Alior Bank Sa · GPW:ALR
Alior Bank Sa — Q1 2024 Earnings Presentation
45 slides from Alior Bank Sa's earnings presentation, Oct 28, 2024
Slide 1: Presentation of results for 1Q'24
Presentation of results for 1Q’24 Warsaw, April 25, 2024
Slide 2: Agenda
Agenda 1. Operating activities 2. Credit risk 3. Financial results 4. Other issues 2
Slide 3: Operating activities
3 Operating activities
Slide 4: Alior Bank's financial results stabilize at a high level
Alior Bank's financial results stabilize at a high level Total revenues (PLN mn) +170 mn (+13%) In 1Q’24 revenues of the Alior Bank Group amounted to PLN mn 1 498. The Bank’s revenues remain at a high level 1 533 • net interest income PLN mn 1 269 (+15% y/y) 1 328 1 358 1 413 1 498 • net fees and co
Slide 5: Another successful quarter for Alior Bank
Another successful quarter for Alior Bank - improvement in the quality and size of the loan portfolio Assets (PLN bn) Gross Loans (PLN bn) Gross Performing Loans* (PLN bn) +8% +7% +9% 91,4 66,3 61,2 62,3 84,3 56,1 1Q 23 1Q 24 1Q 23 1Q 24 1Q 23 1Q 24 C/I 1Q’24 ROE 1Q’24 TCR 1Q’24 36.4% 24.4% 17.46% +
Slide 6: Good quarter for the Retail Customer segment
RETAIL Good quarter for the Retail Customer segment CUSTOMERS Implementation of a new service under the "Top up your account” option in Alior Pay. For new Customers, the service allows you to top up your account from PLN 500 up to the limit. For 30 days at no cost, after this period it can be repaid
Slide 7: Growth of the Bank's key products – mortgage loans
RETAIL Growth of the Bank’s key products – mortgage loans* CUSTOMERS Sale of mortgage loans (PLN bn) Number of Customers with a mortgage loan (k) +323% +11% 2,50 -21% 2,07 80,8 83,1 2,00 74,7 75,1 76,5 1,64 1,50 0,99 1,00 0,60 0,50 0,39 0,00 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 1Q 23 2Q 23 3Q 23 4Q 23 1Q 2
Slide 8: Growth of the Bank's key products – cash loans
RETAIL Growth of the Bank’s key products – cash loans* CUSTOMERS Sales of loans (PLN bn) Number of Customers with a loan (k) -2% -2% +14% 1,60 1,69 1,49 1,57 1,38 390 392 391 385 384 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 Gross consumer loan portfolio (PLN bn) Market -3% share 1
Slide 9: Growth of the Bank's key products – Consumer Finance loans
RETAIL Growth of the Bank’s key products – Consumer Finance (CF) loans CUSTOMERS Sales of CF loans (PLN bn) Number of CF Customers (k) +85% +22% -30% 1 537 1 569 1 372 1600 1,91 1400 1 282 1 318 1200 1,42 1,35 1,17 1000 800 0,73 600 400 200 0 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 1Q 23 2Q 23 3Q 23 4Q 23 1Q
Slide 10: Effective establishment of a lasting relationship with Customers
RETAIL Effective establishment of a lasting relationship with Customers CUSTOMERS Number of Individual Customers (mn) Number of accounts “Konto Jakże Osobiste” (k) +8% +20% 803 4,36 4,41 4,20 761 4,10 4,14 732 700 670 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 Number of motorway jou
Slide 11: Growing importance of digital channels
RETAIL Growing importance of digital channels CUSTOMERS Users of Alior Bank mobile applications (k) Number of wire transfers initiated in the Alior Mobile application (mn) +18% +24% 1 400 16,8 17,7 1 081 1 146 15,2 15,5 1 042 1 200 968 1 006 14,3 1 000 800 600 400 200 0 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24
Slide 12: Very good results of the Business Customer segment
BUSINESS Very good results of the Business Customer segment CUSTOMERS REVENUES Y/Y REVENUE AFTER COST NPL Y/Y OF RISK Y/Y +5% +24% -3.19 p.p. PLN mn 414 in 1Q’24 * • Over 5% market share in sales • Substantially over 7% market share in commitments up to PLN mn 5 for the self-employed („JDG”) • Subst
