Bank Of Cyprus Holdings Public Limited Company (BOCH) investor relations material

Executive summary

• Delivered strong Q1 2026 profitability with net profit of €121 million and ROTE of 18.0%, supported by stable net interest income, cost discipline, and robust asset quality.

• Maintained a highly liquid, well-capitalised balance sheet with CET1 ratio at 20.7% and Total Capital ratio at 25.5%.

• Gross performing loans grew 2% quarter-on-quarter to €11.1 billion, with new lending of €829 million, up 9% sequentially.

• Announced bolt-on acquisitions, including a 26% stake in Wealthyhood and acquisition of €150 million in performing loans and €500 million in deposits from Cyprus Development Bank.

• Advanced digital transformation and ESG initiatives, with increased digital sales and upgraded ESG ratings.

Financial highlights

• Net interest income for Q1 2026 was €181 million, with net interest margin at 2.81%, flat quarter-on-quarter.

• Total income was €250 million, down 2% year-over-year; operating profit at €159 million, down 5% year-over-year.

• Non-interest income was €69 million, flat year-over-year, with recurring non-NII up 8% YoY and insurance income up 41% YoY to €17 million.

• Cost-to-income ratio at 37%; total operating expenses up 4% YoY due to variable pay accrual.

• Net release of 17 basis points in cost of risk, driven by a customer-specific reversal.

Outlook and guidance

• 2026-2028 targets: mid-teens ROTE, over 20% ROTE on 15% CET1, and organic capital generation of 350-400 basis points per annum.

• Loan growth expected to exceed 5% for full year 2026, supported by strong pipeline and domestic demand.

• NII expected to stabilize at approximately €720 million for 2026, with net interest margin above 270 basis points, assuming 2% ECB deposit rate.

• Payout ratio guidance: up to 90% for 2026, up to 100% for 2027 and 2028, subject to market conditions.

• Cost to income ratio expected to remain around 40% through 2026-2028.