Alior Bank Sa · GPW:ALR
Alior Bank Sa — Q3 2021 Earnings Presentation
49 slides from Alior Bank Sa's earnings presentation, Oct 27, 2021
Slide 1: Presentation of results for IIIQ 2021
Alior Bank S.A. Presentation of results for IIIQ 2021 Warsaw, 27 October 2021
Slide 2: Agenda
Agenda 1. Key issues 2. Operating activities 3. Credit risk 4. Financial results 5. Appendices 2
Slide 3: Key issues
Key issues 3
Slide 4: Alior Bank has been successively improving its financial results
Alior Bank has been successively improving its financial results Significant improvement of risk parameters PLN 150 million net profit in IIIQ 21 In IIIQ 21, the cost of risk amounted to PLN 252 million (-13% y/y), and the CoR remained low at • ROE for IIIQ 21 amounted to 9.1% 1.58% • C/I for IIIQ 2
Slide 5: IIIQ means yet another quarter of good results
IIIQ 21 means a yet another quarter of the good results achieved by Alior Bank Group A growth of the loan portfolio and a progressive digitisation of services, Thanks to an increase in operational efficiency, combined with an improvement in operational efficiency, serves as the basis the Bank effect
Slide 6: Operating activities
Operating activities 6
Slide 7: Sale of key products of the Bank
RETAIL Sale of key products of the Bank CUSTOMERS Sale of mortgage loans (PLN billion) Number of Customers with a mortgage loan (K) -2% +10% 74,1 0,96 72,3 0,87 0,90 0,94 70,5 0,75 69,0 67,2 IIIQ 20 IVQ 20 IQ 21 IIQ 21 IIIQ 21 IIIQ 20 IVQ 20 IQ 21 IIQ 21 IIIQ 21 Sale of cash loans (PLN billion) Numb
Slide 8: Active participant in the mortgage loans market
Alior Bank has continued to be an active participant in the mortgage loans market RETAIL CUSTOMERS Sales of mortgage loans (PLN million) +23% 1 200 +59% +5% 1 000 800 +20% 2 591 600 2 102 965 944 866 901 400 746 1 321 1 102 200 0 I-IIIQ 18 I-IIIQ 19 I-IIIQ 20 I-IIIQ 21 IIIQ 20 IVQ 20 IQ 21 IIQ 21 II
Slide 9: Effective building of a lasting relationship with Customers
RETAIL Effective building of a lasting relationship with Customers CUSTOMERS Number of Retail Customers* (million) Number of accounts “Jakże Osobiste Account” (K) -6% +24% 4,30 484 4,18 4,18 432 456 4,14 406 4,06 389 IIIQ 20 IVQ 20 IQ 21 IIQ 21 IIIQ 21 IIIQ 20 IVQ 20 IQ 21 IIQ 21 IIIQ 21 Number of m
Slide 10: Growth in digital channels importance
RETAIL Growth in digital channels importance CUSTOMERS Users of Alior Bank mobile applications (K) Number of transfers ordered in the Alior Mobile application (million) +20% +41% 8,2 8,5 671 704 7,7 616 630 6,8 585 6,0 IIIQ 20 IVQ 20 IQ 21 IIQ 21 IIIQ 21 IIIQ 20 IVQ 20 IQ 21 IIQ 21 IIIQ 21 Structure
Slide 11: Expanding offer, digital channels and Customer service
RETAIL We have been continuing to expand our offer, develop digital channels and improve CUSTOMERS Customer service Launch of the “Clean Air” offer Online insurance Launch of the loan offer with a subsidy from the National Fund for Environmental Protection and Water Travel and motor insurance availa
Slide 12: Increase in Customer satisfaction
RETAIL Building a lasting business relationship thanks to the increase in Customer satisfaction CUSTOMERS NPS distribution network (%) Relationship NPS (%) (Bank’s internal survey) +9 p.p. 88 90 NPS average for banks = 25* 86 81 82 35 33 36 32 28 IIIQ 20 IVQ 20 IQ 21 IIQ 21 IIIQ 21 IIIQ 20 IVQ 20 IQ
Slide 13: Sales in the Corporate Customer segment
CORPORATE Sales in the Corporate Customer segment CUSTOMERS Total overdraft facility granted to Small/Medium/Large Total overdraft facility granted to Micro Customers Customers (PLN billion) (PLN billion) -28% +18% -47% -3% 2,0 0,41 0,39 0,38 0,32 0,32 1,5 1,4 1,3 1,1 IIIQ 20 IVQ 20 IQ 21 IIQ 21 III
