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1
Financial Results for 1st Half 2011
30 August 2011
Bank of Cyprus Group
Financial Results 1H 2011 – Highlights
Income Statement and Balance Sheet Review
Performance by Geographic Market
Strategic Priorities and 2011 Target
Appendices
2
Disclaimer
Certain statements, beliefs and opinions in this presentation are forward-looking. Such statements can be
generally identified by the use of terms such as “believes”, “expects”, “may”, “will”, “should”, “would”,
“could”, “plans”, “anticipates” and comparable terms and the negatives of such terms. By their nature,
forward-looking statements involve risks and uncertainties and assumptions about the Group that could
cause actual results and developments to differ materially from those expressed in or implied by such
forward-looking statements. These risks, uncertainties and assumptions could adversely affect the
outcome and financial effects of the plans and events described herein. We have based these forward-
looking statements on our current expectations and projections about future events. Any statements
regarding past trends or activities should not be taken as a representation that such trends or activities will
continue in the future. Readers are cautioned not to place undue reliance on forward-looking statements,
which are based on facts known to and/ or assumptions made by the Group only as of the date of this
presentation. We assume no obligation to update such forward -looking statements or to update the
reasons that actual results could differ materially from those anticipated in such forward-looking
statements. 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. 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 Ltd 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.
3
Table of Contents
I. Financial Results 1H 2011 – Highlights
II. Income Statement and Balance Sheet Review
III. Performance by Geographic Market
IV. Strategic Priorities and 2011 Target
V. Appendices
4
Financial Results 1H 2011 -
Highlights
Financial Results 1H 2011 – Highlights
Income Statement and Balance Sheet Review
Performance by Geographic Market
Strategic Priorities and 2011 Target
Appendices
5
1H11 Financial Highlights
• 1H11 Net Interest Income €553 mn (+11% yoy)
• 1H11 Profit before provisions €377 mn* (+15% yoy)
• 1H11 Profit after tax excluding the special tax on banks in Cyprus (€9 mnin 1H11) €165 mm* (+1% yoy)
• 1H11 Profit after tax €155 mn* (-4% yoy)
Loss after tax including GGBs impairment €112 mn
Healthy balance sheet and capital base combined with strong
liquidity and continued improving underlying performance
Increasing
recurring
profitability
Strong liquidity
* Excluding the impairment of the Greek Government Bonds
** Weighted average of major Greek and Cypriot banks using 31 March 2011 data
*** €1,2bn are pledged as collateral for repo transactions
• Group loans to deposits ratio at 86% (peers** at 120%)
• Liquid assets of €11,6 bn*** (28% of total assets)
• Reduced ECB funding to €1,4 bn (-58% yoy)
• Minimal debt repayments in the next two years
Greek
Government
Bonds (GGBs)
• Based on the current terms of the plan for GGBs exchange, the Group
intends to participate with the exchange of €1.076 mn bonds (nominal value)
Eligible bonds impaired by 26%
• Upon completion of GGB exchange and based on current terms of the plan,
the impact on equity is expected to be only about €20 mn
6
1H11 Financial Highlights
• NPLs ratio at 8,2%
• NPLs provisioning coverage at 54%
• NPLs coverage at 116% taking into account tangible collateral
Key
performance
indicators1
Asset quality
• Return on equity at 11,2%
• Cost to income ratio at 48,9% compared to 51,9% in 1H10
• 1H11 Net Interest Margin at 2,78%; 16bps higher than 1H10
1 Return on equity and cost to income ratios calculations exclude the impact from the impairment of GGBs
