Q 1 2 0 1 9 R e s u l t s May 30, 2019
Key Highlights Macroeconomic Update Q1 19 Financial Performance Appendix Asset Quality Contents Capital Volumes P&L
Disclaimer This presentation has been prepared and issued by Alpha Bank solely for informational purposes. For the purposes of this disclaimer, this presentation shall mean and include materials, including and together with any oral commentary or presentation and any question and answer session. By attending a meeting at which the presentation is made, or otherwise viewing or accessing the presentation, whether live or recorded, you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctions attached to the misuse, disclosure or improper circulation of the presentation or any information contained herein. By reading this presentation, you agree to be bound by the following limitations: No representation or warranty, express or implied, is or will be made in relation to, and no responsibility is or will be accepted by Alpha Bank (or any member of Alpha Bank’s Group) as to the accuracy, fairness or completeness of the information contained in this presentation and nothing in this presentation shall be deemed to constitute such a representation or warranty. The information contained in this presentation may contain and/or be based on information that has been derived from publicly available sources that have not been independently verified. Alpha Bank is not under any obligation to update, revise or supplement this presentation or any additional information or to remedy any inaccuracies in or omissions from this presentation. This presentation does not constitute an offer, invitation or recommendation to subscribe for or otherwise acquire securities. Also, it is not intended to be relied upon as advice to investors or potential investors and does not take into account the objectives, financial situation or needs of any particular investor. You are solely responsible for forming own opinion and conclusion. The figures presented have been prepared in accordance with IFRS as adopted in the European Union and applicable at that date, and with prudential regulations currently, in force. Also, Alpha Bank has included certain non-IFRS financial measures in this presentation. These measurements may not be comparable to those of other companies. Reference to these non-IFRS financial measures should be considered in addition to IFRS financial measures, but should not be considered a substitute for results that are presented in accordance with IFRS. Certain statements in this presentation may be deemed to be “ forward- looking” . You should not place undue reliance on such forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they reflect current expectations and assumptions as to future events and circumstances that may not prove accurate. Forward-looking statements are not guarantees of future performance, and the actual results, performance, achievements or industry results of Alpha Bank’s operations, results of operations, financial position and the development of the markets and the banking industry in which it operates or is likely to operate may differ materially from those described in, or suggested by, the forward-looking statements contained in this presentation. In addition, even if the operations, results of operations, financial position and the development of the markets and the banking industry in which Alpha Bank operates is consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in subsequent periods. A number of factors could cause results and developments to differ materially from those expressed or implied by the forward-looking statements including, without limitation, general economic and business conditions, competition, changes in banking regulation and currency fluctuations. Forward-looking statements may, and often do, differ materially from actual results. Any forward-looking statements in this document reflect Alpha Bank’s current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to Alpha Bank's financial position, operations, results of operations, growth, strategy and expectations. Any forward-looking statement speaks only as of the date on which it is made. New factors will emerge in the future, and it is not possible for Alpha Bank to predict which factors they will be. In addition, Alpha Bank cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those described in any forward looking statements. Alpha Bank disclaims any obligation to update any forward-looking statements contained herein, except as required pursuant to applicable law. 9M 2013 Results FY 2013 Results Q1 2019 Results 3 3
Key Highlights Macroeconomic Update Q1 19 Financial Performance Appendix Asset Quality Q1 2019 Results Capital Volumes P&L
Q1 2019 Financial Highlights Core PPI at €212mn decreased by 12.6% q -o-q, mainly impacted by a 9.0% decrease in NII and seasonal pressure in fees. Recurring operating expenses declined by 7.9% q-o-q Financial Impairment losses on loans at € 178mn, significantly decreased vs Q4 2018 Performance PAT at € 27.5mn for Q1 2019 Loan disbursements of €0.6bn in Q1 2019. New financing is expected to pick up pace in the next quarters of the year to reach c.€3.5bn by the end of 2019 Commercial Activity Group deposits at €38.9bn in March 2019 Deposits in Greece increased by €0.3bn q -o-q Group NPEs reduced by €0.3bn q -o-q Ongoing portfolio segmentation and classification of non-performing exposures as “Core” and “non - Core” to distinguish between strategies to be applied Asset Quality Retail NPL transformation plan gaining pace NPE transactions of c.€4bn in the pipeline for 2019 FL B3 CET1 ratio at 14%; Phased in CET1 ratio at 17% as of March 2019, despite the impact from IFRS 9 and IFRS 16 Total CAD at 17%, providing a comfortable buffer of €1.6bn over our SREP ratio requirements Capital Use of standardized approach in calculating RWAs to provide flexibility in NPE reduction strategies Group LDR at 103% as of March 2019 versus 116% a year ago; ELA eliminated in February 2019 Repos at € 6.7bn as of March 2019, increased by € 4.0bn y-o-y Liquidity Successful completion of a €200mn covered bond issuance by Alpha Bank Romania, in May 2019, the first ever covered bond issued from a Romanian bank FY 2013 Results 9M 2013 Results Q1 2019 Results 5 5
Key Highlights Macroeconomic Update Q1 19 Financial Performance Appendix Asset Quality Q1 2019 Results Capital Volumes P&L
Despite the conflux of international headwinds, economic upswing continues Youth unemployment declines while part-time work in new hirings Moderate growth with improving expectations in manufacturing remains high 3% 60 55% 56% 55% 55% 54% 2% 55 51% 1% 46% 45% 45% 0% 50 40% 35% -1% 33% 45 -2% 25% -3% 40 21% -4% 15% 35 -5% 5% -6% 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV J F M A 2013 2014 2015 2016 2017 2018 2019 Total Unemployment rate Real GDP (annual % change) EU-28 real GDP (annual % change) Youth Unemployment rate PMI, rhs Part time and temporary new hirings (as % of private sector job creation) Source: ELSTAT, European Commission, Markit Source: Eurostat, ERGANI, GSEE Labour Institute Real GDP growth is expected to retain its current dynamics on the back of robust private consumption, investment rebound and Robust private consumption in a low inflation environment improving expectations in manufacturing amid a less favorable external environment 4% Additionally, the impact of the EU growth slowdown is expected to be 2% limited on the volume of Greek exports, because of their low income elasticity 0% Employment growth is expected to continue, though at a slower pace -2% (2019: 1.5%; 2020: 1.3% according to EC Spring 2019 Forecasts) This moderate job creation, combined with the recent minimum wage -4% Ι ΙΙ ΙΙΙ IV Ι ΙΙ ΙΙΙ IV Ι ΙΙ ΙΙΙ IV Ι ΙΙ ΙΙΙ IV Ι ΙΙ ΙΙΙ IV 2020* hike, muted inflation dynamics and the supportive fiscal measures 2019* (including lower VAT rates, an increase in pension benefits and a 2014 2015 2016 2017 2018 scheme to settle outstanding tax and social security payments in Private consumption (annual % change) instalments) are expected to continue to support household spending Inflation (HICP), at constant tax rates Inflation (HICP) Despite cuts in VAT rates and lower oil prices, inflation is expected to * EC Forecasts (Spring 2019 ) remain around 0.8% in 2019 and 2020 mainly supported by minimum Source: : ELSTAT, Eurostat Source: : ELSTAT, Eurostat wage increase and resilient private consumption FY 2013 Results 9M 2013 Results Q1 2019 Results 7 7
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