Alpha Bank S.a. · ATHEX:ALPHA
Alpha Bank — Q4 2023 Earnings Presentation
79 slides from Alpha Bank's earnings presentation, Mar 7, 2024
Slide 1: Alpha Bank Q4 2023 Results
Alpha Bank Q4 2023 Results Investor presentation 7th March 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: Agenda
Pages • Business Update 3 • Outlook 14 Alpha Bank • Financial Performance Analysis 24 • Appendix ▪ Macroeconomic Update 42 ▪ ESG 44 ▪ P&L 51 ▪ Volumes 55 ▪ Asset Quality 66 ▪ Capital 71 3
Slide 4: The trusted relationship bank of Greece
The trusted relationship bank of Greece Our Identity and Strengths… …are reflected in our customer proposition Privately owned since inception Clients perceive Alpha Bank as more reliable, stable, humane and accessible with a mindset to deliver shareholder value and inspire We are renowned for quali
Slide 5: During 2023 we have accelerated our momentum
During 2023 we have accelerated our momentum 2023 Performance Key financial targets as per Investor Day Profitability Return on Tangible Equity1 Return on Tangible Equity1 • +41% y/y net interest income 12.9% FY 2023; 14.3% in Q4 >12% in 2025 • +8% y/y fees like-for-like • 39.5% cost-income ratio, -
Slide 6: Our upsized guidance for 2023 has been exceeded
Our upsized guidance for 2023 has been exceeded Initial guidance November guidance Actual3 2022 2023 2023 2023 Total Revenues (€ bn) 2.0 > 2.0 c. 2.3 2.3 🗸 Cost-Income Ratio 55% < 49% c 43% 42% 🗸 Cost of Risk 76bps c. 85bps c. 80bps 81bps 🗸 ROTE1 7.5% > 9% > 11.5% 12.9% 🗸 EPS2 (€) 0.18 > 0.23 >…
Slide 7: Work on our six strategic priorities is yielding recurring results
Work on our six strategic priorities is yielding recurring results 1 2 3 4 5 6 Boost digital and focus Revamp service Consolidate Improve return on Maintain the resilience Leverage on high-value model to increase leadership in deployed capital in of our balance ESG for segments in Retail penetration
Slide 8: Boost digital and focus on high-value segments in Retail
1 Boost digital and focus on high-value segments in Retail Core revenues (€ mn)1 Cost-Income Ratio (%) +41% y/y c.(26p.p.) 770 77% KEY ACHIEVEMENTS 547 51% New service model to >80% of branch network Launched “Priority” RM services with >400 RMs FY 22 FY 23 FY 22 FY 23 and >500K clients MyAlpha Advi
Slide 9: Revamp service model to increase penetration in Wealth
2 Revamp service model to increase penetration in Wealth Asset Management Balances (€ bn) Total Revenues (€ mn) +49% y/y +16% y/y 16 106 91 KEY ACHIEVEMENTS 11 Top for mutual fund net inflows: 30% market share 8 new investment products driving +€1.3 billion in FY 22 FY 23 FY 22 FY 23 mutual funds (+
Slide 10: Consolidate leadership in Wholesale
3 Consolidate leadership in Wholesale Net Loans (€ bn)4 Total Revenues (€ mn)1 +7% +19% y/y 18 19 880 739 KEY ACHIEVEMENTS Specialized coverage for Corporates through redesigned industry expert teams. FY 22 FY 23 FY 22 FY 23 New digital products: Trade Finance payments in FX, loan/deposit e-statemen
Slide 11: Improve return on deployed capital in International
4 Improve return on deployed capital in International Total Revenues (€ mn) Cost-Income Ratio (%) +83% y/y c.(33p.p.) 152 KEY ACHIEVEMENTS 78% 83 45% Capital release and return uplift through upfront realization of value in Romania via Unicredit deal. FY 22 FY 23 FY 22 FY 23 +10pp increase of multif
