Announcement Financial results for the year ended 31 December 2016

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1 Announcement Financial results for the year ended 31 December 2016 Nicosia, 30 May 2017 KEY HIGHLIGHTS Net profit of 7,1 mln following the increase in provisions by 116,5 mln 15,42% Capital Adequacy Ratio, improved by 0,5% compared to 2015 Decrease in Non Performing Exposures (NPEs) by 346,8 mln and twelve-month loan restructurings equal to 1.256,7 mln Largest Retail Bank in Cyprus, 84% of interest income deriving from retail customers Reduction in total equity by 75,5 mln, due to correction of error in interest rates STATEMENT OF CHIEF EXECUTIVE OFFICER OF COOPERATIVE CENTRAL BANK 2016 has been a year of significant improvements and progress for the Cooperative sector. Main milestones, beyond our initial plans and expectations, have been achieved, such as the decision to legally merge the 18 Cooperative Credit Institutions (CCIs) with the Cooperative Central Bank (CCB), paving the way for the listing of CCB s shares on the Cyprus Stock Exchange and the creation of a domestic and expanded ownership base. The financial results of 2016 include operating profit before provisions for impairment equal to 145 mln and a profit of 7 mln, having used most of our operating profits to create new provisions of 116,5 mln. At the same time, we have responsibly managed the issue of the error found in certain loan agreements of the past. More specifically, an error has been identified in the implementation of the base interest rate on loan contracts linked to the base rate of ECB and the Euribor, during the period of This resulted to the reimbursement or/and reversal of interest charged, amounting to 111 mln towards affected accounts and a negative impact on CCB s equity of 75,5 mln, maintaining, however, a capital ratio of 15,4%. The de-escalation in interest rates continued during the passing year creating new environment and challenges that as part of the Cyprus Banking System we are expected to face. The confidence of retail customers towards the Cooperative sector remains high, embracing the Bank with customer deposits and an increased liquidity ratio of 34%, making us the largest retail bank in Cyprus, with 84% of our interest income deriving from private retail customers. Regarding non-performing exposures management, we have completed our holistic strategic planning, creating the infrastructure to cover the full range: from the management of early arrears to real estate collaterals. In the twelve months under review, we have set a record of restructurings, reaching 1,26 bn and decreasing NPEs by 347 mln on an annual basis, while maintaining high cure rates of over 70%. The effort of 2016 is reflected in the 90+ days past due rate, which has declined to 47,3% compared to 51,1% during the same period last year. The NPE ratio has been maintained at 59,9% with a total provision coverage ratio of 45,3%. Excluding interest charged on impaired loans, the NPE ratio has decreased to 58,7% and the provision coverage to 42,4% respectively. The challenges for 2017 remain high, as in addition to domestic competition pressure, there is a need for more drastic, groundbreaking and multifaced actions to address and reduce non-performing exposures. We have effected a lot of changes in the past year, decisively moving forward, and these changes support us in our effort to create a Cooperative Bank that is competitive, modern, responsible and with a local presence so that it remains the balancing factor to ensure a long term and sustainable economic growth. Nicholas Hadjiyiannis The Cooperative Central Bank (CCB) was founded in Cyprus in 1937 and is engaged in the provision of a wide range of retail, commercial banking and insurance services. CCB is regulated by the Central Bank of Cyprus and supervised by the ECB. The Republic of Cyprus is the major shareholder with a 77,34% ownership, followed by the Recapitalisation Fund with 21,88% ownership and the Cooperative Holding Company with 0,78% ownership, representing its Cooperative members. CCB is participating in international cooperative organizations and is associated with cooperative movements across the world. CCB has the largest branch network and number of ATMs in Cyprus and is a market leader in domestic deposits. It currently employs persons. As at 31 December 2016, CCB s capital adequacy ratio stood at 15,42%, total equity amounted to 1,2 bn and total assets amounted to 14,1 bn.

