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127

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114

Group Financial Results

for the six months ended 30 June 2018

Bank of Cyprus Group

28 Aug 2018

The financial information included in this presentation is neither reviewed nor audited by the Group’s external auditors.

The Interim Condensed Consolidated Financial Statements for the six months ended 30 June 2018 have not been audited by the Group’s external auditors.

The Group’s external auditors have conducted a review of the interim Condensed Consolidated Financial Statements in accordance with the International Standard on Review Engagements 2410

‘Review of Interim Financial Information performed by the Independent Auditor of the Entity’. They are presented in Euro (€) and all amounts are rounded as indicated. A comma is used to

separate thousands and a dot is used to separate decimals.

Important Notice Regarding Additional Information Contained in the Investor Presentation

The presentation for the Group Financial Results for the six months ended 30 June 2018 contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014.

The presentation for the Group Financial Results for the six months ended 30 June 2018 (the “Presentation”), available on http://www.bankofcyprus.com/en-GB/investor-relations-new/reports-

presentations/financial-results/ , includes additional financial information not presented within the Group Financial Results Press Release (the “Press Release”), primarily relating to (i) NPE

analysis (movements by segments geography and customer type), (ii) rescheduled loans analysis, (iii) details of historic restructuring activity including REMU activity, (iv) analysis of new lending,

(v) Income statement by business line, (vi) UK operations analysis, (vii) NIM and interest income analysis and (viii) Loan portfolio analysis in accordance with the three-stages model for

impairment of IFRS 9. Except in relation to any non-IFRS measure, the financial information contained in the Investor Presentation has been prepared in accordance with the Group’s significant

accounting policies as described in the Group’s Annual Financial Report 2017, and updated in the Mid-Year Financial Report 2018. The Presentation should be read in conjunction with the

information contained in the Press Release and neither the financial information in the Press Release nor in the Presentation constitute statutory financial statements prepared in accordance with

International Financial Reporting Standards.

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Pro forma2,5

Capital ratios

• CET 1 ratio7 at 14.0% pro forma

• Total Capital ratio at 15.4% pro forma, excluding impact of any AT1 issuance

Sale of

€2.7 bn NPEs

(Project Helix)

• Agreement for sale of gross loans of €2.8 bn, of which €2.7 bn Gross NPEs (contractual balance of c.€5.78 bn)

• Consideration of c. €1.4 bn, 24 cents on contractual and 48 cents on Gross Book Value

• Gross NPE ratio reduced by c.10 p.p.1,2

• Net NPEs reduced to €2.7 bn2,3 (-72%2,3 since peak), substantially covered by capital

• Capital accretive (+60 bps1,2 to CET1 and Total Capital Ratio)

• Including transaction costs, loss of €135 mn reported in 2Q2018, declining to €105 mn by y/e, as time value of money unwinds

• Intention to participate in a portion of debt tranches, with €450 mn, subject to regulatory approval

Sale of

BOC UK

• Binding agreement for sale of BOC UK announced in July, consideration of c.€117 mn, c.€3 mn profit on completion9

• Capital accretive (+75 bps to CET1 ratio and +70 bps to Total Capital Ratio)

• BOC UK4 has assets of €2 bn, gross loans of €1.8 bn, deposits of €1.9 bn and RWA of €1.0 bn

• In line with strategy of delivering value and focusing on supporting growth of the Cypriot economy

AT1 issuance • Currently in the process of finalising the terms with, and seeking binding commitments from, third party investors in respect of a

privately placed AT1 transaction of an anticipated size c. €200 mn, subject to market conditions6

Corporate Actions post 30 June 2018 delivering Value for Shareholders

2

Creating a Stronger, Safer and Cyprus focused Bank

(1) Pro forma data post sale of €2.7 bn NPEs (Helix)

(2) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no changes in capital or

provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

(3) Pro forma data post sale of €2.7 bn NPEs (Helix), combined with €435mn organic NPE reduction in 2Q2018

(4) Based on 30 June 2018 data

(5) Pro forma capital ratios for corporate actions (Helix, sale of BOC UK)

(6) There can be no assurance that an AT1 transaction will take place or, if it does, the terms on which it will be implemented

(7) Allowing for IFRS 9 transitional arrangements

(8) As at 31 March 2018

(9) Completion is subject to regulatory approval

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63%

43% 48%

38%

Dec2014

Jun2018

Jun2018

pro forma forUK sale

Jun2018

pro forma forHelix and UK

sale

12.6% 11.9%

14.0%

0,1%

(0.8%) 0.7%

1.4%

CET 130 Jun 2018pre Helix and

UK sale

UK sale Helix CET 130 Jun 2018as reported

UK sale Helix CET 1 30 June2018 pro forma

for Helix andUK sale

14.0%

15.4%

1.4%

CET 130 Jun 2018

pro forma for Helix andUK sale

Existing T2 Total Capital ratiopro forma for Helix and

UK sale

30.3

23.7 21.7

23.5

17.4 14.9

Dec2013

Jun2018

Jun2018

pro forma for Helixand UK sale

Total assets (€ bn) RWA (€ bn)

9.9

3.8 3.8 2.7

15.0

7.9 7.9

5.2

Dec2014

Jun2018

Jun2018

pro forma forUK sale

Jun2018

pro forma forHelix and UK

sale

Net NPEs (€ bn)

Impact of Corporate Actions on Key Metrics

3

c.€10 bn Gross NPE reduction since peak 25 p.p. reduction in NPE ratio since peak

CET1 ratio at 14.0%1,2,4 pro forma

-25 p.p.

Gross NPEs provision coverage

c.€9 bn balance sheet deleveraging since

2013

+60 bps

Total Capital ratio at 15.4%1,2 pro forma, excluding impact

of any AT1 issuance

-c.€10 bn

-c.€9 bn 34% 52% 52% 49%

3

(1) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no changes in capital or

provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

(2) Pro forma data for corporate actions (Helix, UK sale)

(3) The Bank is currently in the process of finalising the terms with, and acquiring binding commitments from, third party investors in respect of a privately placed AT1 transaction, subject to market conditions,

of an anticipated size c. €200 mn. There can be no assurance that an AT1 transaction will take place or, if it does, the terms on which it will be implemented

(4) Allowing for IFRS 9 transitional arrangements

Capital Impact RWA Impact

1 1 1

LLR(€ bn)

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1.6

0.6

0.2

0.3

0.1

2.8

Jun-18

8.3

5.2

(0.4)

(2.7)

31 March 2018 2Q2018 organicreduction

Helix 30 June 2018pro formafor Helix

Transformational €2.7 bn NPE Trade (Helix) Delivers Accelerated Risk Reduction

4

First sizeable Corporate and SME secured NPE sale in Cyprus (15% of Cyprus GDP)

• Sale of €2.8 bn gross loans, of which €2.7 bn NPEs to [x]

• Contractual balance of €5.7 bn2,3

• Consideration of c.€1.4 bn

• Coverage-Helix portfolio broadly in line with coverage of residual core NPEs

• Portfolio comprises 14,024 loans, corresponding to 9,065 properties

• Completion is subject to a number of Conditions Precedent (mainly

regulatory and other approvals), including the ECB agreeing to a Significant

Risk Transfer (“SRT”) benefit from the transaction

-€3.1 bn

Gross NPE reduction of €3.1 bn since 31 March 2018

Accelerated de-risking equivalent to six

quarters of organic NPE reduction

Gross NPE ratio improved by c. 10 p.p.1

Capital Accretive

(+60 bps1 to CET1 ratio & Total Capital ratio)

Core NPEs Retail SMEs Corporate

Non Core NPEs

Performing

€ bn

(1) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no changes in

capital or provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

(2) The difference between the contractual balance and the GBV relates to IFRS adjustments/unrecognised income and non-contractual write-offs. (3) As at 31 March 2018

€2.7 bn

NPEs

1

Helix Portfolio (€bn)

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30 June 2018

Assets sold € bn Receipts € bn

Contractual Loans1 5.71 Consideration 1.38

Gross Loans 2.81 of which:

of which NPEs 2.70 - Cash 0.93

Provisions Held (1.44) - Bonds 0.45

Other2 0.10 Transaction Costs and other

adjustments3 (0.05)

Carrying Value of assets being sold 1.47

Consideration net of

transaction costs and other

adjustments3

1.33

P/L Impact: (0.135)

5

Helix key highlights

(1) Based on Group Financial Results for the three months ended 31 March 2018

(2) DFAs and cash already received

(3) Includes c.€30mn relating to the time value of money that will unwind over 3Q2018 and 4Q2018

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1H2018 – Highlights

6

• Total income of €201 mn for 2Q2018 and operating profit of €89 mn for 2Q2018

• Profit after tax-organic of €44 mn, EPS-organic of 10 cents in 2Q2018

• Deposits increased by 2.4% qoq to €18.4 bn

• Significant liquidity surplus of €1.4 bn6

• Loan to deposit ratio at 77% and 68%4 pro forma

Organic

Performance in

1H2018

Strong Liquidity

Position

• Thirteen consecutive quarters of organic NPE reduction

• Gross NPEs reduced by €435 mn1 (5%) qoq to €7.9 bn

• NPE sale (Helix) further reduces Gross NPEs by €2.7 bn to €5.2 bn2,3

• Gross NPE ratio reduced to 43% and 38% pro forma for Helix (-10 p.p2,3) and UK sale (+5 p.p)

• Gross NPEs reduced by 65%2,3 and net NPEs reduced by 72%2,3 since peak

• NPE coverage 52% and 49% pro forma2,4

Significant

Progress on

Balance Sheet

Repair

(1) Includes €107 mn NPEs of Helix-related impact

(2) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no changes in capital or

provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

(3) Pro forma data for the sale of €2.7 bn NPEs (Helix), combined with €435 organic NPE reduction in 2Q2018

(4) Pro forma data for Helix and UK sale

(5) Allowing for IFRS 9 transitional arrangements

(6) The surplus relates to the Bank’s LCR add-on requirement adjusted to reflect the relaxed add-on weights applicable as from 1 July 2018

(7) There can be no assurance that an AT1 transaction will take place or, if it does, the terms on which it will be implemented `

• CET1 ratio at 11.9%5 and 14.0%2,4,5 pro forma; total improvement of c.140 bps2 from corporate actions

• Currently in the process of finalising the terms with, and seeking binding commitments from, third party investors in respect of

a privately placed AT1 transaction of an anticipated size c. €200 mn, subject to market conditions7

• Total Capital ratio at 13.4% and 15.4%2,4 pro forma excluding the impact of any AT1 issuance7

Adequate

Capital Position

Corporate actions

• Including transaction costs, Helix loss of €135 mn reported in 2Q2018, declining to €105 mn by y/e, as time value of money

unwinds

• Profit of c.€3 mn from the disposal of BOC UK on completion

• Loss after tax of €54 mn in 1H2018, post accounting for Helix in 1H2018

49

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Capital and Funding Position

7

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12.2

%

12

.7%

14.2

%

11.7

%

12.0

%

13.5

%

11.5

%

11.9

%

13.4

%

13.6

%

14.0

%

15.4

%

CET 1 fully loaded CET 1 ratio Total capital ratio

Dec 2017 Mar 2018 Jun 2018 Jun 2018 pro forma for Helix and UK sale

Continued reduction in RWA intensity

85% 85% 85% 83% 79%

76% 73% 77% 73%

69%

Dec 14 Dec 15 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Jun-18 Jun 18 proforma forHelix andUK sale

Strengthened Capital Position

8

(1) The CET1 FL ratio for 30 June 2018, including the full impact of IFRS 9 amounts to 10.0% and 11.9% pro forma for Helix and UK sale

(2) Transitional (phase-in adjustments of DTAs, and reserve movements)

(3) Pro forma data for corporate actions (Helix, UK sale)

(4) The Bank is currently in the process of finalising the terms with, and acquiring binding commitments from, third party investors in respect of a privately placed AT1 transaction, subject to market

conditions, of an anticipated size c. €200 mn. There can be no assurance that an AT1 transaction will take place or, if it does, the terms on which it will be implemented. The pro forma of 15.4% excludes

the impact of any AT1 issuance. There can be no assurance that an AT1 transaction will take place or, if it does, the terms on which it will be implemented.

(5) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no changes in capital or

provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

(6) Allowing for IFRS 9 transitional arrangements

12.875%

Evolution of Capital Ratios

9.375%

Early adoption of changes to

align EBA CRR definition with

NPE definition

CET1 ratio at 14.0%1,2,6 pro forma3,5 Total Capital ratio at 15.4%1,2 pro

forma3,5,excluding impact of any AT1 issuance

12.0% 12.6%

11.9%

14.0% 0.5%

(0.2%) 0.3% 0.1%

(0.8%) 0.7%

1.4%

CET 131 Mar 2018

Operatingprofitability

Provisionsand other

impairments

RWA CET 130 Jun 2018

pre Helixand UK sale

UK sale Helix CET 130 Jun 2018as reported

UK sale Helix CET 130 June2018 proforma for

Helix and UKsale

+60 bps

Capital Impact RWA Impact

14.0%

15.4% 1.4%

CET 130 Jun 2018

pro forma for Helixand UK sale

Existing T2 Total Capital ratiopro forma for Helix

and UK sale4

4 1,2,6 1

5

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114

Significant liquidity surplus of €1.4 bn1

9

(1) The surplus relates to the Bank’s LCR add-on requirement adjusted to reflect the relaxed add-on weights applicable as from 1 July 2018

(2) The local regulatory liquidity requirements set by the Central Bank of Cyprus (“CBC”) were abolished on 1 January 2018 and were replaced with a liquidity add-on requirement imposed on top of LCR in

the case of BOC PCL, which became effective on 1 January 2018. Full relaxation of LCR add-on is expected on 31 December 2018

(3) NSFR was not introduced on 1 January 2018, as opposed to what was expected. The NSFR is calculated as the amount of “available stable funding” (“ASF”) relative to the amount of “required stable

funding” (“RSF”), on the basis of Basel III standards. Its calculation is a SREP requirement. EBA is working on finalising the NSFR and enforcing it as a regulatory ratio.