Slide 12: Maintain the resilience of our balance sheet
5 Maintain the resilience of our balance sheet CoR4 (bps) NPE Ratio and Coverage (%) 41% 47% Coverage 76 81 7.8% KEY ACHIEVEMENTS 5.8% CoR4 in line with business plan targets NPE ratio Outperformance on NPE ratio and coverage FY 22 FY 23 FY 22 FY 23 Prudent lending pricing policy with allocated liqu
Slide 13: Leverage ESG for value creation
6 Leverage ESG for value creation Support an Environmentally Foster healthy economies and Ensure robust & transparent sustainable economy Societal progress Governance €0.8bn in sustainable disbursements in 2023 62% Women employees at Group level 38.5% female representation in Non-Executive Key Direc
Slide 14: Agenda
Pages • Business Update 3 • Outlook 14 Alpha Bank • Financial Performance Analysis 24 • Appendix ▪ Macroeconomic Update 42 ▪ ESG 44 ▪ P&L 51 ▪ Volumes 55 ▪ Asset Quality 66 ▪ Capital 71 14
Slide 15: 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 16: Top line on upward trajectory post 2024 despite falling rates
BUSINESS PLAN NET INTEREST INCOME Top line on upward trajectory post 2024 despite falling rates Net Interest Income evolution 2023-2026 Key Assumptions & Sensitivities (Group, € bn) FY 23 FY 24E FY 25E FY 26E Average Euribor 3M 3.4% 3.5% 2.6% 2.4% FY 23 1.653 Sensitivity (25bp) c. €18mn Group net Lo
Slide 17: Deposit re-pricing a key driver
BUSINESS PLAN NET INTEREST INCOME Deposit re-pricing a key driver 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-
Slide 18: Significant increase in securities portfolio contribution
BUSINESS PLAN NET INTEREST INCOME Significant increase in securities portfolio contribution Securities portfolio size and yield evolution (Greece, € bn) Key Drivers Fixed rate assets as % of 43% 70% non-maturing deposits 2.7% 2.8% Yield pick-up in 2024 largely locked in 2.7% on the back of 2023 addi
Slide 19: Further diversification of revenue streams
BUSINESS PLAN FEES Further diversification of revenue streams Net Fee & Commission Income evolution 2023-2026 Key Drivers (Group, € bn) % of revenues A Stable credit related fees retaining strong 2023 levels FY 23 0.37 17% of Wholesale gross disbursements; further growth of LGs/LCs2 Business credit
Slide 20: With the bulk of cost efficiencies captured, focus shifts to positive jaws
BUSINESS PLAN COSTS With the bulk of cost efficiencies captured, focus shifts to positive jaws Cost-Income evolution (Group, %) Cost evolution drivers CAGR 2023 – 2026 c.1.4% c.3.0% c.1.4% 39% Tailwinds Lower resolution Reduced contributions to the Single fund contribution Resolution Fund Completed
Slide 21: European average NPE ratio well within reach
BUSINESS PLAN ASSET QUALITY European average NPE ratio well within reach NPE Stock, cost of risk and coverage evolution (Group, € bn) FY 23 FY 24E FY 25E FY 26E Structural NPE reduction NPE ratio 6% c. 5% c. 4% < 4% and target CoR2 levels, leading coverage to 60% in 2026: Cost of Risk 82bps c.75bps
Slide 22: Our plan will increase regulatory capital ratios, exceeding targets
BUSINESS PLAN CAPITAL Our plan will increase regulatory capital ratios, exceeding targets FL CET1 Ratio post accrual1,2 (Group, %) >17.5% 7.7% c.16.5% >1.6% c.16% 14.3% >4.5% c.3% c.3.5% (2.6%) FL CET1 Ratio 1.3% Management (c3%) Including Target (13%) c20bp impact from Basel >20.5% >17.5% 14.3% 202
