Alpha Bank S.a. · ATHEX:ALPHA
Alpha Bank — Q2 2023 Earnings Presentation
76 slides from Alpha Bank's earnings presentation, Aug 9, 2023
Slide 1: Alpha Bank Q2 2023 Results
Alpha Bank Q2 2023 Results Investor Presentation 9th August 2023
Slide 2: Disclaimer
Disclaimer Systemic bank established in 1879 This presentation has been prepared and issued by Alpha Services and Holdings S.A. and its 100% subsidiary, Alpha Bank S.A., solely for informational purposes. It is hereby noted that on 16.4.2021, the demerger of the credit institution under the former n
Slide 3: Pages
Pages • Business Update 3 • Financial Performance Analysis 10 Alpha Bank • Appendix ▪ Macroeconomic Update 28 ▪ P&L 32 ▪ Volumes 36 ▪ Asset Quality 47 ▪ Capital 52 ▪ ESG 56 ▪ Segmental Information 61 3
Slide 4: The trusted relationship bank of Greece
The trusted relationship bank of Greece Our Identity and Strengths… …are reflected in our customer proposition Privately owned since inception Clients perceive Alpha Bank as more reliable, stable, humane and accessible with a mindset to deliver shareholder value and inspire We are renowned for quali
Slide 5: We are well on track to achieve our business plan ambitions
We are well on track to achieve our business plan ambitions H1 2023 Performance Key financial targets Profitability Return on Tangible Equity1 Return on Tangible Equity1 • +4% q/q net interest income 12.2% in H1 2023; 13.2% in Q2 >12% in 2025 • +10% q/q fees EPS2 EPS2 growth • 44.2% cost-income rati
Slide 6: Our six strategic priorities for 2025
Our six strategic priorities for 2025 1 2 3 4 5 6 Boost digital and focus Revamp service Consolidate Improve return on Maintain the resilience Leverage on high-value model to increase leadership in deployed capital in of our balance ESG for segments in Retail penetration in Wealth Wholesale Internat
Slide 7: Focus on Retail
Focus on Retail Boost digital and focus on high-value segments KYC activity evolution per channel (in # clients m) Launch of Service KEY ACHIEVEMENTS Migration Initiative 0.5 New service model roll-out underway • new branch structure announced +29% 0.4 • c50 branches with new customer access model 5
Slide 8: Focus on Balance sheet resilience
Focus on Balance sheet resilience Capital buffers expanding, NPE plan de-risk, liquidity strengthened +€1bn of regulatory capital equivalent in H1 MREL well above interim non-binding targets 24% 18.0% 14.9% 4.4% +3.1% €0.6bn 22% KEY ACHIEVEMENTS 3.0% Step change in regulatory capital 11.9% 13.6% CAD
Slide 9: Uplift in business units’ profitability and reallocation of capital driving improvement in Group returns
Uplift in business units’ profitability and reallocation of capital driving improvement in Group returns Wealth & NPAs5 & Retail Wholesale3 International Group Treasury4 Other 16.5% 31% 30% 12.2% Business Unit 24% 21% (4.3%) ROCET11 18% 20% 9.5% FY 22 10% 11% H1 23 (19%) (22%) 6 ROCET1 ROCET1 Deferr