(4) Origin is defined as the country of the passport of the Ultimately Beneficial Owner.

(5) Binding agreement signed in Jul-18 for the sale of BOC UK. http://www.bankofcyprus.com/globalassets/investor-relations/press-releases/eng/20180710-moonannouncement_eng_final.pdf

Liquidity ratio Minimum

required

30 Jun

2018 Surplus

NSFR3 100% 115% €2,489 mn

LCR (Group) 100% 199% €2,190 mn

LCR with add-on2

Group 100% 115% €563 mn

BOC PCL 100% 114% €537 mn

50% relaxation of LCR add-on rates implemented on 1 Jul 2018

LCR add-on: lower rates as from 1 July 2018

Group 100% 145% €1,377 mn

BOC PCL 100% 145% €1,350 mn

10.67 10.93 11.35 11.82 12.11 12.48

4.41 4.08 4.24

4.16 4.00 4.00

1.46 1.57

1.72 1.87 1.89

1.95 16.54 16.58

17.31 17.85 18.00

18.43

Mar 17 Jun 17 Sep 17 Dec 17 Mar-18 Jun-18

Cyprus non-IBU Cyprus IBU UK

63%

21%

4%

6% 6%

Cyprus

Other EU

Other European Countriesexcluding RussiaRussia

Other Countries

Cyprus deposits by

passport origin4

6% ytd increase in local deposits, offsets the 4% ytd reduction in IBU deposits

Group deposits €bn

5

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114

Group Loan Portfolio and Asset Quality

10

49

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127

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127

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153

204

191

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234

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114

c.€2.7 bn NPE sale boosts continued organic NPE reduction

10.50 10.50 9.88 8.93 8.47 8.47 8.94 8.46 7.78 7.62 7.62 7.7

4.97

0.72 (1.34) (0.95)

(0.46) 0.47

(0.48) (0.68) (0.16) 0.11

(2.76)

Dec 2016

Inflows Curing ofrestructuredloans andcollections

Write-offs Foreclosures Dec2017

Inflows Curing ofrestructuredloans andcollections

Write-offs Foreclosures Jun2018

Helixaccounting

relatedimpact in2Q2018

Helix June2018

pro formafor Helix

9.9 8.5

6.5 4.6 3.8 2.7

15.0 14.0

11.0

8.8 7.9

5.2

63% 62%

55%

47% 43%

38%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Dec2014

Dec2015

Dec2016

Dec2017

Jun2018

Jun2018 pro forma forHelix and UK sale

Net NPEs (€ bn) Gross NPE ratio LLR (€ bn)

11

Cyprus operations € bn

• €2.7 bn NPE sale improves

Gross NPE ratio by c.10

p.p.5

• UK sale reduces performing

loans by €1.8 bn; increases

NPE ratio by 5 p.p.

• 30 June NPE ratio at 38%

post Helix and UK sale5

NPE sale

of €2.7 bn

72% reduction of Net NPEs since peak (Dec 14)

Organic reduction continued in 2Q2018 broadly in line with guidance

(1) FY2017 inflows and curing of restructured loans and collections of NPEs include loans of €209 mn which exited NPE via curing in1Q2017 but then had to be re-included in 4Q2017 as NPE

waiting to exit due to technical parameters changes (previously restructured corporate exposures re-classified into NPEs during 4Q2017)

(2) Write offs in 1H2018 include a net impact of c.€11 mn of IFRS 9 grossing up and set offs

(3) Includes consensual (debt for asset swaps, DFAS) and non consensual foreclosures and debt for equity swaps

(4) Value of on boarded assets is set at a conservative 25%-30% discount from open market valuations, by two independent sources

(5) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no changes in capital or

provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

(6) Reclassification between gross loans and expected credit losses on loans and advances to customers classified as held for sale

2 1

1

-€2.03 bn -€0.85 bn

Group € bn

3,4 3,4

6

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114

0.14 0.09 0.08 0.05 0.06 0.09

0.09 0.12

0.06 0.04 0.04 0.02

0.27

0.04

0.22 0.17 0.19

0.22 0.23 0.21

0.13

0.36

0.14

0.33

2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018

Redefaults New inflows Unlikely to pay

(0.26) (0.23)

(0.58) (0.50) (0.40)

(0.29) (0.18) (0.17)

(0.34)

(0.38)

(0.19)

(0.16) (0.11)

(0.10) (0.09)

(0.16) (0.09)

(0.07)

(0.26)

(0.25)

(0.24)

(0.22) (0.25)

(0.19) (0.29) (0.39) (0.29)

(0.04)

(0.09)

(0.05)

(0.01)

-

(0.10) (0.07)

0.04

(0.01)

(0.94)

(0.76)

(1.03)

(0.84) (0.75)

(0.67) (0.70) (0.61) (0.71)

2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018

-1.03

-0.83

-0.63

-0.43

-0.23

-0.03

Curing of restructured loans DFAs & DFEs Write offs and non contractual write offs Other (Interest / Collections / Change in balances)

12

c.€0.7 bn NPE outflows in 2Q2018 leading to €435 mn organic NPE reduction

(1) Quarterly 2017 inflows and curing of restructured loans and collections of NPEs include loans of €209 mn which exited NPE via curing 1Q2017 but then had to be re-included in 4Q2017 as NPE waiting

to exit due to technical parameters changes (previously restructured corporate exposures re-classified into NPEs during 4Q2017)

Cyprus operations (€bn)

1 1

Outflows of NPEs on curing and exits (€ bn)

NPEs inflows (€ bn)

Adversely impacted by reclassification

into NPEs of €209 mn previously

restructured corporate exposures.

Impacted by a reclassification of a

Corporate Performing customer

Group of €150 mn

Cyprus operations (€bn)

49

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127

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127

0

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114

11.4

7.2 6.5

4.1

0.6

0.3 0.3

0.2

2.0

1.3 1.1

0.9

14.0

8.8 7.9

5.2

Dec-15 Dec-17 Jun-18 Jun-18pro forma for Helix and UK sale

Non Core NPEs (€ bn) Dec-15 Dec-16

Dec-17

After RRD

reorganisation2 Jun-18

Helix

& Sale of BOC

UK

June-18

Pro forma4

Corporate 1.5 1.2 0.9 0.7 (0.2) 0.5

SMEs 0.4 0.6 0.4 0.3 (0.1) 0.2

Retail 0.7 0.5 0.3 0.4 (0.0)3 0.4

Total Non Core NPEs 2.6 2.3 1.6 1.4 (0.3) 1.1

Core NPEs (€ bn)

Δ (organic)

since 2015

Corporate 5.7 3.8 3.0 2.5 (3.2) (1.6) 0.9

SMEs 3.1 2.6 1.7 1.7 (1.4) (0.6) 1.1

Retail 2.6 2.4 2.5 2.3 (0.3) (0.2) 2.1

Total Core NPEs 11.4 8.7 7.2 6.5 (4.9) (2.4) 4.1

Core NPEs 0.0

0.2 0.1 0.1

0.1

0.1 0.1

0.1

0.1

0.1

0.1

0.2

0.5 0.4

2018 2019 2020+

Corporate SME Retail No arrears but Impaired

Exit dates for non core NPEs

€1.1 bn NPEs with no arrears1

€ bn

(1) In pipeline to exit NPEs subject to meet all exit criteria; Until 31 March 2018, analysis was performed on an account basis. As at 30 June 2018, the analysis is performed on a customer basis

(2) An internal reorganisation of RRD took place in 4Q2017. €400 mn were transferred from SMEs to Corporate (€300 mn) and Retail (€100 mn).

(3) Including non-core retail NPEs of €11 mn relating to BOC UK disposed

(4) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no changes in capital or

provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

Core NPE risk at €4.1 bn4 down by 64% since 2015 and 57% covered

Non Core

NPEs

Core NPEs

% of Gross Loans

50%

36%

Provision coverage

38%

54%

8%

16%

30%

57%

Core NPEs

36%

58%

Core NPEs

Forborne

No impairment

No arrears1

NPEs

No arrears but

impaired

€ bn

13

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

1.8% 2.1% 2.0%

1.3% 1.4% 1.5% 1.1% 1.2%

0.9%

3.9%

2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018

Quarterly Cost of Risk - Group (excluding additional provisions in 2Q17)

Quarterly Cost of Risk - Group (including additional provisions in 2Q17)

Coverage & Collateral maintained post Helix

14

41%

48%

48%

52%

49%

68%

66%

67%

70%

69%

109%

114%

115%

122%

118%

Dec 16 Jun 17 Dec 17 Jun 18 Jun2018

pro forma forHelix and UK sale

Loan loss reserves Tangible Collateral

(1) Provisions for impairment of customer loans and gains/(losses) of derecognition of loans and changes in expected cash flows on acquired loans over average loans. Additional provisions of c. €500 mn

charged in 2Q2017 are included in the calculation of Cost of Risk but are not annualised

(2) Based on EBA Risk Dashboard as at 31 March 2018

(3) Restricted to Gross IFRS balance

(4) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no changes in capital or

provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

Quarterly CoR at 0.9% NPE total coverage at 122% when collateral included

NPE provision coverage remains above EU average post de-risking

Additional provisions

of c.€500 mn

1

3 1

66

%

66

%

66

%

61

%

60

%

59

%

58

%

55

%

52

%

51

%

50%

50

%

49

%

46

%

46

%

45

%

44

%

41

%

41

%

40

%

36

%

33

%

32%

31

%

30

%

29

%

29

%

28

%

26

%

26

%

22

%

PL HU RO CZ SI BG HR IT AT PT FR GR BOC CY BE ES SK LU NO DE LV IS* GB IE MT FI SE NL DK LT EE

30 June 2018

Pro forma for

Helix and UK sale

EU average2: 46%

4

4

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

0.9

0.9

1.4

0.9

1.1

Jun-18pro forma for Helix and UK sale

Clear strategy for residual NPEs

15

ESTIA

€0.9 bn1

Core NPEs3

€4.1 bn

Group NPEs (€ bn)

Non Core NPEs

€1.1 bn

Retail

Non-Estia eligible

SMEs

Non Core NPEs

• Expect €1.1 bn to exit NPEs in the forthcoming years (see slide 13)

• Monitoring redefaults & quality of restructurings

Corporate

Core NPEs - SMEs & Corporate

• Focus on write offs and realising collateral via consensual & non consensual foreclosures

• On board assets in REMU at conservative c.25%-30% discount to open market value (OMV)

• Continue to explore future structured sale solutions to further accelerate de-risking

Core NPEs-Retail, non-Estia eligible

• Additional focus of management on Retail, non Estia eligible, exposures

• Incremental servicing engine powered by external party (Pepper)

• New product range

Core NPEs-ESTIA

• Gov’t-led scheme1 announced in July aimed at addressing NPEs backed by primary residence

• Expected to address up to € 0.9 bn1 sticky Retail Core NPEs, subject to eligibility criteria and

participation rate

• Clear definition of socially protected borrowers, acting as enabler against strategic

defaulters

• Eligibility criteria relate primarily to the OMV of the residence, total income and net wealth of

household

• Eligible loans restructured to lower of contractual and OMV, and Govt to subsidise 1/3 of

instalment

Organic reduction Target for residual NPEs revised to c.€200 mn per quarter

Foreclosures

• Strengthening foreclosure team

• Foreclosure on strategic defaulters

5.2

(1) ESTIA-eligible portfolio refers to the potentially eligible portfolio based on the Bank’s available data. Further, eligibility will be assessed on an individual level and borrowers will be eligible if they apply

and meet the specific criteria of the Scheme as announced by the Government. The terms of the scheme are subject to finalisation.

(2) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no changes in capital or

provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

(3) Contractual balance as at 30 June 2018 of Core NPEs pro forma for Helix and UK sale is c.€6.2 bn.

