Alpha Bank S.a. · ATHEX:ALPHA
Alpha Bank — Q1 2024 Earnings Presentation
85 slides from Alpha Bank's earnings presentation, May 16, 2024
Slide 1: Alpha Bank Q1 2024 Results
Alpha Bank Q1 2024 Results Investor presentation 16th May 2024
Slide 2: Disclaimer
Disclaimer Systemic bank established in 1879 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 n
Slide 3: Pages
Pages • Business Update 3 • Financial Performance Analysis 12 Alpha Bank • Appendix ▪ Segmental Information 25 ▪ Macroeconomic Update 31 ▪ ESG 33 ▪ P&L 41 ▪ Volumes 47 ▪ Digital 57 ▪ Asset Quality 72 ▪ Capital 77 3
Slide 4: Q1 2024 performance reinforces outlook
Q1 2024 performance reinforces outlook Profitability 2024 Guidance • Record high Reported Profit at €211.1mn • +9.6% y/y Net Interest Income at €420.2mn Return on Tangible Equity1 Return on Tangible Equity1 • +18.0% y/y Fee income at €96.3mn 13.5% c. 13% • 38.4% Cost-Income ratio vs. 43.3% last year
Slide 5: Constant profitability improvement during business plan horizon
Constant profitability improvement during business plan horizon 2023 2024 2025 2026 Total Revenues (€ bn) 2.1 c.2.1 c.2.2 c. 2.3 Cost-Income Ratio 40% c.40% c.37% c.37% Cost of Risk 82bps c.75bps c.70bps < 65bps ROTE1 12.9% c.13% c.13.5% >14% Normalised EPS2 (€) 0.32 c.0.31 c.0.33 > 0.35 Tangible Eq
Slide 6: Buyback application reflecting return on current market value
Buyback application reflecting return on current market value FY 23 Q1 24 FY 24E FY 25E FY 26E EPS1 0.32 0.09 c.0.31 c.0.33 > 0.35 c. 5x PE4 (2024-2026 average) ROTE3 12.9% 13.5% c.13% c.13.5% >14% c. 0.5x PTBV4 (2024-2026 average) Assumed payout2 20% 35% 35% 50% 50% c. 30% of Market Cap4 assumed di
Slide 7: Outlook for operating excellence enabled by work on HR and Digital
Outlook for operating excellence enabled by work on HR and Digital Business plan Cost-Income evolution (Group, %) HR and Digital as drivers of growth and efficiency 39% Digital products expanding catalogue and enabling continued Sales growth in sales and revenue diversification c.1.4% c. 37% Upskill
Slide 8: Constant progress through our three HR pillars
Constant progress through our three HR pillars Redefine roles and capabilities of Attract and Grow Cement high Enabling HR talent performance culture 1 business Introduced 20 new roles and allocated 10 HR +187 new hires dedicated to New combined variable plan. transformation Business Partners for al
Slide 9: Continuous improvement in key digital metrics
Continuous improvement in key digital metrics Key Achievements since 20221 Investor Day KPIs 2022 2023 Q1/2024 2024 Target • +37% Digital Sales Items in Q1 YoY Digital Sales 19% 23% 25% 25% • +70 New Digital Products & Services launched Daily Banking • +350 Digital Journeys redesigned & launched Dig
Slide 10: Key Digital Launches | myAlpha Vibe
Key Digital Launches | myAlpha Vibe Full launch Q4 2023 Pocket money for teenagers aged 15-18 2 available packages • 1 child – 1.99€/month • 2-4 children – 2.99€/month > 3,000 Cards to date1 Note: Data as of March 2024 10
Slide 11: Our partnership with UniCredit is getting operationalized
Our partnership with UniCredit is getting operationalized Romania total assets market shares (Dec-22) 1 Joining forces in Romania by combining respective subsidiaries in 12% Merger 9% the country to capitalise on the very favourable geopolitical and #3 3% in Romania economic outlook for the country
