Alior Bank Sa · GPW:ALR
Alior Bank Sa — FY2021 Earnings Presentation
47 slides from Alior Bank Sa's earnings presentation, Mar 2, 2022
Slide 1: Presentation of results for 2021
Alior Bank S.A. Presentation of results for 2021 Warsaw, 2 March 2022
Slide 2: Agenda
Agenda 1. Operating activities 2. Credit risk 3. Financial results 4. Other issues 2
Slide 3: Operating activities
Operating activities 3
Slide 4: Yet another quarter of good financial results
Yet another quarter of good financial results In 2021, revenues amounted to PLN 3.64 billion Total revenues (PLN) • interest result PLN 2.8 billion (-2% y/y) • commission income PLN 767 million (+21% y/y) +92 M +23 M +3% +3% In IVQ 21, revenues amounted to PLN 935 million • interest result PLN 758 m
Slide 5: Stable growth of the Bank, consistent improvement in efficiency
Stable growth of the Bank, consistent improvement in efficiency Assets (PLN billion) Gross loan volume (PLN billion) Deposits volume* (PLN billion) +6% +2% +8% 83,0 72,0 63,6 62,5 78,6 66,9 2020 2021 2020 2021 2020 2021 C/I 2021 ROE 2021 CoR 2021 NIM 2021 TCR 2021 43.5% 7.7% 1.6% 3.75% 14.16% -3.4 p
Slide 6: Pursuing strategic goals in the ESG area
We have been constantly pursuing our strategic goals in the ESG area, making use of the strengths of Alior Bank and taking care of all stakeholders E S G Environmental Protection Social responsibility Corporate governance Pro-ecological transformation Dialogue and cooperation High management standar
Slide 7: ESG activities support the More than a Bank strategy
Activities in the ESG area support the business goals set in the “More than a Bank” strategy Environmental Protection Social responsibility Financing the transformation Pro-ecological transformation Dialogue and cooperation Mental and physical health 8+3 eco-products and Electronic signature 5.6 tho
Slide 8: Development of key products – mortgage loans
RETAIL Development of the Bank’s key products – mortgage loans* CUSTOMER Sale of mortgage loans (PLN billion) Number of Customers with a mortgage loan (K) +2% +9% 1,40 0,94 1,20 0,87 0,90 0,88 75,5 1,00 0,75 74,1 0,80 72,3 70,5 0,60 0,40 69,0 0,20 0,00 Q4 IVQ2020 20 Q1 IQ 2021 21 Q2 IIQ2021 21 Q3III
Slide 9: Development of key products - cash loans
RETAIL Development of the Bank’s key products - cash loans* CUSTOMER Sale of loans (PLN billion) Number of Customers with a loan (K) +2% +38% 430,00 1,69 1,61 425,00 421 1,43 1,35 420,00 417 0,98 415,00 411 411 410,00 405 405,00 400,00 Q4IVQ 2020 20 Q1IQ2021 21 Q2 IIQ2021 21 Q3 IIIQ2021 21 Q4 IVQ202
Slide 10: Development of key products - Consumer Finance loans
RETAIL Development of the Bank’s key products - Consumer Finance (CF) loans CUSTOMER Sale of CL loans (PLN billion) Number of CF Customers (K) +5% -3% 1,46 1,52 1600,00 1 405 1 403 1 353 1 303 1 367 1400,00 0,98 0,91 0,97 1200,00 1000,00 800,00 600,00 400,00 200,00 0,00 Q4IVQ 2020 20 Q1IQ2021 21 Q2
Slide 11: Effective building of a lasting relationship with Customers
RETAIL Effective building of a lasting relationship with Customers CUSTOMER Number of Individual Customers* (million) Number of accounts “Konto Jakże Osobiste” (thousand) -2% +25% 484 508 4,18 4,18 4,14 456 4,06 4,09 406 432 Q4 20 IVQ 2020 Q1IQ 2021 21 Q2 IIQ2021 21 Q3 IIIQ2021 21 Q4 IVQ2021 21 Q4 2
Slide 12: Growth in digital channels importance
RETAIL Growth in digital channels importance CUSTOMER Users of Alior Bank mobile applications (thousand) Number of transfers ordered in the Alior Mobile application (million) +20% +37% 740 9,2 671 704 8,2 8,5 616 630 7,7 6,8 Q4 IVQ2020 20 Q1 IQ 2021 21 Q2IIQ2021 21 IIIQ2021 Q3 21 Q4 2021 IVQ 21 Q4 2
