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Alpha BankH1 2021 Results
Investor Presentation
August 26th, 2021
2
DisclaimerSystemic bank established in 1879
This presentation has been prepared and issued by Alpha Services and Holdings S.A. and its 100% subsidiary, Alpha Bank S.A., solely for informational purposes. It is hereby noted that on 16.4.2021, the demerger of the
credit institution under the former name “Alpha Bank S.A.” (which has been already renamed “Alpha Services and Holdings S.A.”) was completed by way of hive-down of the banking business sector with the incorporation of a
new company - credit institution under the name “Alpha Bank S.A.”.
References to “Alpha Bank” shall be construed to be references to Alpha Services and Holdings S.A., except to the extent otherwise specified or the context otherwise required, i.e. references to the entity acting as a credit
institution shall be deemed to refer to (i) the former Alpha Bank (already renamed Alpha Services and Holding S.A.) prior to 16.04.2021 and to (ii) the new “Alpha Bank S.A.” on and after 16.04.2021.
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 Services and Holdings or any member of its Group as to the accuracy, fairness,
completeness, reliability or sufficiency 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 Services and Holdings 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.
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 Services and Holdings and/or Alpha Bank’s operations, results of operations, financial position and the development of the markets and the industry in which they
operate or are 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 industry in which Alpha Services and Holdings and Alpha Bank operate 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 Services and Holdings’ 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 Services and Holdings and/or 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 Services and Holdings to predict which factors they will be. In
addition, Alpha Services and Holdings 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 Services and Holdings disclaims any obligation to update any forward-looking statements contained herein, except as required pursuant to applicable law.”
About Alpha Services and Holdings
Alpha Services and Holdings S.A. (under the distinctive title Alpha Services and Holdings) is a financial holdings company, listed on the Athens Stock Exchange, and the parent company of the banking institution "ALPHA
BANK S.A.".
Subsequent to the corporate transformation that took place in April 2021, the banking operations were hived-down to a new wholly owned banking subsidiary (Alpha Bank S.A.).
Alpha Bank S.A. is 100% subsidiary of Alpha Services and Holdings S.A. and one of the leading Groups of the financial sector in Greece which was founded in 1879 by J.F. Costopoulos. The Bank offers a wide range of high-
quality financial products and services, including retail banking, SMEs and corporate banking, asset management and private banking, the distribution of insurance products, investment banking, brokerage and real estate
management.
https://www.alphaholdings.gr/en/investor-relations
3
Alpha Bank
3
9
Pages
• Business update
• Financial Performance Analysis
• Appendix
Macroeconomic Update
P&L
Volumes
Asset Quality
Capital
ESG
Segment information
20
24
29
37
43
52
54
4
Greek economy outperforming expectations
Key recent macroeconomic highlights
+15.3% y-o-y in May, second month with growth post five negative reads
New government initiatives in place targeting improvement in uptake
>5% growth projected for 2021; activity expected to bounce back from Q2
Arrivals exceeding expectations: first week of August >70% of 2019 levels
ESI higher at 100.8 compared to equivalent 2020 levels of 100
Accelerating growth in house prices despite pandemic toll on activity
Continuous growth since Nov 2020 shows improving operating conditions
Sharp increase reflecting the resilience of the construction sector
Latest
GDP growth (%, y-o-y)
Comments
-2.3% >5%(1Q21) (2021f)
Total Passenger Traffic
AIA (%, y-o-y)
Vaccinations(% of total population)
Economic Sentiment
Indicator (period average)
100.8(Jan – Jul 21)
Manufacturing
Production (%, y-o-y)
371.2% 107.5%(2Q21) (Jul 21)
Retail Trade(volume, nsa, %, y-o-y)
Private Building Activity(volume, %, y-o-y)
Residential Prices(%, y-o-y)
3.2%(1Q21)
Sources: AIA (Athens International Airport), Bank of Greece, ELSTAT, European Commission, Ourworldindata.org
8.1%(Jan – May 21)
53.0%(Jan – May 21)
8.5%(Jan – Jun 21)
56.8%(Aug 23, 2021)
5
Description
Greek NPE securitizationunder HAPS II
Greek NPE portfolio sale
Cyprus NPE portfolio sale
Greek NPEcommon SME
portfolio transaction
Selected Wholesale & Leasing exposures
Other transactions
85% (€7bn) of NPE transactions leading to 13% NPE ratio by year end
Cosmos Orbit
Portfolio
breakdown
Sky Solar
Status
Transaction on track to complete by year end
Preliminary rating expected in Sep-21
HAPS submission expected in Oct-21
Transaction on track for Sep-21 launch
Binding offers targeted for Q4 21
Transaction on track for signing by year end
Binding offers targeted for Q4 21
2022 transaction with focus on preparatory actions
Banks currently engaging advisors
2022 transaction with focus on preparatory actions
Perimeter selected and advisors engaged
NPE GBV €3.5bn €1.3bn €2.2bn €0.4bn €0.7bn
18%
50%
11%
21%
4%
84%
12%
35%53%
6%7%
100% 100%
6
Strategic partnership inmerchant acquiring business
Value ItemAmounts
(in € mn)Comments
Strategic partnership
approach used for
transaction structure
-
Nexi to acquire 51% | Alpha Bank to retain 49%
Expectation of significant growth and profitability in the
payments space, allowing Alpha Bank to retain upside potential
Valuation 307
Multiple for the existing business at the higher end of current
trading multiples capturing future performance
Alpha Bank to see capital gain and retained stake revaluation
Cash consideration for stake sold received at closing
Earnouts Up to 60
Significant upside potential based on business plan
achievement and actual profitability
Additional payments to Alpha Bank within 4 years from Closing
Total price for business Up to 367
Referral
Agreementc.200
Locking in of material future fee income flow of c.€7-8m per
annum (on average) on top of transaction economics
Rebate paid to Alpha Bank, calculated as % of net revenues (for
duration of partnership)
Total value to the Bank
Partnership with Nexi offers significant benefits based on terms and structure
Key transaction terms (on 100% basis)
1
2
3
4
c.570
Description • MOU signed on 3 August 2021
between Alpha Bank and Nexi
S.p.A. to form long-term
partnership
• Strategic partnership with EU
payments leader offers unique
proposition with high growth
prospects in rapidly evolving Greek
market
• Structure ensures optionality for
further business development
and growth in earnings stream
Status Final contractual arrangements
under negotiation between parties
Impact Positive P&L impact and
~60bps CAD accretion
Timing Final agreement expected in
Q4 2021
Project Prometheus
7
Internal measures on track to deliver envisaged capital relief
Sale of Alpha Bank Albania
Riviera Description As part of the Bank’s strategy to sell sub-scale subsidiaries, it has launched a process to identify a suitable investor for Alpha
Bank Albania, thus releasing capital for higher growth markets
Status Transaction in binding offer stage with offers due in Q4 2021
Impact Expected RWA relief of €0.4bn Timing offers within Q4 2021
Sale of Alpha Bank London
Crown Description As part of the Bank’s strategy to sell sub-scale subsidiaries, it intends to launch a process to identify a suitable investor for Alpha
Bank London, thus releasing capital for higher growth markets
Status Transaction launch expected in Q4 2021
Impact Expected RWA relief of €0.2bn Timing signing within H1 2022
Synthetic securitization
Aurora Description Synthetic Securitisation of c. € 2bn performing SME/Corporate loans portfolio
Status Non Binding Offers received from investors
Impact Expected RWA relief of €1bn Timing concluded within Q4 2021
JV with international partner in RE market
Skyline
Binding Offers phase
Binding Offers phase
Description • Creation of a unique large-scale real estate investment platform in Greece
• Use of Alpha Astika Akinita (listed subsidiary) as vehicle for the transaction
• Focus on CRE across Office, Retail and Logistics
• Significant new revenue streams expected for the bank, with Skyline vehicle to establish long-term servicing agreement with
Alpha Real Estate
• JV structure allows Alpha Bank to capitalise further on the growth of the real estate market
Status Process to be launched in early September 2021
Impact Expected RWA relief of up to €0.4bn Timing offers within Q4 2021
8
Normalised Profit after Tax at €0.21bn for H1 2021
• Loss of interest income from Galaxy partially
offset by TLTRO benefit and new disbursements
• Expansion driven by loan growth, partnerships,
affluent customer segment and activity pickup
• Falling staff costs offset by higher other
• Reduction in CoR to benefit bottom line
NII € 1.5bn € 0.8bn ~€ 1.4bn
Net F&C inc. € 0.3bn € 0.2bn ~€ 0.4bn
Recurring opex € (1.04)bn € (0.5)bn ~€ (1.03)bn
Core PPI1 € 0.9bn € 0.5bn ~€ 0.8bn
Net income2 € 0.10bn € 0.21bn ~€ 0.32bn
RoTBV2 1% 6.1% ~5%
CoR4 180bps 87bps ~120bps
NPE ratio3 43% 26% ~13%
FL Total Capital5 16% 15% >14%
TBV5 € 7.7bn € 6.2bn ~€ 5.4bn
So
un
d a
nd
pr
ofi
tab
leS
oli
d b
ala
nc
e s
he
et
1| NII+NFC+Other income – rec. OpEx; 2| Normalized net income and RoTBV excluding COVID provisions, trading gains, opex related one-offs and NPE transaction costs; 3| Basis for ratio includes senior notes of the securitizations; Project Sky included in 2021E;
4| Underlying CoR, not including transaction costs and Covid-19 related charges; based on net loans. 5| H1 2021 Pro forma for Share capital increase of €0.8bn completed in July 2021
2020
• Revised from ~18% on Sky acceleration
• Resilient TBV levels post Galaxy deconsolidation
2021E
~10%ROTBV
Targets 2024EH1 2021
~€ 6.7bn TBV
~15.6%FL CET1%• Best-in-class performance among Greek
systemic banks at ECB’s 2021 Stress Tests,
consistent with previous exercise
9
Alpha Bank
3
9
Pages
• Business update
• Financial Performance Analysis
• Appendix
Macroeconomic Update
P&L
Volumes
Asset Quality
Capital
ESG
Segment information
20
24
29
37
43
52
54
10
Profit & Loss
(€ mn)
H1
20211H1
2020
yoy %
change
Q2
20211Q1
2021
qoq %
change
Net Interest Income 771 772 (0%) 371 400 (7%)
Net fee and commission Income 190 167 14% 105 84 25%
Trading Income1 91 218 (58%) 30 61 …
Other Income 21 12 72% 10 11 (6%)
Operating Income 1,073 1,169 (8%) 517 556 (7%)
Recurring Operating Expenses (519) (500) 4% (261) (258) 1%
Extraordinary (173) (19) … (13) (160) …
Total Operating Expenses (692) (520) 33% (274) (418) (35%)
Core Pre Provision Income 463 451 3% 226 237 (5%)
Pre Provision Income 381 649 (41%) 243 137 …
Impairment Losses on Loans (515) (568) (9%) (125) (391) (68%)
o/w Underlying (164) (334) (90) (77)
o/w Transactions related (351) - (34) (317)
o/w Covid related - (234) - -
Other Impairment Losses (15) (13) 20% (10) (6) 71%
Profit/ (Loss) before income tax (150) 68 … 109 (259) …
Income Tax (37) 21 (13) (23)
Profit/ (Loss) after income tax (186) 89 96 (282)
Galaxy & Cepal deconsolidation impact (2,140) - (2,140) -
Reported Profit/ (Loss) after income tax (2,327) 89 (2,044) (282)
Normalised Profit After Tax4 213 66 104 108
Net Interest Margin (NIM%) 2.2% 2.3% 2.1% 2.3%
Cost to Income ratio 53% 53% 54% 52%
H1 2021 Group P&L and Balance Sheet
Balance Sheet
(€ bn)30/06/21 31/03/21 30/06/20
YoY
change
Assets 70.5 71.2 68.6 1.9
Securities 10.4 10.0 9.9 0.5
Cash & CB 9.4 8.0 5.7 3.7
Net Loans 37.5 39.4 39.4 -1.9
Deposits 45.0 43.6 40.9 4.2
Tangible Equity 5.5 7.4 7.8 -2.3
CET1 ratio 14.8% 16.0% 17.2% …
Total Capital ratio 17.4% 18.3% 18.3% …
NPE ratio 26% 43% 43% …
NPE Cash Coverage 54% 49% 44% …
3
3
2
a.