Slide 12: Pages
Pages • Business Update 3 • Financial Performance Analysis 12 Alpha Bank • Appendix ▪ Segmental Information 25 ▪ Macroeconomic Update 31 ▪ ESG 33 ▪ P&L 41 ▪ Volumes 47 ▪ Digital 57 ▪ Asset Quality 72 ▪ Capital 77 12
Slide 13: Q1 2024 Group Profit & Loss
Q1 2024 Group Profit & Loss Profit & Loss Reported Profit After Tax (Romania in Discontinued ops) Q1 Q1 yoy % Q1 Q4 qoq % 2024 2023 change 2024 2023 change +90% +75% (€ mn) €211mn €191mn €188mn Net Interest Income 420 383 10% 420 439 (4%) Net fee and commission Income 96 82 18% 96 99 (3%) €111mn €12
Slide 14: Q1 2024 Group Balance Sheet
Q1 2024 Group Balance Sheet Tangible Book Value Balance Sheet Mar 2024 Dec 2023 Mar 2023 q/q Group, € mn (€ bn) +13% +3% 6.6 Assets 74.4 73.7 73.7 0.7 6.4 6.2 Securities 16.3 16.1 14.7 0.3 6.1 5.9 Cash & Cash Balances 4.5 4.2 8.3 0.3 Net Loans 36.3 36.2 38.2 0.2 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 ECB bal
Slide 15: Trends in line with expectations across main P&L items
Trends in line with expectations across main P&L items Net Interest Income Net fee and commission income Group, € mn Group, € mn 435 439 101 99 420 96 91 397 383 82 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Recurring operating expenses Cost of Risk1 Group, € mn €mn & bps over net l
Slide 16: Hedging costs and frontloaded issuance expectedly weighing on NII
Hedging costs and frontloaded issuance expectedly weighing on NII Interest Income / Interest Expense breakdown1 Performing loan spreads3 Group, € mn Greece, % 3.47% 420 3.37% Individuals 434 3.27% 430 Business 3.18% 397 3.13% 388 3.12% 3.09% 3.02% 2.94% 2.88% 468 475 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 45
Slide 17: Year to date performance reaffirms expected trajectory
Year to date performance reaffirms expected trajectory Drivers of Net Interest Income evolution (illustrative) Key driver: - Deposits re-pricing higher + Deposits re-pricing lower + Loan volumes Other: - Higher wholesale funding costs + Higher loan balances + Structural hedging - Loan re-pricing + R
Slide 18: Fees up 18% y/y; growth across all products and segments
Fees up 18% y/y; growth across all products and segments € mn € mn Group Segments 101 99 101 99 96 96 91 91 82 32 82 34 30 38 35 32 30 33 26 28 16 16 19 14 14 5 33 4 4 35 36 6 29 5 26 25 30 26 23 23 20 20 21 22 26 13 17 17 19 17 5 0 5 0 5 0 5 5 0 3 3 3 1 2 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 0 Q1 23 Q2 23
Slide 19: Recurring costs down 2.5% y/y
Recurring costs down 2.5% y/y as lower resolution fund fees and further optimisations counter the impact from inflation & investments € mn € mn Group Segments Cost-Income 43% 42% 38% 36% 38% 211 207 194 205 211 207 205 200 200 10 12 194 14 81 84 98 101 102 83 85 87 95 97 87 81 69 72 38 71 43 42 41 3
Slide 20: Performing loans up 1% q/q equally driven by Retail and Wholesale
Performing loans up 1% q/q equally driven by Retail and Wholesale Performing loan book expansion Net credit expansion Group, € bn Greece, € bn Romania 3.0 3.0 3.1 1.1 YoY 0.1 +6% Disbursements +3% +1% 0.1 +2% +1% 0.1 0.0 0.1 29.7 29.9 0.1 0.2 28.5 28.7 1.3 1.3 +6% 0.1 2.7 28.1 1.2 1.2 1.2 1.9 1.6 1.
