Alior Bank Sa · GPW:ALR
Alior Bank Sa — Q2 2024 Earnings Presentation
45 slides from Alior Bank Sa's earnings presentation, Sep 5, 2024
Slide 1: Presentation of results for 2Q'24
Presentation of results for 2Q’24 Warsaw, August 2, 2024
Slide 2: Agenda
Agenda 1. Operating activities 2. Credit risk 3. Financial results 4. Other issues 2
Slide 3: Operating activities
3 Operating activities
Slide 4: In 2Q'24 Alior Bank achieved very good results
In 2Q’24 Alior Bank achieved very good results The number of mobile app users was 1.2 million Net profit in 2Q’24 amounted to PLN mn 586 (19% more than at the end of June 2023) (16% more than in 2Q’23) The number of customers with regular inflows Net profit in 1H’24 amounted to PLN mn 1,164 amounted
Slide 5: The current macroeconomic environment is conducive to the Bank's stable development
The current macroeconomic environment is conducive to the Bank's stable development Assets (PLN bn) Gross Loans (PLN bn) Gross Performing Loans* (PLN bn) +8% +8% +11% 90,1 67,6 62,9 62,7 83,5 56,7 2Q 23 2Q 24 2Q 23 2Q 24 2Q 23 2Q 24 C/I 2Q’24 NIM 2Q’24 ROE 2Q’24 COR 2Q’24 TCR 2Q’24 35.7% 5.82% 23.9%
Slide 6: Growth of the Bank's key products – mortgage loans
RETAIL Growth of the Bank’s key products – mortgage loans* CUSTOMERS Sale of mortgage loans (PLN bn) Number of Customers with a mortgage loan (k) +14% +11% 2,50 -58% 2,07 80,8 83,1 83,5 2,00 75,1 76,5 1,64 1,50 0,99 1,00 0,60 0,68 0,50 0,00 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24
Slide 7: Growth of the Bank's key products – cash loans
RETAIL Growth of the Bank’s key products – cash loans* CUSTOMERS Sales of loans (PLN bn) Number of Customers with a loan (k) -1% -3% +7% 1,69 1,68 1,49 1,57 1,38 392 391 385 384 382 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 Gross consumer loan portfolio (PLN bn) Market -4% share 55
Slide 8: Growth of the Bank's key products – Consumer Finance loans
RETAIL Growth of the Bank’s key products – Consumer Finance (CF) loans CUSTOMERS Sales of CF loans (PLN bn) Number of CF Customers (k) +1% +16% -12% 1 537 1 569 1 531 1 372 1600 1,91 1400 1 318 1200 1,42 1,35 1,17 1,18 1000 800 600 400 200 0 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 2Q 23 3Q 23 4Q 23 1Q 24 2Q 2
Slide 9: Very good results of the Business Customer segment
BUSINESS Very good results of the Business Customer segment CUSTOMERS Revenues y/y Revenue after cost of risk y/y NPL y/y +5.6% +25.7% -4.31 pp PLN mn 841 in 1H’24 Balance of assets Business Customers (PLN bn) Total committed loan limit (PLN bn) -6% -14% 18,7 18,7 18,0 18,0 17,5 2,9 2,8 2,4 2,4 2,0
Slide 10: Upward trend in key efficiency indicators
BUSINESS Upward trend in key efficiency indicators CUSTOMERS Share of automatic decisions in new sales (Small segment) Sales of online accounts in micro segment +125% +1 pp 2 778 2 691 78% 2 212 69% 67% 65% 70% 1 741 1 237 2Q 23 II kw.23 3Qkw.23 III 23 4Qkw.23 IV 23 1Q 2424 I kw. 2Q II 2424 kw. 2Q 2
Slide 11: External stakeholders appreciate Alior Bank
External stakeholders appreciate Alior Bank 4th place in the Golden Bank 2024 Best multi-channel service quality category, 3rd place in the Personal Account category 2nd place in the ranking of brokerage and 3rd place in the Mortgage Loan accounts by Puls Biznesu magazine was category in the Golden