2

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

16

Foreclosure

Law

Amendments approved aim to strength the foreclosure framework via:

Clarifying and limiting the reasons for setting aside the foreclosure process through court

Enhance auction routes

• Introduction of e-auctions

Reduce the time of re-possession

• Wait period reduced from 12 to 6 months from date of first unsuccessful auction

Sale of Loans

Law

Amendments approved aim to improve the law and close current gaps that hindered the use of the law via:

Improving the framework around transfer of rights and obligations to the buyer

• Regulating the transfer of rights, obligations, benefits, continuity of lawsuits etc between parties

• Splitting of collateral to cover disposed part of loan in case of cross-collateralisation of loans

• Transfer of collaterals to the name of the buyer without further costs

Other

changes

Tax legislation

Incentives to customers agreeing consensual solutions continue including exception of capital gains tax and transfer fees

in sale of property to banks

Additional exemption for sale of property directly to third party introduced

Insolvency framework

Changes aim to close gaps and enhance the participation and applicability of personal repayment schemes for physical

persons

Securitisation

Law

Easier for banks to securitise NPLs

Regulated by CBC

Service time of Notices

Servicing Time + 40 days

Auction

Property transfer &

Distribution of proceeds

1-50 days immediately after

auction

TIMEFRAME

Valuations

30-1151 days

TOTAL TIME UP TO AUCTION: ~ 8 MONTHS

Foreclosure

Decision

Service

Announcement

3-5 days + Servicing

Time + 30 days

Improved Legislative Framework1 supporting realisation and disposal of collateral

(1) Amendments to the Foreclosure Legislation, the Sale of Loans Law, the Insolvency framework and the introduction of the Securitisation Law came into effect on 13/7/2018

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

REMU sale agreements of €207 mn ytd1

€207 mn sales agreed ytd; REMU profit of €21 mn in 1H2018

17

Sales achieved on average well above Book Value

• 362 properties sold ytd,

representing c.13% of total REMU

properties

• SPAs signed for 33 additional

properties

• Encouraging trends on real estate

market

• Residential Property prices up 1.8%

yoy5

• Sale contracts (excluding DFAS) up

23% yoy6

• c.60% of properties sold ytd (in

value) relate to land

(1) As at 3 August 2018

(2) Amounts as per Sales purchase Agreements (SPAs)

(3) Proceeds after selling charges and other leakages

(4) Proceeds before selling charges and other leakages

(5) Based on Cyprus Central Bank report – Residential Prices Index, published 24 August 2018

(6) Based on data from Land of Registry – Sales contracts

Sales contract prices2 (€ mn)

Sales contract prices2 (€ mn)

252

171

43

36

Offers accepted In process

2

SPA in preparation SPA signed Sold

Total sale

agreements

€207 mn

171

101

28

21

21

Total Sales (YTD) Hotels Commercial Residential Land

99% 95% 86% 97% 103%

122% 110% 109% 127% 127%

Net Proceeds / BV Gross Proceeds / OMV 4 3

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

92 74 109 103 93 108 134 127 116

53 33

39 68 52 38 49 85

48

120 133

192

331

198

310 169

351

322 265

240

340

502

343

456

352

563

486

2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018

Consumer SME Corporate

0.3

0.3

0.4

0.5

0.6

0.8

1.4

Other

Real Estate

Industry

Public, education & health

Professional & admin

Construction

Tourism, trade and transport

New lending of € 1.3bn in 1H2018

18

1,049

260

Cyprus UK

9

19

30

57

68

70

103

130

Construction

Manufacturing

Real estate

Other Sectors

Hotels and restaurants

Professional and other services

Trade

Private individuals

New lending Cyprus (€ mn) – 2Q2018

Contribution to 2018Q1 real growth of GVA in p.p. (total 4.29%)

(1) http://www.bankofcyprus.com/globalassets/investor-relations/press-releases/eng/20180710-moonannouncement_eng_final.pdf

(2) 4Q2017, 1Q2018 and 2Q2018 include €90 mn, €64 mn and €81 mn housing loans respectively

42% yoy increase

Total New Lending of €1.0 bn in Cyprus in 1H2018 Tourism & Trade core sectors

New lending maps to core sectors driving GDP growth >97% of new lending in Cyprus since 2016 is performing

New Lending (Cyprus)

Binding agreement signed in

Jul-18 for the sale of BOC UK1

2 2 2

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

Operating Performance

19

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

9.9 10.0 10.2 10.4 10.5 8.7

7.2 5.6 4.4 4.0 3.8

2.5

17.1

15.6

14.6 14.4 14.3

11.2

4Q2015 4Q2016 4Q2017 1Q2018 2Q2018 2Q2018pro forma forHelix and UK

sale

Performing Legacy€ bn (pre FTP)

Legacy book interest income for 2Q2018 increased by €2 mn, mainly due to increased collections

Structural drivers:

• Curing of restructured loans, DFAS, cash collections of interest on delinquent exposures

• On a pro forma basis for Helix and UK sale, interest income on Legacy was €37 mn

Performing book interest decrease of €1 mn during 2Q2018

Structural drivers:

• Competition pressure on lending rates due to sustained low interest rate environment

• On a pro forma basis for Helix and UK sale, interest income on performing book was €86 mn

B

Balance sheet de-risking results in a smaller but safer loan book

20

111 107 113 108 108 103 101 101 100 86

106 96 91 87 92 77 69 62 64 37

217 203 204

195 200 180

170 163 164

123

2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 2Q2018 proforma forHelix andUK sale

Performing Legacy

B

A

€ mn (pre FTP)

A

Interest Income on Loans: Performing vs Legacy Net Loans: Performing vs Legacy

Interest Income on Loans broadly flat qoq (Pre Helix and UK sale)

(1) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations

assume no changes in capital or provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

1 1

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

1H2018

Of which

included

in Helix

and UK

1H2018

Of which

included

in Helix

and UK

1H2018

Of which

included

in Helix

and UK

Pro

fita

bil

ity

Interest Income on

loans (€ mn) (pre

FTP)

201 36 126 43 327 79

Provisions

(€ mn) (31) 0 (68) (26) (99) (26)

Interest Income net

of provisions (€ mn) 170 36 58 17 228 53

Cost of Risk 0.6% 0.0% 1.8% 1.8% 1.1% 1.1%

Effective Yield 3.88% 4.19% 6.25% 7.04% 4.55% 5.38%

Risk adjusted Yield 3.28% 4.21% 2.86% 2.79% 3.16% 3.61%

Cap

ital

&

ba

lan

ce

Sh

eet

Average Net Loans

(€ mn) 10,338 1,711 4,030 1,228 14,368 2,939

RWA Intensity 61% 53% 115% 132% 73% 81%

Performing Legacy Group

Risk adjusted yield will rise as Legacy book reduces

Corporate

IB, W&M

SME and Retail Banking

Insurance and Other incl H/O

UK Subsidiary

RRD

Overseas non core

REMU

21

• Performing Book is expected to

grow and to increasingly drive

Group results

• Legacy book revenues

predominantly driven by

provisioning unwinding (but

offset via provisions for neutral

P&L impact)

• As Legacy book reduces:

Group risk adjusted yield

expected to rise

Group Risk intensity

expected to fall supporting

CET1 ratio build

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

411 403 391 384

641 595 595

663

31 30 31 8

-95 -92 -87 -80

3Q2017 4Q2017 1Q2018 2Q2018

Performing Legacy

Liquids Cost of funding

NIM remains under pressure by otherwise individually positive actions as expected

50% 52% 52%

33% 26% 20%

17% 22%

28%

FY2016 FY2017 1H2018

Performing Legacy Liquids

0.08%

6.63%

3.84%

Effective yield

Liquidity build up

• Liquid assets1 increased qoq at €5.9 bn

• Effective yield of liquid assets in 2Q2018 was negatively affected by a

change in the mix of liquid assets and the increased volume of FX

Swaps

Balance sheet de-risking –smaller but safer loan book

• Higher-yielding, higher-risk legacy loans are reducing as we

successfully exit NPEs

Loan yields

• Legacy book yields are volatile affected by the timing of cash

collections

• Performing book yields are resilient at around 4% despite modest

market pressure

• Overall customer franchise stable qoq at 304 bps

Cost of funding

• Reduced to 80 bps, positively affected by the 10 bps reduction in cost

of deposits in Cyprus

10.0 10.2 10.5

5.6 4.4 3.8

3.2 5.5 5.9

3.4 3.5 3.5

22.2

23.6 23.7

Dec-16 Dec-17 Jun-18

Performing Legacy Liquids Non int-producing

257

NIM

AIEA

304 bps

performing

yield net of

funding

(bps)

22

Total Assets (€ bn) AIEA mix (% Total) Effective yield on assets & cost of funding

251 251 286

1) Cash, placements with banks, balances with central banks and bonds

2) Effective yield of liquid assets: Interest income on liquids after hedging, over average liquids (Cash and balances with central banks, placements with banks and bonds). Historical information has been

adjusted to take into account hedging

3) Effective yield of cost of funding: Interest expense of all interest bearing liabilities after hedging, over average interest bearing liabilities (customer deposits, funding from the central bank, interbank funding,

subordinated liabilities). Historical information has been adjusted to take into account hedging

1 1

€19.8 bn €19.3 bn €20.1 bn

2 3

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

48 43 45 45 47 41 43

9 10

15 14 11 12 13

4 9 1 12 5

19 2

16 15 16 14 22

35

18

77 77 77 85 85

107

76

4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018

Net FX gains/(losses) & Net gains/(losses) on other financial instruments, and other income

Gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties

Insurance income net of insurance claims

Net fee and commission income

20% 19% 19% 20% 22% 18%

% Net fee and commission

income % Total income

23

Non interest income of €76 mn in 2Q2018

• Recurring income of €56 mn for 2Q2018, up by 4% qoq, largely explained by seasonality

• Net fee and commission income accounts for 21% of total income for 2Q2018 compared to 18% the previous quarter

• Net gains2 amounted to €2 mn, compared to €19 mn for 1Q2017, which included net profit from the disposal of stock of properties of €11 mn

(REMU gains) and a valuation gain on reclassification of €8 mn. Net gains for 2Q2018 include an impairment of €6 mn, following the

classification of investment properties as a disposal group held for sale, in accordance with IFRS 5

• Net gains on other financial instruments3 of €18 mn for 2Q2018, compared to €35mn for 1Q2018 mainly due to the gains on disposal of

bonds during the 1Q2018 of €19 mn

1

Analysis of Non Interest Income (€ mn) – Quarterly

57 53 60

59 58

Recurring income

1) Excluding non-recurring fees of approximately €7 mn

2) Gains/(losses) from revaluation and disposal of investment properties and on disposal of stock of properties

3) Net FX gains/(losses) & Net gains/(losses) on other financial instruments, and other income

53 56

21%

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

238 235 246

233 237 223 214

231

201

355 335 337 333 338

286

257 251 251

100

150

200

250

300

350

2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018

Total income (€ bn) NIM (bps)

Focus on revenue generation and total income target

24

Total Income down by 13% qoq; NIM flat at 251bps

• Total Income of €201 mn for 2Q2018 compared to €231 mn for 1Q2018 that was positively affected by €19 mn non

recurring treasury gains from the sale of bonds

• On a pro forma basis for Helix and UK sale, Total income was €164 mn

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

42% 42% 41%

46% 46% 45% 47% 46%

51%

40% 40% 39% 41% 42% 43%

44% 43%

48%

1H2016 9M2016 FY2016 1Q2017 1H2017 9M2017 FY2017 1Q2018 1H2018

Cost to Income ratio

Cost to Income ratio excluding special levy on banks and SRF contibution

Total Expenses

25

59 54 53 54 57 57 60 58 58

37 38 40 41 44 43 43 41 49

96 92 93 95 101 100 103 99

107

2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018

Staff costs Other operating expenses

4.8 5.0 5.4 5.6 5.7 5.0 6.0 7.0 5.0

6.4

(6.4)

2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018

Special Levy SRF contibution

• Special levy and SRF contribution for 2Q2018 amounted to €5

mn compared to €7 mn for 1Q2018

Cost to Income Ratio (C/I ratio)

Total operating expenses (€ mn)

Special Levy and SRF contribution (€ mn)

• C/I ratio at 51% for 1H2018, compared to 46% for 1Q2018,

principally reflecting the qoq decrease in total income and the

increase in other operating expenses

• Staff costs flat at €58 mn in 2Q2018,at the same level as the

previous quarter

• Other operating expenses stood at €49 mn for 2Q2018,

increased by 20% from 1Q2018, mainly due to increased

advisory costs relating to compliance and stress tests, and to

project-related expenses by the UK subsidiary.

• Additional focus of management on improvement of

efficiency

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

€ mn 1H2018 1H2017 2Q2018 1Q2018 qoq % yoy%

Net Interest Income 249 316 125 124 1% -21%

Non interest income 183 154 76 107 -29% 19%

Total income 432 470 201 231 -13% -8%

Total expenses (218) (214) (112) (106) 5% 2%

Profit before provisions and impairments 214 256 89 125 -28% -16%

Loan loss provisions (99) (656) (41) (58) -29% -85%

Impairments of other financial and non financial

instruments (13) (36) (6) (7) -6% -63%

Provision for litigation and regulatory matters 5 (35) 7 (2) - -

Total Provisions and impairments (107) (727) (40) (67) -39% -85%

Profit/(loss) before tax and restructuring costs 111 (467) 52 59 -12% -

Profit/(loss) after tax and before restructuring

costs and before Helix 108 (540) 51 57 -9% -

Restructuring costs-Organic (15) (14) (7) (8) 1% 7%

Profit/(loss) after tax -Organic 93 (554) 44 49 -11% -

Restructuring costs relating to NPL sale (Helix)

(12) - (6) (6) - -

Loss relating to NPL sale (Helix1) (135) - (135) - - -

(Loss)/Profit after tax (54) (554) (97) 43 - -90%

Net interest margin 2.51% 3.37% 2.51% 2.51% - -87 bps

Cost-to-Income ratio 51% 46% 56% 46% 10 p.p. 5 p.p.

Cost-to-Income ratio adjusted for the special

levy and SRF contribution 48% 42% 53% 43% 10 p.p. 6 p.p.

Cost of Risk 1.1% 4.2%2 0.9% 1.2% -30 bps -3.1 p.p.

EPS-Organic (€ cent) 21 (124) 10 11 -1 145

Income Statement Review

1) Includes transactions costs and discounting

2) Additional provisions of c. €500 mn in 2Q2017 are included in the cost of risk for 1H2017 but are not annualised

Key Highlights

26

• Stable qoq NII at €125 mn

• Non-interest income for 2Q2018 at

€76 mn compared to €107 mn that

included non recurring treasury

gains of €29 mn, profit from REMU

sales of €11 mn and a valuation gain

of €8 mn

• Total expenses for 2Q2018 at €112

mn compared to €106 mn mainly

due to increased advisory costs

relating to compliance and stress

tests, and also to project-related

expenses by the UK subsidiary

• Additional focus of management

on improvement of efficiency

• Profit after tax from organic

operations for 2Q2018 of €44 mn,

equivalent to an organic

generation of EPS of 10 cents.

