Alior Bank Sa · GPW:ALR
Alior Bank Sa — Q3 2015 Earnings Presentation
36 slides from Alior Bank Sa's earnings presentation, Nov 5, 2015
Slide 1: Q3 2015 results presentation
ALIOR BANK S.A. Q3 2015 results presentation November 5, 2015 1
Slide 2: Agenda
AGENDA • Highlights • Operational Performance • T-Mobile update • Outlook • Appendix 2
Slide 3: Highlights
HIGHLIGHTS Solid progress over quarter Retained best in class NIM performance • NIM of 4,5% Capital and liquidity position supports growth • CET1 at 10,3% • L/D ratio at 93,5% Asset quality maintained • CoR of 2,3% • NPLs comfortably below market averages Meritum merger concluded as of Oct
Slide 4: Board appointments
BOARD APPOINTMENTS Barbara Smalska (formerly BCG and PZU) Joined Alior Board to lead M&A processes and synergies implementation between Alior and PZU. Soon teams on both sides will commence cooperation – details to be announced by year end. Małgorzata Bartler (formerly PLAY, Żywiec, Shell) Joine
Slide 5: Meritum merger update
MERITUM MERGER UPDATE Merger with Meritum Bank Operational merger concluded on Oct 26th, Our integration with Meritum – the fastest on the Polish market Integration costs will amount to PLN 36 m, 2015 synergies of PLN 36 m for 2015 on track (PLN 23 m for Q3’15 YTD) and will neutralize inte
Slide 6: Agenda
AGENDA • Highlights • Operational Performance • T-Mobile update • Outlook • Appendix 6
Slide 7: Key financials
KEY FINANCIALS Q3'15 Q3'14 (A/B)-1 (D/F)-1 Q3'15 YTD M PLN Q3'15 Q2'15 Q3'14 YTD YTD (%) (%) Meritum impact A B C D E F G H Net interest income 1 104 905 22 387 374 324 20 195 Net fee and commissions 252 253 0 89 70 85 5 5 Trading result & other 239 216 11 74 81 81 -8 17 Operating income 1 595 1 373
Slide 8: Loan book development
LOAN BOOK DEVELOPMENT Loan book split in PLN m Alior comparable Alior + Meritum +29% +16% 29 389 Other business 26 381 121 (inc. 1 Meritum) 25 391 505 Factoring 120 4 917 22 776 134 505 (incl. 8 Investment 521 Meritum) loans 207 4 910 43% 557 4 660 7 065 3 888 45% 45% Working (incl. 796 Capital 45%
Slide 9: Deposit base development
DEPOSIT BASE DEVELOPMENT L/D = 93,5% in PLN m Alior comparable Alior + Meritum L/D=79% Retail +46% Deposits Loans 65% 57% +33% 20 314 18 430 16 558 11 987 Term, own 13 878 banking sec., 10 722 (incl. 1 265 other 9 052 Meritum) Current 7 234 16 781 14 578 Loans 8 327 6 645 7 505 7 708 (incl. 618 Meri
Slide 10: Credit risk overview
CREDIT RISK OVERVIEW NPL total (%) Alior Alior+Meritum sale of receivables portfolio amounting to PLN 663 m in Q2’15 Alior Alior+Meritum 12,8 13,2 10,8 Market avg.* 9,8 9,7 9,8 9,5 9,8 9,1 8,9 8,9 8,5 10,6 11,4 Alior+Meritum 3,3 Alior 2,4 2,2 2,2 2,4 2,2 2,2 Q1'15 Q2'15 Q3'15 Q1'15 Q2'15 Q3'15 Q1'15
Slide 11: Net interest margin
NET INTEREST MARGIN Alior NIM development (YTD) Market Alior comparable Alior + Meritum average 4,6% 4,5% 4,5% 4,3% 4,1% 4,0% 2,7% Q1'15 1H'15 Q3'15 Q1'15 1H'15 Q3'15 Q3'15 Market average calculated as average of NIM for the following banks: (Pekao, PKOBP, mBank, Bank Handlowy. Getin Noble – Q2’15 a
Slide 12: Fees and commissions
FEES AND COMMISSIONS Alior + Alior comparable Meritum 96 93 Net F&C 85 85 89 71 F&C income 138 145 135 135 134 123 fees related to C/A, 57 59 70 75 64 loans, transfers 76 43 39 34 25 26 bancassurance 9 payment and credit 21 23 24 22 23 20 cards servicing 12 14 16 17 19 19 brokerage fees Q3'14 Q4'14
Slide 13: Capital position allows for continuous profitable growth