Slide 23: Significant shareholder value creation over the coming years
BUSINESS PLAN SUMMARY Significant shareholder value creation over the coming years FY 23 FY 24E FY 25E FY 26E EPS1 0.32 c.0.31 c.0.33 > 0.35 c. 5x PE4 (2024-2026 average) Assumed payout2 38bp c300bp > 25% of Market Cap4 assumed distribution over 2024-2026 ROTE3 12.9% c.13% c.13.5% >14% c. 0.6x PTBV4
Slide 24: Agenda
Pages • Business Update 3 • Outlook 14 Alpha Bank • Financial Performance Analysis 24 • Appendix ▪ Macroeconomic Update 42 ▪ ESG 44 ▪ P&L 51 ▪ Volumes 55 ▪ Asset Quality 66 ▪ Capital 71 24
Slide 25: Q4 2023 Group Profit & Loss
Q4 2023 Group Profit & Loss Profit & Loss Profit & Loss (Romania in Discontinued ops) yoy % q/q % (Romania not in Discontinued ops) yoy % q/q % FY 23 FY 22 Q4 23 Q3 23 FY 23 FY 22 Q4 23 Q3 23 change change change change (€ mn) (€ mn) Net Interest Income 1,653 1,174 41% 439 435 1% Net Interest Income
Slide 26: Q4 2023 Group Balance Sheet
Q4 2023 Group Balance Sheet Dec-23 Dec-23 q/q Tangible Book Value Balance Sheet After Before (before Sep-23 Dec-22 Group, € mn (€ bn) Romania Romania Romania HFS HFS HFS) +12% 6.4 Assets 73.7 73.7 74.4 78.0 (0.7) Securities 16.1 17.4 16.2 13.5 1.2 5.8 Cash & Cash Balances 4.2 4.9 7.1 12.9 (2.2) Net
Slide 27: Net interest income and fees higher on rates and activity
Net interest income and fees higher on rates and activity Net Interest Income Romania Net fee and commission income Group, € mn Merchant Acquiring Group, € mn 1,823 394 401 170 22 27 0 29 1,315 141 1,653 345 373 1,174 FY 22 FY 23 FY 22 FY 23 Recurring operating expenses Cost of Risk1 Group, € mn €mn
Slide 28: Slow increase in deposit beta; bond portfolio contribution picking up
Slow increase in deposit beta; bond portfolio contribution picking up Interest Income / Interest Expense breakdown1 Performing loan spreads Group, € mn Greece, % +1% 3.41% 483 3.30% Individuals 477 3.21% Business 445 3.12% 3.20% 3.03% 433 3.12% 3.09% 3.02% 396 2.94% Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 534
Slide 29: Fees up 8% y/y; growth across all products and segments
Fees up 8% y/y; growth across all products and segments € mn € mn Group Segments 394 401 394 401 22 +8% 27 29 16 124 104 128 135 61 56 21 22 125 136 101 121 77 83 73 74 16 1 19 0 10 10 FY 22 FY 23 FY 22 FY 23 Merchant Acquiring Asset management Other Romania Wholesale International Other Large ticke
Slide 30: Recurring costs benefitting from lower resolution fund costs
Recurring costs benefitting from lower resolution fund costs € mn € mn Group Segments 969 969 18 939 939 (1%) 112 377 122 388 425 396 418 378 166 162 49 47 65 67 157 173 92 80 61 67 FY 22 FY 23 FY 22 FY 23 Merchant acquiring General Administrative Romania Wholesale International Other expenses Retai
Slide 31: Performing loans up 5% y/y driven by Wholesale
Performing loans up 5% y/y driven by Wholesale Performing loan book expansion Net credit expansion Group, € bn Greece, € bn 1.1 +5% 0.1 +3% 0.2 +1% +1% 0.1 Disbursements (1%) 32.9 0.1 31.4 31.5 31.8 0.1 0.1 31.1 0.1 3.2 0.1 2.7 4.1 4.2 4.3 2.2 4.2 1.3 1.9 1.6 1.7 1 7.6 7.6 7.6 7.6 7.6 Repayments (1.