c.
b.
On a normalized basis, H1 21 Profit After Tax4 stands at €213mn,
excluding a. trading income of €91mn and adjusting for b. extraordinary
operating expenses of €173mn and c. transactions related impairments of
€351mn for the period and d. Galaxy & Cepal deconsolidation impact
d.
€0.11bn
€0.21bn
€0.32bn
€0.10bn
FY21eQ1 21 Q2 21 H1 21
Normalised Profit After Tax4
1| pf for Galaxy and Cepal deconsolidation P&L impact of €2.1bn booked in Q2 21 trading line. 2| before Share Capital increase of €0.8bn completed in July 2021. 3| pro forma for SCI of €0.8bn completed in July 2021. 4| Normalised
Profit After Tax in H1 2021, adjusted for losses related to Project Galaxy of €2.1bn and excluding trading income of €91mn, non-recurring expenses of €173mn, transactions related impairment losses of €351mn and tax of €21mn. In
H1 2020, Normalised Profit After Tax excluding trading gains of €218mn, Covid-19 related impairments of €234mn, non-recurring expenses of €19mn and tax of €59mn
11
386 383389 389
381
359 356 359 356352
Q2 20 Q3 20 Q4 20 Q1 21 Q2 21
Businesses Individuals
Net credit
expansion
€0.4bn
(o/w +€0.6bn
Businesses,
- €0.2bn
Individuals)
Positive signs of growth in disbursements; lending spreads remain at healthy levels, also supported by new production
H1 21 New disbursements
Greece, € bn
0.2
1.1
2.3
1.0
Q2 21
1.2
0.1
0.1
Q1 21
2.1
H1 21
1.1
Businesses
Individuals
Q1 21 Q2 21 H1 21
Beginning of period 24.3 24.5 24.3
Disbursements 1.1 1.2 2.3
Repayments -0.8 -1.0 -1.9
PEs in Galaxy transaction 0.0 -0.3 -0.3
Net Flows to/from NPE 0.0 -0.1 -0.1
Other 0.0 0.1 0.1
End of period 24.5 24.4 24.4
Performing loans
Greece, € bn
Performing loans evolution
Group, € bn
11.2
16.4 17.4
11.2
17.016.9
Jun-20 Sep-20
11.2
Dec-20
11.1
Mar-21
17.6
10.8
3.8
Jun-21
17.7
10.8
5.4
FY21
Target
Businesses Individuals Senior Notes
PE Lending spreads over Gross loans
Greece, bps
high-yielding loan
repayments
1
1| Alpha Bank rate excluding subs, cards, overdrafts and merchant discounting.
Spread of new
production at
413bps in Q2 21
12
Mix shift towards core deposits continues; €1.4bn of inflows in GreeceDeposits evolution
Group, € bn
5.95.7
0.4 1.0
5.7Abroad
Jun-21
40.9
39.3
0.0
Abroad
Greece
Mar-21Jun-20
35.0
37.9
43.6 45.0
BusinessIndividual
Customer deposit
inflows of €1.4bn
QoQ
+ €1.4bn
Mix towards Core deposits
Greece, € bn
66%
32%
2%
Jun-20
75%
23%
2%
Mar-21
79%
20%State
2%
Jun-21
Core
Term
35.037.9 39.3
Group LCR & LDR
%
113% 118%
150% 143%164%
96% 96%
90% 90%
83%
70%
80%
90%
100%
110%
120%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
105%
110%
115%
120%
125%
130%
135%
140%
145%
150%
155%
160%
165%
170%
Jun-20 Sep-20 Dec-20 Mar-21 Jun-21
LCR
LDR
YoY
+€4.1bn
€ bn
ECB balances
Jun-20
TLTRO
Mar-21 Jun-21
12.9
11.9
12.9
% over
Total
Assets
19%
ECB Collateral
pledged
Credit claims
GGBs & T-bills
Other bonds
18% 18%
+€1bn
Y-o-Y
13
Net interest income remains under pressure from clean-up effort
6.9
364
Retrospective 2020 TLTRO
benefit booked in Q2
Q1 21
Funding
Deposits
1.8
(2.9)Bonds & Other
Q2 21
371
Retrospective 2020 TLTRO
benefit booked in Q1(24.7)
Q1 21
Reported400
(9.4)
375
NPEs
PEs
0.0
(0.4)
Q2 21
Reported
• PEs: Lower spreads on specific corporate repayments
• Deposits: Positive impact from repricing & mix shift offset by growing balances
• Funding: ECB benefit partly counterbalanced by Tier II cost
• Bond & other: Lower one-off income related to loans and GGB recycling
• Q1 TLTRO benefit: €24.7mn benefit related to H2 20
• Q2 Additional TLTRO benefit: €6.9mn for H2 20
Q2 2021 / Q1 2021 Comments
• NPEs: Galaxy and increased provisioning leading balances lower
14
Pick-up in activity and impact from partnerships drives fee growth
10.0
6.5
1.0
2.4
Q1 2021
NCI
Business credit related
1.3Asset management
Bancassurance
Cards & Payments
Other
Q2 21
NCI
84
105
QoQ
+€21mn (+25%)
YoY
+€23mn (+14%)
7.9
9.4
9.0
(8.9)
167H1 20
NCI
H1 21
NCI190
5.6
H1 21 2021-2024
€0.8bn
(22%)Non-Money Market €3.5bn
Asset Management – AuMs increase
€bnAuM Target
growth to 2024
• Business credit related: Increased loan fees on pick-up of activity
• Asset management: Mainly non-money market mutual fund fees
benefitting from AuM growth of €0.8bn in H1 21
• Bancassurance: €10mn related to early termination of previous
bancassurance agreement
• Cards & payments: Stronger transaction volumes
• Other: €11.8mn non-recurring benefit in first half of last year to modify
collateral agreements (CSA) affects year-on-year comparison
Comments
• in line with 2021E Target of €0.4bn
15
Benefits from staff and NPE reduction to offset near term cost pressure
YoY
~ € (1.03)bn
2021E target
85
173
70
H1 21 2021E BP Target
2024EBP Target
-60%
(-103)
NPA Management
Group Recurring, € mn
434
858 795
H1 21 2021E BP Target
2024EBP Target
Core Operations
Group Recurring, € mn
1| H1 20 Recurring pro-forma for Cepal by €11.4mn, i.e. CEPAL stand alone operating costs for the period 1/1-30/6/2020. HR: 8mn, G&As: 3, D&A: 0.5mn
• Staff costs: down on HR initiatives in Greece and
Cyprus
• G&A: increase yoy on higher IT and product related
costs on increased volumes, also linked with higher
revenues, as well as increased fees to Resolution fund
• D&A: increase reflecting heightened IT investments to
support the Bank’s transformation
12.3
4.2
(9.1)
H1 20
Recurring
pf for Cepal
Staff costs
G&A
D&A
H1 21
Recurring
512
519
1
16
NPE organic formation
Organic formation and underlying CoR remain better than FY guidance
43% 43% 43% 43%
26%44% 45%
47%
49%
54%
40%
45%
50%
55%
20%
30%
40%
50%
Jun-20 Sep-20 Dec-20 Mar-21 Jun-21
NPE % NPE Coverage
GroupNPE
Coverage %
NPE and Cash Coverage %
Greece, € bn
CoR driven by Transaction costs and COVID
% over net loans
Gross NPE
formation
€ bn
(0.1) (0.0) (0.0) 0.0 (0.0)
0.1 0.1 0.2
(0.3)(0.2)
(0.2)
(0.2)
(0.3) (0.3) (0.4)
(0.1) (0.1)
Q2 21
0.4
Q2 20
0.0
0.4
CPs
0.4
Q3 20
0.4
Q4 20 Q1 21
0.4
Inflows
o/w Moratoria
Cures &
repayments
1.2%
1.3%
1.5%
1.7%
0.8%
2.6%
1.2%
Q2 20
0.5%
Q3 20
4.0%3.2%
Q4 20
3.2%
Q1 21
0.9%0.4%
Q2 21
2.6%
5.8%Covid Related
Transaction costs
Underlying0.6
1.7
o/w 0.8
(0.8)
(0.3)
2021E
Accounting
Write-offs(0.0) (0.0) (0.0) (0.1) (0.0)
Note: Gross formation including curings, repayments, liquidations and debt forgiveness. Q1 21 and Q2 21 formation excludes Galaxy
17
NPE ratio down to 13% by end of 2021, outperforming BP target of 18%
Significant
improvement in the
actual NPE ratio delivered
Higher NPE cash
coverage which
increased by ~10pps yoy
Robust capital position
post completion of Share
Capital Increase with
Total Capital Ratio at
17.4%
NPE ratio (Group)¹
NPL ratio (Group)¹
Group NPEs, €bn
1| Basis for ratio includes senior notes of the securitization; 2| Over net loans; Underlying CoR for 2020 and 2021, not including transaction costs and Covid-19 related charges;
17%
26% ~13%
~8%
~2%
~2%
Cost of risk (bps)2 180bps ~120bps ~60bps
20.9
11.4
5.0
2.9
1.1
0.6
2024EDec-20 Jun-21
post
Galaxy
(1.3)(3.5)
2021
organic
formation
(0.7)
Sky 2022
organic
formation
Other
(0.9)
2021E
(0.4)
2022ESolarOrbitCosmos
(2.2)
30%
43%
87bps
47%
Jun-20 Dec-20 Jun-21
44%
54%
Group, NPE coverage (%)
18
2.6%
1.4%
SCI
16.0%
Galaxy & Cepal
impact
2.3%
14.8%
2.20%
(1.0%)
Internal
Capital
measures
Other
(0.23%)(2.85%)
18.3% 17.4%
Organic capital
generation
0.02%
Total Capital ratio
Mar-21
Inorganic
NPE reduction
CET1
Jun-21
pf SCI
Capital evolution in line with plan; exceeding regulatory expectations
Total Capital ratio quarterly evolution€ bn
8.1
€1.3bn
regulatory
Buffer over
14.0% CAD6.7
FL CAD
Mar-21
14.2% 12.7%
FL CAD
Jun-21pf SCI
CET1
16.5%15.4%
Total Capital ratio%, Fully Loaded
CAD
1
CAD
2023-24E
requirement2021-22E
requirement
Total capital evolution 2021 - 2024
2.8%
13.9% 14.0%
2021E
2.9%
2022E
OCR:14.0%
CET1:9.2%
16.7% 16.9%
2.8%
14.2%
2023E
2.7%
15.6%
2024E
OCR:14.5%
CET1:9.7%
17.0%
18.3%
%, Transitional
14.9% factoring
RWA relief from
transactions
expected to
complete in 2022
2
1| 14% 2020 OCR pre relief measures or 11% post relief measures excluding CCB 2.5% and OS-II buffer 0.5%. 2| Organic capital generation includes Q2 21 profit and RWA growth for the period.
