Alior Bank Sa · GPW:ALR
Alior Bank Sa — Q1 2017 Earnings Presentation
28 slides from Alior Bank Sa's earnings presentation, May 9, 2017
Slide 1: Alior Bank S.A. Q1'17 results presentation
ALIOR BANK S.A. Q1’17 results presentation May 9, 2017 1
Slide 2: Agenda
AGENDA 1 Highlights 2 Operational Performance 3 Outlook 4 Appendix 2
Slide 3: Highlights
HIGHLIGHTS Strong underlying business performance. Revenues up by 50% (yoy). Strong loan growth (2 b PLN net in Q1’17), Considerable fee result improvement (up 50% vs. Q4’16), Bottom line growth excl. synergies and integration cost up by 26% yoy (101 m in Q1’17 vs. 80 m in Q1’16) Profitabili
Slide 4: Q1'17 Synergies and Integration Cost Impact
Q1’17 SYNERGIES AND INTEGRATION COST IMPACT Net impact of synergies and integration cost of 27 m (19 m after tax) Alior Q1’17 net profit excl. synergies and integration cost of 101 m vs 80 m in Q1’16 2017 plan m PLN Q1’17 actual Q2’17 plan Q3’17 plan Q4’17 plan total Synergies 11 38 54 64 167 In
Slide 5: Key Financials
KEY FINANCIALS M PLN Q1’16 Q4’16 Q1’17 ch. yoy (%) ch. yoy (PLN m) Total revenues 579 1 358 868 50 289 General administrative expenses -277 -706 -489 77 -213 Net impairment -176 -252 -212 20 -36 Banking tax -21 -43 -50 140 -29 Gross profit 106 357 118 11 11 Income tax -26 13 -35 34 -9 Net profit 80
Slide 6: Agenda
AGENDA 1 Highlights 2 Operational Performance 3 Outlook 4 Appendix 6
Slide 7: Strong loan book growth across all segments
STRONG LOAN BOOK GROWTH ACROSS ALL SEGMENTS Loan book split in PLN bn +48% ; +15,7 +5% ; +2,1 48,4 46,3 1,7 Other business 1,3 0,8 Factoring 0,8 Investment 8,2 loans 7,5 32,7 45% 44% 0,3 Working 0,4 11,3 Capital 10,7 5,7 43% 1,1 0,8 Other retail Business 0,8 Mortgage other 0,8 7,7 Mortgage 0,4 8,4 8
Slide 8: Comfortable level of deposits reaches desired mix of current and term accounts
COMFORTABLE LEVEL OF DEPOSITS REACHES DESIRED MIX OF CURRENT AND TERM ACCOUNTS L/D = 96% L/D=82% in PLN bn Retail +38% ; +8,9 +1% ; -0,2 32,0 32,2 23,3 14,8 14,0 14,3 17,3 18,2 Term, own 9,0 banking sec., other Q1'16 Q4'16 Q1'17 Current Corporate L/D=120% +46% ; +5,8 -5% ; -1 19,3 18,3 12,5 10,8 10,
Slide 9: Key credit risk ratios
KEY CREDIT RISK RATIOS NPL total (%) Market avg.* +0,9 pp -0,3 pp 12,4 11,8 12,1 10,8 10,9 10,0 -0,1 pp 8,7 11,0 2,9 2,6 2,5 2,5 Q1'16 Q4'16 Q1'17 Q1'16 Q4'16 Q1'17 Q1'16 Q4'16 Q1'17 Corporate Retail Mortgage Coverage ratio (%) +2 pp -9 pp 65 67 67 -1 pp 57 49 48 49 63 48 34 35 33 Q1'16 Q4'16 Q1'17
Slide 10: Good profitability maintained. Q1'17 NIM reaches 4,5%
GOOD PROFITABILITY MAINTAINED. Q1’17 NIM REACHES 4,5%. Alior NIM development (%) +0,2 pp NIM 4,3 4,5 4,1 Q1'16 2016 Q1'17 CoR -2,1 -1,9 -1,6 -0,5 pp +0,6 pp NIM - CoR 2,8 2,2 2,2 Q1’16 2016 Q1’17 NII for Q1’16 annualized, divided by average of IEA from 2015 and Q1’16; NIM formula for 2016: NII for 2
Slide 11: Fees and commissions rebound up 50% yoy
FEES AND COMMISSIONS REBOUND UP 50% YOY in PLN m +57% ; +50 137 Net F&C 87 91 +56% ; +77 F&C income 215 180 fees related to C/A, loans, transfers 138 113 99 bancassurance 75 18 payment and credit 12 cards servicing 21 42 55 24 brokerage fees 17 28 31 Q1'16 Q4'16 Q1'17 -51 F&C expenses -89 -78 +54% ;
Slide 12: Capital position supports future loan origination objectives
CAPITAL POSITION SUPPORTS FUTURE LOAN ORIGINATION OBJECTIVES +0,9 pp 13,6% 14,4% 13,5% 12,2% 11,3% 10,6% Q1'16 Q4'16 Q1'17 TCR Tier-1 12
Slide 13: Extensive footprint provides high potential for non-HR synergies
EXTENSIVE FOOTPRINT PROVIDES HIGH POTENTIAL FOR NON-HR SYNERGIES 3rd largest distribution network among Polish banks 2 075 1 079 1 010 928 620 483 464 447 384 368 Bank 1 Bank 2 Alior Bank Bank 3 Bank 4 Bank 5 Bank 6 Bank 7 Bank 8 Bank 9 Data for Banks as at the end of Q4’16, Alior Q1’17. Source: Prn