Slide 32: Deposits +3% y/y with mix shift slower than expected
Deposits +3% y/y with mix shift slower than expected AuMs up strongly across all product categories Deposits evolution Mix towards Time deposits Group, € bn Greece, € bn +3% +0.4% 0.4 0.4 52.5 45.8 46.1 45.9 52.3 45.0 44.5 50.8 2% 1% 1% (0.4) (0.2) 3.5 Romania State 1% 2% 6.2 International 5.7 3.1 T
Slide 33: Retail: Uplift in profitability as deposit beta remains subdued
R E TA I L Uplift in profitability as deposit beta remains subdued Key figures REVENUES / VOLUMES PROFITABILITY (in €mm) FY 23 FY 22 ∆change, % Net loans 9,145 9,090 1% + €223mn + €1.1bn Revenues y/y Deposits y/y Deposits 33,723 32,620 3% Total revenues 785 562 40% + €211mn + €1.8bn Profits3 y/y Dis
Slide 34: Wholesale: Volumes affected by repayments; Profitability expands
WHOLESALE Volumes affected by repayments; Profitability expands Key figures REVENUES / VOLUMES PROFITABILITY (in €mm) FY 23 FY 22 ∆change, % Net loans 24,397 23,966 2% + €130mn (€0.3bn) Revenues y/y Deposits y/y Deposits 9,334 9,647 (3%) Total revenues 880 749 17% + €75mn €1.2bn4 Profits3 y/y Net Lo
Slide 35: Wealth: Growth in AuMs; Recurring revenues replace trading
W E A LT H Growth in AuMs; Recurring revenues replace trading Key figures REVENUES / VOLUMES PROFITABILITY (in €mm) FY 23 FY 22 ∆change, % Assets under €15mn + €1.2bn 15,749 10,579 49% Revenues y/y Mutual Funds y/y Management Total revenues 106 91 16% + €13mn + €3.9bn Recurring Operating Profits3 y/
Slide 36: International: Loan growth at 7%; top line benefiting from excess liquidity
I N T E R N AT I O N A L Loan growth at 7%; top line benefiting from excess liquidity Key figures REVENUES / VOLUMES PROFITABILITY (in €mm) FY 23 FY 22 ∆change, % Net loans4 4,465 4,169 7% + €69mn €0.9bn Revenues y/y Deposits y/y Deposits4 6,628 5,742 15% Total revenues 152 83 83% + €69mn €0.3bn Pro
Slide 37: NPAs and Other operations
NPAs and Other operations Non Performing Assets (NPAs) Other (in €mm) FY 23 FY 22 ∆change, % (in €mm) FY 23 FY 22 ∆change, % Net loans 1,593 2,363 (33%) Assets 19,030 23,537 (19%) Assets 3,602 5,303 (32%) TBV 1,603 824 94% Total revenues 90 117 (23%) Total revenues 95 161 (41%) Recurring Operating R
Slide 38: Stable organic reduction on the back of cures
Stable organic reduction on the back of cures Mortgage transaction brings NPEs <6% with coverage higher NPE (0.1) (0.3) Cost of Risk formation bps (over net loans) Greece, € bn 93 96 16 75 76 79 13 14 13 13 Mainly single case 71 70 55 55 55 0.10 1 1.20 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 0.77 Inflows Serv
Slide 39: Organic capital generation at 2.2% in 2023; CET1 at 15.9%
Organic capital generation at 2.2% in 2023; CET1 at 15.9% including upcoming transactions Fully Loaded CET1 y/y % 0.9% 0.5% 2.4% 0.0% (0.4%) (0.7%) 15.9% 2.2% Organic Capital Generation 14.7% 14.3% 11.9% 2022 Organic PnL DTA DTC RWAs Other capital Transactions 2023 Dec-23 post Dec-23 elements divide
Slide 40: Quarterly evolution in Capital
Quarterly evolution in Capital Fully Loaded CET1 q/q % 0.6% 0.2% 0.1% 0.3% (0.1%) (0.5%) 0.3% Organic Capital Generation 14.4% 14.3% 15.9% 13.7% Sep-23 Q4 23 DTA DTC RWAs Other capital Transactions Dec-23 Dec-23 post Dec-23 organic PnL elements dividend accrual pro forma 1 Fully Loaded RWAs q/q % (€