Expected completion by H1 2022
19
Solid capital position confirmed by 2021 stress test results
~+1%
Stress tests2021
Resilient Capital Levels Improved capital depletion
Best in class Leverage ratio (fully loaded) Strong capital generation
6.1%(reported)
Starting
31.12.20
Baseline
31.12.23
Adverse
31.12.23
CET1 FL (%) 14.6% 17.3% 8.3%
CET1 FL (%) pf SCI 19.1% 10.2%
7.6%(pf SCI)
17.1%2.7%
Starting
31.12.20
(2.4%)
Ending
31.12.23
Baseline
Capital
generation
IFRS 9
17.4%
2023, Adverse scenario CET1 Transitional (%)
7.5pps8.6pps
6.3pps
2015
STs
2018
STs
2021
STs
Adverse scenario, ex-IFRS9
20
Alpha Bank
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• Business update
• Financial Performance Analysis
• Appendix
Macroeconomic Update
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Asset Quality
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ESG
Segment information
20
24
29
37
43
52
54
21
Growth expectations revised upwards despite the uncertainty related to«Delta» variant
Real GDP is expected to return to positive growth rates
from Q2 onwards, following a weaker than expected
recession in Q1 2021…
….and the observed weaker effect of lockdowns on
mobility. Domestic economic activity is expected to bounce back from the second
quarter of the year, re-entering a strong recovery phase marked by the
attraction of fresh investment and closing of the investment gap accumulated
during the previous decade.
The stringency index and community immobility moved in parallel since the
pandemic outbreak. However, from November 2020 onwards, the effect of
lockdown measures on community mobility is weakening.
The strong fiscal impulse is expected to remain in place in 2021,
underpinning households’ disposable income.
…supported by the strong fiscal impetus engineered by
the Greek government…
Sources: ELSTAT, Eurostat, Google Community Mobility Reports, Ministry of Finance, Stability Programme 2021
5.0% 5.3%
80
100
120
-15%
-10%
-5%
0%
5%
10%
Ι ΙΙ ΙΙΙ ΙV Ι ΙΙ ΙΙΙ ΙV Ι ΙΙ ΙΙΙ ΙV Ι ΙΙ ΙΙΙ ΙV Ι ΙΙ
2017 2018 2019 2020 2021 2021f 2022fReal GDP - Greece (q-o-q) Real GDP - Greece (y-o-y)
Alpha Bank ERD forecasts ESI - Greece (3m average, rhs)
-6.70%-7.20%
-0.3%
2.0% 2.9%
140%
160%
180%
200%
220%
-8%
-6%
-4%
-2%
0%
2%
4%
2020 2021f 2022f 2023f 2024fPrimary Balance (% GDP) Interest Expenditure (% GDP)Gross Public Debt (% GDP), rhs
-65-50-35-20
-5102540557085
100
Retail and Recreation* Grocery and Pharmacy Transit Stations*Workplaces* Residential Stringency Index
(*) Immobility Index: 7-day moving average of
Google's inverted community mobility index.
22
The upward trend of several leading economic indicators paves the way for a strong economic recovery from Q2 onwards
Savings ratio continued its upward trend amid gains in
households’ gross disposable income
Retail trade on an upward trajectory with additional private
sector deposits inflowing into the economy
Households’ disposable income continued to exceed private consumption, growing by
5.1% in Q1 2021, while the households’ gross savings (as % of disposable income)
rose by 6.1% on an annual basis.
Retail trade (volume index, nsa) continued its upward trend for the second consecutive
month (after five months of negative annual changes), reaching a 15.3% y-o-y
increase in May. Private sector deposits increased by €6.3bn in the Greek banking
system in the first half of 2021.
Both manufacturing production index and PMI remain on an upward trajectory from
November 2020 onwards, signifying an improvement in operating conditions across
the Greek manufacturing sector.
Manufacturers’ expectations are well above the threshold
of the expansion phase
Sources: ELSTAT, Eurostat, Bank of Greece, IHS Markit
-13%
-10%
-7%
-4%
-1%
2%
5%
8%
Gross savings ratio (as % of gross disposable income, 4-quarter Moving Average)Households gross disposable income (annual % change)Private Consumption (annual % change)
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
-8%
-4%
0%
4%
8%
Retail Trade, volume index (annual % change-6month Moving Average)Private Sector Deposit Flows (bn €-6month Moving Average), rhs
1st Lockdown 2nd Lockdown
30
35
40
45
50
55
60
-20%
-10%
0%
10%
20%
30%
40%
Manufacturing Production Index (annual % change) PMI, rhs
23
Business confidence recorded the highest performance
since the beginning of the pandemic
Business confidence in all sectors of the economy is in an expansionary phase
in July 2021, with business expectations in construction recording their highest
performance (148.6 units) since April 2000.
Despite the heavy toll of the pandemic on economic activity, house prices
remained resilient, growing by 4.3% in 2020, while, in Q1 2021, house prices
continued to rise by 3.2% y-o-y.
Despite the pandemic crisis, the upward trend of investment in construction
continued last year, having lost, only to a small extent, its growth dynamics.
According to 2021 EC Spring Economic Forecasts, investment in construction is
expected to increase sharply in 2021 and 2022.
Sources: Bank of Greece, IOBE, Eurostat, ELSTAT, European Commission (2021 Spring Economic Forecast)
House prices growth dynamics remained resilient, despite
the heavy toll of the pandemic
Investment in construction is expected to climb sharply
during 2021-2022
Business confidence on an expansionary phase; housing market and construction activity remained resilient during the pandemic
-60%
-40%
-20%
0%
20%
40%
60%
-10%
-5%
0%
5%
10%
I II ΙΙΙ IV I II ΙΙΙ IV I II ΙΙΙ IV I II ΙΙΙ IV I II ΙΙΙ IV I II ΙΙΙ IV I
2015 2016 2017 2018 2019 2020 2021
Private Building Activity (Volume in thous. m3), rhs
House Prices, lhs
Residential Investment, rhs
% annual changes
20.6%
22.6%
0
10
20
30
40
-40%
-20%
0%
20%
40%
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21f
20
22f
Non-residential construction, rhsResidential construction, rhsInvestment in construction (% annual change)
in bn €
ESI Industry
Construction
Retail Trade
Services
ESIIndustry
Construction Retail Trade
Services
ESIIndustry
Construction
Retail Trade
Services
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
-0.3 -0.2 -0.1 0.0 0.1 0.2 0.3 0.4 0.5 0.6
Level (H
-P)
m-o-m change
Pre-pandemic environment (Jan - Feb 2020) Beginning of tourism season 2020 (Jun - Jul 2020) July 2021
Downswing
Contraction Upswing
Expansion
24
Alpha Bank
3
9
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• Business update
• Financial Performance Analysis
• Appendix
Macroeconomic Update
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Asset Quality
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ESG
Segment information
20
24
29
37
43
52
54
25
Loan and deposit spreads
Net loan balances & spreads€ bn
Deposit mix & cost evolution€ bn, bps
Lending spreads (Greece and SEE) Deposit spreads (Greece and SEE)bps bps
End of
quarter
balances
39.4 39.8 39.4 39.4
37.5
396 393 397 397391
Q2 20 Q3 20 Q4 20 Q1 21 Q2 21
Net Loans Group loans spread
25%
75%
% Total
783 769 769 763 762
565 566573 572 559
395 394
385373 382
391 387
395 394 386
258 255 262 269 262
Q2 20 Q3 20 Q4 20 Q1 21 Q2 21
Consumer Credit
Small BusinessLoans
SEE
Large Corporates
Mortgages
25.8 27.3 30.1 31.3 33.9
15.0 14.4 13.7 12.3 11.2 40.9 41.7 43.8 43.6 45.0
(47)(49)
(51) (52) (51)
Q2 20 Q3 20 Q4 20 Q1 21 Q2 21
Core deposits Time deposits Group deposits spread
(18) (24) (23)(28) (25)
(56)(51)
(51) (53) (52)(50)(55)
(57) (57) (55)
Q2 20 Q3 20 Q4 20 Q1 21 Q2 21
SEEurope
TimeDeposits
Sight andSavings
Note: Lending Spreads are revised backwards and recalculated on interest bearing loan balances vs. net balances before.
26
NII and Net Fee and Commission income decomposition
Note: ΝΙΙ decomposition updated in line with new internal management reports, achieving greater analysis of customer data resulting in the most precise separation of recurring NII from one-off events (denomination N.3869, denounced etc.). This analysis also
led to the most accurate implementation of the Bank’s FTP policy.