Slide 10: Pages
Pages • Business Update 3 • Financial Performance Analysis 10 Alpha Bank • Appendix ▪ Macroeconomic Update 28 ▪ P&L 32 ▪ Volumes 36 ▪ Asset Quality 47 ▪ Capital 52 ▪ ESG 56 ▪ Segmental Information 61 10
Slide 11: Q2 2023 Group Profit & Loss
Q2 2023 Group Profit & Loss Reported Profit After Tax Profit & Loss H1 23 H1 22 y/y Q2 23 Q1 23 q/q +63% +72% (€ mn) €191mn Net Interest Income 864 582 49% 440 424 4% Net fee and commission Income 185 204 (9%) 97 88 10% €117mn €111mn €93mn Trading & Other Income 66 144 (54%) 42 24 73% €63mn Operatin
Slide 12: Q2 2023 Group Balance Sheet
Q2 2023 Group Balance Sheet Tangible Book Value Balance Sheet Jun-23 Mar-23 Jun-22 q/q Group, € mn (€ bn) +7% +4% 6.1 Assets 72.9 73.7 75.8 (0.8) 5.9 Securities 15.5 14.7 12.4 0.9 5.8 5.7 5.7 Cash & Cash Balances 6.6 8.3 11.6 (1.7) Net Loans 38.7 38.2 38.1 0.5 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 ECB balan
Slide 13: Top line benefitting from rates, Cost of Risk at 76bps
Top line benefitting from rates, Cost of Risk at 76bps Net Interest Income Net fee and commission income Group, € mn Group, € mn 98 92 97 97 424 440 1 88 0 396 42 13 0 0 42 337 37 301 32 33 92 96 88 97 382 398 86 359 268 304 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 NPE Net Interes
Slide 14: Loans repricing in line with expectations; total deposit beta at 13%
Loans repricing in line with expectations; total deposit beta at 13% Interest Income / Interest Expense breakdown1 Performing Corporate loan spreads2 Group, € mn Greece, % +46% +3% 440 Alpha Bank 3.55% 3.49% 428 42 o/w ~25% Peer avg from NPE 3.20% transactions 3.14% 3.07% 3.05% Peer 1 42 74 pending
Slide 15: Fees up 10% q/q on higher levels of activity
Fees up 10% q/q on higher levels of activity Group Segments 98 97 97 98 97 97 92 1 0 92 13 0 88 88 0 29 30 35 31 33 26 25 26 33 29 12 15 14 14 14 5 5 5 30 29 31 27 24 6 5 30 27 30 25 27 20 18 22 21 21 17 19 20 15 18 10 11 11 11 11 0 2 0 2 0 3 0 3 0 3 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2 22 Q3 22 Q4 22 Q
Slide 16: Recurring costs up 3% q/q on track to deliver yearly targets
Recurring costs up 3% q/q on track to deliver yearly targets Group Segments 257 257 242 0 240 242 240 231 233 231 233 9 0 0 0 95 113 110 99 101 95 93 96 95 101 38 33 34 122 39 37 98 100 97 104 22 24 21 21 20 48 49 45 43 44 39 38 39 40 42 23 23 26 21 22 6 7 9 11 14 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2 22
Slide 17: Performing loans up 3% y/y driven by Wholesale and International
Performing loans up 3% y/y driven by Wholesale and International Performing loan book expansion Net credit expansion Group, € bn Greece, € bn +3% +2% +0.1% (1%) +1% 31.4 31.4 31.5 0.2 30.6 31.1 0.5 0.1 0.1 0.7 4.0 4.1 4.2 0.1 0.1 0.1 4.0 4.2 0.1 2.2 Disbursements 1 1.8 1.9 1.9 1.6 7.6 7.6 7.6 7.6 7.