Slide 12: Credit risk
12 Credit risk
Slide 13: Stable and safe position of the Bank: capital and liquidity surplus well above regulatory minimums
Stable and safe position of the Bank: capital and liquidity surplus well above regulatory minimums Regulatory ratios of Alior Bank Group Liquidity ratios: LCR, NSFR 21,44% 20,51% 20,23% 188% 191% 18,45% 181% 179% 177% 17,83% 17,46% 17,31% 17,53% 168% 166% 16,76% 162% 16,68% 15,41% 15,43% 17,15% 16,9
Slide 14: Alior Bank consistently increases portfolio quality and decreases cost of risk
Alior Bank consistently increases portfolio quality and decreases cost of risk Alior Bank Group – cost of risk (CoR%) Alior Bank Group – NPL ratio 0 2,80% 2,39% 14,48% 0 13,16% 0 11,77% 1,60% 1,51% 0 9,80% 0,98% 0 8,58% 0,46% 0 6,78% 0 2019 2020 2021 2022 2023 1H 24 2019 2020 2021 2022 2023 2Q 24 Th
Slide 15: Alior Bank consistently improves the quality of its loan portfolio
Alior Bank consistently improves the quality of its loan portfolio Impaired loans (PLN bn) NPL reserve coverage ratio* Cost of Risk – CoR%** 0,00% 9,45% 9,39% 7 0,95% 0,96% 9,00% 8,58% 6 7,65% 6 0,68% 8,00% 6,78% 5 0,47% 7,00% 54,1% 54,0% 5,75 5 53,1% 5,69 6,00% 5,30 51,2% 51,1% 0,23% 4,82 4 5,00% 4
Slide 16: Financial results
16 Financial results
Slide 17: Income statement
Income statement PLN mn 2Q 23 1Q 24 2Q 24 % y/y y/y IH 2023 IH 2024 % y/y y/y Total Income 1 358,0 1 498,4 1 440,0 6% 81,9 2 686,3 2 938,4 9% 252,1 Net interest income 1 160,9 1 269,4 1 244,3 7% 83,4 2 263,9 2 513,7 11% 249,7 Net fee and commission income 216,2 211,3 211,2 -2% -5,0 424,7 422,5 -1% -
Slide 18: Increase in the interest margin due to lower financing costs and a lower impact of hedging
Increase in the interest margin due to lower financing costs and a lower impact of hedging Interest income and expenses (PLN mn) Interest margin and financing cost* -2% -5% CoF NIM NIM adj. *** NIM - CoR -4% 6,22% 6,22% 6,16% 3 644 3 568 6,05% 5,96% ,0 1 835 1 887 1 864 1 824 808 859 1 745 5,82% 401
Slide 19: Stable y/y fees and commissions result
Stable y/y fees and commissions result Net Fees and Commissions Income (PLN mn) -1% -2% 425 241 0% 423 Bank accounts, transfers, cash 216 81 operations (net) 44 211 211 87 +8% y/y 41 Bancassurance (net) 172 19 43 44 46 40 24 -18% y/y 43 20 20 62 Leasing, loans and advances 125 124 63 22 62 61 -3% y/
Slide 20: The Bank is maintaining operational efficiency, despite growing inflationary pressure on costs
The Bank is maintaining operational efficiency, despite growing inflationary pressure on costs Operating costs (PLN mn) C/I ratio** +11% +9% -6% C/I normalized*** C/I reported 1 059 562 545 968 41 65 514 41 - % y/y 37,9% 59 125 463 61 Employee 1 448 64 132 expenses 68 -10% y/y 62 185 266 137 General
Slide 21: The main financial targets of the strategy 2023-2024
The main financial targets of the strategy „Your Bank of everyday life, your Bank for the future” 2023-2024 Profitability 1-2Q’24 2024 ROE 24.5% >13% C/I 36.0% <45% Equity Tier 1 17.1% >13.5% TCR 17.5% >15% Credit risk CoR 0.46% <1.6% NPL 6.78% <10% 21
Slide 22: Why Alior Bank?
