#1Bank of Cyprus Group Group Financial Results for the first quarter ended 31 March 2016 EUROMONEY AWARDS FOR EXCELLENCE 2015 Bank of Cyprus The Best Bank in Cyprus 2015 * The Group Financial Results have been reviewed by the Group's external auditors 31 May 2016 Bank of Cyprus DINO#21Q2016 Financial Results - Highlights Reduction in Problem Loans Problem loans (90+ DPD) 1 down by €1,0 bn (or 9%) qoq and by €2,5 bn (or 20%) yoy • 90+ DPD ratio down by 3 percentage points to 47% and provisioning coverage ratio improved to 49% Loan restructurings of €1,5 bn during 1Q2016, up by 11% qoq and by 117% yoy Normalising Funding Structure ELA reduced by €1 bn post 31 December 2015 to €2,8 bn Customer deposits increased to 62% of total assets Ratio of Loans to Deposits (L/D) improved to 119% Strong Capital Position CET1 ratio strengthened by 30 basis points to 14,3% RWA intensity of 85% results in a high leverage ratio³ of 13,1% Profitable Quarter • Profit before provisions of €145 mn for 1Q2016 • Profit after tax of €50 mn for 1Q2016 Net Interest Margin maintained at 3,63%; Cost to income ratio of 40% Strong Franchise in a recovering . Loans and deposit market shares of 40,4% and 28,2%, respectively New lending of €223 mn in the first four months of 2016 Cypriot GDP growing by an annual 2,7% 2 for 1Q2016 economy (1) Problem loans (90+ DPD) are loans in arrears for more than 90 days (90+ DPD) and are defined as loans past-due for more than 90 days and those that are impaired (impaired loans are recognition or customers in Debt Recovery). those which are not considered fully collectable and for which a provision for impairment has been recognised on an individual basis or for which incurred losses exist at their initial Bank of Cyprus (2) Based on flash estimates published on 13 May 2016 by the Statistical Service of the Republic of Cyprus (3) Leverage ratio = Tangible Equity over Total Assets 2 ADING#3Significant Reduction in Problem loans 90+ DPD fell by €1,0 bn in 1Q2016 NPEs fell by €0,64 bn in 1Q2016 90+ DPD (bn) 90+ DPD ratio NPES with forbearance measures, no impairments, no arrears Quarterly 90+ DPD change (%) NPES (€ bn) Quarterly NPEs change (%) NPEs ratio 62,9% 63,0% 61,9% 62,2% 61,8% Forborne NPES with no impairments or arrears Amount in € bn- Expected to exit NPEs by year¹ 61,0% 53,2% 53,1% 52,9% 52,5% 50,1% 14,96 15,17 14,81 14,22 13,97 1,0 47,1% 1.34 13,33 0,8 1,46 1,86 0,4 2,181 12,65 12,79 12,65 12,00 1% -1% 11,33 -5% 10,29 -6% -9% Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 1% -2% -4% 2016 2017 2018+ -2% -5% Economic improvement underpins asset quality 90+ DPD (mn) Cyprus operations Cyprus GDP growth rate (%) 1.809 -18 -150 -2,4% -2,1% -1,6% -3,8% -5,2% 2,3% 2,8% 2,7% 1,2% 325 97 0,1% 59 -130 -55 -204 -647 -1.022 -6,3% 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 (1) Curing period of the NPEs with forbearance measures, but no impairments and no arrears, assuming no re-default. Non-performing loans (90+ DPD) reduced by €1,0 bn (or 9%) qoq and by €2,5 bn (or 20%) yoy Non Performing Exposures (NPEs), as per EBA definition, reduced by €0,64 bn during 1Q2016 and totalled €13,3 bn at 31 March 2016 NPES with forbearance measures, no impairments and no arrears totalled €2,2 bn at 31 March 2016; almost half is expected to exit the NPE classification during 2016, subject to no re-default Bank of Cyprus 3 DINO#490+ DPD Reduction mainly due to Corporate Loans Group 90+ DPD by Customer type (€ bn) 90+ DPD inflows - Cyprus operations (€ bn) ■Corporate ■SMES ■Retail other ■Retail housing 90+ DPD inflows 12,65 12,79 12,65 0,68 Average quarterly inflows 12,00 1,17 1,21 11,33 1,24 0,60 1,08 10,29 1,22 1,26 1,18 1,10 1,14 1,08 1,11 3,07 3,14 1,07 3,13 3,03 2,90 2,79 0,36 0,34 - 0,29 7,19 7,18 7,10 6,80 6,25 5,33 0,22 0,13 0,11 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 90+ DPD inflows by customer type - Cyprus operations (€ bn ) 0,29 3Q2014 4Q2014 1Q2105 2Q2105 3Q2105 4Q2015 ■1Q2016 Average 0,37 0,20 0,16 0,17 0,14 0,09 0,02 0,02 Corporate 0,10,0%.08 0.08 0,06 0,04 0,05 SMEs 0,22 0,130,11 0,08,07 0.10 0,050,06 Retail 88% of the 90+ DPD reduction for 1Q2016 relates to corporate loans 90+ DPD inflows reduced significantly to €0,13 bn for 1Q2016 Bank of Cyprus 4 DINO#5Cost of risk¹ Cost of Risk Cyprus Cost of Risk Group Improved Provisioning Coverage Levels Accumulated provisions Accumulated provisions (€ bn) Provisions % Gross loans 4,3% 24,1% 21,6% 22,2% 22,5% 23,2% 21,6% 3,6% 19,3% 20,0% 4,0% 2,1% 2,2% 2,1% 2,4% 1,7% 1,5% 1,6% (1) (2) (3) 1,1% 4,9 4,9 5,1 5,4 5,4 4,9 5,4 5,1 Jun Sep Dec Mar FY2014 1Q2015 1H2015 9M2015 FY2015 1Q2016 2014 2014 2014 2015 Jun Sep 2015 2015 2015 Dec Mar 2016 Provisioning coverage ratios 90+ DPD provision coverage -Adjusted NPEs provision coverage NPES provision coverage 3 49% 48% 42% 43% 3 41% 41% 45% 45% 39% 38% 39% 38% 38% 36% 35% 34% 35% 33% 34% Jun Sep Dec Mar Jun Sep Dec 2014 2014 2014 2015 2015 2015 2015 Mar 2016 • • Accumulated provisions of €5,1 bn, accounting for 23,2% of gross loans at 31 March 2016 90+ DPD provisioning coverage ratio improved to 49% at 31 March 2016; The 90+ DPD provisioning coverage ratio calculated in line with local peers, with reference to the contractual balances of customers, totalled 61% 2 NPEs provisioning coverage ratio at 38% at 31 March 2016. Adjusting NPEs to remove those with forbearance measures, which have no impairments & no arrears, the provision coverage would be 45% That is Provisions for impairment of customer loans and gains/(losses) on derecognition of loans and changes in expected cash flows This ratio is calculated by adjusting both the provisions stock and the customer balances to include any unrecognised interest income due on contractual balances. Adjusted NPEs provision coverage excludes NPEs with forbearance measures, no impairments and no arrears. DINO Bank of Cyprus 5#690+ DPD Fully Covered by Provisions & Tangible collateral Analysis of 90+ DPD coverage for Cyprus operations Mar-15 Jun -15 Sep-15 Dec -15 Mar - 16 110% 109% 111% 115% 114% 71% 70% 72% 69% 67% Total BoC - Cyprus 39% 39% 39% 46% 47% 113% 112% 115% 119% 117% 71% 69% 72% 68% 65% Corporate 42% 43% 43% 51% 52% 112% 107% 107% 108% 112% 76% 75% 75% 73% 71% SME 31% 32% 33% 39% 41% 107% 105% 106% 110% 114% 81% 80% 81% 79% 79% Retail- Housing 26% 25% 25% 31% 35% For Cyprus operations, 90+ DPD provision coverage increased to 47% at 31 March 2016, compared to 46% at 31 December 2015 Collateral coverage remains broadly unchanged and stands at 67% at 31 March 2016 As at 31 March 2016, overall coverage of 90+DPD stood at 114%, compared to 115% at 31 December 2015 and to 110% a year earlier 104% 102% 104% 106% 107% 52% 51% 53% 49% 49% Retail-Other 52% 51% 51% 57% 58% Bank of Cyprus Loan Loss Reserve coverage Tangible coverage 6 DINO#7Restructuring Momentum Remains Strong Restructuring Activity by quarter (€ bn) Corporate SMEs Retail Total restructurings --Average restructurings 117% 0,73 0,56 0,32 0,24 0,29 0,33 0,15 0,07 0,09 0,11 1Q2015 2Q2015 3Q2015 0,69 0,44 0,38 0,20 0,17 0,07 4Q2014 Restructured loans performance1 72% 74% 88% 74% 65% 69% %-69% 75% 67% No arrears ■1Q2014 ■1Q2015 ■2Q2014 ■2Q2015 ■3Q2014 ■3Q2015 ■4Q2014 4Q2015 Average 18% 14% 8% 9% 4% 15% 3% 9% 23% 16% 15% 8% 4% 5% 6% 7% 8% 7% 11% 3% 1-30 dpd 31-90 dpd °8% 8% 6% 8% 0% Over 90 dpd (1) The performance of loans restructured during 1Q2016 is not presented in this graph as it is too early to assess it. 0,82 11% 1,50 1,35 0,95 0,73 0,34 0,35 0,19 0,19 4Q2015 1Q2016 Total restructurings of €1,5 bn for 1Q2016; Restructuring of corporate loans accounted for 64% of total 1Q2016 restructurings At 31 March 2016, 75% of loans restructured post 31 December 2013 for Cyprus operations have no arrears, while 8% of such restructured loans were in arrears more than 90 days DINO Bank of Cyprus 7#8Sustainable Improvements Across the RRD book Bespoke tactical plans are in place for each segment within RRD, delivering asset quality improvements across the book... Business unit summary Major Corporate 2,9 2,8 2,0 Management (€ bn) 1,7 . Gross Gross 90+ loans loans DPD 90+ DPD - Corporate Management (€ bn) Dec 15 Mar 16 Dec 15 Mar 15 • 23 connections • >€100 mn debt Large diversified groups Key management actions ⚫ c. 94 experienced restructuring officers • • • • c200 connections 1,8 1,6 . 