Alpha Bank S.a. · ATHEX:ALPHA

Alpha Bank — 9M 2020 Earnings Presentation

57 slides from Alpha Bank's earnings presentation, Nov 25, 2020

1. Slide 1: Alpha Bank 9M 2020 Results

   Alpha Bank 9M 2020 Results Investor Presentation November 25, 2020

2. Slide 2: Disclaimer

   Disclaimer This presentation has been prepared and issued by Alpha Bank solely for informational purposes. For the purposes of this disclaimer, this presentation shall mean and include materials, including and together with any oral commentary or presentation and any question and answer session. By

3. Slide 3: Pages

   Pages • 9M 2020 Highlights 3 • Financial Performance Analysis 10 Alpha Bank • Macroeconomic Update 17 • Appendix  ESG 21  Asset Quality 24  Capital 30  Volumes 33  P&L 40 3

4. Slide 4: Alpha Bank strategic highlights – 9M 2020

   Alpha Bank strategic highlights – 9M 2020  Improved Core PPI performance at €657mn (+4% y-o-y) in 9M 2020 Financial  Continued focus on cost discipline, with total Opex1 at €788mn (-4% y-o-y) in 9M 20 vs €824mn in 9M 19 performance  Impairment losses on loans in 9M 2020 of €737mn materially affec

5. Slide 5: Strong commitment to support the Greek economy with new credit

   Strong commitment to support the Greek economy with new credit year to date of €4.6bn in 2020; 9M 20 Disbursements up c.70% vs. last year 1 New financing to Individuals and businesses YTD Businesses disbursements – per sector Euro bn Entertainment 4% Construction Agriculture 4% 3% Real Estate Indivi

6. Slide 6: Proactive management reduces risks for the post-moratoria period

   Proactive management along with detailed segmentation reduce risks for the post-moratoria period  Gefyra program update: Alpha Bank – c.44k applications amounting to Active Moratoria on PEs €2.7bn out of which €1.1bn is currently under moratoria Greece, Euro bn  Proactive management with RM contac

7. Slide 7: 93% of monetary transactions via digital networks in Q3 20

   93% of monetary transactions via digital networks in Q3 20; further expansion of our digital platform in 2021 Banking app downloads YoY growth 1 Alpha Bank’s mobile banking app has the Mobile Banking Δ% YoY 2 1 Q1 2020 Q2 2020 Q3 2020 highest engagement rate among peers at 40% 22.5% 17.6% 19.8% 750,

8. Slide 8: Galaxy: Preferred bidder selected with signing targeted for year end

   Galaxy: Preferred bidder selected with signing targeted for year end; CEPAL carve out completion imminent The Bank has received preliminary credit ratings Carve-out of for the senior notes of all Dec 2020 Q1 2021 Bank’s NPE three SPVs Management Applications submitted under unit HAPS relate to the p

9. Slide 9: Alpha Bank's NPE portfolio significantly improved post Galaxy

   Alpha Bank’s NPE portfolio significantly improved post Galaxy Asset Quality improved with a better NPE portfolio mix vs. peers Greece, Euro bn NPE ratio1 43% 24% NPE>90dpd ratio1 29% 13% 37.7 18.3 26%  54% of remaining NPEs also 32% classified as NPE>90dpd vs NPE<90dpd 8.9 c.70% as of Sep-20 and c.

10. Slide 10: Pages

    Pages • 9M 2020 Highlights 3 • Financial Performance Analysis 10 Alpha Bank • Macroeconomic Update 17 • Appendix  ESG 21  Asset Quality 24  Capital 30  Volumes 33  P&L 40 10

11. Slide 11: 9M 20 Financial Performance overview

    9M 20 Financial Performance overview Core PPI up by +4% y-o-y… …supported by Resilient NII… …due to lower funding costs …higher Fee Income.. EUR mn EUR mn bps EUR mn +2% 892 -0.6% 450 200 Loan (21) 1,160 400 395 247 252 +4% 1,154 Spreads 392 150 256 400 657 Time 100 634 350 Deposit 35 +10% 892 -2% r