Why Alior Bank? ▪ Safe and stable capital position ▪ High NIM ▪ Innovation, digitization, high quality of services for Customers ▪ High performance due to an increase in revenue and cost optimalization ▪ Improvement in the loan portfolio quality ▪ Consumer Finance market leader ▪ Growing share of ho
Slide 23: Other issues
23 Other issues
Slide 24: Effective establishment of a lasting relationship with Customers
RETAIL Effective establishment of a lasting relationship with Customers CUSTOMERS Number of Individual Customers (mn) Number of accounts “Konto Jakże Osobiste” (k) +6% +20% 803 843 732 761 4,41 4,39 700 4,36 4,14 4,20 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 Number of motorway jou
Slide 25: Growing importance of digital channels
RETAIL Growing importance of digital channels CUSTOMERS Users of Alior Bank mobile applications (k) Number of wire transfers initiated in the Alior Mobile application (mn) +19% +23% 1 400 18,7 1 199 16,8 17,7 1 081 1 146 1 200 1 006 1 042 15,2 15,5 1 000 800 600 400 200 0 2Q 23 3Q 23 4Q 23 1Q 24 2Q
Slide 26: Alior Mobile updates in 2Q'24
RETAIL Alior Mobile updates in 2Q’24 CUSTOMERS New "Don't forget" module Homes screen Personalization Grouping of KJO Benefits Alior Mobile has added a new The app introduced the ability to element "Don't forget", which is add, remove, and change the order visible on the home screen after of element
Slide 27: Transactional products – latest implementations
BUSINESS Transactional products – latest implementations CUSTOMERS iKonto Business, Card with Plus, and BLIK Place in ranking of business accounts 1 by Bankier.pl, June 2024 +99% Increase in sales of accounts for micro in June 2024 y/y New Internet iApplication 89% of customers Authorization through
Slide 28: Innovative offer, close to our customers
Innovative offer, close to our customers SHOPPING WITH ALIOR TOP UP YOUR ACCOUNT WITH ALIOR PAY A participant who enrolls their card Thanks to a new in the Priceless® Moments functionality, customers can Mastercard® program and uses it top up their bank accounts to pay for their purchases will have
Slide 29: Alior Bank's corporate social responsibility
Alior Bank's corporate social responsibility Active with Alior Two Hours for the Family Alior Bank regularly supports local sports events and Alior Bank has once again become involved encourages its employees to be active. At the end of in the Humanites Institute's "Two Hours for June, the bank's em
Slide 30: ESG activities at Alior Bank
ESG activities at Alior Bank Selected activities in 2Q’24 Activities completed in 2Q’24 Activities initiated in 2Q’24 • We have started the process of • All practices submitted by us have preparing the first ever sustainability been accepted into the Responsible report Business Forum Report • We hav
Slide 31: Incomplete recovery of the Polish economy in the first half of 2024
Incomplete recovery of the Polish economy in the first half of 2024 Consumption the key to recovery at the beginning of the year Inflation normalized, although not in services GDP growth (real, %, y/y) and its structure (pp), Poland CPI, services, and goods, Poland (%, y/y) 25 10 20 5 15 0 10 -5 5 -
Slide 32: The Polish economy continues to stand out positively
The Polish economy continues to stand out positively The Polish economy stands out positively Inflation is being suppressed at a similar pace as in CEE 115 GDP (4Q19=100, seas. adj., constant prices) HICP (%, y/y) Poland, Hungary, Czechia, Eurozone 110 18 105 16 14 100 12 10 95 8 6 90 4 85 2 0 Jun-1
Slide 33: Main challenges – tensions in the labor market and high interest rates
Main challenges – tensions in the labor market and high interest rates Moderate recovery in 2024 The consumer should strengthen after the weaker years of 2022-2023 GDP growth with main components, Poland Job market, Poland 16 14 13,3 14 12,8 12 12,1 12 10 6,9 10 8,9 8,7 8 5,6 6 4,1 8 3,1 3,3 6,4 4 6
Slide 34: Alior Bank's investment services