1,0 €6-100 mn debt 0,6 Gross loans Dec 15 Gross loans - 90+ DPD - 90+ • Mid market DPD- Mar 16 Dec 15 Mar 16 businesses • Portfolios assigned based on size/complexity Sustainable solutions using (amongst others): Debt: Equity & Debt:Asset swaps Retrenching, including 'equity like' PIK Support from internationally experienced restructuring specialists External lawyers (UK & CY) used extensively Comprehensive improvements to lending documents, security, step in rights, monitoring & covenants Progress Good progress • Active negotiations ongoing with all major borrowers Good prospects to conclude and execute deals Good progress • • Active negotiations ongoing with all major borrower Good prospects to conclude and execute deals SME (€ bn) • c.1900 connections <€6 mn debt 1,4 1,3 1,0 0,9 • Gross Gross 90+ 90+ loans loans DPD DPD - Dec 15 Mar 16 Dec 15 Mar 16 • Small OMBS Retail €1,5 bn, 21k customers 5,3 0.67 0.708 0,6 5,2 5,3 5,2 978 • 1,5 1,5 1,5 1,5 Recoveries (€ bn) • SME €1,5 bn, 2,4 2,2 2,4 2,2 4k customers Gross Gross 90+ 90+ loans loans - DPD - DPD- Dec 15 Mar 16 Dec 15 Mar 16 RRD-Recoveries corporate Corporate €2,2 bn c.250 connections e • 8 specialist geographically spread BU's New team added in 1Q2016 to drive pace ⚫ Portfolio analysis with targeted campaigns • • Product range enhanced e.g. split & freeze Close monitoring & clearing of early arrears • • International specialists added 4Q2015 Skills/experience transfer from other teams Increased focus on faster consensual deals Step up aggressive actions for non co- operative borrowers RRD-Recoveries SMEs RRD-Recoveries Retail Other RRD-Recoveries Retail Housing Rapidly improving progress New team and approach delivering results • Underlying economic improvements helping Slower but improving progress Refreshed approach in corporate is starting to deliver results Foreclosure actions are important to building & maintaining pace Bank of Cyprus 8#9Progress on top 20 Group Exposures Top 20 group exposures as at 30 September 2014 and their progress since then Total Exposure (€ bn) 1 Loans other than 90+ DPD (€ bn) 90+ DPD (€ bn) NPES over Total Exposure 90+ DPD over Total Exposure Restructured loans over Total Exposure Total coverage (Provisions and MV of collateral over Total exposure) 97% 96% 95% 95% 107% 104% 102% 74% 75% 73% 71% 71% 69% 70% 65% 64% 69% 66% 67% 61% 64% 59% 4,4 4,2 4,0 4,0 3,7 3,8 45% 43% 46% 3,5 46% 1,6 1,5 1,3 1,3 1,1 32% 1,5 1,6 53% Top 20 group exposures (as at 30 September 2014) totalled €3,5 bn as at 31 March 2016, compared to €4,4 bn at 30 September 2014 ■ Ratio of 90+ DPD to total exposure reduced by 8 percentage points to 53% during 1Q2016. Taking into account the provisions and tangible collateral, the top 20 exposures are fully covered Ratio of NPE to total exposures remained relatively stable at 71% due to the stickiness of the NPE definition 2,8 2,7 2,7 2,7 2,6 2,3 1,9 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 (1) Total Exposures include on balance sheet and off balance sheet items. As at 31 March 2016, 65% of the top 20 group exposures were restructured Bank of Cyprus 9 DINO#10€1,0 bn Reduction of ELA during 2016 Rapid reduction of ELA Plans to fully eliminate ELA Deposit Growth 11,40 11,11 9,86 9,56 9,51 8,78 34% 32% 31% 31% 31% 28% 28% 26% 23% 20% . Wholesale and interbank market access • Maturity of non-core bonds • Retention of cash profits from operations 7,68 7,40 • Proceeds from deleveraging 16% 6,90 15% 5,90 • 1 Covered bond eligible for ECB funding 12% 4,90 3,80 3,30 Use loans as collateral for ECB funding through the Additional Credit Claim framework 2,80 €8,6 br reduction of ELA since peak Apr Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar 31 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 May 2016 ELA (€ bn) ELA % Total Assets Full repayment of ELA during 2017 Bank of Cyprus 10 DINO (1) Ratio of ELA Funding % Total Assets for 31 May 2016 is based on total assets at 31 March 2016#11Improving Funding Structure Growing customer deposit base (€ bn ) ■Cyprus ■ UK 1 Other countries Improving funding structure Customer deposits to Total Assets Loans to deposits ratio (net) 2 141 EU average Loans to deposits ratio 14,18 14,13 148% 13,80 141% 13,61 13,63 13,61 13,33 0,01 138% 136% 13,17 132% 0,86 0,61 0,61 1,49 1,43 121% 119% 0,80 0,55 1,45 1,25 1,36 1,39 1,29 1,31 124% 125% 125% 123% 121% 11,69 11,24 11,31 11,64 12,16 12,69 12,69 61% 62% 11,63 49% 49% 51% 54% 56% Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Strong market shares in Cyprus Residents Non-Residents 35,2% 32,2% 30,8% +6,0 p.p³. yoy 32,9% 31,1% 28,4% 27,5% 26,7% 26,9% 26,7% 27,5% 25,6% 25,5% 27,0% 24,6% 24,3% 23,7% 24,1% 24,6% 25,3% 26,1% 26,5% +1,9 p.p³. yoy Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 (1) Other countries comprise Russia, Romania and Greece. (2) Based on EBA Risk Dashboard Report, Data as at 31 December 2015 (3) p.p percentage points Sep 2014 Dec 2014 Mar 2015 Jun 2015 Sep 2015 Dec 2015 Mar 2016 • . • Group customer deposits totalled €14,13 bn at 31 March 2016. In constant exchange rates, Group customer deposits increased by €152 mn, with customer deposits in Cyprus increasing by €98 mn during 1Q2016 Ratio of Loans to deposits improved to 119% Deposit market shares in Cyprus in March 2016 for Residents and non-Residents were 26,5% and 32,9% respectively Bank of Cyprus 11 DINO#12Strong and Improving CET1 ratio Evolution for CET11 ratio during 1Q2016 Pillar Il capital requirement 0,7% 14,0% (0,3%) (0,1%) 0,2% (0,2%) 14,3% (0,8%) 13.5% P&L impact of 0,3% !11,75% CET1 ratio Profit before Provisions Other 31.12.15 provisions RWAs Change DTA and CET1 ratio DTA2 CET1 ratio other equity 31.03.16 (transitional) movements (transitional) 31.03.16 (fully loaded). Capital Adequacy Ratios • CET1 ratio at 14,3% Post 31 March 2016 the Bank sold Kermia Hotels Ltd ³. This is expected to have a 0,1 p.p. positive impact on the CET 1 ratio (Pro-forma CET 1 ratio at 14,4%) 2 CET 1 ratio (transitional) -Average EU CET 1 ratio (transitional) CET1 ratio (Fully loaded) 15,6% 14,9% 14,3% 14,0% 13,9% 15,1% 14,0% 14,4% 13,6% 13,4% 13,4% 13,5% 13,0% 13,1% 12,8% 12,5% 12,4% 31.12.14 31.03.15 (1) CET 1 ratio includes independently verified profits of 1Q2016 (2) Based on EBA Risk Dashboard Report, Data as at 31 December 2015 (3) Subject to regulatory approvals 30.06.15 30.09.15 31.12.15 31.03.16 Bank of Cyprus 12 DINO#13Capital Position Compares well with Peers 'Clean' Fully Loaded CET1 ratio (December-20152) 'Clean' Fully Loaded CET1 ratio (LHS) RWA % Total Assets (RHS) Average 'Clean' Fully Loaded CET1 ratio Average (RWA % Total Assets) (1) (2) (3) 25% 20% 15% 13,3% 10% 44% 5% 0% BOC CET1 FL 13,5% RWA intensity 85% Leverage ratio³ (December-20152) 20% Tangible Equity % Total Assets Average 15% BOC Leverage ratio 13,1% 10% 5% 0% 90% 80% 70% 60% 50% 40% 30% 20% 10% 6,7% • "Clean" Fully loaded CET1 ratio at 13,5%, higher than average for EU peers, reflecting a very low level of DTA RWA intensity of 85%, compared to an average of 44% Leverage ratio at 13,1%, compared to an average of 6,7% As per SNL Financial Database, 'Clean' Fully Loaded CET1 ratio as at 31 December 2015, excludes Deferred Tax Credits, AFS and Danish Compromise Estimated Impact. Bank of Cyprus data is based on 1Q2016 financial results. Bank of Cyprus 13 DINO Leverage ratio is defined as Tangible Equity over Total Assets.#14Income Statement Review (1) (2) (3) € mn Total income Total expenses 1Q2016 4Q2015 qoq % 1Q20152 yoy % Key Highlights 1Q2016 244 253 -4% 274 -11% (99) (119) -17% (102) -3% 145 134 9% 172 -15% • A solid start to 2016 with a profit after tax of €50 mn Profit before provisions and impairments¹ Provisions for impairment of customer loans net of gains/(losses) on derecognition of loans and changes in expected cash flows (62) (630) -90% (110) -44% • Impairments of other financial and non financial assets (8) (24) -67% (1) Share of profit from associates 1 2 -65% 1 -57% • Profit/(loss) before tax, restructuring costs and discontinued operations 76 (518) 62 22% Tax Profit attributable to non-controlling interests (8) 8 (8) 2% (1) 1 1 Profit/(loss) after tax and before restructuring costs, discontinued operations and net profit on disposal of non- core asset 67 (509) 55 24% • Advisory and other restructuring costs³ (17) (16) 7% (8) 112% Loss from disposal group held for sale/discontinued operations (0) (18) • Net gain/(loss) on disposal of non-core assets 13 Profit/(loss) after tax 50 (512) 29 76% Net interest margin 3,63% 3,69% -6 bps 3,94% -31 bps Return on average assets (annualised) 0,9% -8,6% +9,5 p.p 0,4% +0,5 p.p Return on tangible equity (annualised) 6,7% -69,5% + 76,2 p.p 3,4% +3,3 p.p Cost-to-Income ratio 40% 47% -7 p.p 37% +3 p.p Total Income down by 4% Total Expenses down by 17% • Profit before provisions up by 9% Cost to Income ratio at 40% NIM maintained at 3,63% Profit before provisions and impairments, gains/(losses) on derecognition and changes on expected cash flows, restructuring costs and discontinued operations. 