Alpha Bank S.a. · ATHEX:ALPHA
Alpha Bank — Debt Investor Presentation (December 2010)
34 slides from Alpha Bank's debt investor presentation, December 2010
Slide 1: Debt Investor Presentation
Debt Debt Investor Investor Presentation Presentation December 2010 1
Slide 2: Contents
Contents Pages Greece – A challenging environment 3 Introducing Alpha Bank 7 Benchmark Capital Position 11 Strong Liquidity Profile 14 Asset Quality – Contained Formation 21 Pre-provision income level maintained 24 Appendix 29 This presentation contains forward-looking statements, which include comm
Slide 3: Greece – A challenging environment
Greece – A challenging environment
Slide 4: Consolidation Continues Amidst New Challenges
Consolidation Continues Amidst New Challenges Fiscal adjustment In Line With EU-IMF Program. • Budgetary adjustment in 2011, aiming at bringing down the primary deficit to 0.8% of GDP, paves the way to gaining market financing access. A sizable sustainable primary surplus is a prerequisite for stabi
Slide 5: Greece: Recovery Postponed As Fiscal Consolidation Deepens
Greece: Recovery Postponed As Fiscal Consolidation Deepens Recovery FDI Postponed & Exports (2007). . . Ελλάδα: Δαπάνες … But GDP Growthκαι HasΈσοδα Γενικής Bottomed Out. Κυβέρνησης 15% 140 6% Greece Euro Area 10% 4% 120 2.2% 2.0% 1.9% 1.9% 2.1% 2.0% 5% 2% 1.3% 1.1% 1.2% 100 2.1% 1.0% 0.5% 1.2% 0.0%
Slide 6: Regional Economic Outlook Points To Weak And Protracted Recovery
Regional Economic Outlook Points To Weak And Protracted Recovery GDP Growth Credit Expansion 4.1% 4.0% GDP Growth 3.0% 3.4% 9.9% 10.5% 1.7% 2.0% 2.5% 9.5% 1.8% 8.5% 1.9% 1.7% 1.5% 1.4% 1.6% 7.1% 6.5% 0.7% 0.2% 6.9% 8.2% 5.9% 5.0% -1.7% -1.0% 4.1% 4.0% 4.0% 5.2% -2.3% -2.2% 3.8% -3.0% 14 -4.0% 0.7% 3
Slide 7: Introducing Alpha Bank
ALPHA BANK ‘Introducing Alpha Bank
Slide 8: Alpha Bank at a Glance
Alpha Bank at a Glance Alpha Bank at a Glance Shareholder Structure 1 Founded in 1879 by the Costopoulos family, Founding Family Greek 9% Institutional which holds 9% of the Bank Investors 11% Consistency in management ensuring firm Foreign implementation of Alpha Bank’s strategy Insitutional In
Slide 9: A strong franchise with a regional footprint
A strong franchise with a regional footprint Geographical Footprint Market Shares (Greece)1 Greece Position Business 9M 10/ 9M 09 15.6% #1 Lending 9M 09 9M 10 (yoy) Branches 457 458 +1 Employees 8,273 8,124 -149 Mortgages 14.0% #2 Loans (€bn) 39.7 40.1 0.8% Deposits (€bn) 35.4 32.9 (7.1%) 16.3% Pre-
Slide 10: With a Defensive and Diversified Loan Structure
With a Defensive and Diversified Loan Structure Defensive Loan Portfolio Group Retail Loans Total Loans: € 52.0 bn (€ billion) By Geography Balkans 26.7 0.3% 26.8 12% Mortgages 14.2 3.1% 14.6 Cyprus 9% Consumer Credit Other 6.1 (2.8%) 6.0 Greece 2% 77% Small Business 6.4 (3.1%) 6.2 Loans Sep. 09 Sep
Slide 11: Benchmark Capital Position
ALPHA BANK Benchmark‘Capital Position
Slide 12: Capital – Core Tier I effectively equates our Tangible Common Equity
Capital – Core Tier I effectively equates our Tangible Common Equity High Quality Capital Total Assets/Tangible Equity 1 Total Statutory Capital € 5,771mn Preference Shares 26x € 940mn, 16.3% 23x 19x 17x Hybrid € 568mn, 9.8% Tangible Common Equity Goodwill/ €4.059mn, 70.3% Intangibles € 191mn, 3.3%
Slide 13: Core Tier I already Basel III compliant, even before mitigating actions