Slide 41: Ahead of regulatory requirements with capital buffers expanding
Ahead of regulatory requirements with capital buffers expanding 25.4% 22.4% 20.7% 17.3% 15.9% 14.7% 0.8% 11.9% 2.0% 25.4% 0.6% 22.4% CCyB 9.9% 1.5% 20.7% 0.2% P2R 1.7% 17.3% 1.0% 15.9% O-S II 2.5% CCB Pillar 1 4.5% 1 1 1 2023 CET1 FY 2023 CET1 2023 T1 Required FY 2023 T1 2023 OCR FY 2023 CAD 2024 no
Slide 42: Agenda
Pages • Business Update 3 • Outlook 14 Alpha Bank • Financial Performance Analysis 24 • Appendix ▪ Macroeconomic Update 42 ▪ ESG 44 ▪ P&L 51 ▪ Volumes 55 ▪ Asset Quality 66 ▪ Capital 71 42
Slide 43: Macroeconomic Outlook in Greece
Macroeconomic Outlook in Greece Real GDP outpacing euro area average Unemployment continues to fall Headline inflation on a downward trend 6 14 10 9 5 12 8 10 7 4 6 8 3 5 6 4 2 4 3 2 1 2 1 0 0 0 2022 2023e 2024f 2022 2023 2024f 2022 2023 2024f Greece Euro area Greece Euro area Greece Euro area Solid
Slide 44: Agenda
Pages • Business Update 3 • Outlook 14 Alpha Bank • Financial Performance Analysis 24 • Appendix ▪ Macroeconomic Update 42 ▪ ESG 44 ▪ P&L 51 ▪ Volumes 55 ▪ Asset Quality 66 ▪ Capital 71 44
Slide 45: Aligning our Sustainability Strategy with Stakeholder expectations
We continue to align our Sustainability Strategy with the expectations of our Stakeholders.. We place high value on actively listening to our stakeholders Effective engagement and feedback process Investors Regulators Customers Employees Society Align financial impacts with Paris Integrate ESG crite
Slide 46: Advancing steadily on our Sustainability Journey
…advancing steadily on our Sustainability Journey… 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 Business Plan achiev
Slide 47: Consistently meeting our Sustainability Milestones
… consistently meeting 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 societ
Slide 48: 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 49: Progressing towards our Sustainability Goals
… progressing towards 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 6
Slide 50: Our efforts are already reflected in our Ratings. Memberships
…and 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 sustainab
Slide 51: Agenda
Pages • Business Update 3 • Outlook 14 Alpha Bank • Financial Performance Analysis 24 • Appendix ▪ Macroeconomic Update 42 ▪ ESG 44 ▪ P&L 51 ▪ Volumes 55 ▪ Asset Quality 66 ▪ Capital 71 51
Slide 52: Loan and deposit spreads
Loan and deposit spreads Net loan balances & spreads Deposit mix & cost evolution € bn bps, € bn 281 315 335 222 130 322 350 % Total 315 309 299 50.8 50.2 51.8 52.3 48.4 291 300 10.4 13.0 14.8 15.5 13.0 27% 38.7 38.2 38.7 38.8 End of 250 40.4 37.2 37.0 36.8 35.5 73% 36.2 quarter balances Q4’22 Q1’ 2
Slide 53: Operating Expenses
Operating Expenses Group, € mn Q4 23 Q3 23 qoq % Recurring Operating Expenses evolution €mn Staff costs (83.7) (85.0) 0.7% 226 206 211 207 General Administrative 194 (68.9) (80.9) (35.4%) 83 expenses 81 83 85 Staff costs 84 Depreciation and (41.8) (40.7) 14.6% General amortisation 107 Administrative
Slide 54: Alpha Bank Group
Alpha Bank Group qoq% yoy% (€ mn) Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 change change Net Interest Income 438.7 434.7 396.6 383.5 351.5 0.9% 24.8% Net fee and commission income 99.2 100.9 90.8 81.6 90.6 (1.6%) 9.5% Income from financial operations 20.6 (13.0) 24.3 7.6 (13.3) … … Other income 9.7 1
