bank of cyprus presentation - may 2012

7/29/2019 Bank of Cyprus Presentation - May 2012

1/33

1

International Banking Services

May 2012

Bank of Cyprus Group

Strategic Business CrossroadA reliable Financial Centre


2/33

2

Bank of CyprusGroup

Bank of Cyprus


3/33

3

Table of Contents

I. Why Cyprus?

II. The Banking System in Cyprus

III. Cyprus Banking Regulatory Environment

IV. Bank of Cyprus Group

V. BOC International Banking Services

The Banking System in Cyprus

Cyprus Banking Regulatory Environment


BOC - International Banking Services

Why Cyprus?


4/33

4

Why Cyprus?

Why Cyprus?





Why Cyprus?


5/33

5

Reputable International Financial Centre -1

Strategic location at the crossroads of Europe, Asia and

Africa, with very convenient time zone

Member of the European Union (2004) and the EuropeanMonetary Union (2008)

Economic, legal and institutional stability

An attractive tax system, with the lowest corporate tax rate

in the EU at 10% and a wide network of Double Tax Treaties

A well-established legal system based on English standards


6/33

6

Reputable International Financial Centre - 2

High quality of legal, accounting and other professional

services

Business friendly legislation and government policies

A highly educated and low-cost employee work force

A well developed banking system, operating under a prudentregulatory and supervisory regime

Cyprus is on the white list of the OECD

About 256 thousand companies registered as at 29 February2012


7/337

Cyprus Economy Gradually regaining its positivemomentum

A services-oriented economybenefiting from its growingimportance as an internationalbusiness and financial centre

The economy is going through ashallow recession and is expected toreturn to growth in 2013

Government Debt % GDP at around

72%; significantly lower thanEuropean comparative

64,7 58,848,9

58,5 61,571,6

68,5 66,3 70,1

79,8 85,387,0

2006 2007 2008 2009 2010 2011

Government debt (% of GDP)

Cyprus Euro Area

Source: Eurostat, European Economic Forecast

1,1

0,5

-1,0

1,0

Cyprus

Real GDP (% growth)

2010 2011 2012f 2013f


8/338

Prospect of Natural Gas

Source: Noble energy presentation

Energy potential with Gas findings in EastMediterranean

Aphrodite gas field is an offshore natural gas fieldlocated 34km west of Israels Leviathan gas field,

one of the largest natural gas finds over the lastdecade

Aphrodite is one of 13 gas fields within Cyprus

demarcated maritime Exclusive Economic Zone(EEZ)

Initial evaluation work estimated gross resourcerange of 5 to 8 trillion cubic feet (Tcf) with a grossmean of 7 Tcf

Development alternatives construction of

liquefaction plant or pipeline


9/339

Foreign Direct Investments out of Cyprus

FDI into YearVolume

(mn)% Total Rank

Russia 2010 $12.276 29% 1st

Ukraine 2011 $9.915 22,2% 1st

Czech Republic 2010 691 13,5% 4th

India04 /2010 -03 /2011

913 4,7% 6th

Romania 2010 121 4,5% 7th


10/3310

The Banking Systemin Cyprus

Banking in Cyprus





Why Cyprus?


11/3311

Structure and Growth of Cyprus Financial System

Source: Cyprus Registrar of Companies, Central Bank

Size and structure of the Cyprus

financial system reflects Cyprus

role as an international business

centre

This is reflected in the growing

number of companies registered

in Cyprus and the increasing size

of the banking system

30

40

50

6070

80

2005-11

2006-04

2006-09

2007-02

2007-07

2007-12

2008-05

2008-10

2009-03

2009-08

2010-01

2010-06

2010-11

2011-04

2011-09

2012-02

Total Banking System Deposits ( bn)

Mar-2012: 70,7 bn


12/3312

Cyprus Banking System Balanced Expansion

Cypriot banks follow a traditional conservative,plain-vanilla commercial banking model

Low high-risk/volatile activities such asinvestment banking and proprietary trading

Income from trading activities is low,suggesting a high level of recurring incomefrom financial intermediation between saversand borrowers

Model based on long-term customerrelationships

No excessive compensation with misalignedincentives schemes vis-a-vis the stability ofthe bank / long-term career bankers, with thesame institution for many years, suggestingsignificant personal franchises in place,

acting as risk-deterrent

A balanced business expansion, wholly-funded by customer deposits and withlimited reliance on wholesale funding, and aliquid balance sheet


13/3313

Cyprus Banking

RegulatoryEnvironment






Why Cyprus?