2 A. Analysis of Financial Results 1 for the financial year 2016 A.1. Analysis of specific items from the Statement of Financial Position A.1.1. Customer deposits and Loans Total customer deposits of the Bank amounted to ,9 mln on 31 Dec. 2016, compared to ,2 mln on 31 Dec. 2015, recording a decrease of 1,4% compared to the previous year. The market share of the Group s deposits 2 stood at 25,6% on 31 Dec compared to 27,8% on 31 Dec Customer deposits are the main source of funding for the Bank and amounted to 89,1% of the total Bank s assets on 31 Dec. 2016, compared to 89,4% on 31 Dec Loans and other advances to customers amounted to ,8 mln on 31 Dec ( 8.761,6 mln after provisions for impairment) compared to ,6 mln on 31 Dec ( 9.257,3 mln after provisions for impairment), recording an annual decrease of 672,8 mln or 5,3%, as receipts and repayments are higher than new advances. New loans for the year 2016 amounted to 226,8 mln compared to 122,3 mln in The market share of the Group s loans 2 at 31 Dec stood at 21,8% compared to 20,3% at 31 Dec The net loans to deposits ratio at 31 Dec stood at 69,7% compared to 72,6% on 31 Dec A.1.2. Capital base The Capital Adequacy Ratios of CCS (Total Capital, Tier 1 Capital, and Common Equity Tier 1 Capital) on 31 Dec stood at 15,42% compared to 14,92% on 31 Dec The change in the Capital Adequacy Ratios is mainly due to (i) the decrease in risk-weighted assets, mostly due to the decrease in the loan portfolio and (ii) a small decrease in regulatory capital. The Capital Adequacy Ratios were calculated in accordance with Regulation (EU) No.575/2013 and Directive 2013/36/EU on minimum capital requirements for credit institutions and investment companies dated 26 June 2013 that came to effect as from 1st January 2014 and in accordance with the relevant circulars and laws of the Central Bank of Cyprus. It is noted that the minimum capital adequacy ratio to be maintained by each credit institution is determined on a yearly basis by the Single Supervisory Mechanism (SSM) within Pillar II and in particular through the Supervisory Review and Examination Procedure (SREP). In the context of SREP for 2015, the minimum Core Tier 1 capital ratio for 2016 has been set at 12,25% and the Bank is subject to a limitation regarding the distribution of dividends to its shareholders. The Group surpasses the minimum ratio which was in effect on 31 December According to a decision sent by the ECB to CCB in December 2016 within the framework of the supervisory dialogue, the minimum capital adequacy ratio applicable from 1 January 2017 is 11,75% (Total SREP Capital Requirement TSCR ), comprising of minimum regulatory capital of 8% (i.e. Common Equity Tier 1 ratio (CET1) of 4,5%, Additional Tier 1 and Tier 2 of 1,5% and 2% respectively) and additional Pillar II Capital of 3,75%. In addition, ECB in the context of Pillar II has disclosed to CCB a non-public encouragement to maintain additional capital of Common Equity Tier 1. The Bank should cover capital reserves under the regulatory framework and which today include the Capital Conservation Buffer that CBC set at 2,50%, resulting in a total Capital requirement of 14,25%. The requirement was reduced to 13% effective from 1st January 2017 following the legal passing of the amendments to the Banking Law in February 2017 regarding the capital conservation reserve. A.1.3. Quality of loan portfolio The NPL Management Senior Division has as its main priority the improvement of the loan portfolio through the reduction of non-performing exposures. Total restructurings in 2016 reached mln compared to mln in Non-performing Exposures (NPEs) were reduced by 346,8 mln in 2016 ( 7.563,5 mln on 31 Dec. 2015) and reached 7.216,8 mln on 31 Dec The provisional coverage ratio of NPEs reached 45,34% at 31 Dec compared to 45,60% in the previous year. Excluding conventional interest for 2016 on impaired loans, the NPEs stood at mln, showing a decrease of 712,5 mln, while the NPE and the coverage ratios stood at 58,66% and 42,42% respectively. In 2016, 90+ days-past-due loans (90+ dpd) decreased by 794,6 mln. On 31 Dec days-past due loans were 5.698,9 mln (47,31% of the total loans) compared to 6.493,5 mln on 31 Dec (51,05% of total loans). The 90+ dpd provision coverage ratio increased to 57,42% for 31 Dec compared to 53,12% on 31 Dec The ratios relate to the Cooperative Credit Sector 2 According to Central Bank of Cyprus records 2

