Embed Size (px)
Citation preview
Alpha BankFY 2020 Results
Investor Presentation
March 23rd, 2021
2
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, 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 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.
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.
3
Alpha Bank
• 2020 Highlights
• 2021 Outlook
• Financial Performance Analysis
• Macroeconomic Update
• Appendix
ESG
Asset Quality
Capital
Volumes
P&L
3
8
13
20
24
26
34
37
45
Pages
4
2020 Highlights and 2021 Outlook
NPE transactions of €3.3bn in 2021. NPL and NPE ratios1 in Greece to decrease to <10% and <18% respectively
Capital preservation with NPE transactions’ impact being fully absorbed and ending Total Capital ratio at 16.8%
Improved Core PPI performance at €859mn (+3.4% y-o-y) in 2020
Strong trading income of €690mn in 2020 allowed for increased impairments to account for future NPE reduction initiatives
Impairment losses of €1,306mn in 2020, impacted by additional impairments of €283mn to account for Covid-19 and of €320mn in
anticipation of new transactions in 2021
Group NPE cash coverage pro-forma for Galaxy at 50% and Group NPL coverage at 85% in 2020
Total Capital ratio at 18.4% in December 2020, or 16.9% pro forma for Galaxy and Tier II issuance of €500mn in March 2021
2021 Outlook
2020 Financial
Performance
NPE
Deleveraging
Alpha Bank entered into definitive agreements with Davidson Kempner over its €10.8bn Galaxy portfolio and the sale of an
80% stake in Cepal; expected to complete in Q2 2021
Post Galaxy, Alpha Bank’s NPE and NPL ratio1 in Greece is reduced to 24% and 13% respectively
Business
Development
In December 2020, the Bank entered into a long-term bancassurance partnership with Generali, which will be a key enabler for
the acceleration of its bancassurance ambitions going forward
New disbursements in Greece of €5.6bn in 2020 (+60% vs. 2019), providing significant support to the economy
1|including senior notes on the ratio basis.
5
Alpha Bank delivered strong financial performance in FY 2020;Asset quality significantly improved
Expansion of operating incomeOperating income, Euro mn
Continued cost control Improvement in Core PPI
Strengthening of capitalization levels
Recurring operating expenses, Euro mn Core PPI, Euro mn
Total Capital Ratio (%)
2,3212,591
2019 2020
+12%
1,080 1,042
20202019
-3.6%
1|pf for Galaxy, including senior notes on the ratio basis
831 859
2019 2020
3.4%
17.9%
2019 2020
18.4%
+50bps
Group %
Cash Coverage strengthened Group %
NPE and NPE>90dpd ratios declined
1
NPE>90dpd coverageNPE coverage
44%50%
65%
85%6pps
20pps
16%
NPE ratio NPE>90dpd ratio
26%
45%
30%
-18pps
-14pps
2019
2020
6
Commercial Activity: Loan growth supported by deposits inflows with fee platform further strengthened
Strong new disbursements despite macro headwindsGreece, Euro bn
2019 2020
3.5
5.6
+2.1
o/w €5.3bn
business
Strong customer deposit inflows with a change in mixGroup, EUR bn
60%
35%
Dec-19
4%
Dec-20
72%
26%
3%State
Core
Term
34.538.0
+3.6
5.9
5.8
Abroad
Greece
Dec-19
34.5 38.0
Dec-20
40.4
43.8
+3.5
Greece, EUR bn
Digital transformation accelerated shift to digital channels
Efficiency
gains
92% of financial
transactions
through digital
channels
792,000 active
users in mobile
banking
+45% yoy in
2020
150 million
logins in mobile
banking
+69% yoy in
2020
>145,000
new users in wallets
~3.5 million transactions
in 2020
▪ On December 31, 2020, Generali acquired AXA Greek subsidiary,
becoming a #2 insurer in non-life and #3 player in health
insurance
▪ Alpha Bank and Generali have renegotiated the exclusive
distribution agreement, that existed with AXA, by extending it
until 2040
▪ Such partnership entails certain future payments by Generali
to Alpha Bank, the amount of which will vary based on the
performance of the partnership
Exclusive bancassurance agreement with Generali until 2040
Fee Income
Generation
7
Swift execution of Galaxy during pandemic with clear timeline to closing
By H2 2021Q2 2021April 2021Feb 2021
Hive-Down
Completion1
Galaxy
Signing
Galaxy
Closing1
Distribution of
Galaxy Notes to
shareholders1
1| Subject to applicable corporate and regulatory approvals. 2| Alpha to initially hold 49% of the Mezzanine and Junior notes, with 44% to be distributed to shareholders subsequently; 5% to be retained as required by risk retention
rules. 3 | The amount of €10.8bn refers to the aggregate GBV as of the cut-off date of each respective SPV: 31.03.19 for SPVI, 30.06.19 for SPV II & IV. 4| Gross Book Value
Alpha BankDavidson
Kempner
Sale of 80% of New CEPAL
20% 80%
Long-term servicing agreement with New CEPAL,
with a term of 13 years, for the management of our
existing Retail and Wholesale NPEs in Greece of
€8.9bn, as well as of any future flows of similar assets
and early collections. New CEPAL will also manage
the €10.8bn3 exposures under the Galaxy
Securitisations and €4.6bn4 of exposures of third-party
investors
Alpha
Bank
Davidson
Kempner
Senior notes
€3.8bn
Galaxy Securitisations
51%
100%
DK to acquire 51% of the
mezzanine and junior
notes, while Alpha will
initially retain a 49% stake.