• Loss arising from project Helix of

€135 mn, which declines to

c.€105 mn by Y/E, as the time

value of money unwinds over Q3

and Q4 of 2018

• Loss after tax of €54 mn for

1H2018

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

Guidance

27

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

28

Guidance for FY2018

• Clear operating profit delivery in 1Q2018 and 2Q2018

• Impact of Helix and sale of UK Bank disclosed, but timing of completion is largely dependent

on approvals and remains uncertain

• Cost of Risk expected to be below 1%

Organic

profitability

• Organic NPE reduction expected to continue at a revised pace of c.€200 mn per quarter, as

portfolio size and business line mix change radically

• Pro forma capital strengthened due to corporate actions

Balance Sheet

Updated 2019 and Medium Term Guidance will be communicated with FY2018 FR

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

Guidance for FY2018

29

Asset Quality June-2018 Helix BOC UK

30.06.2018

pro forma1

for Helix and UK sale

Gross Loans 18.3 (2.8) (1.8) 13.7

NPEs 7.9 (2.7) (0.0) 5.2

NPE ratio 43% 38%

LLP 4.1 (1.6) 2.5

Net NPEs 3.8 2.7

Provision coverage 52% 49%

Accelerated de-risking

• E2.7bn or 34% reduction in gross NPEs

• E1.2bn or 31% reduction in net NPEs

• Provisions coverage remains adequate at 49%

• Organic NPE reduction expected to continue at at a revised

pace of c.€200 mn per quarter, as portfolio size and business

line mix changed radically

(1) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no changes in capital or

provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

Balance Sheet June-2018 Helix BOC UK

30.06.2018

pro forma1

for Helix and UK sale

Liquid Assets 6.1 1.3 (0.3) 7.1

Net Loans 14.2 (1.2) (1.8) 11.2

Total Assets 23.7 (2.0) 21.7

Deposits 18.4 (1.9) 16.5

IEA 20.2 18.1

L/D 77% 68%

Loans % Total Assets 60% 52%

Liquids/ Total Assets 26% 33%

Liquids % IEA 30% 39%

A more liquid balance sheet

• Loan to deposit ratio of 68% from 77%

• Loan/Assets decrease to 51% from 60%

• Liquid assets (cash, bank loans & securities) increased to

Eur7.2bn, representing 33% of assets and 39% of interest

earnings assets, and will weigh on net interest income and

NIM until redeployment into higher yielding assets

49

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127

127

127

0

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191

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191

203

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234

234

234

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97

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30

P/L outlook

• Clear operating profit delivery in 1Q2018 and 2Q2018

• Impact of Helix and sale of UK Bank disclosed, but

timing of completion is largely dependent on approvals

and remains uncertain

• Cost of Risk expected to be below 1%

• Additional focus of management on improvement of

efficiency

P/L 1H2018 Helix BOC UK

1H2018

pro forma1

for Helix and UK sale

Net Interest Income 249 47 23 179

Other Income 183 - 3 180

Total Income 432 47 26 359

Costs (218) - (21) (197)

Operating Profit 214 162

Provisions (107) (26) (81)

Profit before Tax

and restructuring

costs

111 21 5 85

Guidance for FY2018

(1) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no changes in capital or

provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

Capital Position June-2018 Helix BOC UK

30.06.2018

pro forma1

for Helix and UK sale

RWAs (€ bn) 17.4 (1.5) (1.0) 14.9

CET 1 (€ bn) 2.1 2.1

CET 1 ratio (%) 11.9% 14.0%

RWA intensity 73% 69%

Pro forma capital strengthened due to corporate actions

• RWA reduced by E2.5bn, or 14%

• Risk intensity reduced to 69% from 74%

• CET 1 uplift of 2% (1.8% including 2Q2018 hits)

Credit Ratings:

Standard & Poor’s Global Ratings:

Long-term issuer credit rating: Affirmed at B on 7 July 2018 (positive outlook)

Short-term issuer credit rating: Affirmed at B on 7 July 2018

Fitch Ratings:

Long-term Issuer Default Rating: Affirmed at “B-" on 29 March 2018 (stable outlook)

Short-term Issuer Default Rating: Affirmed at “B" on 29 March 2018

Viability Rating: Affirmed at “b-” on 29 March 2018

Moody’s Investors Service:

Baseline Credit Assessment: Upgraded to caa1 on 23 June 2017

Short-term deposit rating: Affirmed at "Not Prime" on 23 June 2017

Long-term deposit rating: Upgraded to Caa1 on 23 June 2017(positive outlook)

Counterparty Risk Assessment: Assigned at B1(cr) / Not-Prime (cr) on 23 June 2017

Listing:

LSE – BOCH, CSE – BOCH/ΤΡΚΗ, ISIN IE00BD5B1Y92

Visit our website at: www.bankofcyprus.com

Tel: +35722122239, Email: investors@bankofcyprus.com

Annita Pavlou Investor Relations Manager, Tel: +357 22 122740, Email: annita.pavlou@bankofcyprus.com

Elena Hadjikyriacou (elena.hadjikyriacou@bankofcyprus.com) Marina Ioannou (marina.ioannou@bankofcyprus.com)

Andri Rousou (andri.rousou@bankofcyprus.com)

Investor Relations

Contacts

Finance Director Eliza Livadiotou, Tel: +35722 122344, Email: eliza.livadiotou@bankofcyprus.com

Key Information and Contact Details

31

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127

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Appendix – Macroeconomic overview

32

49

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127

127

0

153

204

191

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230

234

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SOURCE: Statistical Service of Republic of Cyprus; Bloomberg;

1) All the above bonds are normalised against Germany Government bond with maturity 15/8/2025 except Greece

2) Due to the Debt swap of the Hellenic Republic, from November 2017 onwards data for the new Hellenic Republic Bond with maturity 30/01/2028 was used and normalised against the closest maturity of

German Government bond (DBR) 15/08/2027

33

Cyprus economy recovering strongly…

A2

Ba2

Ba1

Baa1

B3

Baa2

Ba1

Ba3

B2

Caa1

Caa3

A3

C

Baa2

Moody’s credit ratings Spreads (%)

3.5 3.9 4.0 3.9

1.3 0.3

-3.1

-5.9

-1.4

2.0

3.4 3.9 4.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

10

Q4

11

Q1

11

Q2

11

Q3

11

Q4

12

Q1

12

Q2

12

Q3

12

Q4

13

Q1

13

Q2

13

Q3

13

Q4

14

Q1

14

Q2

14

Q3

14

Q4

15

Q1

15

Q2

15

Q3

15

Q4

16

Q1

16

Q2

16

Q3

16

Q4

17

Q1

17

Q2

17

Q3

17

Q4

18

Q1

18

Q2

Real GDP Quarterly SA % change y-o-y Real GDP SA annualised % change y-o-y

400

358

384

15.8

13.0

11.4 10.3

9.4

8.4

340

350

360

370

380

390

400

410

420

430

440

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20

08

Q2

20

08

Q4

20

09

Q2

20

09

Q4

20

10

Q2

20

10

Q4

20

11

Q2

20

11

Q4

20

12

Q2

20

12

Q4

20

13

Q2

20

13

Q4

20

14

Q2

20

14

Q4

20

15

Q2

20

15

Q4

20

16

Q2

20

16

Q4

20

17

Q2

20

17

Q4

20

18

Q2

Employment in 000s (4Q average NSA (RHS) Unemployment rate SA (%)

GDP growth of 3.9% yoy in 2Q108 Unemployment rate dropped to 9.4% in Q1 & 8.4 in Q2, 2018 SA

Credit ratings improving faster than peers… …reflected in reduced government bond yields

0

0.2

0.4

0.6

0.8

1

1.2

No

v 2

015

De

c 2

015

Ja

n 2

01

6

Feb

20

16

Mar

20

16

Apr

20

16

May 2

01

6

Ju

n 2

01

6

Ju

l 20

16

Aug

2016

Sep

2016

Oct 20

16

No

v 2

016

De

c 2

016

Ja

n 2

01

7

Feb

20

17

Mar

20

17

Apr

20

17

May 2

01

7

Ju

n 2

01

7

Ju

l 20

17

Aug

2017

Sep

2017

Oct 20

17

No

v 2

017

De

c 2

017

Ja

n 2

01

8

Feb

20

18

Mar

20

18

Apr

20

18

May 2

01

8

Ju

n 2

01

8

Ju

l 20

18

Aug

2018

Cyprus - maturity 4/11/2025 Portugal - maturity 15/10/2025

Spain - maturity 31/10/2025 Italy - maturity 01/12/2025

Greece - maturity 30/01/2028

1 1

1 1

2

Dec 1

2

Ma

r 13

Jun

13

Se

p 1

3

Dec 1

3

Mar

14

Jun

14

Se

p 1

4

Dec 1

4

Ma

r 15

Jun

15

Se

p 1

5

Dec 1

5

Ma

r 16

Jun

16

Se

p 1

6

Dec 1

6

Ma

r 17

Jun

17

Se

p 1

7

Dec 1

7

Ma

r 18

Jun

18

Cyprus Portgual Italy

Spain Greece Ireland

49

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127

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127

0

153

204

191

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234

234

0

97

114

2.2 2.4 2.5 2.4 2.4

2.7

3.2

3.7

2.2 2.0

34 SOURCES: Statistical Service of Republic of Cyprus, Eurostat; Calculations by BOC Economic Research

… driven by tourism, professional services and construction activity

-60.0

-40.0

-20.0

0.0

20.0

40.0

60.0

20

06Q

1

20

06Q

3

20

07Q

1

20

07Q

3

20

08Q

1

20

08Q

3

20

09Q

1

20

09Q

3

20

10Q

1

20

10Q

3

20

11Q

1

20

11Q

3

20

12Q

1

20

12Q

3

20

13Q

1

20

13Q

3

20

14Q

1

20

14Q

3

20

15Q

1

20

15Q

3

20

16Q

1

20

16Q

3

20

17Q

1

20

17Q

3

20

18Q

1% changes year-on-year of yearly (4 quarter) moving averages (Building permits for 2018Q2 refer to period Feb-May)

Production index in construction Building permits volume

33.0%

30.0%

29.0%

25.0%

24.0%

21.0%

19.0%

12.5%

12.5%

Corporate tax rate (2018)

Double taxation

avoidance

treaties with more

than 60 countries

37.9%

39.0%

23.1%

Upper secondary

Less than

Upper secondary

Tertiary

Level of education 2017, age 15-64

Cyprus has the highest number of

university graduates in the population

in the EU after the UK and Ireland

Economic activity has been broadly based with

main drivers tourism and construction Tourism arrivals (mn) Tourism: % changes y-o-y

Construction activity – strong recovery Support from key business enablers

0.42 0.46 0.43

0.38

1.11 0.82

1.10

1.24 1.41

0.60

0.40 0.55 0.90

0.67 1.01 3.40

3.87

4.23

2016Y 2017Y 2018Q1

Contribution to growth of real GVA

Other services

Professional

Tour, trade, transp.

Constr.

Agri&Indu

Total GVA

8.9

19.8

14.6

9.6

4.4

11.9 11.7

4.3

2015 2016 2017 2018 Jan-Jul(Jan-Mayreceipts)

Total arrivals (% change) Total receipts (% change)

49

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35

Appendix-Helix additional information

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• The transaction intends to follow the below broad key steps:

• The portfolio will be transferred by the Bank of Cyprus (Seller) to a licensed Cypriot Credit Acquiring Company (“CyCAC”).

• The transfer is expected to take place pursuant to a court sanctioned Scheme of Arrangement

• The shares in the CyCAC will initially be held by the Seller before being transferred to the SPV (exact mechanics dependent on

Court approval)

• The SPV will issue senior and junior debt instruments in the form of unrated tranches. The Bank is intending to participate in a

portion of the senior debt tranche subject to regulatory approvals

• Buyer will invest by way of junior loan made to the SPV (currently anticipated to be incorporated in Luxembourg and being a

member of the purchasing group)

• Economically, investors will receive interests in a tranched unrated structure

• The CyCAC will borrow money from the SPV

36

BoC (Seller) CyCAC Owning the Portfolio- servicing function expected to be

carried out by CyCaC

Senior Debt

Junior Debt

Scheme of Arrangement

SPV

Buyer to subscribe for

junior tranche

Shar

es

Sin

gle

Tran

che

of

Deb

t Senior financing commitments

subject to conditions precedent

The structure is set out below

Helix- Legal structure

Key Steps and Diagram

49

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37

Helix- Conditions Precedent in current draft SPA

Helix conditions precedent`

Condition Precedent Description

Transfer of the Assets Transfer of the NPL Assets to the CyCAC in accordance with the Scheme of Arrangement (this is the arrangement as per

which the NPL Assets will be transferred by the Seller to CyCAC), subject to regulatory approval

Approval by Central Bank of Cyprus

(CBC)

The CBC having given notice that it has approved the acquisition of control by the Buyer over the CyCAC

Approval by European Central Bank

(ECB)

Confirmation from the European Central Bank that the Seller can recognise a significant credit risk reduction following the sale

of the Shares in CyCAC to the Buyer and the related financing

Approval by the Commission for the

Protection of Competition of Cyprus

(CPC)

The Commission for the Protection of Competition having given clearance to the acquisition of control by the Buyer over the

CyCAC

Closing Arrangements Set of closing obligations of each of the Seller and the Buyer

Transfer of tax losses The tax commissioner has provided approval that tax losses can be transferred to the CyCAC. The quantum of tax losses

transferred is not a condition to transfer. The Bank will separately give warranty comfort around the level of tax losses to be

transferred.

Note: Preliminary tax authority pre-approval of the reorganization plan subject to certain conditions and actions has already

been received.

Distributable reserves of CyCACs

The reduction in the share capital of the CyCAC to not more than EUR45,000,000. The share capital reduction is a court

approved process. The levels have been set to give significant headroom above current anticipated liabilities of the CyCAC.

Senior Financing The Buyer having entered into a Senior Facility Agreement (the SFA) of at least 65% of the purchase price.

