Slide 1: Presentation of 2020 Financial Performance
Alior Bank SA Presentation of 2020 Financial Performance Warsaw, 26 February 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: Q4 2020 – very good financial performance despite demanding environment
Q4 2020 – despite demanding economic environment, Alior Bank once again generated very good financial performance Net profit at the level of PLN 120.3 M. • In Q4 2020 ROE was at the level of 7.4%, Outstanding sales of mortgage. • whereas C/I in Q4 20 was 41.7% vs. 43.8% In Q4 2020 it totalled PLN 86
Slide 5: Q4 2020 – further business development and improvement of financial performance
Q4 2020 – further business development and improvement of financial performance Despite a significant deterioration of the external environment, The growth of business volumes and the number of on-line customers allows the Bank generates stable financial performance. us to look optimistically at the
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 Q4 2020 the levels of TIER1 and TCR capital ratios exceed significantly the regulatory minima, respectively by: 505 pbs (2 196 M PLN) and by 535 pbs PLN (2,585) M TIER 1 Liquidity - LCR
Slide 7: Savings program to enhance operational efficiency during COVID-19
In order to enhance the Bank's operational efficiency during the COVID-19 pandemic, the Bank's Management Board is implementing a savings program aimed at reducing the level of operating costs of the Alior Bank S.A. Group Description of cost-efficiency initiatives: • Wage costs: optimization of orga
Slide 8: Why is Alior Bank more and more environment-friendly?
Green Alior Bank Customers Personnel Why is Alior Bank more and Compliance with legislation CSR more environment-friendly? Processes Tools Products • Care for sustainable growth • Curtailment of negative impact on environment and climate • Growing environmental awareness of the Bank customers and pe
Slide 9: Environment-friendly initiatives and ECO products
Alior Bank has already undertaken a number of environment-friendly initiatives Area Product Working jointly with business Consumer Total volume of ECO-products at Eco Installments partners to provide eco-products: the end of 2020 Finance Thermal efficiency Eco Installments approx. PLN 1.4 BN in impr
Slide 10: More partnerships for a dynamically growing world
We will launch more partnerships to respond to the needs of a dynamically growing world ▪ Project run jointly with the National Fund of Environmental Protection and Water Management under "Clean Air” Programme– Customer's application for a grant for partial repayment of bank loan principal designate
Slide 11: Triple victory in prestigious quality rankings in Q4 2020
Alior Bank's triple victory in prestigious quality rankings in Q4 2020 1st place 1st place 1st place Business friendly Bank according to Forbes Polska Magazine Traditional banking Remote banking In this year's edition of "Business Alior Bank became "Newsweek's Alior Bank in the "Newsweek's Friendly
Slide 12: Customers and market appreciate Alior Bank services
Customers and market appreciate Alior Bank services. Triumph in the top rankings in 2020. Invest Cuffs Award Golden Banker Currency Exchange Office of Alior Bank won Alior Bank wins first place in the "Golden Banker” the award called Invest Cuffs! Thanks to the votes of its customers, the Alior Bank
Slide 13: Operations
Operations 13
Slide 14: Retail: sales of 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) +78% y/y +11% y/y 69,0 0,96 67,2 0,87 64,8 0,67 62,4 63,2 0,49 0,47 IV4Q’19 kw. 19 I 1Q’20 kw. 20 II2Q’20 kw. 20 III3Q’20 kw. 20 IV4Q’20 kw. 20 IV4Q’19 kw
Slide 15: Record sales of mortgage loans, increase of market share
RETAIL Record sales of mortgage loans. Significant increase of the SoM index. CUSTOMERS Mortgage loan sales and Share of Market* 4,96% 6,94% 3 In 5002020, sales of mortgage loans 5,00% In Q4 2020, sales of mortgage 1 200 7,00% loans was up by 78% y/y was up by 64% y/y 3 000 1 000 5,32% 6,00% 4,00% 5