NII decomposition€ mn
(49) (52) (55) (56) (56)(6)
5 642 26
393 391 397385
375
52 38 4029
26
Q2 20 Q3 20 Q4 20 Q1 21 Q2 21
Bonds & other Loans Funding Deposits
391382 388
400
371
Net Fee and Commission income decomposition€ mn
18 14 16 15 17
26 34 28 2834
158
912 13
1520
23 24 24
25
Q2 20 Q4 20
456
Q3 20
5
Q1 21 Q2 21
8477
85 84
105
Business credit related Other
Asset management
Bancassurance
Cards & Payments
27
Operating Expenses
Recurring OPEX evolution
Employees Branches
€mn€ mn H1 20 H1 21 yoy %
Staff costs (213.4) (211.9) (0.7%)
General Administrative
expenses(211.2) (226.8) 7.4%
Depreciation and
amortisation(75.9) (80.6) 6.2%
Recurring OPEX (500.5) (519.3) 3.8%
Extraordinary costs (19.3) (173.1) …
Total OPEX (519.8) (692.4) 33.2%
106 107 114 106 106
107 118 122 109 118
38 39 3943
37252 264 275
258 261
Q2 20 Q3 20 Q4 20 Q1 21 Q2 21
Depreciation &amortisation
Generaladministrativeexpenses
Staff costs
11,314
10,530 10,509 10,528 10,515
9,621
Dec-18 Dec-19 Jun-20 Dec-20 Mar-21 Jun-21
Greece 8,147 7,354 7,321 7,503 7,510 6,622
VSS Gr
-523
629580 549 519 511 501
Dec-18 Dec-19 Jun-20 Dec-20 Mar-21 Jun-21
Greece1 443 394 361 336 328 318
1 | Includes corporate and private banking centers. 2| including sabbaticals
VSS Gr
-836
2
Cepal
-818
28
Alpha Bank Group
(€ mn) Q2 20211 Q1 2021 Q4 2020 Q3 2020 Q2 2020qoq%
change
yoy %
change
Net interest income 371.0 399.6 388.0 381.8 390.7 (7.2%) (5.0%)
Net fee and commission income 105.4 84.3 83.8 84.8 77.5 25.1% 36.1%
Income from financial operations1 30.4 60.9 429.7 42.5 134.2 (50.2%) (77.4%)
Other Income 10.4 11.1 5.0 7.0 2.6 (5.6%) …
Operating Income 517.2 555.9 906.5 516.1 604.9 (7.0%) (14.5%)
Staff costs (105.6) (106.3) (113.7) (107.3) (106.4) (0.6%) (0.7%)
General administrative expenses (117.9) (109.0) (121.5) (117.8) (107.2) 8.2% 10.0
Depreciation and amortization (37.4) (43.1) (39.4) (39.2) (38.4) (13.2%) (2.4%)
Recurring Operating expenses (260.9) (258.4) (274.6) (264.3) (251.9) 1.0% 3.6%
Extraordinary costs (13.0) (160.1) (94.8) (4.2) (8.9) … …
Total Operating expenses (274.0) (418.4) (369.4) (268.6) (260.8) (34.5%) 5.1%
Impairment losses on loans (124.6) (390.6) (569.5) (168.6) (260.6) (68.1%) (52.2%)
Other impairment losses (9.6) (5.6) 1.3 (2.0) (3.7) 71.0% …
Profit / (Loss) before income tax 109.0 (258.7) (31.1) 77.0 79.8 … …
Income Tax (13.4) (23.4) 1.5 (32.7) 22.0 … …
Profit / (Loss) after income tax from continuing
operations95.6 (282.1) (29.6) 44.3 101.8 … …
Profit / (Loss) attributable to shareholders 95.7 (282.2) (29.7) 44.3 101.8 … …
Net interest Margin (NIM) 2.1% 2.3% 2.2% 2.2% 2.3%
1| pf for Galaxy and Cepal deconsolidation P&L impact of €2.1bn booked in Q2 21 trading line
29
Alpha Bank
3
9
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• Business update
• Financial Performance Analysis
• Appendix
Macroeconomic Update
P&L
Volumes
Asset Quality
Capital
ESG
Segment information
20
24
29
37
43
52
54
30
3.4
6.0
1.7
33.9
11.2
1.4
12.9
Jun-21
3.4
8.0
1.7
31.3
12.3
1.6
12.9
Dec-20
Balance sheet composition
Asset split
€ bn
Liabilities and Equity split€ bn
3.9
5.3
0.8
37.5
10.4
3.3
9.4
Jun-21
Net
loans
PPE
DTA
Other
Securities
Cash
Due from Banks
Other (Incl. HFS)
Due to Banks
excl. ECB
45.1
ECB
Time
deposits
Core
deposits
Debt
securities
Equity
Other
70.5
Net
loans
PPE
DTA
Other
Securities
Cash
Due from Banks
Other (Incl. HFS)
Due to Banks
excl. ECB
ECB
Time
deposits
Core
deposits
Debt
securities
71.270.5
43.6
4.0
5.3
0.8
39.4
10.0
3.8
8.0
Dec-20
71.2
31
Deposits flow per quarter
Alpha Bank deposits evolution in Greece€ bn
35.0 35.838.0 37.9 39.3
1.32.8
1.2 2.4
(0.5) (0.6) (1.3)(1.0)
Jun-20 Core Time Sep-20 Core Time Dec-20 Core Time Mar-21 Core Time Jun-21
Δ Time
Δ Core
35.0 35.8 38.0 37.9 39.30.7 1.3
(0.6)
0.90.1 0.9 0.5 0.5
Jun-20 Bus. Indiv. Sep-20 Bus. Indiv. Dec-20 Bus. Indiv. Mar-21 Bus. Indiv. Jun-21
Δ Individuals
Δ Business
Alpha Bank deposits evolution in Greece€ bn
Deposits breakdown – June 2021
Note: Business deposits include State deposits
Deposits breakdown – June 2021
Core79%
Time21%
Individuals68%
Business32%
Q3:
€0.8bn
Q4:
€2.2bn
Q1:
(€0.1bn)
Q2:
€1.4bn
32
Securities portfolio breakdown
GGBs
5.2
T-bills
0.8
Mutual Funds & Equities
0.2
Other/ECB eligible
4.210.4bn
Securities portfolio breakdownBook value, Jun-21, € bn
▪ The “Other/ECB eligible” bonds of €4.2bn is broken down to the following
categories:
• €2.2bn other sovereign bonds
• €0.3bn bonds issued by supranationals
• €1.1bn bonds by other issuers &
• €0.6 bn bonds issued by Greek corporates
2.9 3.0
2.0 2.2
4.9
Amortised
Cost
Mar-21
5.2
Jun-21
FVOCI
0.2 GGB pre-tax
unrealised gains0.2
GGBs portfolio€ bn
33
Business Volumes
(€ mn) Jun 2021 Mar 2021 Dec 2020 Sep 2020 Jun 2020 % YoY
Group Gross Loans 43,533 49,785 49,130 49,148 48,756 (10.7%)
Mortgages 12,679 16,929 17,008 17,073 17,181 (26.2%)
Consumer Loans 3,254 4,131 4,187 4,208 4,207 (22.7%)
Credit Cards 1,162 1,170 1,257 1,309 1,297 (10.4%)
Small Business Loans 3,137 5,191 5,054 4,985 4,789 (34.5%)
Medium and Large Business Loans 23,301 22,364 21,623 21,574 21,281 9.5%
of which:
Greece 36,976 43,260 42,538 42,485 41,999 (12.0%)
Mortgages 9,560 13,833 13,893 13,955 14,049 (32.0%)
Consumer Loans 2,776 3,657 3,715 3,736 3,734 (25.7%)
Credit Cards 1,128 1,137 1,223 1,274 1,263 (10.6%)
Small Business Loans 3,076 5,129 4,990 4,920 4,724 (34.9%)
Medium and Large Business Loans 20,436 19,504 18,717 18,600 18,229 (32.0%)
of which: Shipping Loans 2,517 2,500 2,234 2,213 2,301 9.38%
Southeastern Europe 6,112 6,100 6,196 6,287 6,370 (4.1%)
Accumulated Provisions (6,081) (10,506) (9,841) (9,437) (9,419) (35.4%)
Group Net Loans 37,500 39,376 39,380 39,808 39,428 (4.9%)
Customer Assets 51,451 49,562 49,332 46,661 45,776 12.4%
of which:
Group Deposits 45,032 43,612 43,831 41,657 40,868 10.2%
Sight & Savings 33,870 31,322 30,141 27,288 25,845 31.0%
Time deposits & Alpha Bank Bonds 11,162 12,290 13,690 14,369 15,024 (25.7%)
Greece 39,341 37,922 38,035 35,804 34,991 12.4%
Sight & Savings 30,894 28,445 27,271 24,471 23,138 33.5%
Time deposits & Alpha Bank Bonds 8,448 9,477 10,764 11,333 11,852 (28.7%)
Southeastern Europe 5,170 5,142 5,222 5,267 5,290 (2.3%)
Money Market Mutual Funds 80 86 93 101 105 (24.3%)
Other Mutual Funds 2,292 1,971 1,741 1,530 1,485 54.3%
Private Banking 4,047 3,893 3,667 3,372 3,317 22.0%
34
Breakdown of loans portfolio – June 2021
Real Estate
4%
Media &
Communication
1%
Transportation
8%
Agriculture
1%
Energy
2%
Construction
5%
Tourism
5%Other
14%
Manufacturing
10%
Households
39%
Trade
11%€43.5bn
Consumer loans
7%
Credit Cards
3%
SBLs
7% Mortgages
29%
Wholesale loans
54%
Passenger Vessels
4%
Handysize/Handymax (Bulk Carriers)
16%
Capesize (Bulk Carriers)
10%
Panamax (Bulk Carriers)
21%
Product (Tankers)
11%
Panamax (Tankers)
2%
Aframax (Tankers)
5%
Suezmax (Tankers)
10%VLCC (Tankers)
4%
Containers
12%
LNG
5%
€43.5bn
€2.5bn
Total Group loans – per segment€ bn
Tankers
32%
Dry Bulk
47%
Group Loans portfolio structure € bn
Shipping loans portfolio structure€ bn
35
New disbursements of €1.2bn in Q2 2021
New disbursements – per category€ mn
Q2 2021 Business disbursements – per sector
Agriculture
2%
Entertainment
1%
Health
6%
Real Estate
4%
Other
5%
Tourism
6%
Construction
8%
Energy
11%Manufacturing
17%
Transportation
19%
Trade
21%
Loan disbursements of €1.2bn in Q2 2021
90% to business, 10% to individuals
Business disbursements primarily towards sectors that drive the economy
such as transportation, manufacturing, trade and energy
€1.2bn
Q1 20 Q2 20 H1 20 Q1 21 Q2 21 H1 21
Individuals 64 84 149 60 122 183
Business 1,575 938 2,512 1,055 1,049 2,104
Total 1,639 1,022 2,661 1,115 1,171 2,286
36
Wealth management evolution
Asset Management balances€ mn
Alpha Private Bank balances€ mn
0.5 0.5 0.6 0.7 0.7
2.8 2.8 2.9 2.9 3.0
1.0 1.01.1
1.2 1.24.3 4.3
4.64.8 4.9
Jun-20 Sep-20 Dec-20 Mar-21 Jun-21
Discretionary Advisory Execution Only
0.6 0.6 0.7 0.7 0.7
1.3 1.31.5
1.72.0
0.1 0.1
0.0
0.0
0.0
2.0 2.0
2.22.4
2.8
Jun-20 Sep-20 Dec-20 Mar-21 Jun-21
Money Market Mutual Funds
Non Money Market Mutual Funds
Other AUM
+14% +40%
37
Alpha Bank
3
9
Pages
• Business update
• Financial Performance Analysis
• Appendix
Macroeconomic Update
P&L
Volumes
Asset Quality
Capital
ESG
Segment information
20
24
29
37
43
52
54
38
(186)
(994)
(617)
(124) (94) (63)
3 72
2018 2019 2020 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21
Gross organic NPE formation in Greece per segment
Gross formation (Organic) - Wholesale€ mn
Gross formation (Organic) - SBL€ mn
Gross formation (Organic) - Retail€ mn
(326)
(495)
(155)
(36) (0)
13
(15)
19
2018 2019 2020 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21
Gross formation (Organic) - Mortgages€ mn
(20)
(373)(324)
(64) (65) (55)
9 29
2018 2019 2020 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21
Gross formation (Organic) - Consumer€ mn
160
(126) (141)
(24) (28) (22)
8 24
2018 2019 2020 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21
(461)
(192)
8034 50 35
(7)(80)
2018 2019 2020 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21
Note: Gross formation including curings, repayments, liquidations and debt forgiveness. Q1 21 and Q2 21 formation excludes Galaxy.
