Alior Bank Sa · GPW:ALR
Alior Bank Sa — Q1 2021 Earnings Presentation
48 slides from Alior Bank Sa's earnings presentation, Apr 28, 2021
Slide 1: Presentation of IQ 2021 Financial Performance
Alior Bank SA Presentation of IQ 2021 Financial Performance Warsaw, 28 April 2021
Slide 2: Agenda
Agenda 1 Key issues 2 Operations 3 Credit risk 4 Financial performance 5 Appendices 2
Slide 3: Key issues
Key issues 3
Slide 4: Q1 2021 sales growth, credit risk mitigation and cost reduction
In Q1 2021 – thanks to the sales growth, credit risk mitigation and responsible operating cost reduction Alior Bank once again generated very handsome financial performance Net profit at the level of PLN 108 M. Excellent sales of mortgage loans • In Q1 2021 ROE was at the level of 6.7%. In Q1 2021 t
Slide 5: Q1 2021 - another quarter of good financial performance
Q1 2021 - another quarter of good financial performance Improvement of the net profit despite the Bank's external The increase in assets and the number of online Customers forms the basis that environment being worse than in the previous year will allow the Bank to develop dynamically after the end
Slide 6: Stable and safe position: capital and liquidity surpluses over regulatory minima
Bank's stable and safe position: significant capital and liquidity surpluses over regulatory minima At the end of 1Q21 the levels of TIER1 and TCR capital ratios exceed significantly the regulatory minima, respectively by: 464 bps (2,236 PLN M) and by 477 bps (2,299 PLN M) TIER 1 Liquidity - LCR 12,
Slide 7: We successfully implement climate challenges
We successfully implement climate challenges An agreement signed with the National Fund of Environmental Protection Co-operation with: and Water Management under "Clean Air” Programme – Customer's application for a grant for partial repayment of bank loan principal designated for 3.2 replacement of
Slide 8: Customers and the market appreciate Alior Bank for service quality
Customers and the market appreciate Alior Bank for the service quality and the products and services offered Institution of the Year Award Award granted by "Cashless Poland Foundation„ Alior Bank was appreciated for the service quality inas many as 6 categories of quality ranking – Alior Bank was gr
Slide 9: Implementation of the updated strategy "More than a bank" 2021-2022
Implementation of the updated strategy "More than a bank" 2021-2022 2020 IQ 21 realisation 2022 goal Assets PLN 78.6 bn PLN 79.9 bn PLN 89 bn Business No. of Retail Cusomers 4.2 M 4.2 M 4.5 M volumes No. of Business Customers 239 thous. 243 thous. 278 thous. ROE -4.7% 6.7% >5% Profitability NIM 3.9%
Slide 10: Operations
Operations 10
Slide 11: Sales of Bank's key products and number of Customers
RETAIL Sales of Bank's key products and number of Customers CUSTOMERS Sales of mortgage loans (bn PLN) No. of Customers with mortgage loan ('000) +58% y/y +12% y/y 0,96 69,0 70,5 0,87 67,2 0,67 0,75 64,8 0,47 63,2 IIQ kw.20 20 IIIIQ kw.20 20 IIIIIIQ kw.20 20 IVQ IV kw.20 20 IIQ kw.21 21 IIQ kw.2020
Slide 12: Excellent sales of mortgage loans
RETAIL Excellent sales of mortgage loans. Alior Bank takes advantage of mounting demand. CUSTOMERS Sales of mortgage loans (PLN M) +58% y/y In Q1 2021 sales of mortgage loans was up by 58% compared to Q1 2020. 965 866 746 665 473 I kw.20 IQ 20 IIIIQ kw.20 20 IIIIIIQ kw.20 20 IVIVQ kw. 20 20 I IQ kw.