Slide 13: Expanding offer, digital channels and customer service
We have been continuing to expand our offer, develop digital channels and improve customer service RETAIL CUSTOMER Increasing the coverage area of the “Clean Air” Instant card tokenisation offer Providing a loan offer with a grant from the National Fund for Introducing the service of immediate token
Slide 14: Special offer for Ukrainian citizens
RETAIL Special offer for Ukrainian citizens CUSTOMER Daily Banking Customer Service Current account - benefits package: • No fees for current account and debit card for the first 12 • Call Center in Ukrainian available 9am to 5pm months Phone numer: 19502 or +48 12 370 70 00 • No fees for domestic a
Slide 15: Development of the business customer segment
BUSINESS Development of the business customer segment CUSTOMERS Segment: Small / Medium / Large Micro segment Total overdraft facility granted (PLN billion) Total overdraft facility granted (PLN billion) +41% +13% +68% -5% 2,0 0,4 0,4 0,4 1,8 0,3 0,4 1,3 1,4 1,1 Q4 20 IVQ 20 Q1 21 IQ 21 Q2 21 IIQ 21
Slide 16: Building relationships with business customers – increased transactionality
BUSINESS Positive effects of the strategy of building relationships with a business customer – CUSTOMERS increased transactionality Number of actively used cards (thousand) Number of cashless transactions with payment cards (million) +16% +7% 71,2 3,0 2,9 66,8 67,4 68,0 70,4 2,7 2,5 2,4 IVQ Q4 20 20
Slide 17: Accident and healthcare insurance for companies
BUSINESS Accident and healthcare insurance – a novelty in the offer for companies CUSTOMERS Health care insurance and against the consequences of accidents Do you run a business and have a corporate account at Alior Bank? Provide yourself, your family and employees, as well as their relatives, with
Slide 18: Remote channels and automation of credit processes
BUSINESS Development of remote channels and automation of credit processes CUSTOMERS Remote support (Segment: Micro / Small / Medium / Large) Automatic decisions (Segment: Small / Average / Large) Sale of cards and auxiliary accounts in Internet Banking New sales in automatic decisions (PLN million)
Slide 19: Credit risk
Credit risk 19
Slide 20: Stable risk costs and improved loan portfolio quality
Stable level of the Bank’s risk costs and a noticeable improvement in the quality of the loan portfolio Impaired loans (PLN billion) NPL reserve coverage ratio* CoR risk costs** ,00% 14,48% 13,81% 9 ,00% 12,96% 12,75% 9 ,00% 11,77% 8 ,00% 8 1,71% ,00% 8,78 55,87% 55,92% 1,59% 1,58% 1,54% 8,36 1,48%
Slide 21: Credit policy change stabilised cost of risk
The change in credit policy has brought tangible effects – stabilisation of the cost of risk at a lower level than from before the COVID-19 pandemic Risk costs – Alior Bank Group -0,79 bps. -1,2 bps. Due to the Bank’s activities in 2020 and 2021 regarding the credit 2000 2,80% portfolio risk managem
Slide 22: Sustainable improvement in loan portfolio quality
Sustainable improvement in the quality of Alior Bank’s loan portfolio Following the periodic increase in DPD 30+ caused the COVID-19 situation, the Bank achieved a significant improvement in its DPD indicators, which are now at a lower (better) level than before the pandemic. Individual Customer* PL
Slide 23: Capital and liquidity surplus above regulatory minimum
Stable and secure position of the Bank: capital and liquidity surplus significantly above the regulatory minimum The levels of TIER I and TCR capital adequacy ratios as at the end of IVQ 21 significantly exceed the regulatory minimum by: 405 bps (PLN 2,000 million) and 366 bps (PLN 1,810 million) TI