Slide 21: Drop in deposits on AuM conversion for Individuals and Corporates
Drop in deposits on AuM conversion for Individuals and repayments & investment for Corporates. Share of time deposits stable q/q Deposits evolution Deposit Mix Group, € bn Greece, € bn +1% (2%) 48.4 46.1 45.8 45.4 0.0 0.2 47.3 44.5 2% 1% 44.0 46.7 (0.4) 1% 3.1 State 2% 1% (0.9) International 2.8 3.2
Slide 22: NPEs flat affected by state guaranteed loans
NPEs flat affected by state guaranteed loans 69bp Cost of Risk in line with guidance NPE (0.2) 0.0 (0.1) (0.1) (0.0) Cost of Risk formation bps (over net loans) Greece, € bn 96 77 74 75 13 13 69 14 13 13 13 Mainly single State 5 8 11 o/w 32bps 0.10 case 0.11 guaranteed 14 for sale 58 70 perimeter lo
Slide 23: Quarterly evolution in Capital
Quarterly evolution in Capital CET1 q/q % 0.2% 0.7% (0.1%) 0.0% 16.2% (0.1%) (0.1%) 0.0% 0.7% Organic Capital Generation 14.9% 14.6% 14.3% Dec-23 Q1 24 DTA DTC RWAs AT1 Other capital Transactions Mar-24 Mar-24 post Mar-24 1 organic PnL elements dividend pro forma accrual RWAs q/q % €0.01bn 32.2 0.1
Slide 24: Ahead of regulatory requirements with capital buffers expanding
Ahead of regulatory requirements with capital buffers expanding 25.7% 22.5% 20.9% 17.5% 16.2% 14.7% 0.8% 12.0% 2.0% 25.7% 0.6% 22.5% CCyB 9.9% 1.5% 20.9% 0.2% P2R 1.7% 17.5% 1.0% 16.2% O-S II 2.5% CCB Pillar 1 4.5% 1 1 1 2024 CET1 Q1 2024 CET1 2024 T1 Required Q1 2024 T1 2024 OCR Q1 2024 CAD 2024 no
Slide 25: Pages
Pages • Business Update 3 • Financial Performance Analysis 12 Alpha Bank • Appendix ▪ Segmental Information 25 ▪ Macroeconomic Update 31 ▪ ESG 33 ▪ P&L 41 ▪ Volumes 47 ▪ Digital 57 ▪ Asset Quality 72 ▪ Capital 77 25
Slide 26: Retail: Uplift from fees and subdued deposit beta sustain profitability levels
R E TA I L Uplift from fees and subdued deposit beta sustain profitability levels Key figures REVENUES / VOLUMES PROFITABILITY (in €mm) Q1 24 Q1 23 ∆change, % Net loans 9,166 9,012 2% + €21mn + €0.8bn Revenues y/y Deposits y/y Deposits 33,193 32,418 2% Total revenues 199 179 11% + €19mn + €1.7bn Pro
Slide 27: Wholesale: Volume growth and RWA optimization lead profitability higher
WHOLESALE Volume growth and RWA optimization lead profitability higher Key figures REVENUES / VOLUMES PROFITABILITY (in €mm) Q1 24 Q1 23 ∆change, % Net loans 24,514 23,530 4% + €22mn (€1.0bn) Revenues y/y Deposits y/y Deposits 8,531 9,539 (11%) Total revenues 223 201 11% + €2mn €1.0bn Profits3 y/y N
Slide 28: Wealth: Growth in AuMs leading fees and profitability higher
W E A LT H Growth in AuMs leading fees and profitability higher Key figures REVENUES / VOLUMES PROFITABILITY (in €mm) Q1 24 Q1 23 ∆change, % Assets under €5mn + €1.6bn 17,209 11,658 48% Revenues y/y Mutual Funds y/y Management Total revenues 31 26 21% + €3mn + €4.0bn Recurring Operating Profits3 y/y
Slide 29: International: Volume growth leading revenues higher
I N T E R N AT I O N A L Volume growth leading revenues higher Key figures REVENUES / VOLUMES PROFITABILITY (in €mm) Q1 24 Q1 231 ∆change, % Net loans 1,242 1,225 1% + €4mn €0.4bn Revenues y/y Deposits y/y4 Deposits 3,240 2,791 16% Total revenues 37 33 12% (€3mn) €0.02bn Profits3 y/y Net Loans y/y4
Slide 30: NPAs and Other operations
