Alpha Bank S.a. · ATHEX:ALPHA
Alpha Bank — Q4 2024 Earnings Presentation
116 slides from Alpha Bank's earnings presentation, Feb 28, 2025
Slide 1: Alpha Bank Q4 2024 Results
Alpha Bank Q4 2024 Results Investor presentation 28th February 2025
Slide 2: Disclaimer
Disclaimer 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 b
Slide 3: Pages
Pages • Business Update 3 • Financial Performance 12 Alpha Bank • • Business Plan update Appendix 21 ▪ Macroeconomic Update 41 ▪ ESG 43 ▪ Digital 52 ▪ Segmental Information 68 ▪ P&L 74 ▪ Balance Sheet 87 ▪ Asset Quality 100 ▪ Capital 106 3
Slide 4: 2024 well ahead of Business Plan targets
2024 well ahead of Business Plan targets FY 2024 Group Results Return on Tangible Equity1 Reported Profit After Tax €654mn +6% y/y 14.0% or 9.7% reported Set strong profitability foundation Normalised Profit After Tax €861mn +9% y/y Net Interest Income €1,647mn (1%) y/y Earnings Per Share2 Resilient
Slide 5: We continue to deliver on our Strategic Priorities
We continue to deliver on our Strategic Priorities Strategic priorities for 2024-2025 (“Accelerated shareholder value creation”) announced in June 2023 Investor Day Strategic priority Commentary Structurally higher profitability across business ROTE doubled from 7% to 14% units Significant improveme
Slide 6: Improved financial performance accelerates shareholder value creation
Improved financial performance accelerates shareholder value creation Performing loans EPS1 Capital generation RoTE Greece, €bn € €mn % +16% +106% +124% +7p.p. 31.8 0.35 897 14.0% 853 13.1% 0.32 28.4 27.3 0.17 7.0% 381 FY 22 FY 23 FY 24 FY 22 FY 23 FY 24 FY 22 FY 23 FY 24 FY 22 FY 23 FY 24 Dividend
Slide 7: Beating 2024 guidance
Beating 2024 guidance March August November guidance guidance guidance FY 23 FY 24 2024 2024 2024 Total Revenues (€ bn) 2.1 c. 2.1 >2.1 c. 2.2 2.2 Cost-Income Ratio 39% c. 40% <40% <39% 38.6% Cost of Risk 83bps c. 75bps <70bps c. 65bps 63bps ROTE1 13.1% c. 13% >13.5% >14.0% 14.0% Normalised EPS2 (€)
Slide 8: Delivery across business segments, with improved capital allocation
Delivery across business segments, with improved capital allocation Corporate Retail Wealth Wholesale Int’l NPA Centre Boost digital and Revamp service Consolidate Improve return on Maintain the Maintain the focus on high- model to increase leadership deployed capital resilience of our resilience of
Slide 9: Operation improvement spanning our six strategic pillars
Operation improvement spanning our six strategic pillars Retail Boost digital and focus on high-value segments ▪ Digital sales at 30%; 40% increase in unit sales per branch FTE Wealth Revamp service model to increase penetration ▪ 83% of Investor Day 3 year target for AuM net flows achieved in 2 yea
Slide 10: Unicredit partnership reinforces franchise positioning
Unicredit partnership reinforces franchise positioning COMMERCIAL PARTNERSHIP BANCASSURANCE WEALTH & ASSET MANAGEMENT WHOLESALE • JV is being launched in the fast- • onemarkets Funds launched in Q3 2024 – “One-stop shop” investment • Providing Alpha Bank’s clients with access to UniCredit’s pan-Euro
Slide 11: Capital generation underpinning growth and distributions
Capital generation underpinning growth and distributions Target announced at 2023 Investor Day Achieved in 2023-2024 EPS growth CAGR 2022-2025 >20% 39% EPS growth CAGR achieved in 2022-2024 Capital generation sources 2023–2025 (cumulative) 100% of target delivered Total regulatory capital generated
Slide 12: Pages
Pages • Business Update 3 • Financial Performance 12 Alpha Bank • • Business Plan update Appendix 21 ▪ Macroeconomic Update 41 ▪ ESG 43 ▪ Digital 52 ▪ Segmental Information 68 ▪ P&L 74 ▪ Balance Sheet 87 ▪ Asset Quality 100 ▪ Capital 106 12
Slide 13: Group Profit & Loss Summary
Group Profit & Loss Summary Profit & Loss (€ mn) FY 2023 FY 2024 Δ% Q3 2024 Q4 2024 Δ% Net Interest Income 1,659 1,647 (1%) 408 406 (1%) Net fee and commission Income 374 420 12% 109 114 5% Trading & Other Income 82 152 86% 27 57 … Operating Income 2,115 2,219 5% 544 578 6% Total Operating Expenses
Slide 14: Q4 24 Group Profit and Loss
Q4 24 Group Profit and Loss +6% Group, € mn 570 578 555 542 544 FY y/y Operating income: ▪ Net interest income reaching a plateau Operating Income +5% ▪ Growth in fees continues 13% Operating expenses: 6% ▪ Legacy IT items and investment impacting depreciation Operating Expenses (188) (204) (213) (2
Slide 15: Q4 24 Group Balance Sheet
Q4 24 Group Balance Sheet +8% Group, € bn 33.3 30.9 FY y/y Performing loans: 29.7 29.9 29.8 ▪ Growth fueled by corporates with record disbursements Performing loans1 +12% ▪ Small business lending turning a corner +2% 69.5 Customer funds: 67.9 64.2 64.5 65.8 ▪ Deposit inflows both from corporates and
Slide 16: Net interest income and Fees
Net interest income and Fees Interest Income / Interest Expense breakdown Fees Group, € mn Group, € mn +12% 1,659 1,647 420 374 440 422 411 408 406 436 114 109 398 101 100 100 97 385 91 29 38 82 32 24 35 30 30 473 475 472 466 463 26 22 457 22 25 16 419 14 16 19 5 Loans PE 374 14 5 5 4 4 4 6 5 38 40
Slide 17: Costs
Costs € mn 38.6% 38.6% Cost-income ratio flat versus last year Cost-Income ratio 42% 40% 38% 34% 36% 39% 39% 41% Staff costs: 816 857 ▪ Quarter impacted by overlapping of replacement hires with staff exits following voluntary separation scheme 234 205 211 206 193 211 211 ▪ Annual growth reflecting d