CAPITAL POSITION ALLOWS FOR CONTINUOUS PROFITABLE GROWTH YTD Alior comparable Alior + Meritum 12,4% 11,6% 10,8% 11,5% 10,0% 10,2% 1,1% 1,2% 1,1% 1,0% 1,0% 1,1% Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q3'15 ROE ROA Alior comparable Alior + Meritum 13,8% 13,0% 12,8% 12,8% 12,7% 12,0% 11,2% 10,4% 10,2% 10,3% Q3'
Slide 14: Strict cost discipline maintained
STRICT COST DISCIPLINE MAINTAINED YTD, in PLN m Q3’15 C/I cumulatively = 49,1% Alior+ Alior comparable Meritum +14,5% +2% 73 783 12 684 698 Q3'14 Q3'15 Integration Meritum costs Q3'15 costs Integration costs in 3Q’15: PLN 12 m cumulatively (Q3’15 Capex YTD: PLN 5 m) 14
Slide 15: Customer base
CUSTOMER BASE Customer acquisition -10 +35 +103 +363 2 964 2 939 2 929 2 473 2 576 295 289 290 122 123 121 120 121 2 454 2 520 2 520 2 554 2 352 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Retail Corporate Meritum Retail client split by channel Q3’14 Q4’14 Q1’15 Q2’15 Q3’15 Branches 1 579 1 595 1 590 1 580 1 605
Slide 16: Branch optimization on track
BRANCH OPTIMIZATION ON TRACK Alior maintains one of the most extensive footprints 859 836 831 771 754 720 221 Alior Express 211 211 100 153 429 438 Agencies 411 428 414 411 408 292 230 199 97 50 325 Branches 195 208 209 210 211 209 210 149 2009 2010 2011 2012 2013 2014 Q1'15 Q2'15 Q3'15 Alior Meritu
Slide 17: Agenda
AGENDA • Highlights • Operational Performance • T-Mobile update • Outlook • Appendix 17
Slide 18: Strong T-Mobile partnership in Poland
STRONG T-MOBILE PARTNERSHIP IN POLAND EFFECTIVELY CAPTURING PROFITABLE GROWTH • 235 ths. customers acquired since launch in May’14 • Phone financing project launching in August’15 Continuous - total PLN 6,7M volume of credit limit and 7,6k strong customer customers acquired acquisition • New acquisi
Slide 19: Extension of alliance with Deutsche Telekom Group
EXTENSION OF ALIOR BANK STRATEGIC ALLIANCE WITH DEUTSCHE TELEKOM GROUP Agreement with strong partner to enter high potential CEE market • over 6 m clients of Telekom Romania MC • one of largest economies in our region, high growth potential for banking services, dynamic growth of smartphones (28%, w
Slide 20: Agenda
AGENDA • Highlights • Operational Performance • T-Mobile update • Outlook • Appendix 20
Slide 21: Going forward: 2015 outlook including Meritum
GOING FORWARD 2015 Outlook including Meritum 2015 consensus of PLN 369 m* (increase from 353 in Q1’15) NIM ~4,6% (previously 4,7%) C/I below 48% CoR ~2,4% Loan growth 2015 - PLN 4 billion net *based on the analysts forecasts published post Q2’15 results announcement DB – September 3; Barclays – Sept
Slide 22: Agenda
AGENDA • Highlights • Operational Performance • T-Mobile update • Outlook • Appendix 22
Slide 23: Consumer finance performance
CONSUMER FINANCE PERFORMANCE Cross-sell volumes impacted by competition Instalment loans average monthly volumes (PLN m; YTD) 12’14 01’15 02’15 03’15 04’15 05’15 06’15 07’15 08’15 09’15 920 924 916 910 905 888 883 874 872 912 +3% cross-sell average monthly volumes (PLN m; YTD) 12’14 01’15 02’15 03’1
Slide 24: White label business capabilities confirmed - Tesco cooperation
WHITE LABEL BUSINESS CAPABILITIES CONFIRMED – COOPERATION WITH TESCO TO BE CONTINUED THE SITUATION OF THE PROJECT • The contract for long term partnership with Tesco Polska has been signed PROJECT PERFORMANCE • Current Loan Portfolio: 110 m PLN • Cumulative Cash Loan sales 45% higher than last year
Slide 25: Income statement snapshot
INCOME STATEMENT SNAPSHOT in PLN m Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Interest income 456 443 481 525 553 Interest expense -135 -120 -138 -151 -167 Net interest income 321 323 343 374 387 Dividend 0 0 0 0 0 Fee and commission income 135 135 136 125 145 Fee and commission expense -50 -39 -43 -54 -56 Net f