Slide 18: Deposits +7% y/y boosting liquidity; mix shift better than expected
Deposits +7% y/y boosting liquidity; mix shift better than expected Deposits evolution Mix towards Time deposits Group, € bn Greece, € bn YoY +€3.3bn QoQ 45.0 45.8 €1.6bn 44.6 44.5 43.1 1% 2% 1% 2% State 1% 0.4 0.9 0.2 51.8 13% 16% 50.2 48.5 Time 14% 20% 23% 5.7 6.0 International 5.4 44.5 45.8 Greec
Slide 19: Uplift in profitability as deposit beta remains subdued
R E TA I L Uplift in profitability as deposit beta remains subdued Key figures REVENUES / VOLUMES PROFITABILITY (in €mm) H1’23 H1’22 ∆difference, % Net loans 9,014 9,260 (3%) + €120mn + €0.7bn Revenues (H1/H1) Deposits (YTD) Deposits 33,347 30,984 8% Total revenues 371 251 48% + €87mn + €0.8bn Profi
Slide 20: Volumes affected by repayments; Profitability expands
WHOLESALE Volumes affected by repayments; Profitability expands Key figures REVENUES / VOLUMES PROFITABILITY (in €mm) H1’23 H1’22 ∆difference, % Net loans 18,170 17,790 2% + €32mn (€0.2bn) Revenues (H1/H1) Deposits (YTD) Deposits 8,471 7,942 7% Total revenues 355 324 10% + €26mn +€0.1bn4 Profits3(H1
Slide 21: AuMs and Securities +€2bn; Recurring revenues replace trading gains
W E A LT H & T R E A S U R Y AuMs and Securities +€2bn; Recurring revenues replace trading gains Key figures REVENUES / VOLUMES PROFITABILITY (in €mm) H1’23 H1’22 ∆difference, % Assets under 13,103 10,152 29% + €2mn + €2.1bn Management Revenues (H1/H1) AUMs (YTD) Securities 15,502 12,395 25% Total r
Slide 22: Loan growth at 6%; top line benefiting from excess liquidity
I N T E R N AT I O N A L Loan growth at 6%; top line benefiting from excess liquidity Key figures REVENUES / VOLUMES PROFITABILITY (in €mm) H1’23 H1’22 ∆difference, % Net loans 4,238 3,992 6% + 53€mn +0.2€bn Revenues (H1/H1) Deposits (YTD) Deposits 5,956 5,394 10% Total revenues 160 108 49% + 39€mn
Slide 23: NPAs and Other operations
NPAs and Other operations Non Performing Assets (NPAs) Other (in €mm) H1’23 H1’22 ∆difference, % (in €mm) H1’23 H1’22 ∆difference, % Net loans 2,212 2,436 (9%) Assets 4,066 4,158 (2%) Assets 3,945 5,088 (22%) TBV 843 748 13% Total revenues 54 72 (25%) Total revenues 9 13 (31%) Recurring Operating Re
Slide 24: Asset Quality environment remains benign
Asset Quality environment remains benign NPE 0.0 (0.0) (0.1) (0.2) 0.0 Cost of Risk formation bps (over net loans) Greece, € bn 94 93 15 16 75 76 61 14 13 20 74 71 56 55 0.1 Mainly single case 35 0.35 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 0.30 0.24 Servicing fees Securitization expenses Underlying 0.18 0.18
Slide 25: Organic capital generation at 0.7% in Q2; +c20bp to come from remaining performing loan securitizations
Organic capital generation at 0.7% in Q2; +c20bp to come from remaining performing loan securitizations Fully Loaded CET1 q/q % 0.6% 0.3% 0.6% (0.1%) (0.1%) 0.0% 13.5% 13.4% 13.6% 0.7% Organic Capital Generation 12.3% Mar-23 Q2 23 DTA DTC RWAs Other capital Transactions Jun-23 Jun-23 post Jun-23 org
Slide 26: Ahead of requirements with capital buffers expanding
Ahead of requirements with capital buffers expanding 24.3% 22.4% 18.0% 14.9% 14.7% 13.6% 0.8% 11.9% 2.0% 0.6% 24.3% 9.9% 22.4% CCyB 1.5% 0.2% P2R 1.7% 18.0% 1.0% 14.9% O-S II 13.6% CCB 2.5% Pillar 1 4.5% 1 1 1 2023 CET1 H1 2023 CET1 2023 T1 Required H1 2023 T1 2023 OCR H1 2023 CAD 2024 non-binding H
