Alior Bank Sa · GPW:ALR
Alior Bank Sa — Q1 2018 Earnings Presentation
32 slides from Alior Bank Sa's earnings presentation, May 10, 2018
Slide 1: Alior Bank S.A. Q1'2018 Results Presentation
ALIOR BANK S.A. Q1’2018 RESULTS PRESENTATION 10 May 2018
Slide 2: Agenda
AGENDA Key highlights Operational performance 2018 Guidance Appendix 2
Slide 3: Key Highlights (1/2)
KEY HIGHLIGHTS (1/2) • Q1’18 bottom line above PAP consensus: PLN 171 M vs. PLN 165.7 M YoY. Increase of PLN 89 M vs Q1’17 and PLN 28 M vs Q4’17. • Significant YoY increase of operational revenue of 11.1% (Q1’18 vs. Q1’17), thereof NII increase of 10.6%. • CoR* at 1.8% - below previous assumptions.
Slide 4: Key Highlights (2/2)
KEY HIGHLIGHTS (2/2) • Decrease in net interest margin (NIM*) from 4.6% in Q4’17 to 4.5% in Q1'18 due to increased financing costs (deposit campaigns aimed at attracting clients from the Bank's strategic behavioral segments), an increase in the balance of liquid assets and additional growth (mainly
Slide 5: Dynamic Growth in Micro Loans and Leasing
DYNAMIC GROWTH IN MICRO LOANS AND LEASING Loan book – MICRO enterprises [in PLN B] New sale - MICRO [in PLN M] +5% 5.2 5.5 4.8 5.0 4.6 +29% 736 571 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 Q4 2017 Q1 2018 Leasing receivables [in PLN B] New sale – leasing [in PLN M] 2.2 +14% 605 1.7 +30
Slide 6: Q1'18 Bottom Line Decomposition (in PLN M)
Q1’18 BOTTOM LINE DECOMPOSITION (IN PLN M) QTD in PLN M 980 Other income 45 Trading result 90 NFC 114 458 241 NII 731 50 20 60 171 191 Total revenues General Net Bank tax FV amortization Net profit excl. Income tax Net profit administrative impairment after tax FV amortization expenses 6
Slide 7: Digital Transformation – Q1 2018
DIGITAL TRANSFORMATION – Q1 2018 Q4 2017 Q1 2018 Further development of the zafirmowani.pl platform 1 783 users 4 072 users • Implementation of the unified tax file generator for customers using online accounting. Full automization of credit processes in Micro segment 20% of new sales 33% of new sal
Slide 8: Agenda
AGENDA Key highlights Operational performance 2018 Guidance Appendix 8
Slide 9: Key Financials – P&L
KEY FINANCIALS – P&L PLN M Q1 2018 Q1 2017 ch. yoy. (%) ch. yoy. (PLN M) Total revenue 980 868 13 112 General administrative expenses -458 -489 -6 31 Impairment losses & provisions -241 -212 14 -29 Bank tax -50 -50 0 0 Profit before tax 231 118 97 113 Income tax -60 -35 71 -25 Net profit 171 82 108
Slide 10: Key Financials – Volumes and Ratios
KEY FINANCIALS – VOLUMES AND RATIOS PLN M 31.03.2018 31.12.2017 change (PLN M) change (%) Loans 51 569 51 267 303 0.6 Deposits 59 024 57 614 1 409 2.4 Total equity 6 160 6 762 -602 -8.9 Total assets 70 534 69 494 1 040 1.5 % (yearly) Q1 2018 Q1 2017 ch. yoy. (p.p.) ch. yoy. (%) ROE 11.5 5.4 6.1 113.