• Including GGBs impairment, Tier 1 capital ratio at 11,6% and Core Tier 1 capital ratio at 8,0%
• Total capital ratio at 12,0%
• Post the completion of the GGB exchange plan the Tier 1 ratio is estimated at 11,9% and the Core Tier 1 ratio at 8,3%
• Successfully passed the European Banking Authority (EBA) stress test
• Ranked 24th out of 90 banks in the adverse scenario with mitigating factors already completed
Capital position
7
Impairment of Greek Government Bonds
• Under the current conditions, Bank of Cyprus, intends to participate in the plan for the exchange of
Greek Government bonds
• The book value of the bonds that are eligible under the plan amount to €1.076 mn nominal value
• The Group has impaired the eligible bonds by 26%
• Impairment for Available-for-Sale based on market prices as at 30 June 2011
• Impairment for Held-to-Maturity and Loans and Receivables based on the Net Present Value of
the future cash flows according to the terms of the plan
• As a result, the Group has incurred an impairment charge after tax in the profit and loss of €268 mn in
the second quarter of 2011
• €171 mn of the €268 mn transferred to the profit and loss from the revaluation reserve
• Therefore the impact on total capital is €97 mn
• The Group estimates that upon the completion of the exchange of the GGBs there could be a
gain of €77 mn and therefore the impact on the total capital could be reduced from €97 mn to only
about €20 mn
Details of GGBs eligible for exchange
In € mn Nominal value Impairment
before tax
Book value after
impairment
Transfer from
reserves
AFS 400 161 239 161
L&R 425 78 326 10
HTM 247 42 204 -
Total of impaired bonds 1.072 281 769 171
FVTPL 4
Total of eligible bonds 1.076
8
Greek Government BondsGroup
1,63 1,62 1,60 1,52 1,46
1,04 0,98 0,93 0,86
30.0
6.1
1
31.1
2.1
1
31.1
2.1
2
31.1
2.1
3
31.1
2.1
4
31.1
2.1
5
31.1
2.1
7
31.1
2.1
9
31.1
2.2
0
GGBs remaining balances (€ bn)Total GGBs portfolio at 30 June 2011
Classification €
mn
Classification
(%)
AFS + FVTPL 242 15%
HTM 204 13%
L&R 1.183 72%
Total 1.629 100%
• Total GGB portfolio as at 30 June 2011 of €1.629 mn book value
• At 30 June 2011, GGBs not eligible for exchange amount to €857mn book value (€1.025
mn nominal value)
Classified as Loans and Receivables
Have not been written down
• GGBs book value to nominal value at 78% at 30 June 2011
GGBs eligible for exchange impaired at 26% of nominal value
• Average life of GGBs is 11 years with about 36% maturing by end-2015
9
Financial Results 1Q 2011 – Highlights
Income Statement and Balance Sheet Review
Performance by Geographic Market
Strategic Priorities and 2011 Target
Appendices
Income Statement and Balance
Sheet Review
10
Profit and Loss
(€ mn) 1H11 1H101H11 v 1H10
(%)2Q11 1Q11
2Q11 v 1Q11
(%)
Net interest income 553 496 +11% 277 276 +1%
Net fee & commission income 113 112 +1% 57 56 +1%
FX income and net gains from financial instruments 26 37 -30% 21 5 +283%
Insurance income net of insurance claims 32 30 +6% 15 17 -11%
Other income 13 6 +141% 11 2 +338%
Total income 737 681 +8% 381 356 +7%
Total expenses 360 353 +2% 176 184 -5%
Profit before provisions 377 328 +15% 205 172 +19%
Provisions 183 146 +26% 104 79 +33%
Share of loss of associates (1) (2) -74% (1) 0
Profit before tax 193 180 +7% 100 93 +7%
Taxation 38 22 +67% 17 21 -24%
Non-controlling interest loss/(profit) 0 (5) 1 (1)
Profit after tax excluding GGBs impairment 155 163 -4% 84 71 +18%
Loss from GGBs impairment (after tax) (268) - - (268) - -
Profit after tax including GGBs impairment (112) 163 -169% (183) 71 -358%
Cost to Income Ratio 48,9% 51,9% -3,0 p.p. 46,2% 51,8% -5,6 p.p.
Return on Equity 11,2% 13,6% -2,8 p.p. 11,9% 10,2% +1,7 p.p.
p.p. = percentage points
Group
Note 1: Return on Equity and Cost to Income ratios exclude the impact from the GGBs impairment
11
Profit and Loss highlights
Amounts in € mn 1H11 1H10 Change
Operating Income 737 681 +8%
Profit before provisions 377 328 +15%