14/3314

Strong Banking Regulatory Environment

Central Bank of Cyprus (www.centralbank.gov.cy)

Independent banking supervision

Continuous and close monitoring of the liquidity andcapital adequacy position of financial institutions

Law compatible with EU Acquis Communitaire

Strict banking secrecy per Banking Law


15/3315

Security & Trust

Strict legal confidentiality restriction protecting bank customer.

It is prohibited by law to disclose any information concerning the

account of a specific customer of the bank , except in cases of acriminal offence

Banking Law 66(1) of 1997: 5.29 (i):

It is prohibited for any Director, the Chief Executive Officer, Manager,Officer, employee or bank representative and to any other person whohas by any means access to the Banks archives to give, reveal or use

for his own benefit any information concerning the account of aspecific customer of the Bank during the course of his employment orhis professional relationship with the bank, depending on the case, orafter the termination thereof


16/33

16

Bank of CyprusLegacies of the past,Shaping the future

Bank of Cyprus





Why Cyprus?


17/33

17

Group profile

Established in 1899, Bank of Cyprus Group (Group) is the leading banking andfinancial services group in Cyprus, with assets totaling43 bn

Market shares of over 41% and 36% in deposits and loans Market shares of over 40% in foreign currency deposits

Regional bank with focus on Corporate, Retail, International Banking and Wealthand Asset Management

Operations in countries with strong links with Cyprus:

Russia: Uniastrum Bank, 194 branches Greece: 187 branches Ukraine: 42 branches Romania: 10 branches UK 4 branches since 1955 Channel Islands: 1 branch

Representative Offices (Russia (3), Ukraine, S. Africa, Serbia)

Future Developments: Dubai presence and India Representative Office


18/33

18

Key Geographical Operations

Greece

187Number of Branches

Cyprus


Russia


United Kingdom

4Number of Branches

Ukraine


Romania


Channel Islands

1Number of Branches

Representative offices (6)

Russia

Ukraine

Serbia

South Africa

Russia

Ukraine

United

Kingdom

Cyprus

Greece

Romania
http://www.bankofcyprus.com/en-GB/http://www.bankofcyprus.com/en-GB/http://www.bankofcyprus.com/en-GB/


19/33

19

84% 87% 86% 89%92%

120% 120%129%

135% 137%

31.12.10 31.03.11 30.06.11 30.09.11 31.12.11

Net loans % Customer deposits **

Bank of Cyprus Peers*

77% 77% 78% 80% 78%

55% 55%50% 48% 49%

31.12.10 31.03.11 30.06.11 30.09.11 31.12.11

Customer deposits % Total assets

Bank of Cyprus Peers*

Healthy liquidity; one of the best loans/deposits ratios in Europe at 92%

Primarily deposit funded: 78% of assets funded by customer deposits

Limited reliance on wholesale funding and minimal repayments: only23 mn due in2012 (first call date) and25 mn due in 2013

Data shown is based on publicly available data as reported by the companies in their Interim and Annual statements.

