Alpha Bank S.a. · ATHEX:ALPHA
Alpha Bank — Investor Day (June 2023)
126 slides from Alpha Bank's investor day presentation, June 2023
Slide 1: Alpha Bank Investor Day: Creating Value, Empowering Growth
@®) ALPHA BANK NVESTOR DAY CREATING VALUE, EMPOWERING GROWTH
Slide 2: Disclaimers
Disclaimers This presentation has been prepared and issued by Alpha Services and Holdings S.A. and its 100% subsidiary, Alpha Bank S.A., solely for informational purposes. It is hereby noted that on 16.4.2021, the demerger of the credit institution under the former name “Alpha Bank S.A.” (which has
Slide 3: Agenda
2023 – 2025 AGENDA Vassilios Psaltis | Chief Executive Officer Strategy & Enablers Anastasia Sakellariou | General Manager – Chief Transformation Officer INVESTOR DAY – JUNE 2023 Fragkiski Melissa | General Manager – Chief Human Resources Officer Michalis Tsarbopoulos | Executive General Manager – C
Slide 4: Agenda
2023 – 2025 AGENDA Vassilios Psaltis | Chief Executive Officer Strategy & Enablers Anastasia Sakellariou | General Manager – Chief Transformation Officer INVESTOR DAY – JUNE 2023 Fragkiski Melissa | General Manager – Chief Human Resources Officer Michalis Tsarbopoulos | Executive General Manager – C
Slide 5: Alpha Bank: Creating Value, Empowering Growth
Alpha Bank: Creating Value, Empowering Growth A strong point of departure… …supported by macro tailwinds… …to deliver an ambitious plan Trust as a central element to our Profound positive changes to Greek Structural profitability improvement identity; our recognized customer economy ensuring sustain
Slide 6: Our franchise and achievements
Our franchise and achievements 6
Slide 7: Alpha Bank: The trusted relationship bank of Greece
Alpha Bank: The trusted relationship bank of Greece Our Identity and Strengths… …are reflected in our customer proposition Privately owned since inception Clients perceive Alpha Bank as more reliable, stable, humane and accessible with a mindset to deliver shareholder value and inspire We are renown
Slide 8: Solid financials, focused Greek franchise and international presence in attractive markets
Solid financials, focused Greek franchise and international presence in attractive markets FY 2022 FY 2022 FY 2022 Contribution to recurring Alpha Bank Group at a glance Business Units overview Group Profits4 Wholesale: Domestic leadership with high profitability €0.4bn Profit After Tax c. €17bn Net
Slide 9: Met and exceeded most of our targets, supported by macro tailwinds
Met and exceeded most of our targets, supported by macro tailwinds, while setting the foundations for future growth Key achievements FY 22 Results vs. Targets4 Cost-Income Ratio for domestic operations1 2022 c.46% Fully delivered Set strong profitability foundation ROCET12 for domestic operations1 2
Slide 10: Since 2019, we have been transforming the Bank across four main priorities
Since 2019, we have been transforming the Bank across four main priorities Restore our Revamp our Transform our Evolve Balance Sheet commercial engine operating model our culture Reduced NPEs by c. €23bn, Completed strategic business Carved out NPE unit Developed a robust leading to a c.40p.p. NPE R
Slide 11: Focus on Transformation Program
Focus on Transformation Program 11
Slide 12: Our Transformation Program is changing the whole bank and has already delivered substantial benefits
Our Transformation Program is changing the whole bank and has already delivered substantial benefits Transformation Program overview Impact areas 01 Changed the way the Bank works and delivers change Started in 2020 … covering the … with strong to accelerate delivery of the entire Bank across 7 top
Slide 13: We have changed the way the Bank works and delivers change
We have changed the way the Bank works and delivers change Impact areas Enabled the Bank to stretch Changed the way 01 the Bank works and ‘beyond its normal delivery capacity’ delivers change Delivered tangible 02 commercial impact and reinforced customer- centricity Raised level Prioritized Removed
Slide 14: Customer-centricity and commercial performance have been at the core of the program's impact
Customer-centricity and commercial performance have been at the core of the program’s impact W H E R E W E S TA R T E D W H E R E W E A R E T O D AY Impact areas Retail Branch used as the >95% of branch transactions already in digital Changed the way default channel channels 01 the Bank works and c.