44% of the notes are
intended to be subsequently
distributed to
shareholders subject to
regulatory and corporate
approvals
Mezzanine
notes
Junior
notes
49%2
HAPS guarantee
SPV I
€1.9bn
€10.8bn3
SPV II
€5.7bn
SPV IV
€3.2bn
New CEPAL
Carve-out of NPE Management unit onto CEPAL already
completed, with servicer currently fully operational
8
Alpha Bank
3
8
13
20
24
26
34
37
45
Pages
• 2020 Highlights
• 2021 Outlook
• Financial Performance Analysis
• Macroeconomic Update
• Appendix
ESG
Asset Quality
Capital
Volumes
P&L
9
Dec-17
25.0
Other
organic
movements
16.6
(66%)NPE>90dpd
-0.9
8.4
(34%)
Cosmos
~3.5
OrbitDec-20 pf
Galaxy
NPE
reduction
0.3
Dec-21E Dec-22E
6.34.1
(46%)
16.2
NPEs pf
transactions
11.9
(73%)
4.7
(54%)
8.8
5.9-2.0
4.3
(27%)NPE<90dpd
-65%
Balance sheet clean-up continues unabated in 2021
Since 2017, Alpha Bank
has delivered c.€16bn
of NPE reduction, or 2/3
of the starting stock
Continued focus on
NPE and NPL reduction
in 2021, with stock down
by c.30% and 45%
respectively, on the back
of execution credibility
and HAPS support
Strategic flexibility to
upsize transactional
ambition on the back of
superior capital
position and
continuously declining
HAPS costs
NPE ratio (Greece)¹ 24%
NPL ratio (Greece)¹
NPE portfolio to decrease by a further 30% in 2021 Greece, Euro bn
1| Basis for ratio includes senior notes of the securitization.
13%34%
52% <18%
<10%
Average
€5.4bn NPE
reduction
p.a.
NPE<10%
10
14.0%
Tier II
14.3%
Dec-20 pf Dec-21E
-0.6%
IFRS 9
phase in
2021 NPE
transactions
front-
loading
impact
0.7%
17.8%
2021 OCR
pre relief
measures3
RWA
increase1
16.9%0.3%
SME
synthetic
securiti-
sation
Organic
capital
generation2
-0.1%
Dec-20Dec-20
excl.
transactions
frontloading
impact
-0.2%
14.1%
9.2%
17.3%
-2.8%-0.8%
Galaxy
impact
1.3%
19.0%18.4%
16.8%
2021 NPE
transactions
impact
Strong capital position throughout 2021, comfortably covering OCR requirements and always remaining within stated management targets
Alpha Bank’s
buffers well above
regulatory
requirements and
within management
targets
Internal capital
generation to
counterbalance
IFRS 9 phase in
and transactions
impact
Total capital
impact from 2021
NPE transactions
at c. 70bps, of
which 85%
frontloaded in Q4 20
~ €37.5bn€39bnRWAs
CET1
Total
Capital
Group, % transitional
Total Capital and CET1 ratios evolution
€500mn
issued in
March 2021
1| Excluding positive impact from 2021 NPE transactions. 2| Driven mainly by PBT and excluding NPE transactions cost. 3| OCR to remain at 11% until 2022, excluding CCB and OS-II buffers. 4| Transactions include Cosmos, Orbit
and Sky.
