Alior Bank Sa · GPW:ALR
Alior Bank Sa — Q1 2015 Earnings Presentation
33 slides from Alior Bank Sa's earnings presentation, May 15, 2015
Slide 1: Alior Bank S.A. Q1 2015 results presentation
ALIOR BANK S.A. Q1 2015 results presentation May 15, 2015 1
Slide 2: Highlights
HIGHLIGHTS Continuous and profitable growth Strong earnings growth in Q1’15 PLN 91m net income (+34% YoY) PLN 85m net income ex-Meritum (+25% YoY) Positive development of loan and deposit book Loans +PLN 980m QoQ ex-Meritum (PLN 2,783 m for Meritum) Deposits +PLN 400m QoQ ex-Meritum (PLN 2,971
Slide 3: Meritum Merger Update
MERITUM MERGER UPDATE Merger with Meritum Bank Synergies of PLN 36 m and integration cost PLN 50 m confirmed: Target distribution network leverages experience of two banks (branches, agencies, strong position in intermediaries and increased presence in POS financing), HR optimization up to 1
Slide 4: Key Financials
KEY FINANCIALS Meritum M PLN Q1'15 Q4'14 QTD Q1'14 (A/C)-1 (%) (A/B)-1 (%) impact A B C D E F Net interest income 343 323 274 25,3 6,1 32,3 Net fee and commissions 93 96 84 11,0 -2,9 0,2 Trading result & other 84 81 60 40,1 3,5 5,3 Operating income 520 500 417 24,5 4,0 37,8 General Administrative Ex
Slide 5: Loan Book Development
LOAN BOOK DEVELOPMENT Loan book split in PLN m Alior comparable Alior + Meritum +31% 27 411 Other business +18% 149 (inc. 1 Meritum) 555 24 627 Factoring 23 648 148 4 331 (incl. 9 Investment 168 555 loans 20 936 517 Meritum) 272 4 322 43% 4 134 536 Working 44% 6 649 3 380 44% (incl. 816 Capital 46%
Slide 6: Deposit Base Development
DEPOSIT BASE DEVELOPMENT L/D = 98,6% in PLN m Alior comparable Alior + Meritum L/D=85% Retail +22% Deposits Loans 67% 57% +4% 18 603 15 199 14 849 15 744 Term, own 10 411 15 727 banking sec., (incl. 1 867 8 588 8 113 8 544 13 769 Meritum) other Current 8 192 Loans 6 611 6 736 7 200 (incl. 992 Meritu
Slide 7: Credit Risk Overview
CREDIT RISK OVERVIEW Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q1'15 Alior + Meritum NPL total (%) 12,8 13,2 11,8 12,0 Market avg.* 9,5 9,1 9,8 10,2 10,7 8,4 8,8 9,0 11,3 12,0 3,4 2,3 2,5 2,5 2,2 2,4 2,4 Corporate Retail Mortgage Coverage ratio (%) Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q1'15 Alior + Meritum 61 63 63 61
Slide 8: Net Interest Margin
NET INTEREST MARGIN Alior NIM development (YTD) Market Alior comparable Alior + Meritum average 4,5% 4,7% 4,6%* 4,3% 2,9% Q1'14 Q4'14 Q1'15 Q1'15 Q1,15 NIM impacted by: - Immediate re-pricing of loans - Delay in term deposit re-pricing - Change of composition of retail book – fast growth of mortgage
Slide 9: Fees and Commissions
FEES AND COMMISSIONS Alior + Alior comparable Meritum Net F&C 96 93 93 84 84 85 F&C income 139 135 135 134 136 125 51 other 57 59 64 65 48 42 bancassurance 34 43 39 34 35 payment and credit 29 32 23 20 20 cards servicing* 22 16 16 brokerage fees 14 13 12 14 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q1'15 -42 -5
Slide 10: Capital Position Allows for Continuous Profitable Growth
CAPITAL POSITION ALLOWS FOR CONTINUOUS PROFITABLE GROWTH YTD Alior comparable Alior + Meritum 12,1% 12,4% 12,2% 11,2% 11,6% 10,9% 1,1% 1,2% 1,1% 1,2% 1,1% 1,2% Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q1'15 ROE ROA Alior comparable Alior + Meritum 13,1% 13,8% 12,4% 12,8% 13,0% 11,5% 12,0% 11,2% 10,8% 10,4% Q1'