12. Slide 12: 9M 20 Group P&L and Balance Sheet

    9M 20 Group P&L and Balance Sheet Profit & Loss 9M 9M yoy % Q3 Q2 qoq % Balance Sheet YtD 2020 2019 2020 2020 change 30/09/20 30/06/20 31/12/19 (EUR mn) change (EUR bn) change Net Interest Income (NII) 1,154 1,160 (0.6%) 382 391 (2.3%) Assets 68.6 68.6 63.5 5.1 Net fee and commission Income 252 247

13. Slide 13: Total CAD ratio at 18.3% with capital buffer at €3.4bn

    Total CAD ratio at 18.3% with capital buffer now standing at €3.4bn Not including an Total Capital ratio evolution expected benefit of c.30 CET1 €7.9bn EUR bn 8.5 bps, pro forma for EBA recommendation on 8.4 17.2% 7.1 software intangibles 18.3% 10bps 9bps 18.4% 18.3% (3)bps €3.4bn Buffer 15.8% (13)b

14. Slide 14: Group customer deposit inflows and participation in TLTRO III improve liquidity

    Group customer deposit inflows and participation in TLTRO III improve further our liquidity metrics Deposits evolution ECB balances Group, EUR bn EUR bn +€0.8bn % over Total 5% 6% 17% 17% 40.9 0.1 0.7 41.7 Assets - 11.9 11.9 ECB Collateral Abroad 5.9 5.9 pledged  Credit claims 3.9  GGBs & T-bills

15. Slide 15: Negative gross organic formation of €1bn in Greece

    Negative gross organic formation of €1bn in the last 12 months in Greece Negative gross formation in Greece Gross formation (Organic) - Retail EUR bn EUR mn Gross NPE (0.3) (94) (0.5) (0.4) (0.1) (0.0) (124) formation (208) EUR bn (339) (476) Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Entries 0.60 0.49 0.47 0.39

16. Slide 16: Underlying Cost of Risk at 1.5% in 9M 2020

    Underlying Cost of Risk at 1.5% in 9M 2020 Q3 20 Group impairment losses 9M 20 Group impairment losses EUR mn EUR mn CoR 2.5% 2.5% (over net 307 loans) 262 245 261 750 737 120 114 169 287 53 Covid-19 1.5% 187 Underlying CoR Underlying 147 116 450 CoR Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 9M 19 9M 20 Q3 20 G

17. Slide 17: Pages

    Pages • 9M 2020 Highlights 3 • Financial Performance Analysis 10 Alpha Bank • Macroeconomic Update 17 • Appendix  ESG 21  Asset Quality 24  Capital 30  Volumes 33  P&L 40 17

18. Slide 18: Considerable impact from national lockdown on 2020 GDP

    Considerable impact from national lockdown on 2020 GDP in line with rest of EU and milder rebound in 2021 amid second wave Following an unprecedented recession in Q2, growth is Business turnover bounced back after the first lockdown expected to resume in 2021 but recovery to remain but unevenly acro

19. Slide 19: Safeguarding employment amid a perfect storm

    Safeguarding employment amid a perfect storm Short-term Indices: Different Aspects of the Recessionary Swift policy response supports employment despite the Shock deterioration in employment expectations Index Jan. 2019=100 Index Jan. 2019=100 35 85 130 300 COVID-19 Effect 20 83 110 200 5 90 81 70 1

20. Slide 20: Ensuring Liquidity for Businesses and EU funding Support

    Ensuring Liquidity for Businesses and EU funding Support Strong Credit rebound on the back of state guaranties Narrowing the Gap between Credit and Deposits 10 8 bn € 200 6 190 4 180 170 2 160 0 150 -2 140 130 -4 120 Jan-17 Jul-17 Jul-18 Jul-19 Mar-17 Jan-18 Mar-18 Jan-19 Mar-19 Jan-20 Jul-20 Mar-20

