Alior Bank Sa · GPW:ALR
Alior Bank Sa — FY2024 Earnings Presentation
40 slides from Alior Bank Sa's earnings presentation, Nov 6, 2024
Slide 1: Presentation of results for 2024
Presentation of results for 2024 Warsaw, March 4, 2025
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 2024, Alior Bank achieved record financial results
In 2024, Alior Bank achieved record financial results In 2024, revenues amounted to PLN bn 6.06 (+8% y/y) • net interest income of PLN bn 5.18 (+9% y/y) The number of mobile app users was 1.27 mn • net commission income PLN mn 867 (+1% y/y) (17% more than at the end of December 2023) Net profit in 2
Slide 5: Another successful year – growth of the loan portfolio while maintaining high profitability
Another successful year for Alior Bank – growth of the loan portfolio while maintaining high profitability Assets (PLN bn) Deposits* (PLN bn) Gross Performing Loans** (PLN bn) +4% +5% +3% 93,3 76,9 61,4 73,1 59,4 90,1 2023 2024 2023 2024 2023 2024 C/I 2024 NIM 2024 ROE 2024 COR 2024 TCR 2024 34.9% 5
Slide 6: Consistent growth in the number of customers with banking relationship
RETAIL Consistent growth in the number of customers with banking relationship CUSTOMERS Number of customers with regular inflows (k) Users of Alior Bank mobile app (k) +7% / +65 k +17% / +189 k 1 034 1 045 1 400 1 199 1 237 1 270 1 016 1 081 1 146 991 1 200 980 1 000 800 600 400 200 0 4Q 23 1Q 24 2Q
Slide 7: Growth of the deposit and loan portfolio (Retail)
RETAIL Growth of the deposit and loan portfolio CUSTOMERS Balance of assets of retail customers (PLN bn) Gross loans to retail customers (PLN bn) +8% +3% 72,0 63,4 64,1 65,8 39,7 41,1 67,0 61,0 62,5 62,0 6,2 6,0 6,3 6,0 6,1 5,4 4,9 57,0 1,5 3,1 1,3 3,7 1,1 4,2 0,6 18,6 20,5 52,0 0,7 47,0 14,2 14,2 1
Slide 8: Good results in the Business Customer segment
BUSINESS Good results in the Business Customer segment CUSTOMERS Revenues* y/y Revenue after cost of NPL y/y risk y/y +1.4% +3.8% -2.15 pp. PLN mn 1 676 in 2024 Total committed loan limit (PLN bn) ** -16% • Market share in sales in 4Q 24 at 4% (+0.9 pp. y/y) 2,9 • In 2024 we increased our market sha
Slide 9: Improvement in the structure of the Business Customer portfolio
BUSINESS Improvement in the structure of the Business Customer portfolio* CUSTOMERS Loan volume (PLN bn) Loan volume (PLN bn) performing portfolio -3% - 18,0 18,0 17,5 17,4 17,5 14,7 15,1 14,7 14,6 14,7 IV 4Qkw.23 23 I kw.24 1Q 24 II kw.24 2Q 24 III 24 3Q kw.24 IV 24 4Q kw.24 4Q IV 23 kw.23 I1Q 24 k
Slide 10: An upward trend in important performance measures
BUSINESS An upward trend in important performance measures CUSTOMERS Sale of accounts in the Micro segment (k) Share of online accounts in sales in the Micro segment +99% +18% +19 +99% pp. 4,8 5,1 5,0 72% 4,6 69% 4,2 61% 56% 52% IV kw.23 4Q 23 I kw.24 1Q 24 II kw.24 2Q 24 III kw.24 3Q 24 IV 24 4Q kw
Slide 11: Alior Leasing's portfolio reached PLN bn 6.6, an increase by 6% y/y
Alior Leasing's portfolio reached PLN bn 6.6, an increase by 6% y/y Lease and loans portfolio (PLN mn) Sale of leases and loans (PLN mn) +6% +8% +2% 3 080 6 577 6 411 6 435 6 341 2 841 6 194 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 2023 2024 • Alior Leasing's sales in 2024 amounted to PLN mn 3 080 and were 8%
Slide 12: Offer close to our customers
Offer close to our customers ALIOR KIDS The Jakże Osobiste account with the Alior Kids app for children aged 7 to 12 is the first step towards the financial education of the youngest. The Alior Kids app facilitates the entrance to the world of finance in a safe and friendly way thanks to full contro
Slide 13: Credit risk
13 Credit risk
Slide 14: Stable and safe position of the Bank: capital and liquidity surplus above 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 21,78% 202% 21,44% 21,08% 188% 191% 20,51% 187% 20,23% 181% 179% 177% 18,45% 162% 18,27% 17,83% 17,46% 17,31% 17,53% 17,11% 147% 143% 1
Slide 15: Alior Bank consistently improves the quality of its loan portfolio and reduces cost of risk