Core Tier I already Basel III compliant, even before mitigating actions Basel III Estimated Adjustments Core Tier I ratio (€ million) 8.9% 8.6% Estimated positive impact 4,470 0.0 4,309 (151) (10) (235) Basel II Regulatory Regulatory DTAs and Basel III AFS Reserve Shortfall of RWA Retained Core Tier
Slide 14: Strong Liquidity Profile
ALPHA BANK Strong Liquidity Profile
Slide 15: Resilient business model reflected in the balance sheet structure
Resilient business model reflected in the balance sheet structure Balance Sheet Structure Key Liability Ratios (€ billion) Dec. 09 Sep. 10 Customer Deposits / Total Assets 61.7% 58.8% Other Assets Other Liabilities 62.9(*) 62.9(*) Wholesale Debt / Total Debt 7.4% 5.1% 2.1 2.9 1.2 5.2 Equity 7.5 0.60
Slide 16: Adverse development of deposits reversed in Q3
Adverse development of deposits reversed in Q3 Alpha Bank vs Greek System Deposits Evolution of Deposits (€ billion) Total Greek Deposits: (11%) yoy (€ million) Alpha Bank: (7%) yoy +€40.1bn (€25.2bn ) 238.0 227.6 212.8 197.9 42,916 205 29 39,856 42.5 42.9 0.4 0.4 39.9 (1,860) (1,434) 34.7 6.3 0.5 0
Slide 17: Negligible Wholesale Funding Needs Portrayed in our Credit Spreads
Negligible Wholesale Funding Needs Portrayed in our Credit Spreads Net Wholesale Funds Evolution Maturity Profile (€ billion) Total amounts (€ billion) Total amounts 8.8 Outstanding Debt Maturing Debt 0.9 1.0 Hybrid Capital 2.1 0.6 0.8 0.8 6.3 0.6 Subordinated 3.9 0.9 0.8 4.3 0.6 0.9 1.9 2.7 0.6 Sen
Slide 18: Details of Government Guarantee Scheme
Details of Government Guarantee Scheme Customer Assets Government Stimulus Plan Participation (€ billion) €11.6bn Governm ent Bonds for Total 1.6 Refinancing w ith ECB Governm ent Plan € 68 bn Debt Issuance using 5.9 State Guarantee 11.64 Debt Issuance using 3.2 State Guarantee (2011) 0.9 Preference
Slide 19: Targeted deleveraging and stability in deposits allow for reduction in ECB utilisation
Targeted deleveraging and stability in deposits allow for reduction in ECB utilisation ECB ECBCollateral Funding Evolution – Collateral Pool Evolution (cash values) Greek Banks - ECB Utilisation Net Utilisation Available ECB Collateral Greek System +124% (€ billion) 3.1 1.1 3.5 2.3 Alpha Bank +28% 1
Slide 20: Moderate Exposure to Greek Govt Bonds
Moderate Exposure to Greek Govt Bonds Greek Government Bonds Breakdown Smallest Exposure in Securities Among Peer Group 1 (€ billion) Securities/Assets in % 22% 19% 18% 4.6 (0.6) 3.1 11% (0.9) Greek Govt Bonds AFS Govt Prefs Greek Govt Bonds Alpha Bank Peer 1 Peer 2 Peer 3 (HTM) (HTM) 1 Data for pee
Slide 21: Asset Quality – Contained Formation
Asset Quality – Contained Formation
Slide 22: Decelerating pace of NPL formation
Decelerating pace of NPL formation Group Loans in Arrears (IFRS 7: past due > 90 days) Comments +€289mn 7.7% +€332mn Reduction in net NPL formation by € 43mn in Q3 2010 +€365mn 6.9% 7.5% +€267mn 6.3% Adjusted +€238mn 5.7% for loan Loan deleveraging has an impact of 20bps on NPL 5.2% deleveraging
Slide 23: Best Provided and Defensive Loan Book
Best Provided and Defensive Loan Book % of total NPL ratio Total Coverage Cash Coverage (€ billion) Group Data 7.7% 133% 53% 52.0 4.0 2.1 6.0 0.4 0.3 Consumer Credit 11% 6.4% 76% 0.2 1.0 14.6 28% 7.1% 109% Mortgages 61% 8.2% 1.6 149% Business Loans 2.6 31.4 Loans NPLs Impairment Allowances Impairmen
Slide 24: Pre-provision income level maintained