NPAs and Other operations Non Performing Assets (NPAs) Other (in €mm) Q1 24 Q1 23 ∆change, % (in €mm) Q1 24 Q1 23 ∆change, % Net loans 1,602 2,314 (31%) Assets 20,222 19,874 2% Assets 3,426 4,909 (30%) TBV 1,674 902 86% Total revenues 15 26 (44%) Total revenues 54 17 … Recurring Operating Recurring
Slide 31: Pages
Pages • Business Update 3 • Financial Performance Analysis 12 Alpha Bank • Appendix ▪ Segmental Information 25 ▪ Macroeconomic Update 31 ▪ ESG 33 ▪ P&L 41 ▪ Volumes 47 ▪ Digital 57 ▪ Asset Quality 72 ▪ Capital 77 31
Slide 32: Fiscal consolidation, solid growth rates and declining inflation
Fiscal consolidation, solid growth rates and declining inflation De-escalation of Public Debt to Nominal GDP, on the back of… …the return to GG primary surpluses 240% 3.0 1.9 2.1 2.1 195.0% 200% 1.5 172.7% 161.9% 0.0 152.7% 0.0 160% 146.3% 120% -1.5 -1.1 -0.9 -2.0 -1.9 80% -3.0 -3.7 40% -4.5 -4.5 0%
Slide 33: Pages
Pages • Business Update 3 • Financial Performance Analysis 12 Alpha Bank • Appendix ▪ Segmental Information 25 ▪ Macroeconomic Update 31 ▪ ESG 33 ▪ P&L 41 ▪ Volumes 47 ▪ Digital 57 ▪ Asset Quality 72 ▪ Capital 77 33
Slide 34: We continue to set new milestones in our commitment to a greener tomorrow
Ahead of regulatory requirements with capital buffers expanding We continue to set new milestones in our commitment to a greener tomorrow 2019 – 2022 2023 2024 2025 Set the foundations for our Fully embed sustainability Scale up sustainable finance to sustainability strategy targets into our Busines
Slide 35: Aligning our Sustainability Strategy with the expectations of our Stakeholders
…aiming to align our Sustainability Strategy with the expectations of our Stakeholders Effective engagement and feedback process Investors Regulators Customers Employees Society ➢Net Zero targets ➢Compliance with National ➢Access to finance ➢Gender diversity & inclusion ➢Gender diversity & inclusion
Slide 36: We set ambitious and measurable Targets
We set ambitious and measurable Targets… Setting and achieving ambitious, measurable Targets in line with the Sustainable Development Goals Support an environmentally Foster healthy economies Ensure robust & transparent Our Vision sustainable Economy and Societal progress Governance • Align our port
Slide 37: We consistently meet our Sustainability Milestones
… and we consistently meet our Sustainability Milestones… The Sustainable Finance Framework lays the groundwork for helping the Bank to achieve its sustainability strategy Mobilizing capital for Sustainable Economic Activities Prioritizing investments that support environmental sustainability and so
Slide 38: Operationalization of our Sustainability Strategy
… progressing towards the Operationalization of our Sustainability Strategy… We are implementing a dual approach to integrating Sustainability within our Business Model and Climate Risk Framework Top-down Setting Clear Emission Targets Commitment to specific, measurable emissions reduction targets,
Slide 39: Achieving our Sustainability Goals
… and towards achieving our Sustainability Goals We are witnessing tangible results on our path to Sustainability Support an environmentally Foster healthy economies and Ensure robust & transparent sustainable Economy Societal progress Governance EUR 0,8 billion ✓ Disbursements to sustainable > 300