* Weighted average of Peer group comprising National Bank of Greece, Alpha Bank, EFG Eurobank, Marfin Popular Bank

and Piraeus Bank.** Net Loans = Gross loans minus loan loss reserves

Solid Funding Structure: Strong Deposit Franchise andLimited Dependence on Wholesale Funding

Net loans 27,4 bn (31 December 2011)

Customer Deposits29,7 bn (31 December 2011)

Customer Deposits29,7 bn (31 December 2011)

Total assets37,8 bn (31 December 2011)


20/33

20

Increased Pre-provision Profitability and High Efficiency

Higher recurring income and contained cost growth lead to increased pre-provisionprofitability

FY11 Profit before provisions at805* mn (+11% yoy)

FY11 Cost-to-income ratio at 47,8% compared to 50,0% in FY10

Taking into consideration the impairment of GGBs, losses after tax for 2011 amounted to1.371 mn

* Profit before provision is shown before the impairment of the Greek Government Bonds


21/33

21

The Group remains focused on strengthening capital

* Adjusting for additional594 mn of Core Tier 1 capital and160 mn of Tier 1 capital

** Taking into account the full completion of the Capital Strengthening Plan

Including GGBs impairment of 74% and taking into account the592 mn increase in Core tier 1 capital fromthe Capital Strengthening Plan

the pro-forma Tier 1 capital ratio is estimated at 8,1% and the pro-forma Core Tier 1 capital ratio

is estimated at 6,0%

Taking into account the full completion of the Capital Strengthening Plan with the additional placement ofup to237 mn

the pro-forma Tier 1 capital ratio is estimated at 9,1% and the pro-forma Core Tier 1 capital ratiois estimated at 6,9%


22/33

22

Bank of Cyprus

A leader inInternational BankingServices






Why Cyprus?


23/33

23

International Banking Services Sector

International Banking Services (IBS)

International Business Units (IBUs)

8 IBUs Small focused Customer Service Teams

Highly educated, multilingual and

specialised Business Relationship Bankers

6 Representative Offices


24/33

24

International Banking Services Sector

ISO 9001-2008 (Mar 2009)

&

EFQM Excellence model (Oct 2011) Committed to excellence level

Bank of CyprusInternational Banking Services

has been assessed and found in conformitywith the requirements of:


25/33

25

International Business Units (IBUs)

International Business Units


26/33

26

International Business Units

Provide personal and specialized, high quality service to: Companies registered in Cyprus or other jurisdictions

Non-resident individuals

Qualified, highly trained and experienced staff (English, Russian,French, German, Chinese and other foreign language speakers)

All clients serviced by a personal Customer Relationship Banker

Extended working hours 07:30 18:00

Confidentiality and trust

State-of-the-art technology

Paperless Banking, Efficiency, Accuracy

High Service Quality Targets annually reviewed based on: External customer surveys Internal customer surveys Focus Groups


27/33

27

Representative Offices

Moscow St. Petersburg Ekaterinburg

Kiev Ukraine

Johannesburg South Africa

Belgrade Serbia

India

Russia


28/33

28

Products and Services offered by the IBUs

Traditional Banking Services

Bank accounts International Payments Commercial loans Housing loans Facilities to trade Debit / credit cards Internet banking International factoring Forex / Hedging

Insurance (life & general)

Specialised Products

Trust Accounts

Escrow Accounts

Brokerage

Private Banking Products

Treasury related products

Custody services

Institutional Wealth

Management Discretionary Asset

Management


29/33

29

Account Management

Access to accounts:

Internet Banking

Mobile Banking

Cards

ATMs Branch Network

Secure payment instructions:

by internet

by fax


30/33

30

1bank

Telephone

Mobile Banking

Internet

Transfer between accounts International transfers

Batch payments

Digipass Device for secureaccess

Online account details and balances

Past transactions

Online view of status of transactions /payments

Statement ordering

Interest certificates


31/33

31

Digipass Device

Enhances level of security Generates one-time dynamic codes Multiple signatures

used for: Access to Internet Banking Third party transfers

Faxed instructions coding


32/33

32


Thank you


33/33

Key information and contact detailsParticipation in indices:

CSE General Index , FTSE/CySE 20

FTSE/ATHEX Top 20FTSE Med 100, MSCI GreeceIndex,

FTSE New EU

DJ STOXX EU Enlarged TMI

Listing:

ATHEX BOCCSE BOCYISIN CY0000100111

www bankofcyprus com

Contacts

Louis PochanisSenior Manager


Tel: +357 22 121730Email: [email protected]
mailto:[email protected]:[email protected]

bank of cyprus presentation - may 2012

Documents