Slide 1: 9M 2018 Results
9M 2018 Results November 29, 2018
Slide 2: Table of Contents
Table of Contents Pages I. Macroeconomic Update 4 II. 9M 18 Performance Highlights 8 III. 9M 18 Performance 22 1. Balance Sheet 22 2. Pre Provision Income 24 3. NPE Reduction initiatives/ Asset Quality 28 4. Liquidity 38 5. Capital 40 IV. Appendix 42 9M FY 2013 9M2013 Results 2018Results Results 2
Slide 3: Disclaimer
Disclaimer This presentation has been prepared and issued by Alpha Bank solely for informational purposes. For the purposes of this disclaimer, this presentation shall mean and include materials, including and together with any oral commentary or presentation and any question and answer session. By
Slide 4: I. Macroeconomic Update
I. Macroeconomic Update 9M 2018 Results 4
Slide 5: Growth Dynamics are reflected in both labour and real estate markets
I Growth Dynamics are reflected in both labour and real estate markets GDP growth gathering momentum Youth unemployment declines while long-term unemployment remains rigid (pps) 80 30 4 70 25 3 60 2 20 50 1 40 15 30 0 10 20 -1 5 10 -2 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 -3 Η1 Η2 Η1
Slide 6: Positive economic indicators despite headwinds
I Positive economic indicators despite headwinds Jobs driven recovery without substantial productivity gains ESI and Business Sentiment Across Sectors (% change) 8 ESI 110 6 4 90 2 70 0 Services Industry 50 -2 -4 30 -6 -8 -10 2002 2004 2006 2008 2010 2012 2014 2016 2018f Retail Trade Construction Em
Slide 7: Fiscal Surplus above targets and Current Account almost balanced
I Fiscal Surplus above targets and Current Account almost balanced Primary and General Government Balance (% of GDP) Central Government Primary Balance (January – October, in €bn) 5 50 7 40 6 0 30 5 20 -5 4 10 0 3 -10 -10 2 -20 -15 1 -30 -20 -40 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018f 2
Slide 8: II. 9M 18 Performance Highlights
II. 9M 18 Performance Highlights 9M 2018 Results 8
Slide 9: 9M 2018 Key Highlights
II 9M 2018 Key Highlights Strong Capital Position Continued Progress NPE Loan Disposals on Asset Quality Strong CET1 ratio at 18.3% NPEs in Greece “Jupiter” c. €1.0bn as of September 2018 down by €2.6bn in 2018 “Mercury” c. €1.1bn CET1 Fully-Loaded Group NPE cash coverage at 47% Basel 3 at 15.2% Bot
Slide 10: 9M 2018 Group P&L and Balance Sheet highlights
II 9M 2018 Group P&L and Balance Sheet highlights Profit & Loss 9M 9M yoy % Q3 Q2 qoq % Balance Sheet qoq 2018 2017 change 2018 2018 change 30/09/2018 30/06/2018 31/03/2018 change (€ million) (€ billion) Net Interest Income (NII) 1,329 1,463 (9.1%) 427 459 (7.1%) Assets 60.3 59.0 59.3 1.3 Net Loans
Slide 11: Funding profile on a normalisation path
II Funding profile on a normalisation path Main liquidity figures Funding mix on a normalisation path Mid November YTD change 2018 (€ billion) 7% 0% 1% Covered Bond 1 ECB €3.1bn -0.1 6% 2% ECB 17% 11% ELA funding 2 ELA €0.8bn -6.2 Repos 3 Deposits €38.9bn +4.0 6% Deposits 80% 4 Repos €5.1bn +2.9 5 C
Slide 12: Liquidity position continues to improve
II Liquidity position continues to improve Eurosystem funding evolution Group deposits on positive trend (€ billion) (€ billion) +€3.7bn YTD -€6.3bn +€1.5bn 10.2 38.6 0.4 38.9 1.2 0.3 37.1 34.9 5.9 6.1 5.9 5.6 7.0 0.5 5.5 4.2 2.5 3.9 (1.2) (1.0) 1.1 32.9 (0.3) 0.8 32.7 31.5 29.3 3.2 3.4 3.1 3.1 Dec-
Slide 13: NPE stock in Greece down by €4.4bn y-o-y; Group NPE cash coverage at 47%
II NPE stock in Greece down by €4.4bn y-o-y; Group NPE cash coverage at 47% NPE formation – Greece NPE stock vs. Target – Solo perimeter (€ billion) (€ billion) y-o-y -€4.4bn 26.8 0.68 24.6 22.5 22.2 21.8 (0.64) (2.05) (0.10) (0.4) Sep-17 Jun-18 Entries Exits 1 Held 2 W/offs Sep-18 Sep-18 Δ Dec-18 (
Slide 14: Gross NPE formation in Greece per segment