Slide 27: Summary of Financial Targets
Summary of Financial Targets Previous guidance Current guidance As per Investor Day H1 2022 2023 2023 2025 2023 Total Revenues (€ bn) 2.0 1.1 c.2.1 > 2.2 c.2.3 Cost-Income Ratio 55% 44% < 47% < 45% c. 40% Cost of Risk 76bps 76bps < 85bps c. 80bps < 70bps ROTE1 7.5% 12.2% c. 10% > 11% > 12% EPS2 (€)
Slide 28: Pages
Pages • Business Update 3 • Financial Performance Analysis 10 Alpha Bank • Appendix ▪ Macroeconomic Update 28 ▪ P&L 32 ▪ Volumes 36 ▪ Asset Quality 47 ▪ Capital 52 ▪ ESG 56 ▪ Segmental Information 61 28
Slide 29: Improved market sentiment and solid growth dynamics
Improved market sentiment and solid growth dynamics GGB spreads and ASE index improve; one notch below Economic activity and business sentiment investment grade 17.5 75 3.0 1600 15.0 70 1400 12.5 2.5 Fitch: BB+ 65 10.0 1200 7.5 60 2.0 5.0 S&P: BB+ 55 1000 2.5 1.5 0.0 50 800 -2.5 45 1.0 -5.0 600 -7.5
Slide 30: Inflationary pressures recede mainly due to declining energy prices
Inflationary pressures recede mainly due to declining energy prices whereas consumers’ price expectations de-escalate Progressive de-escalation of headline inflation Consumers’ price expectations over the next 12 months 70 15.0 75 60 12.5 50 10.0 50 40 7.5 30 5.0 25 2.5 20 0.0 0 10 -2.5 0 -5.0 -25 -
Slide 31: Real estate prices on a steep rise
Real estate prices on a steep rise Residential real estate prices remained on an upward trajectory Commercial real estate prices continued to rise in 2022 in Q1 2023 10% 16% 100 8% 12% 6% 90 4% 8% 80 2% 4% 0% 70 -2% 0% -4% 60 -4% -6% 50 -8% -8% -10% -12% 40 -12% I II ΙΙΙIV I II ΙΙΙIV I II ΙΙΙIV I II
Slide 32: Pages
Pages • Business Update 3 • Financial Performance Analysis 10 Alpha Bank • Appendix ▪ Macroeconomic Update 28 ▪ P&L 32 ▪ Volumes 36 ▪ Asset Quality 47 ▪ Capital 52 ▪ ESG 56 ▪ Segmental Information 61 32
Slide 33: Loan and deposit spreads
Loan and deposit spreads Net loan balances & spreads Deposit mix & cost evolution € bn bps, € bn 220 275 131 359 17 (38) % Total 333 350 320 313 50.8 50.2 51.8 309 48.5 50.1 300 9.1 9.0 10.4 13.0 14.8 29% 38.9 38.7 38.2 38.7 38.1 End of 250 39.4 41.1 40.4 37.2 37.0 71% quarter balances Q2’22 Q3’22 Q
Slide 34: Operating Expenses
Operating Expenses Group, € mn Q2 23 Q1 23 qoq % Recurring Operating Expenses evolution €mn Staff costs (94.7) (96.2) (1.6%) 257 242 231 233 240 General Administrative (103.6) (96.9) 7.0% 95 expenses 95 93 96 95 Staff costs Depreciation and General (42.1) (40.2) 4.7% amortisation Administrative 108
Slide 35: Alpha Bank Group
Alpha Bank Group qoq% yoy% (€ mn) Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 change change Net interest income 440.1 423.6 396.0 336.9 300.5 3.9% 46.4% Net fee and commission income 97.1 87.9 97.2 92.1 98.4 10.5% (1.3%) Income from financial operations 28.9 14.3 7.5 62.6 4.4 … … Other Income 13.0 9.9 9
Slide 36: Pages
Pages • Business Update 3 • Financial Performance Analysis 10 Alpha Bank • Appendix ▪ Macroeconomic Update 28 ▪ P&L 32 ▪ Volumes 36 ▪ Asset Quality 47 ▪ Capital 52 ▪ ESG 56 ▪ Segmental Information 61 36
Slide 37: Balance sheet composition