Slide 13: Building lasting customer relationships and growing digital channels
RETAIL Effective building of lasting customer relationships and the growing importance of digital CUSTOMERS channels Number of Retail Customers (M) Number of Customers with regular inflows ('000) -11 thous. +1% 976,7 977,3 4,30 4,19 4,23 4,18 4,18 971,5 961,6 961,5 I kw. 2020 IQ 20 II kw. IIQ 2020 2
Slide 14: Customer service improvements and development of digital channels
RETAIL Customer service improvements and development of digital channels CUSTOMERS Framework agreement in KI distance sales infoNina – new voice assistant The customers who use the credit offer via a An AI voice robot that answers questions distance process receive simultaneously of the customers ca
Slide 15: Growing customer satisfaction and NPS
RETAIL Growing customer satisfaction of Alior Bank customers has an impact on building CUSTOMERS a lasting business relationship NPS distribution network Relationship NPS + 4 p.p. 86% 80% 81% 82% + 3 p.p. 76% 36% 35% 35% 32% 28% I kw. '20 IQ 20 IIIIQ kw.20'20 IIIIIIQ kw.20 '20 IVIVQ kw.20 '20 I kw.
Slide 16: Positive trends in sales of key products for entrepreneurs
BUSINESS Positive trends in the sale of the Bank's key products for entrepreneurs CUSTOMERS Total loan limit granted to Total loan limit granted to Small/Medium/Large Customers (PLN bn) Micro Customers (PLN bn) +57% y/y -12% y/y 0,46 2,4 0,41 0,36 0,32 0,32 1,5 1,4 1,3 0,9 I IQ kw.'20 20 IIIIQ kw.'2
Slide 17: Customer number growth and enhancing transactionality
BUSINESS Customer number growth, deepening of relationships and enhancing transactionality CUSTOMERS No. of Business Customers – all segments No. of BankConnect Customers – Small/Medium/Large segment +12% 873 +5% 851 822 810 760 I kw. '20 IQ 20 II IIQ kw.20 '20 IIIIIIQ kw.20 '20 IVIVQ kw.20 '20 I kw
Slide 18: Improving relationality in the Micro Customer segment
BUSINESS Improving relationality in the Micro Customer segment CUSTOMERS Number of Micro Customers actively using auxiliary accounts ('000) Number of instant transfers ('000) +13% +31% 245 264 34,1 34,8 35,1 35,2 38,5 202 211 225 I IQ kw.20'20 II IIQ kw.20 '20 IIIIIIQ kw.20 '20 IVIVQ kw.20 '20 I kw.
Slide 19: Public schemes supporting businesses during Covid-19
BUSINESS Alior Bank participates in public schemes and supports businessmen during CUSTOMERS the Covid-19 pandemic • Alior Bank adjusted its offer to BGK's assistance plans and offered businessmen an increase of the availability of guarantees by changing the level of fees, effective term as well as
Slide 20: Alior Bank distributes public funds in repayable instruments
BUSINESS Alior Bank distributes public funds in the form of repayable instruments CUSTOMERS Alior Bank's share in the Project Broadband Loan - preferential financing for broadband investment projects execution between 2017 and 2021* From July 2017 to March 2021, Alior Bank, acting as a Financial Int
Slide 21: Alior Bank develops credit offer for enterprises
BUSINESS Alior Bank successfully develops credit offer for enterprises CUSTOMERS Price promotion - 50% Selfie-based business loan The Bank has made available a price The Bank has extended an option of fully promotion - 50% loan origination fee for remote transaction processing using the Autenti micr
Slide 22: Deepening relationships with Business Customers via new products
BUSINESS We deepen relationships with the Business Customers based on new transactional CUSTOMERS products and services NEW "Business Plan" account available effective from April 2021 Under the "Business Plan" account we offer free-of-charge: • Opening and keeping of a current account and 2 auxiliar
Slide 23: Operations of key member companies of the Alior Bank Group