Slide 40: Our efforts are already reflected in our Ratings
Our efforts are already reflected in our Ratings. Memberships Alpha Services & Holdings has achieved Prime Status in May 2023 following dedicated engagement with ISS. Performance Score improved to 50.83 from 35.79, resulting in ISS Corporate ESG Rating “C”. Improvement to focus on the sustainability
Slide 41: Pages
Pages • Business Update 3 • Financial Performance Analysis 12 Alpha Bank • Appendix ▪ Segmental Information 25 ▪ Macroeconomic Update 31 ▪ ESG 33 ▪ P&L 41 ▪ Volumes 47 ▪ Digital 57 ▪ Asset Quality 72 ▪ Capital 77 41
Slide 42: Loan and deposit spreads
Loan and deposit spreads Net loan balances & spreads Deposit mix & cost evolution € bn bps, € bn 229 264 285 276 167 324 350 % Total 317 306 298 50.2 51.8 52.2 293 48.4 47.1 300 13.0 14.8 15.5 13.0 28% 13.1 38.2 38.7 38.8 End of 250 37.1 37.0 36.7 35.4 72% 36.2 36.3 34.1 quarter balances Q1 23 Q2 23
Slide 43: Operating Expenses
Operating Expenses Group, € mn Q1 24 Q1 23 yoy % Q1 24 Q4 23 qoq % Recurring Operating Expenses evolution €mn Staff costs (87.3) (83.3) 4.8% (87.3) (83.7) 4.2% 206 211 207 194 200 General Administrative (71.8) (85.8) (16.2%) (71.8) (68.9) 4.3% expenses 83 81 85 84 87 Staff costs Depreciation and (41
Slide 44: Alpha Bank Group
Alpha Bank Group qoq% yoy% (€ mn) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 change change Net Interest Income 383.5 396.6 434.7 438.7 420.2 (4.2%) 9.6% Net fee and commission income 81.6 90.8 100.9 99.2 96.3 (3.0%) 18.0% Income from financial operations 7.6 24.3 (13.0) 20.6 37.8 83.6% … Other income 9
Slide 45: Reported to Normalised
Reported to Normalised Profit & Loss (€ mn) Bridge between reported and normalised profit Q1 2024 Published Delta Normalised Net Interest Income 420 0 420 Net fee and commission Income 96 0 96 Trading income 38 0 38 Other income 6 0 6 Operating Income 560 560 Staff costs (87) 0 (87) General Administ
Slide 46: 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 Reported Profit/ (Loss) after income tax 123 115 70 59 111 191 188 121 211 Net Interest Income 0 0 0 0 0 0 0 0 0 Net fee and commission Inco
Slide 47: Pages
Pages • Business Update 3 • Financial Performance Analysis 12 Alpha Bank • Appendix ▪ Segmental Information 25 ▪ Macroeconomic Update 31 ▪ ESG 33 ▪ P&L 41 ▪ Volumes 47 ▪ Digital 57 ▪ Asset Quality 72 ▪ Capital 77 47
Slide 48: Balance sheet composition
Balance sheet composition Asset split Liabilities and Equity split € bn € bn 73.7 74.4 73.7 74.4 Cash 4.2 Cash 4.5 4.0 ECB 5.0 ECB Due from Banks 1.7 Due from Banks 1.8 4.4 Due to Banks 2.1 Due to Banks Securities 16.1 Securities 16.3 13.0 Time Deposits 13.1 Time Deposits 48.5 47.3 35.5 Core Deposit
Slide 49: New disbursements in Q1 2024
New disbursements in Q1 2024 Performing loans New disbursements – per category Greece, € bn Greece, € mn Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Beginning of 24.8 25.8 26.7 27.4 27.3 26.9 27.3 27.5 28.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 period 21 21 21 21 22 22 22 22 23 23 23 23 2
Slide 50: Breakdown of loans portfolio – March 2024