Slide 16: Building lasting customer relationships and digital channels
RETAIL Effective building of lasting customer relationships and the growing importance CUSTOMERS of digital channels No. of retail customers (M) Number of clients with regular inflows ('000) + 31 thous. +2% 976,7 977,3 • The decrease in the number of 4,30 4,19 4,23 Retail Clients in Q4 2020 is relat
Slide 17: Improvements in customer service and digital channels
RETAIL Improvements in customer service and development of digital channels CUSTOMERS City transport tickets and parking fees Motorways via Alior Mobile app. payable via Alior Mobile A new functionality via Alior Mobile app. A new functionality via Alior Mobile app. Payment of motorway tolls. Paymen
Slide 18: Significant increase of customer satisfaction index
RETAIL Significant increase of customer satisfaction index CUSTOMERS NPS distribution network Relationship NPS + 3 p.p. 82% 36% 80% 81% 35% 75% 76% 32% 29% 28% 28% IV4Q’19 kw. '19 I 1Q’20 kw. '20 II2Q’20 kw. '20 III 3Q’20 kw. '20 IV4Q’20 kw. '20 III3Q’19 kw. '19 IV4Q’19 kw. '19 I kw. '20 1Q’20 II 2Q
Slide 19: Business: sales of key products
BUSINESS Sales of Bank's key products CUSTOMERS Total credit limit granted to business customers (PLN BN) Micro-loans (in PLN bn) 2,37 +6% y/y -30% y/y 0,46 0,46 0,36 1,50 0,32 0,32 1,20 1,27 0,90 IV4Q’19 kw. '19 I1Q’20 kw.'20 II2Q’20 kw.'20 III3Q’20 kw.'20 IV4Q’20 kw.'20 IV4Q’19 kw. 19 I 1Q’20 kw.
Slide 20: Transformation of business customer base
BUSINESS Transformation of business customer base into more active and sustainable relationships CUSTOMERS No. of business customers in Small /Medium/Large No. ofcustomers of BankConnect* +7%** -3%** 1 079 1 000 1 014 32 410 32 035 940 837 29 105 28 814 28 617 IV4Q’19 kw. '19 1Q’20 I kw. '20 II 2Q’2
Slide 21: Micro segment: growth in customers and relationship ratio
SEGMENT MICRO Growth in the number of customers and improvement of relationship ratio MICRO No. of business customers No. of Micro segment customers paying Social in Micro segment ('000) Insurance contributions/making tax payments ('000) No. of instant transfers ('000) +40% +9% +16% 225 245 205 210
Slide 22: Participation in public schemes during the pandemic
BUSINESS Alior Bank participates in public schemes and supports businessmen during the pandemic CUSTOMERS • 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 an increa
Slide 23: Payment and value-added services for business customers
BUSINESS Pursuant to the adopted strategy for development of products for business customers, CUSTOMERS Alior Bank is developing its offer of payment services and value-added services, which deepen customer relations with the Bank Promotion at the Circle K petrol stations Online banking applications
Slide 24: Business Customer Digital Banking in 2020
BUSINESS Business Customer Digital Banking in 2020 CUSTOMERS The launch of the self service platform via BusinessPro electronic banking, that enables the customers to apply online for debit cards and auxiliary, deposit and payroll accounts and grant privileges to designated company employees. The Pr
Slide 25: Remote processes
BUSINESS Remote processes CUSTOMERS 6 3 1.5 100 thous. thous. thous. 37% % after-sales instructions documents signed documents signed micro accounts SMALL/MID/LARGE accepted via Internet using a qualified using the Autenti opened online advisors have banking signature platform purchased qualified si
Slide 26: 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 2020, Alior Leasing generated sales in the range of PLN • In Q4 2020 Alior TFI maintained high net sales of the 2.3bn, including PLN 684 M in Q4 2020 r. (up by 11% investment funds under its management, reaching
Slide 27: Brokerage House - record performance in investment products