Slide 55: Agenda
Pages • Business Update 3 • Outlook 14 Alpha Bank • Financial Performance Analysis 24 • Appendix ▪ Macroeconomic Update 42 ▪ ESG 44 ▪ P&L 51 ▪ Volumes 55 ▪ Asset Quality 66 ▪ Capital 71 55
Slide 56: Balance sheet composition
Balance sheet composition Asset split Liabilities and Equity split € bn € bn 74.4 73.7 74.4 73.7 Cash 7.1 Cash 4.2 5.0 ECB 5.0 ECB Due from Banks 1.7 2.8 Due to Banks 2.1 Due to Banks Due from Banks 1.5 Securities 16.1 13.0 Time Deposits Securities 16.2 15.5 Time Deposits 52.3 48.5 35.5 Core Deposit
Slide 57: New disbursements in Q4 2023
New disbursements in Q4 2023 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 Beginning of 24.8 25.8 26.7 27.4 27.3 26.9 27.3 27.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 period 21 21 21 21 22 22 22 22 23 23 23 23 Disbursements 2
Slide 58: Breakdown of loans portfolio – December 2023
Breakdown of loans portfolio – December 2023 Total Group loans – per segment Group Loans portfolio structure1 € bn € bn Agriculture Administrative and Consumer loans Small Business Loans 1% support service activities 3% 6% Households 1% Credit Cards Mortgages 26% Construction 3% 20% 2% Real Estate O
Slide 59: Securities portfolio breakdown
Securities portfolio breakdown Securities portfolio breakdown Group, Book value, Dec-23, € bn ▪ The “Other/ECB eligible” bonds of €7.7bn is broken down to the following T-bills Mutual Funds & Equities categories: 0.9 0.2 o/w 13.6bn • €4.1bn other sovereign bonds HQLAs • €0.6bn bonds issued by supran
Slide 60: Securities portfolio evolution
Securities portfolio evolution Portfolios evolution FY 2023 New investments Group, Book value € bn Group % of total 12% 10% 11% 14% 14% 14% 17% 20% 21% 21% 22% assets €15.6bn €15.9bn Other €15.0bn €14.3bn 15% Mod. Duration €13.1bn c.3Y €10.4bn €9.9bn €8.7bn ECB eligible / 28% 58% 88% Other HQLAs GGB
Slide 61: Deposits flow per quarter
Deposits flow per quarter Alpha Bank deposits evolution in Greece Deposits breakdown – December 2023 Greece, € bn Q1: Q2: Q3: Q4: (€0.5bn) €1.4bn €0.2bn (€0.7bn)1 Time 45.0 1.5 45.8 0.5 46.1 45.4 26% 2.5 44.5 (0.3) (0.3) (0.4) (0.1) (3.1) Δ Core Δ Time 74% Core Dec-22 Core Time Mar-23 Core Time Jun-
Slide 62: ECB Balances and Liquidity metrics
ECB Balances and Liquidity metrics ECB balances Group LCR & LDR Group, € bn % % over 17% 12% 7% 7% 7% 188% 191% Total 183% Assets 161% 163% 13.0 ECB Collateral pledged ▪ Credit claims LCR ▪ GGBs & T-bills LDR ▪ Other bonds 9.0 76% 76% 75% 74% 75% 13.5 TLTRO 5.0 5.0 5.0 13.1 Commercial 12.3 Surplus 1
Slide 63: Wealth management
Wealth management Asset Management balances Private Banking Group, € bn Group, € bn 15.7 7.6 7.1 7.2 12.7 6.9 12.7 5.3 6.5 11.7 1.9 2.0 1.9 10.6 1.9 4.7 4.8 2.1 4.4 2.8 1.9 4.0 1.8 1.7 1.8 2.2 2.5 1.7 2.1 1.9 1.8 1.4 1.4 1.6 6.8 1.0 4.4 4.9 4.7 4.0 1.7 1.8 2.0 1.9 2.0 0.7 0.7 0.8 0.8 0.8 Dec-22 Mar-
Slide 64: Business Volumes
Business Volumes (€ mn) Dec 2023 Sep 2023 Jun 2023 Mar 2023 Dec 2022 % YoY Group Gross Loans 37,072 39,883 39,787 39,327 39,922 (7.1%) Mortgages 7,335 9,132 9,198 9,285 9,356 (21.6%) Consumer Loans 1,253 1,514 1,553 1,564 1,617 (22.5%) Credit Cards 959 1,029 1,015 1,004 1,048 (8.5%) Small Business L
Slide 65: Digital acceleration to build on a good transactional starting base