Slide 24: Financial results
Financial results 24
Slide 25: Income statement
Income statement PLN M IVQ 2020 IVQ 2021 % y/y y/y 2020 2021 % y/y y/y Total Income 911,4 934,8 3% 23,4 3 545,5 3 637,1 3% 91,6 Net interest income 666,7 757,9 14% 91,1 2 848,7 2 798,2 -2% -50,5 Net fee and commission income 177,0 216,1 22% 39,1 635,8 766,7 21% 130,9 Other income 67,7 -39,1 -158% -1
Slide 26: Rising market rates support net interest income
The increase in market interest rates has a positive effect on the net interest income Interest income and expenses (PLN million) Interest margin and financing cost* +12% 4000 -9% 4,01% 3 800 10% 3,67% 3,77% 3,63% 824 3,58% 3500 3,333 419 3,037 734 745 718 750 84 3000 339 3 300 96 94 80 81 2500 Inte
Slide 27: Record-breaking commission income
Thanks to the increase in customer transactionality, the Bank achieved a record-breaking commission income Net fee and commission income (PLN million) +22% +21% +14% 767 216 190 636 Bank accounts, transfers, cash 185 183 operations (net) 177 178 49 48 171 46 94 Bancassurance (net) 48 43 22 25 81 13
Slide 28: Improving effectiveness despite cost pressure
Despite the overall intensifying pressure to increase costs, the Bank has been improving its effectiveness Operating expenses PLN million) Operating expenses by quarter (PLN million) +3% +2% -5% -1% 1,630 1,665 418 1,583 394 391 157 160 380 63 379 14 106 14 23 15 248 288 233 61 59 59 56 57 Employee
Slide 29: Pursuit of the updated More than a Bank strategy 2021-22
Pursuit of the updated “More than a Bank” strategy 2021 – 2022 2020 2021 Goal 2022 Assets PLN 78.6 billion PLN 83.0 billion PLN 89 billion Business Number of Individual 4.2 million 4.1 million 4.5 million volumes Customers Number of Business 239K 258K 278K Customers ROE -4.7% 7.7% >5% Profitability
Slide 30: Why Alior Bank?
Why Alior Bank? ▪ Innovation, digitisation, high quality of services for Customers ▪ Improvement of performance by increasing revenue and reducing costs ▪ Improvement in the loan portfolio quality ▪ Growing share of housing loans in the portfolio ▪ Negligible share of CHF housing loans in the portfo
Slide 31: Other issues
Other issues 31
Slide 32: Economic growth amid rising inflation and interest rates
Economic growth amid rising inflation and interest rates A year strongly influenced by base effects NBP starts normalisation of monetary policy... GDP rate of growth (viable, %, y/y) and its decomposition (p.p.) Interest rates (%) Poland, Hungary, Czech Republic, Romania 10,0 6,0 5,0 5,0 0,0 4,0 3,0
Slide 33: Poland among the development leaders in Europe
Poland among the development leaders in Europe - the price is high inflation Crisis losses are more than made up for Inflation accelerated not only in Poland... 110 GDP level (4Q 2019 = 100) 10 CPI Inflation 105 (%, y/y) 8 100 6 95 4 90 2 85 0 80 -2 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 sty 2
Slide 34: Inflation and higher rates may burden the outlook
Inflation and higher interest rates may be burdensome on the favourable outlook. Consumption is the engine of economic rebound Inflation will slow down only in 2023... GDP r/r rate of growth along with its main components CPI y/y and the NBP base rate 15 8,0 7,3 7,0 10 4,7 5,7 6,0 4,3 4,5 5,1 4,9 5
Slide 35: Addressing climate-related challenges
We have been successfully addressing climate-related challenges Lottery! You can win an electric car Campaign promoting Clean Air Nissan Leaf + voucher to purchase a Cash Loan We cooperate with: home charger with assembly PLN 1.12 Start of the campaign: 18/10/2021 billion Prizes Balance 14.3 as at t
