Alior Bank Sa · GPW:ALR
Alior Bank Sa — Q3 2024 Earnings Presentation
47 slides from Alior Bank Sa's earnings presentation, Oct 29, 2024
Slide 1: Presentation of results for 3Q'24
Presentation of results for 3Q’24 Warsaw, October 24, 2024
Slide 2: Agenda
Agenda 1. Operating activities 2. Credit risk 3. Financial results 4. Other issues 2
Slide 3: Operating activities
3 Operating activities
Slide 4: In 3Q'24 Alior Bank achieved record financial results
In 3Q’24 Alior Bank achieved record financial results The number of mobile app users was 1.24 mn Net profit in 3Q’24 amounted to PLN mn 666 (19% more than at the end of September 2023) (16% more than in 3Q’23) The number of customers with regular inflows Net profit in 1-3Q’24 amounted to PLN mn 1 83
Slide 5: Dynamic revenues growth and net profit growth in 3Q'24
Dynamic revenues growth (+12% y/y) and net profit (+16% y/y) in 3Q’24 In 1-3Q’24 revenues amounted to PLN bn 4.52 Total revenue (PLN mn) • net interest income PLN bn 3.87 (+11% y/y) • net commission income PLN mn 629 (+5% y/y) +415 (+10%) +163 (+12%) In 3Q’24, revenues amounted to PLN bn 1.58 • net
Slide 6: Macroeconomic environment conducive to stable development; key ratios
The current macroeconomic environment is conducive to the Bank's stable development Assets (PLN bn) Gross Loans (PLN bn) Gross Performing Loans* (PLN bn) +6% +3% +5% 91,2 66,3 61,5 64,4 86,3 58,3 3Q'23 3Q'24 3Q'23 3Q'24 3Q'23 3Q'24 C/I 3Q’24 NIM III 3Q’24 ROE III 3Q’24 COR 3Q’24 TCR 3Q’24 30.0% 6.32
Slide 7: Alior Bank supports people affected by flooding
Alior Bank supports people affected by flooding Support for the activities of WOŚP External initiatives Alior Bank joined the initiative of the WOŚP Alior Bank has joined the sector's activities and Foundation and financially supported the fight provided customers with the opportunity to against the
Slide 8: Summary of activities in the Retail Customer segment
RETAIL Summary of activities in the Retail Customer segment in the third quarter CUSTOMERS We have refreshed the mobile app, which is already in use by over 1.2 mn users. We continue to build a base of relational customers utilizing the consistently developing digital platform. After taking advantag
Slide 9: Establishing lasting relationships with customers
RETAIL Effectively establishing lasting relationships with customers: 7% increase in customers with CUSTOMERS regular inflows (+71 k y/y) with an increase in the number of flagship accounts by 150 k y/y Number of retail clients (mn) Number of accounts “Konto Jakże Osobiste” (k) +3% +20% 843 882 4,41
Slide 10: Consistent updates of Alior Mobile
RETAIL Consistent updates of Alior Mobile in 3Q’24. We have a well-defined roadmap for further CUSTOMERS development of the app My things „Orders and documents": access to after- sales options "Questions and Suggestions" – submitting questions or making suggestions New transaction history look Payme
Slide 11: Number of mobile app users increased by 19% y/y
RETAIL The number of mobile app users increased by 19% y/y. The potential for cross-selling and CUSTOMERS developing relationships with the growing base of tech-savvy customers is growing Users of Alior Bank mobile app (k) Number of wire transfers initiated in the Alior Mobile app (mn) +19% +21% 1 4
Slide 12: Mortgage loan portfolio exceeded PLN bn 20
RETAIL The conservatively built mortgage loan portfolio* exceeded PLN bn 20 CUSTOMERS Sale of mortgage loans (PLN bn) Number of Customers with a mortgage loan (k) -39% +9% 2,50 -11% 2,07 80,8 83,1 83,5 83,5 2,00 76,5 1,64 1,50 0,99 1,00 0,68 0,61 0,50 0,00 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 3Q'23 4Q'23 1
Slide 13: Development of key products – cash loans
