European Banks: The Question Bank – key topics for discussions with management teams

Research evidence excerpt

European Banks: The Question Bank – key topics for discussions with management teams

18 May 2026

Banks

European Banks

Bank of Cyprus

Questions for management

n NII: With NII stabilising in 1Q26 and the FY26 outlook reiterated at

c.EUR720mn on a 2% ECB deposit rate assumption, could you elaborate on

the potential upside to this target given the higher forward rates now and

how this can impact the subsequent 3% CAGR growth target? What is the

strategy for dynamically managing hedging portfolio, which now covers

48% of interest-earning assets, in the current uncertain rate environment?

n Loan growth: With the reiterate loan book growth outlook of 5% in FY26;

what are the underlying assumptions regarding the resilience of domestic

and international demand, particularly in the corporate and retail housing

sectors, amid the heightened geopolitical uncertainty and its potential

impact on the Cypriot economy? Furthermore, how does the planned

acquisition of c.EUR150mn in performing loans from CDB Bank, expected

to complete by end-2026, factor into this growth trajectory and what are the

expectations for synergies and profitability from this portfolio?

n Other revenues: Following the Ethniki Cyprus Insurance acquisition, what

is your updated strategy for the insurance business to achieve high-single

digit CAGR? How will fee income from new initiatives (e.g. Jinius and

Privilege) be increased, leveraging transactions and AuM?

n Costs & efficiency: What are the primary drivers for the projected increase

in cost-to-income towards 40% in 2026-28? What specific IT investments

are planned, and how will staff cost inflation be mitigated?

n Asset quality: What factors support the reiterated cost of risk guidance of

40-50 bps, especially given the release of provisions in 1Q26 and