II Gross NPE formation in Greece per segment Gross NPE formation - Wholesale Gross NPE formation - Retail (€ million) (€ million) 26 65 (42) (28) (90) (105) (1,070) (983) Q1 18 Q2 18 Q3 18 Mercury & Q1 18 Q2 18 Q3 18 Jupiter Jupiter Sale Sale Gross NPE formation - Retail breakdown (€ million) Small
Slide 15: Retail Transformation Plan gathers pace
Retail Transformation Plan gathers pace; Positive first signs on receptiveness and II Longer Term solutions uptake Long Term Incoming Applications and Restructuring Implementations Applications in Denounced Status (€ million) (€ million) Transformation Plan Launch Transformation Plan Launch +70% 631
Slide 16: New NPE reduction plan June 2018 – end 2021
II New NPE reduction plan June 2018 – end 2021 New NPE reduction plan June 2018-2021 – Solo perimeter (€ billion) -€2.5bn NPE ratio 20% -€5.0bn 24.3 21.8 -€8.8bn 16.8 (2.8) (0.6) (1.6) 8.0 Jun-18 Dec-18 Sales & Net Write Downs Dec-19 Dec-21 Actual Target Liquidations Outflows Target Target (starting
Slide 17: Q3 2018 Core PPI performance
II Q3 2018 Core PPI performance PPI q-o-q evolution (€ million) -€25.4mn -9.6% excl. TLTRO -€42.1mn 374 -14.9% 135 351 282 (1) 240 (69) (17) (16) (6) (1) (3) 1 Q2 18 Trading and Q2 18 TLTRO Δ NII Δ Fees Δ Other Δ OPEX Q3 18 Trading Οne-off costs Q3 18 Reported PPI one-off costs Core PPI income Core
Slide 18: NII affected by lower contribution of loans
II NII affected by lower contribution of loans NII q-o-q evolution Net Loans balances & spreads (Group) (€ million) (€ billion) 7.00% -€15.7mn -3.5% 6.50% -€0.5bn 459 -1.1% 6.00% New 43.6 43.3 disbursements 442 5.50% 6 41.5 41.2 40.8 of €2.0bn in 1 427 9M 2018 5.00% (17) (14) 4.39% 4.33% (9) 4.29% 4
Slide 19: Increase in fee generation by 3% y-o-y in 9M period
II Increase in fee generation by 3% y-o-y in 9M period Net Fees & Commissions Income y-o-y Net Fees & Commission Income evolution y-o-y (€ million) (€ million) +3% y-o-y 240.8 +3% 247.9 247.9 Investment Banking & 240.8 10.9 1.0 4.4 5.4 Brokerage 4.4 5.4 42.2 40.7 (1.1) 40.7 42.2 (2.4) (1.5) Asset Ga
Slide 20: Recurring OPEX stable y-o-y
II Recurring OPEX stable y-o-y € million 9M 17 9M 18 yoy % Cost to income ratio at 50.7% for 9M 2018 Staff costs (354) (350) (1.1%) Staff exits in 2018 are expected to reach 765 employees, taking into General expenses (395) (388) (1.7%) account the Voluntary Separation Scheme (VSS) in June 2018,
Slide 21: Market leading capital position with CET1 ratio at 18.3%
II Market leading capital position with CET1 ratio at 18.3% CET1 ratio quarterly evolution (€ million) FLB3 CET1 CET1 CAD excl. DTC law at capital 8,891 8,803 8.6% 8,819 18.5% 18.3% 18.3% 8bps (23bps) (4bps) (2bps) 15.2% €2.6bn buffer over OCR SREP of 12.875% 6.5% for 2018 8.6% CET1 Period AFS RWA i
Slide 22: III. 9M 18 Performance 1. Balance Sheet
III. 9M 18 Performance 1. Balance Sheet 9M 2018 Results 22
Slide 23: Balance Sheet composition
III Balance Sheet composition Asset split Liabilities and equity split (€ billion) (€ billion) 60.3 60.3 59.0 59.0 1.1 ELA Cash 2.5 ELA 1.9 Cash 1.9 3.1 ECB Due from Banks 2.6 3.4 ECB Due from Banks 1.7 Due to Banks Securities Due to Banks 5.5 excl. ECB/ELA 5.6 6.1 4.1 excl. ECB/ELA Securities Time
Slide 24: III. 9M 18 Performance 2. Pre Provision Income
III. 9M 18 Performance 2. Pre Provision Income 9M 2018 Results 24
Slide 25: PPI and NII breakdown
III PPI and NII breakdown Core PPI breakdown Lower contribution of loans to NII (€ million) (€ million) 487 480 444 459 427 89 90 90 83 Bonds & 589 573 70 554 other 536 514 Loans 491 479 306 439 436 427 Funding 278 282 269 Depos (52) (54) (55) (54) (53) 240 (36) (6) (17) (41) (31) 1 Q3 17 Q4 17 Q1 1
Slide 26: Loan and deposit spreads
III Loan and deposit spreads Reduced net loan balances with declining spreads Deposit mix & cost evolution (bps) (62) (61) (61) (57) (54) % Total (bps) 439 433 429 426 415 43.6 43.3 41.5 41.2 40.8 37.1 38.6 (€ billion) 33.9 34.9 35.9 (€ billion) 15.6 17.0 17.2 17.9 46% 14.8 End of End of quarter 19.