Slide 14: Strengthening relationships, Clients increase transaction volume
CORPORATE We strengthen relationships and our Clients increase transaction volume CUSTOMERS Number of Corporate Customers – all segments (K) Number of BankConnect Customers – Small/Medium/Large segments +5% +18% 247 973 243 245 909 239 873 851 235 822 IIIQ 20 IVQ 20 IQ 21 IIQ 21 IIIQ 21 IIIQ 20 IVQ
Slide 15: Participating in public programmes supporting entrepreneurs
CORPORATE We have been participating in public programmes and effectively supporting entrepreneurs CUSTOMERS Covering new sales with BGK guarantees – Micro segment * Covering new sales with BGK guarantees – Small segment* +4 p.p. +15 p.p. 99% 99% 98% 57% 98% 50% 53% 48% 33% 96% IIIQ 20 IVQ 20 IQ 21
Slide 16: Addressing climate-related challenges
We have been successfully addressing climate-related challenges Lottery! You can win an electric car Campaign promoting Clean Air Nissan Leaf + voucher to purchase Cash Loan We cooperate with: a home charger with assembly PLN 1.02 Start of the campaign: 18/10/2021 billion Prizes Balance as at the en
Slide 17: Financing thermomodernisation in the housing sector
CORPORATE Effectively addressing the climate change challenge – CUSTOMERS we finance thermomodernisation in the housing sector The effects of an implementation of the Regional Operational Programmes for the Dolnośląskie, Łódzkie, Małopolskie and Podlaskie voivodeships co-financed from public funds t
Slide 18: MasterCard z Plusem debit card
CORPORATE We have been introducing new, beneficial solutions – MasterCard z Plusem debit card CUSTOMERS Novelty in the offer COMPANY DEBIT CARD Z PLUSEM available from 23/09/2021 • For new and existing Customers from the micro, SME and large-sized companies segment • Distinguishing feature: addition
Slide 19: Developing remote channels and automated credit processes
CORPORATE We have been developing remote channels and making credit processes automated CUSTOMERS Remote support Automated decisions in the small business segment Number of applications submitted to the Product Centre (YTD) New sales in automatic decisions – Small segment (PLN million) +153% 96 561
Slide 20: Improving transaction indicators of Business Customers
CORPORATE We have been systematically improving the most important transaction indicators CUSTOMERS of Business Customers Number of transfers made in BusinessPro banking (million) Number of non-cash transactions with payment cards (million) +3% +15% 3,0 7,6 7,8 7,6 7,7 7,8 2,6 2,5 2,7 2,4 IIIIIIQ kw
Slide 21: Activities of the key companies of the Alior Bank Group
Activities of the key companies of the Alior Bank Group Alior Leasing Alior TFI IIIQ 21 saw Alior Leasing achieving sales of PLN 739 million IIIQ 21 saw Alior TFI sales slightly decreasing, and (17% more than in IIIQ 20). redemptions increasing, therefore net sales of investment funds managed by Ali
Slide 22: Brokerage House sustaining results
2021 has seen the Brokerage House sustaining the results achieved in the record-breaking 2020 Commissions of the Brokerage House (income) Commissions – brokerage account Initiatives and achievements [PLN million] [PLN million] • August saw us making available to Customers +6% +1% the new Alior 4 Tra
Slide 23: Credit risk
Credit risk 23
Slide 24: Gross structure of the loan portfolio
Gross structure of the loan portfolio – stable increase in the share of mortgage loans Loan portfolio in total (PLN million) Retail Segment (PLN million) Corporate Segment* (PLN million) +2% +5% -2% +1% +3% 0% 62 346 62 596 63 436 36 236 37 005 37 931 26 110 25 592 25 505 3 814 3 800 3 382 5 483 6 0