Breakdown of loans portfolio – March 2024 Total Group loans – per segment Group Loans portfolio structure1 € bn € bn Consumer loans Small Business Loans 3% 6% Households Other Credit Cards Mortgages 26% 20% 3% 20% Administrative and support service activities 1% Agriculture €37.2bn €37.2bn Transport
Slide 51: Securities portfolio breakdown
Securities portfolio breakdown Securities portfolio breakdown Group, Book value, Mar-24, € bn ▪ The “Other/ECB eligible” bonds of €7.8bn is broken down to the following T-bills Mutual Funds & Equities categories: 0.8 0.3 o/w 13.7bn • €4.1bn other sovereign bonds HQLAs • €0.7bn bonds issued by supran
Slide 52: Securities portfolio evolution
Securities portfolio evolution Portfolios evolution Q1 2024 New investments Group, Book value € bn Group % of total 12% 10% 11% 14% 14% 14% 17% 20% 21% 21% 22% 22% assets €15.6bn €15.9bn €16.1bn €15.0bn €14.3bn Mod. Duration €13.1bn c.2.6Y 44% GGBs/T-Bills HQLAs €10.4bn €9.9bn Other 55% €8.7bn 37% 8
Slide 53: Deposits flow per quarter
Deposits flow per quarter Alpha Bank deposits evolution in Greece Deposits breakdown – March 2024 Greece, € bn Q2: Q3: Q4: Q1: €1.4bn €0.2bn (€0.7bn)1 (€1.3bn) Time 1.5 45.8 0.5 46.1 45.4 26% 44.5 44.0 (0.3) (0.3) (0.4) (0.1) (1.1) (0.2) Δ Core Δ Time 74% Core Mar-23 Core Time Jun-23 Core Time Sep-2
Slide 54: ECB Balances and Liquidity metrics
ECB Balances and Liquidity metrics ECB balances Group LCR & LDR Group, € bn % % over 17% 17% 12% 7% 7% 5% 188% 193% Total 183% 186% Assets 163% 13.0 ECB Collateral pledged ▪ Credit claims LCR ▪ GGBs & T-bills LDR ▪ Other bonds 9.0 76% 75% 74% 75% 77% 13.5 TLTRO 13.1 5.0 5.0 5.0 12.3 4.0 12.0 Commerc
Slide 55: Wealth management
Wealth management Asset Management balances Private Banking Group, € bn Group, € bn 17.2 15.7 8.1 7.6 7.1 7.2 6.0 6.9 1.9 12.7 12.7 5.3 1.9 11.7 2.0 1.9 1.9 4.7 4.8 2.1 4.4 3.0 1.9 2.8 1.8 1.8 1.7 2.2 2.5 2.1 1.9 1.8 1.4 1.4 1.6 6.8 7.4 4.4 4.9 4.7 1.8 2.0 1.9 2.0 2.3 0.7 0.8 0.8 0.8 0.9 Mar-23 Jun-
Slide 56: Business Volumes
Business Volumes (€ mn) Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 % YoY Group Gross Loans 39,327 39,787 39,883 37,072 37,243 (5.3%) Mortgages 9,285 9,198 9,132 7,335 7,299 (21.4%) Consumer Loans 1,564 1,553 1,514 1,253 1,281 (18.1%) Credit Cards 1,004 1,015 1,029 959 1,023 1.8% Small Business Loa
Slide 57: Pages
Pages • Business Update 3 • Financial Performance Analysis 12 Alpha Bank • Appendix ▪ Segmental Information 25 ▪ Macroeconomic Update 31 ▪ ESG 33 ▪ P&L 41 ▪ Volumes 47 ▪ Digital 57 ▪ Asset Quality 72 ▪ Capital 77 57
Slide 58: Customer Experience in the center of our digital transformation
Customer Experience in the center of our digital transformation Digital Journeys New Digital Journeys under Customers’ comments & 350+ redesigned & launched 180+ design 18k points of feedback used Information Architecture redesign UX Flows UI / UX Designs Note: Data for last 15 months 58
Slide 59: Actively leveraging AI to increase sales and operational efficiency
Actively leveraging AI to increase sales and operational efficiency 55 AI models in operation with 22 delivered in last 15 months Q1 2024 campaign results 17 new ML models 1 5 new NLP and GenAI 300 11M +1.7M for business development models increasing efficiency vs PY: +12,1% vs PY: +134% vs PY: +31,
Slide 60: Significant enrichment in Digital Products & Services offering