1Q2016 is not comparable to 1Q2015 given the significant deleveraging completed since then, including, among others, the repayment by the Republic of Cyprus of the sovereign bond held by the Bank and the disposal of the majority of the Russian operations during 3Q2015. Restructuring costs comprise mainly costs of external advisors in relation to disposal of operations as well as fees for customer loan restructuring activities which are not part of the effective interest rate, listing related expenses and other expenses including property transfer fees relating to the restructuring process of the Group and costs incurred in closing down branches and operations. Bank of Cyprus DINO 14#15(1) (2) A Solid Start to 2016 Group Income Statement Highlights (€ mn) 274 261 251 253 244 Total Income -92 -102 -102-119 -99 Total Expenses 1Q2015 2Q2015 ■3Q2015 ■4Q2015 ■1Q2016 172 169 149 134 145 -62 -96 -110.1 -123 -630 Profit before impairments¹ restructuring costs and discontinued operations Provisions for impairment of customer loans and gains/(losses) on derecognition and changes in expected cash flows Return on Tangible Equity (ROTE) (%) & Return on Average Assets (ROAA) ■1Q2015 3,4% 3,6% 2,9% ■1H2015 ■-9M2015 6,7% -14,9% Return on Tangible Equity 2 ■FY2015 ■1Q2016 29 31 13 -512 Profit/(loss) after tax 0,4% 0,5% 0,9% 0,4% -1,7% Return on Average Assets 2 Profit before provisions and impairments, gains/(losses) on derecognition and changes on expected cash flows, restructuring costs and discontinued operations. ROTE and ROAA are on an annualised basis. 50 Bank of Cyprus 15 DINO#16Maintaining NIM and Customer Spread in a Competitive Market Net Interest Income and Net Interest Margin Interest income from Republic of Cyprus bond (€ mn) Net interest income (€ mn) NIM (bps) - NIM (excluding Rep. of Cyprus bond) (bps) • € bn Interest bearing assets 23,9 22,8 21,8 20,8 20,1 394 379 370 369 363 350 355 355 340 227 212 205 198 185 25 22 • Net Interest Income (NII) at €185 mn, compared to €198 mn for 4Q2015; The decrease is primarily due to lower loan volumes, the deleveraging actions and the full repayment of a high yielding bond by the Republic of Cyprus in December 2015 Net Interest Margin (NIM) remains healthy at 3,63%; Adjusting for the interest income relating to the Republic of Cyprus bond, NIM has been increasing 202 190 196 191 185 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 Yield on Loans and Cost of Deposits in Cyprus¹ (bps) Yield on Loans 573 Cost of Deposits Customer spread 537 536 527 530 434 418 432 427 435 139 119 104 100 95 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 (1) Includes all currencies Interest bearing assets decreased by 4% to €20,1 bn, • • Customer spread in Cyprus maintained at 435 bps despite competitive pressures • €223 mn new loans were granted during the first four months of 2016; New loan pipeline is promising (2) Interest bearing assets include placements with banks and central banks, reverse repurchase agreements and net loans and advances to customers and investments excluding equity and mutual funds. Bank of Cyprus KOINO KYMPI 16#17Stable Non-interest Income Analysis of Non Interest Income (€ mn) – Quarterly Net fee and commission income Insurance income net of insurance claims Other 1 % 14% 16% 47 14% 49 46 15% 55 15% Net fee and commission income % Total income 59 X 9 11 54 1 16 54 ! 9 45 1 12 481 14 50 Non interest income (€ mn) 43 443 -7 1Q2015 36 2Q2015 Fee & commission income by business line ■International Banking Services ■Consumer ■SME 7% Corporate 6% RRD Wealth and Management Other 2% 9% 10% 31% 36 38 -2 3Q2015 4Q2015 X 36 Recurring non-interest income (€ mn) 1Q2016 Payment Transactions are gradually increasing- Average Number of Payment Transactions per month (thousands) ■Incoming Payment Orders Outgoing Payment Orders 53 One third of IBS 41 35% fee & commission income is driven by Payment Transactions 35 33 29 30 31 26 20 21 2013 pre-Bail- 2013 - post-Bail- in 2014 2015 2016 ytd in (1) Comprising (a) Net FX gains/(losses) & Net gains/(losses) on other financial instruments, (b) Losses from revaluation and disposal of investment properties and (c) other income. Bank of Cyprus KOINO KYMPI 17#18Costs under control Total expenses (€ mn) Staff costs ■Operating expenses 103 115 102 44 44 44 57 43 119 102 99 92 62 333 43 62 40 10 59 58 59 59 59 57 59 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 Cost to Income Ratio (1) Group EU average 63% 63% 61% 59% 60% 40% 40% 38% 37% 37% 36% FY2014 1Q2015 1H2015 9M2015 FY2015 1Q2016 Based on EBA Risk Dashboard Report, Data as at 31 December 2015 • • Total expenses in line with previous quarters Staff costs in line with previous quarters Operating expenses for 4Q2015 were elevated due to higher non-recurring advisory and professional expenses and increased provisions for litigations and legal settlements. • Cost to income ratio stable at 40% Actions for focused, targeted cost containment: Tangible savings through a targeted cost reduction program for operating expenses Introduction of appropriate technology/ processes to enhance product distribution channels and reduce operating costs Introduction of HR policies aimed at enhancing productivity, including a Voluntary Exit Plan (VEP). Bank of Cyprus 18 DINO#19Core Profitability Residing in the Cyprus Operations 1Q2016 Cyprus Vs Group performance (€ mn) 93% 92% 244 224 173 185 12 20 -89 90% -99 -10 Net interest income Total income Total expenses 93% 102% % % contribution of Cyprus operations 135 145 68 67 ■Cyprus operations 10 ■Rest of operations -1 Profit before provisions and impairments restructuring costs and discontinued operations 1 Profit after tax and before one off items ■Group High NIM in Cyprus operations Healthy Cost to Income ratio for Cyprus operations Steady Fee and commission income for Cyprus operations Total income (€ mn) (bps) Other income Fee and commission income 379 386 369 367 366 354 359 262 250 254 251 224 40% 38% 16% 13% 14% 15% 15% 35% 35% 35% 35% FY2015: 373 84% 87% 86% 85% 85% 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 FY14 1Q15 1H15 9M15 FY15 1Q16 1Q15 2Q15 3Q15 4Q15 1Q16 (1) Profit before provisions and impairments, gains/(losses) on loan derecognition and changes on expected cash flows, restructuring costs and discontinued operations. Bank of Cyprus 19 ADING#20Significant Progress made on Group KPIs A clear plan of action to achieve Medium Term Targets Medium Category Key performance indicators Dec- 2015 Mar- 2016 Term Targets 1. Significantly reduce problem loans 2. Normalise funding structure; Eliminate Key Pillars & Plan of action Intensify restructuring and workout activities of delinquent borrowers Increase pace of restructurings and focus on more complex and older cases on the back of the foreclosure law • REMU to on-board, manage and dispose of properties acquired • Deposit Growth; Wholesale and interbank market access Maturity of non-core bonds; Retention of cash profits from operations; Proceeds from deleveraging Covered bond eligible for ECB funding Use loans as collateral for ECB funding through the Additional Credit Claim framework Direct lending into promising sectors to fund the recovery of the Cypriot economy Diversify income stream by boosting fee income from international business, wealth, and insurance New loan origination, while maintaining lending yields Expand the UK franchise by leveraging the UK subsidiary 90+ DPD ratio 50% 47% <30% Asset quality 90+ DPD coverage 48% 49% >50% Provisioning charge 1 4,3% 1,1% <1,0% ELA % Assets; 16%; € bn €3,8 bn 15%; €3,3 bn Fully repay ELA Funding Net Loans % Deposits 121% 119% 100%-120% 3. Focus on • 14,0% 14,3% >15% core markets Capital CET1 (transitional) Net interest margin 3,8% 3,6% ~3,00% • Margins and efficiency Fee and commission 15% 15% >20% income/total income 4. Achieve a lean operating model Tangible savings through a targeted reduction program for operating expenses • • Introduce appropriate technology/processes to enhance product distribution channels and reduce operating costs Introduce HR policies aimed at enhancing productivity Cost to income ratio 40% 40% 40%-45% Balance Sheet 5. Deliver returns Deliver appropriate medium-term risk-adjusted returns Total assets € bn €23,3 bn €22,7 bn >€25 bn 1) IFRS9 impact, which is effective as from 1 January 2018, has not been taken into account for the purpose for the targets. Targets are set on the basis of the present regulatory environment. Bank of Cyprus 20 DINO#21Key Takeaways Cypriot economy recovering well; BOC franchise remains strong ELA significantly down; Now at €2,8 bn; Intention to fully repay as soon as possible Improving funding structure; Loans to Deposits ratio (L/D) at 