Profit before tax 193 180 +7%
Profit after tax and excluding special tax levy
on Cypriot banks
165 163 +1%
Profit after tax 155 163 -4%
Amounts in € mn 1H11 1H10 Change
Operating Income 456 681 -33%
Profit before provisions 96 328 -71%
Profit before tax (88) 180 -149%
Profit after tax (112) 163 -169%
Profit and Loss highlights excluding the GGBs impairment
Profit and Loss highlights including the GGBs impairment
12
213
236255 251
260 264 265 272 277 278
1Q
09
2Q
09
3Q
09
4Q
09
1Q
10
2Q
10
3Q
10
4Q
10
1Q
11
2Q
11
Group Net Interest Margin (bp)
F1H11: 278
1H10: 262
383 388 496 553
257224
262 278
0
100
200
300
400
500
600
700
800
900
1000
1H08 1H09 1H10 1H11
1H Net Interest Income and NIM
1H Net Interest Income (€ mn) 1H NIM (bp)
Higher Interest Margins and Increasing Net
Interest Income
• 1H11 Group NIM at 2,78%, an increase of
16 basis points compared to 1H10 (2,62%)
• 2Q11 Net Interest Income at €277 mn
(+9% yoy and +1% qoq)
• 1H11 Net Interest Income €553 mn which is
an increase of 11% yoy
+18%
181
207228 231
242255
271 273 276 277
1Q
09
2Q
09
3Q
09
4Q
09
1Q
10
2Q
10
3Q
10
4Q
10
1Q
11
2Q
11
Quarterly Net Interest Income (€ mn)
+9%
Group
13
Solid Net Interest Income and Net Interest Margin
trends in main markets
95107
121104
120 128139 136 139 143
187202
221
184210 213 210 213 219 223
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
Net Interest Income and NIM -Cyprus
Net Interest Income (€ mn) NIM (bp)
49 61 69 84 77 77 76 80 79 79
154193 201
226 214 219 222 239 256 258
1Q09 2Q09 3Q09 4Q09 1Q10 2Q103Q10 4Q10 1Q11 2Q11
Net Interest Income and NIM -Greece
Net interest income (€ mn) NIM (bp)
19 15 17 21 2430 32 34 34 31
470396 414
473 505598 630 631 619
559
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
Net Interest Income and NIM -Russia
Net interest income (€ mn) NIM (bp)
Increasing Net Interest Income and Net
Interest Margin in main markets
• Cyprus – 1H11 NII at €282 mn (+14% yoy)
• Greece – 1H11 NII at €158 mn (+3% yoy)
• Russia – 1H11 NII at €65 mn (+21% yoy)
Group
14
Increasing recurring income
185 198 194215
181207
228 231 242 255271 273 276 277
4854 52
63
54
57
6171 52
5959 61 56 57
233
252 246
278
235
264
289302
294
314330 334 332 334
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
Net interest income (€ mn) Fee and commission income (€ mn)+6%
+22%+3%
Group
1H08:
€485 mn
1H09:
€499 mn
1H10:
€608 mn
1H11:
€666 mn
+9%
15
Analysis of Non interest income
54 57 6171
52 59 59 61 56 57
18
31
56
11
27 10 17
55
5
21
15
16
15
17 15
1515
14
17
151
3
6
72
4
4
2
1188
107
138
10696
8891
134
80
104
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
Fee and commission income
FX income and Net gains from financial instruments
Insurance income
Other income
• Fee and commission income flat
• FX income lower in 1H11 (€6 mn in 1H11,
compared to €18 mn in 1H10)
• Gains from financial instruments flat
compared to 1H11 (€20 mn in 1H11 and
€19 mn in H10)
1H10: €184 mn1H09: €195 mn
Group
1H11: €184 mn-5% 0%
Note 1: Excluding the impact from the impairment of GGBs
16
Increased Pre-provision Profitability and High
Efficiency
388
583
324259
496
681
353 328
553
737
360 377
Net Interest Income Operating income* Operating expenses Profit before provisions*
Profit & Loss highlights (€ mn)
1H09 1H10 1H11
+2% +15%
+11%
+8%
55,6%
51,9%
48,9%
1H09 1H10 1H11*
Cost to Income ratio (%)• Higher recurring income and contained cost
growth lead to increased pre-provision
profitability
1H11 Pre-provision income at €377 mn*
(+15% yoy)
1H11 Cost-to-income ratio at 48,9%*
compared to 51,9% in 1H10
Group
* Excluding the impact from the impairment of GGBs
17
High Ability to Manage Through Credit Cycle
Due to Increased Pre-provision Profit Margin
109 107 111135
109 126
252 243 250 261 246268*
44% 44% 45%52%
46% 49%*
1Q10 1H10 9M10 FY10 1Q11 1H11
Pre-provision profit margin
Provision charge/Avg Gross Loans (bp)
Profit before provisions/Net Loans (bp)