Slide 13: Upward trend in key efficiency indicators
BUSINESS Upward trend in key efficiency indicators CUSTOMERS Share of automatic decisions in new sales (Small segment) Sales of online accounts in micro segment +11 p.p. +104% 22 691 691 67% 68% 22 212 329 61% 1 714 743 741 59% 57% 1 329 316 11 237 240 237 I1Q kw.23 23 II2Q kw.23 23 III 3Qkw.23 23 I
Slide 14: Improving the structure of the Business Customers portfolio
BUSINESS Improving the structure of the Business Customers portfolio* while maintaining CUSTOMERS market share Balance of assets Business Customers (PLN bn) Balance of assets in regular servicing Business Customers (PLN bn) -4% 0% 18,7 18,7 18,7 18,0 18,0 15,1 15,2 15,2 14,7 15,1 1Q23 2Q23 3Q23 4Q23
Slide 15: Transactional products – latest implementations
BUSINESS Transactional products – latest implementations CUSTOMERS iKonto Business, Card with Plus, and BLIK 1 Place in the ranking of business accounts by Bankier.pl, April 24 21% increase in sales of accounts for micro during the current promotion increase in sales of Cards with Plus during the 7%
Slide 16: Alior Bank – Digital Leader
Alior Bank – Digital Leader „Top up your account” – new Alior Pay functionality New in Alior Mobile – „stories” Alior Bank has introduced a new functionality The Bank is expanding it’s informational and educational side with within the Alior Pay credit limit. Thanks to the new screens in the "storie
Slide 17: Innovative offer with ESG requirements in mind
Innovative offer with ESG requirements in mind BIZNESMAX PLUS AND EKOMAX SETTING UP A COMPANY IN ALIOR ONLINE Biznesmax Plus Through online banking, and Ekomax guarantees (offered individual customers have the in cooperation with BGK). option of simultaneously An offer for SMEs, helping registering
Slide 18: Alior Bank's corporate social responsibility
Alior Bank's corporate social responsibility Development Thursdays Bank With Us • Starting in April, every Thursday from 9 to 11 AM, • "Bank With Us" is a series of meetings for bankers and branch directors will improve their people interested in working in the banking competences, update their know
Slide 19: ESG activities at Alior Bank
ESG activities at Alior Bank Selected activities in 1Q’24 All the practices we reported have been accepted into the Responsible Business Forum Report 1. ESG Week 2. Alior University 3. ONA („SHE”) Initiative 4. Alior Bank Olympics For the first time, we participated in 5. Charity work • We supported
Slide 20: External stakeholders appreciate the changes in Alior Bank
External stakeholders appreciate the changes in Alior Bank Alior Bank's Currency Exchange Office 3rd place for the best macroeconomic with the Customer's Golden Laurel for analyst according to the daily newspaper the fourth time. "Parkiet". The title of the Institution of the Year in 9 Our Brokerage
Slide 21: Credit risk
21 Credit risk
Slide 22: Stable and safe position of the Bank: capital and liquidity surplus
Stable and safe position of the Bank: capital and liquidity surplus well above regulatory minimums TIER I Very high TIER I and TCR capital ratios at the end of March 2024, which significantly exceed regulatory minimums by 832 bps (PLN 17,15% 16,97% bn 4.2) and 681 bps (PLN bn 3.4), respectively. 15,
Slide 23: Alior Bank consistently increases portfolio quality and decreases cost of risk
Alior Bank consistently increases portfolio quality and decreases cost of risk Alior Bank Group – cost of risk (%) Alior Bank Group – NPL ratio 0 2,80% 0 2,39% 14,48% 13,16% 0 11,77% 1,60% 1,51% 0 9,80% 0 0,98% 0,68% 8,58% 0 7,65% 0 2019 2020 2021 2022 2023 1Q 24 2019 2020 2021 2022 2023 1Q 24 The B
