Alior Bank Sa · GPW:ALR
Alior Bank Sa — Q2 2016 Earnings Presentation
34 slides from Alior Bank Sa's earnings presentation, Aug 11, 2016
Slide 1: Alior Bank S.A. Q2 2016 results presentation
ALIOR BANK S.A. Q2 2016 results presentation August 11, 2016 1
Slide 2: Agenda
AGENDA • Highlights • Operational Performance • T-Mobile update • Outlook • Appendix 2
Slide 3: Highlights: Strong volume growth sustained and equity position secured
HIGHLIGHTS Strong volume growth sustained and equity position secured. Second quarter in a row with volume growth exceeding 1 billion net loans, Rights issue concluded as planned resulting in permanent improvement of Bank’s capital position, Profitability post CoR remains at satisfactory level
Slide 4: BPH Core transaction on track
HIGHLIGHTS BPH Core transaction on track Financing successfully provided upon rights issue completion, All conditions precedents fulfilled – GE responded to Alior tender offer: Apr 29th Demerger plan approval and signing, May 5th Alior EGM approval for equity raise, Jun 23rd UOKiK clearanc
Slide 5: Agenda
AGENDA • Highlights • Operational Performance • T-Mobile update • Outlook • Appendix 5
Slide 6: Key Financials
KEY FINANCIALS (A/B)-1 (D/G)-1 M PLN 1H'16 1H'15 Q2'16 Q1'16 Q2'15 (%) (%) A B C D E F G Net interest income 857 718 19 444 412 373 19 Net fee and commissions 163 163 0 76 87 70 8 Trading result & other 163 164 -1 83 80 81 2 Operating income 1 183 1 045 13 603 579 525 15 General Administrative Expen
Slide 7: Loan Book
LOAN BOOK Loan book split in PLN m +20% +15% 34 136 32 738 325 534 Other business 321 Factoring 439 28 345 6 103 Investment 135 5 690 loans 521 4 668 43% 43% 43% 7 791 Working 7 744 Capital Business 6 972 383 Other retail 368 809 900 Mortgage other 612 902 Mortgage 7 631 7 116 real estate 5 778 57%
Slide 8: Deposit Base
DEPOSIT BASE L/D = 90% in PLN m Retail +30% L/D=79% Deposits Loans 65% 57% +23% 23 293 24 558 Term, own banking sec., 18 958 other 14 662 Current 14 294 10 698 Loans 19 384 8 260 8 999 9 895 Q2'15 Q1'16 Q2'16 Q2'16 Corporate L/D=110% +24% Deposits Loans 35% 43% +16% Term, own banking sec., 13 432 ot
Slide 9: Credit Risk Overview
CREDIT RISK OVERVIEW NPL total (%) 12,4 13,1 Market avg.* 12,0 11,0 10,8 9,7 9,8 10,1 10,0 9,8 9,6 11,3 2,9 2,2 2,2 2,8 2,6 2,6 Corporate Retail Mortgage Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Coverage ratio (%) Market avg.* 65 65 63 65 66 57 59 57
Slide 10: Net Interest Margin Development
NET INTEREST MARGIN DEVELOPMENT NIM calculated assuming the AFS portfolio amount in Q1’16 and Q2’16 at the level of Q4’15 Alior NIM development (%) 4,6 4,4 4,4 2015 Q1'16 Q2'16 AFS portfolio evolution ch. ch. in PLN m Q2'15 Q4'15 Q2'16 Q2'16/Q4'15 Q2'16/Q2'15 AFS portfolio 2 714 4 253 8 505 100% 213
Slide 11: Profitability Sustained at Satisfactory Level
PROFITABILITY SUSTAINED AT SATISFACTOTY LEVEL Alior NIM development (%) calculated based on actual NIM 4,6% 4,3% 4,2% 2015 Q1'16 1H'15 CoR -2,3% -2,1% -2,0% NIM - CoR 2,3 2,2 2,2 2015 Q1'16 1H'15 Stable NIM – CoR, slight decrease of NIM compensated by lower CoR. NIM formula 2015: NII for 2015 divide
Slide 12: Fees and Commissions
