Group Financial Results H1 2016

1H2016 Financial Results - Highlights . Positive momentum continued in 2Q2016 Declining Problem Loans • Problem loans (90+ DPD) 1 down by €1 bn (or 10%) qoq and by €2 bn (or 18%) in 1H2016 • 90+ DPD ratio reduced to 44% and provisioning coverage ratio increased to 53% . Loan restructurings of €2,76 bn during 1H2016 Normalising Funding Structure ELA reduced by €2,3 bn year to date to €1,5 bn Customer deposits increased by €619 mn to 65% of total assets in 2Q2016 Ratio of Loans to Deposits (L/D) improved to 110% Strong Capital Position Profitable Quarter . • CET1 ratio (transitional basis) at 14,4% RWA intensity at 84% Conservative leverage ratio² of 13,0% Profit before provisions of €135 mn for 2Q2016 directed at increased provisions and impairment charges, to faster de-risk balance sheet Profit after tax of €6 mn for 2Q2016; €56 mn for 1H2016 Sustained NIM at 3,59% Strong Franchise in a recovering economy • Loans and deposit market shares increased to 41,4% and 29,0%, respectively Further support to the recovery of Cypriot economy with new lending of €547 mn of new loans were granted during the first seven months of the year Cypriot GDP growing by an annual 2,7% 3 for 2Q2016 (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) Leverage ratio = Tangible Total Equity over Total Assets 2 (3) Based on flash estimates published on 12 August 2016 by the Statistical Service of the Republic of Cyprus, seasonally adjusted KOINO KYMPI

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