance sheet de-risking results in a smaller but safer loan book Net Loans: Non-legacy1 vs Legacy € bn Interest Income on Loans: Non-legacy¹ vs Legacy € mn 15.62 36% 5.64 83 10.73 1.79 82 10.36 10.01 10.06 9.81 77 79 76 1.36 0.73 0.68 0.44 4% 16 17 10 10 7 64% 9.98 8.94 9.00 9.28 9.38 9.37 96% • Dec 16 Dec 19 Dec 20 Sep 21 Dec 21 Legacy Non-legacy 1 Dec 21 pro forma for HFS Lower but higher quality income resulting from balance sheet de-risking Interest income of non-legacy1 book increased to €69 mn reflecting increased volume of loans • Interest income of legacy book remained flat qoq at €10 mn • Interest on Net NPEs not received in cash, fully provided 1) Gross loans of Corporate (incl. IB and W&M and Global Corporate), SME, Retail, and H/O 20 67 65 20 67 69 69 1Q2021 2Q2021 3Q2021 4Q2021 Legacy Non-legacy¹ 69 4Q2021 pro forma for HFS 64 50#65Capital & balance Sheet Profitability Risk adjusted yield will rise as Legacy book reduces Non- Legacy Legacy Group FY2021 FY2021 FY2021 Interest Income on loans 268 53 321 (€ mn) (pre FTP) Loan credit losses (€ mn) 16 (82) (66) Interest Income net of loan 284 (29) 255 credit losses (€ mn) • Cost of Risk (0.17%) 3.77% 0.57% Effective Yield 2.92% 5.48% 3.17% • Risk adjusted Yield¹ 3.10% (3.05%) 2.51% Average Net Loans (€ mn) RWA Intensity 9,195 964 10,159 38% 99% 43% 1) Interest Income on loans net of allowance for expected loan credit losses/Average Net Loans Global corporate, RRD Corporate IB, W&M SME and Retail Banking Overseas non REMU core Non-Legacy Book is expected to grow and to increasingly drive Group results Legacy book revenues predominantly driven by loan credit losses unwinding (but offset via loan credit losses) Interest on Net NPEs not received in cash, fully provided (€2 mn in 4Q2021 and €15 mn in FY2021) As Legacy book reduces: • Group risk adjusted yield expected to rise Group Risk intensity expected to fall supporting CET1 ratio build 55 65#66Rescheduled Loans Rescheduled loans by customer type (€ bn) 2.73 Rescheduled loans-Asset Quality 31 Dec 2021 Stage 1 0.97 2.09 Stage 2 1.60 0.81 1.57 Stage 3 0.44 0.46 0.43 POCI 0.53 0.36 0.19 0.17 0.17 0.17 0.34 0.41 FVPL 0.46 0.46 0.15 0.45 Total 0.36 0.32 0.34 Dec 19 Dec 20 Sep 21 Dec 21 Retail housing Retail other SMEs Global Corporate Rescheduled loans % gross loans by customer type Corporate Global Corporate 28% SMEs Dec 19 Dec 20 Sep 21 24% 23% 22% Corporate Fair value of collateral and credit enhancements Loans and advances to customers Cash Securities Letters of credit / guarantee Retail Housing Dec 21 Retail Consumer Property Other Surplus collateral Net collateral € '000 726,595 564,946 66,249 212,589 1,570,379 31 Dec 2021 (€ mn) 476 587 144 15,639 302 (8,050) 9,098 99 66#67REMU-the engine for dealing with foreclosed assets €1.59 bn sales of 3,206 properties across all property classes since set-up Sales € mn (contract prices¹) Evolution of properties managed by REMU #99 # 331 # 575 # 5792 # 492 # 1,130³ 1,473 34 (140) Sales €1.59 bn (102) L 1,215 (50) 1,215 76 I 505 82 262 160 330 25 238 249 246 179 100 345 91 524 149 2016 2017 2018 2019 2020 FY2021 01 Jan 2021 Additions Sales Transfer to held for sale HFS Cyreit Organic sales # properties Overseas Residential Impairment 31 Dec 2021 loss & fair value losses Commercial & Manufacturing BV by property type Hotels Golf Land Breakdown of cumulative sales1 by on-boarding year ( € mn) 333 13 629 389 162 1,592 1,130 properties sold in FY2021; 703 via organic sales 66 % Sales of vintage stock 61% 55% 61% 46% (BV)5 4 Legacy 2016 2017 2018 2019 2020 Strong pipeline of €109 mn by contract value as at 31 Dec 2021, of which €47 mn related to SPAs signed 4) Legacy properties relate to properties that were on-boarded before REMU set-up in January 2016 723 Amounts as per Sales purchase Agreements (SPAs) 5) 2) 3) Number of properties sold include 21 properties from the disposal of Cyreit and 23 