Alior Bank consistently improves the quality of its loan portfolio and reduces the 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 0,98% 0,62% 8,58% 0 6,81% 0 2019 2020 2021 2022 2023 2024 2019 2020 2021 20
Slide 16: Stable improvement in risk costs, with effect of segmental model calibration
Stable improvement in risk costs, with a visible effect of segmental model calibration in 4Q 24 Impaired loans (PLN bn) NPL reserve coverage ratio* Cost of Risk – CoR%** 0,00% 7 0,92% 9,00% 8,58% 6 0,68% 7,65% 6 0,60% 8,00% 7,10% 6,78% 6,81% 5 0,47% 7,00% 54,0% 5 51,2% 51,1% 6,00% 50,0% 50,4% 0,23%
Slide 17: Financial results
17 Financial results
Slide 18: Dynamic growth of revenues (+8% y/y) and net profit (+20% y/y) in 2024
Dynamic growth of revenues (+8% y/y) and net profit (+20% y/y) in 2024 Total revenue (PLN mn) +428 (+8%) +12 (+1%) In 2024, revenues amounted to PLN bn 6.06 • net interest income of PLN bn 5.18 (+9% y/y) • net commission income PLN mn 867 (+1% y/y) 6 060 1 533 1 498 1 577 1 545 5 632 1 440 In 4Q 24,
Slide 19: Income statement
Income statement PLN mn 4Q 23 4Q 24 % y/y y/y 2023 2024 % y/y y/y Total Income 1 532,6 1 544,9 1% 12,3 5 632,2 6 060,0 8% 427,8 Net interest income 1 289,2 1 312,0 2% 22,8 4 772,4 5 183,7 9% 411,3 Net fee and commission income 250,7 221,1 -12% -29,6 857,5 867,0 1% 9,5 Other income -7,3 11,9 -262% 19
Slide 20: Net interest income increased by 9% y/y due to lower interest expenses
Due to the reduction of interest expenses, in 2024 Alior Bank increased its net interest income by 9% y/y Interest income and expenses (PLN mn) Interest margin and financing cost* -3% -2% -3% CoF NIM NIM - CoR 7 395 7 234 6,22% 6,32% 00 5,96% 6,00% 1 864 1 824 1 857 1 808 1 647 1 651 1 745 416 424 5
Slide 21: Stable level of net fee and commission income each quarter
In 2024 Alior Bank generated a stable level of net fee and commission income each quarter Net Fees and Commissions Income (PLN mn)* +1% 251 +4% 858 867 Bank accounts, transfers, cash 44 216 217 221 -2% y/y +4% y/y operations (net) 213 169 175 19 43 44 44 44 Bancassurance (net) +3% y/y 87 79 -10% y/y
Slide 22: The Bank maintains operational efficiency
The Bank maintains operational efficiency, supported by decreasing inflationary pressure on costs Operating costs (PLN mn) C/I ratio** +7% +4% C/I normalized*** C/I reported 2 118 586 - % y/y 1 977 -31% y/y 562 38,6% 41 545 37,9% 59 65 514 82 +26% y/y 270 41 259 +5% y/y 61 473 36,4% 64 64 35,7% 37,9
Slide 23: Why Alior Bank?
Why Alior Bank? ▪ Safe and stable capital position ▪ Improvement in the loan portfolio quality ▪ High NIM ▪ Increasing number of customers with primary relationship ▪ High performance due to an increase in revenue and financing cost optimalization ▪ Consumer Finance market leader ▪ Growing share of
Slide 24: Other issues
24 Other issues
Slide 25: Moderate recovery in 2024 in an environment of elevated interest rates
Moderate recovery in 2024 in an environment of elevated interest rates In 2024, the economic recovery was driven by consumption Restoration of savings and reduction of household debt GDP growth (real, %, y/y) and its structure (pp), Poland Financial assets of households, Poland 10,0 6,9 120% 6,2 5,3
Slide 26: There is a need and space for interest rate cuts in Europe
There is a need and space for interest rate cuts in Europe The Polish economy stands out positively within the EU The weakness of German industry had a negative impact on the Polish sector GDP growth in 2024 (%) Manufacturing 4,0 (2021=100, real, seas. adj.) 3,0 120 2,0 110 100 1,0 90 0,0 80 -1,0 70
Slide 27: Recovery expected in 2025
Recovery expected in 2025 Acceleration of investments will support the economic situation Rates cautiously lower due to stabilization inflation GDP growth with main components, Poland CPI and interest rates, Poland 16 14 12 14 10 6,9 12 8 5,3 6 2,9 3,7 3,6 10 4 6,75 0,1 8 2 5,75 5,75 -2,0 5,00 0 6 -
Slide 28: Alior Bank's Christmas Help