Alior Bank’s investment services Alior Bank’s Brokerage House Alior TFI In 2Q’24, the commission income of the Brokerage House 2Q’24 was the second consecutive record quarter for Alior TFI in was 6% higher than in the previous year, among others due terms of fund sales. At the end of June 2024, TFI
Slide 35: Activities of Alior Leasing
Activities of Alior Leasing Sale of lease and loans (PLN bn) Number of customers (k) Lease and loans portfolio (PLN bn) +3% +20% -2% 74,3 69,9 6,2 68,3 1,5 1,5 63,3 6,0 6,0 62,1 5,8 1,3 1,1 5,4 0,9 1H 20 1H 21 1H 22 1H 23 1H 24 2020 2021 2022 2023 1H 24 2020 2021 2022 2023 1H 24 Quarterly sale of le
Slide 36: Gross structure of the loan portfolio
Gross structure of the loan portfolio Loan portfolio in total (PLN mn) Retail Customer Segment (PLN mn) Business Customer Segment* (PLN mn) +8% +10% +4% +2% -1% +6% 40 876 40 639 26 921 25 784 25 443 66 319 67 560 36 913 5 117 4 902 62 697 4 089 6 411 5 965 6 341 25 443 26 921 25 784 19 517 19 794 1
Slide 37: The bank optimizes its financing costs through deposit portfolio management
The bank optimizes its financing costs through deposit portfolio management (data in PLN mn) Structure of net liabilities to Customers Net liabilities structure - Retail Segment Net liabilities structure - Business Segment +7% +7% +7% -1% 76 834 +0% -5% 75 832 70 706 2 455 2 799 2 102 9 537 7 689 52
Slide 38: Consolidated statement of the financial standing of the Alior Bank Group
Consolidated statement of the financial standing of the Alior Bank Group (PLN mn) 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 % q/q q/q % y/y y/y Total assets 83 527,5 86 320,5 90 134,1 91 379,5 90 146,8 -1% -1 232,6 8% 6 619,4 Cash and cash equivalents 3 167,6 3 819,9 2 539,3 2 180,2 2 077,9 -5% -102,3 -34% -1 0
Slide 39: Asset structure of Alior Bank Group
Asset structure of Alior Bank Group (PLN bn) Alior Bank Group assets Receivables from Customers (net) +15% +14% 0% +5% 90,1 90,1 83,0 82,9 10,3 6,8 64,2 78,6 61,0 8,7 8,3 56,2 58,2 57,6 6,7 19,2 18,8 +9% YTD 16,1 17,0 25,0 15,7 23,0 21,8 22,4 22,3 -3% YTD 5,0 4,9 4,3 4,3 3,9 +8% YTD 61,0 64,2 13,2 1
Slide 40: Liability structure of Alior Bank Group
Liability structure of Alior Bank Group (PLN bn) Alior Bank Group liabilities Liabilities to Customers +13% +15% +1% 0% 75,2 75,8 72,0 70,8 2,6 2,8 +6% YTD 90,1 90,1 66,9 1,1 1,3 83,0 82,9 5,7 4,5 1,7 5,4 7,9 7,7 78,6 5,5 -3% YTD 5,1 5,9 4,3 5,7 5,2 7,2 14,1 14,2 0% YTD 15,0 17,3 16,4 14,2 13,4 -6%
Slide 41: New sale of loans
New sale of loans (PLN mn) Sales in the Business Customer Segment* -15% -2% 3 069 2 833 2 891 2 432 2 414 2 446 2 399 2 276 1 197 2 196 2 082 2 103 691 1 424 1 999 1 525 773 1 823 628 1 137 762 -46% y/y 754 603 1 455 1 194 1 516 886 562 1 741 1 872 1 673 1 568 1 637 1 328 1 277 1 409 1 366 1 220 893
Slide 42: Additional information
Additional information Employment (FTEs) Alior Bank’s branches +206 -12 +3% -2% -24 0% -7 -1% 7 229 7 271 7 247 524 523 521 519 512 7 041 7 150 519 524 530 +9% y/y -5% y/y 488 519 186 183 180 178 177 67 66 58 -19% y/y 72 71 -1% y/y 6 560 6 644 6 681 6 659 6 482 +3% y/y 338 340 341 341 335 2Q 23 3Q 2
Slide 43: Alior Bank S.A. - quotations, shareholding structure, ratings
Alior Bank S.A. - quotations, shareholding structure, ratings Alior Bank’s share price compared to WSE indices (comparable data for 12 months) Alior Bank share price : PLN 102.35 (data as of June 28, 2024) 110 +111.6% y/y Capitalization: PLN bn 13.4 100 Value of shares in free float: PLN bn 5.9 P/BV
Slide 44: Contact
Contact Contact data Investor Relations and Subsidiaries Supervison Department Address details e-mail: ir@alior.pl Alior Bank S.A. Investor Relations and Subsidiaries Supervision Department ul. Łopuszańska 38D 02-232 Warsaw Poland Więcej informacji Next events: Website • 3Q’24 results – October 24,
Slide 45: Disclaimer
Disclaimer This data has been prepared by Alior Bank S.A. (“Bank”, “Company”) solely for the purpose of the Presentation. Any and all data that may constitute a projection for the Company’s future economic and financial results, contained in this presentation, has been prepared based on the Report o