3 million Year on Year Restructurings 1.256, ,0 221,7 Non Performing Exposures (NPEs) 7.216, ,5-346,8 NPE to total loans (%) 59,91% 59,46% +45Bps NPE Provision coverage 45,34% 45,60% -26 bps Loans in arrears for more than 90 days (90+ dpd) 5.698, ,5-794,6 90+ dpd to total loans 47,31% 51,05% -374bps 90+ dpd provision coverage ratio 57,42% 53,12% +430 bps A.2. Analysis of Key Elements of Results Net interest income for the year 2016 decreased by 11,7% to 279,8 mln compared to 2015, when this income amounted to 317,0 mln, while the net interest margin was reduced from 2,37% in 2015 to 2,07% in The decrease in net income and net interest margin is mainly due to the decrease in interest receivable from loans and other advances, as a result of a decrease in the recoverable amount of loans on which interest is recognized due to the increased provisions. This decrease was offset by reduced interest payable that resulted from reduced deposit balances and a decrease in the cost of deposits. Non-interest income for the year 2016 amounted to 46,2 mln compared to 29,8 mln in 2015 as the Group benefited from profit arising on the sale of available-for-sale financial assets and more specifically Cyprus Government Securities as well as its participation in VISA Europe. Total net income for the year 2016 decreased by 6,0% to 326,0 mln compared to 346,8 mln in Total expenses for the year 2016 stood at 181,3 mln compared to 177,2 mln in 2015 due to the implementation of the second voluntary retirement scheme during the last three years. Cost to income ratio for the year 2016 amounted to 50,5%. 1 Operating profit before provisions for impairment for the year 2016 amounted to 144,7 mln, reduced by 14,7% compared to After accounting for the provisions for impairment of loans of 116,5 mln, the Group presented a profit before tax of 28,2 mln in 2016, compared to a loss before tax of 210,8 mln in The increase in profit before tax is due to the reduced provision for impairment of loans and other advances for 2016 of 116,5 mln compared to provisions of 380,5 mln in 2015, when the Group adopted more conservative assumptions on the basis of recommendations from the supervisory authorities. The profit for the year 2016, after the increased tax burden due to the assessment of tax liabilities and deferred tax level, stood at 7,1 mln, compared to a loss of 176,4 mln in A.3. Correction of Error As per the provisions of International Accounting Standard 8 Accounting Policies, Changes in Accounting Estimates and Errors the Group has identified in 2016 an error in the recognition of interest income and in the valuation of loans which has an impact on the presentation of prior years financial statements. As result of the error recognition, it has been estimated that interest of 111 mln will be reimbursed to affected accounts and there will be an impact on CCB s equity of 75,5 mln. The impact from the recognition of the error on CCB s equity up to 31/12/2015 amounted to 64,6 mln and has been corrected by restating the comparative amounts of the financial statements. 1. The cost to income ratio is in line with the calculations made for the purposes of monitoring the Restructuring Plan. It only concerns the Cooperative Credit Sector and does not take into account other profits / (losses), special tax on deposits and the voluntary retirement scheme expenses. 3