119% and customer deposits accounting for 62% of total assets CET1 ratio strengthened by 30 basis points to 14,3%; 90+ DPD down by €1,0 bn or 9% during 1Q2016; 90+ DPD provision coverage improved to 49% Restructuring momentum remains high with €1,5 bn of restructurings in 1Q2016 Foreclosure legislation and insolvency framework can now be used as one of the tools for the effective management of problem loans Stabilizing pre-provision profitability, with profit before provisions of €145 mn for 1Q2016; Profit after tax of €50 mn for 1Q2016 DINO Bank of Cyprus 21#22Key Information and Contact Details Credit Ratings: Fitch Ratings: Long-term Issuer Default Rating: upgraded to "B-" on 25 April 2016 (stable outlook) Short-term Issuer Default Rating: upgraded to "B" on 25 April 2016 Viability Rating: upgraded to "b-" on 25 April 2016 Moody's Investors Service: Baseline Credit Assessment: Affirmed at caa3 on 28 May 2015 (stable outlook) Short-term deposit rating: Affirmed at "Not Prime" on 28 May 2015 Long-term deposit rating: Affirmed at Caa3 on 28 May 2015 (stable outlook) Counterparty Risk Assessment: Assigned at Caa2(cr) / Not-Prime (cr) on 28 May 2015 Listing: ATHEX - BOC, CSE - BOCY, ISIN CY0104810110 Contacts Investor Relations Tel: +35722122239, Email: [email protected] Constantinos Pittalis, Investor Relations Manager, Email: [email protected] Annita Pavlou, ([email protected]) Elena Hadjikyriacou, (elena.hadjikyriacou @bankofcyprus.com) Marina loannou, ([email protected]) Styliani Nicolaou, ([email protected]) Finance Director Eliza Livadiotou, Tel: +35722122344, Email: [email protected] Visit our website at: www.bankofcyprus.com DINO Bank of Cyprus 22#23Appendix - Macroeconomic overview Bank of Cyprus 23 DINO#24Macroeconomic Overview: Cyprus economy surpassing expectations Economic growth gaining momentum GDP Growth* (yoy) 2010 2011 2012 2013 2014 2015 2016E 2017E I 2,2% 2,5% 1,3% 1,6% 0,3% (2,4%) (2,7%) (6,0%) (3,4%) (3,9%) (8,7%) Real GDP growth - Actual Initial Projections (EC) 2Q2011 3Q2011 4Q2011 1,2% -0,4% -0,8% 1Q2012 -1,2% 2Q2012 -2,4% 3Q2012 -2,3% 4Q2012 -3,7% 1Q2013 -5,3% 2Q2013 -6,0% 3Q2013 -5,5% 4Q2013 -4,7% 1Q2014 2Q2014 3Q2014 -3,2% -1,8% -2,1% 4Q2014 -1,8% 1Q2015 0,1% 2Q2015 1,2% 3Q2015 4Q2015 2,3% 2,8% 1Q2016¹ 2,7% Improved rating and credit outlook as demonstrated by benchmark sovereign bond issue Cyprus 2022 (issued 04/2015) Cyprus 2025 (issued 11/2015) -Cyprus 2019 (issued 06/2014) 0,18 0,16 0,14 0,12 0,1 0,08 0,06 0,04 0,02 0 при - Cyprus 2020 (issued 02/2010) Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 (1) Based on the Statistical Service of the Republic of Cyprus ============================= SOURCE: Statistical Service of Republic of Cyprus, Bloomberg, IMF and company reports ADING Bank of Cyprus 24#25Q42010 Q12011 Q22011 Q32011 Q42011 Q12012 Q22012 Q32012 Q42012 Q12013 Macroeconomic Overview - Economic growth gaining momentum Indicators of private consumption (annual percentage change) 70,0% 60,0% 50,0% 40,0% 30,0% 20,0% 10,0% 0,0% -10,0% -20,0% ш Unemployment will ease gradually 15,9% 16,2% 15,0% 14,5% 13,2% 11,9% 11,9% 10,6% 7,9% 0,6% 1,2% 0,6% 1,5% 9,6% 1,5% -1,1% 1,2% -2,9% -1,3% -4,6% 2011 2012 2013 2014 2015 2016* 2017* 2018* 2019* 2020* Real Private Consumption % ch. y-o-y Q22013 Q32013 Q42013 Q 12014 Q22014 Q32014 Q42014 Q12015 Evolution of Residential Property Price Index (RPPI) (yoy % change) Q22015 Q32015 Share in total GDP Q42015 Unemployment rate (% of labour force) Contribution to GDP growth 0 1,6% 25% Residential Property Price Index 1,3% 20% 10% 0% 0% -7% -10% -20% -30% -40% 0,3% 0 0 -2,1% 0 -2,4% -2,7% -1,8% -9% 0 0 -6,0% 0 2009 2010 2011 2012 2013 2014 2015 1Q2007 1Q2014 2Q2014 1Q2015 3Q2015 4Q2015 Agriculture Industry Construction Information Real Estate Other services * Projections are per IMF 9th Review dated January 2016 SOURCES: Central Bank of Cyprus, Statistical Service of Republic of Cyprus, European Commission, Bloomberg, IMF and company reports; Calculations by BOC Economic Research Tourism, trade and transport Financial and insurance Professional and administrative GDP Bank of Cyprus 25 DINO Employment growth %#26Macroeconomic Overview - Key economic sectors performing well Construction growth % qoq Tourist Arrivals and Receipts: yoy % changes 20,0% 10,0% 0,0% -10,0% -20,0% -30,0% -40,0% Q12010 Q22010 Q32010 Construction growth % qoq Q42010 Q12011 Q22011 Q32011 Q42011 Q12012 Q22012 Q32012 Q42012 Q12013 Q22013 Q32013 Q42013 Q12014 Q22014 Q32014 Q42014 Q12015 Q22015 Q32015 Q42015 Accumulative tourist arrivals per year in 000's 3000 2500 2000 3,8% 1,5% ■ Arrivals Receipts 14,4% 10,1% 8,7% 8,0% 3,0% 32,4% 12,5% 8,9% 1,5% 5,0% -2,4% -2,8% 2010 2011 2012 2013 2014 2015 2016 Jan- Mar Revenues from Tourism as % of GDP 12% 12,2% 11,5% 11,6% 1500 9,9% 10% 1000 9,1% 500 8,1% 8,1% 8% 0 2009 2010 2011 2012 2013 2014 2015 Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Tourism as a % of GDP -2007 2012 2008 2013 2009 2010 2011 2014 2015 SOURCES: Statistical Service of Republic of Cyprus, European Commission, Bloomberg, IMF and company reports, Calculations by BOC Economic Research Bank of Cyprus 26 DINO#27Macroeconomic Overview – Improving fiscal conditions Total Government revenue vs expenditure (% of GDP) Prudent fiscal policy delivers strong results (% of GDP) 108% 109% ■Total revenue ■Total expenditure 103% 99% 95% 79% 66% 56% 42,5% 42,2% 41,9% 41,4% 39,8% 40,0% 39,5% 39,0% 39,0% 39,2% 39,1% 38,8% 37,5% 36,8% 36,5% 36,1% 2010 2011 2012 2013 2014 2015 2016F 2017F Government budget and primary balance and public debt as % of GDP Actual fiscal balance & current forecast Original Programme fiscal target 3.000 2.500 -0,2% 0,0% 0,1% 2.000 -4,8% -4,9% -5,7% -5,8% -5,9% -5,8% -7,5% 1.500 -2,7% 1.000 2010 2011 2012 2013 2014 2015 2016F 500 0 3% 3% 3% 3% 1% 0% 0% 0% -2% -3% -3% -4% -5% -6% -5% -6% 2010 2011 2012 2013 2014 2015 2016F 2017F Government budget balance (% of GDP) Government primary balance (% of GDP) Gross public debt (% of GDP) Maturity profile of Cyprus Government Debt (€ mn) Other Loans ■Domestic Bonds/T-bills IMF-ESM loans EMTN Securities 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 SOURCES: Statistical Service of Republic of Cyprus, European Commission, Bloomberg, IMF and company reports, Eurostat, Calculations by BOC Economic Research 2032 2033 2034 2035+ Bank of Cyprus 27 KYRPI#28Appendix - Additional financial information Bank of Cyprus 28 DINO#29Consolidated Balance Sheet € mn % 31.03.16 31.12.15 € mn % 31.03.16 31.12.15 change change Cash and balances with -20% 1.141 1.423 Deposits by banks 29% 313 242 Central Banks Funding from central banks -15% 3.803 4.453 Loans and advances to -3% 1.273 1.314 banks Repurchase agreements -8% 339 368 Customer deposits -0% 14.128 14.181 Debt securities, treasury bills -9% 914 1.009 and equity investments Debt securities in issue -7% 1 1 Net loans and advances to -2% 16.821 17.192 Other liabilities 1% 958 944 customers Other assets 9% 2.482 2.284 Non current liabilities and disposal groups classified as held for sale 4 4 Non current assets and Total liabilities -3% 19.546 20.193 disposal groups classified as -19% 39 49 held for sale Share capital 0% 892 892 Total assets -3% 22.670 23.271 Capital reduction reserve and share 0% 2.505 2.505 premium Revaluation and other reserves 2% 263 259 Accumulated losses -7% (559) (601) Shareholders' equity 2% 3.101 3.055 Non controlling interests 1% 23 23 Total equity 2% 3.124 3.078 Total liabilities and equity -3% 22.670 23.271 Bank of Cyprus 29 DINO#30Income Statement Review € mn Net interest income Fees and commission income 1Q2016 4Q2015 qoq % 1Q2015³ yoy % 185 198 -7% 227 -19% 36 38 -6% 43 -17% Insurance income net of insurance claims 14 16 -16% 12 14% Core income Other income ! Total income 235 252 -7% 282 -17% 9 1 (8) 244 253 -4% 274 -11% Total expenses (99) (119) -17% (102) -3% Profit before provisions and impairments¹ 145 134 9% 172 -15% I Provisions for impairment of customer loans net of gains/(losses) on derecognition of (62) (630) -90% (110) -44% loans and changes in expected cash flows Impairments of other financial and non financial assets (8) (24) -67% (1) Share of profit from associates 1 2 -65% 1 -57% (Profit/(loss) before tax, restructuring costs and discontinued operations 76 (518) 62 22% Tax (8) 8 (8) 2% (Loss)/profit attributable to non-controlling interests (1) 1 1 (Profit/(loss) after tax from continuing operations² 67 (509) 55 24% Advisory and other restructuring costs 4 (17) (16) 7% (8) 112% Loss from disposal group held for sale/discontinued operations (0) (18) Net gain on disposal of non-core assets 13 (Profit/(loss) after tax 50 (512) 29 76% Net interest margin 3,63% 3,69% -6 bps 3,94% -31 bps Cost-to-Income ratio 40% 47% -7 p.p 37% +3 p.p (1) (2) Profit before provisions and impairments, gains/(losses) on derecognition and changes on expected cash flows, restructuring costs and discontinued operations. Profit/(loss) after tax and before restructuring costs, discontinued operations and net profit on disposal of non-core assets. (3) 1Q2016 is not comparable to 1Q2015 given the significant deleveraging completed since then, including, among others, the repayment of the sovereign bond held by the Bank by the Bank of Cyprus Republic of Cyprus and the disposal of the majority of the Russian operations during 3Q2015. DINO JWN K (4) Advisory and other restructuring costs comprise mainly fees of external advisors in relation to: (i) disposal of operations (ii) customer loan restructuring activities which are not part of the effective interest rate and (iii) the listing on a european stock exchange. 