Significant enrichment in Digital Products & Services offering Microcard 50+ new ~20 new digital myAlpha Benefit digital products & services products & services launched for individual launched for Business Remote Collaboration clients1 clients1 Payrollers Quick Loan MyAlpha Documents 1| Data for la
Slide 61: myAlpha Vibe
myAlpha Vibe Full launch Q4 2023 Pocket money for teenagers aged 15-18 2 available packages • 1 child – 1.99€/month • 2-4 children – 2.99€/month > 3,000 Cards to date1 Note: Data as of March 2024 61
Slide 62: myAlpha Benefit
myAlpha Benefit Subscription-based banking Standard Package 2 New Packages Package management Launch Q1 2023 Launch Q1 2024 62
Slide 63: myAlpha Quick Loan Payroll & Counter-Offer
myAlpha Quick Loan Payroll & Counter-Offer Payroller Quick Loan Derivative Counter-offer functionality (Launch 30/06/2023) (Launch 25/07/2023) >70% of Quick Loan 74% production1 since Acceptance Rate launch since launch1 1 | As at Q1 2024 63
Slide 64: MicroCard
MicroCard Gradual launch 26/09/2023 Full launch 29/11/2023 4 Credit Cards + Payroller offering €1.500 Credit limit > 5,500 Issued Cards to date1 1 | As at Q1 2024 64
Slide 65: Salary and pension account – Alpha Payroll
Salary and pension account – Alpha Payroll Launch 16/09/2023 Through Mobile All benefits after and Web 1st salary installment 3,300 Accounts to date1 Mobile 60% 40% Web 1 | As at Q1 2024 65
Slide 66: Digital Channels Connectivity with Campaign Systems
Digital Channels Connectivity with Campaign Systems Offering personalized communication in our Mobile & Bonus app, by connecting our campaign Systems Aegean Bonus Visa Inactive accounts myAlpha Quick Loan Mobile app: 8 different sections for in-app Credit Xmas Promo promotion & Lucky draw messages D
Slide 67: Remote Customer Collaboration
Remote Customer Collaboration A unified cockpit for Diverse set of journeys Appointment booking Video banking Document exchange and signing E2E digital ONLINE Start remote, complete online Start online, complete in branch Start in branch, complete remotely OFFLINE Full sale in branch >35K appointmen
Slide 68: Simple Imports for Business
Simple Imports for Business Launch 02/2023 New features: ❑ Up to 500K € equivalent (from 50K € equivalent) ❑ Non-SEPA • Non-EU • OUR charges • Foreign currency 68
Slide 69: bizpay: The simplest way to manage business expenses
bizpay: The simplest way to manage business expenses bizpay app for Employees Full Control via myAlpha Web Business • 600 Companies • 2,900 Issued Cards Better communication with accounting Employees and associates easily link receipts/invoices with a transaction and send them in on the spot. The ac
Slide 70: Certificate Issuance for Business
Certificate Issuance for Business • Average account balance Certificate launched in March ’23 (80 per month) Certificate Issuance • Account ownership Certificate (Account IBAN) launched in April ’23 (140 per month) Note: Data as of 31/12/2023 70
Slide 71: myAlpha Documents for Business
myAlpha Documents for Business Case-based MAD Launched in July ’23 • Tap-to-accept • Digital Signature • Documents upload by the customer • Real-time notification regarding pending document Customer initiation Launched in December 71
Slide 72: Pages