RETAIL Development of the Bank's key products – cash loans* CUSTOMERS Sales of loans (PLN bn) Number of Customers with a loan (k) +10% -4% -3% 1,57 1,68 1,63 1,49 1,38 391 385 384 382 375 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 Gross consumer loan portfolio (PLN bn) 55% Share of
Slide 14: Installment loan portfolio increased by 7% y/y
RETAIL In the third quarter, the installment loan portfolio increased by 7% y/y. We maintain our CUSTOMERS position as a market leader in a competitive market thanks to advanced technology Sales of CF loans (PLN bn) Number of CF Customers (k) 3.67 +6% +10% 1 537 1 569 1 531 3.32 1600 1 372 1 459 1,9
Slide 15: Business: market share in loan sales maintained
BUSINESS In a weaker market, we maintain a market share in loan sales (4.5%) and a high share in CUSTOMERS the self-employed segment (9%) REVENUES Y/Y REVENUE AFTER COST OF NPL Y/Y RISK Y/Y +2.9% +12.6% -2.99 pp. PLN mn 1 257 IN 2024 Total committed loan limit (PLN bn) * +10% • Market share in sales
Slide 16: Slight decline in performing portfolio, rapid decline in non-performing loans
BUSINESS A slight decline in the performing portfolio (-3%), accompanied by a rapid decline in CUSTOMERS non-performing loans (-25%) Balance of assets Business Customers* (PLN bn) Balance of assets in regular servicing Business Customers* (PLN bn) -7% -3% 18,7 18,0 18,0 17,5 17,4 15,2 15,1 14,7 14,7
Slide 17: Acquired 5 thousand micro entrepreneurs with growing digital acquisition
BUSINESS We have acquired 5 thousand micro entrepreneurs with a growing share of digital CUSTOMERS acquisition processes Sale of accounts in Micro segment (thousnad) % of online accounts sale in Micro segment +99% +34% +23 pp. 4,8 5,1 69% 4,6 4,2 3,8 61% 56% 52% 46% III3Q’23 kw.23 IV4Q’23 kw.23 I1Q’
Slide 18: External stakeholders appreciate Alior Bank
External stakeholders appreciate Alior Bank As a result of the quarterly revision, Alior Alior Bank took second place in the Bank joined the prestigious MSCI Poland Institution of the Year ranking, organized Global Standard index. This distinction by „Moje Bankowanie”, in the category confirms Alior
Slide 19: An offer appealing to our customers
An offer appealing to our customers READ WITH ALIOR PAY INVESTMAX GUARANTEE Alior Bank has signed an agreement Users who launched Alior Pay in with BGK, under which micro, small July will receive access to and medium-sized enterprises will be selected ebooks and able to secure financing with the syn
Slide 20: Credit risk
20 Credit risk
Slide 21: Stable and safe position: capital and liquidity above regulatory minimums
Stable and safe position of the Bank: capital and liquidity surplus well above regulatory minimums Regulatory ratios of Alior Bank Group Liquidity ratios: LCR, NSFR 21,44% 21,08% 20,51% 20,23% 188% 191% 187% 18,45% 181% 179% 177% 17,83% 17,46% 17,31% 17,53% 168% 166% 17,11% 162% 16,76% 16,68% 15,41%
Slide 22: Alior Bank consistently decreases its cost of risk
Alior Bank consistently decreases its cost of risk Alior Bank Group – cost of risk (CoR%) Alior Bank Group – NPL ratio 0 2,80% 14,48% 0 2,39% 13,16% 11,77% 0 1,60% 1,51% 0 9,80% 0 0,98% 8,58% 0,62% 0 7,10% 0 2019 2020 2021 2022 2023 1-3Q'2024 2019 2020 2021 2022 2023 3Q'2024 The Bank successfully co
Slide 23: Cost of risk influenced by additional provisions for floods
Cost of risk in 3Q’24 influenced by additional provisions for potential effects of floods in Poland Impaired loans (PLN bn) NPL reserve coverage ratio* Cost of Risk – CoR%** 0,00% 7 0,92% 9,39% 0,96% 9,00% 8,58% 6 0,68% *** 7,65% 6 0,77% 8,00% 7,10% 6,78% 5 7,00% 5 54,1% 54,0% 0,47% 5,75 51,2% 51,1%
Slide 24: Financial results
24 Financial results
Slide 25: Income statement