Balance sheet composition Asset split Liabilities and Equity split € bn € bn 73.7 72.9 73.7 72.9 Cash 8.3 Cash 6.6 5.0 ECB 9.0 ECB 2.4 Due to Banks Due from Banks 1.2 Due from Banks 1.6 Due to Banks excl. ECB 1.6 excl. ECB Time Securities 14.7 Securities 15.5 Time 14.8 13.0 Deposits Deposits 50.2 51
Slide 38: New disbursements in Q2 2023
New disbursements in Q2 2023 Performing loans New disbursements – per category Greece, € bn Greece, € mn Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Beginning of period 24.8 25.8 26.7 27.4 27.3 26.9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 21 21 21 21 22 22 22 22 23 23 Disbursements 2.4 1.9 2.0 2.3 1.7 2.0 Individuals
Slide 39: Breakdown of loans portfolio – June 2023
Breakdown of loans portfolio – June 2023 Total Group loans – per segment Group Loans portfolio structure1 € bn € bn Consumer loans Small Business loans 4% 5% Transportation Households Credit Cards Mortgages 11% 30% 3% 23% Manufacturing 10% €39.8bn €39.8bn Trade 9% Other Tourism 19% 7% Agriculture Wh
Slide 40: Securities portfolio breakdown
Securities portfolio breakdown Securities portfolio breakdown Group, Book value, Jun-23, € bn ▪ The “Other/ECB eligible” bonds of €7.6bn is broken down to the following T-bills Mutual Funds & Equities categories: 0.9 0.5 o/w 12.9bn • €4.2bn other sovereign bonds HQLAs • €0.5bn bonds issued by supran
Slide 41: Securities portfolio evolution
Securities portfolio evolution Portfolios evolution H1 2023 New investments Group, Book value € bn Group % of total 12% 10% 11% 14% 14% 14% 14% 16% 16% 17% 20% 21% assets €15.0bn Other €14.3bn €13.1bn 12% €12.8bn Mod. Duration €12.1bn c.3Y €10.4bn €10.6bn €9.9bn 46% GGBs/T-Bills HQLAs €8.7bn 13% 33%
Slide 42: Deposits flow per quarter
Deposits flow per quarter Alpha Bank deposits evolution in Greece Deposits breakdown – June 2023 Greece, € bn Q3: Q4: Q1: Q2: €1.5bn €0.4bn (€0.5bn) €1.4bn Time 1.5 45.8 25% 1.8 44.6 1.1 45.0 2.5 44.5 43.1 (0.3) (0.7) (0.1) (3.1) Δ Core Δ Time 75% Core Jun-22 Core Time Sep-22 Core Time Dec-22 Core T
Slide 43: ECB Balances and Liquidity metrics
ECB Balances and Liquidity metrics ECB balances Group LCR & LDR Group, € bn % % over 18% 17% 17% 12% 7% Total Assets 176% 163% 161% 161% 164% 13.0 13.0 13.0 ECB Collateral pledged ▪ Credit claims LCR ▪ GGBs & T-bills LDR ▪ Other bonds 9.0 79% 78% 76% 76% 75% 13.1 TLTRO 5.0 11.9 12.0 11.2 Commercial
Slide 44: Wealth management
Wealth management Asset Management balances Private Banking Group, € bn Group, € bn 13.1 12.1 7.5 11.0 7.0 6.6 6.8 10.2 10.4 4.7 6.4 2.0 4.4 1.9 4.0 2.1 3.9 2.3 2.4 3.9 2.7 2.1 2.6 1.9 2.3 1.9 1.8 1.9 1.9 1.8 1.3 1.4 4.9 1.0 4.4 0.7 0.7 3.8 4.0 4.0 1.6 1.7 1.8 2.0 1.5 0.6 0.6 0.7 0.7 0.8 Jun-22 Sep-
Slide 45: Business Volumes
Business Volumes (€ mn) Jun 2023 Mar 2023 Dec 2022 Sep 2022 Jun 2022 % YoY Group Gross Loans 39,787 39,327 39,922 40,055 39,333 1.2% Mortgages 9,198 9,285 9,356 9,378 9,409 (2.2%) Consumer Loans 1,553 1,564 1,617 1,646 1,667 (6.8%) Credit Cards 1,015 1,004 1,048 1,009 1,057 (4.0%) Small Business Loa
Slide 46: Digital acceleration to build on a good transactional starting base
Digital acceleration to build on a good transactional starting base Digital KPIs Individuals Active Users (in m.)1 1 Acquisition +7.3% 1.42 1.43 1.45 1.48 1.32 1.33 1.38 1.20 1.23 1.28 1.11 1.17 0.971.07 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 2 Usage 96%