Slide 11: Further Enhancement of Liquidity Position in Q1'18
FURTHER ENHANCEMENT OF LIQUIDITY POSITION IN Q1’18 LCR ratio Deposits [PLN B] Liquid assets* [PLN B] 57.6 59.0 51.7 21.1 20.9 19.9 124% 130% 36.5 38.1 31.8 88% 10.1 15.6 16.0 30.06.2017 31.12.2017 31.03.2018 30.06.2017 31.12.2017 31.03.2018 30.06.2017 31.12.2017 31.03.2018 retail business …due to a
Slide 12: Stable Loan Profitability with Slightly Higher Cost of Financing
STABLE LOAN PROFITABILITY WITH A SLIGHTHLY HIGHER COST OF FINANCING DESPITE SIGNIFICANT GROWTH IN LIQUIDITY Cost of financing* [%] Loan profitability** [%] 6.59% 6.58% 6.60% 1.15% 1.22% 1.26% Q3’17 Q3 '17 Q4’17 Q4 '17 Q1Q1’18 '18 Q3’17 Q4’17 Q1’18 Temporary increase of cost of financing (+11 bps) du
Slide 13: Fees and Commission Breakdown (in PLN M)
FEES AND COMMISSION BREAKDOWN (IN PLN M) -2.9 (-2%) Net F&C 114 117 6.6 (3%) F&C income 195 201 17.5 20.9 bancassurance 45.5 56.7 payment and credit cards servicing 28.4 24.7 brokerage fees fees related to C/A, loans, transfers 103.3 99.1 17 1Q’17 1Q’18 9.4 F&C expenses (+12%) -78.1 -87.5 13
Slide 14: Key Credit Risk Ratios
KEY CREDIT RISK RATIOS Market average* NPL total -0.1 -0.2 13.4% 13.3% 0.0 11.7% 11.5% 8.2 10.8 2.8 2.4% 2.4% Dec’17 Mar’18 Dec’17 Mar’18 Dec’17 Mar’18 BUSINESS RETAIL MORTGAGE NPL coverage ratio 67.7% 67.9% 41.8% 42.5% 63 34.2% 36.4% 51 51 Dec’17 Mar’18 Dec’17 Mar’18 Dec’17 Mar’18 Loan portfolio st
Slide 15: Profitability
PROFITABILITY 4.6% 4.8% 4.7% 4.6% 4.5% NIM 1Q’17 2Q’17 3Q’17 4Q’17 1Q’18 1kw.'17 1Q’17 2kw.'17 2Q’17 3Q’17 3kw.'17 4kw.'17 4Q’17 1Q’18 1kw'18 CoR -1.6% -1.8% -1.7% -1.7% -1.8% 3.0% 3.0% 3.0% 2.9% 2.7% NIM - CoR 1Q’17 2Q’17 3Q’17 4Q’17 1Q’18 15
Slide 16: Loan Portfolio Structure Development on Track to Achieve Strategic Targets
LOAN PORTFOLIO STRUCTURE DEVELOPMENT ON TRACK TO ACHIEVE STRATEGIC TARGETS Gross loan composition [%] Cash loans 31 29 28 segment Retail Mortgage loans 20 20 20 Other 7 5 7 11 Large 15 16 7 segment Business Medium 8 7 11 7 13 Small 7 10 Micro 8 8 Leasing 1 4 2016 Q1’18 2020 target 16
Slide 17: Deposit Book – Current Accounts and Term Deposits Structure
DEPOSIT BOOK – CURRENT ACCOUNTS AND TERM DEPOSITS STRUCTURE (IN PLN B) BANK: L/D = 87.4% +1.6 (+4%) Retail L/D = 73.7% 36.5 38.2 13.9 14.7 14.0 18.2 22.6 23.4 Term deposits, securities issued, other 31.03.2017 31.12.2017 31.03.2018 Current deposits -0.2 (-1%) Business 21.1 20.9 L/D = 112.4% 10.1 11.