Alior Bank’s Christmas Help Give a Gift For years, Alior Bank has been organizing the "Give a Gift" campaign, in which employees fill the Bringing joy to children through the role of Santa Claus, making the dreams of children Dr Clown foundation and seniors from all over Poland come true. Last year,
Slide 29: External stakeholders appreciate Alior Bank
External stakeholders appreciate Alior Bank Alior has been recognized in the Institution of the Alior Bank's iLAB has Year 2024 ranking. The been awarded the title Bank took fourth place in In Deloitte's Digital of World's Best the category "Best quality Banking Maturity Financial Innovation of serv
Slide 30: Alior Bank's investment services
Alior Bank’s investment services Alior Bank’s Brokerage House Alior TFI In 2024, the Brokerage House's net commission income was 4Q 24 was Alior TFI's fourth consecutive record quarter in terms 11% higher than a year earlier and reached nearly PLN mn of gross fund sales. At the end of December 2024,
Slide 31: Gross structure of the loan portfolio
Gross structure of the loan portfolio Loan portfolio in total (PLN mn) Loan portfolio structure in total +1% -0,5% 65 060 66 257 65 932 25 342 25 665 24 848 61% 62% 60% 61% 62% 39% 38% 40% 39% 38% 39 718 40 591 41 084 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 4Q 23 3Q 24 4Q 24 Retail Segment Corporate Segment R
Slide 32: Deposit portfolio managed to optimize cost of financing
The bank manages the deposit portfolio in order to optimize the cost of financing (data in PLN mn)* Structure of net liabilities to Customers Net liabilities structure - Retail Segment Net liabilities structure - Business Segment +5% +7% +2% +3% +3% +3% 74 599 76 937 73 078 653 54 172 22 402 22 765
Slide 33: Asset structure of Alior Bank Group (PLN bn)
Asset structure of Alior Bank Group (PLN bn) Alior Bank Group assets Receivables from Customers (net) +19% +12% +4% +3% 90,1 93,3 83,0 82,9 7,0 -33% y/y 62,7 78,6 10,3 61,0 56,2 58,2 57,6 8,7 8,3 6,7 23,6 +25% y/y 18,8 22,9 0% y/y 15,7 16,1 17,0 23,0 21,8 22,4 22,3 61,0 62,7 +3% y/y 56,2 58,2 57,6 3
Slide 34: Liability structure of Alior Bank Group (PLN bn)
Liability structure of Alior Bank Group (PLN bn) Alior Bank Group liabilities Liabilities to Customers* +17% +19% +5% +4% 93,3 76,9 90,1 -34% y/y 71,5 73,1 5,2 70,0 0,7 83,0 82,9 7,8 0,5 +21% y/y 78,6 78,6 0,5 0,5 5,6 6,7 7,4 6,3 0,6 5,4 7,9 -6% y/y 5,5 4,3 5,7 15,1 7,2 15,0 14,1 +7% y/y 17,3 76,9 +
Slide 35: Consolidated statement of the financial standing of the Alior Bank Group
Consolidated statement of the financial standing of the Alior Bank Group (PLN mn) 4Q 23 1Q 24 2Q 24 3Q 24 4Q 24 % q/q q/q % y/y y/y Total assets 90 134,1 91 379,5 90 146,8 91 183,3 93 293,5 2% 2 110,1 4% 3 159,4 Cash and cash equivalents 2 539,3 2 180,2 2 077,9 3 265,3 2 123,4 -35% -1 142,0 -16% -41
Slide 36: New sale of loans (PLN mn)
New sale of loans (PLN mn) Sales in the Business Customer Segment* -16% 3 069 +11% 2 833 2 891 2 432 2 414 1 197 2 446 2 399 2 432 2 196 2 276 2 197 2 082 2 103 1 999 1 525 691 1 424 773 762 1 823 628 1 137 1 314 754 1 186 +14% y/y 603 1 455 1 194 1 516 886 562 1 741 1 872 1 673 1 568 1 637 1 220 1
Slide 37: Additional information
Additional information Employment (FTEs) Alior Bank’s branches -123 -14 -2% -3% -88 -1% -5 7 271 -1% 7 229 7 247 7 194 7 106 530 528 521 521 516 519 524 530 514 497 -4% y/y 67 66 58 53 189 187 186 185 185 -2% y/y 6 644 6 681 6 659 6 627 6 609 -1% y/y 341 341 335 336 331 -3% y/y IV kw.23 I kw.24 II k
Slide 38: Alior Bank S.A. - quotations, shareholding structure, ratings
Alior Bank S.A. - quotations, shareholding structure, ratings Alior Bank share price: PLN 85.98 (data as of December 30, 2024) Alior Bank’s share price compared to WSE indices (comparable data for 12 months) Capitalization: PLN bn 11.2 110 Value of shares in free float: PLN bn 5.5 P/BV**: 1.0x 100 P
Slide 39: 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 More information Next events: Internet Website • Results for 1Q 25 –
Slide 40: 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