Alior Bank Sa · GPW:ALR
Alior Bank Sa — Q1 2019 Earnings Presentation
44 slides from Alior Bank Sa's earnings presentation, May 7, 2019
Slide 1: Q1 2019 Results Presentation
Q1 2019 Results Presentation Alior Bank S.A. | May 7th, 2019
Slide 2: Agenda
Agenda 1 Key highlights 2 Financial results 3 2019 guidance 4 Appendix 2
Slide 3: Key highlights
Key highlights PLN 103 M net profit. Results strongly impacted by increase in BGF contribution to resolution fund (PLN 110 M) – increase of 191% y/y. Group net profit (excluding BGF contributions) at the level of PLN 225 M – increase by 6% y/y. Solid revenue growth: PLN 1,026 M in Q1 2019 vs. PLN 96
Slide 4: Q1 2019 financial results (PLN M)
Q1 2019 financial results (PLN M) Net result Revenues +13 225 +61 1 026 212 965 (+6%) (+6%) 52 Składki BFG 50 BGF contributions 55 170 (BRR total oraz FGD) 122 pozostałe przychody Other revenues 177 wynik NFC prowizyjny Wynik netto Net result -54 157 wynik NII odsetkowy 738 804 (-34%) 103 Q1’18 Q1’1
Slide 5: Q1 2019 key financial ratios
Q1 2019 key financial ratios NIM (QTD) C/I (QTD) 4.68% 49.93% 4.54% +0.14 pp 47.28% +2.65 pp Impact of payment of the 3.92% Impact of payment of the 10.72% BGF (BRR) contribution BGF contribution to the resolution fund 43.36% -4.1 pp 39.22% Q1’18 Q1’19 Q1’18 Q1’19 CoR ratio (QTD) ROE ratio (QTD) +0.
Slide 6: Prizes and awards
Prizes and awards Alior Bank "Institution of the Year 2018" Four statuettes and the title of "Institution of the Year 2018" in the industry ranking for the best bank in providing financing for companies, the best quality of business customer service, the best branch service quality and the best call
Slide 7: Continuous loan volume growth in strategic segments
Continuous loan volume growth in strategic segments (Based on management data) New loan sales in micro (PLN B) New leasing sales (PLN B) New cash loan sales (PLN B) High sales level despite the visible growth of Maintaining high leasing sales… ...and record CL (cash loan) sales. guarantees secured b
Slide 8: Change in the portfolio structure in line with the strategy
Change in the portfolio structure in line with the strategy Loan portfolio structure (%) 29 29 29 28 31 Cash loans Retail segment 20 20 20 20 Mortgage loans 20 6 6 5 6 Other 7 11 16 15 14 Large 15 7 7 7 Business 8 7 segment Medium 11 6 6 7 Small 13 7 10 11 10 Micro 8 7 7 8 Leasing 4 1 31.12.2016 31.