properties from Helix 1 Number of properties include 421 properties from Project Helix 3 and 6 from Project Helix 3 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 December 2021 67#68REMU-the engine for dealing with foreclosed assets On-board assets in REMU at conservative c.25%-30% discount to OMV Cumulative sales by property type; 37% of sales relate to land Sales contract price BV € mn Legacy 2016 2017 2018 2019 2020 2021 184 450 211 157 115 79 19 1,215 100% 72% avg on-boarded value as a % of OMV1 71% 72% 71% 72% 6% 10% Land 37% 16% €1.59 bn 9% 22% Commercial Hotels Residential Cyreit Overseas Sales contracts (excl. DFAs) ³ for FY2021 up 30% yoy Real Estate Market property prices up 1.2% yoy in 3Q20212 10.347 10.366 4.0 9.242 120.0 110.0 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 Central Bank Residential Property Price index 8.734 7.968 3.5 5.885 6.656 7.063 3.0 4.875 4.983 80.0 2.5 79.4 79.1 78.9 79.3 79.5 4.952 6.328 78.6 2.0 5.250 1.2 1.5 2.2 3.603 4.367 4.481 3.691 2.985 1.2 0.9 1.0 2.406 Q12019 Q22019 Q32019 Q42019 Q12020 1.813 0.2 0.5 1.349 Q22020 Residential Propert Price index (2010Q1=100) 201 Q32020 Q42020 0.8 Q12021 Q22021 Q32021 0.0 2015 2016 2017 2018 2019 2020 2021 Sales to Cypriots Sales to non-Cypriots % change y-o-y (RHS) 723 2) Open market value at on-boarding date Based on Residential price index published by Central Bank dated 23 January 2022 3) Based on data from Land of Registry- Sales contracts 68#69APPENDIX Additional financial information 69#70Consolidated Balance Sheet Assets (€ mn) 31.12.2021 Cash and balances with Central Banks 9,231 Loans and advances to banks Debt securities, treasury bills and equity investments 2,139 1,913 12% 31.12.2020 change Liability and Equity (€ mn) 31.12.2021 31.12.2020 change 5,653 63% Deposits by banks 457 392 17% 292 403 -28% Funding from Central Bank 2,970 995 Customer deposits 17,531 16,533 6% Net loans and advances to customers 9,836 9,886 -1% Loan stock 643 272 Stock of property 1,112 1,350 -18% Other liabilities Investment properties 118 128 -8% Total liabilities Other assets 1,876 1,550 21% Shareholders' equity Non current assets and disposal groups held for sale 359 631 -43% Other equity instruments 1,281 1,247 3% 22,882 19,439 18% 1,839 1,831 0% 220 220 Total assets 24,963 21,514 16% Total equity excluding non- controlling interests 2,059 2,051 0% Non controlling interests 22 24 -8% Total equity 2,081 2,075 0% Total liabilities and equity 24,963 21,514 16% 70 70#71Risk Weighted Assets- Regulatory Capital Risk Weighted Assets by Geography (€ mn) 31.12.19 31.12.20 30.09.21 31.12.21 31.12.21 Pro forma for HFS Cyprus 12,678 11,477 10,860 10,595 10,245 United Kingdom 48 23 23 0 0 Less: Deconsolidation of insurance and other entities Romania 29 26 20 13 13 Less: Regulatory adjustments Reconciliation of Group Equity to CET1 € mn 31.12.21 Group Equity per financial statements 2,081 Less: Intangibles² (30) (200) 20 Greece 121 105 87 84 84 Less: Revaluation reserves and equity instruments transferred to AT1 (251) Other 14 5 2 2 CET11 1,620 RWAs 12,890 11,636 10,991 10,694 10,344 Risk Weighted Assets 10,694 RWA intensity 61% 54% 45% 43% 41% CET1 ratio 1,3 15.1% Equity and Regulatory Capital (€ mn) Risk Weighted Assets by type of risk (€ mn) 31.12.20 30.09.213 31.12.213 31.12.19 31.12.20 30.09.21 31.12.21 31.12.21 Pro forma Total equity excl. non-controlling interests 2,051 2,066 2,059 for HFS CET1 capital 1,723 1,612 1,620 Credit risk 11,547 10,505 9,860 9,678 9,328 Tier I capital 1,943 1,832 1,840 Market risk Operational risk 1,343 1,131 1,131 1,016 1,016 Tier II capital 192 329 300 Total 12,890 11,636 10,991 10,694 10,344 Total regulatory capital (Tier I + Tier II) 2,135 2,161 2,140 723 2) 3) Capital amounts and ratios include unaudited/un-reviewed profits for the nine months ended 30 September 2021 and for the year ended 31 December 2021 respectively Allowing for