Operations of key member companies of the Alior Bank Group Alior Leasing Alior TFI In Q1 2021 Alior Leasing generated sales of PLN 717 In Q1 2021 Alior Investment Fund Company (TFI) million (up by 39% compared to Q1 2020). maintained high level of net sales of the investment funds under its manageme
Slide 24: Brokerage House revenues up by 50%
Excellent performance of the Brokerage House – in Q1 2021 revenues up by 50% y/y Brokerage House's fee income Fees – brokerage account No. of brokerage accounts Initiatives and achievements (revenues) [in PLN M] [PLN M] ['000 pcs.] • Implementation of another (next to Orlen in Portfolio) loyalty pro
Slide 25: Credit Risk
Credit Risk 25
Slide 26: Decrease in cost of risk and improved loan portfolio quality
A decrease in the cost of risk and a noticeable improvement in the quality of the loan portfolio Non-performing loans (PLN M) NPL coverage ratio* Cost of Risk (COR%; QTD basis) 16,00% 11 15,15% Miliony 14,75% 15,00% 14,48% 10 13,67% 13,81% 5,94% 14,00% 9 13,00% 8 53,31% 52,50% 53,55% 55,18% 54,45% 1
Slide 27: Change of lending policy reducing write-offs for expected credit losses
Change of the lending policy is starting to bring material results - visible decrease in the value of write-offs for expected credit losses in both segments y/y Cost of Risk - Alior Bank Group 5,94% In Q1 2021 the Bank maintains a cost of risk below the long-term average. +5% q/q Despite the challen
Slide 28: Loan portfolio quality did not deteriorate in Covid-19 environment
In the Covid-19 environment, the quality of the loan portfolio did not deteriorate Retail Customers* 35 3,00% 2,55% 30 2,27% 2,50% 2,05% 25 1,73% 1,66% 2,00% 1,68% 1,70% 1,73% 1,58% 20 1,52% 1,46% 1,35% 1,50% 15 1,42% 1,03% 0,95% 0,97% 1,00% 10 PLN bn 5 -0.76 p.p. 0,50% 0 0,00% 2019-12-31 2020-01-31
Slide 29: Financial Performance
@ — i EP |: pl a . . = Financial Performance
Slide 30: Profit and Loss Account
Profit and Loss Account PLNmn IQ 2020 IIQ 2020 IIIQ 2020 IVQ 2020 IQ 2021 % y/y y/y Total Income 950,2 791,2 892,7 911,4 891,4 -6% -58,8 Net interest income 776,9 722,0 683,1 666,7 670,2 -14% -106,7 Net fee and commission income 135,2 154,6 169,1 177,0 177,7 31% 42,5 Other income 38,1 -85,4 40,5 67,
Slide 31: Structure of the gross loan portfolio
Structure of the loan portfolio gross. The share of the Retail Segment is increasing. Loan portfolio (PLN M) Retail Segment (PLN M) Corporate Segment* (PLN M) 0% 5% -7% 0% -1% -1% 36 236 36 751 36 702 62 198 61 710 62 346 62 462 62 055 35 063 35 213 27 135 26 498 26 110 3 382 3 900 3 903 25 711 25 3
Slide 32: Total Income (PLN M)
Total Income (PLN M) Total Income split by Segments Total Income split per main P&L lines -6% -6% 950 950 893 911 891 893 911 891 87 791 791 72 42 135 104 169 177 155 178 109 541 451 506 502 361 777 667 722 683 670 322 321 389 344 287 38 40 68 43 -85 IQ 20 IIQ 20 IIIQ 20 IVQ 20 IQ 21 IQ 20 IIQ 20 II
Slide 33: NIM has improved in IQ21
In IQ21 NIM has improved - the result of the Bank's actions aimed at neutralizing the negative impact of the interest rate cut in 2020 Interest Income and Cost (PLN M) Net Interest Margin and Cost of Finance* 4,72% 4,71% 4,70% -22% 4,43% 4,34% 4,11% 4,00% 960 3,71% 3,63% 3,67% 108 857 781 734 745 In
Slide 34: Fee and Commission Net Income continued to improve
As a result of actions taken in 2020, Fee and Commission Net Income continued to improve in IQ21 Fee and Commision Net Income quarterly (PLN M) Fee and Commision Income and Cost (PLN M) +31% +17% 0% Other fee and income costs -2% 329 323 316 294 31 16 25 Costs of card and ATM 269 transactions 24 42
Slide 35: Visible efficiency improvement in cost categories