Slide 9: Retail client segment: increase in the number of clients
Retail client segment: increase in the number of clients Number of retail clients (M) New clients opening current accounts (T) +45% 127 T 32.3 4.03 26.4 29.5 4.02 22.3 21.4 3.99 3.94 Q1’18 I kw. 2018 Q2’18 II kw. 2018 Q3’18 III kw. 2018 Q4’18 IV kw. 2018 Q1’19 I kw. 2019 3.90 New clients - cash loan
Slide 10: Retail client segment: building primary relationship
Retail client segment: building primary relationship Current accounts sale (T) (Number of new current accounts for NtB* and NtP* clients) Number of new priority clients (T) 21.7 22.2 +51% 18.7 17.8 16.1 +6% 43.6 46.4 37.7 Q4’17 IV kw. 2017 Q1’18 I kw. 2018 Q2’18 II kw. 2018 Q3’18 III kw. 2018 Q4’18
Slide 11: Retail client segment: remote channels gaining ever more importance
Retail client segment: remote channels gaining ever more importance Sales of cash loans in remote channels (PLN M) +1.0 y/y 4.6 OUT OF 5 APPSTORE RATING 11 000 ratings +55% +13% 361 320 277 253 233 +1.5 y/y 4.1 OUT OF 5 GOOGLE RATING 14 000 ratings Q1’18 I kw. 2018 Q2’18 II kw. 2018 Q3’18 III kw. 20
Slide 12: Retail client segment: improvement of customer service quality
Retail client segment: on-going improvement of customer service quality NPS own branches NPS franchise branches 86% 78% 78% 78% 79% 63% 60% 59% 59% 60% Q1’18 I kw. 2018 Q2’18 II kw. 2018 Q3’18 III kw. 2018 Q4’18 IV kw. 2018 Q1’19 I kw. 2019 Q1’18 I kw. 2018 Q2’18 II kw. 2018 Q3’18 III kw. 2018 Q4’18
Slide 13: Retail client segment: development of remote channels and mobile banking
Retail client segment: development of remote channels and implementation of the latest mobile banking solutions as the direction of development in Q1 2019 Q1 2019 Biometrics - ability to authorize all transfers iKiosks in own branches - support of Digital onboarding process, education and digitaliza
Slide 14: Business client segment: increase in the number of clients
Business client segment: increase in the number of clients combined with an increase in both total transactions concluded as well as the level of primary relations with the Bank Business clients Clients with a main transactional relationship (Number of business clients in T) (Clients paying social s
Slide 15: Business client segment: diversification of revenues
Business client segment: diversification of revenues and increase in high-margin micro segment Business client segment revenue structure Product revenue structure in business segment (Based on management data) (Based on management data) 1% 1% 1% 1% 1% 12% 12% 12% 12% 10% 26% 27% 27% 27% 26% 30% 31%
Slide 16: New micro sales: recurrent sales increase with enhanced loan quality
New micro sales: recurrent sales increase combined with enhanced loan quality New micro sales (PLN B) Share of the portfolio with BGK guarantees in the micro portfolio 2 100% Pokrycie gwarancjami guarantees coverage 87% 88% 80% 75% 2 59% 60% 48% 47% 1 40% 0.75 0.74 0.68 53% 0.60 0.60 20% 1 0% - -20%
Slide 17: Business client segment: Digital Disruptor Strategy
Business client segment: Digital Disruptor Strategy effectively enhances efficiency thanks to significant increases in both online client acquisition and automated loan processes New business clients acquired on-line Automated loan processes (New accounts openings in items) (New sales limit in PLN M
Slide 18: Business client segment: new multi-currency card
Business client segment: new multi-currency card well positioned on the market allows for growing sales and number of transactions concluded Multi-currency cards issued Multi-currency card transaction (New open cards in items) (Turnover in PLN M) Share in the sale of debit cards 7% 7% +95% 4.1 +17%