Slide 15: The program has made the Bank's operating platform more efficient
The program has made the Bank’s operating platform more efficient Impact areas FW ROHM E R E W E S TA R T E D TW O H E R E W E A R E T O D AY FTE Manual data processing and 20% efficiency in FTE from central operations Changed the way efficiencies 01 the Bank works and handover between teams streaml
Slide 16: Macro and banking outlook
Macro and banking outlook 16
Slide 17: Greece transforming rapidly and on track to investment grade rating
Greece transforming rapidly and on track to investment grade rating EU funds inflow and structural reforms Robust public finances Improved confidence Total EU funds deployed to Greece, In business environment ranking Reduction of debt to GDP; From +16 c. €72bn including RRF Budget (Highest in EU c.1
Slide 18: Strengthening fundamentals for individuals and businesses
Strengthening fundamentals for individuals and businesses Individuals Businesses Consistent growth of disposable income c.3.5% Gross Disposable Income1 High Direct Foreign Investments +17% Flows of Direct Foreign Investments2; Record flows CAGR 2019 – 2022 CAGR 2019-2022 in 2022 Strong growth in hou
Slide 19: The country is set for sustained macroeconomic growth
The country is set for sustained macroeconomic growth Gradual reduction Continuous growth Increase of GDP of unemployment of disposable income Increase in house prices Real GDP (€ bn)1 Unemployment Rate (%)2 Median Disposable Income (€ k)3 House Price Index (points) 2.8% CAGR (2.0p.p.) 4 + % CAGR +3
Slide 20: International subsidiaries operate in positive macro environments
International subsidiaries operate in positive macro environments Romania Cyprus Real GDP Growth c. +3.5% c. +3% CAGR 2023 – 2025 CAGR 2023 – 2025 Unemployment Rate c.5% c.5% in 2025 in 2025 Gross Disposable Income1 c. +8% c. +8.5% CAGR 2023 – 2025 CAGR 2023 – 2025 CAPEX Investments2 c. +17% c. +5%
Slide 21: Our purpose and strategy
Our purpose and strategy 21
Slide 22: Building the new Alpha Bank guided by our new Purpose
Building the new Alpha Bank – leveraging on our strengths and guided by our new Purpose Our purpose Why we do what we do Enabling progress in life and business for a better tomorrow Our client promise Personalised Empowering Convenient Facilitating What we deliver Deep understanding of Trusted partn
Slide 23: Our 2025 strategy is focused on accelerating shareholder value creation
Our 2025 strategy is focused on accelerating shareholder value creation Key financial targets Evolving priorities over time Return on Tangible Equity1 Accelerated shareholder >12% in 2025 value creation EPS2 growth Return to profitability & top line growth Structurally higher profitability >20% CAGR
Slide 24: We have a clear path to returns in excess of >12% by 2025
We have a clear path to returns in excess of >12% by 2025 Evolution of return on capital Key levers More than double returns in Retail (cost management, higher fees, rate tailwinds) Higher fees through improved Wealth penetration in customer base ROTE1 Leverage Wholesale position to drive profits (d
Slide 25: Strong regulatory capital generation of €2.3bn, creating value for shareholders
Strong regulatory capital generation of €2.3bn, creating value for shareholders > 20% EPS1 GROWTH CAGR 2022 – 2025 Capital generation sources 2023 – 2025 (cumulative) Capital usage2 2023 – 2025 (cumulative) Profit after tax creating organic capital € 1.9bn €2.3bn Total Regulatory Capital generated C
Slide 26: Our six strategic priorities for 2025
Our six strategic priorities for 2025 1 2 3 4 5 6 Boost digital and focus Revamp service Consolidate Improve return on Maintain the resilience Leverage on high-value model to increase leadership in deployed capital in of our balance ESG for segments in Retail penetration in Wealth Wholesale Internat
Slide 27: Boost digital and focus on high-value segments in Retail
1 Boost digital and focus on high-value segments in Retail Core revenues (€ mn)1 Cost-Income Ratio (%) +7% CAGR c.(16p.p.) K E Y I N I T I AT I V E S Enhance productivity through automation and advanced analytics capabilities Migrate Mass offering to digital channels and ROCET1 (%)2 Unit sales per l
Slide 28: Revamp service model to increase penetration in Wealth
2 Revamp service model to increase penetration in Wealth Asset Management Balances (€ bn)1, 2 Total Revenues (€ mn)2 +13% CAGR +14% CAGR K E Y I N I T I AT I V E S Scale our ‘wealth engine’ by reinforcing product and service suite, and developing a commercial playbook for all segments Tailor segment
Slide 29: Consolidate leadership in Wholesale
3 Consolidate leadership in Wholesale Net Loans (€ bn)1 Total Revenues (€ mn)2 +4% CAGR +9% CAGR K E Y I N I T I AT I V E S Reinforce leadership in lending while ensuring adequate returns for capital through deeper commercial coverage Grow our fee-generating service business ROCET1 (%)3 Cumulative t
Slide 30: Improve return on deployed capital in International
4 Improve return on deployed capital in International focus Romania Total Revenues1 (€ mn) Cost-Income Ratio1 (%) +15% CAGR c.(19p.p.) K E Y I N I T I AT I V E S 3 Gain scale in Retail, accelerating lending momentum through digital and leveraging our strengths (payments, wealth) to grow Fee Income R
Slide 31: Maintain the resilience of our balance sheet
5 Maintain the resilience of our balance sheet CoR4 (bps) NPE Ratio and Coverage (%) 41% >60% Coverage K E Y I N I T I AT I V E S Continue selective growth of our loan book NPE ratio Diversified and prudently priced performing book Organic NPEs reduction, improving coverage ratio without excess cost
