Bank of Cyprus Credit Ratings and Financial Position slide image

Bank of Cyprus Credit Ratings and Financial Position

Glossary & Definitions Non-legacy (performing) Phased-in Capital Conservation Buffer (CCB) NSFR OMV Operating profit p.p. Profit/(loss) after tax and before non- recurring items (attributable to the owners of the Company) Profit/(loss) after tax - organic (attributable to the owners of the Company) Pro forma for HFS (held for sale) Project Helix 3 Project Sinope Qoq Restructured loans Return on Tangible equity (ROTE) after tax and before non-recurring items Relates to all business lines excluding Restructuring and Recoveries Division ("RRD"), REMU and non-core overseas exposures. In accordance with the legislation in Cyprus which has been set for all credit institutions, the applicable rate of the CCB is 1.25% for 2017, 1.875% for 2018 and 2.5% for 2019 (fully phased-in). The NSFR is calculated as the amount of "available stable funding" (ASF) relative to the amount of "required stable funding" (RSF). The regulatory limit, enforced in June 2021, has been set at 100% as per the CRR II. Open Market Value. The operating profit comprises profit before Total loan credit losses, impairments and provisions (as defined), tax, (profit)/loss attributable to non-controlling interests and non-recurring items (as defined). percentage points. This refers to the profit or loss after tax (attributable to the owners of the Company), excluding any 'non-recurring items' (as defined). This refers to the profit or loss after tax (attributable to the owners of the Company), excluding any 'non-recurring items' (as defined, except for the ‘advisory and other restructuring costs - organic'). References to pro forma figures and ratios as at 30 September 2022 refer to Project Helix 3. Numbers on a pro forma basis are based on 30 September 2022 underlying basis figures and are adjusted for Project Helix 3 and assume its completion, currently expected to occur by the end of November 2022, which remains subject to customary regulatory and other approvals. Project Helix 3 refers to the agreement the Group reached in November 2021 for the sale of a portfolio of NPEs with gross book value of €551 mn, as well as real estate properties with book value of c. €88 mn as at 30 September 2022. Project Helix 3 was completed in November 2022. For further information please refer to section A.1.5 Loan portfolio quality of the Press release. Project Sinope refers to the agreement the Group reached in December 2021 for the sale of a portfolio of NPEs with gross book value of €12 mn as at 31 December 2021, as well as properties in Romania with carrying value €0.6 mn as at 31 December 2021. Project Sinope was completed in August 2022. Quarter on quarter change. Restructuring activity within quarter as recorded at each quarter end and includes restructurings of NPES, performing loans and re-restructurings. Return on Tangible Equity (ROTE) after tax and before non-recurring items is calculated as Profit/(loss) after tax and before non-recurring items (attributable to the owners of the Company) (as defined) (annualised), - (based on year to date days)), divided by the quarterly average of Shareholders' equity minus intangible assets at each quarter end. 71
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