Pre-provision income level maintained
Slide 25: Earnings Capacity – Loan Contribution to NII reaches new highs…
Earnings Capacity – Loan Contribution to NII reaches new highs… Loans Spreads - Group NII – Loans Contribution (bps) Balances at quarter end (€ million) +€65mn 369 375 346 352 315 330 290 251 263 489 498 €52.6bn 433 €53.0bn 457 €53.3bn 462 €53.3bn €52.0bn Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 09 Q4 09 Q1 10
Slide 26: …while deposit pricing is significantly affected by noises relating to the sovereign situation
…while deposit pricing is significantly affected by noises relating to the sovereign situation Deposit Spread Evolution NII - Deposits Contribution (bps) Balances at quarter end (€ million) (€67mn) 128 (1) 74 (22) (35) (59) (68) €16.0bn 33 €14.1bn 21 19 15 18 €25.9bn (34) (43) (54) €25.8bn (74) (86)
Slide 27: Pre-Provision Income Proves Resilient despite not supported by carry or trading income
Pre-Provision Income Proves Resilient despite not supported by carry or trading income Pre-Provision Income Build up (9M 10 vs 9M 09) Resilient Pre-Provision Income (excluding Trading) (€ million) (€ million) +4.9 1,006 1,055 68 932 282 275 265 272 (31) 15 836 263 (144) 235 233 236 (4) (148) 9M 09 N
Slide 28: Potential to exceed target of 2% cost reduction for the year
Potential to exceed target of 2% cost reduction for the year Total Operating Expenses Comments (€ million) y-o-y q-o-q (1.8%) (0.6%) 869.4 853.7 Cost reduction programme implementation on 284.2 282.6 track (2.7%) 640 622 206 207 Remarkable 6.5% G&A reduction in Greece 0.2% allows for a 3.8% redu
Slide 29: Appendix
ALPHA BANK 29
Slide 30: 9M 2010: Further Strengthening the Balance Sheet Amidst Continuing Challenging Environment
9M 2010: Further Strengthening the Balance Sheet Amidst Continuing Challenging Environment Key Developments 9M 10 9M 09 Change % (€ billion) Net Loans 49.9 51.0 (2.1%) Core Tier I Capital further strengthened to Deposits 39.9 41.9 (4.9%) almost 9%; Basel III impact estimated at just 32bps Accumula
Slide 31: Alpha Bank Group
Alpha Bank Group % Change (€ million) 9M 2010 9M 2009 9M 10/9M 09 Operating Income 1,689.9 1,801.3 (6.2%) Net Interest Income 1,372.6 1,304.4 5.2% Net fee and commission income 255.3 286.5 (10.9%) Income from Financial Operations 17.2 161.3 (89.3%) Other Income 44.9 49.2 (8.8%) Operating Expenses (8
Slide 32: Alpha Bank Group
Alpha Bank Group (€ million) Q3 2010 Q2 2010 Q1 2010 Q4 2009 Q3 2009 Q2 2009 Q1 2009 Operating Income 556.9 580.4 552.7 578.7 634.4 625.6 541.4 Net Interest Income 455.2 461.6 455.8 458.2 459.5 442.3 402.6 Net fee and commission income 83.3 89.0 83.0 92.3 95.3 98.4 92.8 Income from Financial Operati
Slide 33: Group Results by Business Unit
Group Results by Business Unit Investment Commercial & Asset Retail SE Europe Banking & Other Group Corporate Management (€ million) Treasury Jan-Sep Jan-Sep Jan-Sep Jan-Sep Jan-Sep Jan-Sep Jan-Sep 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 Operating Income 730.0 736.5 390
Slide 34: Contacts
Contacts Mr. Dimitrios Maroulis, Manager, Economic Analysis, +302103262829, dmaroulis@alpha.gr Mr. George Michalopoulos, Manager, Financial Markets - Planning & Trading, +30210 326 8200, gmichalopoulos@alpha.gr Mrs. Katerina Marmara, Assistant Manager, Financial Markets - Planning & Trading, +30210
Alpha Bank — Debt Investor Presentation (December 2010) on 6ix