39
Auctions and repossession activity evolution
Auctioned properties (Conducted) per quarter
REO portfolio evolution (entries/exits) – Greece€ mn
525
37%0%31%
Q2 2019
42%
Q1 2019 Q3 2019
40% 41%
Q4 2020Q4 2019
40%
Q1 2020
146
Q2 2020
036%
Q3 2020
34%0%
Q1 2021 Q2 2021
789
558
775
1.782
412 374
0
unsuccessful % of successful over conducted auctions
No conducted
auctions
due to Covid-
19
Sales
-58
REO
Portfolio
31.12.18
122
Sales REO
Portfolio
30.06.21
AcquisitionsREO
Portfolio
31.12.19
7
Acquisitions
40
-14
Acquisitions Sales REO
Portfolio
31.12.20
-110€0.7bn
€0.8bn€0.8bn
REO portfolio
4,0k properties
of €0.80bn value
Auction’s activity initiated again in Q2 following Q1 21 suspension
due to COVID-19 pandemic measures
During H1 21, the Bank continued with its disinvestment strategy
through the completion of €36mn REO sales
Sales in Greece included both commercial as well as residential
assets
Cyprus and SEE sales included both granular as well as a large
ticket transaction
1| BV of sales- include also 23mn related to the sale of the Skywalker Project. SPA signed during 2020 and transaction fully completed during Feb-21. Sale of assets part of Jupiter transaction are excluded from the presented
graph.
No conducted
auctions
due to Covid-
19
€0.8bn
1
40
Detailed overview of Alpha Bank’s asset quality by portfolio - Greece(€ bn) Wholesale SBL Mortgages Consumer Total
Gross loans 20.4 3.1 9.6 3.9 37.0
(-) Accumulated Provisions (1.4) (0.7) (0.8) (1.4) (4.4)
Net loans 19.1 2.3 8.7 2.5 32.6
NPLs 1.2 1.0 1.5 1.6 5.2
NPL ratio1 5.7% 31.2% 15.3% 41.3% 14.1%
NPEs 2.6 1.4 2.9 2.0 8.8
NPE ratio1 12.9% 44.5% 29.9% 50.1% 23.8%
NPL collateral 0.6 0.4 1.1 0.1 2.2
NPE collateral 1.6 0.6 2.3 0.2 4.7
Coverage ratio
NPLs 1.2 1.0 1.5 1.6 5.2
(+) Forborne NPLs < 90 dpds 1.2 0.4 1.3 0.3 3.2
(+) Unlikely to pay 0.3 0.0 0.1 0.0 0.4
NPEs 2.6 1.4 2.9 2.0 8.8
Forborne NPLs >90dpd 0.5 0.4 0.8 1.4 3.0
Forborne NPLs <90dpd 1.2 0.4 1.3 0.3 3.2
Performing forborne 0.4 0.7 2.4 0.4 3.9
Total forborne 2.1 1.5 4.5 2.1 10.1
117%
52% 76% 54% 57% 29% 87% 72% 84%
49%
54%
60% 39% 44%
74% 79%
9% 11% 43%
53%
171% 112% 115%
98% 131%
109% 96% 83%
126% 102%
NPL NPE NPL NPE NPL NPE NPL NPE NPL NPE
Collateral
Cash
1| Total ratio takes into account the senior notes.
41
Detailed overview of Alpha Bank’s asset quality by portfolio - Group(€ bn) Wholesale SBL Mortgages Consumer Total
Gross loans 23.3 3.1 12.7 4.4 43.5
(-) Accumulated Provisions (2.1) (0.8) (1.7) (1.5) (6.1)
Net loans 21.2 2.4 11.0 2.9 37.5
NPLs 1.9 1.0 2.6 1.8 7.3
NPL ratio1 8.2% 31.8% 20.4% 40.2% 16.7%
NPEs 3.7 1.4 4.1 2.2 11.4
NPE ratio1 15.8% 44.9% 32.5% 48.8% 26.1%
NPL collateral 1.0 0.4 1.5 0.2 3.1
NPE collateral 2.1 0.6 2.8 0.3 5.8
Coverage ratio
NPLs 1.9 1.0 2.6 1.8 7.3
(+) Forborne NPLs < 90 dpds 1.4 0.4 1.4 0.4 3.6
(+) Unlikely to pay 0.3 0.0 0.1 0.0 0.5
NPEs 3.7 1.4 4.1 2.2 11.4
Forborne NPLs >90dpd 0.8 0.4 1.5 1.4 4.1
Forborne NPLs <90dpd 1.4 0.4 1.4 0.4 3.6
Performing forborne 0.6 0.7 2.5 0.5 4.3
Total forborne 2.8 1.5 5.4 2.2 11.9
109% 57% 76% 54% 65% 41%
87% 72% 84% 54%
52%
58% 38% 44%
58% 68%
11% 13% 42%
51%
161%
115% 115% 98%
124% 109% 98% 85%
126% 105%
NPL NPE NPL NPE NPL NPE NPL NPE NPL NPE
Collateral
Cash
1| Total ratio takes into account the senior notes.
42
Excellent track record in off-loading the most problematic part of the NPEs
Q2 2021
Q3 2020
Q4 2018
Q4 2018
Q2 2018
Q3 2017
Q1 2018
Q4 2017
Portfolio comprised of Business Loans, Mortgages and
other Retail loans
SMEs loan portfolio secured with real estate assets
Portfolio of non-performing unsecured consumer and small
business loans
SMEs loan portfolio secured with real estate assets
Significant contribution in international assets deleveraging
Positive financial impact and capital ratio accretive
transaction for the Group
Portfolio of non-performing unsecured consumer and small
business loans
Syndicated non-performing corporate loan
c. €1.1bn
c. €1.1bn
c. €1.0bn
€264mn
€22mn
c. €0.9bn
€82mn
€10.8bn
“Project Mercury”
“Project Galaxy”
“Project Venus”
“Corporate Loan Sale”
“Project Mars”
“Project Neptune”
“Project Jupiter”
“Corporate Portfolio”
“Retail Portfolio”
Size Completion Transaction details
43
Alpha Bank
3
9
Pages
• Business update
• Financial Performance Analysis
• Appendix
Macroeconomic Update
P&L
Volumes
Asset Quality
Capital
ESG
Segment information
20
24
29
37
43
52
54
44
Regulatory Capital and Capital Requirements
€ mn
5,9875,516 4,877 4,878
5,892
(471)
(1,419)
780 11,013
OrdinaryEquity
Intangibles Tangiblebookvalue
DTADeductionfrom CET1
Other CET1capital
Hybrids Tier 1 LowerTier II
TotalCapitalRatio
7.9% Tangible book value / Tangible Assets
Equity to regulatory capital bridge
2020 OCR
(pre)
0.5%
2.0%2.0%
4.5%
1.5%
3.0%
2.5%
4.5%
1.5%
2020 OCR
(post relief measures)
3.0%
14.0%
11.0%O-S II
AT1
Pillar 1
Tier 2
P2R
CCBComposed by
CET 1 (1.7%)
AT1 (0.55%)
Tier 2 (0.75%)
Overall Capital Requirements
Composed
entirely by
CET 1
%
1| Excluding CCB 2.5% and OS-II buffer 0.5%
1
45
3.03.0
0.20.7
Jun-21
(phased-in)
Jun-21
(fully loaded)
0.6
3.93.5
Group RWAs and Regulatory Capital
Group Risk Weighted Assets€ bn
(€6.2bn)
0.11.5
OperationalMarket
39.6
3.2
Mar-21
(6.1)
Credit
38.1
(0.0)
33.5
1.43.2
Jun-21
44.3
Credit Market Operational
Credit Risk Weights per portfolio
58%
103%
66%
Performing Net NPE Total Loan PortfolioRWA Density
DTA & Tax Credit with CET1 Capital€ bn
DTA 250%
RWf
DTC 100%
RWf
CET1 4.9 4.0
DTC
IFRS9
Other DTA
%
Transitional arrangements - IFRS 9 and B3 DTA
Amortisation 2020 2021 2022 2023 2024
IFRS 9 -239 -319 -398 -398
DTA Basel 3 -39 -39 -39 -39 -39
€ mn
46
Capital position meeting regulatory expectations and management targets
Total Capital and CET1 ratios, (% transitional)
Regulatory capital evolution
16.7% 16.9% 17.0%
18.3%
13.9% 14.0% 14.2%15.6%
2.8% 2.9% 2.8%
2.7%
2021E 2022E 2023E 2024E
CET1 ratio
CET1:
9.7%
OCR:
14.5%
2023-24E
requirement
CET1:
9.2%
OCR:
14.0%
2021-22E
requirement
Total Capital and CET1 ratios, Fully loaded
Regulatory capital evolution
14.5%
15.7%
16.9%
18.3%
11.6%12.8%
14.1%15.6%
2.9%
2.9%
2.8%
2.7%
2021E 2022E 2023E 2024E
CET1 ratio
CET1:
9.7%
OCR:
14.5%
2024E
requirement
12.4% factoring
RWA relief from
transactions
expected to
complete in 2022
14.9% factoring
RWA relief from
transactions
expected to
complete in 2022
47
MREL strategy and issuance plan
1| The combined buffer requirement (CBR) applies on top of MREL target
MREL target was communicated in April 2021 and is in line with Group’s
expectations 22.76% of RWAs1.