IFRS 9 and temporary treatment for certain FVOCI instruments transitional arrangements As per amendments introduced with Regulation 2020/873 71#72Pro forma for HFS, RWA intensity reduced to 41% RWAs reduced by €1,292 mn since Dec 2020 RWAs Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Sep 21 Dec 21 Dec 21 Pro forma for HFS € bn 19,666 18,865 17,260 15,373 12,890 11,636 10,991 10,694 10,344 RWA intensity decreased to 41% pro forma for HFS 85% 85% 73% 70% 61% -13 p.p. 54% 45% 43% 41% Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Sep 21 Dec 21 Dec 21 pro forma for HFS • Pro forma for HFS, RWA intensity decreased to 41%, 13 p.p. in FY2021, driven mainly by the completion of Helix 2 and the reduction in operational risk 72#73SREP requirements SREP requirements for 2021 and 2022 CET1 ratio Total capital ratio 15.01% 14.50% 1.25% 10.08% O-SII 1.00% 9.69% 1.25% 2.50% O-SII 1.00% CCB 1 2.50% 2.50% CCB 2.50% 3.26% Pillar 2R 3.00% Pillar 2R 1.69% 1.83% Tier 2 2.00% 2.00% AT1 1.50% 1.50% Total Pillar 1 4.50% 4.50% Pillar 1 Pillar 1 4.50% of 8% 4.50% 1) 2) 2021 2022 2021 2022 SREP Requirement CET1 and Total capital ratio minimum capital requirements for 2022 set at to 10.08% and 15.01% respectively, following c.26 bps² add-on in P2R due to ECB's prudential provisioning expectations and 25 bps phasing in of O-SII buffer P2R add-on is dynamic and can be reduced during 2022 on the basis of in-scope NPEs and level of provisioning . Decrease in P2G more than offsets P2R increase in CET1 ratio • Total O-SII buffer reduced by 50 bps to 1.5%; phasing-in of 25 bps on 1 January 2022 and 1 January 2023 • New SREP requirements are effective from 1 March 2022 In accordance with the legislation in Cyprus which has been set for all credit institutions the applicable rate of the CCB was fully phased in at 2.5% in 2019 Takes into consideration Helix 3 73#74Buffer to MDA Restrictions Level & Distributable Items¹ Maximum Distributable Amount for BOCH CET1 Ratios 1) 2) 15.1% CET1 31 Dec 2021 CET1 Ratio (%) CET1 Req Unfilled AT1 + T2 capacity • No prohibition applies to the payment of coupons on any AT1 capital instruments issued by the Company and the Bank • Significant CET1 MDA buffer as at 31 Dec 2021:545 bps (€583 mn) • Following the 2021 SREP, the Company and the Bank are still be under equity dividend distribution prohibition for 2022 545 bps c.9.7% -<0.1% 9.7% 31 Dec 20212 MDA Threshold ו־ו Unfilled AT1 & L-T2 Bucket Distance [ ] bps to MDA • Previous variable pay restriction was lifted Distributable Items definition per CRR Including phasing in of O-SII buffer (+25 bps). In November 2021, the Bank received notification from the CBC that the final O-SII buffer is reduced by 50 bps to 1.5%, therefore the phasing-in of the O-SII buffer on 1 January 2022 and 1 January 2023 has been revised to 0.25% for each period. 74 14#75Cypriot business Loan market share stable qoq post completion of Helix 2 ⚫Loans 45.4% 41.1% 41.9% 39.1% 37.1% Deposits Strong market shares in resident and non-resident deposits Residents Non-residents 38.3% 37.3% 38.8% 35.8% 35.4% 35.3% 35.2% 35.3% 34.9% 34.9% 36.0% 35.1% 35.0% 34.8% 34.8% 32.4% 33.0% 32.8% 31.5% Dec 17 Dec 18 Dec 19 Dec 20 Dec 17 Dec 18 Dec 19 Dec 20 Sep 21 Sep 21 Dec 21 Dec 21 Average contractual interest rates (bps) (Cy) Yield on Loans Cost of Deposits Customer spread Customer deposit rates (bps) (Cy) Time & Notice accounts Savings and Current accounts Cost of deposits 6 5 4 3 3 2 380 376 375 363 343 347 374 371 371 360 340 345 15 12 9 9 8 6 00 6 5 4 3 3 2 0 0 0 O 3Q2020 4Q2020 1Q2021 2Q2021 3Q2021 4Q2021 3Q2020 4Q2020 1Q2021 2Q2021 3Q2021 4Q2021 75 75#76Income Statement bridge¹ for FY2021 € mn Net interest income Net fee and commission income Net foreign exchange gains and net gains/(losses) on financial instrument transactions and disposal/dissolution of subsidiaries Insurance income net of claims and commissions