30#31Analysis of Operating Expenses € mn Operating lease rentals for property and equipment Advertising, marketing and communication expenses Property related costs Insurance expenses Depreciation and amortisation Special tax levy on deposits of credit institutions in Cyprus & Contribution to depositor protection scheme Provision and settlements of litigations or claims Consultancy and other professional services fees Other operating expenses Total operating expenses 1Q2016 4Q2015 3Q2015 2Q2015 1Q2015 2 2 3 3 2 5 8 8 2 5 10 16 10 7 8 3 4 4 4 3 4 5 10 5 5 LO 5 5 5 4 4 4 (2) 6 2 2 4 4 3 4 11 12 5 3 12 40 62 62 43 33 43 Bank of Cyprus 31 DINO#32Income Statement bridge for 1Q2016 € mn Net interest income Net fee and commission income Net foreign exchange gains/(losses) and net gains/(losses) on other financial instruments Insurance income net of insurance claims Gains from revaluations/disposals of investment properties Losses on disposal of stock properties Other income Total income Total expenses Profit before provisions and impairments, gains/(losses) on derecognition of loans and changes in expected cash flows, restructuring costs and discontinued operations ---- Provisions for impairment of customer loans Loss on derecognition of loans and changes in expected cash flows Impairments of other financial and non-financial assets Share of profit from associates Profit before tax, restructuring costs and discontinued operations Per presentation Reclassification 185 Per financial statements 185 36 36 6 6 14 14 1 3 4 (3) (3) 2 2 244 244 (99) (17) (116) 145 128 (47) (15) (47) (15) (8) 1 (8) 1 59 (8) (1) 50 (17) (17) 50 50 76 Tax (8) Loss attributable to non-controlling interests (1) Profit after tax and before restructuring costs, discontinued operations and net profit from disposal of non-core assets 67 Advisory and other restructuring costs 1 Profit after tax (1) Restructuring costs comprise mainly costs of external advisors in relation to disposal of operations as well as fees for customer loan restructuring activities which are not part of the effective interest rate, London listing related expenses and other expenses including property transfer fees relating to the restructuring process of the Group and costs incurred in closing down branches and operations. Bank of Cyprus 32 ADINO#33Cyprus Income Statement € mn Net interest income 1Q2016 4Q2015 3Q2015 2Q2015 1Q2015 173 186 192 200 211 Net fee & commission income 34 36 34 34 42 Insurance income net of insurance claims 13 16 11 8 12 Core income 220 238 237 242 265 Other income/(expenses) 4 13 16 8 (2) iTotal income 224 251 253 250 263 Staff costs Other operating expenses Total expenses iProfit before provisions and impairments (54) (54) (54) (55) (55) (35) (59) (38) (31) (37) (89) (113) (92) (86) (92) 135 138 161 164 171 Provisions1 (55) Impairment of other financial assets and non financial assets (5) 55 (593) (73) (102) (79) (14) (6) (19) (1) Share of profit from associates Profit/(loss) before tax 1 3 0 1 2 76 (466) 82 44 93 Tax (8) 10 (6) (2) (8) Profit/(loss) attributable to non-controlling interests (0) 1 0 (0) 0 Profit/(loss) after tax and before one off items 68 (455) 76 42 85 (1) Provisions for impairment of customer loans and gains/(losses) on derecognition of loans and changes in expected cash flows Bank of Cyprus 33 DINO#34Cyprus: Income Statement by business line for 1Q2016 € mn SME Corporat Internationa Consume Bankin e I Banking r Banking g Banking Wealth & Brokerage & Asset Manageme RRD REMU Insurance Other Total Cyprus nt Net interest income 63 16 19 16 2 62 (2) (3) 173 Net fee & commission income 11 2 12 1 3 Other income 1 2 1 (2) 14 (1) 4 34 14 1 17 Total income 74 18 22 30 65 (4) 13 2 224 Total expenses (29) (3) (3) (7) (2) (9) (2) (4) (30) (89) Profit/(loss) before provisions 45 15 19 23 2 56 (6) 9 (28) 135 i and impairments Provisions for impairment of customer loans net of gains/(losses) on derecognition 11 (1) 10 (1) 1 (73) (2) (55) of loans and changes in expected cash flows Impairment of other financial (4) (1) (5) and non financial assets Share of profits from associates 1 1 Profit/(loss) before tax 56 14 29 22 Tax (7) (2) (4) 23 3 (17) (10) 9 30 (30) 76 (3) (0) 2 (1) 6 (8) Profit attributable to non controlling interest (0) (0) Profit/(loss) after tax and ! before one off items 49 12 25 19 3 (15) (9) 8 (24) 68 Bank of Cyprus ADING 34#35Summary Income Statement by Geography € mn Net interest income Net fee & commission income Insurance income net of insurance claims Other income (expenses) Total income Staff costs Other operating expenses Total expenses Profit/(loss) before provisions and impairments Provisions1 Impairment of other financial assets and non financial assets Share of profit from associates iProfit/(loss) before tax Tax Profit attributable to non-controlling interests Profit/(loss) after tax and before one off items (1) (2) UK OTHER 2 1Q2016 1Q2015 1Q2016 1Q2015 8 8 5 13 1 1 0 0 0 0 20 7 (4) 9 9 12 11 (3) (4) (1) (6) (3) (4) (3) (8) (6) (8) (4) (14) 3 1 8 (3) 0 (1) (8) (49) (3) 3 0 (3) (52) (0) (0) (0) 1 4 3 0 (3) (47) Provisions for impairment of customer loans and gains/(losses) on derecognition of loans and changes in expected cash flows Other countries include Russia, Romania and Greece Bank of Cyprus 35 DINO#36Risk Weighted Assets - Regulatory Capital Risk weighted assets by Geography (€ mn) Equity and Regulatory Capital (€ mn) 31.03.15 30.06.15 30.09.15 31.12.15 31.03.16 31.03.15 30.06.15 30.09.15 31.12.15 31.03.16 Cyprus Russia 20.473 19.607 19.473 18.438 18.276 Shareholders' equity 3.502 3.506 3.518 3.055 3.101 813 708 46 21 25 United Kingdom 1.162 667 663 685 650 CET1 capital 3.201 3.205 3.231 2.748 2.7692 Romania 294 318 315 269 198 Tier I capital 3.201 3.205 3.231 2.748 2.769 Greece 181 180 173 208 182 Other1 49 47 47 45 43 Tier II capital 30 32 22 30 20 Total RWA 22.972 21.527 20.717 19.666 19.374 Total regulatory capital (Tier I + Tier II) 3.231 3.237 3.253 2.778 2.789 RWA intensity (%) 86% 85% 86% 85% 85% Risk weighted assets by type of risk (€ mn) Reconciliation of Group Equity to CET 1 € mn 31.03.16 31.03.15 30.06.15 30.09.15 31.12.15 31.03.16 Group Equity per financial statements 3.124 Less: Intangibles and other deductions (18) Credit risk 20.881 19.426 18.830 17.618 17.326 Less: Deconsolidation of insurance and other entities (229) Market risk 6 16 7 8 8 Operational risk 2.085 2.085 1.880 2.040 2.040 Less: Regulatory adjustments (Minority Interest, DTA and other items) Less: Revaluation reserves and other unrealised items transferred to Tier II CET 1 (transitional) (56) (52) 2.769 Less: Adjustments to fully loaded (mainly DTA) (150) Total 22.972 21.527 20.717 19.666 19.374 CET 1 (fully loaded) 2.619 Risk Weighted Assets CET 1 ratio (fully loaded) CET 1 ratio (transitional)1 19.374 13,5% 14,3% 32 (1) Other countries primarily relates to exposures in Channel Islands (2) CET 1 ratio iincludes independently verified profits of 1Q2016 Bank of Cyprus 36 KOINO KYMPI#37BOC- Main performance indicators 31 March 2016 Performance Ratios ROAA (annualised) ROTE (annualised) Net Interest Margin Cost to income ratio Loans to deposits 90+ DPD/90+ DPD ratio Asset Quality 90+ DPD coverage Cost of risk (annualised) Provisions Gross Loans Transitional Common Equity Tier 1 capital CET1 ratio (transitional basis) Group 1Q2016 0,9% 6,7% 3,63% 40% 119% €10.289 mn (47,1%) 49% 1,1% 1 23,2% €2,769 mn Capital 14,3% Total Shareholder's Equity / Total Assets 13,7% Shareholder's Equity Intangible assets # shares Book Value per Tangible Book Value per (€ mn) (€ mn) (mn) share share 30/09/2014 3.728 135 8.922 0,418 0,403 31/12/2014 3.465 127 8.922 0,388 0,374 31/03/2015 3.502 130 8.923 0,392 0,378 30/06/2015 3.506 128 8.923 0,393 0,379 30/09/2015 3.518 131 