Digital acceleration to build on a good transactional starting base Digital KPIs Active Users (in m.)1 1 Acquisition +6.4% 1.52 1.57 1.58 1.61 1.63 1.64 1.68 1.33 1.36 1.41 1.46 1.47 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 2 Usage 97% 54% 68% Transaction Individual Cl
Slide 66: Agenda
Pages • Business Update 3 • Outlook 14 Alpha Bank • Financial Performance Analysis 24 • Appendix ▪ Macroeconomic Update 42 ▪ ESG 44 ▪ P&L 51 ▪ Volumes 55 ▪ Asset Quality 66 ▪ Capital 71 66
Slide 67: 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 1 17 70 (52) (70) (84) (186) (147) (192) (155) (284) (353) (254) (461) (994) 2018 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4 2018 2019 2020
Slide 68: Auctions and repossession activity evolution
Auctions and repossession activity evolution ▪ During 12m 2023, the Bank continued with its disinvestment strategy through Auctioned properties (Conducted) per quarter the completion of €52mn REO sales in Greece, €140mn in Cyprus (including 3.871 Project Sky) and €7,8mn in SEE. Sales in Greece inclu
Slide 69: Asset quality by portfolio - Greece
Detailed overview of Alpha Bank’s asset quality by portfolio - Greece (€ bn) Wholesale SBL Mortgages Consumer Total Gross loans 24.8 2.1 6.7 2.1 35.7 (-) Accumulated Provisions (0.3) (0.2) (0.2) (0.2) (0.9) Net loans 24.5 1.9 6.5 1.9 34.8 NPLs 0.2 0.3 0.3 0.2 1.1 NPL ratio 0.8% 15.4% 4.9% 9.2% 3.0%
Slide 70: Asset quality by portfolio - Group
Detailed overview of Alpha Bank’s asset quality by portfolio - Group (€ bn) Wholesale SBL Mortgages Consumer Total Gross loans 25.4 2.1 7.3 2.2 37.1 (-) Accumulated Provisions (0.3) (0.2) (0.3) (0.2) (1.0) Net loans 25.1 1.9 7.1 2.0 36.1 NPLs 0.2 0.3 0.402 0.2 1.1 NPL ratio 0.8% 15.4% 5.5% 9.2% 3.1%
Slide 71: Agenda
Pages • Business Update 3 • Outlook 14 Alpha Bank • Financial Performance Analysis 24 • Appendix ▪ Macroeconomic Update 42 ▪ ESG 44 ▪ P&L 51 ▪ Volumes 55 ▪ Asset Quality 66 ▪ Capital 71 71
Slide 72: Fully loaded Regulatory Capital
Fully loaded Regulatory Capital Equity to fully loaded regulatory capital bridge € mn 8.8% Tangible book value / Tangible Assets 6,905 6,438 (467) 1,000 6,006 400 5,006 4,606 (1,729) (103) Ordinary Equity Intangibles Tangible DTA deduction Other CET1 AT1 & Hybrids Tier 1 Lower Tier II Total CAD Book
Slide 73: Group RWAs and Regulatory Capital
Group RWAs and Regulatory Capital Group Risk Weighted Assets – Fully Loaded Credit Risk Weights per portfolio € bn % (€0.56bn) 32.8 0.0 32.2 100% 0.3 3.1 (0.8) 0.2 0.4 3.3 48% 50% 29.3 28.5 Performing Net NPE Total Loan Portfolio Sep-23 Credit Market Operational Dec-23 RWA Density Credit Market Oper
Slide 74: Further progress towards meeting MREL Requirements
Further progress towards meeting MREL Requirements +2.90% ▪ Further progress towards final MREL targets in a sustainable fashion Surplus +0.50% Surplus ▪ No subordinated MREL requirement €0.6bn Shortfall ▪ Expect Alpha Bank to continue to be a regular issuer in the debt capital markets 27.29% 25.4%
Slide 75: 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 76: 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 77: 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 78: 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 79: 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