Slide 18: Adequate Capital and Liquidity Position
ADEQUATE CAPITAL AND LIQUIDITY POSITION Capital position LCR ratio 15.2% 15.4% 12.1% 12.1% 124% 130% 88% TIER 1 TCR 30.06.2017 31.12.2017 31.03.2018 31.12.2017 31.03.2018 18
Slide 19: Agenda
AGENDA Key highlights Operational performance 2018 Guidance Appendix 19
Slide 20: 2018 Guidance
2018 GUIDANCE Q1’18 ACTUAL 2018 GUIDANCE NIM 4.5% 4.6% net interest margin C/I* 46.8% 44% cost/income CoR 1.8% 1.8% cost of risk Gross loan book PLN 1.4 B PLN 5.5-6.5 B growth** *Cost/Income ratio: numerator – costs (excl. banking tax), denominator – revenue (NII, NFC, trading and other) 20 **Gross
Slide 21: Agenda
AGENDA Key highlights Operational performance 2018 Guidance Appendix 21
Slide 22: Polish Macro Outlook
POLISH MACRO OUTLOOK GDP growth (% yoy) Inflation (CPI % yoy) 4.5 2.0 1.7 4.6 3.8 3.3 2.9 0.0 -0.6 -0.9 2014 2015 2016 2017 2018F 2014 2015 2016 2017 2018F year average NBP reference rate (%) Unemployment rate (%) 11.4 9.7 8.2 6.6 5.5 2.0 1.5 1.5 1.5 1.5 2014 2015 2016 2017 2018F end of period 2014
Slide 23: Income Statement Snapshot
INCOME STATEMENT SNAPSHOT in PLN M 1Q’18 1Q’17 Interest income* 948 867 Interest expense -217 -206 Net interest income 731 661 Fee and commission income 201 195 Fee and commission expense -87 -78 Net fee and commission income 114 117 Trading result 90 73 Net gain (realized) on other financial instru
Slide 24: Balance Sheet Snapshot
BALANCE SHEET SNAPSHOT in PLN M 31 Mar’18 31 Dec’17 Cash and balances with the Central Bank 1 440 965 Financial assets 13 410 13 643 Derivative hedging instruments 57 88 Amounts due from banks 1 128 902 Loans and advances to customers 51 569 51 267 Assets pledged as collateral 561 409 Property, plan
Slide 25: New Loans Sales in Retail & Corporate
NEW LOANS SALES IN RETAIL & CORPORATE RETAIL LOANS (NEW SALES PER QUARTER) Other retail 2 839 2 819 2 720 2 994 2 832 Mortgages 78 52 37 35 39 491 301 351 582 331 Cash loans 2 179 2 277 2 353 2 658 2 441 03.2017 06.2017 09.2017 12.2017 03.2018 CORPORATE LOANS (NEW SALES PER QUARTER) 5 365 4 649 4 47
Slide 26: Alior Bank Shareholding
ALIOR BANK SHAREHOLDING LARGEST FREE FLOAT AMONG POLISH FINANCIAL INSTITUTIONS PZU SA, PZU Życie SA and PZU SFIO UNIVERSUM 31.93% Others 48.48% 8.86% AVIVA OFE AVIVA BZ WBK 5.67% 5.06% BlackRock, Inc. Nationale-Nederlanden OFE *based on the number of shares registered on EGM held on 5 December 2017
Slide 27: Alior Bank Customer Base (in T)
ALIOR BANK CUSTOMER BASE (IN T) +2.3% 4 132 3 928 3 980 4 071 3 834 1Q’17 2Q’17* 3Q’17** 4Q’17 1Q’18 *Slight decrease in number of clients in Q2’17 is of technical nature as a result of new definition of active client. **In Q3’17 Alior Bank terminated 156 thousand inactive accounts. 27
Slide 28: FTE Evolution
FTE EVOLUTION -20.1% -1.3% 10 019 9 488 8 556 8 110 8 004 1Q’17 2Q’17 3Q’17 4Q’17 1Q’18 28
Slide 29: Alior Bank Branches
ALIOR BANK BRANCHES Number of branches 1 010 960 914 905 883 Branches 299 284 269 267 253 Agencies 711 676 645 638 630 1Q’17 2Q’17 3Q’17 4Q’17 1Q’18 29
Slide 30: 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 Bank contained in this Presentation are based on the consolidated financial statements of the Alio
Slide 31: 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 31
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