Slide 18: Performing loans and Customer Funds
Performing loans and Customer Funds Performing loan book expansion Customer Funds evolution Group, € bn Group, € bn YoY +8% +2% +12% +8% 69.5 67.9 0.1 0.1 1.3 +4% 33.3 64.2 +1% 0% 24% 30.9 1.6 18.5 29.7 29.9 29.8 18.2 1.5 AuMs 15.7 1.3 1.3 1.3 7.5 (1.2)% 7.6 7.6 7.7 7.7 24.2 +17% 21.9 Deposits 48.4
Slide 19: Asset quality
Asset quality NPE ratio Group % NPEs <4% on solid 6.0% 6.0% organic trends and inorganic actions 4.7% 4.6% 3.8% 99 Cost of Risk 14 75 67 13 13 57 58 Cost of Risk at 63bp Group, bps 14 13 14 12 Servicing fees 12 Securitization expenses 72 49 13 12 43 for the year reflecting 31 32 Underlying benign en
Slide 20: Year on year evolution in Capital
Year on year evolution in Capital CET1 % 0.8% 1.6% 2.8% (0.5%) (1.4%) (0.2%) (0.2%) 1.5% Organic Capital Generation 17.3% 16.8% 16.3% 14.3% 1 Dec-23 organic P&L DTA DTC RWAs AT1 coupon other capital Transactions Dec-24 Dec-24 post Dec-24 elements & RWA dividend pro forma optimisation accrual RWAs €b
Slide 21: Pages
Pages • Business Update 3 • Financial Performance 12 Alpha Bank • • Business Plan update Appendix 21 ▪ Macroeconomic Update 41 ▪ ESG 43 ▪ Digital 52 ▪ Segmental Information 68 ▪ P&L 74 ▪ Balance Sheet 87 ▪ Asset Quality 100 ▪ Capital 106 21
Slide 22: Top line on upward trajectory despite falling rates
BUSINESS PLAN NET INTEREST INCOME Top line on upward trajectory despite falling rates Net Interest Income evolution 2024-2027 Key Assumptions & Sensitivities (Group, € bn) FY 24 FY 25E FY 26E FY 27E Average Euribor 3M 3.6% 2.3% 2.0% 2.0% FY 24 1.65 Sensitivity (25bp) c. €15mn Group Performing Loans
Slide 23: Loan growth underpins top line expansion
BUSINESS PLAN NET INTEREST INCOME Loan growth underpins top line expansion Drivers of Net Interest Income evolution (illustrative) Key driver: - Loans repricing lower + Loan growth offsetting repricing + Loan volumes Other: + Higher loan balances + Deposits re-pricing lower + Reinvestment of securit
Slide 24: Continuous improvement in fee income with upsized ambition
BUSINESS PLAN FEES Continuous improvement in fee income with upsized ambition Net fee and commission income 2025 Guidance €mn 2024 Actual 420 2024 post Government initiatives 400 c€20m headwind from government initiatives impacting mainly fees on fund transfers Lending and Transaction Banking Growth
Slide 25: Franchise strength and revenue diversification goes beyond fees
BUSINESS PLAN OTHER REVENUES Franchise strength and revenue diversification goes beyond fees Income from financial operations 2025 Guidance: €mn 106 ▪ Lower starting base on account of c€30m not recurring gains in 2024 c.80 >80 ▪ Growth in client volumes and private banking 2027 Outlook: ▪ Further p
Slide 26: Positive jaws across the period
BUSINESS PLAN COSTS Positive jaws across the period Recurring Operating Expenses 2025 Guidance €mn 2024 Actual 857 Staff costs Hirings and wage inflation partially offset by VSS benefits Inflationary pressure on costs and investment in c3.5% General Administrative Expenses +1% revenue generating opp
Slide 27: Benign asset quality environment expected to persist
BUSINESS PLAN ASSET QUALITY Benign asset quality environment expected to persist NPE ratio Cost of Risk % bps 3.8% 63 c.3.5% c. 50bp c. 50bp <3% 2024 Actual 2025 Guidance 2027 Outlook 2024 Actual 2025 Guidance 2027 Outlook 27
Slide 28: Capital ratios rising on strong organic capital generation
BUSINESS PLAN CAPITAL Capital ratios rising on strong organic capital generation CET1 2.2% % (0.4%) >17.0% 16.3% >16.3% (1.8%) 2024 Organic capital Basel III Distributions1 2025 Guidance 2027 Outlook Total Capital >21% generation DTC/CET1 49% c40% c23% MREL > 28% c.37 RWAs €bn 0.8 >32 1.4 30.3 2024
Slide 29: Summary financials
Summary financials 2025 2027 Key financial targets FY 24 Guidance Outlook Reported ROTE Total Revenues (€ bn) 2.2 >2.2 >2.5 c12% in 2027 Cost-Income Ratio 38.6% c. 39% c. 37% Reported EPS Cost of Risk (bps) 63 c. 50 c. 50 >0.42 in 2027 Reported ROTE 9.7% c. 11% c. 12% Normalised ROTE excluding exces
Slide 30: Summary financials
Summary financials 2025 2027 FY 24 Guidance Outlook Net Interest Income (€ bn) 1.65 >1.65 >1.8 Net fee & commission income (€ mn) 420 c. 450 >535 Income from financial operations (€ mn) 106 c. 80 >80 Other Income (€ mn) 46 c. 65 >80 Total Revenues (€ bn) 2.2 >2.2 >2.5 Recurring expenses (€ mn) 857 c
Slide 31: Structural advantages leading to earnings growth
Structural advantages leading to earnings growth Alpha Bank’s structural advantages Considerations for 2025 Guidance Positioned to absorb rate • Conservative balance sheet positioning alongside loan growth cuts and grow NII… • Dynamic management of interest rate sensitivity …strong loan growth in •
Slide 32: That will accelerate in the following years
That will accelerate in the following years Alpha Bank’s structural advantages Outlook for 2027 Positioned to absorb rate • Significant potential from structural growth dynamics cuts and grow NII… • Further upside from balance sheet and franchise positioning …strong loan growth in • Pace of growth r
Slide 33: EPS expansion to continue across 2025-2027