Slide 27: Operating expenses
III Operating expenses Recurring Operating Expenses breakdown Recurring OPEX Evolution (€ million) (€ million) -€9.0bn -1.1% 295 283 274 268 272 823 814 25 24 Depreciation & 74 76 25 25 26 amortisation Depreciation & expenses Amortisation 140 149 395 388 126 129 133 G&As General expenses Staff costs
Slide 28: III. 9M 18 Performance 3. NPE Reduction initiatives/ Asset Quality
IIII. 9M 18 Performance 3. NPE Reduction initiatives/ Asset Quality 9M 2018 Results 28
Slide 29: NPE transactions update
III NPE transactions update Size Estimated Completion Transaction details “Project Jupiter” Corporate loan portfolio covered with real estate c. €1.0bn Q4 2018 assets A portfolio of non-performing unsecured consumer “Project Mercury” c. €1.1bn Q4 2018 and small business loans “Individual Corpora
Slide 30: Cross Bank initiatives in place to tackle common exposures
III Cross Bank initiatives in place to tackle common exposures Active management by the 4 systemic banks of cases Launch date: 1st November 2018 Common platform awaiting trial under L.3869, so as to speed up both bilateral Segment: Retail of Katseli law agreements and common exposure modificat
Slide 31: Auctions evolution and outlook - Greece – 9M & October 2018
III Auctions evolution and outlook - Greece – 9M & October 2018 Total number of auctions Auctions conducted per month picking up pace Number of auctions scheduled for 2018 Conducted Suspended % of succesful over conducted auctions 262 1.606 2.692 e-auctions 679 2.013 179 67% 160 161 149 101 417 68 5
Slide 32: Repossession and sales activity in Greece – 9M 2018
III Repossession and sales activity in Greece – 9M 2018 Repossession Activity – Assets book value1 (€ million) Auction activity picking up during Q2 & Q3 due to the significantly reduced suspension rate versus Q1. No. Assets 63 281 The volume of asset repossessions by the Bank is also increasing
Slide 33: NPL stock in Greece down by €3.6bn y-o-y
III NPL stock in Greece down by €3.6bn y-o-y NPL balances evolution - Greece Wholesale Gross NPL formation – Greece 2 (€ billion) (€ million) y-o-y -€3.6bn 18.5 16.6 16.4 16.5 14.9 (2) (14) (21) Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 (675) Q1 18 Q2 18 Q3 18 Jupiter Sale Retail Gross NPL formation per se
Slide 34: Coverage of Group non performing loans
III Coverage of Group non performing loans Evolution of coverage for the Group NPL 53% 135% 126% Business 82% 83% 81% 57% 77% 75% 68% 73% 73% 69% 67% Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Collateral Total NPL Coverage Coverage Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Collateral Total NPL Coverage Coverage 66
Slide 35: NPL Workout Units Analysis and Group forborne loans
III NPL Workout Units Analysis and Group forborne loans Loans perimeter managed by NPL Units NPL Workout Units balances breakdown by segment (€ billion) (€ billion) 23.3 22.1 45.4 Retail Wholesale €15.5bn €6.6bn 7.4 23.1 30.5 15.5 Performing 0.2 4.4 Performing 9.0 NPLs 11.1 3.3 14.7 6.6 3.8 4.4 14.9
Slide 36: Detailed overview of asset quality by portfolio – Greece
III Detailed overview of Alpha Bank’s asset quality by portfolio – Greece (€ billion) Wholesale SBL Mortgages Consumer Total Gross loans 19.3 5.2 15.5 5.3 45.4 (-) Provisions (4.3) (1.8) (2.4) (1.7) (10.2) Net loans 15.0 3.4 13.1 3.6 35.2 NPLs 3.8 3.6 5.7 1.8 14.9 NPL ratio 19.5% 68.7% 36.9% 34.3% 3
Slide 37: Detailed overview of asset quality by portfolio – Group
