Bank of Cyprus Credit Ratings and Financial Position
Buffer to MDA Restrictions Level & Distributable Items¹
CET1 Ratios
15.2%
498 bps
10.2%
CET1 ratio²
MDA threshold
31 Mar 2023
31 Mar 2023
CET1 ratio
CET1 min requirement
[ ] bps
Distance to MDA
•
· Significant CET1 MDA buffer as at 31 Mar 2023: 498 bps (€506mn)
.
Distributable items of €952 mn for BOCH as at 31 March 2023
•M-MDA3 buffer as at 31 Mar 2023: 588 bps (€598 mn)
⚫ BOCH fully utilises its AT1 and Tier 2 buckets as at 31 Mar 2023
•
No prohibition applies to the payment of coupons on any AT1 capital instruments issued by
the Company and the Bank
•
• Dividend distribution subject to regulatory approval as per 2022 SREP decision (previous
dividend distribution prohibition lifted)
1)
2)
3)
Distributable Items definition per CRR
Includes unaudited/unreviewed profits for 1Q2023 and for compliance with CRR an accrual for an estimated final dividend at a payout ratio of 30% of the Group's adjusted recurring profitability in line with the Group's approved dividend
policy. Any recommendation for a dividend is subject to regulatory approval
The SRMR2 introduces the Maximum Distributable Amount related to MREL (M-MDA). The SRB may set restrictions for banks that do not comply with the CBR, which under the new Banking Package is added on top of the MREL
requirements expressed in TREA, preventing them from distributing more than the M-MDA via various actions (including dividend payments on CET1, variable remuneration and payments on AT1 instruments). The M-MDA is calculated
against the binding interim requirement of 14.94%
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