Bank of Cyprus : Update on Project Helix - Agreement for the sale of a portfolio of non-performing loans

Announcement

Update on Project Helix - Agreement for the sale of a portfolio of non-performing loans

Nicosia, 19 March 2019

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014

Group Profile

The Bank of Cyprus Group is the leading banking and financial services group in Cyprus, providing a wide range of financial products and services which include retail and commercial banking, finance, factoring, investment banking, brokerage, fund management, private banking, life and general insurance. The Bank of Cyprus Group operates through a total of 112 branches in Cyprus. Bank of Cyprus also has representative offices in Russia, Ukraine and China. The Bank of Cyprus Group employs 4,146 staff worldwide. At 31 December 2018, the Group's Total Assets amounted to €22.1 bn and Total Equity was €2.4 bn. The Bank of Cyprus Group comprises Bank of Cyprus HoldingsPublic Limited Company, its subsidiary Bank of Cyprus Public Company Limited and its subsidiaries.

Further to the announcement of 28 August 20181in relation to the agreement for the sale of a portfolio of non-performing loans, known as "Project Helix", or the "Transaction", Bank of Cyprus Holdings Public Limited Company ("BOCH" and,together with itssubsidiaries, the "Group") announces that it has received approval from the ECB for the Significant Risk Transfer ("SRT") benefit from the Transaction.

This is an important step towards completion of the Transaction, which remains subject to various outstanding conditions precedent2. Completion is currently expected to occur in early 2Q2019.

As previously reported,the Transaction reduces the Group's non-performingexposures (NPEs) by €2.7 bn and improves the NPE ratio from 47% to 36%3. The NPE provisioning coverage ratio pro forma for the Transaction stands at 47%3.

On completion, the derecognition of the Helix portfolio is expected to have a positive impact on the capital ratios of 160 basis points3, resulting from the release of risk weighted assets.

Asat 31 December 2018, as previously reported, the Group's phased-in CET1 ratio and Total capital ratio, pro forma for both DTC4and Helix, stood at 15.4% and 18.3% respectively.

For further information, please contact Investor Relations [e-mail].

1Further to the announcement of 28 August 2018 and updates provided with the publication of the Group financial results for

the nine months ended 30 September 2018 and the preliminary Group financial results for the year ended 31 December 2018

2Refer to slide 36 of the presentation for the preliminary Group financial results for the year ended 31 December 2018

published on 4 March 2019

• 3Based on the preliminary Group financial results for the year ended 31 December 2018

• 4DTC refers to the amendments in the legislation adopted by the Cyprus Parliament on 1 March 2019 and published in the

Official Gazette of the Republic on 15 March 2019