21. Slide 21: Pages

    Pages • 9M 2020 Highlights 3 • Financial Performance Analysis 10 Alpha Bank • Macroeconomic Update 17 • Appendix  ESG 21  Asset Quality 24  Capital 30  Volumes 33  P&L 40 21

22. Slide 22: ESG - Responsible Banking

    ESG - Responsible Banking United Nations Sustainable Development Goals with significant contribution from Alpha Bank ▪ Alpha Bank actively participating in the global effort to build a sustainable future for the economy and the planet, signed the six Principles for Responsible Banking (PRB). ▪ For t

23. Slide 23: Alpha Bank Assessment based on ESG Criteria

    Alpha Bank Assessment based on Environmental, Social and Governance (ESG) Criteria Alpha Bank demonstrates a positive trend in ESG scores and evaluations by international analysts throughout the years as result of actions and measures taken regarding ESG issues based on international best practices.

24. Slide 24: Pages

    Pages • 9M 2020 Highlights 3 • Financial Performance Analysis 10 Alpha Bank • Macroeconomic Update 17 • Appendix  ESG 21  Asset Quality 24  Capital 30  Volumes 33  P&L 40 24

25. Slide 25: Gross organic NPE formation in Greece per segment

    Gross organic NPE formation in Greece per segment Gross formation (Organic) - Wholesale Gross formation (Organic) - Retail EUR mn EUR mn 34 50 (11) (40) (51) (94) (124) (208) (339) (476) Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Gross formation (Organic) - SBL Gross formation (Orga

26. Slide 26: Auctions and repossession activity evolution

    Auctions and repossession activity evolution Auctioned properties (Conducted) per quarter 9M 20 successfully auctioned properties: Breakdown by 1.782 highest bidder No conducted auctions in Q2 due to Covid-19 3rd parties 789 775 525 27% Alpha Bank 412 374 40% 42% 41% 0 40% 31% 36% 0% Q1 2019 Q2 2019

27. Slide 27: Detailed overview of asset quality by portfolio – Greece

    Detailed overview of Alpha Bank’s asset quality by portfolio – Greece (€ bn) Wholesale SBL Mortgages Consumer Total Gross loans 18.6 4.9 14.0 5.0 42.5 (-) Accumulated Provisions (2.8) (1.6) (1.9) (1.7) (8.0) Net loans 15.8 3.3 12.1 3.3 34.5 NPLs 2.9 2.7 4.7 2.1 12.5 NPL ratio 15.8% 55.8% 33.7% 42.5%

28. Slide 28: Detailed overview of asset quality by portfolio – Group

    Detailed overview of Alpha Bank’s asset quality by portfolio – Group (€ bn) Wholesale SBL Mortgages Consumer Total Gross loans 21.6 5.0 17.1 5.5 49.1 (-) Accumulated Provisions (3.4) (1.6) (2.6) (1.9) (9.4) Net loans 18.2 3.4 14.5 3.7 39.7 NPLs 3.7 2.8 5.9 2.3 14.7 NPL ratio 17.1% 55.9% 34.8% 41.8%

29. Slide 29: Successful track record of NPE transactions

    Successful track record of NPE transactions; NPE loan disposals of c.€4.5bn on-balance sheet GBV corresponding to total claims of c.€8bn Size Completion Transaction details “Corporate Loan Sale” €82mn Q4 2017  Syndicated non-performing corporate loan Portfolio of non-performing unsecured consumer a

30. Slide 30: Pages

    Pages • 9M 2020 Highlights 3 • Financial Performance Analysis 10 Alpha Bank • Macroeconomic Update 17 • Appendix  ESG 21  Asset Quality 24  Capital 30  Volumes 33  P&L 40 30