EPS expansion to continue across 2025-2027 0.553 +16%2 On track to sustain EPS trajectory1 EPS CAGR in 2024-2027 positive EPS trajectory: including buyback effect • +2% EPS growth in 2025 • +8% EPS CAGR in 0.42 +6% 2026-2027 Guided EPS CAGR 0.372 in 2024-2027 excluding buyback effect Lower gearing t
Slide 34: c. €1bn deployed to the expansion of performing assets
c. €1bn deployed to the expansion of performing assets 1 • Organic RWA expansion in wholesale and retail segments in Greece and Cyprus Organic growth Performing loans 2 €bn Ordinary payout >41 Capital allocation in +23% >35 2025-2027 33 3 30 Excess capital 2023 2024 2025 guidance 2027 outlook 34
Slide 35: Strong capital generation leads to step-up in ordinary distributions
Strong capital generation leads to step-up in ordinary distributions 1 Organic RWA expansion in wholesale and retail segments in Greece and Cyprus Organic growth 2 • 2024: €281m accrued i.e. 43% of reported profit. 75% in buyback • Increasing ordinary payout over 2025-2027 Ordinary payout • Future s
Slide 36: Excess capital creates further strategic optionality
Excess capital creates further strategic optionality 1 Organic RWA expansion in wholesale and retail segments in Greece and Cyprus Organic growth 2 Increasing ordinary payout over 2025-2027 Ordinary payout Capital allocation in A Share buybacks & extraordinary dividends 2025-2027 3 B Bolt-on acquisi
Slide 37: Flexfin expands factoring platform enhancing solutions for SMEs
Flexfin expands factoring platform enhancing solutions for SMEs Innovative factoring platform, primarily serving Greek and Cypriot M&A criteria small and medium enterprises. fully met Focus on an underpenetrated market segment with significant growth potential and strong risk-adjusted returns 100% c
Slide 38: AstroBank acquisition consolidates third largest bank position in Cyprus
AstroBank acquisition consolidates third largest bank position in Cyprus 100% cash acquisition of the banking operations of AstroBank Key financials2 Fast growing Eurozone economy with real GDP growth of 4th 2.5% over 2025-2026, outpacing broader Euro area (1.6%)1 Largest bank in Cyprus by net loans
Slide 39: Significant EPS & RoTE accretion with limited impact on capital
Significant EPS & RoTE accretion with limited impact on capital M&A criteria Impact of transaction on Alpha Bank: fully met Combined entity in Cyprus will contribute c. €100mn of net c. 5% income to Alpha Bank Group post cost synergies EPS accretion from year 2 >40% Exposure in Cyprus will increase
Slide 40: Significant potential to create and return value to shareholders
Significant potential to create and return value to shareholders 1 Organic RWA expansion in wholesale and retail segments in Greece and Cyprus Organic growth 2 Increasing ordinary payout over 2025-2027 Ordinary payout 4.4 Capital allocation in A Share buybacks & extraordinary dividends 2025-2027 c.
Slide 41: Pages
Pages • Business Update 3 • Financial Performance 12 • Alpha Bank • Business Plan update Appendix 21 ▪ Macroeconomic Update 41 ▪ ESG 43 ▪ Digital 52 ▪ Segmental Information 68 ▪ P&L 74 ▪ Balance Sheet 87 ▪ Asset Quality 100 ▪ Capital 106 41
Slide 42: Solid Growth Momentum and Sources of Uncertainty
Solid Growth Momentum and Sources of Uncertainty Real GDP growth and Economic Sentiment Indicator: Short and medium term Greek Economic Outlook Greece vs. Euro area 9 115 Sources of 8 Baseline Narrative Opportunities 110 Uncertainty 7 105 • Ongoing recovery in • Escalation of • Benefits from 6 euro
Slide 43: Pages
Pages • Business Update 3 • Financial Performance 12 Alpha Bank • • Business Plan update Appendix 21 ▪ Macroeconomic Update 41 ▪ ESG 43 ▪ Digital 52 ▪ Segmental Information 68 ▪ P&L 74 ▪ Balance Sheet 87 ▪ Asset Quality 100 ▪ Capital 106 43
Slide 44: Accelerating our journey to Net Zero
Accelerating our journey to Net Zero 2019 - 2022 2023 2024 2025- Scale up Set the foundations Fully embed Set sustainable finance for our sustainability sustainability into science-based to achieve full Strategy our Business Plan net-zero targets potential 2019 UNEP FI signatory and adoption 2023 Fi
Slide 45: Our strategy for a resilient, net-zero economy by 2050
Our strategy for a resilient, net-zero economy by 2050 Setting Science-Based Targets for selected material-impact sectors, including Transition Pathways to support corporate clients to meet the Bank’s climate targets Sustainable Finance Framework lays the groundwork for sustainability strategy, incl
Slide 46: Financed emissions targets set on 4 sectors in Nov 2024 (1/2)
Financed emissions targets set on 4 sectors in Nov 2024 (1/2) Alpha Bank commitment 2030 targets Impact Next Steps Alpha Bank has set out an The Bank has set 2030 The targets for these The Bank will publish a transition plan ambition to support the transition financed emissions targets sectors decar
Slide 47: Financed emissions targets set on 4 sectors in Nov 2024 (2/2)
Financed emissions targets set on 4 sectors in Nov 2024 (2/2) Sector 2030 target xx% Percent reduction from 2022 to 2030 IEA NZE1 186 Power scope 1, kgCO2e / MWh 223 -41% 132 IEA NZE1 77 Oil & Gas scope 1+2, indexed to 2022 = 100 -26% 100 74 IEA NZE1 Cement 465 scope 1+2, kgCO2e / t Cement -15% 687
Slide 48: Our Sustainable Finance Framework as an enabler in our Sustainability Strategy