III Detailed overview of Alpha Bank’s asset quality by portfolio – Group (€ billion) Wholesale SBL Mortgages Consumer Total Gross loans 23.2 5.3 18.9 5.9 53.2 (-) Provisions (5.6) (1.8) (3.4) (1.9) (12.6) Net loans 17.7 3.5 15.5 4.0 40.7 NPLs 5.4 3.6 7.1 2.0 18.2 NPL ratio 23.4% 68.5% 37.5% 34.5% 34
Slide 38: III. 9M 18 Performance 4. Liquidity
III.9M 18 Performance 4. Liquidity 9M 2018 Results 38
Slide 39: Deposits flow per quarter
III Deposits flow per quarter Alpha Bank deposits evolution in Greece Deposits breakdown – September 2018 (€ billion) Q3: Q4: Q1: Q2: €0.9bn €0.9bn €1.2bn €1.2bn Time 43% 0.6 32.7 Core 0.4 31.5 0.6 30.3 0.8 57% 0.7 1.3 0.2 29.3 28.5 (0.4) Δ Time Δ Core Sep-17 Core Time Dec-17 Core Time Mar-18 Core T
Slide 40: III. 9M 18 Performance 5. Capital
III.9M 18 Performance 5. Capital 9M 2018 Results 40
Slide 41: Common Equity Tier I ratio at 18.3%
III Common Equity Tier I ratio at 18.3% CET1 and CAD ratios Equity to regulatory capital bridge (September 2018) (€ million) (€ million) CET1 CAD 12.9% Tangible book value / Tangible Assets 8,803 8,819 18.3% 18.3% 1,053 8,803 6 8,809 9 8,819 15.2% 8,166 7,751 (415) Ordinary Intangibles Tangible Regu
Slide 42: IV. Appendix
IV. Appendix 9M 2018 Results 42
Slide 43: Business Volumes
IV Business Volumes % (€ million) Sep 2018 Jun 2018 Mar 2018 Dec 2017 Sep 2017 Sep 2018 / Sep 2017 Group Gross Loans 53,242 55,432 55,850 56,612 58,529 (9.0%) Mortgages 18,863 18,955 19,161 19,576 19,810 (4.8%) Consumer Loans 4,492 4,902 4,943 5,010 5,581 (19.5%) Credit Cards 1,385 1,521 1,537 1,628
Slide 44: Breakdown of loans portfolio – September 2018
IV Breakdown of loans portfolio – September 2018 Group loans breakdown Loans portfolio structure – Group Electricity supply Other 8% 2% Real estate 3% Leisure 4% Mortgages 35% Wholesale loans Transportation Households 46% 44% 5% €53.2bn €53.2bn Construction 7% Credit Cards 3% Manufacturing 11% Consu
Slide 45: 9M 2018 Loan disbursements in Greece
IV 9M 2018 Loan disbursements in Greece Loan disbursements quarterly evolution per segment (€ million) €1,961mn € million Q1 2018 Q2 2018 Q3 2018 9M 2018 Mortgages 12 15 13 40 732 15 Consumer 21 17 25 63 17 625 Business 570 700 587 1,858 13 603 12 700 25 Total 603 732 625 1,961 21 587 570 Q1 2018 Q2
Slide 46: Wealth Management evolution
IV Wealth Management evolution Alpha Private Bank balances Asset Management balances (€ million) (€ million) 4,242 4,274 4,275 1,318 1,214 1,759 1,719 1,550 164 1,345 298 269 1,043 2,809 2,724 2,338 1,028 888 512 188 224 146 231 252 Sep-16 Sep-17 Sep-18 Sep-16 Sep-17 Sep-18 Discretionary Advisory Ex
Slide 47: SEE Operations
IV SEE Operations 1 (€ million) Cyprus Δ% Romania Δ% Albania Δ% TOTAL Δ% Sep-18 yoy yoy yoy yoy Deposits 2,249 1.6% 2,298 22.4% 488 4.7% 5,035 10.5% Gross Loans 4,667 (8.1%) 2,576 (8.0%) 307 (7.7%) 7,550 (8.0%) Mortgages 2,146 (8.1%) 1,087 5.2% 70 2.6% 3,304 (3.9%) Consumer Credit 269 (0.3%) 249 5.2
Slide 48: Alpha Bank Group
IV Alpha Bank Group qoq% yoy % (€ million) Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 change change Net interest income 426.6 459.0 443.8 479.6 486.9 (7.1%) (12.4%) Net fee and commission income 78.9 84.6 84.4 82.7 79.3 (6.7%) (0.5%) Income from financial operations 134.8 77.5 186.1 28.8 75.2 … … Other
Slide 49: Alpha Bank Group
IV Alpha Bank Group (€ million) 9M 2018 9M 2017 yoy % change Net interest income 1,329.4 1,463.0 (9.1%) Net fee and commission income 247.9 240.8 2.9% Income from financial operations 398.4 115.9 … Other Income 27.3 42.5 (35.7%) Operating Income 2,003.0 1,862.2 7.6% Staff costs (349.8) (353.8) (1.1%