Underlying basis Statutory NPE sales Other Basis 296 296 172 172 24 24 (30) (6) 61 61 Net gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties Other income 13 (1) 12 15 15 Total income 581 (1) (30) 550 Total expenses Operating profit Loan credit losses Impairments of other financial and non-financial instruments (383) (16) (23) (422) 198 (17) (53) 128 (66) 13 17 (36) (36) (19) (55) Reversal net of provisions for litigation, claims, regulatory and other matters Profit before tax and non-recurring items Tax 2 (2) 98 (23) (38) 37 (5) (5) Profit attributable to non-controlling interests (2) (2) Profit after tax and before non-recurring items (attributable to the owners of the Company) Advisory and other restructuring costs - organic 91 (23) (38) 30 (22) 22 Profit after tax - Organic (attributable to the owners of the Company) 69 (23) (16) 30 Provisions/net loss relating to NPE sales Restructuring and other costs relating to NPE sales Restructuring costs – Voluntary Staff Exit Plan (VEP) Profit after tax - attributable to the owners of the Company (7) 7 I (16) 16 (16) 16 30 30 1) Please refer to section B1 "Unaudited Reconciliation of income statement for the year ended 31 December 2021" between statutory and underlying basis of the Group Financial Results 76#77Income Statement € mn 4Q2021 3Q2021 qoq% Net Interest Income 73 71 2% Net fee and commission income 44 44 -1% Net foreign exchange gains/(losses) on financial instrument transactions and disposal/dissolution of subsidiaries and associates Insurance income net of claims and commissions 10 6 87% 18 12 60% Net gains from revaluation and disposal of investment properties and on disposal of stock of properties 5 2 99% Other income 4 4 -6% Total income Staff costs Other operating expenses Special levy on deposits and other levies/contributions Total expenses Operating profit Loan credit losses Impairments of other financial and non-financial assets Net reversal/(provisions) for litigation, claims, regulatory and other matters Total loan credit losses, impairments and provisions Profit before tax and non-recurring items Tax (Loss)/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) Net (loss)/profit relating to NPE sales Restructuring and other costs Profit after tax (attributable to the owners of the Company) 154 139 11% (50) (51) (37) (38) -3% (12) (9) 26% (99) (98) 1% 55 41 33% (9) (22) -55% (23) (2) 8 (2) (24) (26) -7% 31 15 96% (2) (2) 2% (2) 27 13 101% (3) (1) 24 12 96% (1) 10 (13) (3) 10 19 -46% 77#78Analysis of Interest Income and Interest Expense Analysis of Interest Income (€ mn) 4Q2020 1Q2021 2Q2021 3Q2021 4Q2021 Loans and advances to customers 89 83 82 77 79 Loans and advances to banks and central banks 2 3 7 10 11 Investment at amortised costs 2 2 2 2 Investments FVOCI 4 3 23 Investments classified as loans and receivables 97 91 94 92 95 Trading Investment Derivative financial instruments 8 8 4 2 2 Other investments at fair value through profit or loss Total Interest Income 105 99 98 94 97 Analysis of Interest Expense (€ mn) Customer deposits (3) 2 (2) (1) Funding from central banks and deposits by banks Loan stock 0 0 (1) 0 (6) (6) (6) (8) (8) Repurchase agreements 0 0 0 0 0 Negative interest on loans and advances to banks and central banks (6) (5) (8) (9) (10) (15) (13) (16) (18) (19) Derivative financial instruments Total Interest Expense (10) (10) (6) (5) (5) (25) (23) (22) (23) (24) 78#79Income Statement by business line for FY2021 € mn Net interest income/(expense) Consumer SME Corporate Global International Wealth & Banking Banking Banking corporate Banking Markets RRD REMU Insurance Treasury Other Total 77 29 51 56 8 48 22 8 296 Net fee & commission income/(expense) 46 9 14 9 55 6 13 (8) 2 26 172 Other income 2 1 1 6 4 17 61 10 11 113 Total income 125 39 66 65 69 10 61 14 53 34 45 581 Total expenses (157) (25) (26) (22) (30) (9) (39) (21) (21) (11) (22) (383) Operating (loss)/ profit (32) 14 40 43 39 1 22 (7) 32 23 23 198 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 Net reversal/(provision) for litigation, claims, regulatory and other matters (Loss)/profit 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) 13 3 6 (5) 1 (77) (28) (7) (66) (8) (36) 2 2 (19) 17 46 38 2 (2) (6) (5) 40 (5) (55) (35) 32 23 10 98 7 (4) (3) 7 (2) 5 2 (5) (2) (17) 15 40 40 33 35 1 (48) (31) 28 20 15 91 79 19#80Analysis of Deposits Deposits by Currency (€ bn) 16.69 16.53 17.13 17.53 -0.29-0.10 0.29-0.11 1.29 1.20 1.32 0.31-0.10 1.37 -0.31 0.11 Dec 21 8% 2% 0% Other Currencies 15.01 14.93 15.40 15.74 GBP USD 90% EUR Dec 19 Dec 20 Sep 21 Dec 21 Deposits by Type (€ bn) 16.69 16.53 17.13 17.53 33% 7.59 8.15 8.86 9.22 Current & demand 53% 1.57 accounts 1.97 2.27 2.42 Savings accounts 14% 7.53 6.41 6.00 5.89 Time deposits Dec 19 Dec 20 Sep 21 Dec 21 Deposits by customer Sector (€ bn) 16.69 16.53 17.13 17.53 4% 28% Retail 10.15 10.54 10.86 11.06 SME 5% 0.69 0.80 5.05 0.85 0.60 4.54 0.56 0.83 4.88 0.63 0.88 Global Corporate 63% 4.96 Corporate Dec 19 Dec 20 Sep 21 Dec 21 80#81APPENDIX Glossary & Definitions 81#82Glossary & Definitions 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 and before non-recurring items 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 DFES 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. 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), (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), (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 Basic earnings/(losses) after tax and before non-recurring items per share (attributable to the owners of the Company) is the Profit/(loss) after tax and before non-recurring items (as defined below) (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. Debt for Equity Swaps. 82#83Glossary & Definitions Digitally engaged customers ratio Digital transactions ratio DTA 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. Digital engagement has been adjusted to include Standing Orders & Group Transfers performed through 1 Bank at transaction level. Historical values have been adjusted accordingly for this change. 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. Digital transactions have been adjusted to include Payroll & Group Transfers performed through 1Bank at transaction level. Historical values have been adjusted accordingly for this change. Deferred tax asset DTC Deferred Tax Credit EBA ECB Effective yield Effective yield of liquid assets FTP GBV Gross Loans Gross Sales Proceeds Group H/O 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 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) 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 €178 mn at 31 December 2021 (compared to €181 mn at 30 September 2021 and €230 mn at 31 December 2020). 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 €336 mn at 31 December 2021 (compared to €334 mn at 30 September 2021 and €326 mn at 31 December 2020). 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. Head Office 83#84Glossary & Definitions IB, W & M 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 fee and commission income over total income Net interest margin (NIM) Net loans and advances to customers Net loans to deposits ratio Net zero emissions International Banking, Wealth and Markets 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 38.8% at 31 December 2021, compared to 39.1% at 30 September 2021 and 30 June 2021, 42.4% at 31 March 2021 and 41.9% at 31 December 2020. The decrease in 2Q2021 is mainly due to the completion of Project Helix 2. 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 Fee and commission income less fee and commission expense divided by total income (as defined). 