Slide 14: Agenda
AGENDA 1 Highlights 2 Operational Performance 3 Outlook 4 Appendix 14
Slide 15: 2017 Outlook maintained
2017 OUTLOOK MAINTAINED 2017 Outlook 2017 consensus of PLN ~360 m NIM ~4,5% C/I ~45% ALR standalone C/I ~60% total CoR ~1,9% Loan growth 2017 PLN 6,5 billion net 15
Slide 16: Agenda
AGENDA 1 Highlights 3 Operational Performance 4 Outlook 5 Appendix 16
Slide 17: Polish macro outlook
POLISH MACRO OUTLOOK GDP growth (% yoy) Inflation (CPI % yoy) Unemployment rate (%) 3,7 3,90 13,4 13,4 3,60 3,30 2,80 11,4 1,4 0,9 9,7 1,60 1,40 0,0 8,3 8,0 -0,6 -0,9 2012 2013 2014 2015 2016 2017F 2012 2013 2014 2015 2016 2017F 2012 2013 2014 2015 2016 2017F End of period End of period FX rate (EUR
Slide 18: Polish banking sector – growth of the main balance sheet figures
POLISH BANKING SECTOR – GROWTH OF THE MAIN BALANCE SHEET FIGURES Assets Loans +6,3% +3,9% +6,3% +2,2% 1 711 1 733 1 631 1 663 1 670 1 577 1 609 1 600 1 136 1 142 1 163 1 167 1 569 1 074 1 090 1 108 1 105 1 097 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Feb'17 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16
Slide 19: Alior Bank continues its market share expansion
ALIOR BANK CONTINUES ITS MARKET SHARE EXPANSION Deposits MARKET SHARE Loans 5,1% 5,1% 4,9% 5,1% 3,9% 3,6% Q1'16 Q4'16 Q1'17 Q1'16 Q4'16 Q1'17 Alior’s deposits as well as gross loans according to published financial statements. Non financial loans for sector loans data. Sector loans for Q1’17 as of t
Slide 20: Alior Bank income statement snapshot
ALIOR BANK INCOME STATEMENT SNAPSHOT in PLN m Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Interest income 663 694 724 858 893 Interest expense -251 -250 -233 -259 -253 Net interest income 412 444 491 599 640 Dividend 0 0 0 0 0 Fee and commission income 138 137 135 180 215 Fee and commission expense -51 -61 -59 -8
Slide 21: Alior Bank balance sheet snapshot
ALIOR BANK BALANCE SHEET SNAPSHOT 31 Mar’16 30 Jun’16 30 Sep’16 31 Dec’16 31 Mar’17 Cash and balances with Central Bank 666 726 1 285 1 083 1 781 Financial assets held for trading 360 402 310 420 387 Financial assets available for sale 6 008 8 505 5 394 9 358 6 517 Investment securities held to matu
Slide 22: Alior Bank shareholding
ALIOR BANK SHAREHOLDING Largest free float among Polish financials institutions 25,19% PZU SA 61,74% 4,13% Free float PZU Życie SA & TFI PZU SA* 8,94% Aviva OFE Aviva BZWBK* * on the basis of number of shares registered on Extraordinary GSM which took place on April 21, 2017. 22
Slide 23: Alior Bank new loans sales in Retail & SME
ALIOR BANK NEW LOANS SALES IN RETAIL & SME Retail loans (new production per quarter) 2 850 2 705 79 2 270 2 273 2 253 2 415 78 Other retail 2 010 44 49 55 70 550 591 Mortgages for 1 641 46 1 530 529 459 456 481 real estate 90 55 556 562 526 1 865 2 077 2 179 Cash loans 1 697 1 765 1 742 1 407 990 94
Slide 24: Alior Bank customer base
ALIOR BANK CUSTOMER BASE in ths. 4 115 4 110 188 188 Corporate clients 3 084 132 3 927 3 922 Retail clients 2 952 Q1’16 Q4’16 Q1'17 24
Slide 25: Alior Bank & T-Mobile partnership in Poland
ALIOR BANK & T-MOBILE PARTNERSHIP IN POLAND Revenue growth PLN m +40% 12,8 9,2 Q1’16 Q1’17 Credit portfolio PLN m Continuous innovation +58% Next enhanced functionalities of Mobile application launched in Q1 2017. 586 New Internet Banking platform: • Omnichannel and user centered design 370 approach
Slide 26: Alior Bank headcount
ALIOR BANK HEADCOUNT FTEs evolution -2,2% ; -226 10 245 10 019 4 417 3 792 Outlets 5 828 6 227 Headquaters 2016 1Q'17 26
Slide 27: 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 27
Slide 28: 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 Q1 2017. B