Slide 32: Leverage ESG for value creation
6 Leverage ESG for value creation Support an Environmentally Foster healthy economies and Ensure robust & transparent sustainable economy Societal progress Governance Our • Align our portfolio emissions to Net Zero • Enhance people’s financial health through our • Ensure the diversity and independen
Slide 33: To achieve our goals we are entering an era of accelerated delivery
To achieve our goals we are entering an era of accelerated delivery O U R K E Y E N A B L E R S T O D E L I V E R O U R S T R AT E G Y Maximise the potential of our People Elevate digital services and data capabilities Redefine HR to enable business transformation, new hires in key Enrich functional
Slide 34: Maximize the potential of our People
Maximize the potential of our People 34
Slide 35: We are a people-centred organization, with a strong emphasis on fostering a collaborative culture
We are a people-centred organization, with a strong emphasis on fostering a collaborative culture A large and diverse … with a strong focus …and a collaborative organization… on people… and open culture c.6,000 >5,000 c.50 Employees in Greece Employees trained per year New initiatives around 4 thema
Slide 36: Our people strategy is centered around three pillars
Our people strategy is centered around three pillars 3 Build a strong employee Embed new Enhance Develop Purpose Diversity, employee value proposition and Values Equity and communities Inclusion 2 Maximizing employee Invest in Promote Develop Develop learning flexible employees with strong potential
Slide 37: Enabling business transformation
1 Enabling business transformation ACHIEVEMENTS K E Y I N I T I AT I V E S c. 40% Redefine roles and capabilities Commercialize HR by introducing the role of HR Business Partners Focus on simplification and automation of HR processes and introduce of HR employee base refreshed through of HR employee
Slide 38: Maximizing employee potential and mobility
2 Maximizing employee potential and mobility ACHIEVEMENTS K E Y I N I T I AT I V E S c. 25 hours of training Invest in learning Create dedicated employees learning paths Launch four new learning Academies capturing the new strategic priorities per employee per year through (ESG, Digital, IT, Financi
Slide 39: Build a strong employee value proposition
3 Build a strong employee value proposition ACHIEVEMENTS K E Y I N I T I AT I V E S Diversity, Equity & Embed new Plan, host, and launch Purpose & Values internal event, integrating the operationalization plan with initiatives focused on Simplification, Innovation, and Purpose Inclusion strategy and
Slide 40: Elevate digital services and data capabilities
Elevate digital services and data capabilities 40
Slide 41: Significant progress in advancing our digital offering
We have made significant progress in advancing our digital offering and prepared a robust foundation to build on Significantly improved digital Strengthened our analytics Built a robust, diverse, and coverage of everyday banking engine to offer personalized integrated team of experts in- needs exper
Slide 42: Delivering a winning digital offering through three key pillars
We aim to deliver this winning digital offering to support the Bank's business targets through three key pillars PILLARS 01 Enrich functionalities and product offering to grow digital sales 02 Elevate our customers’ digital experience 03 Scale up and accelerate delivery 2025 AMBITION Daily banking n
Slide 43: We will continue enriching our Web and Mobile apps
We will continue enriching our Web and Mobile apps, while redesigning the digital customer experience Enrich functionalities and product offering 01 to grow digital sales 02 Elevate our customers’ digital experience Complete digitization of daily banking (e.g., KYC1 Re-build web and mobile apps keep
Slide 44: New client Collaboration Platform for a seamless experience
Example: we are launching a new client ‘Collaboration Platform’ for a seamless experience across different types of customer journeys Diverse set of journeys End-to-end digital ONLINE Start remote, Client complete online Collaboration Platform Start online, complete in branch Start in branch, comple
Slide 45: Our in-house delivery team is the backbone of impactful delivery
Our in-house delivery team is the backbone of impactful delivery leveraging strong technical expertise and banking knowledge 03 Scale up and accelerate delivery D E L I V E R Y M E C H A N I S M T O D AY KEY PRIORITIES c.150 14 agile delivery teams organized in domains and tribes Expand team size an
Slide 46: Front-loaded 3-year execution plan
We are aiming to achieve our 2025 ambition through a front-loaded 3-year execution plan Deliver new generation Expand digital offering and of digital ecosystem partnerships 2025 Accelerate the digitization 2024 of Daily banking Launch of new digital experience services through New products added to
Slide 47: Closing remarks
Closing remarks 47
Slide 48: A focused strategy built around our identity and strengths
A focused strategy built around our identity and strengths to create superior value for our shareholders Key financial targets Clear identity grounded on trust, value creation and customer relationships Return on Tangible Equity1 >12% in 2025 Bold decisions, discipline and sharp execution since 2019
Slide 49: Agenda