Slide 25: Decrease in cost of risk and improved loan portfolio quality
Decrease in the cost of risk and a perceptible improvement in the loan portfolio quality Impaired loans (PLN billion) NPL provisions coverage ratio* Cost of risk - CoR (QTD pattern) 6,00% 15,15% 11 Miliony 5,00% 14,48% 13,81% 10 4,00% 12,96% 12,75% 3,00% 9 1,86% 2,00% 8 55,18% 54,45% 54,87% 55,87% 5
Slide 26: Change in credit policy stabilised the cost of risk
The change in credit policy has brought tangible effects – stabilisation of the cost of risk at a lower level than from before the COVID-19 pandemic Risk costs – Alior Bank Group (cumulative) -0.82 p.p. -1.63 p.p. Due to the Bank’s activities in 2020 and 2021 regarding the credit 1800 3,24% portfoli
Slide 27: Improvement in the quality of the loan portfolio
Improvement in the quality of Alior Bank’s loan portfolio Following the periodic increase in DPD 30+ as a result of the COVID-19 situation, the Bank achieved a significant improvement in DPD ratios, which are now lower (better) than before the pandemic. PLN BILLION Retail Customer* Portfel Loan kred
Slide 28: Capital and liquidity surplus above regulatory minimum
Stable and secure position of the Bank: capital and liquidity surplus significantly above the regulatory minimum The levels of TIER I and TCR capital adequacy ratios as at the end of IIIQ 21 significantly exceed the regulatory minimum by: 498 bps. (2,373 PLN million) and 480 bps (PLN 2,291 million)
Slide 29: Financial results
Financial results 29
Slide 30: Income statement
Income statement PLN M IIIQ 2020 IIIQ 2021 % y/y y/y I-IIIQ 2020 I-IIIQ 2021 % y/y y/y Total Income 892,7 918,3 3% 25,6 2 634,0 2 702,3 3% 68,3 Net interest income 683,1 703,5 3% 20,4 2 182,0 2 040,4 -6% -141,6 Net fee and commission income 169,1 189,6 12% 20,5 458,9 550,7 20% 91,8 Other income 40,5
Slide 31: External environment affects net interest income
Demanding external environment continues to affect the level of net interest income Interest Income and Interest Cost (PLN million) Net Interest Margin and Cost of Financing* 3,71% 3,67% 3,77% -4% 3,63% 3,58% 070,0 -15% +4% 2 599 3 800 781 750 570,0 734 745 718 321 2 213 101 80 96 94 81 070,0 254 3
Slide 32: Improving net fee and commission income
Thanks to undertaking a multitude of initiatives, the Bank is gradually improving its NF&C income Net fee and commission income (PLN million) +12% +3% +20% 551 183 190 Payment and credit cards service 169 177 178 (net) 459 136 48 43 46 48 43 123 Other fee/provision cost and income (net) 72 25 28 13
Slide 33: Improving effectiveness despite cost pressure
Despite the overall intensifying pressure to increase costs, the Bank has been improving its effectiveness General administrative expenses, cumulative (PLN million) General administrative expenses, quarterly (PLN million) -7% -3% 1 284 +4% 408 418 394 1 191 379 136 24 380 92 63 14 23 15 229 61 174 1
Slide 34: Factors of change in net profit IIIQ 21 vs IIIQ 20
Factors of change in net profit in IIIQ 21 vs IIIQ 20 (PLN million) *Dividend income, result on financial assets measured at fair value through profit or loss and FX result, result on derecognition of financial assets and liabilities not measured at fair value 34 through profit or loss, net other op
Slide 35: Updated 'More than a Bank' strategy 2021-22
Pursuit of the updated “More than a Bank” strategy 2021 – 2022 2020 I-IIIQ 21 performance Target for 2022 Assets PLN 78.6 billion PLN 78.2 billion PLN 89 billion Business Number of Retail 4.2 million 4.1 million 4.5 million volumes Customers Number of Corporate 239K 247K 278K Customers ROE -4.7% 7.8
Slide 36: Why Alior Bank?