8.923 0,394 0,380 31/12/2015 3.055 134 8.923 0,342 0,327 141 31/03/2016 3.101 8.923 0,348 0,332 (1) That is Provisions for impairment of customer loans and gains/(losses) on derecognition of loans and changes in expected cash flows. DINO Bank of Cyprus SJWN K 37#38UK operations • . BoC UK has a branch in North London and business centres in Central London, South London and Birmingham. Focuses on meeting the needs of entrepreneurs and owner-managed businesses and is primarily funded by retail deposits. Intends to grow its lending business to take advantage of its capital and liquidity position in order to improve its profitability. A new CEO was appointed in December 2015 to lead the Bank into the next phase of its development. Previously with Westpac, Western Australia, (General Manager for Retail and Business) and with Bank of Ireland UK (Post office j.v.) Gross loans and customer deposits (€ bn) 1,49 1,45 1,43 1,36 1,39 1,30 1,21 1,17 1,13 1,14 1,03 0,91 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 ■Gross loans Customer deposits Loans by sector as at 31 March 2016 20% 2% 1% ■Corporate ■ SMES 77% ■Consumer credit ■Housing DINO Bank of Cyprus 38#39Reduction in Overseas Non-Core Exposures Overseas non-core exposures (€ mn) 33% 1.365 1.233 1661 627 1.105 155 185 1.040 154 585 140 I 957 97 528 139 I 76 133 512 151 179 132 56 477 158 464 200 49 54 122 1 199 1 22 54 192 16 173 54 168 54 54 54 911 The non-core overseas exposures at 31 March 2016 were as follows: Greece: The net exposure comprised: (a) Net on-balance sheet exposures (excluding foreclosed properties) totalling €16 mn; (b) 640 foreclosed properties with a book value of €168 mn; (c) off-balance sheet exposures totalling €122 mn; and (d) lending exposures to Greek entities in the normal course of business in Cyprus totalling €87 mn, and lending exposures in Cyprus with collaterals in Greece totalling €71 mn. Romania: The overall net exposure is €274 mn Serbia: The overall net exposure is €54 mn Russia: Following the disposal of Uniastrum Bank and certain other Russian assets the remaining net exposure (on and off balance sheet) in Russia is €119 520 439 368 354 312 274 164 155 155 120 114 119 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 1 Greece other Greece net off balance sheet exposure ■Greece net on balance sheet exposure ■Serbia ■Russia: Net exposure Greece Foreclosed Properties ■Romania: Net Exposure mn (1) Lending exposures to Greek entities in the normal course of business in Cyprus and lending exposures in Cyprus with collaterals in Greece Bank of Cyprus 39 DINO#40Funding Structure Analysis of Liabilities and Equity (€ bn) Total equity 30,4 Other liabilities 29,4 28,6 ■ELA ECB funding ■Customer deposits 27,5 26,8 26,7 25,4 24,2 23,3 22,7 15,0 14,1 13,8 13,3 13,2 13,6 13,6 13,6 14,2 14,1 0,9 0,9 0,8 0,5 0,5 9,6 9,5 8,8 7,7 7,4 6,9 5,9 0.7 05 4,9 3,8 3,3 1,8 1,8 1,9 1,9 1,7 1,7 1,6 1,8 1,5 1,7 2,7 2,8 2,8 3,8 3,5 3,5 3,5 3,5 3,1 3,1 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec -15 Mar 16 Analysis of Liabilities and Equity (%) Total equity ■Other liabilities ■ELA ECB funding ■Customer deposits 49% 48% 48% 49% 49% 51% 54% 56% 61% 62% 5% 5% 5% 3% 3% 3% 2% 2% 3% 2% 31% 32% 31% 28% 28% 26% 23% 20% 16% 15% 6% 7% 7% 7% 7% 7% 7% 6% 6% 6% 9% 9% 10% 14% 13% 13% 14% 15% 13% 14% Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar 16 Bank of Cyprus ADING SJWN K 40#41Analysis of Deposits by Geography and by Type Deposits by geography 31 March 2016 (%) ■Cyprus non IBU ■UK Cyprus - IBU 1 Other countries 2 Total ■Cyprus non-IBU Cyprus IBU¹ ■ UK Other countries² (€ bn) 14,97 13,80 13,33 1,02 13,17 13,61 13,63 13,61 14,18 14,13 0,01 1,24 0,87 0,61 0,61 0,79 1,25 1,29 1:38 1,36 1,39 1,45 1,49 1,43 10.2% 4,05 3,59 3,46 3,47 3,57 3,21 3,40 3,75 3,68 26,0% 63,8% 8,66 8,09 7,79 7,85 8,07 8,42 8,76 8,94 9,01 Dec-13 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Total Cyprus 90% Deposits by type of deposits Total Time deposits Savings accounts ■Current & demand accounts 31 March 2016 (%) Time deposits Savings account Current and demand account 14,97 (€ bn) 13,80 13,33 13,17 13,61 13,63 13,61 14,18 14,13 3,49 3,72 0,93 3,96 4,33 4,48 4,47 4,63 4,99 4,97 0.95 0.84 0.96 0,97 1,02 1,01 1,03 1.01 35,2% 10,55 9,13 8,53 7,88 8,16 8,14 7,97 8,16 8,15 57,7 % 7,1% T Dec-13 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 De-15 Mar-16 (1) IBU- Division servicing exclusively international activity companies registered in Cyprus and abroad and non-residents (2) Other countries: Russia, Romania, Greece and Ukraine (until March 2014). Bank of Cyprus 41 DINO#42Analysis of Deposits by sector for Cyprus operations Deposits by sector as per CBC classification for Cyprus operations Total (€ bn) ■Households Non financial corporations Other financial corporations General Governments 31 March 2016 (%) Market Shares ■General Governments Other financial corporations ■Non financial corporations ■Households 0,13 0.16 0,12 ■Total market shares 0,99 0,13 0,12 0.16 0.12 0,13 1,17 1,11 0,87 0,75 0,13 0.14 1,33 0,80 1,37 1,53 1,20 35,9% 3,90 3,60 3,62 3,61 3,64 3,21 3,41 2,94 2,82 2,87 7,69 7,38 7,14 6,91 6,99 7,12 7,36 7,50 7,76 7,84 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 28,3% 28,2% 26,3% 17,2% Bank of Cyprus DINO 42#43(1) Up to 26 May 2016 Market Shares and Customer flows in Cyprus Market share evolution in Cyprus Deposits -Loans Cumulative Customer flows 2 (€ mn) Sep-13 27,9% 38,1% Dec-13 39,1% 27,5% Mar-14 26,4% 40,0% Jun-14 25,5% 39,5% Sep-14 24,9% 40,5% Dec-14 24,8% 38,8% Mar-15 25.3% 37,7% Jun-15 25,7% 38,5% Sep-15 26,5% 39,3% Dec-15 28,2% 37,9% Jan-16 28,2% 40,0% Feb-16 40.1% 27,9% Mar-16 28,2% 40,4% Total customer flows² per quarter (€ mn) 903 870 432 450 386 283 65 LL 379 423 -11 -411 -546 -2.227 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q151Q162Q16¹ (2) Customer flows are defined as the difference between changes in the stock of customer deposits and changes in the stock of gross customer loans, taking into account, among others, provisions, write offs, accrued interest, fair value adjustments and foreign exchange fluctuations. 1.200 900 600 300 0 -300 009- -900 -1.200 -1.500 -1.800 -2.100 -2.400 -2.700 -3.000 31/03/13 43 30/06/13 30/09/13 31/12/13 Bank of Cyprus KOINO KYMPI 31/03/14 30/06/14 30/09/14 31/12/14 31/03/15 30/06/15 30/09/15 31/12/15 31/03/16#44Gross loans by Geography and by Customer Type Gross loans by geography 31 March 2016 (%) Total (€ bn) Other countries ■ UK 24,74 23,77 24,09 23,93 1 1,11 1,91 22,86 0.91 1,66 1,74 22,59 1.03 1,13 1,61 21,85 1,14 0,75 0,72 1,21 1,17 0,70 21,72 21,20 21,32 21,19 20,98 20,66 19,98 ■Cyprus Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Gross loans by customer type Total (€ bn) ■Cyprus ■ UK Other countries 3,1% 5,4% 91,5 % 31 March 2016 (%) ■Corporate SME Retail Housing Retail Other 24,74 23,77 24,09 23,93 22,86 9,9% 22,59 21,85 ■Retail other 2,42 2,44 2,54 2,52 2,20 2,18 2,16 4,61 4,41 4,43 4,39 4,35 19,6% 4,31 Retail 4,28 49,2% Housing 5,54 5,09 5,02 4,99 4,75 4,68 4,65 SMES 21,3% ■Corporate 12,17 11,83 12,10 12,03 11,56 11,42 10,77 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 (1) Other countries: Russia, Greece and Romania Bank of Cyprus 44 DINO#45NPEs by Geography and by Customer Type NPEs by geography 31 March 2016 (%) Total (€ bn) Other countries 1 ■ UK 1 ■Cyprus ■ UK Other countries 14,96 15,17 14,81 14,22 1,20 13,97 1,10 0,11 13,33 0,10 1,12 0,08 0,65 0,07 0,64 0,06 0,63 4,7% 0,4% 13,75 13,86 13,59 13,49 13,26 12,64 94,9 ■Cyprus % Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 NPEs by customer type Total (€ bn) 31 March 2016 (%) ■Corporate ■Retail Housing SME ■Retail Other 14,96 15,17 14,81 14,22 13,97 ■Retail Other 13,33 1,45 1,49 1,51 1,36 1,37 ■Retail Housing 1,82 1,93 1,95 1,37 10,2% 1,98 1,97 1,97 ■SMES 3,53 3,57 3,60 14,8% 3,51 3,44 3,38 49,6% ■Corporate 25,4% 8,17 8,18 7,75 7,37 7,19 6,61 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Bank of Cyprus DINO 45 i (1) Other countries: Russia, Greece and Romania#46Asset Quality- 90+ DPD analysis (€ mn) Mar-16 Dec-15 Sept-15 Jun-15 Mar-15 A. Gross Loans after Fair value on Initial recognition 20.719 21.385 21.597 22.575 22.540 Fair value on Initial recognition 1.130 1.207 1.266 1.351 1.545 B. Gross Loans 21.849 22.592 22.863 23.926 24.085 B1. Loans with no arrears 10.551 10.443 9.925 10.178 10.038 B2. Loans with arrears but not impaired 2.901 3.049 3.611 4.105 4.627 Up to 30 DPD 623 469 585 668 662 31-90 DPD 386 351 355 435 596 91-180 DPD 133 144 200 227 344 + + + 181-365 DPD Over 1 year DPD 183 259 374 529 758 1.576 1.826 2.097 2.246 2.267 + B3. Impaired Loans 8.397 9.100 9.327 9.644 9.420 With no arrears Up to 30 DPD 31-90 DPD 