Slide 47: Pages
Pages • Business Update 3 • Financial Performance Analysis 10 Alpha Bank • Appendix ▪ Macroeconomic Update 28 ▪ P&L 32 ▪ Volumes 36 ▪ Asset Quality 47 ▪ Capital 52 ▪ ESG 56 ▪ Segmental Information 61 47
Slide 48: Gross organic NPE formation in Greece per segment
Gross organic NPE formation in Greece per segment Gross formation (Organic) - Wholesale Gross formation (Organic) - Retail Greece, € mn Greece, € mn 97 334 80 1 70 44 24 (29) (30) (39) (22) (52) (70) (186) (192) (155) (284) (254) (461) (994) 2018 2019 2020 2021 2022 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 201
Slide 49: Auctions and repossession activity evolution
Auctions and repossession activity evolution Auctioned properties (Conducted) per quarter ▪ During 1H 2023, the Bank continued with its disinvestment strategy 3.871 through the completion of €24mn REO sales in Greece and €138mn in Cyprus (including Project Sky). Sales in Greece included both commerc
Slide 50: Detailed overview of Alpha Bank’s asset quality by portfolio - Greece
Detailed overview of Alpha Bank’s asset quality by portfolio - Greece (€ bn) Wholesale SBL Mortgages Consumer Total Gross loans 23.8 2.2 7.1 2.2 35.4 (-) Accumulated Provisions (0.3) (0.2) (0.3) (0.2) (1.1) Net loans 23.6 1.9 6.8 2.0 34.3 NPLs 0.2 0.4 0.5 0.3 1.4 NPL ratio 0.8% 17.1% 7.7% 11.5% 3.8%
Slide 51: Detailed overview of Alpha Bank’s asset quality by portfolio - Group
Detailed overview of Alpha Bank’s asset quality by portfolio - Group (€ bn) Wholesale SBL Mortgages Consumer Total Gross loans 25.8 2.2 9.2 2.6 39.8 (-) Accumulated Provisions (0.3) (0.2) (0.4) (0.3) (1.2) Net loans 25.5 1.9 8.8 2.3 38.6 NPLs 0.2 0.4 0.6 0.3 1.5 NPL ratio 0.8% 17.0% 6.8% 11.2% 3.8%
Slide 52: Pages
Pages • Business Update 3 • Financial Performance Analysis 10 Alpha Bank • Appendix ▪ Macroeconomic Update 28 ▪ P&L 32 ▪ Volumes 36 ▪ Asset Quality 47 ▪ Capital 52 ▪ ESG 56 ▪ Segmental Information 61 52
Slide 53: Fully loaded Regulatory Capital
Fully loaded Regulatory Capital Equity to fully loaded regulatory capital bridge € mn 8.9% Tangible book value / Tangible Assets 6,577 6,073 (504) 1,000 5,740 400 4,740 64 4,340 (1,797) Ordinary Equity Intangibles Tangible DTA deduction Other CET1 AT1 & Hybrids Tier 1 Lower Tier II Total CAD Book Va
Slide 54: Group RWAs and Regulatory Capital
Group RWAs and Regulatory Capital Group Risk Weighted Assets – Fully Loaded Credit Risk Weights per portfolio € bn % -€1.47bn 33.9 (0.1) 32.5 101% 0.5 3.1 (1.4) 0.0 0.4 3.1 50% 54% 30.3 29.0 Performing Net NPE Total Loan Portfolio Mar-23 Credit Market Operational Jun-23 RWA Density Credit Market Ope
Slide 55: Further progress towards meeting MREL Requirements
Further progress towards meeting MREL Requirements 27.18% ▪ €500mn Senior Preferred Bond issued in June 2023: 6NC5, 6.875% coupon €0.9 bn vs. 3.58% 24.34% 2026 MREL Target ▪ Further progress towards final MREL targets in a sustainable fashion 4.4% surplus to non- ▪ No subordinated MREL requirement 5
Slide 56: Pages
Pages • Business Update 3 • Financial Performance Analysis 10 Alpha Bank • Appendix ▪ Macroeconomic Update 28 ▪ P&L 32 ▪ Volumes 36 ▪ Asset Quality 47 ▪ Capital 52 ▪ ESG 56 ▪ Segmental Information 61 56
Slide 57: 2023 is a pivotal year in our journey to Net Zero