Alior Bank Brokerage House - record performance in the investment product area Brokerage fees (income ) [M ] No. of brokerage accounts ['000] No. of new brokerage accounts Initiatives and achievements (+135% y/y) (+10% YTD) ['000] (+280% y/y) • A number of new investment functionalities in 55,6 84,2
Slide 28: Credit risk
Credit risk 28
Slide 29: 2020 was a challenge for the risk management area
2020 was a challenge for the risk management area In 2020, the Alior Bank's risk management activities focused on four key areas: Active assistance to the Bank's Managing credit risk models in a customers through the application of period of above-average uncertainty payment moratoria mechanism Dyna
Slide 30: Extensive support to customers through payment holidays
The Bank provided extensive support to customers in the form payment holidays in 2020 Alior Bank Retail Customer Business Customer Lease Group 68.5 thous. 5.7 thous. 16.7 thous. 90.9 thous. WK launched WK launched WK launched WK launched PLN 4.8 bn PLN 3.0 bn PLN 1.1 bn PLN 8.9 bn volume of WK launc
Slide 31: Business customers coping better in the pandemic
Business Customers (KB) are coping better and better in the times pandemic Low risk industries Medium risk industries High risk industries Low risk industries, resilient or gaining in Industries threatened by interrupted supply Industries severally hit by economic importance, such as: production, tr
Slide 32: Loan portfolio quality has not deteriorated in Covid environment
In the Covid environment, the quality of the loan portfolio has not deteriorated Retail Customer 35 3,5% 30 3,0% 2,55% 25 2,27% 2,5% 2,05% 20 1,68% 1,70% 1,73% 1,66% 2,0% 1,73% 1,58% 1,52% 1,46% 15 1,35% 1,5% 1,42% 10 1,0% [PLN bn] 5 -0.26 p.p. 0,5% 0 0,0% 2019-12-31 2020-01-31 2020-02-29 2020-03-31
Slide 33: Decrease in cost of risk and improved portfolio quality
Decrease in the cost of risk and a noticeable improvement in the quality of the loan portfolio Total loan portfolio, gross (PLN M) Retail customer portfolio (PLN M) Business customer portfolio* (PLN M) 36 751 34 492 26,801 25,711 3 900 11% 2 820 8% 61,294 62 462 5 194 19% 5 657 22% 790 3% 11 375 33%
Slide 34: Change in credit policy brings visible decline in allowances
Change in credit policy is beginning to have tangible results - a visible decline in the value of allowances for expected losses Cost of Risk - Alior Bank Group • A significant increase in the Cost of Risk (CoR) in Q2 2020, was followed by a decline to the levels slightly 5,94% below the long-term a
Slide 35: Model adjustments related to uncertain economic environment
Bank at the end of 2020 maintains model adjustments related to uncertain economic environment Macroeconomic scenarios for impairment estimation All COVID impact risks included in the based on market consensus classification of write-offs Change of GDP in real Scenario Probability Growing Probability
Slide 36: Improvement of the quality of new loan sales
Improvement of the quality of new loan sales Sales volume and quality of new cash loans (PLN M) 2 500 8,0% 1 942 2 025 2 009 2 060 7,0% 6,27% 5,21% 1 722 1 755 1 745 1 707 1 807 1 766 1 728 1 654 2 000 1 623 6,0% Loan amount granted 1 461 1 500 1 262 1 242 1 269 5,0% 976 4,0% Default rate MOB6 (6 4,
Slide 37: Financial performance
fa 5 a =n Al LAY il a . . = Financial performance
Slide 38: Profit and Loss Account
Profit and Loss Account PLN M Q4 2019 Q3 2020 Q4 2020 change % y/y change y/y 2019 2020 change % y/y change y/y Total income 803,8 892,7 911,4 13% 107,6 3 788,9 3 545,5 -6% -243,4 Interest income 747,7 683,1 666,7 -11% -80,9 3 184,3 2 848,7 -11% -335,6 Fee & charges income 162,9 169,1 177,0 9% 14,1
Slide 39: Net interest income and interest margin
Net interest income - further decline in financing costs, interest margin includes the fee refunds (the so called small CJEU) Interest net income (M PLN) Interest margin / Cost of Financing* 2019 2020 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 4,062 479 3,333 4.52% 3.91% 4.11% 4.34% 4.00% 3.71% 3.63% N