2023 – 2025 AGENDA Vassilios Psaltis | Chief Executive Officer Strategy & Enablers Anastasia Sakellariou | General Manager – Chief Transformation Officer INVESTOR DAY – JUNE 2023 Fragkiski Melissa | General Manager – Chief Human Resources Officer Michalis Tsarbopoulos | Executive General Manager – C
Slide 50: Retail: a unit serving >3.5mn customers
RETAIL Retail: a unit serving >3.5mn customers, through c.270 branches and 850 relationship managers Contribution to the Group: % Key figures 2022 c. €9bn c. €32bn c. €570mn Net Loans Deposits Core Revenues1 >20% >60% >30% Customers >3.5mn 0.2mn 0.2mn Retail Affluent Small Business Customers Custome
Slide 51: Economic recovery and growth of disposable income favor Retail Banking
RETAIL Economic recovery and growth of disposable income are already creating a favorable environment for Retail Banking Middle class1 recovery Growth in disposable income Change in Median Disposable Income per Household1 (%) Greek Gross Disposable Income (€ bn) Economic recovery leads to the re-eme
Slide 52: Further tailwinds from digitization and state stimuli
RETAIL Further tailwinds from digitization and state stimuli Digitization acceleration State stimuli Digital Economy and Society Index (Score out of 100)1 Initiatives to support economic recovery and consumer confidence Pension funds reforms that increase financial literacy of customers Recovery and
Slide 53: Positive outlook expected to result in robust Retail Banking growth
RETAIL Positive outlook expected to result in robust Retail Banking growth Retail market disbursements1 and deposits evolution (€ bn) Growing need for household +8% and Small Business lending, +40% yet disbursements1 at a fraction of pre-crisis levels +90% +40% Interest rates may moderate lending gr
Slide 54: Alpha Bank is the relationship bank of Greece
RETAIL Alpha Bank is the relationship bank of Greece Leadership in Affluent and Small Loyal clients Most highly valued relationship managers Business segments 25+ c.30% c.30% 53 41 Years Median tenure of our Affluent individuals Small Businesses NPS of the NPS of the Affluent client choose Alpha Ban
Slide 55: Strong relationships retained elevated market shares
RETAIL Strong relationships and human capital enabled us to retain elevated market shares, despite aggressive platform rationalization …and achieved the leading FTE and …while retaining disproportional We optimized our branch network… network productivity in Greece… market shares in in key products
Slide 56: Technology to enhance and complement strong client relationships
RETAIL Our strategy: Technology to enhance and complement strong client relationships Our vision Our pillars Ambition 2025 Augment human impact to Enhance Migrate Mass offering Core Revenue1 customers’ lives with digital productivity to digital channels c. €130mn Increase 2022 – 2025 Continue on the
Slide 57: Boost digital and focus on high-value segments in Retail
RETAIL Boost digital and focus on high-value segments in Retail Initiatives already underway Enhance Sharpen focus Enable higher productivity on high-value segments value creation Relationships >> Increase efficiency and Introduce wealth advisory productivityA f fVl au leunet S& mHailgl h - Offer fu
Slide 58: Our strategy will deliver growth and increased profitability
RETAIL Our strategy will deliver growth and increased profitability Core Revenues1 Deposits Disbursements Efficiency Profitability Net Interest & Commission Deposits (€ bn) Annual Loans Cost-Income Ratio (%) ROCET13 (%) Income (€ mn) Disbursements2 (€ bn) +16% CAGR c.(16p.p.) +7% CAGR +3% CAGR CAGR
Slide 59: Key Takeaways
RETAIL Key Takeaways Ambition 2025 Core Revenue1 c. €130mn Increase 2022 – 2025 Free up time for Focus human interactions human interactions on high-value segments Deposits Increase + €3.5bn 2022 – 2025 Disbursements2 c. €1.4bn in 2025 Invest in operational Increase revenue efficiency and digitizati
Slide 60: Agenda
2023 – 2025 AGENDA Vassilios Psaltis | Chief Executive Officer Strategy & Enablers Anastasia Sakellariou | General Manager – Chief Transformation Officer INVESTOR DAY – JUNE 2023 Fragkiski Melissa | General Manager – Chief Human Resources Officer Michalis Tsarbopoulos | Executive General Manager – C
Slide 61: Wealth & Treasury: a unit managing €11bn in Asset Management Balances
W E A LT H & T R E A S U R Y Wealth & Treasury: a unit managing €11bn in Asset Management Balances and €13bn in securities portfolio 2022 Contribution to recurring group profits1 c.20% Wealth Treasury Key Figures c. €11bn Asset Management Balances2 c. €13bn Securities Portfolio (FY 22) c. €86mn Fee
Slide 62: Strong growth momentum while still underpenetrated versus rest of EU
W E A LT H & T R E A S U R Y Strong growth momentum while still underpenetrated versus rest of EU Greek AuM1 Evolution European Households’ Financial Wealth Composition (€ bn) AuM vs. Household Deposits by Country (2021, %) CAGR 2019 – 2022 +10% + 2% 3 + 6.5% 1| Assets Under Management; AuM represen
Slide 63: Wealth Management growth prospects fueled by macro environment
W E A LT H & T R E A S U R Y Wealth Management growth prospects fueled by macroeconomic environment and customer behavioral tailwinds Macro Environment trends Market Evolution AuM1 and Deposit balances 3-year forecast (€ bn) Disposable Income Growing Disposable Income to underpin CAGR wealth offerin
Slide 64: Key attributes of our strong foothold in wealth management
W E A LT H & T R E A S U R Y Key attributes of our strong foothold in the wealth management business Solid investment Leading in-house product Top notch discretionary Concrete advisory model proposition based on open factory underpinned by rich management portfolio based on international architectur
