Business
Alior Bank S A : Financial Reporting Document
Alior Bank S A : Financial Reporting
About this update from Alior Bank Sa
Presentation of results for 3Q'24 Warsaw, October 24, 2024 Agenda 1. Operating activities Credit risk Financial results 4. Other issues Operating activities In 3Q'24 Alior Bank achieved record financial results Net profit in 3Q'24 amounted to PLN mn 666 (16% more than in 3Q'23) Net profit in 1-3Q'24 amounted to PLN mn 1 830 (27% more than in the period 1-3Q'23) Safe capital position of the Bank Tier 1 ratio at 16.78% and TCR at 17.11%. High surplus over regulatory minimums: • for Tier 1 it's 8.11 pp. (PLN bn 4.2) for TCR it's 6.44 pp. (PLN bn 3.3) Growth of the mortgage loan portfolio In Q3'24, the portfolio of loans for residential real estate amounted to PLN bn 20.1 (+18% y/y) The share of residential real estate loans in the Bank's portfolio reached 30.3% (gross) 4 The number of mobile app users was 1.24 mn (19% more than at the end of September 2023) The number of customers with regular inflows amounted to 1.143 mn (71 thousand more than at the end of September 2023) Significant decrease in the cost of risk Cost of risk in 1-3Q'24 amounted to PLN mn 305 (45% less than in the period 1-3Q'23) In 3Q'24, the cost of risk amounted to PLN mn 155. Costs of risk, excluding additional write-downs related to the potential effects of floods in Poland, amounted to approx. PLN mn 130 and were approx. PLN mn 25 lower than in 3Q'23 The CoR index in 1-3Q'24 amounted to 0.62% and decreased by 0.54 pp. compared to 1-3Q'23 Reduction of the NPL ratio to 7.10% A decrease of 2.29 pp. in the last 12 months Dynamic revenues growth (+12% y/y) and net profit (+16% y/y) in 3Q'24 In 1-3Q'24 revenues amounted to PLN bn 4.52 net interest income PLN bn 3.87 (+11% y/y) net commission income PLN mn 629 (+5% y/y) In 3Q'24, revenues amounted to PLN bn 1.58 net interest income PLN bn 1.36 (+11% y/y) net commission income PLN mn 207 (+20% y/y) Alior Bank Group's net profit for the last four quarters, that is in 4Q'23 - 3Q'24 amounted to PLN bn 2.42 Alior Bank Group's net profit in 1-3Q'24 amounted to PLN bn 1.83 and increased by PLN mn 386 compared to the result in 1-3Q'23 Alior Bank Group's net profit in 3Q'24 amounted to PLN mn 666 and increased by PLN mn 94 compared to the result in 3Q'23 The result of the third quarter of 2024 was positively impacted by the release of PLN mn 24 (gross) of provisions for "credit moratoria". Net profit in 3Q'24 adjusted for the impact of the provision release would amount to PLN mn 646 5 Total revenue (PLN mn) +415 (+10%) +163 (+12%) 4 515 1 413 1 533 1 498 1 440 1 577 4 100 1-3Q'231-3Q'24 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 Net profit (PLN mn) +386 (+27%) +94 (+16%) 666 1 830 1 443 587 586 578 572 1-3Q'23 1-3Q'24 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 The current macroeconomic environment is conducive to the Bank's stable development Assets (PLN bn) +6% Gross Loans (PLN bn) +3% Gross Performing Loans* (PLN bn) +5% 91,2 86,3 64,4 66,3 61,5 58,3 3Q'23 3Q'24 3Q'23 3Q'24 3Q'23 3Q'24 C/I 3Q'24 NIM III 3Q'24 ROE III 3Q'24 COR 3Q'24 TCR 3Q'24 30.0% 6.32% 25.7% 0.92% (0.77%**) 17.11% -1.7 pp. y/y +0.16 pp. y/y -2.2 pp. y/y -0.05 pp. y/y (-0.19 pp. y/y **) +0.43 pp. y/y C/I 1-3Q'24 NIM 1-3Q'24 ROE 1-3Q'24 COR 1-3Q'24 NPL 3Q'24 33.9% 6.08% 24.4% 0.62% 7.10% -0,6 pp. y/y +0.14 pp. y/y -1.7 pp. y/y -0.54 pp. y/y -2.29 pp. y/y 6 * Volume of gross loans classified to stages 1 and 2 ** cost of risk ratio in Q3'24 excluding an additional provision for potential effects of floods in Poland Alior Bank supports people affected by flooding Support for the activities of WOŚP Alior Bank joined the initiative of the WOŚP Foundation and financially supported the fight against the effects of the flood. The funds helped to provide emergency assistance and purchase necessary equipment and medical supplies. Internal initiatives In response to the difficult situation of the affected, the Bank has undertaken several internal initiatives to support those touched by this crisis. A collection of essential items was organized , which was sent to people affected by the flood. An Aid Fund for Alior Bank employees in need from the flooded areas was launched. In addition, the bank's employees were actively involved in various volunteering campaigns . External initiatives Alior Bank has joined the sector's activities and provided customers with the opportunity to apply for a temporary deferral of the payment of loan installments for cash loans and installment loans. We have also made it possible to apply through a simplified process for the extension of the agreement up to 3 months for credit cards and revolving overdraft limits. Mortgage borrowers who have found themselves in a difficult situation as a result of the flood can, through Alior Bank, take advantage of assistance under the Borrowers Photo. walbrzych.wyborcza.pl Support Fund . The Bank makes every effort to simplify the application process as much as possible for customers who find themselves in a situation that prevents them from repaying their current liabilities. 7 Summary of activities in the Retail Customer segment in the third quarter RETAIL CUSTOMERS We have refreshed the mobile app, which is already in use by over 1.2 mn users. We continue to build a base of relational customers utilizing the consistently developing digital platform. After taking advantage of the opportunity of the 2% Safe Mortgage Program (under the program, sales in 2024 amounted to: PLN bn 1.3), Alior pursued a conservative sales plan. We plan to increase the volumes with a more affordable offer of loans with a periodically fixed rate. In September, we implemented a cash loan offer with APR 9.91% "Prosto Pożycza Mi Się" ( It's Simple to Loan to Me ) and support it with a TV campaign. The competitive offer will contribute to expansion in subsequent periods. After 3Q'24, the sale of installment loans is higher by PLN mn 345 y/y. We are launching further e-commerce integrations. MOBILE USERS MORTGAGE LOAN SALES LOAN SALES CONSUMER FINANCE SALE 1.24 MN 0.6 PLN BN 1.6 PLN BN 1.1 BN PLN SPRZEDAŻ POŻYCZKI 8 Effectively establishing lasting relationships with customers: 7% increase in customers with regular inflows (+71 k y/y) with an increase in the number of flagship accounts by 150 k y/y RETAIL CUSTOMERS Number of retail clients (mn) Number of accounts "Konto Jakże Osobiste" (k) +3% +20% 803 843 882 4,41 4,39 732 761 4,36 4,33 4,20 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 Number of customers with regular inflows (k) Number of BLIK transactions (mn) +7% +31% 1 072 1 087 1 100 1 126 1 143 21,6 22,4 17,1 18,9 19,4 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 9 Consistent updates of Alior Mobile in 3Q'24. We have a well-defined roadmap for further development of the app My things "Orders and documents": access to after- sales options "Questions and Suggestions" - submitting questions or making suggestions RETAIL CUSTOMERS New transaction history look Refreshed look for full transaction history Customizable operations view on home screen New search filters and summary of inflows and outflows Payment limits Presentation of payment limits Management of card limits 10