Extended transitional period until 1 January 2026 in order to reach the final
MREL target (in line with the Greek banking system).
A binding interim target of 14.02% of RWAs1 must be met by 01 January 2022.
Currently no subordination requirements.
Alpha Bank’s MREL strategy for 2021
Alpha Bank is committed to fully abide to regulatory thresholds as to MREL
interim and final targets set.
Alpha Bank intends to issue capital (own funds instruments) from Holdco and
senior instruments from Opco to get capital benefit and funding cost
optimization.
The two Tier II transactions placed in the market form part of this commitment.
Based on the Business Plan of the Bank, a benchmark senior preferred
transaction is envisaged for H2 2021.
0.90%
16.40%
3.25%
14.02%
17.27% MREL target
(incl. CBR)
14.02% MREL target
Interim MREL target
(incl. CBR)
Distance to interim
MREL target
CBR
MREL Target
CBR
Interim MREL
Target
MREL GAP
Total Capital Ratio OpCo Group H1 2021
(pro-forma including Share Capital Increase)
48
Alpha Bank successfully concluded the 2021 EU-wise stress test
▪ Alpha Bank successfully concluded the 2021 EU-
wide Stress Test. Under the baseline scenario, the
capital generation for the 3-year period was 2.8%
absorbing 2.4% IFRS 9 phase-in, resulting in 2023
CET1 transitional ratio of 17.4%. Under the adverse,
the capital depletion for the 3-year period in the adverse
scenario was 8.7%, of which 2.4% is due to IFRS 9
impact
▪ The Stress Test methodology does not take into account
capital strengthening (i.e. Tier II, Share Capital
Increase) and balance sheet de-risking (i.e. Galaxy),
events post year end
Stress Test results performed by ECB
Stress Test results pro forma Share Capital Increase conducted in July 2021¹
1|The pro-forma calculations were conducted by the Bank and have not been quality assured by the ECB as part of the Stress Test exercise
31/12/2020 31/12/2020 – 31/12/2023 31/12/2023 31/12/2023
Starting point IFRS 9 impact Baseline Adverse
CET1 (in Euro million) 7,730 7,915 3,753
RWAs2 (in Euro million) 45,347 45,403 44,733
CET1 transitional (%) 17.1% 2.4% 17.4% 8.4%
CET1 fully loaded (%) 14.6% 17.3% 8.3%
Leverage Ratio (fully loaded) 10.7% 13.0% 6.1%
31/12/2020 31/12/2020 – 31/12/2023 31/12/2023 31/12/2023
Starting point IFRS 9 impact Baseline Adverse
CET1 (in Euro million) 7,730 8,740 4,636
RWAs2 (in Euro million) 45,347 45,590 45,048
CET1 transitional (%) 17.1% 2.4% 19.2% 10.3%
CET1 fully loaded (%) 14.6% 19.1% 10.2%
Leverage Ratio (fully loaded) 10.7% 14.4% 7.6%
49
EU-wide stress tests results overview
Source: EBA and company financial disclosure. 1 | Last year of ST period. 2 | Bank’s calculation which has not been quality assured by the ECB as part of the stress test.
2021 stress test CET1 FL(1)
Adverse scenario, %
▪ Alpha Bank has successfully concluded the 2021 EU-wide stress test
▪ No hurdle rate or capital thresholds were applied for this exercise but was designed to be used as an important input in the Supervisory Evaluation Process (SREP)
▪ The starting point of the exercise was 31-Dec-20, and does not include capital strengthening (i.e. Tier II issuance, Share Capital Increase) and balance sheet
de-risking (i.e. Galaxy transaction) actions post Dec-20 which would further increase Alpha Bank’s buffer vs its peers
▪ Alpha Bank’s CET1 FL pro forma for share capital increase in July 2021 in adverse scenario is at 10.2%(2)
▪ During the past four stress tests, Alpha Bank’s profitability, asset quality and capital position have helped Alpha Bank outperform its peers
▪ While the adverse scenario results have differed over the years, Alpha Bank’s strong capital position has been consistently proven
Historical stress test CET1 FL(1)
Adverse Scenario, %
6.5%
2015 20182014 2021
8.1%
2.1%
9.7%
-0.8%-0.4%
8.3%
6.8%
Greek Peers AverageAlpha Bank
Peer 2Alpha Bank
6.5%
Peer 1
7.6%
Peer 3
8.3%
6.4%
50
Corporate structure: minimal differences with figures expected to converge
Balance Sheet1
(€ bn)
Alpha
Services and Holdings
Group
Alpha
Bank
Group
Comments on current delta
Cash 10.1 10.1
Due from banks 3.3 3.3
Securities 10.4 9.7
Net loans 37.5 37.3
PPE 0.8 0.8
DTA 5.3 5.3
Other 3.9 3.8
Total Assets 71.1 70.2
Due to banks 14.3 14.3
Deposits 45.0 45.3
Debt securities 1.7 1.7
Other 3.4 2.7
Total Liabilities 64.4 64.1
Total Equity 6.7 6.2
Total Liabilities and Equity 71.1 70.2
Alpha Life (insurance) securities portfolio & mezzanine
/ junior Galaxy notes
The difference between the consolidated ratios of Alpha
Bank Group and of Alpha Services and Holdings Group is
mainly due to:
i. the cash reserves of the Alpha Services Holdings
Group which are deposited to the Bank and
ii. the net balances of unsecured NPE consumer
loans that will be part of upcoming NPE sales
(Project Orbit)
Considering the above, the consolidated ratios of the two
companies are expected to converge
Capital1
(%)
Alpha
Services and Holdings
Group
Alpha
Bank
Group2
CET1 ratio 14.8% 13.7%
Tier 1 ratio 14.8% 13.7%
CAD ratio 17.4% 16.4%
RWAs (€ bn) 38.4 37.9
1 | Pro forma for share capital increases (€0.8bn at Alpha Services and Holdings Group and €1bn at Alpha Bank Group). 2 | The €1.0 billion share capital increase of Alpha Bank Group comprises €0.2 billion excess cash of Alpha
Services and Holdings Group and €0.8 billion share capital increase of Alpha Services and Holdings Group which was completed on 8 July 2021.
Net balances of unsecured NPE consumer loans that
will be part of upcoming NPE sales (Project Orbit)
Alpha Services & Holdings’ cash reserves are kept as
deposits in the Bank
Insurance mathematical reserves of Alpha Life
Alpha Services & Holdings’ tax liabilities from H1 2020
income
Mainly due to cash reserves of Alpha Services & Holdings
and unsecured NPEs consumer loans
51
Company structure and resolution strategy
▪ On April 2021, the Group completed the demerger of “Former” Alpha Bank S.A. by way of hive-down of the banking business to the newly incorporated “New” Alpha
Bank S.A. Concurrently, the Group was renamed Alpha Services and Holdings S.A.
– The demerger means that the ultimate parent company of Alpha Bank Group is now Alpha Bank Services and Holdings S.A.
– No material change for investors as there has been no material change to the Group’s existing operating companies or core banking business
▪ The preferred resolution strategy for the Group consists of a Single Point of Entry (SPE) bail-in strategy through the “New” Alpha Bank S.A.
– Alpha Services and Holdings S.A. will be the sole issuer of external capital instruments in addition to the outstanding Tier 2 instruments
– “New” Alpha Bank S.A. will be the sole issuer of external MREL debt and funding instruments
New organisational structure(1)
Op
era
tin
g e
nti
ty
Alpha Services and
Holdings S.A. (2)
(“Former” Alpha Bank S.A.)
“New” Alpha Bank S.A.Issuer of funding and
MREL instruments
Issuer of own funds
(CET1, AT1 and T2)
MR
EL
/ Fu
nd
ing
Ho
ldin
g Cap
ital
1 | Simplified group structure (the description of “New” and “Former” is for illustrative purposes). 2 | Parent of Alpha Bank S.A. which has retained the following main scope of business: (a) investment
services, (b) insurance, (c) accounting and tax services and (d) issuance of own funds
100%
52
Alpha Bank
3
9
Pages
• Business update
• Financial Performance Analysis
• Appendix
Macroeconomic Update
P&L
Volumes
Asset Quality
Capital
ESG
Segment information
20
24
29
37
43
52
54
53
Alpha Bank demonstrates a positive trend in ESG scores and evaluations by international analysts
2015 2016 2017 2018 2019 2020 2021
MSCI ESG Rating
(scale CCC-AAA)B B BB BBB A ΑΑ Not scored yet
FTSE4Good Emerging Index 🗸 🗸 🗸 🗸 🗸🗸
ISS ESG Quality Score
(score 1-10, 1 indicates lower risk and better
disclosure)
Environment: 2
Social: 2
Governance: 8
November 2018
Environment: 1
Social: 2
Governance: 9
October 2019
Environment: 1
Social: 2
Governance: 4
December 2020
Environment: 1
Social: 2
Governance: 5
July 2021
Vigeo Eiris Best Emerging Market Performers 🗸 🗸Not scored yet
Climate Change CDP Awareness/C Management/B- Awareness/C Awareness/C Not scored yet
Bloomberg Gender Equality Index🗸
(Index 2019)
🗸
(Index 2020)
🗸
(Index 2021)
Not scored yet
(Index 2022)
Athex ESG Index🗸
Memberships in Associations & Organisations
Alpha Bank's sustainability journey
Alpha Bank significantly
contributes to 9 SDGs
Alpha Bank, signed (August 2019) the six
Principles for Responsible Banking (PRB) and
set targets for the implementation of the Principles
of Responsible Banking
Self assessment of the Bank’s practices against the
expectations set out by the European Central Bank (ECB) in
the Guide on Climate-related and environmental risks, has
already been performed in order to record and efficiently
manage any physical and transitional risk.