Provisions % Pre-provision profit
73
146
229
375
79
183
109 107 111
135
109
126
1Q10 1H10 9M10 FY10 1Q11 1H11
Provision charge
Provision charge (€ mn)
Charge/Avg Gross Loans (bp)
• Capacity to absorb provisions remains high
• Pre-provision profit margin at 268 basis points*
or 2,1 times higher than provision charge for
1H11
• Credit costs remain high due to challenging
credit conditions
• 1H11 provision charge of €183 mn
(+26% yoy)
• 1H11 credit costs 126 basis points
compared to 107 basis points in 1H10
Group
* Excluding the impact from the impairment of GGBs
18
Adequate loan quality
57% 55% 55% 55% 54%
6,2% 6,7% 7,3% 7,6% 8,2%
30.06.10 30.09.10 31.12.10 31.03.11 30.06.11
Group NPLs ratio and Provision coverage
Provision Coverage NPLs ratio
• Adequate loan quality
Group NPLs ratio at 8,2%, up by
60 basis points in 2Q11
• Adequate provision coverage at 54%
• NPLs coverage increases to 116% taking
into account tangible collateral
6,1
%
6,6
%
7,0
%
7,2
%
8,0
%
6,8
%
7,0
%
8,3
%
8,8
%
9,3
%
7,0
%
7,9
%
8,0
%
8,2
%
8,5
%
6,2%6,7%
7,3% 7,6%8,2%
30.06.10 30.09.10 31.12.10 31.03.11 30.06.11
NPLs ratio in main markets
Cyprus Greece Russia Group
40
50
60
30
40 40
20
50
60
30
60
4Q
08
1Q
09
2Q
09
3Q
09
4Q
09
1Q
10
2Q
10
3Q
10
4Q
10
1Q
11
2Q
11
Quarterly increase of NPLs ratio (bps)
Group
19
Balance Sheet Overview
€ mn % yoy 30.06.11 30.06.10 31.12.10
Cash and balances with central banks -18% 1.909 2.337 2.242
Placements with banks and reverse repurchase
agreements
-20% 4.605 5.7885.385
Debt securities, Treasury bills and equity investments -18% 5.115 6.201 5.346
Net loans and advances to customers +4% 28.135 26.968 27.725
Other assets +4% 1.986 1.903 1.940
Total assets -3% 41.750 43.197 42.638
Amounts due to banks and repurchase agreements -33% 3.918 5.861 4.620
Customer deposits +0% 32.643 32.554 32.953
Debt securities in issue -1% 88 89 84
Other liabilities +1% 1.297 1.282 1.222
Subordinated loan stock -88% 116 946 931
Non-controlling interests -1% 91 92 91
Shareholders’ equity +52% 3.597 * 2.373 2.737
Group
* €867 mn of Convertible Enhanced Capital Securities included in Equity
20
Solid Balance Sheet Structure: Healthy
Liquidity and Balanced Business Expansion
1,02,4 2,2 1,9
6,0
5,7 5,44,6
4,9
6,25,3
5,2
11,9
14,312,9
11,6*
30%
33%
30%
28%
31.12.09 30.06.10 31.12.10 30.06.11
Liquid Assets * (€ bn)
Cash/Central Bank
Bank Placements
Debt Securities, T-Bills
Liquid Assets % Total Assets
* €1,2 bn pledged as collateral for repo transactions
25,627,0 27,7 28,128,6
32,6 33,0 32,6
90%
83% 84%86%
31.12.09 31.06.10 31.12.10 30.06.11
Balanced business expansion
Net Loans (€ bn)
Customer Deposits (€ bn)
Net Loans % Customer Deposits
Group
21
Solid Funding Structure: Strong Deposit Franchise
and Limited Dependence on Wholesale Funding
90%83% 87% 84% 87% 86%
117%122% 118% 117% 120%
31.03.10 30.06.10 30.09.10 31.12.10 31.03.11 30.06.11
Net Loans % Customer deposits
Bank of Cyprus Peers*
74% 75% 75% 77% 77% 78%
57% 55% 55% 55% 55%
31.03.10 30.06.10 30.09.10 31.12.10 31.03.11 30.06.11
Customer deposits % Total Assets
Bank of Cyprus Peers*
Healthy liquidity; one of the best loans/deposits ratios in
Europe at 86%
Cyprus L/D ratio 68%, Greece L/D ratio 111%
Primarily deposit funded: 78% of assets funded by
customer deposits
Limited reliance on wholesale funding and minimal
repayments: €200 mn repaid in May 2011 and only €23 mn
due in 2012 (first call date) and €85 mn due in 2013
ECB funding reduced by 58% yoy
Completion of issue of €700mn covered bond, a second
issue of covered bonds in the short term
* Peers: Weighted average of major Greek and Cypriot banks
3,7 3,63,3 3,3
2,21,7
1,4
9,3% 8,9%
7,6% 7,9%
5,2%
4,1%3,3%
31.12.09 31.03.10 30.06.10 30.09.10 31.12.10 31.03.11 30.06.11
ECB Funding
ECB funding (€ bn) ECB funding % Total Assets
Group
-58% yoy
22
8,1% 8,2% 8,0%8,3%
11,0% 11,1%11,6% 11,9%
11,9%11,6%
12,0% 12,3%
31.12.10 31.03.11 30.06.11 30.6.11*
Capital adequacy ratios