€45bn
4
4
11
€3.3bn NPE transactions to be launched in H1 21 - €2.0bnsecuritisation in Greece to apply for HAPS 2
Cosmos
NPE GBV
Portfolio
breakdown
Description
Orbit
Expected
agreement
Greek NPE securitisationunder HAPS
Greek NPE portfolio sale
H2 2021 H2 2021
Sky
Cyprus NPE portfolio sale
H2 2021
22%
5%
23%
50%
91%
6%
3%
7%
45%
48%
EUR 2.0bn EUR 0.9bn EUR 0.4bn
12
1.7
20192018
-2.2
2.6
-3.3
2.2
-3.4
1.6
2020
Inflows
-1.4
2021
Outflows
2021 inflows, primarily driven by moratoria, are expected to be partially counterbalanced by curings and other management actions
o/w c.€1.0bn
from moratoria
Negative gross formation in Greece Greece, EUR bn
(1.2) (0.5)(0.6) 0.3
Gefyra
10%
Re-performance
63%
Step-up
10%
At risk
18%
PE Moratoria – mitigating actions Greece, EUR bn
€5.5bn
Net Organic
Formation
Greece, EUR bn
Stage 2 classification as a percentage of PE moratoria
87%
Total
67%
Retail
32%
Wholesale
Note: Bank level
1 | includes accounts less than 30 days past due.
Moratoria
Expiration (PEs)
Performing1
as of end
Feb- 21
Within Q3’20 1.2 84%
Within Q4’20 4.3 87%
Total 5.5 86%
Greece, EUR bn
PE Moratoria – segmental breakdown & performance
Consumer
SBL
2.3
PE Moratoria
0.50.7
2.0
Mortgage
Wholesale
5.5lifetime ECL
calculation has
been performed in
2020
13
Alpha Bank
3
8
13
20
24
26
34
37
45
Pages
• 2020 Highlights
• 2021 Outlook
• Financial Performance Analysis
• Macroeconomic Update
• Appendix
ESG
Asset Quality
Capital
Volumes
P&L
14
FY 20 Financial Performance overview
EUR mnCore PPI up by 3.4% y-o-y…
382 388
1,547 1,542
FY 20Q3 20 FY 19Q4 20
…supported by stable NII…EUR mn
1| Trading income in Q3 20 includes €14.3mn gain resulted from the valuation at fair value of Cepal. Q4 20 trading gain of €171mn from GGB swap and €42mn from the sale of investment in MasterCard. 2| Time deposits rates refer
to euro-denominated deposits. 3| Bank Greece 4 | FY 20 mainly include VSS Cyprus scheme, the carve-out expenses and impairments of real estate property. 5| Cepal’s consolidation impacted Recurring expenses by €12mn.
85 84
340 335
Q3 20 FY 19Q4 20 FY 20
Lower Staff costs
EUR mn
EUR mn
…resilient Fee Income..
FY 19
5
FY 20
Cepal
477453
-5%
Reduced G&AsEUR mn
-5%
690
FY 19
Core
PPI
FY 20
Core
PPI
Trading
gains
(116)
One-
off
costs
FY 20
Reported
PPI
831 859
1,434
+3.4%
FY 19
4286
FY 20
Cepal
459
434
-0.4%
1
bps
…due to lower funding costs
399 395 392 397
35 28 20 16
-40 -47 -50-50
1129
-34-54 -100
-50
0
50
100
150
200
200
250
300
350
400
450
Q1 20 Q2 20 Q3 20 Q4 20
LoanSpreads
TimeDepositrates
AverageECB Cost
Reporates
2
Greece Dec-18 Dec-20 Δ
2 years
Branches 443 336 -107
Employees3 7,793 6,316 -1,477
o/w 58 branches
in 2020
…and lower recurring OpexEUR mn
-4%
57% 55%C/I
5
+2% -1%
-1%
FY 19
1,042
12
FY 20
Cepal
1,081
4
15
Profit & Loss
(EUR mn)
FY
2020
FY
2019
yoy %
change
Q4
2020
Q3
2020
qoq %
change
Net Interest Income (NII) 1,542 1,547 (0.4%) 388 382 1.6%
Net fee and commission Income 335 340 (1.4%) 84 85 (1.2%)
Trading Income1 690 410 … 430 43 …