Our Sustainable Finance Framework as an enabler in our Sustainability Strategy Resource efficiency Energy Efficiency Green Buildings Renewable Energy Sustainable Transport and pollution control Green Loan • Transmission and Distribution • Construction/ Purchase of new • Generation of electricity fro
Slide 49: Best-practice Climate & Environmental Risk Management embedded in credit decisions and loan pricing
Best-practice Climate & Environmental Risk Management embedded in credit decisions and loan pricing ESG Assessment of all Clients Transaction Assessment • Assessment via interbank ESG questionnaire since 2023 • Assesses Environmental and Social impact of specific • Sector-based questionnaires, inclu
Slide 50: 2024 Sustainability highlights: Delivering tangible results
2024 Sustainability highlights: Delivering tangible results Support an Foster healthy Ensure robust environmentally economies & transparent sustainable Economy & Societal progress Governance € 1.8 billion 86% 33% Women for Sustainable Disbursements of the Group’s branches are accessible at Board of
Slide 51: Recognition of our commitment to Sustainability
Recognition of our commitment to Sustainability Rating Performance Decile Rank 52.05 3 Memberships C Trend Transparency Prime Status Very High Prime NEGL LOW HIGH MED SEVERE 0-10 10-20 20-30 30-40 40+ 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 JUNE JUNE A A E: 2 E: 1 C C S: 3 S: 2 G
Slide 52: Pages
Pages • Business Update 3 • Financial Performance 12 Alpha Bank • • Business Plan update Appendix 21 ▪ Macroeconomic Update 41 ▪ ESG 43 ▪ Digital 52 ▪ Segmental Information 68 ▪ P&L 74 ▪ Balance Sheet 87 ▪ Asset Quality 100 ▪ Capital 106 52
Slide 53: Our 5 strategic priorities in the Digital and Innovation space
Our 5 strategic priorities in the Digital and Innovation space Complete the digitization of our core Partnership and ecosystems as enablers for growth Elevate the CX across our channels Leverage Innovation as a lever for growth and diversification Transform our subsidiaries to a platform for growth
Slide 54: Well on track vs our 2023 promise
Complete the digitization of our core Well on track vs our 2023 promise 2024 Target 2024 Actual 2025 Ambition Additional Key Achievements: +35% Increase in Mobile Digitization of daily banking 90% 90%+ 100% Monetary Transactions YoY +41% Digital Sales Items YoY (27% of total sales) 29% Market Share
Slide 55: Market leading digital offering coverage and sales on Daily Banking & Lending
Complete the digitization of our core Market leading digital offering coverage and sales on Daily Banking & Lending with further room to grow in Investments & Bancassurance 2024 Target 2025 Individuals Digital Product Digital Sales Digital Product Digital Sales Product families Coverage Coverage Dep
Slide 56: Our remote servicing platform has been a major enabler of the service model transformation
Complete the digitization of our core Our remote servicing platform has been a major enabler of the service model transformation 470K+ appointments booked digitally +34% YoY Appointment Document Remote booking exchange Sales 350K+ customers serviced through the platform +30% YoY pages exchanged 25K+
Slide 57: The digitization effort goes beyond what our customers see and includes the back office
Complete the digitization of our core The digitization effort goes beyond what our customers see and includes the back office infrastructure… 5 examples of revamping back office systems with a substantial impact to our clients Why it matters ▪ Improved Customer Experience & Internal Efficiencies, by
Slide 58: …as well as the technical infrastructure that underpins the IT systems stack of the bank
Complete the digitization of our core …as well as the technical infrastructure that underpins the IT systems stack of the bank 5 examples of systems modernization with a substantial impact to our clients Why it matters ▪ Resilience & Scalability, though cloud-first approach Cloud Enabled Re-engineer
Slide 59: A number of strategic partnerships are supporting our Digital Factory
Partnership and ecosystems as enablers for growth A number of strategic partnerships are supporting our Digital Factory Digital Factory – Key Facts 300+ people Scale 20+ specializations Flexibility in our Digital Factory productivity +20% increase in 2024 Advanced know-how Using Agile & DevOps Metho
Slide 60: Ecosystems as enablers for Growth: 3 embedded finance examples
Partnership and ecosystems as enablers for growth Ecosystems as enablers for Growth: 3 embedded finance examples where we partnered with the market leaders In-store consumer loans with #1 Retailer in Greece Consumer loans through #1 E-commerce Marketplace in Greece Consumer loans through #1 Vehicle
Slide 61: Customer Experience in the center of our strategy
Elevate the CX across our channels Customer Experience in the center of our strategy ▪ >100k customer comments per year analyzed using AI (NLP1) ▪ Voice of the Customer (VoC) launch for all customer segments ▪ Redesigning 25+ critical Customer Journeys Bank wide CX program ▪ Redesigning all digital
Slide 62: Individuals
Elevate the CX across our channels Delivering a new suite of digital channels across segments over the next 12 months… From To H2 2025 From To H2 2025 Individuals H2 2025 H1 2025 Business 62
Slide 63: … equipped with a unique set of differentiators!