Slide 36: Alior Bank's investment services
Alior Bank’s investment services Alior Bank’s Brokerage House Alior TFI In IVQ 21, the positive trend in the area of investment In terms of assets under management, Alior TFI has grown at products slightly slowed down, mainly as a result of the a faster pace than the market in the last 12 months. By
Slide 37: Activities pursued by Alior Leasing
Activities pursued by Alior Leasing Sale of lease and loans (PLN billion) Number of customers (in thousand) Lease portfolio and loans (PLN billion) +9% CAGR 15% +32% 74,3 6,0 68,3 5,4 3,0 3,0 2,7 5,0 55,4 2,3 3,9 35,1 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 Quarterly sale of leas
Slide 38: Gross structure of the loan portfolio
Gross structure of the loan portfolio – stable increase in the share of housing loans Loan portfolio in total (PLN million) Individual Customer Segment (PLN million) Retail Customer Segment* (PLN million) +2% +5% -3% 0% +2% -2% 36,751 37,931 38,593 25,711 25,505 62,426 63,436 63,579 24,986 3 900 3 8
Slide 39: Loan and deposit portfolio adjusted to market situation
The Bank adjusts its loan and deposit portfolio to the current market situation Structure of net liabilities to Customers (PLN billion) Structure of the main net amounts due from Customers (PLN billion) +8% +4% +8% +1% 72.0 66.9 68.6 67.8 67.0 1,1 56.2 56.3 57.0 57.8 58.2 2,0 1,4 1,6 3,8 6,5 1,7 5,4
Slide 40: Factors of change in Net Interest Income IVQ 21 vs IIIQ 21
Factors of change in Net Interest Income in IVQ 21 vs IIIQ 21 (PLN million) 40
Slide 41: Factors of change in net profit IVQ 21 vs IVQ 20
Factors of change in net profit in IVQ 21 vs IVQ 20 (PLN million) *Dividend revenue, income on instruments measured at fair value through profit or loss and net gain/(loss) and foreign exchange income, income on de-recognition of financial instruments not measured at fair value through the 41 profit
Slide 42: New sale of loans
New sale of loans (PLN million) Sales in the Business Customer Segment* +36% 2,729 +51% 2,432 2,120 2,069 865 2,196 691 1,818 1,823 628 621 1,654 1,619 657 1,363 666 603 1,455 1,281 414 541 391 436 562 1 864 1 741 1 499 1 412 1 568 1 240 1 152 1 078 1 220 890 927 893 IQ 19 IIQ 19 IIIQ 19 IVQ 19 IQ 2
Slide 43: Consolidated statement of financial standing
Consolidated statement of the financial standing of the Alior Bank Group (PLN million) IVQ 20 IQ 21 IIQ 21 IIIQ 21 IVQ 21 % q/q q/q % y/y y/y Total assets 78 642,0 79 880,6 79 035,1 78 201,9 83 048,4 6,2% 4 846,4 5,6% 4 406,3 Cash and cash equivalents 2 459,9 2 163,6 1 566,4 1 645,3 3 763,4 128,7% 2
Slide 44: Additional information
Additional information Employment (FTEs) Alior Bank’s branches -436 -6% -92 +9 -13% 0% -32 7,878 725 710 -5% 7,754 694 665 7,541 633 473 7,432 7,441 200 200 479 195 225 481 194 235 476 483 193 51 51 51 222 211 210 51 34 7 180 7 040 474 6 838 6 745 6 749 459 448 420 406 IVQ 20 IQ 21 IIQ 21 IIIQ 21 IV
Slide 45: 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 54.7 (data as at 30 December 2021) 64 Capitalisation: PLN 7.1 billion Value of shares in free trade: PLN 3.7 billion 54 P/BV**: 1
Slide 46: Contact
Contact Contact data Investor Relations Department Address details e-mail: ir@alior.pl Alior Bank S.A. Investor Relations Department ul. Łopuszańska 38D 02-232 Warsaw Poland More information Website Following events: Facebook fanpage • 1Q 2022 results – April 27, 2022 • 1H 2022 results – August 3, 2
Slide 47: Reservation
Reservation This data has been prepared by Alior Bank S.A. (“Bank”, “Company”) solely for the Presentation purposes. 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 of the