Pages • Business Update 3 • Financial Performance Analysis 12 Alpha Bank • Appendix ▪ Segmental Information 25 ▪ Macroeconomic Update 31 ▪ ESG 33 ▪ P&L 41 ▪ Volumes 47 ▪ Digital 57 ▪ Asset Quality 72 ▪ Capital 77 72
Slide 73: 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 97 334 80 56 17 4 70 (70) (84) (147) (28) (186) (192) (155) (284) (353) (254) (461) (994) 2018 2019 2020 2021 2022 2023 Q2 Q3 Q4 Q1 2018 2019 2020
Slide 74: Auctions and repossession activity evolution
Auctions and repossession activity evolution Auctioned properties (Conducted) per quarter 3.871 ▪ During 1Q 2024, the Bank continued with its disinvestment strategy through the completion of €16,5mn REO sales in Greece and €0,8mn in Cyprus and SEE. Sales in Greece included both commercial as well as
Slide 75: Asset quality by portfolio - Greece
Detailed overview of Alpha Bank’s asset quality by portfolio - Greece (€ bn) Wholesale SBL Mortgages Consumer Total Gross loans 24.9 2.1 6.7 2.2 35.8 (-) Accumulated Provisions (0.3) (0.2) (0.2) (0.2) (1.0) Net loans 24.6 1.8 6.4 2.0 34.9 NPLs 0.2 0.3 0.4 0.2 1.1 NPL ratio 0.9% 15.9% 5.6% 9.2% 3.1%
Slide 76: Asset quality by portfolio - Group
Detailed overview of Alpha Bank’s asset quality by portfolio - Group (€ bn) Wholesale SBL Mortgages Consumer Total Gross loans 25.5 2.1 7.3 2.3 37.2 (-) Accumulated Provisions (0.3) (0.2) (0.3) (0.2) (1.0) Net loans 25.2 1.9 7.0 2.1 36.2 NPLs 0.2 0.3 0.445 0.2 1.2 NPL ratio 0.8% 15.8% 6.1% 9.3% 3.2%
Slide 77: Pages
Pages • Business Update 3 • Financial Performance Analysis 12 Alpha Bank • Appendix ▪ Segmental Information 25 ▪ Macroeconomic Update 31 ▪ ESG 33 ▪ P&L 41 ▪ Volumes 47 ▪ Digital 57 ▪ Asset Quality 72 ▪ Capital 77 77
Slide 78: Fully loaded Regulatory Capital
Fully loaded Regulatory Capital Equity to fully loaded regulatory capital bridge € mn 9.0% Tangible book value / Tangible Assets 7,090 6,619 (471) 1,000 6,112 400 5,112 4,712 (1,710) (197) Ordinary Equity Intangibles Tangible DTA deduction Other CET1 AT1 & Hybrids Tier 1 Lower Tier II Total CAD Book
Slide 79: Group RWAs and Regulatory Capital
Group RWAs and Regulatory Capital Group Risk Weighted Assets – Fully Loaded Credit Risk Weights per portfolio € bn % €0.01bn 32.2 0.1 32.2 100% 0.4 3.3 (0.1) 0.0 0.5 3.3 48% 50% 28.5 28.4 Performing Net NPE Total Loan Portfolio Dec-23 Credit Market Operational Mar-24 RWA Density Credit Market Operat
Slide 80: Further progress towards meeting MREL Requirements
Further progress towards meeting MREL Requirements +3.22% ▪ Further progress towards final MREL targets in a sustainable fashion Surplus +0.49% Surplus ▪ No subordinated MREL requirement €0.7bn Shortfall ▪ Expect Alpha Bank to continue to be a regular issuer in the debt capital markets 27.96% 3.70%
Slide 81: 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 82: 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 83: 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 84: 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 85: Alpha Bank Contacts
Alpha Bank Contacts Lazaros Papagaryfallou General Manager – CFO +30 210 326 2261 cfo-office@alpha.gr Iason Kepaptsoglou Stella Traka Selini Milioni Director Manager Senior Investor Relations Division Investor Relations Division Investor Relations Officer +30 210 326 2271 +30 210 326 2274 +30 210 32