2023 is a pivotal year in our journey to Net Zero 2019 2021 2022 Q1 2023 Q2 2023 H2 2023 Alpha Bank 1st UNEP FI report Climate Risk ESG strategy NetZero Banking Set Science becomes & targets Management incorporated in Alliance Based Targets UNEP FI disclosure set-up Business Plan commitment for Fina
Slide 58: We continue to align with the expectations of our stakeholders…
We continue to align with the expectations of our stakeholders… Stakeholders Goals Initiatives SDG alignment Investors Alignment of financial • Define strategy focused on using sustainable lending to secure ROE and define Science Based impacts with Paris Targets Agreement • Develop Green Bond framew
Slide 59: …culminating in our new Sustainability Strategy
…culminating in our new Sustainability Strategy Leverage Sustainability as a key growth driver Support an environmentally Foster healthy economies Ensure robust & transparent sustainable Economy and Societal progress Governance • Align our portfolio emissions to Net Zero • Enhance people’s financial
Slide 60: Alpha Services & Holdings ESG Improved Rating profile
Alpha Services & Holdings ESG Improved Rating profile Memberships Alpha Services & Holdings has achieved Prime Status in May 2023 following dedicated engagement with ISS. Performance Score improved to 50.83 from 35.79, resulting in ISS Corporate ESG Rating “C”. Improvement to focus on the sustainabi
Slide 61: Pages
Pages • Business Update 3 • Financial Performance Analysis 10 Alpha Bank • Appendix ▪ Macroeconomic Update 28 ▪ P&L 32 ▪ Volumes 36 ▪ Asset Quality 47 ▪ Capital 52 ▪ ESG 56 ▪ Segmental Information 61 61
Slide 62: Summary segments
Summary segments Non Performing Greece International Other Assets Wealth Management Retail Wholesale & Treasury H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 Net interest income 299 183 289 239 111 34 125 77 38 58 1 (9) Net commission income 62 63 53
Slide 63: Greece
Greece € mn Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net interest income 234 262 321 340 360 Net commission income 86 79 83 74 83 Total revenue 334 421 423 430 461 Recurring operating expenses (170) (158) (174) (153) (159) One-off costs 1 (1) (9) (38) (8) Provisions (23) (30) (14) (16) (36) Profit Af
Slide 64: Retail
Retail € mn Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net interest income 92 104 141 147 152 Net commission income 35 33 31 29 33 Total revenue 128 142 179 182 189 Recurring operating expenses (110) (101) (113) (99) (101) One-off costs 1 (0) (6) (30) (2) Provisions (18) (23) (13) (11) (22) Profit Afte
Slide 65: Wholesale
Wholesale € mn Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net interest income 124 131 147 142 147 Net commission income 31 27 30 24 29 Total revenue 160 163 180 169 187 Recurring operating expenses (39) (37) (38) (33) (34) One-off costs (1) (1) (2) (5) (5) Provisions (4) (6) 0 2 (11) Profit After Tax 1
Slide 66: Wealth management & Treasury
Wealth management & Treasury € mn Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net interest income 19 27 34 50 61 Net commission income 20 18 22 21 21 Total revenue 46 116 64 79 85 Recurring operating expenses (21) (20) (22) (21) (24) One-off costs 0 0 (0) (3) (2) Provisions (0) (1) (1) (7) (3) Profit Af
Slide 67: International