FEES AND COMMISSIONS Net F&C 89 87 79 76 70 F&C income 145 140 138 137 125 fees related to C/A, 75 72 loans, transfers 75 71 76 26 24 21 bancassurance 29 10 21 24 24 24 payment and credit 25 cards servicing 17 19 21 17 13 brokerage fees Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 -54 -56 -61 -51 -61 F&C expenses
Slide 13: Capital Position
CAPITAL POSITION 20,9% 13,5% 17,3% 12,8% 12,7% 12,5% 10,2% 10,3% 10,6% 9,7% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 TCR Tier-1 Q2’16 increase reflects PLN 2,2 bn rights issue. Q1’16 CAR calculation includes the effect of guarantee and counter guarantee agreements concluded on March 31, 2016. 13
Slide 14: Continuous Focus on Cost Discipline
ALIOR CONTINUOUS FOCUS ON COST DISCIPLINE MAKES IT ONE OF THE MOST EFFICIENT FINANCIAL INSTITUTIONS NATIONWIDE Q1’16 C/I (%) of selected banks quoted on WSE vs. Q2’16 C/I of Alior Incl. 11,5 m of integration 92,3 costs related to BPH Core and 11 m nonrecurring interest expense for equity relief guar
Slide 15: Sizable Customer Base
SIZABLE CUSTOMER BASE Over 3,2 million clients provides for high cross sell potential Q1’16 Q2’16 Ch. Q/Q (%) Branches 1 874 1 930 3,0 Consumer Finance 520 560 7,8 T-Mobile 558 590 5,6 Total retail clients 2 952 3 080 4,3 Business clients 132 133 0,7 Total number of clients 3 084 3 213 4,2 15
Slide 16: Sales Network
SALES NETWORK 4th largest distribution network among Polish banks 2 144 959 867 804 634 416 406 394 282 276 274 Bank 1 Bank 2 Bank 3 Alior Bank 4 Bank 5 Bank 6 Bank 7 Bank 8 Bank 9 Bank 10 Alior as at the end of Q2’16, other banks as at the end of Q1’16 and number three if partner networks are accou
Slide 17: New Business Client Offering
NEW BUSINESS CLIENT OFFERING Zafirmowani.pl - new portal for companies, Complementary accounting, invoicing and reporting module, Special offering from reputable brands (i.e. EY, T-mobile, Link 4). I-konto Biznes – fully automated, web- based account opening process, Refreshed mobile banki
Slide 18: Agenda
AGENDA • Highlights • Operational Performance • T-Mobile update • Outlook • Appendix 18
Slide 19: Strong T-Mobile Partnership in Poland
STRONG T-MOBILE PARTNERSHIP IN POLAND EFFECTIVELY CAPTURING PROFITABLE GROWTH • 314 ths. customers acquired since launch in May’14 • Phone financing volume growth – total number of acquired customers is 90 ths. by end of H1’16 simplified credit verification procedure for T-Mobile Maintaining stron
Slide 20: Agenda
AGENDA • Highlights • Operational Performance • T-Mobile update • Outlook • Appendix 20
Slide 21: Going Forward: 2016 Outlook maintained
GOING FORWARD 2016 Outlook maintained 2016 consensus of PLN 322 m* NIM ~4,6% C/I below 48% excluding banking tax CoR ~2,3% Loan growth 2016 PLN 5 billion net *based on the following analysts forecasts: SG – February 8; Ipopema – February 8; Citi – February 19; JP Morgan – February 26. 21
Slide 22: Agenda
AGENDA • Highlights • Operational Performance • T-Mobile update • Outlook • Appendix 22
Slide 23: Income Statement Snapshot
INCOME STATEMENT SNAPSHOT in PLN m Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Interest income 596 617 630 663 694 Interest expense -223 -228 -235 -251 -250 Net interest income 373 388 395 412 444 Dividend 0 0 0 0 0 Fee and commission income 125 145 140 138 137 Fee and commission expense -54 -56 -61 -51 -61 Net f
Slide 24: Balance Sheet Snapshot