4 The error was mainly due to misinterpretation and inadequate implementation of the applicable laws, which provide for the responsibilities of the lender in relation to the contractual obligations arising from loan contracts, where the base interest rate is linked to the base rate of the European Central Bank or the Euribor. The loan contracts were substantially issued in the period from 2007 to 2011, i.e. before and after the accession of Cyprus to the Eurozone and the adoption of the Euro on the 1 January Due to the significant deviation of the cost of deposits in Cyprus from the aforementioned reference interest rates, a number of Cooperative Credit Institutions either unilaterally changed the reference interest rate stated in the loan contracts due to misinterpretation of the contractual clauses, or did not follow as they ought to have done the reduction in the reference interest rates of the loan contracts, or they increased the interest rate margin without previously satisfying the requirements set out in the applicable laws. It should be noted that in a number of cases, the borrowers were notified of the change either through an announcement in the daily newspapers or by personal notification letters or other forms of communication. The Board of CCB, on the basis of recent legal opinions that were received in 2017, following a relevant decision of the Financial Ombudsman, has adopted the view that the abovementioned practices are not compatible with a reasonable legal interpretation of the relevant terms of the loan contracts and applicable legislation and it has decided that, based on an assessment of the circumstances and legal merits of each case, to reimburse interest overcharges to those customers that were affected from the error. The decision affects non-settled loans and loans that have been settled after The decision does not affect cases that have been decided in Court or by an Arbitrator and which will continue to be handled in the course of handling non-performing loans and advances. 4

5 1. B. Ανάλυση Prospects των Οικονομικών Αποτελεσμάτων για το Οικονομικό έτος The Organisation Ανάλυση continues Επιλεγμένων to realize Στοιχείων its strategic Ισολογισμού objectives with the same efficiency and success, in order to restructure the Organisation into a viable, vital and dynamic Organization. The role of CCB towards the country s Καταθέσεις πελατών και Δάνεια banking system remains crucial, contributing to its diversity and enhancing overall financial stability. Οι συνολικές καταθέσεις πελατών της ΣΚΤ ανήλθαν στις 31 Δεκ στα εκατ. σε σχέση με Key objective remains the restoration the Organisation s robustness and the creation of value for its shareholders, its στις 31 Δεκ Η μείωση ύψους 180 εκατ. οφείλεται στην πιο δραστική αποκλιμάκωση των επιτοκίων για customers and its members. καταθέσεις που εφάρμοσε η Τράπεζα σε σχέση με τον ανταγωνισμό. Οι καταθέσεις πελατών αποτελούν γύρω στο The 89% main strategic του συνόλου objectives των περιουσιακών of the Organisation στοιχείων are του as συγκροτήματος follows: στο τέλος του 2016 και είναι η κύρια πηγή χρηματοδότησης της Τράπεζας. Το δανειακό χαρτοφυλάκιο της Τράπεζας ανήλθε στα εκατ. ( εκατ. 1. δάνεια Access και άλλες to capital χορηγήσεις markets σε through πελάτες the πριν listing τις προβλέψεις of CCB shares μείον on the CSE εκατ. συνολικές προβλέψεις για επισφαλείς απαιτήσεις). Το δανειακό χαρτοφυλάκιο περιλαμβάνει εκατ. μη εξυπηρετούμενες χορηγήσεις 2. Enhancing profitability through revenue growth καθώς και εκατ. δάνεια σε καθυστέρηση πέραν των 90 ημερών. Στις 31 Δεκ το καθαρό δανειακό χαρτοφυλάκιο 3. Improving της Τράπεζας the financial ήταν στα and operational εκατ. Η μείωση efficiency των of δανείων the Organisation οφείλεται κυρίως στην αύξηση των αναδιαρθρώσεων. 4. Increasing the quality of its balance sheet by reducing non-performing exposures Ποιότητα δανειακού χαρτοφυλακίου Following a period of recession, 2016 was a crucial year for the Cyprus economy, as its exit from the support program was Η Ανώτατη achieved Διεύθυνση in the best Διαχείρισης possible way, Μη Εξυπηρετούμενων by regaining trust, Χορηγήσεων credibility and (ΑΔΔΜΕΧ) creditworthiness έχει σαν of κύρια the country. προτεραιότητα The most την important βελτίωση του development δανειακού is χαρτοφυλακίου the fact that Cyprus μέσω της has μείωσης returned των to economic μη εξυπηρετούμενων growth, with χορηγήσεων. an estimated Οι growth συνολικές rate for 2016 αναδιαρθρώσεις and 2017 near για