Core Tier 1 ratio Tier 1 ratio Total Capital ratio
(€ mn) 31.12.10 31.03.11 30.06.11
Shareholder’s equity 2.737 2.841 3.597
Core Tier I capital 2.134 2.160 2.127
Hybrid capital (Tier I) 752 765 954
Tier I capital 2.886 2.925 3.081
Tier II capital 243 126 97
Total regulatory capital 3.129 3.051 3.178
Risk weighted assets 26.277 26.388 26.493
Healthy capital positionGroup
Capital position strengthened with issue of Convertible
Enhanced Capital Securities of €890 mn completed in May 2011
• 11,6% Tier-1 ratio
• 12,0% Total Capital ratio
Upon the completion of GGBs exchange, the Core Tier 1 capital
ratio is estimated to increase to 8,3% and the Tier 1 capital
ratio to 11,9%
Successfully passed the European Banking Authority (EBA)
stress test
• Ranked 24th out of 90 banks in adverse scenario with
mitigating factors already completed
* Pro-forma taking into account the completion of the GGBs exchange
23
Evolution of capital position
6,5%7,2%
11,2%
7,4%
10,6%11,7%
8,1%
11,0%11,9%
8,0%
11,6% 12,0%
Core Tier 1 ratio Tier 1 ratio Total Capital ratio
Capital ratios (%)
12-2008 12-2009 12-2010 06-2011
+4,4%
1,371,54
2,38
1,78
2,532,81
2,13
2,893,13
2,13
3,08 3,18
Core Tier 1 capital Tier 1 capital Total Regulatory Capital
Regulatory capital (€ bn)
12-2008 12-2009 12-2010 06-2011
>2x• Regulatory Tier 1 capital has
more than doubled since
Dec-08 (€3,08 bn vs €1,54 bn)
• Tier 1 capital ratio increased
by 440 basis points since
Dec-08 to 11,6%
24
Financial Results 1Q 2011 – Highlights
Income Statement and Balance Sheet Review
Performance by Geographic Market
Strategic Priorities and 2011 Target
Appendices
Performance by Geographic
Market
25
248
191
60
120
282
229
62
142
Net Interest Income
Profit before provisions*
Provisions Profit after tax*
Profit & Loss Highlights (€ mn)
1H10 1H11
+3%
+20%
+19%
95 107 121104 120
128 139 136 139 143187
202221
184210 213 210 213 219 223
236258
301325 325 326 331
314 325 337
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
Cyprus NII (€ mn), NIM and Spread (bp)
NII NIM Customer Spread
46% 46%
44%
42%
FY09 1H10 FY10 1H11*
Cost to Income ratio (%)
Resilient Cypriot operations
1H11 Cyprus profitability affected by:
• Strong increase of net interest income
(+14% yoy)
• Higher NIM (1H11: 2,21% vs 1H10: 2,11%)
• +20% yoy increase in Profit before Provisions*
• Profit after tax at €142mn* (+19% yoy)
Cyprus
+14%
* Excluding the impact from the impairment of GGBs
26
4,9 5,2 5,3
2,3 2,3 2,4
6,2 6,4 6,7
13,4 13,9 14,4
30.06.10 31.12.10 30.06.11
Gross Loans (€bn)
Retail SMEs Corporate
+7% yoy
28,1
%
20,9
%
10,6
%
6,2
%
24,4
%31,4
%
20,8
%
9,7
%
5,6
%
21,4
%
31,5
%
20,8
%
10,7
%
5,1
%
21,5
%
BOC MPB Hellenic Alpha Coops
Deposit market share (%)
31.12.09 31.12.10 30.06.11
Leading financial institution in Cyprus with an
unrivalled deposit franchise
9,1 9,8 10,8
9,8 9,9 9,4
18,9 19,7 20,2
30.06.10 31.12.10 30.06.11
Deposits (€bn)
Non-IBUs IBUs
• A strong deposit franchise benefiting
from a flight to quality
• A leading deposit market share of 31,5%
(equal to the combined share of 2nd and
3rd largest banks); a 3,4% percentage
points expansion of market share since
December 2009
• Loan and deposit increase of 7% yoy
+8% yoy
+5% yoy
+7% yoy
Cyprus
+7% yoy
-5% yoy
+19% yoy
27
Market leader in International Business Sector3
1.1
2.0
2
31.1
2.0
3
31.1
2.0
4
31.1
2.0
5
31.1
2.0
6
31.1
2.0
7
31.1
2.0
8
31.1
2.0
9
31.1
2.1
0
30.0
6.1
1
Companies Registered (000)
32,738,3
46,851,8
55,0 57,0 58,1
Active IBU Customers (000)
6,8 6,8 6,5 6,6 6,8 7,2
9,88,8
9,98,9 9,4
31
.12
.08
31
.03
.09
30
.06
.09
30
.09
.09
31
.12
.09
31
.03
.10
30
.06
.10
30
.09
.10
31
.12
.10
31
.03
.11
30
.06
.11
IBU Deposits (€ bn)
• Leading IBU position provides a growing clientele
and an expanding deposit base
• 42% leading market share in foreign currency
deposits
• Presence in Eastern Europe to boost further the
IBU sector
• Sector continues to expand; Registered