Elevate the CX across our channels … equipped with a unique set of differentiators! 150+ apps reviewed to meet global design standards Improved UX 600 customers feedback sessions 50 customer usability tests ▪ Latest web client-side frameworks Cutting-edge ▪ Latest native mobile technologies Technolo
Slide 64: Leader in AI adoption
Leverage Innovation as a lever for growth and diversification Leader in AI adoption AI1 Use Case Technology leveraged Business Value Empowering Our Workforce ▪ #1 Greek bank with GenAI3 Chatbot ▪ NLP2 ▪ >6.000 chats per week in alpha.gr Customer Chat bot ▪ GenAI3 ▪ In collaboration with startup Move
Slide 65: x3.5 Conversion rate by leveraging 50+ different machine learning models, NLP and GenAI
Leverage Innovation as a lever for growth and diversification Example: Full campaign automation based on AI Achieved x3.5 Conversion rate by leveraging 50+ different machine learning models, NLP and GenAI What was the challenge? What we did Based on Only 1 in 10 RMs1 follow-up 1. Customer expresses
Slide 66: Exploring and testing innovative ideas through a structured process with selected fintechs
Leverage Innovation as a lever for growth and diversification Exploring and testing innovative ideas through a structured process in collaboration with carefully selected fintechs 5 Retail Innovation 3 Wholesale & Credit Council 80+ 15 2 Wealth 2 People & ESG 3 Lifestyle & Wellbeing Ideas pushed thr
Slide 67: Deploying a multi-entity infrastructure offering speed to market, cost efficiency and world class UX
Transform our subsidiaries to platform for growth through Digitization Deploying a multi-entity infrastructure offering speed to market, cost efficiency and world class UX across our subsidiaries Smart IT architecture across subsidiaries Building a digital bank serving the Greek and Cypriot communit
Slide 68: Pages
Pages • Business Update 3 • Financial Performance 12 Alpha Bank • • Business Plan update Appendix 21 ▪ Macroeconomic Update 41 ▪ ESG 43 ▪ Digital 52 ▪ Segmental Information 68 ▪ P&L 74 ▪ Balance Sheet 87 ▪ Asset Quality 100 ▪ Capital 106 68
Slide 69: Retail
Retail Key figures REVENUES / VOLUMES PROFITABILITY (in €mm) FY 24 FY 23 ∆difference, % +2mn €0.8bn Net loans 9,136 9,145 (0%) Revenues y/y Deposits y/y Deposits 34,553 33,723 2% +14mn +0.5mn (€9mn) Total revenues 788 785 0% Profits3 y/y Net Loans y/y Recurring Operating (407) (396) 3% expenses Norm
Slide 70: Wholesale
Wholesale Key figures REVENUES / VOLUMES PROFITABILITY (in €mm) FY 24 FY 23 ∆difference, % +29mn €1.3bn Net loans 27,505 24,397 13% Revenues y/y Deposits y/y Deposits 10,661 9,334 14% €3mn €3.1bn Total revenues 909 880 3% Profits3 y/y Net Loans y/y Recurring Operating (180) (162) 11% expenses Normal
Slide 71: Wealth
Wealth Key figures REVENUES / VOLUMES PROFITABILITY (in €mm) FY 24 FY 23 ∆difference, % +30mn €2bn Assets under 18,455 15,749 17% Revenues y/y Mutual Funds y/y Management Total revenues 136 106 28% +16mn €0.7bn Recurring Operating (57) (47) 21% Profits3 y/y Other AUMs y/y expenses Normalised Profit
Slide 72: International
International Key figures REVENUES / VOLUMES PROFITABILITY (in €mm) FY 24 FY 23 ∆difference, % (4mn) €0.5bn Net loans 1,520 1,265 20% Revenues y/y Deposits y/y Deposits 3,611 3,089 17% (38mn) €0.3bn Total revenues 155 159 (2%) Profits y/y Net Loans y/y Recurring Operating (79) (67) 18% expenses Norm
Slide 73: NPAs and Corporate Center
NPAs and Corporate Center Non Performing Assets (NPAs) Corporate Center (in €mm) FY 24 FY 23 ∆difference, % (in €mm) FY 24 FY 23 ∆difference, % Net loans 1,087 1,593 (32%) Assets 19,693 17,789 11% Assets 2,700 3,602 (25%) TBV 1,649 1,603 3% Total revenues 44 90 (51%) Total revenues 186 95 97% Recurr
Slide 74: Pages
Pages • Business Update 3 • Financial Performance 12 Alpha Bank • • Business Plan update Appendix 21 ▪ Macroeconomic Update 41 ▪ ESG 43 ▪ Digital 52 ▪ Segmental Information 68 ▪ P&L 74 ▪ Balance Sheet 87 ▪ Asset Quality 100 ▪ Capital 106 74
Slide 75: Milestones reinforcing our franchise strength
Milestones reinforcing our franchise strength Dec 2024 Dec 2024 Appointment of new Chair of the Board Named “Bank of the Year 2024 of Directors Greece” for the 4rth time in its history Dec 2024 Jun 2024 Jun 2024 Sep 2024 Sep 2024 by the prestigious publication “The Feb 2024 Banker magazine” Issuance
Slide 76: Group Profit & Loss Summary