το to % of έφτασαν GDP. Cyprus τα 1.256,7 has evolved εκατ. into σε σχέση a strong με economy το with a new outlook, backed up by strong performance Τα μη εξυπηρετούμενα from all productive δάνεια (NPEs) sectors μειώθηκαν of the economy, κατά 352 such εκατ. as μέσα the tourism στο 2016 industry ( 7.602,5 sector, εκατ. the στις shipping 31 Δεκ. sector, 2015) the financial και έφτασαν and business τα 7.250,4 service εκατ. sector, στις as 31 well Δεκ. as the construction Το ποσοστό and κάλυψης real estate των NPEs sector. (προβλέψεις) έφτασε το 45,52% The continuous στις 31 recovery Δεκ of σε the σύγκριση country is με expected 45,85% to το improve προηγούμενο the financial έτος. performance of the Organisation and help accelerate the pace of reduction of the NPEs, which is one of the Organisation s top priorities. The effort that has been undertaken in 2015, to implement sustainable and viable loan restructurings, begun to show results and the balance between εκατ. performing and non-performing exposures Έτος is προς expected to gradually change. The increased effort resulted in material restructurings for the full year 2016 amounting to 1.256,7 mln, an increase of 21% over Overall in 2016 the following were achieved: Έτος (a) the reduction of the 90+ days-past-due loans by 795 mln, corresponding to a 12,2% reduction from the previous year and (b) the reduction of NPEs by 347 mln or a reduction of 4,6% compared Αναδιαρθρώσεις 1.256, ,0 221,7 to the previous year. As a result, the 90+ days-past-due ratio, as a percentage of total loans, stood at 47,3%. At the same time, customer trust towards the Organisation is maintained at very high levels as total liquidity exceeded Μη 4 bn εξυπηρετούμενα at the end of Δάνεια Also, (NPEs) during ,4 the granting 7.602,5 of -352 new loans has doubled to 226 mln, although more effort will be needed during Finally, it is very important to note that 2016 has ended with a significantly higher capital NPEs ratio that προς exceeds Συνολικά 15,4%. Δάνεια (%) 59,75% 59,35% +41 μβ NPEs A very ποσοστό important κάλυψης and entirely (προβλέψεις) positive development 45,52% 45,85% for the -33 Cooperative μβ sector is the adoption of a resolution which paves the way for the legal merger of the 18 CCIs with the CCB. The legal merger creates a solid and strong foundation to carry the Organization forward, to decisively move forward free from the multiple burdens, large liabilities and Δάνεια major distortions σε καθυστέρηση that were πέραν inevitably των 90 created ημερών during (90+dpd) the difficult 5.730,6 period 6.527,6 of ,1 The Organisation is currently facing significant positive results and wide recognition of this effort through reports and assessments of external institutions 90+ and the dpd position προς συνολικά of its two δάνεια major shareholders 47,23% who 50,96% acknowledge -373 μβ the progress that has been achieved. 90+ The Organisation, dpd ποσοστό with κάλυψης this recent (προβλέψεις) decision, adopts 57,59% an optimal 53,40% structure +420 based μβ on the practices of modern European Cooperative Institutions. It unifies the Organisation s functions and promotes transparency and equality among its staff. This will lead to better service for its customers / members and at the same time will serve its goals and mission. The legal merger is a natural evolution of what has until now been implemented in respect to the operational merger Για το 2016, τα δάνεια σε καθυστέρηση πέραν των 90 ημερών μειώθηκαν κατά 797 εκατ. σε σχέση με μείωση and the simultaneous transfer of staff and non-financial assets from the CCIs to CCB. 172 εκατ. την αντίστοιχη περίοδο του Στις 31 Δεκ τα δάνεια σε καθυστέρηση πέραν των 90 ημερών ήταν 2017 στα will undoubtedly εκατ. (47,23% be another επί milestone του συνόλου year των in the δανείων) history σε of σχέση the Cooperative με Movement εκατ. στις of 31 our Δεκ. country, 2015 since (50,96% the Organisation επί του will συνόλου seek to των complete δανείων). its Το listing ποσοστό on the κάλυψης Stock Exchange των δανείων of Cyprus. σε καθυστέρηση The Organisation πέραν των aims 90 