Slide 65: Alpha Bank is the reference point in Greece for wealth services
W E A LT H & T R E A S U R Y Alpha Bank is the reference point in Greece for wealth services Our Customers’ Response Institutional Rankings Market Position Market Share in Mutual c.2.5x Funds in Greece (9M 2022, %) Awarded Best Private Bank in Greece for 5 consecutive years (PWM by FT)1 NPS Private
Slide 66: Wealth and asset management franchise has accelerated value creation
W E A LT H & T R E A S U R Y Our wealth and asset management franchise has accelerated its value creation on solid metrics Robust growth in the Asset Management …delivering strong revenue …at an accretive ROA3 pace Balances1 portfolio… performance… +10% CAGR +16% CAGR CAGR 10% Other Investments 9% M
Slide 67: Building on our leadership position to monetize growth prospects
W E A LT H & T R E A S U R Y Our strategy: Building on our current leadership position to monetize growth prospects Our vision Our pillars Ambition 202512025 Ambition A We lead the Greek market in Private Create, enhance and Scale up and extend Banking & Mutual Funds. Our objective is to sustain wea
Slide 68: Revamp service model to increase penetration in Wealth
W E A LT H & T R E A S U R Y Revamp service model to increase penetration in Wealth A B C Scale up and extend Tailor investment proposition to Invest in technology and wealth management ‘engine’ each segment modernize our service model Reinforce advisory services PRIVATE (e.g., portfolio constructio
Slide 69: Strategy will allow us to gain scale and reinforce leadership
W E A LT H & T R E A S U R Y Our strategy will allow us to gain scale and reinforce our leadership position in Greece amid a new wealth landscape Volumes – Wealth Total Revenues – Wealth Profitability – Wealth & Treasury Asset Management Balances1, 2 (€ bn) Non-Interest Income2 (€ mn) ROCET13 (%) +1
Slide 70: Key Takeaways
W E A LT H & T R E A S U R Y Key Takeaways 2025 c. €40mn + €4.8bn c.26% KPIs Wealth Management Total Revenue Asset Management Balances3 ROCET14 increase 2022 – 20251,2 Increase 2022 – 20251 in 2025 Create, enhance and sustain wealth to preserve well-being for all customers through 3 key pillars Scal
Slide 71: Agenda
2023 – 2025 AGENDA Vassilios Psaltis | Chief Executive Officer Strategy & Enablers Anastasia Sakellariou | General Manager – Chief Transformation Officer INVESTOR DAY – JUNE 2023 Fragkiski Melissa | General Manager – Chief Human Resources Officer Michalis Tsarbopoulos | Executive General Manager – C
Slide 72: Wholesale: A unit serving c.5k Large Corporates and SMEs
WHOLESALE Wholesale: A unit serving c.5k Large Corporates and SMEs Key Figures (FY 22)1 Contribution to Contribution to >30% Group Annual >50% recurring group Revenues profits3 1| Large Corporates: Companies with > €75mn in turnover; SMEs: Companies with > €5mn and < €75mn in turnover, or companies
Slide 73: Proven ability to lead the market, while maintaining robust profitability
WHOLESALE Proven ability to lead the market, while maintaining robust profitability Key success factors 2019 – 2022 Achievements Market leadership c. €6bn Lending Market Share (%)2 Anticipated market trends Net Credit Expansion >330bps >30% Focused on high potential sectors Average portfolio o/w fro
Slide 74: Recognized and established wholesale franchise
WHOLESALE Recognized and established wholesale franchise, offering a strong platform to capture market growth Wide market coverage Long and trusted relations Deep technical expertise We have an active funding >60% of our customers We have an active role in relationship1 with have been with us for la
Slide 75: Loan book covering all relevant industries in Greece
WHOLESALE Loan book covering all relevant industries in Greece, maintaining a balanced risk and maturity profile Diversified portfolio, leadership in Balanced risk and duration profile Long and (FY relations trusted 22) Deep technical expertise key sectors Low Exposure to Loan Stock Commercial Real
Slide 76: Favorable macro conditions and key emerging trends driving wholesale growth
WHOLESALE Favorable macro conditions and key emerging trends driving wholesale banking market growth Favorable Macro conditions… Direct Foreign Investments Flows Evolution (€ bn) Investment Gap (€ bn) +51% Investment Gap …supported by key emerging trends Decarbonization & Electrification Extroversio
Slide 77: Investments in the country continue growing
WHOLESALE Investments in the country continue growing – led by specific industries and demand drivers CAPEX Investments Growth… …driven by specific sectors Annual CAPEX Annual CAPEX CAGR Main Drivers (€ bn) 2023 – 2025 (€ bn) 2022 – 2025 Energy generation capacity modernization <5% & decarbonization
Slide 78: Large Corporates continue driving lending volumes
WHOLESALE Large Corporates continue driving lending volumes, as macro trends create the need for new products & additional balance sheet capacity Main Dynamics of Large Corporates… …point to segment needs Large corporates are the main consumer of lending volumes, Need for capacity and structuring ab
Slide 79: SMEs represent an area of profitable growth
WHOLESALE SMEs represent an area of profitable growth, as investment expansion will accelerate scaling of the segment and demand for services Main Dynamics of SMEs1…. …point to segment needs EU Greece Average 1st in Europe for substantial SME turnover Growing need for fast and simple 23% VS 9% growt