companies in Cyprus increased by 4% during first
six months of 2011Source: Cyprus Registrar of Companies
Cyprus
28
154
98
70
25
158
95 95
-7Net Interest
IncomeProfit before provisions*
Provisions Profit after tax*
Profit & Loss Highlights (€mn)
1H10 1H11+3%
-3%+36%
56,3%57,4%
50,7% 50,7% 51,3%
FY08 FY09 1H10 FY10 1H11*
Cost to Income ratio (%)
Facing a challenging market
49 61 69 84 77 77 76 80 79 79154
193 201226 214 219 222 239 256 258
209
284322 328 320 302 302 291 289 305
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
Greece NII (€mn), NIM and Spread (bp)
NII NIM Customer Spread
1H11 Greece profitability affected by:
• Increase in net interest income (+3% yoy)
• Higher NIM (1H11: 2,57% vs 1H10: 2,17%; +40 bps)
• Higher provisions (+36%)
Greece
* Excluding the impact from the impairment of GGBs
29
7,6 7,4 6,3
2,7 2,42,4
10,3 9,88,7
92% 99%111%
30.06.10 31.12.10 30.06.11
Deposits (€bn) and L/D ratio (%)
Time/Notice
Demand/Savings
Net Loans % Customer Deposits
Managing portfolio through difficult economic
conditions
5,4% 5,6% 5,6% 5,7%6,0% 6,1%
3,8%4,0% 4,0% 4,0%
4,2% 4,2%
31.12.07 31.12.08 31.12.09 30.06.10 31.12.10 30.06.11
Evolution of market shares
Business* Total Loans
• Loans to deposits ratio 111%
• Selective increase in Corporate loans,
(+23% yoy), reduction in SMEs and Retail
• Loans market share at 4,2% at end of June
20113,2 3,2 3,2
3,8 3,7 3,5
2,9 3,2 3,6
9,9 10,1 10,2
30.06.10 31.12.10 30.06.11
Gross Loans (€ bn)
Retail SMEs Corporate
+3% yoy
-8% yoy
-3% yoy
Greece
+23% yoy
*Business Loans include Corporate and SME loans
30
53
7765
90
Net Interest Income Operating Income
Profit and Loss Highlights (€ mn)
1H10 1H11
+15%
Performance to benefit from business
expansion
1915 16
21 2430 32 34 34 31
470396 414
473 505598 630 631 619
559
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
Russia NII (€ mn) & NIM (bp)
Net Interest Income Net Interest Margin
15
3
28
10
Profit before provisions Profit after tax
Improved bottom-line profitability (€ mn)
1H10 1H11
+77%
+196%
• Continuous improvement in Net Interest
Income – 1H11 NII +21% yoy
• NIM 1H11 at 588 basis points an increase of 35
basis points versus 1H10
• Higher income along with cost containment,
leading to higher bottom-line profitability
Profit before provisions +77% to €28 mn
Profit after tax €10 mn compared to €3
mn in 1H10
Russia
+21%
31
Continuing business expansion
• Business expansion continued in 1H11
• Strong increase in deposits (+21% yoy, +28% yoy
in local currency)
• Increase in loans (+6% yoy, +12% yoy in local
currency)
1,17 1,14 1,14 1,201,41
1,631,87 1,80 1,89 1,91 1,99
31
.12
.08
31
.03
.09
30
.06
.09
30
.09
.09
31
.12
.09
31
.03
.10
30
.06
.10
30
.09
.10
31
.12
.10
31
.03
.11
30
.06
.11
Gross Loans (€ bn)
0,90 0,90 0,93 1,00 1,021,13 1,09 1,07 1,12
1,221,32
31
.12
.08
31
.03
.09
30
.06
.09
30
.09
.09
31
.12
.09
31
.03
.10
30
.06
.10
30
.09
.10
31
.12
.10
31
.03
.11
30
.06
.11
Customer Deposits (€ bn)
Corporate16%
SMEs62%
Mortgages4%
Other Consumer
9%
Car finance9%
Loan diversification
Russia
32
11,8
7,3
3,04,0
11,8
8,7
4,4 3,5
Net Interest Income
Profit before
provisions
Provisions Profit after tax
Profit and Loss Highlights Romania (€ mn)
1H10 1H11
Resilient EE operations
8,4
5,1
0,2
4,6
10,7
6,04,2
1,5
Net Interest Income
Profit before
provisions
Provisions Profit after tax
Profit and Loss Highlights Ukraine (€ mn)
1H10 1H11
249 248 252
30.06.10 31.12.10 30.06.11
Ukraine loans (€ mn)
+1%
580625 631
30.06.10 31.12.10 30.06.11
Romania Loans (€ mn)
+1%
Romania - Ukraine
33
Financial Results 1Q 2011 – Highlights
Income Statement and Balance Sheet Review
Performance by Geographic Market
Strategic Priorities and 2011 Target
Appendices
Strategic priorities
and
2011 Target
34
Balance sheet strength
Safeguard healthy liquidity
Maintain strong capital adequacy
Achieve satisfactory profitability
Manage risks effectively
2011 Target