To this effect, binding commitment letters and standard term sheets have been signed which include a MAC clause as follows:

the yield to maturity at which Republic of Cyprus’ 4.25% bonds due 2025 are trading not being 750 bps above the yield to

maturity at which Federal Republic of Germany’s 0.5% bonds due 2025 are trading for more than two consecutive weeks.

Pricing Adjustment

Prior to the completion, the conclusion of a reconciliation exercise to reconcile the property collateral included in the Bank’s valuation to which a positive value has been

ascribed and the sale and purchase agreements registered by the owner of the property and revealed by land registry searches. An expert will be appointed to conduct the

reconciliation. The findings of such reconciliation may result in certain downward adjustments to the purchase price. An accounting provision has been recorded in the

2Q2018 results to reflect the Bank’s current best estimate of this adjustment.

49

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Appendix – Additional asset quality slides

38

As from 1 January 2018 and following IFRS 9 implementation, the Bank’s disclosure in relation to the loan portfolio quality is based on Non Performing

Exposures (NPEs), in line with the EBA standards and ECB NPEs Guidance to the banks. Exposures that meet the NPE definition are considered to be

in default and hence credit-impaired and are classified in Stage 3 under IFRS 9 staging classification. Such loans are also considered to be in default for

credit risk management purposes.

49

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82%

64%

61%

74%

93%

62%

55%

78%

73%

70%

61%

66%

69%

75%

77%

73%

78%

72%

61%

69%

84%

75%

67%

80%

63%

70%

77%

73%

69%

75%

77%

73%

96%

83%

80%

87%

0%

20%

40%

60%

80%

100%

1 2 3 4

1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018

83%

70% 65%

75%

Weighted Average since Jan-16

1.50 1.26

0.68 0.53 0.42 0.56 0.24 0.31 0.27

0.16

0.4

0.3

0.2 0.2

0.2 0.2

0.2 0.3 0.4

0.3

0.3

0.4

0.2 0.2

0.1 0.1

0.1

0.2 0.1

0.1

2.2

2.0

1.1 0.9

0.7 0.9

0.5

0.8 0.8

0.5

1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018

Restructured loans Write offs & non contractual write offs DFAs

(1) Excluding write offs & non contractual write offs and DFAs and terminated accounts

(2) The performance of loans restructured during 2Q2018 is not presented in this graph as it is too early to assess

(3) Write offs in 1Q2018 include a net impact of (c.€11 mn) of IFRS 9 grossing up and set offs.

Restructuring efforts continue; re-default levels stable

39

Corporate SMEs Retail Total Bank – Cyprus

Quarterly evolution of restructuring activity (€ bn) (Cy operations)

Cohort analysis of restructured 1,2 loans; 75% of restructured loans present no arrears

3

NO ARREARS

49

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96 109 103 64

592

73 50 58 41

39% 40% 41% 42%

48% 49% 48% 51% 51%

0%

10%

20%

30%

40%

50%

60%

2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018

Quarterly Provisions for impairment of customer loans (€ mn) NPEs provision coverage

Adequacy of provisions with NPE provision coverage at 51%

40

Quarter

Gross Contractual

Balance

€ mn

Surplus/(Gap) in

provisions

€ mn

No. of Customers

1Q2015 6.0 1.4 148

2Q2015 79.2 16.0 242

3Q2015 20.2 0.0 441

4Q2015 65.7 -2.1 551

1Q2016 158.3 0.5 1,276

2Q2016 266.9 12.1 2,298

3Q2016 124.5 13.9 115

4Q2016 71.9 -1.1 2,343

1Q2017 119.2 1.1 2,194

2Q2017 200.9 7.5 2,369

3Q2017 75.7 7.8 1,081

4Q2017 137.6 1.8 498

1Q2018 71.7 -3.9 427

2Q2018 44.1 2.6 390

1,441.9 57.6 14,373

• Resolution of cases within provisions continued in 2Q2018

• Back-testing of c.14.4k fully settled customers over last 14

quarters on average within c.7% surplus over net book

value

NPE coverage at 51%

Back-testing of provisions supports past provision adequacy

49

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2.49

2.61

2.79

3.03

(0.12)

(0.22)

0.09

(0.05)

(0.57)

0.23 0.10

Jun 18 pro forma

Helix

Jun 18

Exits

Inflows

IFRS 9 adjustments

Dec 17

Exits

Inflows

Dec-16

Terminated Retail 1.20

Retail 1.29

Terminated SMEs 0.64

SME 0.63

Terminated Corporate

0.18

Corporate 1.03

Jun 2018pro forma

NPEs (Cy) €4.97 bn

1.27

1.27

2.04

2.04

2.17

2.00

2.00

2.00

2.96

2.96

(0.77)

0.20

0.07

0.17

(0.72)

0.16

(0.40)

Jun 18 pro forma

Helix

Jun 18

Exits

Inflows

IFRS 9 adjustments

Dec 17

Exits

Inflows

Dec-16

€1.21 bn

€1.27 bn

€2.49 bn

NPE ratio

1.21

2.97

3.68

4.51

(1.76)

(0.79)

0.31

(0.23)

(1.27)

0.14 0.30

Jun 18 pro forma

Helix

Jun 18

Exits

Inflows

IFRS 9 adjustments

Dec 17

Exits

Inflows

Dec 16

43%

NPE ratio 43%

Corporate

SME

Retail

NPE provision

coverage 49%

62%

NPE provision

coverage

Continuous progress across all segments

NPE total

coverage 120%

NPE total

coverage 121%

Focus shifts to Retail and SME after intense Corporate attention

39%

(1) Represents increase of the gross carrying amount on transition in line with IFRS 9 requirements net of non-contractual write offs executed during 1Q2018.

(2) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no changes in capital or

provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

transfers within business lines during 4Q2017

41

1

1

1

24%

42%

108%

Jun 2018

Jun 2018

pro forma

NPE ratio 62%

NPE provision

coverage 56%

NPE total

coverage 127%

51%

52%

123%

Jun 2018

Jun 2018

pro forma

42%

59%

120%

39%

Jun 2018

Jun 2018

pro forma

2

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18.27 18.06 17.69 17.41 16.81 16.48 16.22

13.47

1.30 1.44 1.43 1.51 1.62 1.76 1.82

0.03

0.56 0.51 0.38 0.33 0.32 0.35 0.27

0.21

20.13 20.01 19.50 19.25 18.75 18.59 18.31

13.71

Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Jun-18pro forma forHelix and UK

sale

Other countries UK Cyprus1

Total

(€ bn)

Gross loans by Geography and by Customer Type

88.6%

9.9%

1.5%

9.47 9.35 9.14 9.04 9.01 8.65 8.60 5.31

4.35 4.29 4.15 4.03 3.51 3.66 3.53

2.50

4.22 4.19 4.15 4.12 4.17 4.27 4.22

4.07

2.09 2.19 2.06 2.06 2.06 2.01 1.96

1.83

20.13 20.01 19.50 19.25 18.75 18.59 18.31

13.71

Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Jun-18pro forma forHelix and UK

saleRetail other Retail Housing SMEs Corporate

(€ bn)

Total

47.0%

19.3%

23.0%

10.7%

42

Gross loans by geography 30 June 2018 (%)

Gross loans by customer type 30 June 2018 (%)

1) Other countries: Greece, Russia and Romania

2) Reporting as at 31 December 2017 includes transfers within RRD business lines following an internal reorganisation of RRD in 4Q2017

3) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no changes in

capital or provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

2

3

3

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11.87 10.50 9.89 9.35 8.81 8.47 8.00 7.62

4.97

0.05

0.02 0.02

0.02 0.02 0.02

0.01 0.03

0.00

0.57 0.51

0.46 0.38 0.33 0.31 0.34

0.27

0.21

12.49

11.03 10.37

9.75 9.16 8.80 8.35 7.92

5.18

Jun-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Jun-18pro forma for

Helix andUK sale

Other countries UK Cyprus1

Total

1) Other countries: Greece, Russia and Romania

2) Reporting from 31 December 2017 includes transfers within RRD business lines following an internal reorganisation of RRD in 4Q2017

3) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no changes in capital

or provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

NPEs by Geography and by Customer Type

96.3%

0.3%

3.4%

40.9%

26.0%

19.0%

14.1%

5.98 5.00 4.53 4.13 3.81 3.99 3.41 3.24 1.41

3.25 2.99 2.88 2.70 2.54 2.02 2.18 2.06

1.28

1.93

1.77 1.72

1.69 1.61 1.57 1.59 1.50

1.49

1.33

1.27 1.24

1.23 1.20 1.22 1.17 1.12

1.00

12.49

11.03 10.37

9.75 9.16 8.80 8.35 7.92

5.18

Jun-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Jun-18pro forma for

Helix andUK sale

Retail Other Retail Housing SMEs Corporate

Total

43

30 June 2018 (%)

30 June 2018 (%)

NPEs by customer type (€bn)

2

3

3

NPEs by geography (€bn)

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

45%

50%

49%

42%

37%

45%

57%

52%

21%

32%

39%

39%

47%

55%

62%

59%

39%

46%

51%

47%

67%

66%

71%

66%

72%

73%

70%

71%

84%

83%

83%

83%

52%

54%

56%

57%

69%

69%

71%

71%

112%

116%

120%

108%

109%

118%

127%

123%

105%

115%

122%

122%

99%

109%

118%

116%

108%

115%

122%

118%

Dec2016

Dec2017

Jun2018

Jun2018pro

forma

Dec2016

Dec2017

Jun2018

Jun2018pro

forma

Dec2016

Dec2017

Jun2018

Jun2018pro

forma

Dec2016

Dec2017

Jun2018

Jun2018pro

forma

Dec2016

Dec2017

Jun2018

Jun2018pro

forma

Loan loss reserves Tangible Collateral

Total Cyprus Corporate SME Retail-Housing Retail-Other €1.2 bn €1.3 bn €1.5 bn €1.0 bn

Pro forma NPEs

1,3

NPE provision coverage and Total coverage by segment (Cy)

44

1) Pro forma data for transactions (Helix, sale of BOC UK)

2) Restricted to Gross IFRS balance

3) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no changes in capital or

provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

Coverage and collateral maintained post Helix

2

1,3

Reporting from 31 December 2017 includes transfers within RRD business lines following an internal reorganisation of RRD in 4Q2017

1,3 1,3 1,3

€5.0 bn

Cyprus operations

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

Asset Quality- NPEs analysis

(€ mn) Jun-18 Mar-18 Dec-17 Sep-17 Jun-17

A. Gross Loans after Fair value on Initial recognition 17,798 18,020 18,087 18,532 18,693

Fair value on Initial recognition 514 566 668 721 812

B. Gross Loans 18,312 18,586 18,755 19,253 19,505

B1. Loans with no arrears 10,097 9,922 9,565 9,645 9,537

B2. Loans with arrears but not NPEs 301 315 386 444 396

1-30 DPD 230 229 312 371 325

31-90 DPD 71 86 74 73 71

B3. NPEs 7,914 8,349 8,804 9,164 9,752

With no arrears 1,785 1,951 2,033 1,876 2,139

Up to 30 DPD 120 155 197 209 201

31-90 DPD 256 296 211 254 270

91-180 DPD 246 168 151 177 262

181-365 DPD 268 242 324 359 292

Over 1 year DPD 5,239 5,537 5,888 6,289 6,588

NPE ratio (NPEs / Gross Loans) 43% 45% 47% 48% 50%

Accumulated provisions (including fair value adjustment on

initial recognition1) 4,100 4,245 4,204 4,470 4,638

Gross loans provision coverage 22% 23% 22% 23% 24%

NPEs provision coverage 52% 51% 48% 49% 48%

45 1) Comprise (i) provisions for impairment of customer loans and advances, (ii) the fair value adjustment on initial recognition of loans acquired from Laiki Bank and on loans classified at FVPL,

and (iii) provisions for off-balance sheet exposures disclosed on the balance sheet within other liabilities.

