Slide 1: Update on Capital Plan, Q4'2017 Growth, and Strategic KPIs
UPDATE ON CAPITAL PLAN, Q4’2017 GROWTH, AND STRATEGIC KPIs Warsaw, 10 January 2018
Slide 2: Introduction
INTRODUCTION The purpose of this document is to provide an update on: • Alior Bank’s capital plan, in light of certain events having a material positive impact on the Bank’s capital position compared to the capital plan underlying the Digital Disruptor Strategy Implementation Plan announced on 4 Oct
Slide 3: Summary
SUMMARY • Alior Bank currently targets a Tier 1 ratio of 15.0% and a TCR of 17.0% in 2020 (excluding the effects of any potential dividend payout in 2020), i.e. 3.25pp above the expected minimum regulatory requirements in 2020 • The improved capital position allowed the Bank to accelerate growth in
Slide 4: Alior Bank's improved capital position compared to the capital plan (1/3)
ALIOR BANK’S IMPROVED CAPITAL POSITION COMPARED TO THE CAPITAL PLAN ANNOUNCED ON 4 OCTOBER 2017 (1/3) Item Capital plan announced on 4 October 2017 Updated capital plan • No OSII buffer designation in 2017 OSII* • 0.25% from Q4’2017 • OSII buffer designation of 0.25% now assumed for Buffer Q4’2018 S
Slide 5: Alior Bank's improved capital position compared to the capital plan (2/3)
ALIOR BANK’S IMPROVED CAPITAL POSITION COMPARED TO THE CAPITAL PLAN ANNOUNCED ON 4 OCTOBER 2017 (2/3) Item • Lower impact of IFRS-9 in 2018 compared to the assumptions made in the capital plan underlying the Strategy Implementation Plan (currently estimated Tier 1 impact ~16bps lower as of 1 January
Slide 6: Alior Bank's improved capital position compared to the capital plan (3/3)
ALIOR BANK’S IMPROVED CAPITAL POSITION COMPARED TO THE CAPITAL PLAN ANNOUNCED ON 4 OCTOBER 2017 (3/3) Item Capital plan announced on 4 October 2017 Updated capital plan • Due to the positive developments in Alior’s capital position, no utilization of capital optimization instruments needed in order
Slide 7: Alior targets a Tier 1 ratio significantly above the regulatory minimums
ALIOR TARGETS A TIER 1 RATIO SIGNIFICANTLY ABOVE THE REGULATORY MINIMUMS THROUGHOUT THE STRATEGY TIME HORIZON… Tier 1 ratio evolution 15.0% Minimum T1 requirement for 13.25% 75% dividend payout in accordance with the current KNF guidelines 12.4%** 11.75% 11.9%* 11.125% 10.875% 10.25% Assumed T1 regu
Slide 8: Equally strong TCR buffer, leading to dividend payout capacity in 2020
…COUPLED WITH AN EQUALLY STRONG TCR BUFFER, LEADING TO ALIOR ACHIEVING DIVIDEND PAYOUT CAPACITY IN 2020 (DISTRIBUTION OF 2019 PROFIT), SUBJECT TO THE REGULATOR’S GUIDELINES AND EXPECTATIONS TCR evolution 17.0% 16.0%** Minimum TCR requirement for 75% dividend payout in 15.25% accordance with the curr
Slide 9: Improved capital allowed acceleration of growth in Q4'2017
THE IMPROVED CAPITAL POSITION ALLOWED ACCELERATION OF GROWTH IN Q4’2017, WHICH SIGNIFICANTLY EXCEEDED THE STRATEGIC TARGET AND THE PREVIOUSLY COMMUNICATED GUIDANCE 2017 quarterly gross loan book growth** evolution (PLN B) ~1.8-1.9* ~6.8* Strategic annual target and previously 1.4 communicated 2017 g
Slide 10: 2020 KPI targets under market consensus interest rate hike scenario (1/2)
2020 KPI TARGETS UNDER THE MARKET CONSENSUS INTEREST RATE HIKE SCENARIO AND INCLUDING ADDITIONAL ZUS COSTS AND RPP’S RESOLUTION (1/2) • Alior rate hike assumptions underlying the Strategy Implementation Plan (only 25bps till 2020) were conservative in order to separate the potential impact of positi
Slide 11: 2020 KPI targets under market consensus interest rate hike scenario (2/2)
2020 KPI TARGETS UNDER THE MARKET CONSENSUS INTEREST RATE HIKE SCENARIO AND INCLUDING ADDITIONAL ZUS COSTS AND RPP’S RESOLUTION (2/2) Scenario assumed in the Scenario reflecting the 2020 KPI Target Strategy Implementation Plan current market consensus on 1 2 (25bps hike) interest rate hikes ROE pres