Slide 24: Changes in credit portfolio management have brought tangible results
Changes in credit portfolio management have brought tangible results Impaired loans (PLN bn) NPL reserve coverage ratio* Cost of Risk - CoR** 10,00% 9,80% 9,45% 7 1,61% 9,39% 6 9,00% 8,58% 6 0,95% 0,96% 8,00% 7,65% 53,7% 53,1% 54,1% 54,0% 5 51,2% 5,88 5,69 5,75 0,68% 7,00% 5,30 4,82 5 0,47% 6,00% 4
Slide 25: Financial results
25 Financial results
Slide 26: Income statement
Income statement PLN mn 1Q 23 4Q 23 1Q 24 % y/y y/y % q/q q/q Total Income 1 328,2 1 532,6 1 498,4 13% 170,2 -2% -34,2 Net interest income 1 103,1 1 289,2 1 269,4 15% 166,3 -2% -19,8 Net fee and commission income 208,6 240,5 211,3 1% 2,8 -12% -29,2 Other income 16,6 2,9 17,7 6% 1,1 514% 14,8 Total c
Slide 27: Stable net interest income and slight decrease in interest margin
Stable net interest income and growth in assets translated into a slight decrease in the interest margin Interest income and expenses (PLN mn) Interest margin and financing cost* +0% -1% 6,05% 6,16% 6,22% 5,81% 5,96% 1 821 1 887 1 851 1 824 1 835 11 408 401 423 416 442 One-off items*** Other Interes
Slide 28: Stable y/y fees and commissions result
Stable y/y fees and commissions result Net Fees and Commissions Income (PLN mn) +1% -12% 241 Bank accounts, transfers, cash 216 operations (net) 209 44 211 +7% y/y 41 Bancassurance (net) 41 172 19 43 24 -6% y/y 22 43 20 62 Leasing, loans and advances 63 22 +2% y/y 61 13 62 Brokerage commissions (net
Slide 29: Maintaining operational efficiency despite inflationary pressure on costs
The Bank is maintaining operational efficiency, despite growing inflationary pressure on costs Operating costs (PLN mn) C/I ratio** +8% -3% C/I normalized*** C/I reported 38,1% 37,9% 562 545 505 65 41 463 -29% y/y Employee 58 1 448 64 expenses 65 68 62 -1% y/y 35,0% 36,6% 36,4% Costs of Bank Guarant
Slide 30: Main financial targets of the strategy
The main financial targets of the strategy „Your Bank of everyday life, your Bank for the future” Profitability 1Q’24 2024 ROE 24.4% >13% C/I 36.4% <45% Equity Tier 1 17.0% >13,5% TCR 17.5% >15% Credit risk CoR 0.68% <1,6% NPL 7.65% <10% 30
Slide 31: Why Alior Bank?
Why Alior Bank? ▪ Safe and stable capital position ▪ High NIM ▪ Innovation, digitization, high quality of services for Customers ▪ High performance due to an increase in revenue and cost optimalization ▪ Improvement in the loan portfolio quality ▪ Consumer Finance market leader ▪ Growing share of ho
Slide 32: Other issues
32 Other issues
Slide 33: In Q1'24 economic recovery continued in Poland
In Q1’24 economic recovery continued in Poland The beginning of 2024 suggests a moderate recovery Strong real wage growth supports consumption... GDP growth (real, %, y/y) and its structure (p.p.), Poland 20 Job market in the enterprise sector, Poland 10,0 15 5,0 10 0,0 5 - 5,0 0 - 10,0 -5 1Q20 3Q20
Slide 34: Inflation is still cooling down, supported by a strong zloty
Inflation is still cooling down, which is additionally supported by a strong zloty Inflation slows down across the entire CEE region This allows for interest rate cuts CPI 14 Rates in CEE region (base, %) Poland, Hungary, Czechia Poland, Hungary, Czechia 12 30 26 10 22 8 18 14 6 10 6 4 2 2 -2 Mar-04
Slide 35: Economic growth in an environment of positive real interest rates
Economic growth in an environment of positive real interest rates In 2024, consumption should support the rebound in GDP Which will be enabled by among others a strong growth in real wages GDP growth with main components, Poland Job market, Poland 16,0 10,0 14,0 8,0 6,9 5,1 12,0 6,0 4,1 3,3 3,0 10,0
