Alior Bank Sa · GPW:ALR
Alior Bank Sa — FY2015 Earnings Presentation
36 slides from Alior Bank Sa's earnings presentation, Mar 3, 2016
Slide 1: ALIOR BANK S.A. 2015 results presentation
ALIOR BANK S.A. 2015 results presentation March 3, 2016 1
Slide 2: Agenda
AGENDA • Highlights • Operational Performance • Strategic initiatives • Outlook • Appendix 2
Slide 3: Highlights: Reliable performance in line with expectations
HIGHLIGHTS Reliable performance in line with expectations. Bottom line at PLN 363 m (excl. one-offs*) as guided last March, Strong NIM performance despite unfavourable interest rate environment and strong competition (4,6% still the leader among Polish listed banks), Effectiveness remains a ke
Slide 4: Highlights: Strategic initiatives on track to become growth engines
HIGHLIGHTS Strategic initiatives on track to become growth engines in a near future Integration with Meritum within 12 months – the fastest in the Polish market (2015 synergies: PLN 38 m, 2015 integration cost: PLN 35 m), T-Mobile Polska – cash loans uptick (PLN 1 m per day), Successful entry
Slide 5: Agenda
AGENDA • Highlights • Operational Performance • Strategic initiatives • Outlook • Appendix 5
Slide 6: Key Financials
KEY FINANCIALS (A/B)-1 (D/F)-1 2015 (excl. M PLN 2015 2014 Q4'15 Q3'15 Q4'14 (%) (%) one-offs*) A B C D E F G H Net interest income 1 501 1 230 22 397 387 325 22 1 501 Net fee and commissions 332 348 -5 79 89 96 -17 332 Trading result & other 333 295 13 94 74 79 18 333 Operating income 2 166 1 873 1
Slide 7: Loan Book
LOAN BOOK Loan book split in PLN m +31% +24% 30 907 29 389 145 376 Other business 121 Factoring 505 5 482 Investment 23 648 4 917 loans 168 43% 517 43% Working 4 134 7 309 Capital 7 065 44% Business 366 Other retail 656 896 5 528 918 Mortgage other 368 6 718 Mortgage 877 6 243 real estate 4 991 57%
Slide 8: Deposit Base
DEPOSIT BASE L/D = 92% in PLN m Retail L/D=82% +44% Deposits Loans 64% 57% +37% 21 409 20 314 Term, own banking sec., 14 849 other 11 987 12 924 Current 8 113 Loans 17 595 8 327 8 485 6 736 Q4'14 Q3'15 Q4'15 Q4'15 Corporate L/D=109% +28% Deposits Loans +16% 36% 43% Term, own banking sec., 12 254 oth
Slide 9: Credit Risk Overview
CREDIT RISK OVERVIEW NPL total (%) 13,2 Market avg.* 12,0 12,0 10,8 9,5 9,8 9,7 9,8 10,1 9,8 9,8 11,4 2,9 2,2 2,4 2,2 2,2 2,8 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Corporate Retail Mortgage Coverage ratio (%) Market avg.* 61 64 65 65 63 55 57 59 57
Slide 10: Net Interest Margin
NET INTEREST MARGIN Alior NIM development (YTD) 4,7% 4,6% 4,6% Market 4,5% 4,5% average 2,7% 2015 Q1’15 1H’15 Q3’15 2015 Market average calculated as average of NIM for the following banks: (PKOBP, Getin Noble, BPH - Q3’15 as well as Alior, ING, Millennium, mBank, BZWBK, Bank Handlowy. Pekao – Q4’15
Slide 11: Fees and Commissions
FEES AND COMMISSIONS 96 93 Net F&C 89 79 70 145 140 F&C income 135 136 125 fees related to C/A, 59 75 72 loans, transfers 65 76 39 35 26 24 bancassurance 10 payment and credit 24 24 23 20 21 cards servicing 14 16 17 19 21 brokerage fees Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 -39 -43 -54 -56 F&C expenses -61
Slide 12: Capital Position
CAPITAL POSITION 12,4% 12,2% 11,5% 11,5% 9,5% 1,2% 1,2% 1,1% 1,1% 0,9% Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 ROE ROA 12,8% 13,0% 12,8% 12,7% 12,5% 11,2% 10,4% 10,2% 10,3% 9,7% Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 CAR Tier-1 Alior in advanced negotiations concerning guarantee on portion of corporate portfolio which