91-180 DPD 860 876 848 969 1.006 36 78 66 91 68 57 24 60 121 275 49 65 152 167 181 181-365 DPD 157 310 464 489 445 Over 1 year DPD 7.238 7.747 7.737 7.807 7.445 (90+ DPD) 1 10.289 11.329 11.998 12.646 12.789 90+ DPD ratio (90 + DPD / Gross Loans) 47,1% 50,1% 52,5% 52,9% 53,1% Accumulated provisions 5.076 5.445 4.933 5.381 5.354 Gross loans provision coverage 23,2% 24,1% 21,6% 22,5% 22,2% 90+ DPD provision coverage 49,3% 48,1% 41,1% 42,5% 41,9% (1) Loans in arrears for more than 90 days (90+ DPD) are defined as loans past-due for more than 90 days and those that are impaired (impaired loans are those which are not considered fully collectable and for which a provision for impairment has been recognised on an individual basis or for which incurred losses exist at their initial recognition or customers in Debt Recovery). Bank of Cyprus 46 ADING SJWN K#47Asset Quality - NPEs analysis Cyprus Operations 31 March 2016 Gross Indexed capped Cumulative Provision Exposure MV of collateral Provisions coverage Total Coverage (capped MV) Total Coverage (capped MV) 31.03.16 31.12.15 5.095 3.717 2.724 53% 121% 121% Recoveries NPES with forbearance measures, no impairments, no 2.181 2.622 77 4% 93% 95% arrears NPES with forbearance measures, no impairments, < 90dpd Not specifically provided 643 732 17 3% 89% 89% 2.089 2.117 367 18% 93% 94% No arrears 177 231 6 3% 76% 77% 1-90 dpd 56 68 2 3% 80% 81% Over 90 dpd 1.856 1.819 360 19% 95% 96% 2.632 2.034 1.119 43% 113% 116% Specifically provided 786 599 279 36% 106% 115% No arrears 1-90 dpd 55 62 13 24% 115% 120% Over 90 dpd 1.791 1.373 826 46% 117% 116% Total NPES 12.640 11.223 4.304 34% 108% 110% 47#4890+ DPD by Geography 90+ DPD by Geography (€ bn) 1 ■Cyprus ■ UK ■ Other countries 12,98 12,79 12,65 12,65 1,12 1,09 1,15 12,00 1,08 0,26 0.09 0.11 0,09 0,65 11,33 0,08 0,63 0,07 10,29 0,63 0,06 11,60 11,47 11,53 11,48 11,27 10,63 9,60 Sep-14 Dec-14 Mar-15 Jun-15 (1) Other countries: Russia, Romania and Greece Sep-15 Dec-15 Mar-16 90+ DPD ratios by Geography ■Cyprus 1 ■ UK ■ Other countries 23% 53% 56% 54% 10% %99 11% 54% 54% 66% %8 87% 51% %9 87% 48% 5% 67% 54% 7% Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Bank of Cyprus 48 DINO 91%#49Analysis 90+ DPD ratios by Business Line¹ 90+ DPD by business line (€ bn) ■Corporate ■Consumer Credit ■RRD-SMEs ■SMES ■RRD-Major Corporations ■RRD-Recoveries corporates 12,79 12,65 ■Housing RRD-Corporates RRD-Recoveries SMEs & Retail 12,00 11,33 2,72 2,77 10,29 2,82 2,90 2,95 2,20 2,24 2,31 1,12 1,10 2,40 1,26 1,12 2,23 1,20 1,02 1,10 0,97 0,94 2,41 2,43 0,60 2,38 2,00 0,56 0,53 1,65 0,63 0,59 0,37 0,33 0,58 0,56 0,54 0,31 0,48 0,45 0,41 0,35 0.32 1,31 1,23 0,95 0,88 0,84 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 (1) As part of the restructuring of the Group, management is currently monitoring the loan portfolio of the Group using new business line definitions. An important component of the Group's new operational structure is the establishment of the RRD for the purposes of centralising and streamlining the management of its delinquent loans. Bank of Cyprus 49 DINO#50Improved Loan Quality for Top 20 Group Exposures - REMU related activity Top 20 group exposures 1 as at end of each quarter Gross Loans (€ bn) 90+ DPD €bn 90+DPD ratio Restructured loans ratio of Total Gross Loans Total coverage (Provisions & Collateral over Total Gross Loans) 110% 107% 107% 113% 115% 110% 78% 79% 79% 80% 72% 66% 64% 58% 52% 52% 53% 49% 3,51 2,74 3,42 2,71 3,39 2,69 3,21 2,56 3,15 2,25 3,02 1,99 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Real Estate Management Unit (REMU) as at 31 March 2016 REMU movement of 1Q2016 Cyprus • Top 20 group exposures¹ down by €0,3 bn (or 4%) qoq and by €0,7 bn (or 12%) yoy; 90+ DPD ratio was reduced to 66% at 31 March 2016, Total Coverage of the top 20 group exposures totalled 110% compared to 115% previous quarter Greece Other countries¹ Total Group • 37 516 Stock 1 January 2016 308 171 Additions 284 1 285 Disposals (48) (48) Impairment loss (4) (3) (7) Total Stock 31 March 2016 540 168 38 746 (1) Total Exposures include on balance sheet. Upon set up properties totalling €516 mn were transferred to REMU • During 1Q2016, REMU acquired €285 mn of assets via the execution of consensual debt to asset swaps. As at 31 March 2016, REMU has a total stock of properties of €746 mn Bank of Cyprus 50 DINO#51RRD - Important Actions Throughout the Organisation A results focused culture continues to be driven top down throughout the organisation via a number of important actions... Star chamber sessions RRD asset quality benefits tracking • • Department 'stretch' targets, focused on materially outperforming budget for all key asset quality metrics, are set at the outset of each quarter Stretch targets are supported by specifically identified and measurable actions Star chamber sessions are held by the CEO, GCRO and D-RRD with all departments fortnightly Performance continuously assessed with immediate corrective actions taken Quarterly asset quality 'stretch' targets embedded in a benefits tracker update daily - deal by deal granularity Provides continuous visibility on expected quarterly results, with 'gap' analysis identifying urgent action areas RRD weekly pipeline calls Daily monitoring of early arrears • Weekly pipeline calls are held by D-RRD with all team leaders across SME, Recoveries Retail/SME and Recoveries Corporate Provides visibility on weekly applications, approvals and deal executions over the entire 'small ticket' book and the strategically important large ticket Corporate Recoveries book Weekly 'promises' are closely monitored driving 'results focused' behavior across the book Risk lead a continuous review of early arrears and re-defaults across the book allowing issues to be identified early • Corrective actions immediately taken where relevant DINO Bank of Cyprus 51#5290+ DPD Fully Covered by Provisions & Tangible collateral 31 March 2016 Cyprus Gross Loans 90+ DPD Accumulated Provision € mn € mn provisions € mn coverage % FV of Tangible Total collateral collateral Coverage € mn¹ % % Provision coverage % operations 31 Dec 15 Tangible collateral % 31 Dec 15 Total Coverage % 31 Dec 15 Corporate 2.685 315 150 47% 186 59% 106% 53% 57% 110% SMEs 1.499 257 72 28% 195 76% 104% 26% 81% 107% Consumer 1.383 304 160 53% 144 47% 100% 52% 47% 99% Housing 3.605 452 119 27% 381 84% 111% 26% 84% 110% RRD 1.621 604 255 42% 441 73% 115% 38% 76% 114% Corporations RRD Major 2.726 1.618 780 48% 1.079 67% 115% 44% 74% 118% Corporations RRD- SMEs 1.349 940 231 24% 749 80% 104% 22% 80% 102% RRD Recoveries 2.177 2.177 1.272 58% 1.365 63% 121% 61% 62% 123% Corporate RRD Recoveries 1.529 1.528 806 53% 1.007 66% 119% 52% 67% 119% SMES RRD Recoveries 1.410 1.409 723 51% 869 62% 113% 48% 62% 110% Retail Total Cyprus 19.984 9.604 4.568 47% 6.416 67% 114% 46% 69% 115% (1) The fair value of the collateral is capped to the gross carrying value of the loans and advances to customers. DINO Bank of Cyprus 52#5390+ DPD Inflows in the Cyprus Operations have been Significantly Reduced 90+ DPD inflows - Cyprus operations (€ bn) 90+ DPD inflows - Average quarterly inflows 0,68 0,60 90+ DPD inflows - Corporate Loans (€ bn) Corporate 90+ DPD inflows -Average quarterly inflows 0,36 0,34 0,37 0,29 0,22 0,29 0,11 0,13 0,20 0,14 0,09 -0,16 0,02 0,02 3Q2014 4Q2014 1Q2105 2Q2105 3Q2105 4Q2015 1Q2016 3Q2014 4Q2014 1Q2105 2Q2105 3Q2105 4Q2015 1Q2016 90+ DPD inflows - SMEs Loans (€ bn) 90+ DPD inflows - Retail (€ bn) SMES 90+ DPD inflows Average quarterly inflows Retail 90+ DPD inflows Average quarterly inflows 0,22 0,17 0,13 0,11 0,10 0.08 0,09 0,07 0,08 -- 0,06 0,04 0,05 0,10 0,05- 0,06 0,12 3Q2014 4Q2014 1Q2105 2Q2105 3Q2105 4Q2015 1Q2016 3Q2014 4Q2014 1Q2105 2Q2105 3Q2105 4Q2015 1Q2016 Bank of Cyprus 53 DINO#54Performance of Restructured Loans Total Bank Cyprus - 88% 72% 7469 470-75% 65% 0% 67% Corporate 98% ■1Q2014 ■1Q2015 ■2Q2014 2Q2015 ■ 3Q2014 ■3Q2015 4Q2014 4Q2015 91% 87% 84% 85% 88% 76%85% No arrears SMES 4% 23% 14% 8%9% 18% 53% 9% 8% 16% 15% 1% ° 4% 5% 6% 7% 8% 7% 8% %6% °3% 0% 1-30 dpd 31-90 dpd Over 90 dpd No arrears Retail 87% 15% 0% 5%4%7% 5% %2% 10% 1-30 dpd Quarterly average 62% 0% 1% 2% 1% 4%1%2% 31-90 dpd 3% 10% 9% 1% 5% 9%9% 6% Over 90 dpd 76% 66% 59% 50%-520% 53% 43% 33% 23% 19% 17% 9% 17% 15% 7% 13% No arrears 1-30 dpd 3% 57% 63% 63066%70% 53% 56%7% 60% 84% 27% --20% 13% 11% 77% 15%% 7% 18% 10%% 5% 1% 31-90 dpd Over 90 dpd No arrears 12%1% 15% 188,3% 31%29% 2122% 18% 17% 15% 4% 5% 9% 9%9%87% 11%7%4% 4% 1% 31-90 dpd Over 90 dpd. 1-30 dpd An analysis performed as at 31 March 2016 indicates that on average 75% of the loans restructured post 31 December 2013 for Cyprus operations, have