Why Alior Bank? ▪ Innovation, digitisation, high quality of services for Customers ▪ Improvement of performance by increasing income and reducing costs ▪ Improvement in the loan portfolio quality ▪ Growing share of mortgage loans in the portfolio ▪ Negligible share of CHF mortgage loans in the portf
Slide 37: Other information
Other information 37
Slide 38: Increases in GDP, inflation and interest rates
Increases in GDP, inflation and interest rates Recovery continued but at a slower pace NBP starts normalisation of monetary policy... GDP rate of growth (viable, %, y/y) and its decomposition (p.p.) Reference rate (%) 10,0 Poland, Hungary, Czech Republic, Romania 6,0 5,0 5,0 0,0 4,0 3,0 -5,0 2,0 -10
Slide 39: Poland continues to be the leader
Poland continues to be the leader… also in terms of inflation We have been making up for crisis losses relatively quickly Not only did inflation accelerated in Poland... 105 Poland’s GDP against selected Eurozone countries 7 CPI Inflation (4Q 2019 = 100, viable) 6 (%, y/y) 100 5 95 4 3 90 2 1 85 0 8
Slide 40: The outlook remains favourable, with more uncertainty
The outlook remains favourable, yet there is more uncertainty on the horizon Deferred consumption as a driver of economic rebound Inflationary pressure will stay longer... GDP rate of growth along with its main components CPI inflation and NBP base rate 15 5,0 4,7 4,5 10 5,4 4,7 5,0 5,4 4,0 3,4 3,4
Slide 41: Triumph in key rankings in 2021
Customers and the market appreciate services offered by Alior Bank. Triumph in key rankings in 2021 Telemarketer of the Year 2021 Institution of the Year Award Bankier.pl Award • Second place in the category “The best • Konto Jakże Osobiste was ranked first In the Telemarketer of the Year 2021 quali
Slide 42: Building the Sustainable Development Strategy
The Bank has been working intensively to build the Sustainable Development Strategy Alongside the work on the building of the Sustainable Development Strategy, initiatives to shape environmental and pro-social awareness were being implemented. Selected activities in numbers: 11,400 km was covered 57
Slide 43: Adjusting loan and deposit portfolio to market situation
The Bank adjusts its loan and deposit portfolio to the current market situation Structure of amounts due to Customers (PLN billion) Structure of net loans and advances to Customers (PLN billion) +2% +3% -1% +1% 65,9 66,9 68,6 67,8 67,0 1,7 2,0 1,4 1,6 56,0 56,2 56,3 57,0 57,8 3,1 4,3 4,0 3,5 3,1 3,8
Slide 44: New sale of loans
New sale of loans (PLN million) Sales in the Corporate Segment* -20% 2 729 -40% 2 432 2 120 2 069 865 691 1 818 1 823 621 657 1 654 1 619 1 363 603 1 455 1 281 414 666 541 391 436 562 1 864 1 741 1 499 1 412 1 240 1 152 1 078 1 220 890 927 893 IQ 19 IIQ 19 IIIQ 19 IVQ 19 IQ 20 IIQ 20 IIIQ 20 IVQ 20
Slide 45: Consolidated statement of financial standing
Consolidated statement of the financial standing of the Alior Bank Group (PLN million) IIIQ 20 IVQ 20 IQ 21 IIQ 21 IIIQ 21 % q/q q/q % y/y y/y Total assets 77 717,3 78 642,0 79 880,6 79 035,1 78 201,9 -1,1% -833,2 0,6% 484,6 Cash and cash equivalents 1 636,9 2 459,9 2 163,6 1 566,4 1 645,3 5,0% 78,9
Slide 46: Additional information
Additional information Employment (FTEs) Alior Bank’s branches -599 -7% -103 -109 -13% 8 031 -1% -29 7 878 7 754 768 -4% 490 7 541 725 710 473 7 432 694 665 224 479 225 481 199 235 476 200 200 195 222 51 194 211 51 51 51 51 7 317 7 180 7 040 6 838 6 745 518 474 459 448 420 IIIQ 20 IVQ 20 IQ 21 IIQ 2
Slide 47: Stock performance, shareholding structure, ratings
Alior Bank S.A. – stock performance, shareholding structure, ratings Alior Bank’s share price compared to WSE indices (comparable data for 12 months) Alior Bank share price: PLN 43.0 44 (data as at 30 September 2021) 39 Market capitalisation: PLN 5.6 billion 220.4% y/y Value of free float: PLN 2.9 b
Slide 48: Contact
Contact Contact data Investor Relations Department Address details e-mail: ir@alior.pl Alior Bank S.A. Investor Relations Department ul. Łopuszańska 38D 02-232 Warsaw More information Website Facebook fanpage Twitter profile Youtube channel 48
Slide 49: Reservation
Reservation This data has been prepared by Alior Bank S.A. (“Bank”, “Company”) solely for the Presentation purposes. 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 of the