ECB GUIDE on climate related
and Environmental Risks
54
Alpha Bank
3
9
Pages
• Business update
• Financial Performance Analysis
• Appendix
Macroeconomic Update
P&L
Volumes
Asset Quality
Capital
ESG
Segment information
20
24
29
37
43
52
54
55
SEE Operations
1| Country View
€ mn Δ% Δ% Δ% Δ%
Jun-21 Romania yoy Cyprus yoy Albania yoy Total SEE yoy
Deposits 2,548 (1.6%) 2,102 (4.5%) 520 4.2% 5,170 (2.3%)
Gross Loans 2,655 0.0% 3,165 (7.9%) 292 5.0% 6,112 (4.1%)
Mortgages 1,286 7.8% 1,720 (6.8%) 82 13.8% 3,088 (0.7%)
Consumer Credit 240 5.4% 218 (7.3%) 42 14.7% 500 0.1%
Businesses 1,129 (8.5%) 1,227 (9.7%) 169 (0.7%) 2,524 (8.6%)
NPE ratio 6.5% 72.7% 16.9%
NPE Cash coverage 82% 68% 40%
NPE Total coverage 141% 112% 131%
NPL ratio 3.4% 61.7% 10.8%
NPL Cash coverage 157% 80% 63%
NPL Total coverage 213% 121% 150%
Total Operating Income 67.4 (0.8%) 38.7 (21.9%) 9.2 (1.0%) 115.3 (9.1%)
Operating Expenses (pre O/H allocation) (55.9) 5.8% (31.1) (14.1%) (9.6) 5.2% (96.7) (1.6%)
Impairment Losses (0.8) (93.3%) (318.8) … (1.4) … (321.1) …
Profit Before Tax (pre O/H allocation) 10.6 … (311.2) … (1.8) … (302.4) …
Branches 131 17 34 182
Employees 1,995 515 416 2,929
1
56
Group Results by Business Unit
(€ mn)
RetailCommercial &
CorporateSE Europe
Investment
Banking &
Treasury
Asset
ManagementOther Group
Jan-Jun Jan-Jun Jan-Jun Jan-Jun Jan-Jun Jan-Jun Jan-Jun
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Operating Income 370.4 385.9 282.1 311.5 115.3 126.8 245.3 311.9 46.8 34.0 (2,114.5) (1.4) (1,054.6) 1,168.7
Net Interest Income 286.5 327.8 257.0 260.9 91.2 101.3 129.2 74.3 5.9 7.3 0.9 0.4 770.6 771.9
Net fee and Commission Income 71.2 51.3 51.5 51.2 19.0 16.7 14.3 22.4 33.8 25.1 (0.0) (0.1) 189.7 166.7
Trading & Other 12.7 6.8 (26.3) (0.6) 5.1 8.8 101.7 215.2 7.1 1.6 (2,115.3) (1.7) (2,014.9) 230.2
Operating Expenses (289.2) (273.2) (81.3) (79.4) (104.4) (111.2) (16.1) (14.3) (18.7) (17.4) (182.7) (24.0) (692.4) (519.6)
Staff Costs (117.0) (111.2) (32.0) (36.0) (43.5) (47.4) (6.0) (6.0) (10.0) (9.2) (9.0) (3.9) (217.5) (213.8)
General Administrative Expenses (129.1) (121.7) (34.3) (29.2) (47.5) (51.0) (8.0) (6.6) (6.3) (6.0) (71.5) (15.5) (296.6) (230.0)
Depreciation & Amortisation (43.1) (40.3) (15.0) (14.3) (13.4) (12.8) (2.1) (1.7) (2.4) (2.1) (4.5) (4.6) (80.6) (75.9)
Expenses for VSS (97.7) (97.7)
Pre Provision Income (PPI) 81.2 112.7 200.9 232.1 10.9 15.6 229.1 297.5 28.1 16.6 (2,297.1) (25.4) (1,747.0) 649.1
Impairment Losses on Loans (210.2) (280.1) 16.7 (223.4) (320.5) (64.4) (0.5) (0.2) (0.0) (0.0) (0.6) 0.0 (515.1) (568.2)
Other Impairment Losses 0.0 0.0 0.0 0.0 (0.5) (0.4) (13.5) (11.9) (1.2) (0.4) 0.0 0.0 (15.2) (12.7)
Profit / (Loss) before tax (129.0) (167.4) 217.5 8.7 (310.2) (49.3) 215.1 285.4 26.9 16.2 (2,297.7) (25.4) (2,277.3) 68.2
1| Provision of €97.2mn for VSS and €0.5mn for senior executives’ compensation plan
1
57
Results: Retail Business Unit
(€ mn) Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020
Operating Income 186.2 184.2 240.9 195.9 198.1
Net Interest Income 136.9 149.5 163.6 159.0 164.8
Net fee and Commission Income 43.2 28.0 27.8 31.5 27.3
Trading & Other 6.0 6.7 49.6 5.4 6.0
Operating Expenses (145.0) (144.2) (151.3) (141.7) (138.5)
Staff Costs (58.0) (59.1) (59.1) (55.5) (56.3)
General Administrative Expenses (67.2) (61.9) (70.7) (65.3) (61.9)
Depreciation and Amortisation (19.8) (23.3) (21.5) (21.0) (20.3)
Impairment losses on Loans (155.0) (55.2) (481.7) (136.5) (125.7)
Other Impairment Losses - - - - -
Profit / (Loss) before tax (113.8) (15.2) (392.1) (82.4) (66.1)
RWA e 14,580 17,076 17,378 17,614 17,869
58
Results: Commercial & Corporate Business Unit
(€ mn) Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020
Operating Income 146.4 135.8 156.8 149.4 158.4
Net Interest Income 126.9 130.1 131.7 127.4 133.5
Net fee and Commission Income 25.6 25.9 27.6 28.0 24.1
Trading & Other (6.1) (20.2) (2.5) (6.0) 0.8
Operating Expenses (41.1) (40.1) (44.2) (42.5) (40.5)
Staff Costs (15.5) (16.5) (19.1) (18.7) (18.0)
General Administrative Expenses (18.6) (15.6) (16.8) (15.9) (15.3)
Depreciation and Amortisation (6.9) (8.0) (8.2) (7.9) (7.1)
Impairment losses on Loans 32.3 (15.7) 27.4 (39.9) (113.5)
Other Impairment Losses - - - - -
Profit / (Loss) before tax 137.6 79.9 140.1 67.0 4.4
RWA e 13,741 14,044 14,324 15,177 16,257
59
Results: Asset Management Business Unit
(€ mn) Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020
Operating Income 23.9 22.9 25.0 11.9 14.0
Net Interest Income 3.4 2.5 3.5 3.7 4.1
Net fee and Commission Income 17.6 16.2 14.8 12.0 10.2
Trading & Other 2.9 4.3 6.7 (3.8) (0.2)
Operating Expenses (9.0) (9.7) (10.8) (9.9) (8.4)
Staff Costs (4.8) (5.1) (5.4) (5.6) (4.5)
General Administrative Expenses (3.0) (3.3) (4.1) (3.2) (2.9)
Depreciation and Amortisation (1.2) (1.3) (1.3) (1.0) (1.1)
Impairment losses on Loans 0.0 (0.0) 0.2 (0.3) (0.0)
Other Impairment Losses (1.1) (0.1) (0.3) (0.5) (0.0)
Profit / (Loss) before tax 13.8 13.1 14.1 1.3 5.5
RWA e 353 347 339 338 347
60
Results: Investment Banking & Treasury Business Unit
(€ mn) Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020
Operating Income 90.3 155.0 406.4 77.8 174.1
Net Interest Income 57.6 71.6 38.6 40.9 38.9
Net fee and Commission Income 8.7 5.6 5.1 4.6 7.9
Trading & Other 24.0 77.8 362.6 32.3 127.3
Operating Expenses (7.9) (8.3) (7.8) (8.1) (7.1)
Staff Costs (3.1) (2.9) (3.8) (3.5) (3.0)
General Administrative Expenses (3.7) (4.3) (2.9) (3.5) (3.2)
Depreciation and Amortisation (1.1) (1.1) (1.1) (1.1) (0.9)
Impairment losses on Loans 0.5 (1.0) (0.6) (1.9) 1.8
Other Impairment Losses (8.0) (5.5) 1.7 (1.5) (3.6)
Profit / (Loss) before tax 74.9 140.2 399.8 66.3 165.2
RWA e 6,269 6,079 6,059 5,911 5,792
61
Results: SE Europe Business Unit
(€ mn) Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020
Operating Income 56.7 58.6 64.2 63.9 61.8
Net Interest Income 45.3 46.0 50.1 50.3 49.3
Net fee and Commission Income 10.3 8.7 8.5 8.8 8.0
Trading & Other 1.1 4.0 5.6 4.8 4.6
Operating Expenses (49.6) (54.8) (90.7) (52.7) (51.8)
Staff Costs (22.0) (21.5) (23.7) (23.2) (23.0)
General Administrative Expenses (21.4) (26.1) (35.9) (23.6) (22.3)
Depreciation and Amortisation (6.3) (7.2) (4.9) (5.9) (6.5)
Expenses for VSS - - (26.2) - -
Impairment losses on Loans (1.9) (318.6) (114.8) 10.1 (23.3)
Other Impairment Losses (0.5) (0.0) (0.2) (0.0) (0.1)
Profit / (Loss) before tax 4.7 (314.8) (141.5) 21.3 (13.4)
RWA e 3,865 4,049 4,370 4,287 4,361
62
Results: Other Business Unit
(€ mn) Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020
Operating Income (2,113.8) (0.6) 13.2 17.2 (1.6)
Net Interest Income 0.9 (0.1) 0.5 0.3 0.2
Net fee and Commission Income (0.0) (0.0) 0.0 (0.0) (0.1)
Trading & Other (2,114.8) (0.5) 12.8 16.9 (1.7)
Operating Expenses (21.4) (161.3) (64.8) (13.7) (14.4)
Staff Costs (7.3) (1.8) (26.7) (1.5) (1.8)
General Administrative Expenses (12.0) (59.5) (28.9) (9.8) (10.1)
Depreciation and Amortisation (2.2) (2.3) (9.2) (2.4) (2.5)
Expenses for VSS - (97.7) - - -
Impairment losses on Loans (0.5) (0.0) 0.1 0.0 (0.0)
Other Impairment Losses - - - - -
Profit / (Loss) before tax (2,135.8) (161.9) (51.5) 3.5 (15.9)
RWA e 2,377 3,219 3,211 2,826 2,327
1| Provision of €97.2mn for VSS and €0.5mn for senior executives’ compensation plan
1
63
Glossary (1/3)
APM Definitions Relevance of the metricReference
numberAbbreviation
Accumulated Provisions and FV
adjustments
The item corresponds to (i) "the total amount of provision for credit risk that the Group has recognized and derive from
contracts with customers", as disclosed in the Consolidated Financial Statements of the reported period and (ii) the Fair
Value Adjustments.
