Successful navigation through the pandemic with clear priorities
• Protection of staff and customer health, while ensuring operational resilience of the Bank
• c.€1.4 bn new lending to support the recovery of the Cypriot economy
• Payment holidays until end of 2020 to >25,000 customers (€5.9 bn)
Significant progress on balance sheet de-risking despite challenging environment
• €2.1 bn NPE reduction, pro forma for NPE sales; €1.5 bn NPE sales and €0.6 bn organic
• Gross NPE ratio reduced to 16% (7% net) and NPE coverage increased to 59%, both pro forma for NPE sales
• RWA intensity reduced to 53%, pro forma for NPE sales
Asset quality management throughout the pandemic
• Provision of support to impacted customers to alleviate short term cash flow burden
• Close monitoring of loans in moratoria
• Encouraging performance since the end of moratorium (31 December 2020); €3.6 bn had an instalment due by 15 February 2021, and 95% of those resumed payments
Careful cost management
• Total operating expenses (excl. special levy and contributions to SRF and DGF) in FY2020 down 12% yoy
• Cost to income ratio (excl. special levy and contributions to SRF and DGF) at 60% for FY2020, broadly flat yoy
• Digitally engaged customers increased to 75%, up 6 p.p. yoy
Launch of New Strategic Plan and Medium Term Targets
• Single digit NPE ratio by the end of 2022
• Return on Tangible Equity (ROTE) of c.7%
Positive Organic Performance in 4Q2020
• New lending of €374 mn in 4Q2020, up 30% qoq, reflecting early recovery post 1H2020 lockdown
• Total income of €142 mn up 3% qoq; Operating profit of €45 mn
• Cost of risk of 99 bps
• Organic profit after tax of €2 mn
• Exceptional items of €51 mn, including provisions / net loss relating to NPE sales (incl. restructuring expenses) of €42 mn
• Loss after tax of €49 mn for 4Q2020 and €171 mn for FY2020, post exceptional items
Operating Efficiency
• Total operating expenses (excluding special levy and contributions to SRF and DGF) of €91 mn for 4Q2020, up 7% qoq
• Cost to income ratio (excluding special levy and contributions to SRF and DGF) at 64% for 4Q2020
Good Capital, Strong Liquidity
• CET1 ratio of 15.2% and Total Capital ratio of 18.7%, on a transitional basis and pro forma for NPE sales
• Deposits at €16.5 bn, broadly flat yoy and qoq
• Significant surplus liquidity of €4.2 bn (LCR at 254%)
Significant Progress in Balance Sheet Repair
• €0.5 bn NPE sale (Helix 2 Portfolio B) signed in January 2021; €1.5 bn NPE sales since December 2019
• NPEs reduced by €2.1 bn to €1.8 bn (€0.7 bn net) in FY2020, pro forma for NPE sales
• Gross NPE ratio reduced to 16% (7% net) and coverage maintained at 59%, pro forma for NPE sales