no arrears (restructurings performed in 1Q2016 were excluded); The average percentage of restructured loans with arrears more than 90 days stands at 8% Corporate restructured loans exhibit the . loans with no arrears of 98% best performance with an average percentage of restructured (1) The performance of loans restructured during 1Q2016 is not presented in this graph as it is too early to assess it. DINO Bank of Cyprus 54#5529% 27% 22% 21% 20% 2,20 4,53 4,59 4,38 4,29 4,15 Corporate SMES 2,14 1,83 1,78 90+ DPD ratios by business line ■31.03.15 30.06.15 30.09.15 31.12.15 ■31.03.16 Analysis of Loans and 90+ DPD ratios by Business Line¹ Gross loans by business line (€ bn) ■31.03.15 % of total 19% 30.06.15 8% 30.09.15 31.12.15 ■31.03.16 17% 6% 7% 13% 6% 10% 13% Housing Consumer Credit RRD-Mid Corporates RRD-Major Corporations 1,77 3,85 3,80 3,75 3,68 3,62 1,83 1,80 1,48 1,43 1.40 2,01 1,97 1,90 1,81 1,62 3,36 3,22 2,98 2,91 2,76 1,39 1,38 1,41 1,38 1,35 2,20 2,24 2,31 2,40 2,23 2,71 2,77 2.83 2,91 2,94 27% 26% 22% 20% 18% 16% 15% 14% 13% 12% 31% 30% 25% 23% 22% 63% 61% 58% 53% 37% 72% 75% Corporate SMES Housing Consumer Credit RRD-Mid Corporates RRD-Major Corporations RRD-SMES RRD-Recoveries corporates RRD-Recoveries SMEs and Retail % 08 69% (1) As part of the restructuring of the Group, management is currently monitoring the loan portfolio of the Group using new business line definitions. An important component of the Group's new operational structure is the establishment of the RRD for the purposes of centralising and streamlining the management of its delinquent loans. Bank of Cyprus 55 %09 81% RRD-SMES RRD-Recoveries corporates RRD-Recoveries SMEs and Retail 80% 79% 74% 70% 100% 100% 100% 100% 100% 100% DINO 100% 100% 100% 100%#56total % of 10% 4% 2,48 2,50 2,38 2,36 2,26 Analysis of Loans and 90+ DPD ratios by Economic Activity Gross loans by economic activity (€ bn) ■31.03.15 ■ 30.06.15 30.09.15 ■31.12.15 ■ 31.03.16 7% 18% 15% Trade Manufacturing Hotels & Restaurants Construction Real estate 90+ DPD ratios by economic activity 31.03.15 ■ 30.06.15 30.09.15 ■31.12.15 ■ 31.03.16 48% 48% 49% 48% 44% 54% 54% 54% 54% 49% 62% Trade Manufacturing 57% 0,91 0,92 0,85 0,83 0,82 1,57 1,64 1,62 1,57 1,47 4,04 4,19 4.14 4,07 3,92 3,17 3,20 3,38 3,42 3,32 7,92 7,86 7,41 7,33 7,25 1,89 2,07 1,84 1,79 1,64 2,09 1,55 1,24 1,21 1,17 %69 46% 38% 77% %08 79% 76% 33% 8% 5% Private Individuals Professional & other services Other sectors 68% 48% 48% 48% 47% 46% 38% 38% 36% 36% 35% 55% 57% 62% 57% Professional Hotels & Restaurants Construction Real estate Private Individuals Other & other services sectors 54% 67% 64% Bank of Cyprus 56 ONLOY 57% 56% 58%#5790+ DPD and Quarterly Change of 90+ DPD 90+ DPD (€bn) and Quarterly change of 90+ DPD (€ mn) Quarterly change of 90+ DPD (€ mn) -90+ DPD (€bn) 90+ DPD annual change 13,0 13,0 12,8 12,6 13,0 12,8 12,6 12,7 12,0 11,3 11,0 10,3 1,6 2,0 2,3 2,2 2,9 2,5 4,4 3,5 3,6 3,8 4,0 5,0 5,1 5,1 7,7 6,5 03-2009 06-2009 09-2009 12-2009 03-2010 06-2010 09-2010 12-2010 03-2011 06-2011 09-2011 12-2011 03-2012 06-2012 09-2012 12-2012 06-2013 09-2013 12-2013 03-2014 06-2014 09-2014 12-2014 03-2015 06-2015 09-2015 12-2015 03-2016 FY2009 €945 m n FY2010 €1.329 mn €1.399 mn €2.723 mn FY2011 FY2012 FY2013 €5.311 mn FY2014 -€350 m n FY2015 -€1.324 mn -85 321 380 329 265 410 558 96 232 156 402 609 100 64 1.319 1.240 3.319 1.972 -247 -164 -325 -143 -649 20 386 136 899- -1.041 (1) Information for 1Q2013 and 2Q2013 is not available as it has not been possible to publish the financial results for the three months ended 31 March 2013. Bank of Cyprus 57 ONLOY#58Rescheduled Loans for the Cyprus Operations Rescheduled Loans by customer type (€ bn) Retail housing Retail consumer ■SMES ■ Corporate Rescheduled Loans (€ bn) -752 8,4 8,2 8,4 8,3 1.482 7,4 1,7 1,7 1,7 8.392 1,7 5,7 1,5 0,6 0,6 0,6 0,6 0,5 1,3 1,8 1,7 1,7 1,7 1,5 0,4 1,1 3,9 4,3 4,2 4,4 4,3 2,9 31.12.14 31.03.15 30.06.15 30.09.15 31.12.15 31.03.16 43% 42% 45% 46% Rescheduled loans % gross loans¹ by customer type 31.12.14 31.03.15 30.06.15 30.09.15 31.12.15 31.03.16 29% 38% 24% Corporate SMES 34% 39% 38% 39% 40% 29% 34% 40% 40% 39% 40% 17% 22% 26% 26% 26% 28% Retail housing Retail Consumer -574 8.307 -241 Rescheduled Rescheduled Loans loans 31.12.2015 Already classified rescheduled Loans no longer Other adjustment classified rescheduled Rescheduled Loans 31.03.2016 (1.) Before fair value adjustment on initial recognition relating to loans acquired from Laiki Bank (difference between the outstanding contractual amount and the fair value of loans acquired) amounting to €1,130 mn for gross loans and to €534 mn for rescheduled loans (compared to €1,207 mn and €542 mn respectively at 31 December 2015), including loans of discontinued operations/disposal group held for sale. Bank of Cyprus 58 DINO#59Reconciliation of 90+ DPD to NPES Cyprus Operations (€ bn) (Mar-16) 8,7 ==== 0,1 0,8 0,4 12,6 1,8 0,7 0,1 9,6 €3 bn with arrears Impaired -no >90+DPD arrears other IFRS and Total 90+ DPD with forbearance re-forborne within forborne >30+ reclassification measure 90+ 2 years DPD adj Contagion effect NPES DPD Non-Performing Exposures (NPEs) as per the EBA definition: In 2014 the European Banking Authority (EBA) published its reporting standards on forbearance and non-performing exposures (NPEs). According to the EBA standards, a loan is considered a non-performing exposure if: - (i) the debtor 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, for example in case of a write off, a legal action against the borrower, or bankruptcy - (ii) the exposures are impaired i.e. in cases where there is a specific provision, or - (iii) there are material exposures which are more than 90 days past due, or - (iv) there are performing forborne exposures under probation for which additional forbearance measures are extended, or - (v) there are performing forborne exposures under probation that present more than 30 days past due within the probation period. -90+DPD: Loans in arrears for more than 90 days (90+ DPD) are defined as loans past-due for more than 90 days and those that are impaired (impaired loans are those which are not considered fully collectable and for which a provision for impairment has been recognised on an individual basis or for which incurred losses exist at their initial recognition or customers in Debt Recovery). Bank of Cyprus ADING 59#60Disclaimer Certain statements, beliefs and opinions in this presentation are forward-looking. Such statements can be generally identified by the use of terms such as “believes”, “expects”, “may”, “will”, “should”, “would”, “could”, “plans”, “anticipates” and comparable terms and the negatives of such terms. By their nature, forward-looking statements involve risks and uncertainties and assumptions about the Group that could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. We have based these forward- looking statements on our current expectations and projections about future events. Any statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Readers are cautioned not to place undue reliance on forward-looking statements, which are based on facts known to and/ or assumptions made by the Group only as of the date of this presentation. We assume no obligation to update such forward-looking statements or to update the reasons that actual results could differ materially from those anticipated in such forward-looking statements. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any security in any jurisdiction in the United States, to United States Domiciles or otherwise. Some of the information in the presentation is derived from publicly available information from sources such as the Central Bank of Cyprus, the Statistical Services of the Cyprus Ministry of Finance, the IMF, Bloomberg and Company Reports and the Bank makes no representation or warranty as to the accuracy of that information. The delivery of this presentation shall under no circumstances imply that there has been no change in the affairs of the Group or that the information set forth herein is complete or correct as of any date. This presentation shall not be used in connection with any investment decision regarding any of our securities, which should only be made based on expressly authorised materials from us identified as such, nor in connection with any decision whether or how to vote on any matter submitted to our stockholders. The securities issued by Bank of Cyprus Public Company Ltd have not been, and will not be, registered under the US Securities Act of 1933 ("the Securities Act"), or under the applicable securities laws of Canada, Australia or Japan. Bank of Cyprus 60 DINO JWN K