Slide 80: Empower our customers in their growth and consolidate leadership
WHOLESALE Our strategy: Empower our customers in their growth, and consolidate our leadership in the sector while maintaining profitability Our vision Our Pillars Ambition 2025 Empower our customers in Cumulative Net Credit c. €4bn Reinforce our lending market leadership their growth plans & while e
Slide 81: Consolidate leadership in Wholesale
WHOLESALE Consolidate leadership in Wholesale Reinforce lending market leadership Grow Service business Refine our operating model • Increase lending penetration in customer • Refresh portfolio segmentation and pricing • Upgrade internal tools (e.g., centralized data base through focused commercial
Slide 82: Our strategy will deliver sustainable results
WHOLESALE Our strategy will deliver sustainable results fostering our leadership position in Greece Volumes Total Revenues Profitability Net Loans (€ bn)1 Net Interest, Fee & Commission Income (€ mn) ROCET1 (%)5 +13% Maintain c. €5.0bn 1| Excluding €0.9bn intersegment loans, 2| Net Interest Income,
Slide 83: Key Takeaways
WHOLESALE Key Takeaways c. €4bn > €1bn c.25% c.18% 2025 Cumulative Net Credit Cumulative Net Credit Increase ROCET1 KPIs Expansion 2023 – 2025 Expansion 2023 – 2025 in Fee Income in 20252 Large Corporates SMEs 2022 – 20251 Consolidate leadership through three pillars Reinforce our lending market lea
Slide 84: Agenda
2023 – 2025 AGENDA Vassilios Psaltis | Chief Executive Officer Strategy & Enablers Anastasia Sakellariou | General Manager – Chief Transformation Officer INVESTOR DAY – JUNE 2023 Fragkiski Melissa | General Manager – Chief Human Resources Officer Michalis Tsarbopoulos | Executive General Manager – C
Slide 85: Snapshot of the International network
I N T E R N AT I O N A L Snapshot of the International network Contribution to the Group: % Key Balance Sheet Total Revenues2 Profitability figures1 Total Assets (€ bn)1 Risk Weighted Assets (€ bn)1 Net Interest, Fee, Commission ROCET12 and Other Income (€ bn)1 c.10% c.9% c.12% UK Cyprus Romania 1|
Slide 86: International footprint reduced to a strategic core
I N T E R N AT I O N A L International footprint reduced to a strategic core, which is already delivering targeted growth 2013 2019 2021 – 2022 Turnaround International Deleverage Group NPE deleverage A milestone year driven by regulatory measures focusing on asset quality (i.e., asset cap) clean-up
Slide 87: International network ambition and financial targets
I N T E R N AT I O N A L International network ambition and financial targets International Volumes Total Revenues Efficiency Profitability Network Ambition Romania Loan Book (€ bn) Total Revenues (€ mn) Cost-Income Ratio (%) ROCET1 (%)3 Grow top line by deepening commercial penetration in a fast-gr
Slide 88: Romania is one of the fastest growing economies in the EU
I N T E R N AT I O N A L ROMANIA - ECONOMY Romania is one of the fastest growing economies in the EU, supported by structural factors One of the fastest growing economies in EU with evidence …expected to continue growing with the support of key in wealth creation… factors Real GDP per capita (€ k) R
Slide 89: Romanian banking market generating sustained profits
I N T E R N AT I O N A L ROMANIA - BANKING Romanian banking market generating sustained profits and one of the best ROEs in Europe since 2018 Profitable Romanian banking system even throughout …with high profitability levels compared to peers periods of crisis… and Euro area Romanian banking system
Slide 90: Maturity of housing market and companies to fuel demand for banking
I N T E R N AT I O N A L ROMANIA - BANKING Maturity of housing market and of Romanian companies expected to fuel demand for banking Underpenetrated mortgage market experiencing positive …under-levered companies with opportunity growth… for convergence Housing market depth1 (2022, %) Lending penetrat
Slide 91: Recent achievements: housing disbursements and Center of Excellence
I N T E R N AT I O N A L ALPHA BANK ROMANIA Recent achievements: Progress in housing disbursements and deployment of Center of Excellence creates the premises for further sustainable growth Alpha Bank Romania Mortgages disbursements1 Annual growth of housing loans outstanding (€ mn) (%) Deleverage s
Slide 92: Recent achievements: Wholesale disbursements and POS network
I N T E R N AT I O N A L ALPHA BANK ROMANIA Recent achievements: Return to growth in Wholesale disbursements; growing market share in POS network and Payments Alpha Bank Romania Wholesale disbursements1 Alpha Bank Romania POS Network Market Share (€ mn) (%) Deleverage strategy across Group NPE the I
Slide 93: Recent achievements: stable funding for operations and growth
I N T E R N AT I O N A L ALPHA BANK ROMANIA Recent achievements: Proven ability to secure stable funding for our operations and growth Ability to raise deposits… …and diversify sources of funding ABR customer deposits (€ bn) Strategic choice to pause Deposit raising deposit gathering in line campaig
Slide 94: Our platform, capital position and access to market
I N T E R N AT I O N A L ALPHA BANK ROMANIA Our platform, capital position and access to market enable us to continue capturing market growth 01 02 03 Growth platform Capital buffer Access to market Operational platform with positive Capital buffers to cover growth Grow disbursements leveraging trac
Slide 95: Our vision is to scale our business by 2025