to ημερών create με a responsible προβλέψεις banking αυξήθηκε ecosystem στο 57,59% that για will τις have 31 three Δεκ main aspects: σε σχέση member-customer-owner. με 53,40% στις 31 Δεκ The main aspects are inherent in the very existence of Cooperatives, establishing its diversity through its Cyprus history and philosophy Κεφαλαιακή Βάση It also aims to fully utilize the strategic partnership with Universal Life, to complete the legal merger and thus improve Το the Σύνολο level of Κεφαλαιακής customer service, Απαίτησης to prepare καθορίστηκε technologically από τις αρμόδιες the Organisation εποπτικές to αρχές face the της upcoming Ευρωπαϊκής digital Ένωσης challenges στο 14,25% and to further και αποτελείται improve the από management τις απαιτήσεις of του NPEs Πυλώνα with even Ι ύψους more 8% radical (το οποίο and effective μπορεί να solutions. καλυφθεί μέχρι 1,5% με Πρόσθετα Μεταβατικά Κεφάλαια Κατηγορίας 1 και μέχρι 2% με Δευτεροβάθμια Κεφάλαια), τις απαιτήσεις του Πυλώνα ΙΙ ύψους 3,75% (υπό μορφή Κεφαλαίου Κοινών Μετοχών Κατηγορίας 1 (CET1) καθώς και αποθεματικό ασφαλείας διατήρησης κεφαλαίου ύψους 2,5% σε πλήρη ισχύ, το οποίο έχει οριστεί για όλα τα πιστωτικά ιδρύματα μέσω των απαιτήσεων του Κανονισμού Κεφαλαιακών Απαιτήσεων (CRR) / Οδηγία Κεφαλαιακών Απαιτήσεων IV 5

6 1. Listing Ανάλυση of Cooperative των Οικονομικών Central Αποτελεσμάτων Bank για shares το Οικονομικό on έτος the 2016 Main Market 1.1. of the Ανάλυση Cyprus Επιλεγμένων Stock Exchange Στοιχείων Ισολογισμού According Καταθέσεις to the 2015 πελατών Restructuring και Δάνεια Plan adopted on 18 December 2015 by the European Commission and the List of Commitments agreed between CCB and the Republic of Cyprus on 9 December 2015 concerning the recapitalisation Οι συνολικές καταθέσεις πελατών της ΣΚΤ ανήλθαν στις 31 Δεκ στα εκατ. σε σχέση με of CCB, CCB should have taken by 31 December 2016 all the necessary steps to secure the necessary approvals in στις 31 Δεκ Η μείωση ύψους 180 εκατ. οφείλεται στην πιο δραστική αποκλιμάκωση των επιτοκίων για order to be able to list its shares on the CSE no later than 30 September καταθέσεις που εφάρμοσε η Τράπεζα σε σχέση με τον ανταγωνισμό. Οι καταθέσεις πελατών αποτελούν γύρω στο On 22 89% December του συνόλου 2016, των the περιουσιακών Cyprus Securities στοιχείων and Exchange του συγκροτήματος Commission στο has τέλος approved του 2016 the Prospectus και είναι η κύρια of CCB πηγή regarding χρηματοδότησης the application της for Τράπεζας. admission Το of δανειακό χαρτοφυλάκιο ordinary της shares Τράπεζας of nominal ανήλθε value στα ,28 εκατ. each ( on the CSE. εκατ. This Prospectus δάνεια και άλλες does not χορηγήσεις constitute σε an πελάτες offer to πριν the τις public προβλέψεις to invest μείον in the shares of εκατ. the συνολικές Bank. προβλέψεις για επισφαλείς απαιτήσεις). Το δανειακό χαρτοφυλάκιο περιλαμβάνει εκατ. μη εξυπηρετούμενες χορηγήσεις καθώς The Republic και of Cyprus, εκατ. which δάνεια owns σε καθυστέρηση 77,346% and πέραν indirectly των 90 through ημερών. the Στις Independent 31 Δεκ Recapitalisation το καθαρό δανειακό Fund 21,875% χαρτοφυλάκιο of the issued shares της Τράπεζας of CCB, ήταν has informed στα CCB εκατ. to immediately Η μείωση των proceed δανείων to complete οφείλεται all κυρίως necessary στην αύξηση actions των for the listing αναδιαρθρώσεων. of CCB shares on the CSE s Main Market within Ποιότητα δανειακού χαρτοφυλακίου Η Ανώτατη Διεύθυνση Διαχείρισης Μη Εξυπηρετούμενων Χορηγήσεων (ΑΔΔΜΕΧ) έχει σαν κύρια προτεραιότητα την βελτίωση του δανειακού χαρτοφυλακίου μέσω της μείωσης των μη εξυπηρετούμενων χορηγήσεων. Οι συνολικές αναδιαρθρώσεις για το 2016 έφτασαν τα 1.256,7 εκατ. σε σχέση με το Τα μη εξυπηρετούμενα δάνεια (NPEs) μειώθηκαν κατά 352 εκατ. μέσα στο 2016 ( 7.602,5 εκατ. στις 31 Δεκ. 2015) και έφτασαν τα 7.250,4 εκατ. στις 31 Δεκ Το ποσοστό κάλυψης των NPEs (προβλέψεις) έφτασε το 45,52% στις 31 Δεκ σε σύγκριση με 45,85% το προηγούμενο έτος. εκατ Έτος προς Έτος Αναδιαρθρώσεις 1.256, ,0 221,7 Μη εξυπηρετούμενα Δάνεια (NPEs) 7.250, ,5-352 NPEs προς Συνολικά Δάνεια (%) 59,75% 59,35% +41 μβ NPEs ποσοστό