Visible efficiency improvement – comparing to IQ20 all major cost categories has decreased Operating expenses quarterly (PLN M) C/I** ratio adjusted for BGF charge -13% 46,9% 482 +10% 89 408 418 43,0% 395 380 24 63 24 61 23 41,4% Costs of Bank 59 109 59 56 39,2% Guarantee Fund 39,8% 98 Amortization
Slide 36: Determinants of Net Income change y/y (PLN M)
Determinants of Net Income change y/y (PLN M) 36
Slide 37: Thank you for your attention
Thank you for your attention 37 Alior Bank S.A. | 28 lutego 2020 r. | Wyniki skonsolidowane Grupy
Slide 38: Other information
Other information 38
Slide 39: Polish economy in 2021
Polish economy in 2021 In Q1 2021 the economy was still hit by the pandemic… … but with a relatively good situation in the labour market … GDP dynamics with the major constituents Wage and employment growth in the enterprise sector 8 and the registered unemployment rate 9 15 10 6 8 5 4 7 0 2 6 -5 0
Slide 40: Compared to Europe, Poland still stands out positively
Compared to Europe, however, Poland still stands out positively Stable labour market Consumption demand is moderately limited Change of unemployment rate since Jan. 2020 Retail sales growth rate (pp, according to Eurostat) (%, y/y, wda) 2,5 15 2,0 10 5 1,5 0 1,0 -5 0,5 -10 0,0 -15 -0,5 -20 -1,0 -25
Slide 41: Good Prospects for 2021
Good Prospects for 2021 2021 with a solid GDP growth Inflation at an elevated level GDP dynamics with the major constituents Consumer inflation and MPC interest rate 15 4,0 3,4 3,5 3,1 10 5,4 4,5 5,0 3,0 2,8 4,1 5 2,3 2,5 0 -2,7 2,0 1,7 1,5 -5 1,0 -10 0,5 2018 2019 2020 2021P 2022P 0,0 2018 2019 202
Slide 42: Loans & Deposits
Loans & Deposits Structure of liabilities to Customers net (PLN bn) Loans and advances to Customers net (PLN bn) 65,9 65,9 66,9 68,6 56,2 64,6 56,5 55,7 56,0 56,3 2,0 2,8 3,1 1,7 2,9 4,0 6,0 6,3 6,0 6,0 6,3 4,7 4,1 4,3 5,8 7,2 6,9 7,3 6,8 6,7 6,6 4,6 10,2 8,2 12,4 16,9 10,9 10,1 9,7 11,1 16,4 10,1 1
Slide 43: New sales of credits and loans (PLN M)
New sales of credits and loans (PLN M) Sales in the Business Customer Segment* +34% y/y 2 729 2 120 2 069 865 1 818 1 823 621 657 1 654 1 619 414 1 363 666 603 1 281 541 391 436 1 864 1 499 1 412 1 240 1 152 1 078 1 220 890 927 IQ 19 IIQ 19 IIIQ 19 IVQ 19 IQ 20 IIQ 20 IIIQ 20 IVQ 20 IQ 21 Non-renewa
Slide 44: Consolidated Statement of Financial Position (PLN M)
Consolidated Statement of Financial Position (PLN M) IQ 2020 IIQ 2020 IIIQ 2020 IVQ 2020 IQ 2021 % q/q q/q % y/y y/y Total assets 76 512,2 77 671,9 77 717,3 78 642,0 79 880,6 1,6% 1 238,6 4,4% 3 368,4 Cash and cash equivalents 1 960,9 1 128,5 1 636,9 2 459,9 2 163,6 -12,0% -296,3 10,3% 202,6 Amounts
Slide 45: Additional information
Additional information Headcount (FTEs) Alior Bank branches -557 -141 8 310 -7% y/y -17% y/y 8 183 851 8031 801 529 498 7 878 768 7 754 725 224 490 207 710 220 473 205 224 479 199 225 60 200 200 235 51 51 51 51 7 557 7 465 7 317 7 180 7 040 584 545 518 474 459 IQ 20 IIQ 20 IIIQ 20 IVQ 20 IQ 21 IQ 20
Slide 46: Share performance, shareholding structure, ratings
Alior Bank Group – share performance, shareholding structure, ratings Alior Bank share price performance at the background of WSE indices (comparable data for last 12M) Price of shares in Alior Bank: 23.0 zł (31 March 2021) 24 Market Value: 3.0 mld zł 78,6% y/y Free float: 1.6 mld zł P/BV: 0.46x 19
Slide 47: Contact
Contact Should you have any questions or querries do not hesitate to send them at: Alior Bank S.A. Investors Relations Department ul. Łopuszańska 38D 02-232 Warsaw relacje.inwestorskie@alior.pl More information: Next events: https://www.aliorbank.pl/en/investor-relations/investor-relations.html • IH
Slide 48: Disclaimer
Disclaimer This document has been prepared by Alior Bank S A ("Bank", "Company”) solely for the Presentation purposes. 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 Ca