Slide 19: Agenda
Agenda 1 Key highlights 2 Financial results 3 2019 guidance 4 Appendix 19
Slide 20: P&L statement - primary data
P&L statement - primary data PLN M Q1’18 Q1’19 Change y/y Change y/y (%) Revenues including: 965 1026 61 6% Net interest income 738 804 66 9% Net fee and commission income 177 170 -7 -4% Net trading income and other 50 52 2 5% General administrative expenses -456 -512 -56 12% Net impairment charges
Slide 21: Volumes
Volumes PLN M Q1’18 Q1’19 Change y/y Change y/y (%) Loans, including: 51 326 55 394 4 068 8% Retail segment 27 940 29 854 1 914 7% Business segment 23 386 25 540 2 154 9% Deposits, including: 59 075 62 327 3 252 6% Retail segment 38 205 45 125 6 920 18% Business segment 20 869 17 202 -3 668 -18% L/D
Slide 22: Net interest income (PLN M)
Net interest income (PLN M) Y/y comparison Annual perspective (quarterly) NIM* 4.54% 4.59% 4.62% 4.60% 4.68% 1 020 948 COF* 1.22% 1.22% 1.21% 1.20% 1.20% 103 105 +66 804 738 net interest income 992 996 1 020 1 020 (+9%) 948 other interest income 119 105 106 103 105 783 801 804 interest income relate
Slide 23: Net fees and commissions (PLN M)
Net fees and commissions (PLN M) Y/y comparison Annual perspective (quarterly) other fees pozostałe cost prowizyjne koszty 283 287 264 267 264 265 267 23 29 21 24 fees cost related związane to cards z kartami 21 15 9 24 koszty prowizyjne 17 20 7 20 19 7 65 66 70 57 57 62 65 -7 184 170 wynagrodzenie
Slide 24: Change in the presentation of the transaction margin on FX transactions
Change in the presentation of the transaction margin on FX transactions 2018 2018 Change before change after change Interest income 3 085 3 085 Fee and commission income 436 274 710 Result on instruments measured at fair value through 372 -274 98 P&L and result on revaluation Result on cessation of
Slide 25: Bank maintains a high level of cost effectiveness
Bank maintains a high level of cost effectiveness General and administrative expenses (PLN M) Y/y comparison General and administrative expenses on a quarterly basis C/I* 47.3% 49.9% 600 C/I* 47.3% 45.2% 44.1% 43.1% 49.9% 600 512 +56 512 koszty BGF BFG costs 500 456 (+12%) 430 411 407 122 500 456 55
Slide 26: Loan portfolio: structure and quality
Loan portfolio: structure and quality Total loan portfolio (PLN M) Retail client portfolio (PLN M) Business client portfolio (PLN M) 60 279 32 491 27 788 55 757 30 550 25 207 2 478 8% 4 588 15% 2 326 8% 2 184 9% 27 788 46% 1 061 4% 973 4% 25 207 45% 9 852 32% 10 670 33% 8 074 32% 8 033 30% 4 449 18%
Slide 27: New loan sales quality
New loan sales quality Sales volume and quality of new loan sales in the retail client segment (PLN M) 2 000 1 866 1 787 2.5% 1 748 1 743 1 700 1 747 1 800 1 643 1 623 1 600 1.91% 2.0% 1 400 1 249 1 228 1 257 1 200 1.54% 1.5% 1 000 1.31% 800 1.06% 1.06% 1.0% 600 0.73% 0.65% * • Loan quality in strat
Slide 28: Capital ratios at a safe level
Capital ratios at a safe level Own funds and capital requirements in total (PLN M) TIER 1 12.42% Own funds Capital requirements 11.29% Capital Wymogi 4 030 4 090 11.75% kapitałowe requirementsz tytułu ryzyka 52 32 for market risk 10.25% rynkowego 402 315 Capital Wymogi kapitałowe requirementsz 7 768
Slide 29: Agenda
Agenda 1 Key highlights 2 Financial results 3 2019 guidance 4 Appendix 29
Slide 30: 2019 guidance
2019 guidance Q1 2019 actual 2019 guidance 2020 strategic target NIM 4.7% 4.6% 4.5% net interest margin C/I* 49.9% 42% cost/income 39% 39.2%** (before 41%) CoR cost of risk 1.86% 1.8% 1.7% Gross loan book growth*** (12 months) PLN1.3 B PLN 5 B PLN 5 – 6 B *Cost to income ratio (C/I): counter - group
Slide 31: Agenda