Slide 40: Fee income improved in H2 2020
Thanks to a number of initiatives, fee income improved in H2 2020 Fee and charges income YTD, y/y Net fee and charges income on quarterly basis Pozostałe Other feeskoszty cost prowizyjne 1,216 329 1,157 323 91 94 Koszty Fees prowizyjne cost related tozwiązane cards z 305 294 31 16 184 kartami 25 269
Slide 41: Operating expenses of Alior Bank Group
Operating expenses of Alior Bank Group Operating expenses on QTD basis (PLN M) Operating expenses on a quarterly basis (PLN M) C/I 43.0% 47.0% 43.8% 50.7% 49.9% 45.7% 41.7% +35 M +28 M +2% 1,665 8% y/y 1,630 157 160 482 248 288 89 395 408 380 352 24 24 61 23 Koszty BFG BGF costs 12 59 445 395 109 59
Slide 42: Thank you for your attention
Thank you for your attention. 42 Alior Bank S.A. Group | 28 February 2020 | Consolidated performance of the
Slide 43: Other information
Other information 43
Slide 44: Polish economy: GDP decline of 2.8%
The year in the Polish economy was with GDP decline by 2.8%, but... The recession is not as deep as it was Anti-crisis Shield supported the labour market expected GDP y/y growth rate with major components by year 8,0 Employment and wages in the enterprise sector and unemployment rate 6,0 10,0% 4,0 8
Slide 45: Poland against the background of Europe
... against the background of Europe it is one of the best results Annual decline in domestic GDP, small decline compared to EU Sales is one of the best in the region Real GDP growth rate in Q2 (%, y/y) Retail sales growth rate (%, y/y, wda) 0 15 -2 10 -4 -2,8 5 -3,8 -3,8 -6 -5,0 -4,9 0 -5,2 -6,4 -6
Slide 46: In 2021, the national economy will accelerate
In 2021, the national economy will accelerate Inflation will go back to the inflationary target of National Bank of Deferred consumption will drive economic rebound Poland (NBP) GDP y/y growth rate with major components y/y by year CPI y/y and MPC's interest rate by year 15 4 3,4 3,5 10 5,4 4,5 3 2,
Slide 47: Market position of Alior Bank Capital Group
Market position of Alior Bank Capital Group (in PLN) Balance sheet 78.6 bn 7 878 pers. (FTE) Headcount total 8th position in the market 6th position in the market 31.91% Equity 6.6 bn Branch offices 725 outlets* 9th position in the market 5th position in the market** 7.25% WSE Deposit 66.9 bn 7.12%
Slide 48: Additional information: headcount, branches, customers
Additional information Headcount* (FTEs) Alior Bank branch offices -491 -155 -5.9% y/y -18% 8,369 8,310 880 8,183 851 519 8031 7,878 801 529 498 768 227 490 212 207 725 224 220 473 205 224 225 60 199 60 200 51 51 51 7 624 7 557 7 465 7 317 7 180 608 584 545 518 474 IVQ4’19 kw.19 IQ1’20 kw.20 IIQ2’20
Slide 49: New sales of credits and loans
New sales of credits and loans (PLN M) Sales in the Business Customer Segment* 2,729 2,120 865 2,069 1,818 621 1,654 657 1,589 1,281 414 1,363 666 529 391 436 1 864 1 499 1 412 1 240 1 152 927 1 060 890 IQ1’19 kw.19 IIQ2’19 kw.19 Q3’19 III kw.19 IVQ4’19 kw.19 Q1’20 I kw.20 IIQ2’20 kw.20 IIIQ3’20 kw.
Slide 50: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (PLN M) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 chnge % q/q chnge q/q chnge % y/y chnge y/y Total assets 76 714,1 76 512,2 77 671,9 77 717,3 78 642,0 1,2% 924,7 2,5% 1 927,9 Cash assets and equivalents 1 379,1 1 960,9 1 128,5 1 636,9 2 459,9 50,3% 823,0 7
Slide 51: Quotations, shareholding structure, ratings
Alior Bank S.A. Group – quotations, shareholding structure, ratings Price of shares in Alior Bank: PLN 16.97 Alior Bank share price in 2020 at the background of WSE indices (comparable data) (30 Dec. 2020) 30 -1.4% y/y Capitalisation: PLN 2.2 billion Value of shares in free float: PLN 1.1 billion P/
Slide 52: Contact
Contact Should you have any questions or querries do not hesitate to send them at: relacje.inwestorskie@alior.pl 52
Slide 53: 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