Slide 11: Strict Cost Discipline Maintained
STRICT COST DISCIPLINE MAINTAINED in PLN m Costs – Q1’15 C/I = 49,6% Revenues Alior comparable Alior+Meritum Alior comparable Alior+Meritum +25% +16% 520 483 84 417 79 +20% 60 93 93 +12% 84 240 258 215 20 21 21 91 87 343 76 311 274 118 133 146 Q1'14 Q1'15 Q1'15 Q1'14 Q1'15 Q1'15 HR costs NHR costs O
Slide 12: Growing Customer Base
GROWING CUSTOMER BASE Customer acquisition on track Current accounts growth Q4’14 vs. Q4’13 (ths) +363 +143 +103 2 939 +96 PKO BP 342 2 473 2 576 295 2 234 2 330 122 123 121 120 2 454 2 520 Alior Bank 254 119 2 352 2 115 2 209 mBank 198 BZ WBK 159 Getin Noble 102 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Retail
Slide 13: Diversified Distribution Network
DIVERSIFIED DISTRIBUTION NETWORK 4th largest distribution network in Poland Branches Agencies Alior Express 859 836 831 720 221 211 211 100 438 411 428 414 411 292 230 199 97 50 149 195 208 209 210 211 209 2009 2010 2011 2012 2013 2014 Q1'15 Post merger with Meritum Alior distribution network (incl.
Slide 14: Agenda
AGENDA • Highlights • Operational Performance • Strategic Initiatives • Outlook • Appendix 14
Slide 15: T-Mobile: Growth Initiative on Track
T-MOBILE: GROWTH INITIATIVE ON TRACK Client acquisition exceeds expectations • 202 K clients acquired since launch in May’14 Dynamic growth of loan distribution network • 135 store-in-store outlets as of end of April 2015 • Minimum 180 store-in-store outlets till the end of H1’15 • Further 60 possib
Slide 16: Consumer Finance Performance
CONSUMER FINANCE PERFORMANCE Increasing cross-sell volumes from CF customers Instalment loans average monthly volumes (PLN m; YTD) 06’14 07’14 08’14 09’14 10’14 11’14 12’14 01’15 02’15 03’15 675 690 697 710 722 718 737 742 730 721 -2% cross-sell* average monthly volumes (PLN m; YTD) 06’14 07’14 08’1
Slide 17: Agenda
AGENDA • Highlights • Operational Performance • Strategic Initiatives • Outlook • Appendix 17
Slide 18: Going Forward: 2015 Outlook including Meritum
GOING FORWARD 2015 Outlook including Meritum 2015 consensus of PLN 353 m* NIM ~4,7% C/I below 48% CoR ~2,5% Loan growth 2015 - PLN 5 billion net *based on the analysts forecasts with Meritum included published post 2014 results announcement J.P.Morgan - 2 April’15, Wood - 8 April’15, DB - 8 April’15
Slide 19: Agenda
AGENDA • Highlights • Operational Performance • Strategic Initiatives • Outlook • Appendix 19
Slide 20: Income Statement Snapshot
INCOME STATEMENT SNAPSHOT in PLN m Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Interest income 399 437 462 443 481 Interest expense -125 -129 -138 -120 -138 Net interest income 274 307 324 323 343 Dividend 0 0 0 0 0 Fee and commission income 125 139 135 135 136 Fee and commission expense -42 -55 -50 -39 -43 Net f
Slide 21: Balance Sheet Snapshot
BALANCE SHEET SNAPSHOT 31 Mar’14 30 Jun’14 30 Sep’14 31 Dec’14 31 Mar’15 Cash and balances with Central Bank 1 078 1 057 1 019 1 158 1 378 Financial assets held for trading 208 285 421 477 525 Financial assets available for sale 2 723 1 473 2 063 2 652 2 494 Hedging derivatives 21 16 53 80 120 Recei
Slide 22: Meritum Proforma Income Statement Snapshot