Income statement PLN mn 3Q 23 2Q 24 3Q 24 % y/y y/y 1-3Q 2023 1-3Q 2024 % y/y y/y Total Income 1 413,4 1 440,0 1 576,7 12% 163,3 4 099,6 4 515,1 10% 415,5 Net interest income 1 219,2 1 244,3 1 358,1 11% 138,8 3 483,2 3 871,7 11% 388,6 Net fee and commission income 172,3 211,2 206,9 20% 34,6 597,0 62
Slide 26: Decrease in financing and hedging cost improves interest margin
Decrease in the cost of financing and hedging cost allows for an improved interest margin Interest income and expenses (PLN mn) Interest margin and financing cost* -2% -2% CoF NIM NIM adj. *** NIM - CoR +6% 6,22% 6,32% 0,0 5 532 5 426 6,16% 5,96% 6,22% 1 887 1 864 1 824 1 857 0,0 1 231 1 282 1 745 5
Slide 27: Stable level of net fee and commission income
In every quarter of 2024, Alior Bank achieves a stable level of net fee and commission income Net Fees and Commissions Income (PLN mn) +5% +20% 241 -2% 629 597 Bank accounts, transfers, cash operations (net) 44 211 211 207 132 +2% y/y 125 Bancassurance (net) 172 19 43 44 44 59 68 -15% y/y 43 20 20 6
Slide 28: Maintaining operational efficiency despite inflationary pressure on costs
The Bank is maintaining operational efficiency, despite growing inflationary pressure on costs Operating costs (PLN mn) C/I ratio** +6% +8% -8% 562 545 1 532 65 41 514 C/I normalized*** C/I reported 1 416 41 61 473 - % y/y Employee 448 64 59 189 64 37,9% expenses 62 194 185 +4% y/y 129 137 36,4% 391
Slide 29: Main financial targets of the 2023-2024 strategy
The main financial targets of the strategy „Your Bank of everyday life, your Bank for the future” 2023-2024 Profitability 1-3Q’24 2024 ROE 24.4% >13% C/I 33.9% <45% Equity Tier 1 16.78% >13.5% TCR 17.11% >15% Credit risk CoR 0.62% <1.6% NPL 7.1% <10% 29
Slide 30: Why Alior Bank?
Why Alior Bank? ▪ Safe and stable capital position ▪ High NIM ▪ Innovation, digitization, high quality of services for Customers ▪ High performance due to an increase in revenue and cost optimalization ▪ Improvement in the loan portfolio quality ▪ Consumer Finance market leader ▪ Growing share of ho
Slide 31: Other issues
31 Other issues
Slide 32: The economy is gradually accelerating
The economy is gradually accelerating Consumption continues to support recovery Inflation outside the NBP target GDP growth (real, %, y/y) and its structure (pp), Poland CPI (%, y/y) and NBP base rate (%), Poland 15 20 10 18 16 5 14 12 0 10 8 -5 6 4 -10 2 2Q20 4Q20 2Q21 4Q21 2Q22 4Q22 2Q23 4Q23 2Q24
Slide 33: Economic environment is a challenge for the Polish economy
The economic environment is a challenge for the Polish economy The Polish economy stands out in Europe Lower inflation readings in most European countries Poland Hungary Czechia Eurozone PMI – Manufacturing, Poland PMI – Manufacturing, Germany Rates are already falling in the region • Economic activ
Slide 34: Interest rate cuts will strengthen recovery from 2025
Interest rate cuts will strengthen the economic recovery from 2025 onwards. Investments will accelerate in the next year The consumer will remain strong, although wage growth will slow down Rates will be reduced, but slowly and only in 2025 • After a weak previous year, we expect the economy to rebo
Slide 35: ESG activities at Alior Bank
ESG activities at Alior Bank Selected activities in 3Q’24 Activities completed in 3Q’24 Activities initiated in 3Q’24 • We have developed a methodology for calculating the carbon footprint of • We are in the process of preparing a the loan portfolio Sustainability statement • We joined the Responsib
Slide 36: Alior Bank's investment services
Alior Bank’s investment services Alior Bank’s Brokerage House Alior TFI In 3Q'24, the Brokerage's commission income was 37% 3Q’24 was Alior TFI's third consecutive record quarter in terms of higher than in the previous year, and revenues after three fund sales. At the end of September 2024, TFI had