International € mn Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net interest income 40 44 53 60 65 Net commission income 10 11 11 11 11 Total revenue 54 58 71 76 84 Recurring operating expenses (43) (44) (48) (49) (45) One-off costs 0 0 0 0 0 Provisions 11 7 (10) 2 (2) Profit After Tax 23 20 22 27 33 Nor
Slide 68: International – Romania
International – Romania € mn Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net interest income 29 30 32 34 35 Net commission income 7 7 7 6 7 Total revenue 39 38 41 43 46 Recurring operating expenses (27) (27) (32) (33) (30) One-off costs 0 0 0 0 0 Provisions 6 8 (7) 2 (2) Profit After Tax 15 15 2 11 12 N
Slide 69: International – Cyprus
International – Cyprus € mn Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net interest income 6 9 15 19 24 Net commission income 3 4 4 4 4 Total revenue 12 15 24 27 32 Recurring operating expenses (13) (13) (12) (13) (13) One-off costs 0 0 0 0 0 Provisions 6 (1) (3) 0 (1) Profit After Tax 5 1 10 15 18 Nor
Slide 70: Non Performing Assets
Non Performing Assets € mn Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net interest income 29 30 21 22 16 Net commission income 2 2 3 3 3 Total revenue 31 33 20 28 26 Recurring operating expenses (23) (23) (26) (21) (22) One-off costs 0 0 (3) (0) (0) Provisions (79) (38) (66) (65) (38) Profit After Tax
Slide 71: Other
Other € mn Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Net interest income (2) 1 1 2 (1) Net commission income 0 (0) 0 0 0 Total revenue 3 4 (5) 2 8 Recurring operating expenses (6) (7) (9) (11) (14) One-off costs (7) 6 (5) (0) (2) Provisions 0 (0) (0) 0 (0) Profit After Tax (6) (20) (29) (9) (6) Normal
Slide 72: Glossary (1/4)
Glossary (1/4) Reference Terms Definitions Relevance of the metric Abbreviation number Accumulated Provisions and Sum of Provision for impairment losses for loans and advances to customers, the Provision for impairment losses for the total amount of off balance Standard banking 1 LLR FV adjustments
Slide 73: Glossary (2/4)
Glossary (2/4) Reference Terms Definitions Relevance of the metric Abbreviation number Sum of Gains less losses on derecognition of financial assets measured at amortised cost and Gains less losses on financial transactions, as "Income from financial derived from the Consolidated Income Statement of
Slide 74: Glossary (3/4)
Glossary (3/4) Reference Terms Definitions Relevance of the metric Abbreviation number Normalised profits between financial year 2022 and 2021 are not comparable due to initiation of a new normalized profits procedure effective since 1.1.2022 which does not exclude specific accounts such as the trad
Slide 75: Glossary (4/4)
Glossary (4/4) Reference Terms Definitions Relevance of the metric Abbreviation number Profit/ (Loss) after income tax from continuing operations (41) for the period, less Impact from NPA transactions (13), plus Profit/ (Loss) after Profit/ (Loss) attributable to 43 income tax from discontinued oper
Slide 76: Alpha Bank Contacts
Alpha Bank Contacts Lazaros Papagaryfallou General Manager – CFO +30 210 326 2261 cfo-office@alpha.gr Iason Kepaptsoglou Stella Traka Selini Milioni Head Manager Senior Investor Relations Division Investor Relations Division Investor Relations Officer +30 210 326 2271 +30 210 326 2274 +30 210 326 22