The Group expects to achieve significant net profitability, including the impact from the implementation of the GGB exchange plan, based on the current terms of the plan
Strategic priorities for 2011
35
Key information and contact details
Participation in indices:
CSE General Index , FTSE/CySE 20
FTSE/ATHEX Top 20
FTSE Med 100, MSCI Greece Index,
FTSE New EU
DJ STOXX EU Enlarged TMI
Credit Ratings:
Fitch: BBB- / F-2 / bb
Moody’s : Ba1 / NP / D-
Listing:
ATHEX – BOC
CSE – BOCY
ISIN CY0000100111
www.bankofcyprus.com
Christis Hadjimitsis
Senior Group General Manager
Tel: +357 22 122127
Email: [email protected]
Constantinos Pittalis, Head of Investor Relations, Tel: +357 22 121883, Email: [email protected]
Argiro Papadopoulou, Investor Relations, Tel: +357 22 121725, Email: [email protected]
Ioanna Shaili, Investor Relations, Tel: +357 22 121740, Email: [email protected]
Investor Relations
Yiannis Kypri
Deputy Group CEO
Tel: +357 22 122126
Email: [email protected]
Contacts
36
Appendices
Financial Results 1Q 2011 – Highlights
Income Statement and Balance Sheet Review
Performance by Geographic Market
Strategic Priorities and 2011 Target
Appendices
37
Gross Loans by Geography
12,8 13,4 13,9 14,4
9,8 9,9 10,2 10,21,4 1,9 1,9 2,02,5
2,8 2,9 2,926,5
28,0 28,9 29,4
31.12.09 30.06.10 31.12.10 30.06.11
Other
Russia
Greece
Cyprus
Total
(€ bn)
30.06.10
(Eur mn)
As % of
total
30.06.11
(Eur mn)
As % of
total
YoY (%) Market
Share (%)
Cyprus 13.413 48% 14.392 49% +7% 28,5%
Greece 9.905 35% 10.166 35% +3% 4,2%
Russia 1.874 7% 1.991 7% +6%
Other Countries 2.761 10% 2.892 9% +5%
TOTAL 27.953 29.441 +5%
United Kingdom 1.153 997 -14%
Australia 779 1.011 +30%
Romania 580 631 +9%
Ukraine 249 252 +1%
Other countries: Australia, Romania, Ukraine and United Kingdom
38
Gross Loans Segmental Diversification
Corporate43%
SMEs26%
Mortgages19%
Consumer Credit12%
Group
Corporate35%
SMEs34%
Mortgages17%
Consumer Credit14%
Greece
Corporate46%
SMEs17%
Mortgages25%
Consumer Credit12%
Cyprus
(+6% yoy)
(+7% yoy)
(+5% yoy)
(-0,4% yoy)
(+8% yoy)
(+5% yoy)
(+8% yoy)
(+6% yoy)
(+23% yoy)
(-8% yoy)
(0% yoy)
(-7% yoy)
39
Customer Deposits by Geography
14,718,9 19,7 20,2
10,910,3 9,8 8,71,01,1 1,1 1,32,0
2,4 2,428,6
32,6 33,0 32,6
31.12.09 30.06.10 31.12.10 30.06.11
Other
Russia
Greece
Cyprus
Total
(€ bn)
30.06.10
(Eur mn)
As % of
total
30.06.11
(Eur mn)
As % of
total
YoY (%) Market
Share (%)
Cyprus 18.938 58% 20.213 62% +7% 31,5%
Greece 10.335 32% 8.713 27% -16% 4,1%
Russia 1.088 3% 1.322 4% +21%
Other Countries 2.193 7% 2.395 7% +9%
TOTAL 32.554 32.643 +0%
United Kingdom 1.376 1.183 -14%
Australia 631 998 +58%
Romania 139 174 +26%
Ukraine 47 41 -13%
Other countries: Australia, Romania, Ukraine and United Kingdom
2,3
40
Cyprus: Summary profit & loss and key indicatorsExcluding the impact from the impairment of GGBs in 2Q11
b.p. = basis points, p.p. = percentage points ; 100 b.p. = 1 p.p.
(€ mn) 1H11 1H10 y/y % 2Q11 q/q %
Net interest income 282 248 +14% 143 +3%
Net fee & commission income 64 61 +5% 31 -7%
Foreign exchange income and gains from financial
instruments
20 19 +3% 19
Insurance income net of insurance claims 26 25 +5% 12 -15%
Other income 4 2 +74% 3 +139%
Total income 396 355 +12% 208 +10%
Personnel expenses 110 111 -1% 50 -16%
Other operating expenses 57 53 +7% 31 +17%
Total expenses 167 164 +2% 81 -6%
Profit before provisions 229 191 +20% 127 +24%
Provisions 62 60 +3% 33 +14%
Share of (loss)/profit of associate -- -2 -74% -1
Profit before tax 167 129 +29% 93 +27%
Taxation 26 14 +78% 12 -9%
Non-controlling interest loss/(gain) 1 5 -69% 2
Profit after tax 142 120 +19% 83 +37%
Net Interest Margin (NIM) 2,21% 2,11% +10 b.p. 2,23% +4 b.p.
Return on Equity (ROE) 23,7% 21,8% +1,9 p.p.
Cost/Income Ratio 42,2% 46,2% -4,0 p.p. 39,1% -6,5 p.p.
41
Greece: Summary profit & loss and key indicatorsExcluding the impact from the impairment of GGBs in 2Q11
b.p. = basis points, p.p. = percentage points ; 100 b.p. = 1 p.p.