31. Slide 31: Group RWAs and Regulatory Capital

    Group RWAs and Regulatory Capital Group Risk Weighted Assets IFRS 9 and B3 DTA amortisation EUR bn EUR mn (€0.2bn) 46.3 0.1 46.1 Amortisation 2020 2021 2022 2023 2024 3.6 (0.3) 3.6 IFRS 9 -239 -319 -398 -398 1.5 1.6 41.2 DTA Basel 3 -39 -39 -39 -39 -39 40.9 Jun-20 Credit Market Sep-20 Credit Market

32. Slide 32: Regulatory Capital and Capital Requirements

    Regulatory Capital and Capital Requirements Equity to regulatory capital bridge Overall Capital Requirements EUR mn % 11.5% Tangible book value / Tangible Assets 14.0% 0.5% O-S II 2.5% 11.0% Composed by 8,415 7,909 525 8,438 CCB Composed CET 1 (1.7%) 7,834 1,069 3 7,912 3.0% 3.0% AT1 (0.55%) entirel

33. Slide 33: Pages

    Pages • 9M 2020 Highlights 3 • Financial Performance Analysis 10 Alpha Bank • Macroeconomic Update 17 • Appendix  ESG 21  Asset Quality 24  Capital 30  Volumes 33  P&L 40 33

34. Slide 34: Balance sheet composition

    Balance sheet composition Asset split Liabilities and Equity split EUR bn EUR bn 68.6 68.6 68.6 68.6 Cash 5.7 Cash 5.1 ECB 11.9 11.9 ECB Due from Banks 2.9 Due from Banks 2.8 Due to Banks 2.2 Due to Banks 1.3 Securities 9.9 Securities 10.5 excl. ECB excl. ECB Time 14.4 Time 15.0 17.1 deposits deposi

35. Slide 35: Business Volumes

    Business Volumes % Sep 2020/ (€ mn) Sep 2020 Jun 2020 Mar 2020 Dec 2019 Sep 2019 Sep 2019 Group Gross Loans 49,148 48,756 49,095 48,731 49,147 0.0% Mortgages 17,073 17,181 17,294 17,474 17,709 (3.6%) Consumer Loans 4,208 4,207 4,218 4,258 4,327 (2.8%) Credit Cards 1,309 1,297 1,310 1,415 1,351 (3.1%

36. Slide 36: Breakdown of loans portfolio – September 2020

    Breakdown of loans portfolio – September 2020 Total Group loans – per segment Group Loans portfolio structure EUR bn SBLs EUR bn 10% Consumer loans Agriculture Energy 9% Mortgages 1% 2% Credit Cards 35% Media & Real Estate 3% Communication 4% €49.1bn 1% Construction Other 5% 5% Tourism Wholesale loa

37. Slide 37: Revenue to be supported by increase in new financing

    Revenue to be supported by increase in new financing of €4.2bn in 9M 2020 vs. € 2.5bn in 9M 2019 New disbursements – per category 9M 2020 Business disbursements – per sector EUR mn Q1 Q2 Q3 9M Q4 FY Q1 Q2 Q3 9M 19 19 19 19 19 19 20 20 20 20 Construction Entertainment Individuals 48 70 75 193 119 312

38. Slide 38: Deposits flow per quarter

    Deposits flow per quarter Alpha Bank deposits evolution in Greece Deposits breakdown – September 2020 EUR bn Q4: Q1: Q2: Q3: €0.8bn €1.6bn (€1.1bn) €0.8bn 1.4 0.2 36.1 0.9 35.0 1.3 35.8 Time 33.7 0.4 0.4 34.5 Δ Time 32% (2.0) (0.5) Δ Core Core 68% Sep-19 Core Time Dec-19 Core Time Mar-20 Core Time J

39. Slide 39: Wealth management evolution

    Wealth management evolution Alpha Private Bank balances Asset Management balances EUR mn EUR mn 4,423 4,539 4,262 4,282 2,282 1,164 1,167 2,123 61 997 993 1,997 66 1,962 51 50 1,548 1,420 1,300 1,278 2,918 2,934 2,779 2,764 637 673 633 647 341 437 486 525 Sep-19 Dec-19 Jun-20 Sep-20 Sep-19 Dec-19 Ju

