Group Financial Results H1 2016

Costs under control Total expenses (€ mn) Staff costs ■Operating expenses 119 115 103 102 102 103 99 92 92 57 62 44 43 43 33 41 44 59 58 59 59 59 59 57 59 58 59 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 Cost to Income Ratio Group EU average 66% 63% 63% 61% 59% 60% 42% 40% 40% 37% 37% 38% 36% FY2014 1Q2015 1H2015 9M2015 FY2015 1Q2016 1H2016 (1) Based on EBA Risk Dashboard Report, Data as at 31 March 2016 • Total expenses in line with previous quarters Staff costs in line with previous quarters; Following the completion of the voluntary exit plan (VEP) during the first half of 2016, an annual saving of 12% of personnel expenses is expected Operating expenses for 2Q2016 in line with previous quarters • Cost to income ratio stable at 42% 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 Bank of Cyprus KOINO KYMPI 20

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