Slide 37: Activities of Alior Leasing
Activities of Alior Leasing Lease and loans portfolio (PLN bn) +5% +0.4% • Alior Leasing's leasing and loan portfolio amounted to PLN mn 6 435 at the end of 3Q’24 6 341 6 411 6 435 6 155 6 194 • Sales in 1-3Q’24 amounted to PLN mn 2 241 and were 11% higher than in the corresponding period of the pre
Slide 38: Gross structure of the loan portfolio
Gross structure of the loan portfolio Loan portfolio in total (PLN mn) Retail Customer Segment (PLN mn) Business Customer Segment* (PLN mn) +3% +7% -3% -2% 0% -5% 40 639 40 591 38 046 26 375 26 921 4 902 4 662 25 665 64 421 67 560 66 257 4 369 6 155 6 411 6 435 26 921 25 665 26 375 16 999 19 794 20
Slide 39: Deposit portfolio managed to optimize cost of financing
The bank manages the deposit portfolio in order to optimize the cost of financing (data in PLN mn) Structure of net liabilities to Customers Net liabilities structure - Retail Segment Net liabilities structure - Business Segment +5% +5% +6% +1% +0% +3% 72 868 75 832 76 447 52 971 52 948 22 232 22 86
Slide 40: Consolidated statement of financial standing
Consolidated statement of the financial standing of the Alior Bank Group (PLN mn) 3Q 23 4Q 23 1Q 24 2Q 24 3Q 24 % q/q q/q % y/y y/y Total assets 86 320,5 90 134,1 91 379,5 90 146,8 91 183,3 1% 1 036,5 6% 4 862,8 Cash and cash equivalents 3 819,9 2 539,3 2 180,2 2 077,9 3 265,3 57% 1 187,4 -15% -554,
Slide 41: Asset structure of Alior Bank Group
Asset structure of Alior Bank Group (PLN bn) Alior Bank Group assets Receivables from Customers (net) +16% +12% +1% +3% 90,1 91,2 83,0 82,9 10,3 6,9 62,9 78,6 61,0 8,7 8,3 56,2 58,2 57,6 6,7 21,4 +4% YTD 18,8 16,1 17,0 23,9 15,7 23,0 21,8 22,4 22,3 -8% YTD 5,0 4,6 4,3 4,3 3,9 +9% YTD 61,0 62,9 13,2
Slide 42: Liability structure of Alior Bank Group
Liability structure of Alior Bank Group (PLN bn) Alior Bank Group liabilities Liabilities to Customers +14% +16% +2% +1% 75,2 76,4 90,1 91,2 72,0 70,8 2,6 2,5 83,0 82,9 5,7 4,0 66,9 1,1 -7% YTD 1,3 78,6 1,7 8,3 5,1 5,9 5,4 7,9 5,5 5,2 4,3 +5% YTD 5,7 7,2 14,1 13,8 15,0 -2% YTD 17,3 16,4 13,5 13,9 14
Slide 43: New sale of loans
New sale of loans (PLN mn) Sales in the Business Customer Segment* +10% -8% 3 069 2 833 2 891 2 432 2 414 1 197 2 446 2 399 2 196 2 276 2 197 2 082 2 103 1 424 1 999 1 525 691 773 762 1 823 628 1 137 754 1 186 +34% y/y 603 1 455 1 194 1 516 886 562 1 741 1 872 1 673 1 568 1 637 1 220 1 328 1 277 1 4
Slide 44: Additional information
Additional information Employment (FTEs) Alior Bank’s branches +44 -11 +1% -2% -53 -1% 0 0% 7 229 7 271 7 247 7 194 523 521 519 7 150 512 512 519 524 530 -1% y/y -4% y/y 519 514 183 180 178 177 176 67 66 58 53 -24% y/y 71 -1% y/y 6 560 6 644 6 681 6 659 6 627 +1% y/y 340 341 341 335 336 3Q'23 4Q'23
Slide 45: Quotations, shareholding structure, ratings
Alior Bank S.A. - quotations, shareholding structure, ratings Alior Bank share price: PLN 92.68 (data as of September 30, 2024) Alior Bank’s share price compared to WSE indices (comparable data for 12 months) Capitalization : PLN bn 12,1 110 Value of shares in free float : PLN bn 6 P/BV**: 1.1x 100
Slide 46: Contact
Contact Contact data Investor Relations and Subsidiaries Supervison Department Address details e-mail: ir@alior.pl Alior Bank S.A. Investor Relations and Subsidiaries Supervision Department ul. Łopuszańska 38D 02-232 Warsaw Poland More information Next events: Website • Wyniki za III kw. 2024 r. – 2
Slide 47: Disclaimer
Disclaimer This data has been prepared by Alior Bank S.A. (“Bank”, “Company”) solely for the purpose of the Presentation. Any and all data that may constitute a projection for the Company’s future economic and financial results, contained in this presentation, has been prepared based on the Report o