Group Profit & Loss Summary Profit & Loss FY FY yoy % Q4 Q3 qoq % Reported Profit After Tax (€ mn) 2024 2023 change 2024 2024 change +37% (1%) Net Interest Income 1,647 1,659 (1%) 406 408 (1%) €212mn €167mn €165mn Net fee and commission Income 420 374 12% 114 109 5% Trading & Other Income 152 82 86%
Slide 77: Profit & Loss - Detailed
Profit & Loss - Detailed qoq% yoy% (€ mn) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 change change Net Interest Income 440.1 421.6 411.1 408.2 405.7 (0.6%) (7.8%) Net fee and commission income 99.7 96.8 100.1 108.8 114.4 5.2% 14.7% Income from financial operations 20.1 31.2 13.3 17.6 43.5 … … Other inc
Slide 78: Main P&L items
Main P&L items Net Interest Income Net fee and commission income Group, € mn Group, € mn 440 114 109 422 411 408 100 100 406 97 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Recurring operating expenses Cost of Risk1 Group, € mn €mn & bps over net loans 99bps 234 211 211 75bp
Slide 79: Net Interest Income driver headlines
Net Interest Income driver headlines Performing loan spreads3 Deposit costs Individuals Greece, % Deposit beta1 Greece, % Business 22% 18% 17% 17% 15% 3.18% 3.13% 3.11% 3.07% 3.04% Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 2.94% Term Deposit pass-through2 EUR, % 2.88% 60% 60 56% 52% 53% 2.83% 49% 50 40 2.73% 30
Slide 80: Loan and deposit spreads
Loan and deposit spreads Net loan balances & spreads Deposit mix & cost evolution € bn bps, € bn 285 276 274 274 221 298 293 287 300 % Total 278 273 48.4 47.3 48.2 49.7 51.0 13.0 13.1 13.1 13.9 14.9 29% 39.0 250 End of 36.9 35.5 34.2 35.0 35.9 36.1 71% 36.2 36.3 35.8 quarter balances Q4 23 Q1 24 Q2
Slide 81: Sensitivity to interest rates
Sensitivity to interest rates Balance Sheet structure Balance Sheet structure Sep-24, Group, € bn Dec-24, Group, € bn 36.2 37.9 31.5 32.0 Securities 17% Securities 16% Due from banks 5% Due from banks 5% 44% Time Deposits 47% Time Deposits Loans 69% 24% Hedging Loans 74% 23% Hedging 11% Debt issued
Slide 82: Fees
Fees € mn € mn Group Segments +12% 420 374 114 114 109 109 101 100 100 101 100 100 97 97 91 29 38 91 35 82 32 24 82 44 35 30 38 35 32 40 30 33 26 22 28 22 25 16 41 14 16 19 5 14 5 5 4 33 29 4 4 6 35 37 29 26 30 5 38 40 34 31 37 34 28 31 32 20 26 28 29 20 21 22 8 11 11 11 10 12 13 14 5 5 5 5 5 5 2 5
Slide 83: Costs
Costs € mn € mn Group Segments Cost-Income 42% 40% 38% 34% 36% 39% 39% 41% ratio 234 816 857 205 211 206 211 211 200 193 234 211 193 211 107 205 206 211 10 200 101 102 100 18 13 98 102 97 97 95 84 93 92 81 85 87 83 49 43 38 44 45 42 39 41 86 73 92 81 68 72 78 12 16 68 11 16 13 13 14 11 12 21 16 18 1
Slide 84: Operating Expenses
Operating Expenses Group, € mn Q4 24 Q4 23 yoy % Q4 24 Q3 24 qoq % Recurring Operating Expenses evolution €mn Staff costs (97.3) (83.7) 16.2% (97.3) (92.2) 5.5% 234 General Administrative 211 211 (91.9) (67.7) 35.6% (91.9) (73.3) 25.2% 200 expenses 193 97 Staff costs Depreciation and 93 92 (45.0) (4
Slide 85: Reported to Normalised
Reported to Normalised Profit & Loss (€ mn) Bridge between reported and normalised profit Q4 2024 Published Delta Normalised Net Interest Income 406 (1) 404 Net fee and commission Income 114 0 114 Trading income 44 1 45 Other income 14 0 14 Operating Income 578 578 Staff costs (97) 0 (97) General Ad
Slide 86: Reported to Normalised
Reported to Normalised Bridge between Reported and Normalised Profit - Quarterly (€ mn) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Reported Profit/ (Loss) after income tax 123 115 70 59 111 191 195 121 212 110 167 165 Net Interest Income 0 0 0 0 0
Slide 87: Pages
Pages • Business Update 3 • Financial Performance 12 Alpha Bank • • Business Plan update Appendix 21 ▪ Macroeconomic Update 41 ▪ ESG 43 ▪ Digital 52 ▪ Segmental Information 68 ▪ P&L 74 ▪ Balance Sheet 87 ▪ Asset Quality 100 ▪ Capital 106 87
Slide 88: Q4 2024 Group Balance Sheet Summary
Q4 2024 Group Balance Sheet Summary Balance Sheet Tangible Book Value Dec 2024 Sep 2024 Dec 2023 q/q (€ bn) Group, € bn +9% +3% Total Assets 72.1 74.6 72.4 (2.6) 7.0 Securities 17.7 17.4 16.1 0.3 6.8 6.7 6.6 Cash & Cash Balances 3.0 4.1 4.2 (1.1) 6.4 Net Loans 39.0 36.9 36.2 2.2 Q4 23 Q1 24 Q2 24 Q3
Slide 89: Balance sheet composition
Balance sheet composition Asset split Liabilities and Equity split € bn € bn 74.6 74.6 72.1 72.1 Cash 4.1 2.5 ECB Cash 3.0 2.6 ECB Due from Banks 2.1 4.0 Due to Banks Due from Banks 2.3 3.9 Due to Banks 13.9 Time Deposits Securities 17.4 Securities 17.7 14.9 Time Deposits 49.7 51.0 35.9 Core Deposit