BALANCE SHEET SNAPSHOT 30 Jun’15 30 Sep’15 31 Dec’15 31 Mar’16 30 Jun’16 Cash and balances with Central Bank 1 815 1 348 1 750 666 726 Financial assets held for trading 427 365 391 360 402 Financial assets available for sale 2 714 4 016 4 253 6 008 8 505 Hedging derivatives 49 123 140 161 54 Receiva
Slide 25: Shareholding
SHAREHOLDING Largest free float among Polish financials institutions 29,22% PZU S.A.* 7,17% Aviva OFE Aviva BZWBK** 57,58% Free float 6,04% Genesis Asset Managers LLP*** * PZU S.A. and PZU Życie, PZU SFIO Universum, PZU FIZ Aktywów Niepublicznych BIS 2 ** on the basis of number of shares registered
Slide 26: New Loans Sales in Retail & SME
NEW LOANS SALES IN RETAIL & SME Retail loans (new production per quarter) 2 270 2 273 2 253 2 010 44 49 55 Other retail 1 809 46 1 681 66 1 641 1 530 529 459 456 Mortgages for 1 489 73 90 real estate 74 55 556 546 629 423 562 526 1 697 1 765 1 742 Cash loans 1 407 992 1 062 1 114 990 949 Q2'14 Q3'14
Slide 27: Employees
EMPLOYEES FTEs 6 738 6 526 6 687 6 504 6 361 651 Meritum 3 697 3 655 3 750 3 524 3 928 Outlets Headquaters 2 807 2 837 2 871 2 937 2 159 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 27
Slide 28: Continued Growth of Market Share
CONTINUED GROWTH OF MARKET SHARE Deposits MARKET SHARE Loans 4,0% 3,9% 3,6% 3,7% 3,5% 3,2% Q2'15 Q1'16 Q2'16 Q2'15 Q1'16 Q2'16 Alior’s deposits as well as gross loans according to published financial statements. Deposits Quarterly growth (%) Loans Total Retail Corporate Total Retail Corporate ALIOR
Slide 29: Polish Macro Outlook
POLISH MACRO OUTLOOK GDP growth (% yoy) Investments and private consumption (% yoy) 10,6 Investments Private 4,50 consumption 3,90 7,1 6,8 3,40 3,40 3,2 3,30 2,6 4,6 0,8 0,9 4,1 3,6 0,2 2,5 1,90 1,60 -2,4 -1,8 2010 2011 2012 2013 2014 2015 2016F 2010 2011 2012 2013 2014 2015 2016F End of period End
Slide 30: Polish Macro Outlook
POLISH MACRO OUTLOOK NBP reference rate (%) WIBOR 3M (%) 4,50 4,99 4,25 4,13 3,50 3,95 2,50 2,71 2,00 2,06 1,50 1,50 1,72 1,70 2010 2011 2012 2013 2014 2015 2016F 2010 2011 2012 2013 2014 2015 2016F End of period End of period FX rate (EUR/PLN) Fiscal policy (% of GDP) 4,46 57,2 30 60 56,2 55,6 25 5
Slide 31: Polish Banking Sector – Growth of Main Balance Sheet Figures
POLISH BANKING SECTOR – GROWTH OF THE MAIN BALANCE SHEET FIGURES Assets Loans +5,5% +4,2% +5,7% +4,6% 1 663 1 609 1 631 1 577 1 600 1 569 1 538 1 532 1 108 1 105 1 097 1 136 1 493 1 055 1 074 1 090 1 041 1 039 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15
Slide 32: Polish Banking Sector – Main P&L Lines Performance
POLISH BANKING SECTOR – MAIN P&L LINES PERFORMANCE NII NFC Result on banking activity +11,6 -7,1 +22,9 16,5 9,3 9,2 9,4 3,4 3,4 3,3 14,4 9,0 3,1 3,1 13,7 14,2 8,4 13,4 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 X - CHANGE VS. Q2’15 (%) Expenses* Net imp
Slide 33: Contact Details
CONTACT DETAILS Please direct all inquiries to: relacje.inwestorskie@alior.pl +48 22 417 3860 IR unit head: Piotr Bystrzanowski piotr.bystrzanowski@alior.pl 33
Slide 34: Disclaimer
DISCLAIMER This document has been prepared by Alior Bank S.A. (the “Bank”) solely for use at the Presentation. Any forward looking statements concerning future economic and financial performance of the Company contained in this Presentation are based on Financial Statement of the Bank for 1H 2016. B