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

14%

21%

20%

27%

72%

70%

84%

99%

100%

100%

12%

15%

17%

24%

68%

68%

83%

99%

100%

100%

12%

12%

16%

24%

69%

82%

82%

98%

100%

100%

12%

12%

15%

24%

72%

83%

83%

98%

100%

100%

14%

10%

14%

24%

79%

64%

84%

98%

100%

100%

Corporate SMEs Housing Consumer Credit RRD-MidCorporates

RRD-MajorCorporations

RRD-SMEs RRD-Retail RRD-Recoveriescorporates

RRD-RecoveriesSMEs and Retail

30.06.17 30.09.17 31.12.17 31.03.18 30.06.18

5.0

2

1.5

9

3.0

9

1.1

2

0.9

2

1.5

0

1.1

5

0.5

9 1

.71 2.8

1

5.0

9

1.5

1

3.0

2

1.1

2

0.8

5

1.4

6

1.1

8

0.6

7 1.6

4 2.7

1

5.1

7

1.4

7

3.0

8

1.1

0

0.7

8

1.3

3

1.0

9

0.6

6 1.7

3

2.3

4

5.4

8

1.4

7

3.1

4

1.1

1

0.7

4

1.2

1

1.0

5

0.6

6

1.2

2 2

.51

5.5

3

1.46

3.1

5

1.1

0

0.7

1

1.1

9

0.9

8

0.6

1

1.1

7 2

.41

Corporate SMEs Housing Consumer Credit RRD-MidCorporates

RRD-MajorCorporations

RRD-SMEs RRD-Retail RRD-Recoveriescorporates

RRD-RecoveriesSMEs and Retail

30.06.17 30.09.17 31.12.17 31.03.18 30.06.18% of total

1) Reporting as at 31 December 2017 includes transfers within RRD business lines following an internal reorganisation of RRD in 4Q2017

2) New business lines established in April 2017. RRD-Retail includes RRD Retail Housing and Retail Other

30% 8% 17% 4% 7% 5%

Analysis of Loans and NPEs ratios by Business Line

6% 7% 13%

46

3%

2

2

Gross loans by business line1 (€ bn)

NPEs ratios by business line1

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

49%

55%

38%

73%

36%

48%

54%

59%

45%

54%

34%

71%

34%

47%

51%

54%

45%

53%

32%

76%

33%

45%

52%

51%

43%

53%

27%

73%

31%

44%

51%

50%

50%

52%

27%

69%

31%

43%

43%

36%

Trade Manufacturing Hotels and Catering Construction Real estate Private individuals Professional andother services

Other sectors

30.06.17 30.09.17 31.12.17 31.03.18 30.06.18

Analysis of Loans and NPEs ratios by Economic Activity

47

2.1

4

0.6

9 1.5

2 2

.61

3.2

8

6.8

8

1.3

7

1.0

1 2

.12

0.6

8

1.4

5 2.5

0

3.2

4

6.8

3

1.3

3

1.1

0 2.0

4

0.6

6

1.3

9 2.3

4 3.2

0

6.7

7

1.3

1

1.0

4 2.0

2

0.6

8

1.4

0

2.1

1 3

.29

6.8

2

1.2

3

1.0

4 1.9

7

0.6

8

1.3

6

2.0

4 3

.26

6.7

2

1.3

9

0.8

9

Trade Manufacturing Hotels & Restaurant Construction Real Estate Private Individuals Professional andother services

Other sectors

30.06.17 30.09.17 31.12.17 31.03.18 30.06.18

18% 11% 37% 7% 5%

% of total

11% 7% 4%

Gross loans by economic activity (€ bn)

NPEs ratios by economic activity

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

Rescheduled Loans for the Cyprus Operations

3.4 3.2 3.2 3.0 3.0 2.7 2.5

1.7 1.6 1.6 1.6 1.3 1.3 1.3

0.6 0.6 0.5 0.6 0.6 0.5 0.5

1.7 1.7 1.6 1.5 1.4

1.4 1.3

7.4 7.1 6.9 6.7 6.3

5.9 5.6

31.12.16 31.03.17 30.06.17 30.09.17 31.12.17 31.03.18 30.06.18

Retail housing Retail consumer SMEs Corporate

1) Reporting as at 31 December 2017 includes transfers within RRD business lines following an internal reorganisation of RRD in 4Q2017

44%

41%

40%

27%

42%

41%

39%

26%

42%

42%

38%

27%

41%

42%

37%

26%

40%

40%

35%

27%

39%

38%

33%

27%

38%

38%

32%

27%

Corporate SMES Retail housing Retail Consumer

31.12.16 31.03.17 30.06.17 30.09.17 31.12.17 31.03.18 30.06.18

48

Rescheduled Loans1 by customer type (€ bn)

Rescheduled loans1 % gross loans by customer type

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

Rescheduled Loans – Asset Quality

49

€ ‘000 Cyprus Greece Russia United

Kingdom Romania Total

30 June 2018

Stage 1 611,232 - - - - 611,232

Stage 2 795,595 - - 3,995 57 799,647

Stage 3 3,392,600 3,419 64,218 6,405 12,833 3,479,475

POCI 487,802 - - - 1,098 488,900

FVPL 312,505 - - - - 312,505

Total 5,599,734 3,419 64,218 10,400 13,988 5,691,759

31 March 2018

Stage 1 607,047 - - - - 607,047

Stage 2 1,000,853 - - 4,235 61 1,005,149

Stage 3 3,499,989 3,370 68,933 5,345 14,355 3,591,992

POCI 501,117 - - - 1,466 502,583

FVPL 301,346 - - - - 301,346

Total 5,910,352 3,370 68,933 9,580 15,882 6,008,117

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

Gross loans and provisions by IFRS 92 stage

50

(1) Includes purchased or originated credit-impaired

(2) The Group’s IFRS 9 impact on transition is assessed to result in a decrease of shareholders’ equity of €308 mn and is primarily driven by credit impairment provisions. Allowing for IFRS 9 transitional

arrangements for regulatory capital purposes in line with European Union Regulation (2018: 5%, 2019: 15%, 2020: 30%, 2021: 50% and 2022: 75%).

(3) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no changes in capital or

provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

€bn

Gross Loans

30 Jun 2018

Provisions

30 Jun 2018

Gross Loans

30 Jun 2018 pro forma3 for Helix

and UK sale

Provisions

30 Jun 2018 pro forma3 for Helix

and UK sale

Stage 1 6.2 0.1 4.5 0.1

Stage 21 4.2 0.1 4.0 0.1

Stage 31 7.9 3.9 5.2 2.3

TOTAL 18.3 4.1 13.7 2.5

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

159 225 96 37 553 265 67 122

Residential Offices and other commercial properties Manufacturing and industrial Hotels Land and Plots Golf Under construction Greece and Romania

€ mn

Assets #

Total

1) Total stock as at 30 June 2018 excludes investment properties and investment properties held for sale

2) Assets in REMU on boarded at conservative prices c.25%-30% discount to open market value (OMV)

REMU – stock of properties

51

Cyprus: €1,402 mn

€1,524 mn

#2,753 #1320 #51 #527 #195 #3 #9 #60 #588

REMU focus now on sales (Group)

Property stock split as at 30 June 2018 – on boarded at conservative carrying value (Group)

1641

1524

220

Stock as at

01 Jan 2018

Impairment loss Transfer to

Investment Properties

Additions

(126)

Transfer to non-current

assets held for sale

Sales

(166)

(9) (39) 3

Foreign exchange and

other movements

Stock as at

30 Jun 2018

€ mn

BV

1,2

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

SOURCE: Central Bank of Cyprus, Cyprus Land Registry

REMU – the engine for dealing with foreclosed assets

52

48 46

16

56

110

40

64 60

55

71

13

1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 post2Q2018

139

25

19

16

79

Total Sales(2018 YTD)

Hotels Commercial Residential Land

Hotels Commercial Residential Land

2018 ytd3

€139 mn

Book Value sales by type (Group) Book Value Sales of €139 mn in 2018 (Group)

(1) 2Q2017 sales include a disposal of a property (€10 mn) which was classified in investment properties held for disposal

(2) 4Q2017 sales include a disposal of a property (€7.5 mn) which was classified in investment properties held for disposal

(3) As at 3 August 2018

1 2

Encouraging trends in Real Estate Market; Property prices up 1.8% in 2018Q1 yoy; Sale contracts (excl. DFAS) in 2018Jan-Jul up 23.4% yoy

12,664

21,245

3,767 4,527

4,952 7,063

8,734

5,366

0

5,000

10,000

15,000

20,000

25,000

30,000

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

Jan

-Jul

Sales to Cypriots Sales to Non-Cypriots

Sales contracts – Excluding DFAs

73.2 75.0

0.2 1.1 1.4 1.8

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

30.0

50.0

70.0

90.0

110.0

201

0Q1

201

0Q2

201

0Q3

201

0Q4

201

1Q1

201

1Q2

201

1Q3

201

1Q4

201

2Q1

201

2Q2

201

2Q3

201

2Q4

201

3Q1

201

3Q2

201

3Q3

201

3Q4

201

4Q1

201

4Q2

201

4Q3

201

4Q4

201

5Q1

201

5Q2

201

5Q3

201

5Q4

201

6Q1

201

6Q2

201

6Q3

201

6Q4

201

7Q1

201

7Q2

201

7Q3

201

7Q4

201

8Q1

Central Bank Residential Property Price index

Residential Propert Price index (2010Q1=100) % change y-o-y (RHS)

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114 Loans and advances to customers

30 Jun 2018

(€ mn)

Cash 383

Securities 271

Letters of credit / guarantee 244

Property 21,052

Other 921

Surplus collateral (10,402)

Net collateral 12,469

Fair value of collateral and credit enhancements held by the Group

53

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

2.7 3.0

2.1 1.7

2.4 2.5

0.3 0.3

1.3 1.3

8.8 8.8

Dec-17 before

RRD reorganisation

Dec-17after

RRD reorganisation

Movement of NPEs

within RRD

Movement of NPEs within business lines following RRD reorganisation

54

Group NPEs

Forborne

No impairments

No arrears1

Retail NPEs

SMEs NPEs

Corporate NPEs

No arrears but

impaired NPEs

Total € bn

€+0.1 mn

€-0.4 mn

€+0.3 mn

4Q2017

Reporting as from 31 December 2017 includes transfers within RRD business lines following an internal reorganisation of RRD in 4Q2017

(1) In pipeline to exit NPEs subject to meet all exit criteria; Until 31 March 2018, analysis was performed on an account basis. As at 30 June 2018, the analysis is performed on a customer basis.

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

Appendix – Additional financial information

55

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

Assets (€ mn)

%

change 31.12.17 30.06.18

Cash and balances with

Central Banks 23% 3,394 4,163

Loans and advances to

banks -33% 1,193 804

Debt securities, treasury bills

and equity investments -2% 1,121 1,103

Net loans and advances to

customers -11% 14,602 13,001

Stock of property -7% 1,641 1,524

Other assets 0% 1,641 1,635

Non current assets and

disposal groups classified as

held for sale

- 7 1,451

Total assets 0% 23,599 23,681

Liability and Equity (€ mn)

%

change 31.12.17 30.06.18

Deposits by banks 3% 495 512

Funding from central banks -11% 930 830

Repurchase agreements -4% 257 248

Customer deposits 3% 17,850 18,431

Subordinated loan stock -4% 302 292

Other liabilities -2% 1,148 1,125

Total liabilities 2% 20,982 21,438

Shareholders’ equity -15% 2,586 2,198

Non controlling interests 46% 31 45

Total equity -14% 2,617 2,243

Total liabilities and equity 0% 23,599 23,681

Consolidated Balance Sheet

56

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

Consolidated Balance Sheet – ignoring classification of Helix as Held for Sale

Assets (€ mn)

%

change 31.12.17 30.06.18

Cash and balances with

Central Banks 23% 3,394 4,163

Loans and advances to

banks -33% 1,193 804

Debt securities, treasury bills

and equity investments -2% 1,121 1,103

Net loans and advances to

customers -2% 14,602 14,240

Stock of property -5% 1,641 1,563

Other assets 0% 1,641 1,635

Non current assets and

disposal groups classified as

held for sale

- 7 173

Total assets 0% 23,599 23,681

Liability and Equity (€ mn)

%

change 31.12.17 30.06.18

Deposits by banks 3% 495 512

Funding from central banks -11% 930 830

Repurchase agreements -4% 257 248

Customer deposits 3% 17,850 18,431

Subordinated loan stock -4% 302 292

Other liabilities -2% 1,148 1,125

Total liabilities 2% 20,982 21,438

Shareholders’ equity -15% 2,586 2,198

Non controlling interests 46% 31 45

Total equity -14% 2,617 2,243

Total liabilities and equity 0% 23,599 23,681

57

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

334

286 260 255

253

2Q2017 3Q2017 4Q2017 1Q2018 2Q2018

39.4% 39.1% 38.7% 39.5% 39.2%

37.4%

37.5% 37.1% 36.7% 37.5% 37.1%

38.6%

31.1% 30.8% 31.3% 32.3%

32.8%

34.1% 35.1%

Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Jun 18

Loans Loans new basis Deposits

Core Cypriot business

58

(1) Cost to Income ratio includes the special levy and the SRF contribution and excludes the provisions for pending litigation

(2) The market shares on loans has been affected following the change in the basis of calculation of the gross carrying value which in turn has been affected by IFRS 9 and the increased non-contractual

write-offs during 1Q2018.

1

29.5% 29.5% 30.1% 30.9% 31.5%

33.2% 34.1%

35.8% 34.5%

35.3% 36.8% 37.3% 37.1%

38.8%

Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Jun 18

Residents Non-residents

39% 43% 43% 43%

52%

FY2016 1H2017 FY2017 1Q2018 1H2018

(bps)

67% 61% 58% 52% 61%

19% 21% 22%

18%

22%

14% 18% 20% 30%

17%

2Q2017 3Q2017 4Q2017 1Q2018 2Q2018

Other income

Net fee and commission income

Net interest income

% of total income

1

Market shares2 Strong market shares in resident and non-resident deposits

NIM in Cyprus operations Cost to Income ratio1 for Cyprus

operations

Improving net fee and commission

income as a % of revenues

2

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

€ mn Underlying basis Reclassification Statutory Basis

Net interest income 249 - 249

Net fee and commission income 84 84

Net foreign exchange gains and net gains on other financial instruments and disposal/dissolution of

subsidiaries and associates 42 14 56

Insurance income net of claims and commissions 25 25

Net gains from revaluation and disposal of investment properties and on disposal of stock of

properties 21 21

Other income 11 11

Total income 432 14 446

Total expenses (218) (22) (240)

Operating profit 214 (8) 206

Provisions charge (99) (149) (248)

Impairments of other financial and non-financial instruments (13) - (13)

Reversal of provisions for litigation and regulatory matters 5 (5) -

Share of profit from associates and joint ventures 4 - 4

Profit before tax and restructuring costs 111 (162) (51)

Tax (5) - (5)

Loss attributable to non-controlling interests 2 - 2

Profit after tax and before restructuring costs and before Helix 108 (162) (54)

Advisory and other restructuring costs – excluding Helix (15) 15 -

Profit after tax – Organic 93 (147) (54)

Restructuring costs – Helix (12) 12 -

Loss from Helix (135) 135 -

Loss after tax (attributable to the owners of the Company) (54) - (54)

Income Statement bridge1 for 1H2018

(1) The reclassification differences between the underlying and statutory bases relate to: €14 mn relating to the fair value gain on loans and advances to customers of FVPL disclosed within net gains on other

financial instruments on the statutory basis, and within net gains on derecognition of financial assets measured at amortised cost included in the provisions charge on the underlying basis. The remaining

difference of €135 mn in the provisions charge relates to the loss arising from Helix. Additionally, there are expenses of €22 mn (€5 mn relate to a (Reversal) of provisions for litigation and regulatory

matters and €27 mn relate to advisory and other restructuring costs, of which €15 mn relate to organic operations and €12 mn relate to Helix), which are monitored below the operating profit for

management reporting purposes.