40. Slide 40: Pages

    Pages • 9M 2020 Highlights 3 • Financial Performance Analysis 10 Alpha Bank • Macroeconomic Update 17 • Appendix  ESG 21  Asset Quality 24  Capital 30  Volumes 33  P&L 40 40

41. Slide 41: Net Interest Income

    Net Interest Income NII qoq evolution EUR mn NII decomposition EUR mn - €9mn 390.7 383 387 381 391 382 5.1 4.3 381.8 47 50 51 54 49 -9.5 -3.0 -5.9 397 399 390 391 386 NII Loans Deposits Funding Bonds Days effect NII (50) (52) (48) (47) (51) Q2 20 & Other Q3 20 (11) (10) (11) (8) (3) Q3 19 Q4 19 Q1 2

42. Slide 42: Net Fee and Commission income

    Net Fee and Commission income Net Fee & Commission Income evolution yoy Net Fee & Commission Income evolution qoq EUR mn EUR mn +2% +10% 247 2 2 3 2 252 3 2 85 6 8 6 (4) 77 2 (1) (1) (1) 0 43 48 2 15 15 198 195 68 60 9M 19 Cards Loans Other Bancassurance Asset IB & 9M 20 Q2 20 Cards Loans Other Banc

43. Slide 43: Loan and deposit spreads

    Loan and deposit spreads Net loan balances & spreads Deposit mix & cost evolution EUR bn EUR bn, bps 402 402 400 395 (49) (50) (47) (45) (47) 392 % Total 39.6 40.4 41.9 40.9 41.7 39.5 39.3 39.8 39.4 39.8 End of 16.8 17.0 17.1 15.0 14.4 35% quarter balances 22.8 23.4 24.8 25.8 27.3 65% Q3 19 Q4 19 Q1

44. Slide 44: Recurring Operating Expenses

    Recurring Operating Expenses Recurring OPEX evolution yoy Recurring OPEX evolution qoq EUR mn EUR mn (€23mn) -3% €10mn +4% 791 8 768 253 8 1 1 264 Depreciation 107 (12) 115 (20) 39 & amortization 38 Staff costs 341 322 108 107 General 343 331 108 116 expenses 1 9M 19 General Staff D&A 9M 201 Q2 20 G

45. Slide 45: Operating Expenses

    Operating Expenses EUR mn 9M 19 9M 20 yoy % Recurring OPEX evolution EUR mn Staff costs (341.4) (321.7) (5.8%) 284 265 253 264 General Administrative 251 Depreciation & (342.5) (330.9) (3.4%) 37 expenses 35 39 amortisation 38 38 Depreciation and 130 General (107.2) (115.1) 7.4% 118 116 amortisation

46. Slide 46: SEE Operations

    SEE Operations 1 EUR mn Δ% Δ% Δ% Δ% Sep-20 Cyprus yoy Romania yoy Albania yoy Total SEE yoy Deposits 2,145 (3.1%) 2,612 5.4% 510 (2.3%) 5,267 1.0% Gross Loans 3,354 (9.6%) 2,654 0.6% 279 (6.9%) 6,287 (5.4%) Mortgages 1,801 (6.2%) 1,219 5.6% 75 4.6% 3,094 (1.6%) Consumer Credit 234 (2.3%) 228 (4.9%)

47. Slide 47: Alpha Bank Group

    Alpha Bank Group qoq% yoy % (€ mn) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 change change Net interest income 381.8 390.7 381.2 387.1 383.2 (2.3%) (0.4%) Net fee and commission income 84.8 77.5 89.2 93.1 95.6 9.5% (11.2%) Income from financial operations 41.9 128.6 85.7 121.1 79.9 … … Other Income 7.