(€ mn) 1H11 1H10 y/y % 2Q11 q/q %
Net interest income 158 154 +3% 79 +0%
Net fee & commission income 25 26 -3% 14 +17%
Foreign exchange income and gains from financial
instruments
3 13 -77% 0 -81%
Insurance income net of insurance claims 6 5 +10% 3 +6%
Other income 4 1 +161% 3 +245%
Total income 196 199 -2% 99 +2%
Personnel expenses 59 59 0% 29 -1%
Other operating expenses 42 42 -1% 20 -13%
Total expenses 101 101 -1% 49 -6%
Profit before provisions 95 98 -3% 50 +11%
Provisions 95 70 +36% 57 +48%
Share of profit/(loss) of associate -- -- -- -- --
Profit before tax 0 28 -100% -7 -199%
Taxation 7 3 +129% 1 -77%
Non-controlling interest loss/(gain) -- -- -- -- --
Profit after tax -7 25 -128% -8 -813%
Net Interest Margin (NIM) 2,57% 2,17% +40 b.p. 2,58% +2 b.p.
Return on Equity (ROE) -2% 7,5% -9,5 p.p.
Cost/Income Ratio 51,3% 50,7% +0,6 p.p. 49,2% -4,2 p.p.
42
Russia: Summary profit & loss and key indicators
b.p. = basis points, p.p. = percentage points ; 100 b.p. = 1 p.p.
(€ mn) 1H11 1H10 y/y % 2Q11 q/q %
Net interest income 65 53 +21% 31 -7%
Net fee & commission income 17 19 -12% 9 +13%
Foreign exchange income and gains from financial
instruments
3 4 -21% 2 +41%
Insurance income net of insurance claims -- -- -- -- --
Other income 5 1 +340% 4 +754%
Total income 90 77 +15% 46 +7%
Personnel expenses 33 33 +1% 16 -8%
Other operating expenses 29 29 -2% 15 +4%
Total expenses 62 62 +0% 31 -2%
Profit before provisions 28 15 +77% 16 +32%
Provisions 15 9 +54% 8 +30%
Share of profit/(loss) of associate -- -- -- -- --
Profit before tax 13 6 +114% 7 +33%
Taxation 2 3 -24% 1 +59%
Non-controlling interest loss/(gain) -1 -- -- -1 --
Profit after tax 10 3 +196% 5 +26%
Net Interest Margin (NIM) 5,88% 5,53% +35 b.p. 5,59% -60 b.p.
Return on Equity (ROE) 10,8% 3,7% +7,1 p.p
Cost/Income Ratio 69,2% 80,0% -10,8 p.p. 66,2% -6,3 p.p.
43
Other countries: Summary profit & loss and key indicators
b.p. = basis points, p.p. = percentage points ; 100 b.p. = 1 p.p. Other countries: Australia, Romania, Ukraine and United Kingdom
(€ mn) 1H11 1H10 y/y % 2Q11 q/q %
Net interest income 48 41 +16% 24 -2%
Net fee & commission income 6 6 +10% 3 -9%
Foreign exchange income and gains from financial
instruments
0 1 -88% 0 -163%
Insurance income net of insurance claims -- -- -- -- --
Other income 1 1 +31% 1 --
Total income 55 49 +14% 28 0%
Personnel expenses 17 14 +20% 8 -3%
Other operating expenses 14 12 +19% 8 +5%
Total expenses 31 26 +19% 16 +1%
Profit before provisions 24 23 +8% 12 -1%
Provisions 11 6 +85% 6 +25%
Share of (loss)/profit of associate -- -- -- -- --
Profit before tax 13 17 -20% 6 -19%
Taxation 3 3 +34% 2 -7%
Non-controlling interest loss/(gain) 0 0 -- -- --
Profit after tax 10 14 -29% 4 -22%
Net Interest Margin (NIM) 2,60% 2,52% +8 b.p. 2,58% -5 b.p.
Return on Equity (ROE) 10,7% 16,0% -5,3 p.p.
Cost/Income Ratio 55,4% 52,9% +2,5 p.p. 55,7% +5 b.p.
44
8,2
3,1
0,42,0
11,0
3,7
0,91,8
Net Interest Income
Profit before provisions
Provisions Profit after tax
Profit and Loss Highlights Australia (€ mn)
1H10 1H11
Operations in Australia and United Kingdom
12,9
7,4
2,6 3,7
14,3
6,3
1,73,4
Net Interest Income
Profit before provisions
Provisions Profit after tax
Profit and Loss Highlights UK (€ mn)
1H10 1H11
779
1.012 1.011
631
897998
30.06.10 31.12.10 30.06.11
Australia Loans and Deposits (€ mn)
Loans Deposits
1.153 1.077 997
1.3761.260 1.183
30.06.10 31.12.10 30.06.11
UK Loans and Deposits (€ mn)
Loans Deposits
45
Securities Portfolio
33%
16%8%
43%
Portfolio by rating
Aaa-Aa3 A1-A3 Baa1-Baa3 <Baa3
74%
25%1%
Portfolio by issuer
Gvt and Gvt guaranteed Financial Institutions
Corporate
Group
• Average life of securities portfolio is 6,7 years
• Average rating of securities portfolio is Baa3; excluding GGBs,
the average rating is A1