Agenda 1 Key highlights 2 Financial results 3 2019 guidance 4 Appendix 31
Slide 32: Q1 2019 net profit decomposition (PLN M)
Q1 2019 net profit decomposition (PLN M) 1026 Trading result & 52 other revenues Net fees & 170 commissions 512 Net interest income 804 275 54 81 122 225 103 Przychody razem Total revenues Koszty działania General and Wynik z odpisów Podatek bankowy Podatek dochodowy Income tax Zysk Net netto profit
Slide 33: Macroeconomic outlook
Macroeconomic outlook GDP growth (% y/y) Inflation (CPI % y/y) 2.0 1.6 1.7 4.8 5.1 4.3 3.8 3.1 -0.6 -0.9 2015 2016 2017 2018P 2019P 2015 2016 2017 2018P 2019P real change year average NBP reference rate (%) Unemployment rate (%) 9.7 8.2 1.5 1.5 1.5 1.5 1.5 6.6 5.8 5.5 2015 2016 2017 2018P 2019P 2015
Slide 34: Income statement
Income statement PLN M Q1 2019 Q1 2018 (adjusted data) Interest income* 1 020 948 Interest expenses -216 -210 Net interest income 804 738 Fee and commission income 267 264 Fee and commission expenses -97 -87 Net fee and commission income 170 177 Net gain on other financial instruments measured at fa
Slide 35: Balance sheet
Balance sheet PLN M 31.03.2019 31.12.2018 Cash and balances with the Central Bank 1 337 1 639 Amounts due to banks 508 612 Financial assets 14 031 13 728 Measured at fair value through total income 7 728 7 280 Measured at fair value through P&L 615 515 Measured at amortized cost 5 689 5 932 Derivati
Slide 36: New loans sales (PLN M)
New loans sales (PLN M) Retail loans (new quarterly sales) 2 928 3 313 2 832 2 878 2 997 35 39 49 63 36 Other 391 351 363 348 367 Mortgage loans 2 441 2 466 2 517 2 887 2 595 Consumer loans 03.2018 06.2018 09.2018 12.2018 03.2019 Business loans (new quarterly sales) 4 327 3 901 3 166 3 271 Other 1 3
Slide 37: Alior Bank – shareholding
Alior Bank – shareholding The largest free float among Polish financial institutions PZU SA PZU SFIO UNIVERSUM 31.91% Other Shareholders 49.36% 7.25% AVIVA OFE 5.82% AVIVA SANTANDER 5.66% Nationale-Nederlanden OFE BlackRock Inc 37 *Based on the number of shares registered at the EGM convened for Nov
Slide 38: Consistent increase in the number of clients (T)
Consistent increase in the number of clients (T) +153 (+3.7%) 4 178 4 227 4 224 4 071 4 125 1kw.'18 Q1’18 2kw.'18 Q2’18 3kw.'18 Q3’18 4kw.'18 Q4’18 1kw.'19 Q1’19 38
Slide 39: Alior Bank Group – FTE evolution (T)
Alior Bank Group – FTE evolution (T) -0.9% 8 345 8 401 8 248 8 228 8 269 341 374 442 501 509 8 004 8 027 7 807 7 727 7 760 Q1’18 1kw.'18 Q2’18 2kw.'18 Q3’18 3kw.'18 Q4’18 4kw.'18 Q1’19 1kw.'19 Alior Bank Subordinated entities 39
Slide 40: Alior Bank – number of branches
Alior Bank – number of branches 883 874 864 861 855 253 244 221 218 215 630 630 643 643 640 Q1’18 1kw.'18 Q2’18 2kw.'18 Q3’18 3kw.'18 Q4’18 4kw.'18 Q1’19 1kw.'19 Franchise branches Own branches 40
Slide 41: Quality of the OZE portfolio (wind farms) and the industry prediction
Quality of the OZE portfolio (wind farms) and the industry prediction On-balance exposure Predicted vs. real black energy prices and Green Certificates Coverage ratio (%) 194.3 (PLN M) 181.6 184.3 170.1 169.7 163.8 2018 Q1’19 2018 Q1’19 175.6 168.4 152.2 152.2 150.8 151.0 155.0 141.2 138.7 123.5 130
Slide 42: 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 Bank contained in this Presentation are based on the Financial Report of the Alior Bank Group for
Slide 43: Contact
Contact Please direct all inquiries to: relacje.inwestorskie@alior.pl +48 734 412 408 IR department head: Piotr Bystrzanowski piotr.bystrzanowski@alior.pl 43
Slide 44: Thank you for attention
Thank you for attention Q1 2019 Results Presentation Alior Bank S.A. | 07/05/2019