Slide 13: Strict Cost Discipline Maintained
STRICT COST DISCIPLINE MAINTAINED in PLN m 2015 C/I excluding below one-offs & integration costs = 46,5% +8,8% 57 35 9,2 1042 1108 1007 925 2014 2015 Integration Relief Fund SK Bank 2015 costs charge one-offs Integration costs in 2015: PLN 35 m 13
Slide 14: Customer Base
CUSTOMER BASE Customer base cleanup with new pricing policy introduced in January 2015. New CRM and product management to provide for more effective identification of clients needs and product penetration. Customer acquisition -10 +35 +32 +363 2 964 2 996 2 939 2 929 2 576 295 289 290 133 122 123 12
Slide 15: Sales Network
SALES NETWORK Alior maintains one of the most extensive footprints Branches Agencies Alior Express Meritum 1035 945 204 889 836 851 174 129 211 211 153 523 429 414 411 408 331 328 211 209 210 2014 Q1'15 Q2'15 Q3'15 2015 Alior Tesco T-Mobile Total Sales outlets 851 71 607 1 529 Post merger with Merit
Slide 16: Agenda
AGENDA • Highlights • Operational Performance • Strategic Initiatives • Outlook • Appendix 16
Slide 17: Strategic Cooperation with PZU on Track
STRATEGIC COOPERATION WITH PZU ON TRACK PZU insurance offering for Stream 1: Stream 6: Dedicated cross-sell Alior; Alior banking offering B2B for PZU CRM initiatives Product offerings for Stream 7: Stream 2: employees of both Common sourcing synergies Employees institutions Sourcing Stream 3: Identi
Slide 18: Strong T-Mobile Partnership in Poland
STRONG T-MOBILE PARTNERSHIP IN POLAND EFFECTIVELY CAPTURING PROFITABLE GROWTH • 254 ths. customers acquired since launch in May’14 • Successful implementation of the phone financing project – total number of acquired customers is 27 ths. by EOY 2015 Maintaining strong customer • Increasing client ac
Slide 19: Extension of Alliance with Deutsche Telekom Group
EXTENSION OF ALIOR BANK STRATEGIC ALLIANCE WITH DEUTSCHE TELEKOM GROUP Agreement with strong partner to enter high potential CEE market • over 6 m clients of Telekom Romania MC • one of largest economies in our region, high growth potential for banking services, dynamic growth of smartphones (28%, w
Slide 20: Agenda
AGENDA • Highlights • Operational Performance • Strategic initiatives • Outlook • Appendix 20
Slide 21: Going Forward: 2016 Outlook
GOING FORWARD 2016 Outlook 2016 consensus of PLN 322 m* NIM ~4,6% C/I below 48% excluding banking tax CoR ~2,3% Loan growth 2016 PLN 5 billion net *based on the latest analysts forecasts SG – February 8; Ipopema – February 8; Citi – February 19; JP Morgan – February 26. 21
Slide 22: Agenda
AGENDA • Highlights • Operational Performance • Strategic initiatives • Outlook • Appendix 22
Slide 23: Consumer Finance Performance
CONSUMER FINANCE PERFORMANCE Cross-sell volumes impacted by competition Instalment loans average monthly volumes (PLN m; YTD) 03’15 06’15 09’15 12’15 910 883 912 1 053 +15% cross-sell average monthly volumes (PLN m; YTD) 03’15 06’15 09’15 12’15 745 808 883 978 +11% 23
Slide 24: White Label Business Capabilities Confirmed – Tesco
WHITE LABEL BUSINESS CAPABILITIES CONFIRMED – COOPERATION WITH TESCO TO BE CONTINUED THE SITUATION OF THE PROJECT • Growth strategy developed and agreed with Tesco PROJECT PERFORMANCE • Current Loan Portfolio: 120 m PLN • 2015 Cash Loan sales 35% higher than last year • JV achieved positive results