Slide 36: Alior Bank's investment services
Alior Bank’s investment services Alior Bank’s Brokerage House Alior TFI In 1Q’24 commission income was significantly higher than in In 1Q’24 Alior TFI achieved a record-breaking level of fund sales. At the previous year, despite a weaker result in the core the end of March 2024, TFI had assets of PL
Slide 37: Activities of Alior Leasing
Activities of Alior Leasing Sale of lease and loans (PLN bn) Number of customers (k) Lease and loans portfolio (PLN bn) +9% -6% -9% +11% +2% +33% -1% +3% +39% +16% 74,3 69,9 -3% 6,2 -27% 0,8 68,3 63,3 62,8 6,0 6,0 0,7 5,8 0,6 0,5 0,5 5,4 1Q 20 1Q 21 1Q 22 1Q 23 1Q 24 2020 2021 2022 2023 1Q 24 2020 2
Slide 38: Gross structure of the loan portfolio
Gross structure of the loan portfolio Loan portfolio in total (PLN mn) Retail Customer Segment (PLN mn) Business Customer Segment* (PLN mn) +7% +11% 0% +2% +3% 0% 39 718 40 876 65 060 66 319 36 822 5 039 5 117 25 445 25 342 25 443 62 267 4 009 6 156 6 463 6 645 25 342 25 443 25 445 19 517 16 092 18
Slide 39: The Bank adjusts its deposit portfolio to the current market situation
The Bank adjusts its deposit portfolio to the current market situation (PLN mn) Structure of net liabilities to Customers Net liabilities structure - Retail Segment Net liabilities structure - Business Segment +7% +5% +12% +2% +2% +4% 76 834 71 856 75 187 51 929 52 722 2 649 2 455 50 397 24 112 1 56
Slide 40: Consolidated statement of the financial standing of the Alior Bank Group
Consolidated statement of the financial standing of the Alior Bank Group (PLN mn) 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 % q/q q/q % y/y y/y Total assets 84 325,2 83 527,5 86 320,5 90 134,1 91 379,5 1% 1 245,3 8% 7 054,3 Cash and cash equivalents 4 578,0 3 167,6 3 819,9 2 539,3 2 180,2 -14% -359,1 -52% -2 39
Slide 41: New sale of loans
New sale of loans (PLN mn) Sales in the Business Customer Segment* -20% -15% 3 069 2 833 2 891 2 432 2 414 2 446 2 276 1 197 2 196 2 103 691 2 082 1 424 1 999 1 525 773 1 823 628 1 137 754 -35% y/y 603 1 455 1 194 1 516 886 562 1 741 1 872 1 673 1 568 1 409 1 366 1 220 1 328 1 277 909 1 113 -11% y/y
Slide 42: Additional information
Additional information Employment (FTEs) Alior Bank’s branches +215 +3% -7 +42 -1% +1% -2 -0% 7 229 7 271 526 524 523 521 519 7 055 7 041 7 150 519 524 482 488 519 187 186 183 180 178 67 66 70 72 71 6 504 6 560 6 644 6 681 339 338 340 341 341 6 482 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 1Q 23 2Q 23 3Q 23 4Q
Slide 43: Alior Bank S.A. - quotations, shareholding structure, ratings
Alior Bank S.A. - quotations, shareholding structure, ratings Alior Bank’s share price compared to WSE indices (comparable data for 12 months) Alior Bank share price : PLN 97.94 (data as of March 28, 2024) 100 +152.7% y/y Capitalization: PLN bn 12.8 90 Value of shares in free float : PLN bn 5.7 P/BV
Slide 44: Contact
Contact Contact data Investor Relations and Subsidiaries Supervison Department Address details e-mail: ir@alior.pl Alior Bank S.A. Investor Relations and Subsidiaries Supervision Department ul. Łopuszańska 38D 02-232 Warsaw Poland Więcej informacji Kolejne wydarzenia: Website • Annual General Meetin
Slide 45: Disclaimer
Disclaimer This data has been prepared by Alior Bank S.A. (“Bank”, “Company”) solely for the purpose of the Presentation. Any and all data that may constitute a projection for the Company’s future economic and financial results, contained in this presentation, has been prepared based on the Report o