Slide 26: Balance sheet snapshot
BALANCE SHEET SNAPSHOT 30 Sep’14 31 Dec’14 31 Mar’15 30 Jun’15 30 Sep’15 Cash and balances with Central Bank 1 019 1 158 1 378 1 815 1 348 Financial assets held for trading 421 477 525 427 365 Financial assets available for sale 2 063 2 652 2 494 2 714 4 016 Hedging derivatives 53 80 120 49 123 Rece
Slide 27: Shareholding
SHAREHOLDING Largest free float among Polish financials institutions 11.1m shares - 15,2% Entity controlled by Carlo Tassara Group 7.3m shares – 10,0% PZU S.A. 5.1m shares – 7,0% 45,5m shares – 62.5% Genesis Asset Managers LLP Market free float 3.8m shares – 5,2% Aviva OFE On October 12th 2015 PZU b
Slide 28: New loans sales in retail & SME
NEW LOANS SALES IN RETAIL & SME Retail loans (new production per quarter) 1 809 1 621 1 681 66 1 641 1 626 1 489 73 1 530 Other retail 1 314 125 1 374 90 55 46 74 629 Mortgages for 54 370 61 546 562 556 342 423 526 real estate 322 Cash loans 938 1 126 971 992 1 062 1 114 990 949 1 023 Q3'13 Q4'13 Q1
Slide 29: Employees
EMPLOYEES Persons 7 280 7 012 6 707 6 834 6 794 714 651 Meritum 4 408 3 899 4 382 4 380 4 138 Outlets Headquaters 2 325 2 426 2 895 2 186 2 223 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 FTEs 7 098 6 738 6 559 6 637 6 504 714 651 Meritum 4 305 4 294 3 697 4 251 3 928 Outlets 2 254 2 343 2 807 Headquaters 2 133 2
Slide 30: Continued growth of market share
CONTINUED GROWTH OF MARKET SHARE Deposits MARKET SHARE Loans 3,2% 3,3% 3,2% 3,3% 2,6% 2,7% Q3'14 Q2'15 Q3'15 Q3'14 Q2'15 Q3'15 Deposits MONTHLY GROWTH (%) Loans Total Retail Corporate Total Retail Corporate ALIOR Market ALIOR Market ALIOR Market ALIOR Market ALIOR Market ALIOR Market APR 1,9 -0,8 -1
Slide 31: Polish macro outlook
POLISH MACRO OUTLOOK GDP growth (% yoy) Investments and private consumption (% yoy) 10,6 Investments Private 4,50 consumption 3,90 7,1 6,8 3,40 3,40 3,2 3,30 2,6 4,6 0,8 0,9 4,1 3,6 0,2 2,5 1,90 1,60 -2,4 -1,8 2010 2011 2012 2013 2014 2015F 2016F 2010 2011 2012 2013 2014 2015F 2016F End of period En
Slide 32: Polish macro outlook
POLISH MACRO OUTLOOK NBP reference rate (%) WIBOR 3M (%) 4,50 4,99 4,25 4,13 3,50 3,95 2,50 2,71 2,00 2,06 1,50 1,50 1,65 1,70 2010 2011 2012 2013 2014 2015F 2016F 2010 2011 2012 2013 2014 2015F 2016F End of period End of period FX rate (EUR/PLN) Fiscal policy (% of GDP) 4,46 57,2 30 60 56,2 55,6 25
Slide 33: Polish banking sector - growth of main balance sheet figures
POLISH BANKING SECTOR – GROWTH OF THE MAIN BALANCE SHEET FIGURES Assets Loans +4,6% +4,9% +7,6% +6,3% 1 609 1 569 1 577 1 538 1 532 1 108 1 493 1 041 1 055 1 039 1 074 1 090 1 429 1 406 1 444 993 972 1 002 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'1
Slide 34: Polish banking sector - main P&L lines performance
POLISH BANKING SECTOR – MAIN P&L LINES PERFORMANCE NII NFC Result on banking activity +1,4 -7,5 -6,9 3,5 14,8 14,5 9,7 3,3 3,3 3,4 3,4 13,6 13,4 13,7 8,8 8,7 8,4 9,0 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 X - CHANGE VS. Q3’14 (%) Expenses* Net impai
Slide 35: Contact details
CONTACT DETAILS Please direct all inquiries to: relacje.inwestorskie@alior.pl +48 22 417 3860 IR unit head: Piotr Bystrzanowski piotr.bystrzanowski@alior.pl 35
Slide 36: Disclaimer
DISCLAIMER This document has been prepared by Alior Bank S.A. (the “Bank”) solely for use at the Presentation. Any forward looking statements concerning future economic and financial performance of the Company contained in this Presentation are based on Financial Statement of the Bank for Q3 2015. B