I N T E R N AT I O N A L ALPHA BANK ROMANIA Our vision is to scale our business by 2025, and establish robust foundation to achieve our full potential thereafter Our vision Our Pillars Ambition 2025 Scale our business by 2025, and establish robust Gain scale in Net loan book foundation to achieve fu
Slide 96: Improve return on deployed capital on International (focus Romania)
I N T E R N AT I O N A L ALPHA BANK ROMANIA Improve return on deployed capital on International (focus Romania) Reposition as partner Gain Scale in Retail Business for business investments Transform our operations Grow mortgage originations building on newly Focus on structured finance projects leve
Slide 97: Alpha Bank Romania financial targets
I N T E R N AT I O N A L ALPHA BANK ROMANIA Alpha Bank Romania financial targets Total Revenues Efficiency Profitability Total Revenues (€ mn) Cost-Income Ratio (%) ROCET1 (%)1 +14% CAGR c.(20p.p.) c.7p.p. 1| Return on FL CET1 employed capital at 13% management target 97
Slide 98: Agenda
2023 – 2025 AGENDA Vassilios Psaltis | Chief Executive Officer Strategy & Enablers Anastasia Sakellariou | General Manager – Chief Transformation Officer INVESTOR DAY – JUNE 2023 Fragkiski Melissa | General Manager – Chief Human Resources Officer Michalis Tsarbopoulos | Executive General Manager – C
Slide 99: Strong performance in recent years resulted in return to profitability
Strong performance in recent years resulted in return to profitability Balancesheet Balance sheet clean-up clean-up Capital buffer restoration Profitability improvement Profitability improvement Reducing NPEs by c. €23bn: Profits generation LOWER COST O P E R AT I O N A L S U S TA I N A B L E OF RIS
Slide 100: Our 2025 strategy is focused on accelerating shareholder value creation
Our 2025 strategy is focused on accelerating shareholder value creation Key financial targets Evolving priorities over time ROTE1 on Tangible Equity3 Return Accelerated shareholder 12 >> % 12%inin2025 2025 value creation EPS45 growth EPS growth Return to profitability & top line growth 20 >> % 20 %
Slide 101: Going forward we will focus on three priorities
Going forward we will focus on three priorities 01 02 03 Profitability uplift Balance sheet resilience Capital generation and distribution Significant business profitability Prudent lending practices, with €2.3bn regulatory capital generated improvement across Business units, diversified portfolio (
Slide 102: Earnings per share growing at a 20% CAGR
1|PROFITABILITY UPLIFT Earnings per share growing at a 20% CAGR, already evident in 2023 Regulatory capital Total Revenues Earnings per share1 (€) ROTE3 (%) generated2 (€ bn) c.5% CAGR >20% CAGR >50% CAGR 1| Based on normalized profit after deduction AT1 coupon payments, 2| Fully loaded, 3| Return o
Slide 103: Business units delivering sustainable returns on 13% CET1 target
1|PROFITABILITY UPLIFT Business units delivering sustainable returns on management target of 13% CET1 driving marginal capital allocation Wealth & Retail2 Wholesale3 International NPAs5 & Other Group ROCET11 Retail Wholesale Treasury4 International FY 22 FY 25E >6p.p. Business Unit ROCET11 % of Grou
Slide 104: Target ROCET1 translates into >12% adjusted ROTE in 2025
1|PROFITABILITY UPLIFT Target ROCET1 translates into >12% adjusted ROTE in 2025 ROCET11 at 13% to ROTE bridge (Group, 2025, %) FOCUS OF THE PRESENTATION 1 A group ROCET11 of >16% 1 translates into an adjusted ROTE2 of >12% (excluding capital above management target) in 2025 due to the DTAs allocated
Slide 105: Profitability increase driven mainly by revenue growth
1|PROFITABILITY UPLIFT Profitability increase driven mainly by revenue growth, leading to a >20% EPS CAGR ROTE1 evolution 2022 – 2025 (Group, %) EPS2 (€) 0.18 2023 2024-2025 FOCUS NEXT SLIDES >20% CAGR >0.3 1| Return on Tangible Equity; Based on normalized profit after tax over average Tangible Equi
Slide 106: Revenues expected to increase at a 5% CAGR
1|PROFITABILITY UPLIFT A|REVENUES Revenues expected to increase at a 5% CAGR mainly driven by Net Interest Income Revenues evolution 2022 – 2025 (Group, € bn) +5% CAGR FOCUS NEXT SLIDES Mainly due to 2022 one-off gains from termination of hedge accounting relationships 106
Slide 107: Net Interest Income performance driven by favorable rates
1|PROFITABILITY UPLIFT A|REVENUES Net Interest Income performance driven by favorable rates, fostered by growth in assets Net Interest Income evolution 2022-2025 Key Assumptions & Sensitivities (Group, € bn) FY 22 FY 23E FY 25E Average Euribor 3M 0.3% 3.1% 2.6% Gross PE Loans1,2 (€bn) 31.4 >33 c.39
Slide 108: Strong growth of fees in Retail & Wealth and Wholesale
1|PROFITABILITY UPLIFT A|REVENUES Strong growth of fees, focusing on high value segments in Retail & Wealth and leveraging our competitive advantages of Wholesale franchise Net Fee & Commission Income evolution 2022-2025 Key Drivers (Group, € bn) % of % of gross revenues loans A Higher credit relate
Slide 109: Revenues boost and costs reduction will improve Cost-Income Ratio
1|PROFITABILITY UPLIFT B|COSTS Revenues boost and costs reduction will improve our Cost-Income Ratio by 14.p.p, reaching c.40% in 2025 at Group level (<35% in Greece) Cost-Income evolution (Group, %) Cost evolution drivers Excludes trading income CAGR 2022 – 2025 c.(3%) Lower resolution Reduced cont
Slide 110: Going forward we will focus on three priorities
Going forward we will focus on three priorities 01 02 03 Profitability uplift Profitability uplift Balancesheet Balance sheetresilience resilience Capital generation and distribution Significant business profitability Prudent lending practices, with diversified €2.3bn regulatory capital generated im