MERITUM PROFORMA INCOME STATEMENT SNAPSHOT in PLN m 2014 Q1’15 Interest income 429,4 97,2 Interest expense -83,7 -23,1 Net interest income 345,7 74,1 Fee and commission income 21,4 3,8 Fee and commission expense -11,4 -3,5 Net fee and commission income 9,9 0,4 Net gain (realized) on other financial
Slide 23: Meritum Proforma Balance Sheet Snapshot
MERITUM PROFORMA BALANCE SHEET SNAPSHOT ASSETS 31 Mar’14 31 Dec’14 31 Mar’15 Cash and operations with Central Bank 40,6 108,1 95,9 Financial sector receivables 77,4 70,0 50,7 Non-financial and budgetary units receivables 2 298,0 2 606,8 2 742,8 Debt securities 411,6 432,4 480,9 Shares and participat
Slide 24: Shareholding
SHAREHOLDING Largest free float among Polish financials institutions 18.3m shares - 25,3% Entities controlled by Carlo Tassara Group 5.1m shares – 7,0% Genesis Asset Managers LLP 45,1m shares – 62.5% Market free float 3.8m shares – 5,2% Aviva OFE Carlo Tassara has committed to sell at least 25% to a
Slide 25: Continued Strong Loan Growth in Retail & SME
CONTINUED STRONG LOAN GROWTH IN RETAIL & SME Retail loans (new production per quarter) 1 809 1 621 1 681 66 1 641 1 489 73 90 Other retail 1 314 125 1 374 1 189 1 271 74 629 Mortgages for 54 370 61 546 562 72 423 real estate 74 322 342 260 247 1 126 992 1 062 1 114 990 868 939 938 971 Cash loans Q1'
Slide 26: Employees
EMPLOYEES Persons 6 512 6 500 6 707 6 834 6 566 6 154 6 413 2 386 2 253 2 325 2 426 2 186 2 405 2 485 3 749 4 027 4 114 4 160 4 382 4 408 4 380 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Outlets Headquaters FTEs 6 559 6 637 6 384 6 157 6 237 6 240 5 712 2 254 2 343 2 133 2 444 2 349 2 202 2 303 3 713
Slide 27: Continued Growth of Market Share
CONTINUED GROWTH OF MARKET SHARE Deposits MARKET SHARE Loans 3,2% 3,1% 2,7% 2,8% 2,7% 2,6% Q1'14 Q4'14 Q1'15 Q1'14 Q4'14 Q1'15 Deposits MONTHLY GROWTH (%) Loans Total Retail Corporate Total Retail Corporate ALIOR Market ALIOR Market ALIOR Market ALIOR Market ALIOR Market ALIOR Market OCT 2,9 0,7 -0,
Slide 28: Polish Macro Outlook
POLISH MACRO OUTLOOK GDP growth (% yoy) Investments and private consumption (% yoy) 10,6 Investments 4,5 Private 3,9 consumption 4,8 3,3 3,5 4,1 3,2 3,0 2,1 2,6 2,5 0,8 1,9 0,2 1,6 1,6 0,9 -2,4 -0,8 -1,8 2009 2010 2011 2012 2013 2014 2015F 2009 2010 2011 2012 2013 2014 2015F Inflation (CPI % yoy) Un
Slide 29: Polish Macro Outlook
POLISH MACRO OUTLOOK NBP reference rate (%) WIBOR 3M (%) 4,50 4,99 4,25 4,27 4,13 3,95 3,50 3,50 2,71 2,50 2,06 1,90 2,00 2,00 2009 2010 2011 2012 2013 2014 2015F 2009 2010 2011 2012 2013 2014 2015F End of period End of period FX rate (EUR/PLN) Fiscal policy (% of GDP) 4,46 30 Public debt 57,2 60 56
Slide 30: Polish Banking Sector – Growth of the Main Balance Sheet Figures
POLISH BANKING SECTOR – GROWTH OF THE MAIN BALANCE SHEET FIGURES Assets Loans +8,7% +7,1% +5,1% 1 569 1 538 1 532 +6,0% 1 493 1 429 1 444 1 401 1 406 1 041 1 055 1 039 1 073 1 374 945 966 993 972 1 002 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4
Slide 31: Polish Banking Sector – Main P&L Lines Performance
POLISH BANKING SECTOR – MAIN P&L LINES PERFORMANCE NII NFC Result on banking activity 2,6 -3,5 -6,1 15,3 3,5 3,5 14,1 14,8 14,5 9,5 9,7 3,4 3,3 3,3 13,6 9,2 8,8 8,7 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 X - CHANGE VS. Q1’14 (%) Expenses* Net impair
Slide 32: 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 32
Slide 33: 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 Q1 2015. B