Standard banking
terminology1 LLR
Impairment losses on loansThe figure equals "Impairment losses and provisions to cover credit risk on loans and advances to customers" as derived
from the Consolidated Financial Statements of the reported period
Standard banking
terminology10 LLP
"Income from financial operations" or
"Trading Income"
The figure is calculated as "Gains less losses on derecognition of financial assets measured at amortised cost" plus "Gains
less losses on financial transactions " as derived from the Consolidated Income Statement of the reported period.
Standard banking
terminology3
Core Operating Income
Operating Income less Income from financial operations less management adjustments on operating income for the
corresponding period. Management adjustments are: Euro -9.7 million related to Goodwill impairment of an associated
company in Q1 19 and Euro 13.0 million related to Insurance company compensation in Q4 18.
Profitability metric 5=4-3
Core Pre-Provision Income Core Operating Income for the period less Recurring Operating Expenses for the period. Profitability metric 5-7 Core PPI
Cost of RiskImpairment losses on loans for the period divided by the average Net Loans of the relevant period. Average balances is
defined as the arithmetic average of balance at the end of the period and at the end of the previous period.Asset quality metric 10/9 (avg) CoR
Deposits The figure equals "Due to customers" as derived from the Consolidated Balance Sheet of the reported period.Standard banking
terminology8
Extraordinary costs The figure equals the management adjustments on operating expenses.Standard banking
terminology
Fair Value adjustmentsThe item corresponds to the accumulated Fair Value adjustments for non-performing exposures measured at Fair Value
Through P&L (FVTPL).
Standard banking
terminologyFV adj.
Fully-Loaded Common Equity Tier 1
ratio
Common Equity Tier 1 regulatory capital as defined by Regulation No 575/2013 (Full implementation of Basel 3), divided by
total Risk Weighted Assets (RWAs)
Regulatory metric of
capital strengthFL CET 1 ratio
Gross Loans
The item corresponds to "Loans and advances to customers", as reported in the Consolidated Balance Sheet of the
reported period, gross of the "Accumulated Provisions and FV adjustments", excluding the accumulated provision for
impairment losses on off balance sheet items, as disclosed in the Consolidated Financial Statements of the reported period.
Standard banking
terminology2
Loan to Deposit ratio Net Loans divided by Deposits at the end of the reported period. Liquidity metric 9/8 LDR or L/D ratio
Net Interest Margin Net Interest Income for the period (annualised) and divided by the average Total Assets of the relevant period. Average
balances is defined as the arithmetic average of balance at the end of the period and at the end of the previous period.Profitability metric NIM
Net LoansThe figure equals "Loans and advances to customers" as derived from the Consolidated Balance Sheet of the reported
period.
Standard banking
terminology9
Non Performing Exposures Collateral
Coverage Value of the NPE collateral divided by NPΕs at the end of the reference period. Asset quality metric 13
NPE collateral
Coverage
Non Performing Exposure Coverage Accumulated Provisions and FV adjustments divided by NPEs at the end of the reference period. Asset quality metric 14=1/12NPE (cash)
coverage
Non Performing Exposure ratio NPEs divided by Gross Loans at the end of the reference period. Asset quality metric 12/2 NPE ratio
64
Glossary (2/3)
APM DefinitionsRelevance of the
metric
Reference
numberAbbreviation
Non Performing Exposure Total
Coverage
Accumulated Provisions and FV adjustment plus the value of the NPE collateral divided by NPEs at the end of the reported period. NPE Total
coverage equals the sum of NPE coverage and NPE collateral coverage.Asset quality metric 13+14
NPE Total
coverage
Non Performing Exposures
Non-performing exposures are defined according to "EBA ITS on forbearance and Non Performing Exposures" as exposures that satisfy either or
both of the following criteria: a) material exposures which are more than 90 days past-due b)The debtor is assessed as unlikely to pay its credit
obligations in full without realisation of collateral, regardless of the existence of any past-due amount or of the number of days past due.
Asset quality metric 12 NPEs
Non Performing Loan Collateral
Coverage Value of collateral received for Non Performing Loans divided by NPLs at the end of the reference period. Asset quality metric 16
NPL collateral
Coverage
Non Performing Loan Coverage Accumulated Provisions and FV adjustments divided by NPLs at the end of the reference period. Asset quality metric 17=1/15NPL (cash)
Coverage
Non Performing Loan ratio NPLs divided by Gross Loans at the end of the reference period. Asset quality metric 15/2 NPL ratio
Non Performing Loan Total
Coverage
Accumulated Provisions and FV adjustments plus the value of the NPL collateral divided by NPLs at the end of the reference period. NPL Total
coverage equals the sum of NPL coverage and NPL collateral coverage.Asset quality metric 16+17
NPL Total
Coverage
Non Performing Loans Non Performing Loans are Gross loans that are more than 90 days past-due. Asset quality metric 15 NPLs
Normalized Profit after (Income)
Tax
The caption normalized profit after income tax, excluding gains/losses that have been designated as non-recurring, gains/losses recognized either
in the context of planned transactions or the transformation plan of the group.
Gains/losses that have been designated as non-recurring, gains/losses recognized either in the context of planned transactions or the
transformation plan of the group are analysed below for the period H1 2020:
• gains less losses on financial transactions and gains less losses on derecognition of financial assets measured at amortised cost of amount
Euro 218 million that mainly relate to gains from sales of bonds and interest-bearing Greek Government and other bonds.
• expenses before impairment losses and provisions to cover credit risk of amount Euro 19 million, included in the captions of operating expenses
that have been designated as non-recurring.
• Impairment losses and provisions to cover credit risk of amount Euro 234 million which relates to the impact of the global economic crisis caused
by the COVID-19 pandemic.
• Income tax on the above mentioned results of amount Euro 5 million (income) as well as amount Euro 54 million (income) that concerns a
reversal of deferred tax liability, which has been calculated on investments classified as “held for sale”, as a result of change in tax regime by the
article 20 of the Law 4646/2019, according to which the gains from the sale of the aforementioned investments is exempt from taxation, while the
losses are deductible up to the amount that have been recognized as of 31.12.2019.
H1 2021
• Normalised Profit After Tax in H1 2021, adjusted for losses related to Project Galaxy of Euro 2.1 billion and excluding gains on financial
transactions of Euro 91 million, non-recurring expenses of Euro 173 million, transactions related impairment losses of Euro 351 million and tax of
Euro 21 million Project Galaxy of Euro 2.1 billion and excluding gains on financial transactions of Euro 91 million, non-recurring expenses of
Euro 173 million, transactions related impairment losses of Euro 351 million and tax of Euro 21 million.
Profitability metricNormalised
PAT
65
Glossary (3/3)
APM DefinitionsRelevance of the
metric
Reference
numberAbbreviation
Operating Income
The figure is calculated as "Total Income" plus "Share of profit/(loss) of associates and joint ventures" as derived from the Consolidated Income
Statement of the reported period, taking into account the impact from any potential restatement as described in Note 32 of the Consolidated
Financial Statements.
Standard banking
terminology4
Other impairment losses The figure equals "Impairment losses on other financial instruments" as derived for the Consolidated Financial Statements of the reported period.Standard banking
terminology
Other IncomeThis item corresponds to the sum of "Dividend income", "Other income" and "Share of profit/(loss) of associates and joint ventures", as defined in
the Consolidated Balance Sheet of the reported period.
Standard banking
terminology
Pre-Provision Income Operating Income for the period less Total Operating Expenses for the period Profitability metric 4-6 PPI
Recurring Cost to Income
ratio Recurring Operating Expenses for the period divided by Core Operating Income for the period. Efficiency metric 7/5 C/I ratio
Recurring Operating
Expenses
Total Operating Expenses less management adjustments on operating expenses. Management adjustments on operating expenses include events
that do not occur with a certain frequency, and events that are directly affected by the current market conditions and/or present significant variation
between the reporting periods, and are quoted in the appendix of the Financial Report.
Efficiency metric 7Recurring
OPEX
SecuritiesThis item corresponds to the sum of "Investment securities" and "Trading securities", as defined in the Consolidated Balance Sheet of the reported
period.
Standard banking
terminology
Shareholders' EquityThis item corresponds to "Equity attributable to equity owners of Alpha Services and Holdings S.A.", as defined in the Consolidated Balance Sheet
of the reported period.
Standard banking
terminology
Tangible Book Value (or
Tangible Equity)
TBV (or TE) is the sum of "Total Equity" less "Goodwill and other intangible assets", less "Non-controlling interests" and less "hybrid securities", as
defined in the Consolidated Balance sheet at the reported period.
Standard banking
terminologyTBV or TE
Tangible Book Value (or
Tangible Equity) per share Tangible Book Value (or Tangible Equity) divided by the outstanding number of shares. Valuation metric TBV/share
Total AssetsThe figure equals "Total Assets" as derived from the Consolidated Balance Sheet of the reported period taking into account the impact from any
potential restatement, as described in Note 32 of the Consolidated Financial Statements.
Standard banking
terminology11 TA
Total Operating Expenses
The figure equals "Total expenses before impairment losses and provisions to cover credit risk" as derived from the Consolidated Income Statement
of the reported period taking into account the impact from any potential restatement, as described in Note 32 of the Consolidated Financial
Statements.
Standard banking
terminology6 Total OPEX
66
Alpha Bank Contacts
General Manager – CFO
Internet : www.alphaholdings.gr
Reuters : ACBr.AT (shares)
Bloomberg : ALPHA GA (shares)
Alpha Bank Depository Receipts (ADRs)
Reuters : ALBKY.PK
Bloomberg : ALBKY US
Lazaros Papagaryfallou
cfo-office@alpha.gr
+30 210 326 2261
Manager
Investor Relations Division
Dimitrios Kostopoulos
+30 210 326 2271
dimitrios.kostopoulos@alpha.gr
Deputy Manager
Investor Relations Division
Elena Katopodi
+30 210 326 2272
elena.katopodi@alpha.gr
Senior
Investor Relations Officer
Stella Traka
+30 210 326 2274
stella.traka@alpha.gr
Investor Relations Division
+30 210 326 2271
+30 210 326 2277
ir@alphaholdings.gr
40 Stadiou Street,
102 52, Athens
Senior
Investor Relations Officer
Selini Milioni
+30 210 326 2273
selini.milioni@alpha.gr
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