Slide 50: Group Results by Business Unit
IV Group Results by Business Unit Commercial & Investment Banking & Asset Retail SE Europe Other Group Corporate Treasury Management (€ million) Jan-Sep Jan-Sep Jan-Sep Jan-Sep Jan-Sep Jan-Sep Jan-Sep 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 Operating Income 747.9 806.3
Slide 51: Results | Retail Business Unit
IV Results I Retail Business Unit (€ million) Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Operating Income 239.5 247.1 261.3 263.4 266.9 Net Interest Income 209.4 218.6 218.5 232.2 237.4 Net fee and Commission Income 28.1 27.4 27.6 29.2 27.5 Income from Financial Operations 1.5 0.6 14.7 1.5 1.5 Other In
Slide 52: Results | Commercial & Corporate Business Unit
IV Results I Commercial & Corporate Business Unit (€ million) Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Operating Income 164.1 186.6 166.2 193.9 193.5 Net Interest Income 138.6 144.0 144.1 154.4 158.8 Net fee and Commission Income 32.0 35.9 32.7 34.0 32.0 Income from Financial Operations (9.5) 3.5 (13
Slide 53: Results | Asset Management Business Unit
IV Results I Asset Management Business Unit (€ million) Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Operating Income 13.9 14.9 16.3 12.2 15.2 Net Interest Income 2.8 2.4 2.6 2.7 3.1 Net fee and Commission Income 9.9 10.7 13.1 10.1 10.8 Income from Financial Operations 1.4 2.1 1.0 2.7 1.0 Other Income (0
Slide 54: Results | Investment Banking & Treasury Business Unit
IV Results I Investment Banking & Treasury Business Unit (€ million) Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Operating Income 177.4 131.2 236.2 50.4 79.4 Net Interest Income 31.2 44.4 34.6 35.0 29.1 Net fee and Commission Income 2.1 3.5 3.7 3.0 2.7 Income from Financial Operations 142.5 81.9 196.5 1
Slide 55: Results | SE Europe Business Unit
IV Results I SE Europe Business Unit (€ million) Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Operating Income 60.2 60.4 56.2 68.0 68.2 Net Interest Income 50.6 49.8 46.8 54.9 57.5 Net fee and Commission Income 7.0 7.2 7.1 6.5 6.5 Income from Financial Operations 1.0 2.3 (0.3) 3.0 3.1 Other Income 1.5 1.
Slide 56: Results | Other Business Unit
IV Results I Other Business Unit (€ million) Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Operating Income (5.7) (8.7) (13.9) 13.5 40.9 Net Interest Income (6.0) (0.2) (2.9) 0.4 0.9 Net fee and Commission Income (0.3) (0.1) 0.1 (0.3) (0.3) Income from Financial Operations (2.1) (12.9) (12.4) 8.7 21.8 Oth
Slide 57: Glossary
IV Glossary Reconciliation of key Management’s definitions with terms in “Annual report (In accordance with Law 3556/2007)” Terms Definitions Abbreviation Accumulated Provisions or Loan 1 Accumulated Impairment Allowance, as disclosed for credit risk monitoring purposes (note 41) LLR Loss Reserve 2
Slide 58: Glossary
IV Glossary Alternative Performance Measures Definitions Abbreviation Accumulated Provisions (1) including the value of the associated collaterals divided by Non Performing Exposures (NPEs) at the end of the NPE Total Non Performing Exposure Total Coverage reported period coverage Non Performing Loa
Slide 59: Alpha Bank Contacts
Alpha Bank Contacts Vassilios Psaltis Lazaros Papagaryfallou General Manager – CFO Executive General Manager vep-office@alpha.gr lap-office@alpha.gr +30 210 326 2181 +30 210 326 2261 Dimitrios Kostopoulos Elena Katopodi Manager Assistant Manager Investor Relations Division Investor Relations Divisio