κάλυψης (προβλέψεις) 45,52% 45,85% -33 μβ Δάνεια σε καθυστέρηση πέραν των 90 ημερών (90+dpd) 5.730, ,6-797,1 90+ dpd προς συνολικά δάνεια 47,23% 50,96% -373 μβ 90+ dpd ποσοστό κάλυψης (προβλέψεις) 57,59% 53,40% +420 μβ Για το 2016, τα δάνεια σε καθυστέρηση πέραν των 90 ημερών μειώθηκαν κατά 797 εκατ. σε σχέση με μείωση 172 εκατ. την αντίστοιχη περίοδο του Στις 31 Δεκ τα δάνεια σε καθυστέρηση πέραν των 90 ημερών ήταν στα εκατ. (47,23% επί του συνόλου των δανείων) σε σχέση με εκατ. στις 31 Δεκ (50,96% επί του συνόλου των δανείων). Το ποσοστό κάλυψης των δανείων σε καθυστέρηση πέραν των 90 ημερών με προβλέψεις αυξήθηκε στο 57,59% για τις 31 Δεκ σε σχέση με 53,40% στις 31 Δεκ Κεφαλαιακή Βάση Το Σύνολο Κεφαλαιακής Απαίτησης καθορίστηκε από τις αρμόδιες εποπτικές αρχές της Ευρωπαϊκής Ένωσης στο 14,25% και αποτελείται από τις απαιτήσεις του Πυλώνα Ι ύψους 8% (το οποίο μπορεί να καλυφθεί μέχρι 1,5% με Πρόσθετα Μεταβατικά Κεφάλαια Κατηγορίας 1 και μέχρι 2% με Δευτεροβάθμια Κεφάλαια), τις απαιτήσεις του Πυλώνα ΙΙ ύψους 3,75% (υπό μορφή Κεφαλαίου Κοινών Μετοχών Κατηγορίας 1 (CET1) καθώς και αποθεματικό ασφαλείας διατήρησης κεφαλαίου ύψους 2,5% σε πλήρη ισχύ, το οποίο έχει οριστεί για όλα τα πιστωτικά ιδρύματα μέσω των απαιτήσεων του Κανονισμού Κεφαλαιακών Απαιτήσεων (CRR) / Οδηγία Κεφαλαιακών Απαιτήσεων IV 6

7 C. Key Performance Indicators The following table shows the Key Performance Indicators of the Bank. CCS Key Performance Indicators Dec-15 * Dec-16 NPEs % of Gross Loans 59,46% 59,91% New restructurings in the year mln 1.256,7 mln Loan Portfolio Quality 90+ dpd provision coverage ratio 53,12% 57,42% 90+ dpd ratio 51,05% 47,31% Provisioning charge (Cost of Risk) (annualised) 2,99% 0,97% Funding Loansto deposits ratio (net) 72,57% 69,70% Capital Common Equity Tier 1 Capital ratio (CET 1) 14,92% 15,42% Leverage Ratio (Total Assets / Equity) 11,7 x 11,8 x Cost to income ratio 44,49% 50,47% Efficiency Net interest margin (NIM) 2,37% 2,07% CCS number of branches CCS employees ** * Adjusted for changes in the financial statements. ** Including SEM Ltd. 7

8 D. Appendix Consolidated Financial Information for the year ended 31 December 2016 Consolidated Statement of Profit or Loss 1 January December January December (Restated) Interest income Interest expense ( ) ( ) Net Interest income Net fee and commission income Other net gains / (losses) (11.114) Other income Total net income Staff costs (99.465) (93.834) Depreciation (8.792) (10.715) Other operating expenses (73.058) (72.610) Total expenses ( ) ( ) Operating Profit before provisions for impairment Increase in provisions for impairment of loans and other advances and other provisions to cover credit risk ( ) ( ) Impairment loss of available for sale financial assets - (3) Profit / (loss) before taxation ( ) Taxation (19.015) Net profit / (loss) for the year from continuing operations ( ) Discontinued operations Net (loss) / profit for the year from discontinued operations (2.099) Profit / (loss) for the year ( ) 8

9 Consolidated Statement of Financial Position ASSETS 31 December December ( Restated) Cash Deposits with central banks Deposits with other banking institutions Loans and other advances to customers Inventories Properties held for sale Financial assets available for sale Investment properties Property, plant and equipment Intangible assets Deferred tax assets Other assets Non-current assets and disposal groups held for sale Total assets LIABILITIES Amounts due to other banks Deposits and other customer accounts Other loans Deferred tax liabilities Other liabilities Non-current liabilities and disposal groups held for sale Total liabilities EQUITY Share capital and reserves Equity attributable to equity holders of the Bank Non-controlling interests Total equity Total equity and liabilities The Consolidated Financial Statements for the year ended 31 December 2016 have been audited by the external auditors of the Group. The announcement and audited Consolidated Financial Statements of the Group for the year ended 31 December 2016 have been published on the Group s website (Investor Relations). 9