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 loans to deposits ratio is calculated as gross loans (as defined) net of allowance for expected loan credit losses (as defined) divided by customer deposits. The reduction of greenhouse gas emissions to net zero through a combination of reduction activities and offsetting investments 84#85Glossary & Definitions New lending Non-interest income Non-recurring items NPE coverage ratio (previously 'NPE Provisioning coverage ratio') NPE ratio NPES 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 instrument transactions and disposal/dissolution of subsidiaries and associates (excluding net gains on loans and advances to customers at FVPL), Insurance income net of claims and commissions, 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 Interim Condensed Consolidated Income Statement - Underlying basis' relate to the following items, as applicable: (i) Advisory and other restructuring costs - organic, (ii) Provisions/net (loss)/profit relating to NPE sales, and (iii) Restructuring and other costs relating to NPE sales. 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. ii. iii. iv. V. 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 of days past due. 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. Material exposures as set by the Central Bank of Cyprus (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: - Retail exposures: Total arrears/excess amount greater than €100 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%. 85#86Glossary & Definitions NPES sales Non-legacy Phased-in Capital Conservation Buffer (CCB) NSFR OMV Operating profit p.p. Project Helix 2 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 NPE sales refer to sales of NPE portfolios completed, as well as contemplated and potential future sale transactions, irrespective of whether or not they met the held for sale classification criteria at the reporting dates. 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. The NSFR weights under CRR II do not have material deviations from those under Basel III guidelines which the Group followed prior to CRR II enforcement. 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 Project Helix 2 refers to the sale of portfolios of loans with a total gross book value of €1.3 bn completed in June 2021. For further information please refer to section A.1.5 Loan portfolio quality of the press release. 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 31 December 2021 refer to Project Helix 3 and Project Sinope. They are based on 31 December 2021 underlying basis figures and assume their completion, currently expected to occur in 1H2022, which remain subject to customary regulatory and other approvals. References to pro forma figures and ratios as at 31 December 2020 refer to Project Helix 2, which was completed in June 2021. 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 €568 mn, as well as real estate properties with book value of c.€120 mn as at 30 September 2021. 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. Quarter on quarter change Restructuring activity within quarter as recorded at each quarter end and includes restructurings of NPES, performing loans and re-restructurings. 86#87Glossary & Definitions Risk adjusted yield RRD RW As Interest Income on Loans net of allowance for expected loan credit losses/Net Loans. Restructuring and Recoveries Division. 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. 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', or (ii) restructuring costs relating to NPE sales. (i) 'Advisory and other restructuring costs-organic' amounted to €3 mn for 4Q2021 (compared to €1 mn for 3Q2021, €15 mn for 2Q2021, €3 mn for 1Q2021 and €1 mn for 4Q2020), (ii) Restructuring costs relating to NPE sales for 4Q2021 amounted to €0.2 mn (compared to €3 mn for 3Q2021, €6 mn for 2Q2021, €4 mn for 1Q2021 and c. €1.5 mn for 4Q2020). 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 net reversals/(provisions) 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 87