59

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

Analysis of Interest Income and Interest Expense

60

Analysis of Interest Income 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018

Loans and advances to customers 195 200 180 170 163 164

Loans and advances to banks and central banks 3 2 3 3 4 1

Investments available-for-sale 4 5 5 6 - -

Investment at amortised costs - - - - 0 1

Investments FVOCI - - - - 5 5

Investments classified as loans and receivables 1 1 1 0 - -

203 208 189 179 172 171

Trading Investment - - - 0 0 -

Derivative financial instruments 6 8 8 9 9 9

Other investments at fair value through profit or loss 0 0 - - - -

Total Interest Income 209 216 197 188 181 180

Analysis of Interest Expense 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018

Customer deposits (35) (35) (36) (35) (33) (30)

Funding from central banks and deposits by banks (1) (1) (1) (2) (2) (2)

Subordinated loan stock (5) (6) (6) (6) (6) (6)

Repurchase agreements (2) (2) (2) (2) (2) (3)

Negative interest on loans and advances to banks and central

banks (1) (1) (2) (3) (3) (3)

(44) (45) (47) (48) (46) (44)

Derivative financial instruments (9) (11) (12) (12) (11) (11)

Total Interest Expense (53) (56) (59) (60) (57) (55)

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

€ mn Consumer

Banking

SME

Banking

Corporate

Banking

International

Banking

Wealth &

Markets RRD REMU Insurance Treasury Other

Total

Cyprus

Net interest income 95 20 49 27 4 42 (8) 0 7 (4) 232

Net fee & commission income 23 5 8 32 1 5 0 (3) 1 8 80

Other income 2 0 1 3 2 0 25 24 31 9 97

Total income 120 25 58 62 7 47 17 21 39 13 409

Total expenses (90) (9) (14) (22) (4) (31) (4) (9) (5) (5) (193)

Profit/(loss) before provisions and

impairments 30 16 44 40 3 16 13 12 34 8 216

Provisions for impairment of customer

loans net of gains/(losses) on

derecognition of loans and changes in

expected cash flows

(16) (9) (13) (7) (3) (198) - - - (2) (248)

Impairment of other financial and non

financial instruments - - - - - - (8) - (1) (3) (12)

Provision for litigation and regulatory

matters - - - - - - - - - 6 6

Share of profits from associates - - - - - - - - - 5 5

Profit/(loss) before tax 14 7 31 33 0 (182) 5 12 33 14 (33)

Tax (2) (1) (4) (4) 0 20 0 (1) (4) (7) (3)

Profit attributable to non controlling

interest - - - - - - - - - 1 1

Profit/(loss) after tax and before one

off items 12 6 27 29 0 (162) 5 11 29 8 (35)

Cyprus: Income Statement by business line for 1H2018

61

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

Risk Weighted Assets

62

(1) Other countries primarily relates to exposures in Serbia

(2) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no changes

in capital or provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

€ mn) 30.06.17 30.09.17 31.12.17 31.03.18 30.06.18 Helix BOC UK

30.06.2018

pro forma

for Helix and UK sale2

Cyprus 16,128 16,098 16,011 16,711 16,051 (1,460) 14,591

Russia 32 30 27 25 23 23

United Kingdom 869 842 922 989 1,051 (1,018) 33

Romania 129 94 118 65 77 77

Greece 193 191 168 158 153 153

Other1 17 18 14 13 13 13

Total RWA 17,368 17,273 17,260 17,961 17,368 (1,460) (1,018) 14,890

RWA intensity(%) 79% 76% 73% 77% 73% 69%

Risk weighted assets by Geography

Risk weighted assets by type of risk

€ mn) 30.06.17 30.09.17 31.12.17 31.03.18 30.06.18 Helix BOC UK

30.06.2018

pro forma

for Helix and UK sale2

Credit Risk 15,474 15,379 15,538 16,242 15,649 (1,268) (955) 13,426

Market Risk 5 5 5 2 2 - - 2

Operational Risk 1,889 1,889 1,717 1,717 1,717 (192) (63) 1,462

Total 17,368 17,273 17,260 17,961 17,368 (1,460) (1,018) 14,890

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

€ mn 30.06.18

Group Equity per financial statements 2,243

Less: Intangibles and other deductions (36)

Less: Deconsolidation of insurance and other entities (234)

Less: Regulatory adjustments (DTA, IFRS 9 and other items) 107

Less: Revaluation reserves and other unrealised items transferred to Tier II (20)

CET 1 (transitional) 2,060

Less: Adjustments to fully loaded (mainly DTA) (65)

CET 1 (fully loaded)2 1,995

Risk Weighted Assets 17,368

CET 1 ratio (fully loaded)2 11.5%

CET 1 ratio (transitional) 11.9%

Regulatory Capital

€ mn) 30.06.17 30.09.17 31.12.17 31.03.18 30.06.18

Shareholders’ equity 2,543 2,562 2,586 2,298 2,243

CET1 capital 2,142 2,1451 2,184 2,1641 2,060

Tier I capital 2,142 2,1451 2,184 2,1641 2,060

Tier II capital 248 247 266 262 265

Total regulatory capital (Tier I + Tier II) 2,390 2,392 2,450 2,426 2,325

63 (1) Include unaudited / un-reviewed profits for 9M2017 or 1Q2018 where relevant

(2) Allowing for IFRS 9 transitional arrangements

Reconciliation of Group Equity to CET

Equity and Regulatory Capital

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

Capital Requirements Framework

64

Evolution of Capital Requirements

CET1 Requirements 9.500% 9.375% 10.500%6

(1) Company Information - Sample of 25 ECB supervised banks

(2) Currently P2R in the form of CET1 only

(3) Latest SREP requirements are effective as from 1 January 2018; for illustrative purposes, P2R and RWA are assumed constant for 2019

(4) In accordance with the legislation in Cyprus which has been set for all credit institutions the applicable rate of the CCB is 1.875% for 2018 and 2.5% for 2019 (fully phased-in)

(5) P2G indicates the adequate level of capital to be maintained in order to have a sufficient buffer to withstand stressed situations. As per the EBA final guidelines on SREP and supervisory

stress testing in July 2018 and the SSM’s 2018 SREP methodology, CET1 held for purposes of P2G cannot be used to meet any other capital requirements

(6) Assumes P2R remains the same as 2018

(7) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no

changes in capital or provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

• Pillar 2 Requirement (“P2R”): 75 bps reduction for 2018 SREP (vs 2017 SREP)

• Pillar 2 Guidance5 (“P2G”): also reduced in 2018 (vs 2017)

- P2G may only be met with CET1 capital, and is ‘stacked’ above the Combined Buffer Requirement

- P2G does not impact the calculation of the Maximum Distributable Amount (“MDA”)

• O-SII Buffer: Bank of Cyprus Group is subject to a Other Systemically Important Institution (“O-SII”) Buffer of 2% of RWA

- The O-SII Buffer will be phased in by 0.5 p.p each year, starting from 1 January 2019

8% Pillar 1 Requirement of which:

• 4.5% CET1 • 1.5% AT1 • 2.0% T2

Capital Conservation Buffer (“CCB”)4

O-SII Buffer - (transitional)

Total

Pillar 2R2,3

Note: EU average

P2R = ~2%1

CET1 (%)

Tier 2 (%)

TC (%)

8.0% 8.0% 8.0%

0

14.0%

1.4%

3.75% 3.0% TBD

1.25% 1.875%

2.50%

0.5% 13.00% 12.88%

14.00% 15.4%

2017 2018 2019 Q2 18 pro forma7 for

Helix and UK sale

49

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192

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127

127

127

0

153

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191

191

191

203

224

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234

234

234

0

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114

10.5%

2.1%

14.0%

c. 12.6%

CET1 Q2 18

PF Potential 2019 MDA Threshold

Buffer to MDA Restrictions Level & Distributable Items

Pro Forma3 CET1 Ratios (Post Helix, Sale of BoC UK)

Unfilled

AT1 + T2

capacity

140bps

[ ] bps Distance

to MDA CET1

Ratio (%)

CET1

Req

Unfilled AT1 &

T2 Bucket

• Significant CET1 MDA buffer: ~140bp (~€205 mn)

• Combination of Helix and BoC UK sale expected

to improve current CET1 ratio by c.170bp5

(1) Distributable Items definition - The distributable items definition is being amended in the update of the banking reform package. The proposals suggest the amendment is likely to be a

neutral to positive impact for AT1 investors as the definition is being broadened.

(2) Assumes P2R remains the same as 2018

(3) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume

no changes in capital or provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse (4) AGM Notice was published on 26 July 2018: http://www.bankofcyprus.com/globalassets/investor-relations/agm/agm-2018/information/eng/20180726-agm-notice-2018-with-proxy-

forms_eng_final.pdf

(5) Of which -40 bps already recorded within 2Q2018 financial results

• Capital reduction plan proposed in the August 2018 AGM4

objective is to create distributable items1.

• Plan: reclassify up to €1.5bn of the share premium as distributable reserves,

thereby eliminating accumulated losses of €0.5bn (as at 31-Dec-2017)

• Objective: net distributable reserves of

- c.€1.0bn (as at 31-Dec-2017), and

- c.€0.7bn (as at 30-Jun-2018 pro forma, accounting for IFRS9 transition)

• Approval of the Capital Reduction Resolution by the Issuer’s shareholders

and the confirmation by the Irish High Court will follow4

Distributable Items at Holding Company level

Distributable Items at Bank level

• Distributable Items of the Bank amount to

- c.€0.7bn (as at 31-Dec-2017) and

- c.€0.4bn (as at 30-Jun-2018 pro forma, accounting for IFRS9 transition).

• The ECB has imposed a prohibition on the Issuer and the Bank from making

any distribution to its shareholders. This prohibition does not apply to

coupon payments on external or internal AT1 instruments

Maximum Distributable Amount

2

65

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127

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127

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191

191

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234

234

0

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114

12.40 12.60 12.83 13.39 13.83 14.12 14.53 14.46

2.20 2.10 1.80 1.76

1.74 1.58 1.58 1.56 1.69 1.69 1.81

1.98 2.11 2.12

2.17

0.31 0.22 0.15 0.14 0.18

0.17 0.18 0.15

0.15 16.51 16.54 16.58

17.31 17.85 18.00

18.43 16.48

Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Jun-18pro forma forHelix and UK

sale

EUR USD GBP Other Currencies(€ bn)

Analysis of Deposits by Currency and by Type

78.8%

8.6%

11.8%

0.8%

66

Deposits by Currency (€bn) 30 June 2018 (%)

30 June 2018 (%)

53.2%

10.1%

36.7%

9.27 9.53 9.55 9.81 10.00 9.92 9.80 8.90

1.06 1.05 1.11 1.25 1.54 1.68 1.87 1.13

6.18 5.96 5.92 6.25 6.31 6.40 6.76

6.45

16.51 16.54 16.58 17.31 17.85 18.00 18.43

16.48

Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Jun-18pro forma forHelix and UK

sale

Time deposits Savings accounts Current & demand accounts(€ bn)

Deposits by Type (€bn)

1) Calculations assume Significant Risk Transfer benefit from Helix, which as at the date of slides has not been approved by the ECB (refer to slide 37). Calculations assume no changes in

capital or provisioning levels required as result of upcoming SREP process or otherwise. Any such changes may be materially adverse

3

3

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127

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127

0

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234

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97

114

6.73 6.68 6.35 6.68 6.63 6.29 6.19

0.80 0.80 0.87 0.90 0.91 0.92 0.97

8.98 9.06 9.36 9.73 10.31 10.79 11.27

16.51 16.54 16.58 17.31

17.85 18.00 18.43

Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18

Corporate SME Retail

150 145 143 140

133

121

108 5 4

3 4

3 2

2

0

2

4

6

8

10

12

14

4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018

Time & Notice accounts

Savings and Current accounts

86 83 82 80

Cost of deposits

76 69 59

(€ bn)

Analysis of Deposits by Sector and cost of deposits

67

Deposits by customer Sector

Customer deposit rates decline further (bps) (Cy)

516 512 504 500 495 491 486

86 83 82 80 76 69 59

430 429 422 420 419 422 427

4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018

Yield on Loans Cost of Deposits Customer spread

Average contractual interest rates1 (bps) (Cy)

(1) Interest rates on cost of deposits were previously calculated as the Interest Expense over Average Balance. The current calculation which the Bank considers more appropriate is based on the weighted

average of the contractual rate times the balance at the end of the month. The rates are calculated based on the month end contractual interest rates. The quarterly rates are the average of the three

quarter month end contractual rates

49

133

156

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192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

Reduction in Overseas Non-Core Exposures

Overseas non-core exposures1 (€ mn)

(1) Comparatives excluding core exposures

(2) Lending exposures to Greek entities in the normal course of business in Cyprus and lending exposures in Cyprus with collaterals in Greece

45 44 39 38 37 31 28 28

205

149

111 108 91

79 77 72

42

42

9 9 9

9 7 7

296

283

248 240

214

193 184 179

588

518

407 395

351

312 296

286

Jun 2016 Dec 2016 Mar 2017 Jun 2017 Sep 2017 Dec 2017 Mar 2018 Jun 2018

Russia: Net exposure Romania: Net exposure

Serbia: Net exposure Greece: Net exposure

68

• The Group continues its efforts for further

deleveraging and disposal of non-essential assets

and operations in Greece, Romania and Russia.