Slide 25: Income Statement Snapshot
INCOME STATEMENT SNAPSHOT in PLN m Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Interest income 766 481 525 553 840 Interest expense -441 -138 -151 -167 -443 Net interest income 325 343 374 387 397 Dividend 0 0 0 0 0 Fee and commission income 135 136 125 145 140 Fee and commission expense -39 -43 -54 -56 -61 Net f
Slide 26: Balance Sheet Snapshot
BALANCE SHEET SNAPSHOT 31 Dec’14 31 Mar’15 30 Jun’15 30 Sep’15 31 Dec’15 Cash and balances with Central Bank 1 158 1 378 1 815 1 348 1 750 Financial assets held for trading 477 525 427 365 391 Financial assets available for sale 2 652 2 494 2 714 4 016 4 253 Hedging derivatives 80 120 49 123 140 Rec
Slide 27: Shareholding
SHAREHOLDING Largest free float among Polish financials institutions 14.5m shares - 19,97% PZU S.A. & PZU Życie S.A. 5.1m shares - 7,00% Genesis Asset Managers LLP 3.8m shares - 5,27% 45,5m shares – 62.5% Alior Lux S.a.r.l. & CO S.C.A. Market free float 3.8m shares - 5,23% Aviva OFE On October 12th
Slide 28: New Loans Sales in Retail & SME
NEW LOANS SALES IN RETAIL & SME Retail loans (new production per quarter) Other retail 1 809 1 692 Mortgages for 1 621 1 681 1 641 1 626 1 489 66 1 530 44 real estate 125 1 374 73 90 55 46 74 629 529 370 61 546 562 556 342 423 526 Cash loans 1 126 971 992 1 062 1 114 990 949 1 023 1 119 Q4'13 Q1'14
Slide 29: Employees
EMPLOYEES FTEs 7 098 6 637 6 738 6 504 714 6 361 651 Meritum 4 294 3 697 3 524 4 251 3 928 Outlets Headquaters 2 807 2 837 2 343 2 133 2 159 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 29
Slide 30: Continued Growth of Market Share
CONTINUED GROWTH OF MARKET SHARE Deposits MARKET SHARE Loans 3,4% 3,5% 3,3% 3,3% 2,7% 2,8% Q4'14 Q3'15 Q4'15 Q4'14 Q3'15 Q4'15 Deposits MONTHLY GROWTH (%) Loans Total Retail Corporate Total Retail Corporate ALIOR Market ALIOR Market ALIOR Market ALIOR Market ALIOR Market ALIOR Market JUL 3,9 0,3 2,7
Slide 31: Polish Macro Outlook
POLISH MACRO OUTLOOK GDP growth (% yoy) Investments and private consumption (% yoy) 10,6 Investments Private 4,50 consumption 3,90 7,1 6,8 3,40 3,40 3,2 3,30 2,6 4,6 0,8 0,9 4,1 3,6 0,2 2,5 1,90 1,60 -2,4 -1,8 2010 2011 2012 2013 2014 2015 2016F 2010 2011 2012 2013 2014 2015 2016F End of period End
Slide 32: Polish Macro Outlook
POLISH MACRO OUTLOOK NBP reference rate (%) WIBOR 3M (%) 4,50 4,99 4,25 4,13 3,50 3,95 2,50 2,71 2,00 2,06 1,50 1,50 1,72 1,70 2010 2011 2012 2013 2014 2015 2016F 2010 2011 2012 2013 2014 2015 2016F End of period End of period FX rate (EUR/PLN) Fiscal policy (% of GDP) 4,46 57,2 30 60 56,2 55,6 25 5
Slide 33: Polish Banking Sector – Growth of Main Balance Sheet Figures
POLISH BANKING SECTOR – GROWTH OF THE MAIN BALANCE SHEET FIGURES Assets Loans +4,4% +6,3% +9,0% +6,9% 1 609 1 600 1 569 1 577 1 538 1 532 1 493 1 444 1 074 1 090 1 108 1 105 1 406 972 1 002 1 041 1 055 1 039 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2
Slide 34: Polish Banking Sector – Main P&L Lines Performance
POLISH BANKING SECTOR – MAIN P&L LINES PERFORMANCE NII NFC Result on banking activity +6,1 +5,6 -6,6 3,5 14,5 14,4 9,3 3,3 3,4 3,4 3,3 13,6 13,4 13,7 8,8 8,7 8,4 9,0 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 X - CHANGE VS. Q4’14 (%) Expenses* Net impai
Slide 35: 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 35
Slide 36: 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 2015. Bank