Slide 111: Robust current position: Prudent lending practices, diversified portfolio
2|BALANCE SHEET RESILIENCE Robust current position: Prudent lending practices, with a diversified portfolio 2022 FIGURES Wholesale portfolio Exposures mostly Continuous reduction diversified across secured of NPE flows industries Wide industry coverage providing diversification against sector-specif
Slide 112: Current loan book coverage levels reflect the mix of Stage 3 loans
2|BALANCE SHEET RESILIENCE A|ASSETS Current loan book coverage levels reflect the mix of our Stage 3 loans Group Net Loans1 (€ bn) Group NPE stock (€ bn) – Focus on 2022 A significant portion of NPE <90 Days + 4% stock is forborne progressing towards CAGR 24% curings Coverage Portfolio is highly sec
Slide 113: Organic NPE reduction, lower cost of risk and higher coverage
2|BALANCE SHEET RESILIENCE A|ASSETS Organic NPE reduction, decrease of cost of risk and consequent higher coverage levels NPE Stock, cost of risk and coverage evolution (Group, € bn) Group NPE ratio1 CoR2 Coverage 44.8% 250bps 44% Structural NPE reduction and target CoR2 levels, leading coverage to
Slide 114: High levels of liquidity with a diversified, granular and sticky deposit base
2|BALANCE SHEET RESILIENCE B|FUNDING High levels of liquidity with a diversified, granular and sticky deposit base Liquidity ratios (2022) Deposits – Focus Greece (%) Deposits – Focus Greece Other characteristics (2022) Term Robust liquidity High coverage of Average ratios deposits through c. €6k ba
Slide 115: Going forward we will focus on three priorities
Going forward we will focus on three priorities 01 02 03 Profitability uplift Profitability uplift Balance sheet resilience Capital Capital generation generation and distribution distribution Significant business profitability Prudent lending practices, with diversified €2.3bn regulatory capital gen
Slide 116: We have a clear path to returns in excess of >12% by 2025
3|CAPITAL GENERATION AND DISTRIBUTION We have a clear path to returns in excess of >12% by 2025 Evolution of return on capital Comments Starting tangible equity of c. €5.8 billion, including €1.7bn of excess DTA Fast profit growth leading to reduction of overall DTA incidence, through ROTE1 conversi
Slide 117: Strong regulatory capital generation of €2.3bn
3|CAPITAL GENERATION AND DISTRIBUTION Strong regulatory capital generation of €2.3bn, creating value for shareholders > 20% EPS1 GROWTH CAGR 2022 – 2025 Capital generation sources 2023 – 2025 (cumulative) Capital usage2 2023 – 2025 (cumulative) Profit after tax creating organic capital € 1.9bn €2.3b
Slide 118: Our plan will increase regulatory capital ratios, exceeding targets
3|CAPITAL GENERATION AND DISTRIBUTION Our plan will increase regulatory capital ratios, exceeding targets FL CET1 Ratio1 (Group, %) Without dividend payout Assumed dividend payout2, 3 Sensitivity on dividends Business plan (2025) Our distributable FL CET1 Ratio reserves will increase Management sign
Slide 119: Summary of financial targets
Summary of financial targets 2022 2023 2023 2025 (Guidance (Revised)3 FY 22)2 Total Revenues (€ bn) 2.0 n.a. c.2.1 c.2.3 Cost-Income Ratio 54% <49% <47% c.40% Cost of Risk 76bps c.85bps <85bps <70bps ROTE1 7.6% >9% c.10% >12% EPS4 (€) 0.18 0.23 >0.25 >0.3 Tangible Equity (€ bn) 5.8 n.a. >6 >7 FL CET
Slide 120: Agenda
2023 – 2025 AGENDA Vassilios Psaltis | Chief Executive Officer Strategy & Enablers Anastasia Sakellariou | General Manager – Chief Transformation Officer INVESTOR DAY – JUNE 2023 Fragkiski Melissa | General Manager – Chief Human Resources Officer Michalis Tsarbopoulos | Executive General Manager – C
Slide 121: Glossary (1/4)
Glossary (1/4) Reference Terms Definitions Relevance of the metric Abbreviation number Accumulated Provisions and Sum of Provision for impairment losses for loans and advances to customers, the Provision for impairment losses for the total amount of off balance Standard banking 1 LLR FV adjustments
Slide 122: Glossary (2/4)
Glossary (2/4) Reference Terms Definitions Relevance of the metric Abbreviation number Sum of Gains less losses on derecognition of financial assets measured at amortised cost and Gains less losses on financial transactions, as "Income from financial derived from the Consolidated Income Statement of
Slide 123: Glossary (3/4)
Glossary (3/4) Reference Terms Definitions Relevance of the metric Abbreviation number Normalised profits between financial year 2022 and 2021 are not comparable due to initiation of a new normalized profits procedure effective since 1.1.2022 which does not exclude specific accounts such as the trad
Slide 124: Glossary (4/4)
Glossary (4/4) Reference Terms Definitions Relevance of the metric Abbreviation number Profit/ (Loss) after income tax from continuing operations (41) for the period, less Impact from NPA transactions (13), plus Profit/ (Loss) after Profit/ (Loss) attributable to 43 income tax from discontinued oper
Slide 125: Alpha Bank Contacts
Alpha Bank Contacts Lazaros Papagaryfallou Iason Kepaptsoglou Stella Traka Selini Milioni General Manager Manager Senior Senior Chief Financial Officer Investor Relations Division Investor Relations Officer Investor Relations Officer T +30 210 326 2261 T +30 210 326 2271 T +30 210 326 2274 T +30 210
Slide 126: Investor Day Thank You
@®)| ALPHA BANK NVESTOR DAY THANK YOU CREATING VALUE, EMPOWERING GROWTH www.alphaholdings.gr