Slide 90: Business Volumes
Business Volumes (€ mn) Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 % YoY Group Gross Loans 37,072 37,243 36,541 37,638 39,703 7.1% Mortgages 7,335 7,299 7,083 7,065 6,888 (6.1%) Consumer Loans 1,253 1,281 1,253 1,255 1,212 (3.3%) Credit Cards 959 1,023 1,003 976 994 3.6% Small Business Loans 2,149
Slide 91: Disbursements
Net Credit Expansion trends +31% 11.1 Net credit expansion Individuals Businesses Greece, € bn 8.4 2.0 0.2 Disbursements 1.2 1.1 0.1 0.2 0.1 0.0 0.1 0.0 3.9 0.1 0.2 0.1 0.1 0.2 2.9 2.7 1.6 1.9 1.7 1.7 1.9 Repayments (1.7) (1.6) (1.6) (1.7) (1.7) (1.9) (1.9) (1.9) (0.2) (0.2) (0.2) (0.2) (0.2) (0.2)
Slide 92: Net credit expansion breakdown
Net credit expansion breakdown Performing loans New disbursements – per category Greece, € bn Greece, € mn Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Beginning of 27.3 26.9 27.3 27.5 28.4 28.6 28.5 29.5 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 period Disbursements 1.7 2.0 1.9 2.8 1.9 2.1
Slide 93: Loan portfolio breakdown
Loan portfolio breakdown Total Group loans – per segment Group Loans portfolio structure1 Information € bn € bn and Consumer loans Households communication Credit Cards 3% 23% 1% 3% Small Business Loans Administrative Other 5% 19% and Mortgages support 17% service activities Transportation €39.6bn 1
Slide 94: Securities portfolio breakdown
Securities portfolio breakdown Securities portfolio breakdown Group, Book value, Sep-24, € bn ▪ The “Other/ECB eligible” bonds of €8.7bn is broken down to the following T-bills Mutual Funds & Equities categories: 0.6 0.2 o/w 14.8bn • €4.5bn other sovereign bonds HQLAs • €0.9bn bonds issued by supran
Slide 95: Securities portfolio evolution
Securities portfolio evolution Portfolios evolution Q4 2024 New investments Group, Book value € bn Group % of total 12% 10% 11% 14% 14% 14% 17% 22% 22% 23% 23% 24% assets €17.0bn €17.1bn €17.4bn Other €15.9bn €16.1bn Mod. Duration 17% c.2.3Y GGBs/T-Bills €13.1bn 39% HQLAs €10.4bn €9.9bn €8.7bn 92% 9
Slide 96: Customer Funds trends
Customer Funds trends Customer Funds evolution Deposit Mix Group, € bn Greece, € bn +8% +2% 47.4 45.4 46.2 69.5 44.0 44.8 1% 67.9 0.1 State 1% 1% 1.3 0.1 1% 64.2 1% 25% 26% 18.5 Time 25% 25% 18.2 25% AUMS 15.7 51.0 Core 74% 74% 75% 74% 73% Deposits 48.4 49.7 Dec 2023 Sep 2024 Deposits Net Sales Valu
Slide 97: Deposits flow per quarter
Deposits flow per quarter Alpha Bank deposits evolution in Greece Deposits breakdown – December 2024 Greece, € bn Q1: Q2: Q3: Q4: (€1.3bn) €0.8bn €1.4bn €1.2bn Time 0.6 46.2 0.2 1.0 47.4 45.4 0.9 44.8 0.8 27% 44.0 (1.1) (0.2) (0.1) Δ Core Δ Time 73% Core Dec-23 Core Time Mar-24 Core Time Jun-24 Core
Slide 98: ECB Balances and Liquidity metrics
ECB Balances and Liquidity metrics ECB balances Group LCR & LDR Group, € bn % % over 17% 17% 12% 7% 7% 5% 5% 3% 4% 200% 193% 192% 190% Total 184% Assets 13.0 ECB Collateral pledged ▪ Credit claims LCR ▪ GGBs & T-bills LDR ▪ Other bonds 9.0 75% 77% 74% 74% 76% 12.9 5.0 5.0 5.0 12.3 12.4 12.0 4.0 4.0
Slide 99: Wealth management
Wealth management Asset Management balances Private Banking Group, € bn Group, € bn 8.7 18.2 18.5 8.5 17.6 8.3 17.2 7.3 8.1 0.3 Money Market 7.6 15.7 1.8 2.0 2.1 1.8 3rd-party 1.9 6.8 7.3 6.0 6.5 1.9 Alpha Asset 5.3 4.9 Management 2.2 2.3 2.1 2.1 1.9 3.0 3.2 3.4 3.2 2.8 1% Mkt 10% MM Share 18% Other
Slide 100: Pages
Pages • Business Update 3 • Financial Performance 12 Alpha Bank • • Business Plan update Appendix 21 ▪ Macroeconomic Update 41 ▪ ESG 43 ▪ Digital 52 ▪ Segmental Information 68 ▪ P&L 74 ▪ Balance Sheet 87 ▪ Asset Quality 100 ▪ Capital 106 100
Slide 101: NPE flows and Cost of Risk trends
NPE flows and Cost of Risk trends NPE (0.1) (0.0) (0.1) 0.0 (0.0) Cost of Risk formation bps (over net loans) Greece, € bn State 99 guaranteed 0.11 loans 14 13 75 0.23 0.19 Inflows 13 67 0.17 0.18 0.14 57 58 12 14 13 14 12 (0.12) 13 12 Cures & 72 (0.16) (0.18) repayments (0.25) (0.02) 49 (0.28) 43 3
Slide 102: Gross organic NPE formation in Greece per segment
Gross organic NPE formation in Greece per segment Gross formation (Organic) - Wholesale Gross formation (Organic) - Retail Greece, € mn Greece, € mn 170 334 80 56 70 32 4 18 8 (4) (29) (28) (50) (186) (147) (155) (284) (353) (192) (254) (461) (994) 2018 2019 2020 2021 2022 2023 Q4 Q1 Q2 Q3 Q4 2018 2
Slide 103: Auctions and repossession activity evolution