48. Slide 48: Group Results by Business Unit

    Group Results by Business Unit Investment Asset Commercial & Retail SE Europe Banking & Other Group Corporate Management (€ mn) Treasury Jan-Sep Jan-Sep Jan-Sep Jan-Sep Jan-Sep Jan-Sep Jan-Sep 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 Operating Income 578.6 603.3 461.0 48

49. Slide 49: Results: Retail Business Unit

    Results: Retail Business Unit (€ mn) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Operating Income 195.4 193.6 189.6 198.7 203.0 Net Interest Income 159.0 164.8 163.0 164.7 164.8 Net fee and Commission Income 31.5 27.3 24.0 32.2 35.9 Trading & Other 4.9 1.5 2.6 1.7 2.3 Operating Expenses (141.7) (138.6)

50. Slide 50: Results: Commercial & Corporate Business Unit

    Results: Commercial & Corporate Business Unit (€ mn) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Operating Income 149.4 158.4 153.2 119.6 166.0 Net Interest Income 127.4 133.5 127.4 129.2 128.7 Net fee and Commission Income 28.0 24.1 27.1 32.4 35.0 Trading & Other (6.0) 0.8 (1.3) (42.0) 2.2 Operating Ex

51. Slide 51: Results: Asset Management Business Unit

    Results: Asset Management Business Unit (€ mn) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Operating Income 11.9 14.0 20.0 19.5 18.1 Net Interest Income 3.7 4.1 3.2 3.9 3.6 Net fee and Commission Income 12.0 10.2 14.9 14.5 12.5 Trading & Other (3.8) (0.2) 1.9 1.1 2.0 Operating Expenses (9.9) (8.4) (9.0)

52. Slide 52: Results: Investment Banking & Treasury Business Unit

    Results: Investment Banking & Treasury Business Unit (€ mn) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Operating Income 77.8 174.1 137.7 196.5 96.5 Net Interest Income 40.9 38.9 35.3 35.1 33.1 Net fee and Commission Income 4.6 7.9 14.5 5.3 4.5 Trading & Other 32.3 127.3 87.9 156.1 58.9 Operating Expens

53. Slide 53: Results: SE Europe Business Unit

    Results: SE Europe Business Unit (€ mn) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Operating Income 63.9 60.7 65.4 66.6 67.2 Net Interest Income 50.3 49.3 52.0 52.9 53.7 Net fee and Commission Income 8.8 8.0 8.7 8.6 8.0 Trading & Other 4.7 3.5 4.7 5.1 5.5 Operating Expenses (52.7) (51.8) (59.4) (59.7)

54. Slide 54: Results: Other Business Unit

    Results: Other Business Unit (€ mn) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Operating Income 17.2 (1.6) 0.2 6.5 14.4 Net Interest Income 0.3 0.2 0.2 1.3 (0.8) Net fee and Commission Income (0.0) (0.1) (0.0) (0.0) (0.2) Trading & Other 16.9 (1.7) (0.0) 5.2 15.4 Operating Expenses (13.7) (14.4) (9.6)

55. Slide 55: Glossary (1/2)

    Glossary (1/2) APM Definitions Relevance of the metric Reference number Abbreviation Accumulated Provisions and FV The item corresponds to (i) "the total amount of provision for credit risk that the Group has recognized and derive from contracts with Standard banking 1 LLR adjustments customers", as

56. Slide 56: Glossary (2/2)

    Glossary (2/2) Relevance of the Reference APM Definitions Abbreviation metric number Non Performing Exposure Total Accumulated Provisions and FV adjustment plus the value of the NPE collateral divided by NPEs at the end of the reported period. NPE Total coverage equals the NPE Total Asset quality me

57. Slide 57: Alpha Bank Contacts

    Alpha Bank Contacts Lazaros Papagaryfallou General Manager – CFO +30 210 326 2261 cfo-office@alpha.gr Dimitrios Kostopoulos Elena Katopodi Stella Traka Manager Deputy Manager Senior Investor Relations Division Investor Relations Division Investor Relations Officer +30 210 326 2271 +30 210 326 2272 +

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