• In accordance with the Group’s strategy to exit from

overseas non-core operations, the operations of the

branch in Romania are expected to be terminated,

subject to the completion of deregistration

formalities with respective authorities. Most of the

remaining assets and liabilities of the branch in

Romania with third parties have been transferred to

other entities of the Group.

• In addition, at 30 June 2018, there were €154 mn2

of overseas exposures in Greece (€184 mn at 31

March 2018 and €168 mn in Greece as at 31

December 2017) not identified as non-core

exposures.

49

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192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

BOC UK -Agreement for the sale of UK bank1, consideration of c.€117 mn

69

Balance Sheet (€ mn)

Assets (€ mn)

%

change 31.12.17 30.06.18

Cash and balances with

Central Banks -41% 404 239

Loans and advances to

banks 103% 36 73

Debt securities, treasury

bills and equity investments

Net loans and advances to

customers 13% 1,586 1,786

Stock of property

Other assets - 11 11

Total assets 4% 2,037 2,109

Liability and Equity (€ mn)

%

change 31.12.17 30.06.18

Deposits by banks

Funding from central banks

Repurchase agreements

Customer deposits 4% 1,867 1,946

Subordinated loan stock - 33 33

Other liabilities - 11 11

Total liabilities 4% 1,911 1,990

Shareholders’ equity -6% 126 119

Non controlling interests

Total equity -6% 126 119

Total liabilities and equity 4% 2,037 2,109

1. Binding agreement signed in Jul-18 for the sale of BOC UK http://www.bankofcyprus.com/globalassets/investor-relations/press-releases/eng/20180710-moonannouncement_eng_final.pdf

49

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0

127

127

127

0

153

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191

191

203

224

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234

234

234

0

97

114

€ mn 1H2018 1H2017 2Q2018 1Q2018 qoq % yoy %

Net Interest Income 23 18 12 11 11% 23%

Non interest income 3 4 2 1

Total income 26 22 14 12 11% 19%

Total expenses (21) (18) (12) (9) 22% 20%

Profit before provisions and impairments 5 4 2 3 -26% 14%

Loan loss provisions 0 0 0 0 - -

Impairments of other financial and non financial instruments - - - - - -

Provision for litigation and regulatory matters - (5) - - - -

Total Provisions and impairments 0 (5) 0 0 - -

Profit/(loss) before tax 5 (1) 2 3 -49% -

Profit/(loss) after tax 4 (1) 1 3 -49% -

BOC UK1 - Income Statement Review

70 (1) Binding agreement signed in Jul-18 for the sale of BOC UK. http://www.bankofcyprus.com/globalassets/investor-relations/press-releases/eng/20180710-moonannouncement_eng_final.pdf

49

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192

0

127

127

127

0

153

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191

191

191

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224

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234

234

234

0

97

114

Glossary & Definitions

71

Accumulated provisions Comprise (i) provisions for impairment of customer loans and advances, (ii) the fair value adjustment on initial recognition of loans acquired from Laiki Bank and

on loans classified at FVPL, and (iii) provisions for off-balance sheet exposures disclosed on the balance sheet within other liabilities.

Advisory and other

restructuring costs

Comprise mainly: fees of external advisors in relation to: (i) disposal of operations and non-core assets, (ii) customer loan restructuring activities which are not

part of the effective interest rate and (iii) the listing on the London Stock Exchange

AIEA Average Interest Earning Assets

AT1 AT1 (Additional Tier 1) is defined in accordance with Articles 51 and 52 of the Capital Requirements Regulation (EU) No 575/2013.

Average contractual

interest rates

Interest rates on cost of deposits were previously calculated as the Interest Expense over Average Balance. The current calculation which the Bank considers

more appropriate is based on the weighted average of the contractual rate times the balance at the end of the month. The rates are calculated based on the

month end contractual interest rates. The quarterly rates are the average of the three quarter month end contractual rates

Book Value BV= book value = Carrying value prior to the sale of property

CET1 capital ratio

(transitional basis) CET1 capital ratio (transitional basis) is defined in accordance with the Basel II requirements.

CET1 fully loaded (FL) The CET1 fully loaded (FL) ratio is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013.

Cost of Funding Effective yield of cost of funding: Interest expense of all interest bearing liabilities after hedging, over average interest bearing liabilities (customer deposits,

funding from the central bank, interbank funding, subordinated liabilities). Historical information has been adjusted to take into account hedging

Contribution to SRF Relates to the contribution made to the Single Resolution Fund.

Cost of Risk Provisions for impairment of customer loans and provisions for off-balance exposures and gains/(losses) on derecognition of loans and changes in expected cash

flows divided by average gross loans. Additional provisions of c.€500 mn charged in 2Q2017 are included in the calculation of Cost of Risk but are not annualised

Cost to Income ratio Cost-to-income ratio comprises total expenses (as defined) divided by total income (as defined).

CRR DD Default Definition

Deferred Tax Asset

adjustments

The DTA adjustments relate to Deferred Tax Assets totalling €381 mn and recognised on tax losses totalling €3.05 bn and can be set off against future profits of

the Bank until 2028 at a tax rate of 12.5%. There are tax losses of c.€7.1 bn for which no deferred tax asset has been recognised. The recognition of deferred tax

assets is supported by the Bank’s business forecasts and takes into account the recoverability of the deferred tax assets within their expiry period.

DFA Debt for Asset Swaps

DFE Debt for Equity Swaps

DTA Deferred Tax Assets

EBA European Banking Authority

ECB European Central Bank

Effective yield Interest Income on Loans/Net Loans

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

Glossary & Definitions

72

Effective yield of liquid

assets

Interest Income on liquids after hedging, over average liquids (Cash and balances with central banks, placements with banks and bonds). Historical information

has been adjusted to take into account hedging

Foreclosures Value of on-boarded assets is set at a conservative 25%-30% discount from open market valuations, by two independent sources; Includes consensual and non

consensual DFA and DFE

FTP Fund transfer pricing methodologies applied between the business lines to present their results on an arm’s length basis

GBV Gross Book Value

Gross Loans

Gross loans are reported before the fair value adjustment on initial recognition relating to loans acquired from Laiki Bank (calculated as the difference between

the outstanding contractual amount and the fair value of loans acquired) amounting to €514 mn at 30 June 2018 (compared to €566 mn at 31 March 2018 and to

€668 mn at 31 December 2017).

Additionally, gross loans are reported before loans and advances to customers measured at fair value through profit and loss of €404 mn and after the

reclassification between gross loans and expected credit losses on loans and advances to customers classified as held for sale of €107 mn.

Gross Sales Proceeds Proceeds before selling charge and other leakages

GVA Gross Value Added

Group The Group consists of Bank of Cyprus Holdings Public Limited Company, “BOC Holdings” or “the Company”, its subsidiary Bank of Cyprus Public Company

Limited, the “Bank” and the Bank’s subsidiaries

H/O Head Office

IB, W&M International Banking, Wealth and Markets

IBU Servicing exclusively international activity companies registered in Cyprus and abroad and not residents

LCR add on The local regulatory liquidity requirements set by the Central Bank of Cyprus (CBC) were abolished on 1 January 2018 and were replaced with a liquidity add-on

requirement imposed on top of the LCR of the Bank which became effective on 1 January 2018

Legacy Legacy relates to RRD, REMU and non-core overseas exposures

Loan Loss Provisions Please refer to Provisions charge ( as defined)

LLR (Loans Loss Reserve) Please refer to accumulated provisions (as defined)

Net Proceeds Proceeds after selling charges and other leakages

NIM

Net Interest Margin is calculated as the net interest income (annualised) divided by the average interest earning assets. Interest earning assets include: cash and

balances with central banks, plus loans and advances to banks, plus net customer loans and advances, plus investments (excluding equities and mutual funds)

and derivatives

Net fee and commission

income over total income Net fee and commission income over total income is the net fee and commission income divided by the total income (as defined)

Net loans and advances Loans and advances net of accumulated provisions (as defined)

49

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127

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127

0

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Glossary & Definitions

73

Non-interest income

Non-interest income comprises Net fee and commission income, Net foreign exchange gains and net gains on other financial instruments and

disposal/dissolution of subsidiaries and associates, Insurance income net of claims and commissions, Net gains from revaluation and disposal of investment

properties and on disposal of stock of properties, and Other income

NPEs

Non-Performing Exposures (NPEs) –as per the EBA definition: According to the EBA reporting standards on forbearance and non-performing exposures (NPEs),

published on 2014 and ECB’s Guidance to Banks on Non-Performing Loans published on March 2017 a loan is considered an NPE if:

1. 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

2. the exposures are impaired i.e. in cases where there is a specific provision, or

3. there are material exposures which are more than 90 days past due, or

4. there are performing forborne exposures under probation for which additional forbearance measures are extended, or

5. there are performing forborne exposures under probation that present more than 30 days past due within the probation period. The NPEs are reported

before the deduction of accumulated provisions (as defined)

The exit criteria of NPE forborne are the following:

1. The extension of forbearance measures does not lead to the recognition of impairment or default

2. One year has passed since the forbearance measures were extended

3. There is not, following the forbearance measures, any past due amount or concerns regarding the full repayment of the exposure according to the post

forbearance conditions.

NPE provision coverage

ratio Accumulated impairment losses divided by gross non performing exposures

NPE ratio NPEs ratio is calculated as the NPEs as per EBA (as defined) divided by gross loans (as defined)

NSFR

Net Stable Funding Ratio (NSFR) was not introduced on 1 January 2018, as opposed to what was expected. The NSFR is calculated as the amount of “available

stable funding” (ASF) relative to the amount of “required stable funding” (RSF), on the basis of Basel III standards. Its calculation is a SREP requirement. EBA is

working on finalising the NSFR and enforcing it as a regulatory ratio

OMV Open Market Value

Operating profit

Comprises profit before total provisions and impairments (as defined), share of profit from associates and joint ventures, tax, loss/(profit) attributable to non-

controlling interests, advisory and other restructuring costs-excluding the NPE sale (Helix), restructuring costs and loss relating to NPE sale(Helix) (where

applicable)

P.P percentage points

Performing Relates to all business lines excluding Restructuring and Recoveries Divisions (“RRD”), REMU and non-core overseas exposures

Phased-in Capital

Conservation Buffer (CCB)

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)

Provisions Charge Comprises provisions for impairments of customer loans and provisions for off-balance sheet exposures, net of gain/(loss) on derecognition of loans and

advances to customers and changes in expected cash flows.

Provisions for impairment

of customer loans Provisions for impairment of customer loans and gains/(losses) on derecognition of loans and changes in expected cash flows on acquired loans.

Profit/(loss) after tax and

before restructuring costs

and before the NPE trade

(Helix)

Excludes advisory and other restructuring costs. It also excludes any restructuring costs or loss relating to the NPE sale (Helix)

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

Glossary & Definitions

74

qoq Quarter on quarter change

Restructured loans Restructuring activity within quarter as recorded at each quarter end and includes restructurings of NPEs, performing loans and re-restructurings

Risk adjusted yield Interest Income on Loans net of provisions/Net Loans

RRD Restructuring and Recoveries Division

RWA Risk Weighted Assets

RWA Intensity Risk Weighted Assets over Total Assets

Special levy Relates to the special levy on deposits of credit institutions in Cyprus

Stage 2 & Stage 3 Loans Include purchased or originated credit-impaired

Tangible Collateral Restricted to Gross IFRS balance

Total Capital ratio Total capital ratio is defined in accordance with the Capital Requirements Regulation (EU) No 575/2013

Total expenses Total expenses comprise staff costs, other operating expenses and the special levy and contribution to the Single Resolution Fund. It does not include “advisory

and other restructuring costs-excluding Helix” or any restructuring costs or loss relating to Project Helix

Total income Total income comprises net interest income and non-interest income (as defined)

Total provisions and

impairments

Total provisions and impairments comprise provision charge (as defined), plus (reversal)/provisions for litigation and regulatory matters plus impairments of other

financial and non-financial assets

T2 Tier 2 Capital

Underlying basis Statutory basis adjusted for certain items as detailed in the Basis of Presentation

Write offs and non

contractual write offs

Loans together with the associated provisions are written off when there is no realistic prospect of future recovery. Partial write-offs, including non-contractual

write-offs, may occur when it is considered that there is no realistic prospect for the recovery of the contractual cash flows. In addition, write-offs may reflect

restructuring activity with customers and are part of the terms of the agreement and subject to satisfactory performance

yoy Year on year change

49

133

156

255

192

0

127

127

127

0

153

204

191

191

191

203

224

230

234

234

234

0

97

114

This document contains certain forward-looking statements which can usually be identified by terms used such as “expect”,

“should be”, “will be” and similar expressions or variations thereof. These forward-looking statements include, but are not

limited to, statements relating to the Group’s intentions, beliefs or current expectations and projections about the Group’s

future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, provisions, impairments,

strategies and opportunities. By their nature, forward-looking statements involve risk and uncertainty because they relate to

events, and depend upon circumstances, that will or may occur in the future. Factors that could cause actual business,

strategy and/or results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such

forward-looking statements made by the Group include, but are not limited to: general economic and political conditions in

Cyprus and other EU Member States, interest rate and foreign exchange fluctuations, legislative, fiscal and regulatory

developments and information technology, litigation and other operational risks. Should any one or more of these or other

factors materialise, or should any underlying assumptions prove to be incorrect, the actual results or events could differ

materially from those currently being anticipated as reflected in such forward looking statements. The forward-looking

statements made in this document are only applicable as from the date of publication of this document. Except as required by

any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates

or revisions to any forward looking statement contained in this document to reflect any change in the Group’s expectations or

any change in events, conditions or circumstances on which any statement is based. 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 Limited and the Bank of Cyprus Holdings Public Limited Company

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.

Disclaimer

75