Auctions and repossession activity evolution Auctioned properties (Conducted) per quarter ▪ The Auction process remains ongoing, and in 2024, a rise in the number of conducted auctions was recorded. A substantial number of auctions were 1.729 unsuccessful, primarily due to the lack of bidders. 1.344
Slide 104: Detailed overview of asset quality by portfolio - Greece
Detailed overview of asset quality by portfolio - Greece (€ bn) Wholesale SBL Mortgages Consumer Total Gross loans 27.8 1.8 6.3 2.1 38.1 (-) Accumulated Provisions (0.2) (0.2) (0.2) (0.2) (0.8) Net loans 27.6 1.7 6.1 2.0 37.3 NPLs 0.1 0.2 0.4 0.2 0.9 NPL ratio 0.5% 11.1% 6.4% 7.0% 2.4% NPEs 0.3 0.3
Slide 105: Detailed overview of asset quality by portfolio - Group
Detailed overview of asset quality by portfolio - Group (€ bn) Wholesale SBL Mortgages Consumer Total Gross loans 28.7 1.9 6.9 2.2 39.7 (-) Accumulated Provisions (0.2) (0.2) (0.2) (0.2) (0.8) Net loans 28.5 1.7 6.7 2.0 38.9 NPLs 0.1 0.2 0.4 0.2 0.9 NPL ratio 0.5% 11.0% 6.2% 6.9% 2.4% NPEs 0.3 0.3 0
Slide 106: Pages
Pages • Business Update 3 • Financial Performance 12 Alpha Bank • • Business Plan update Appendix 21 ▪ Macroeconomic Update 41 ▪ ESG 43 ▪ Digital 52 ▪ Segmental Information 68 ▪ P&L 74 ▪ Balance Sheet 87 ▪ Asset Quality 100 ▪ Capital 106 106
Slide 107: Quarterly evolution in Capital
Quarterly evolution in Capital CET1 q/q 1.1% % 0.2% 0.6% (0.1%) 16.8% (0.5%) 16.5% 15.5% (0.2%) 16.3% 0.1% Organic Capital Generation Sep-24 Q4 24 DTA DTC RWAs other capital Transactions Dec-24 Dec-24 post Dec-24 1 organic P&L elements & RWA dividend accrual pro forma optimisation RWAs q/q % (€0.97b
Slide 108: Actuals and regulatory requirements
Actuals and regulatory requirements 30.5% 27.3% 22.6% 19.2% 16.8% 14.7% 30.5% 0.8% 27.3% 11.9% 2.0% CCyB 9.9% 0.6% 22.6% 1.5% 0.2% 19.2% P2R 1.7% 16.8% 1.0% O-S II 2.5% CCB Pillar 1 4.5% 1 1 1 1 2024 CET1 Q4 2024 CET1 2024 T1 Required Q4 2024 T1 2024 OCR Q4 2024 CAD 30.06.2025 MREL Q4 2024 MREL Requ
Slide 109: Regulatory Capital composition
Regulatory Capital composition Equity to regulatory capital bridge € mn 10.2% Tangible book value / Tangible Assets 7,473 7,036 (438) 1,011 6,632 700 5,621 (1,703) 4,921 (411) Ordinary Equity Intangibles Tangible DTA deduction Other CET1 AT1 & Hybrids Tier 1 Lower Tier II Total CAD Book Value 109
Slide 110: Group RWAs and Regulatory Capital
Group RWAs and Regulatory Capital Group Risk Weighted Assets evolution Credit Risk Weights per portfolio € bn % (€0.97bn) 31.2 (0.1) 30.3 100% 0.4 3.3 (1.2) 0.3 0.4 3.6 42% 44% 27.5 26.3 Performing Net NPE Total Loan Portfolio Sep 2024 Credit Market Operational Dec 2024 RWA Density Credit Market Ope
Slide 111: Further progress towards meeting MREL Requirements
Further progress towards meeting MREL Requirements ▪ No subordinated MREL requirement ▪ Expect Alpha Bank to continue to be a regular issuer in the debt capital markets 30.52% 0.60% 6.86% ▪ MREL ratio as of 31.12.2024 stands at 29.04%, well above both the interim non- 27.26% binding targets of 01.01
Slide 112: 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 113: Glossary (2/4)
Glossary (2/4) Reference Terms Definitions Relevance of the metric Abbreviation number Sum of Impairment losses of fixed assets and equity investments ,Gains/(Losses) on disposal of fixed assets and equity investments and Impairments & Gains/(Losses) on Impairment losses, provisions to cover credit
Slide 114: Glossary (3/4)
Glossary (3/4) Reference Terms Definitions Relevance of the metric Abbreviation number 34 Non Performing Loans Non Performing Loans (34) are Gross loans (12) that are more than 90 days past-due. Asset quality metric NPLs Main Income and expense items that are excluded for purposes of the normalized
Slide 115: Glossary (4/4)
Glossary (4/4) Reference Terms Definitions Relevance of the metric Abbreviation number Profit/ (Loss) after income tax 43 Profit/ (Loss) before income tax (42) for the period less Income tax (20) for the period Profitability metric from continuing operations The figure equals Net profit/(loss) for t
Slide 116: Alpha Bank Contacts
Alpha Bank Contacts Lazaros Papagaryfallou Vasileios Kosmas Deputy CEO CFO +30 210 326 2261 +30 210 326 2291 deputy.ceo@alpha.gr vgk-cfo-office@alpha.gr Iason Kepaptsoglou Stella Traka Selini Milioni Director Manager Senior Specialist Investor Relations Division Investor Relations Division Investor