Other Income 24 24 0.5% 5 7 (29.1%)
Operating Income 2,591 2,321 11.6% 907 516 75.6%
Recurring Operating Expenses2 (1,042) (1,080) (3.6%) (274) (264) 3.8%
Extraordinary costs3 (116) (94) … (96) (5) …
Total Operating Expenses (1,158) (1,175) (1.4%) (369) (269) 37.5%
Core Pre Provision Income 859 831 3.4% 203 210 (3.2%)
Pre Provision Income (PPI) 1,434 1,147 25.0% 537 248 …
Impairment Losses on Loans (1,306) (995) 31.3% (569) (169) …
o/w Covid-19 related (283) - - (53)
Other Impairment Losses (13) 4 1 (2)
Profit/ (Loss) before income tax 114 156 (27.0%) (31) 77 …
Income Tax (10) (51) 1 (33)
Profit/ (Loss) after income tax 104 105 (1.4%) (30) 44 …
Net Interest Margin (NIM%) 2.3% 2.5% 2.2% 2.2%
Cost to Income ratio 55% 57% 57% 56%
FY 20 Group P&L and Balance Sheet
Balance Sheet
(EUR bn)31/12/20 30/09/20 31/12/19
YoY
change
Assets 70.1 68.6 63.5 6.6
Securities 10.1 10.5 8.7 1.4
Cash & CB 7.5 5.1 2.0 5.4
Net Loans 39.4 39.8 39.3 0.1
Deposits 43.8 41.7 40.4 3.5
Tangible Equity 7.7 7.8 7.9 -0.3
CET1 ratio 17.3% 17.2% 17.9% …
Total Capital ratio 18.4% 18.3% 17.9% …
NPE ratio 26%4 43% 45% …
NPE Cash Coverage 50%4 45% 44% …
NPL ratio 16%4 30% 30% …
NPL Cash Coverage 85%4 64% 65% …
1| Trading income has been restated due to the effect from the reclassification of Visa shares from FVOCI to FVTPL. Q3 20 includes €14.3mn gain resulted from the valuation at fair value of Cepal. In Q4 20, €171mn relate to GGB swap and €42mn to the sale of
investment in MasterCard. 2| Cepal’s consolidation impacted Recurring expenses by €12mn. 3| FY 20 mainly include VSS Cyprus scheme, the carve-out expenses and impairments of real estate property. 4|pro-forma for Galaxy including senior notes on the basis.
16
17.2%
18.4%12bps
Total Capital ratio
Sep-20
27bps
(10)bps
Q4 20
Result
Decrease of RWAs New CRR
Quick fix
14.8%
(23)bps
Total Capital ratio
Dec-20
Decrease of
FVOCI reserve
17.3%
FL Total
Capital ratio
Dec-20
CET1
Tier 2
18.3%16.0%
Total Capital ratio at 18.4% in Q4 20
Total Capital ratio quarterly evolutionEUR bn 7.18.4 8.3
1| 14% 2020 OCR pre relief measures or 11% post relief measures excluding CCB 2.5% and OS-II buffer 0.5%. 2| This includes Euro 500 million Tier 2 issued in February 2020 at 4.25%. 3| This includes €42mn from the sale of investment in Mastercard, €14.3mn
gain resulted from the valuation at fair value of Cepal in Q3.
%
€3.7bn Buffer
over 9.2% CET1
Total Capital ratio – pf for Galaxy and recent Tier 2
Galaxy impactTotal
Capital ratio
Dec-20
Tier 2 issued
in Mar-21
Total
Capital ratio
Dec-20 pf
Additional
Capacity
for AT1
16.9%
18.4%
-2.8%
1.3%
2.1%
2
2.7 2.8
2.6 2.0
5.3
Sep-20 Dec-20
FVOCI
Amortised
Cost
4.8
GGBs portfolioEUR bn
0.30.4GGB pre-tax
unrealised
gains
€2.0bn Buffer over
14.0% CAD
171
65
467
-13Bonds &
other FVTPLFY 2020
Other
FVTOCI
GGBs
Bond
swap
6903
Trading Income FY 2020EUR mn
1
17
Group deposits inflow of €2.1bn in Q4 2020; Group LCR stands comfortably at 151%
Deposits evolutionGroup, EUR bn EUR bn
ECB balances
3.1
11.9 11.9 11.9
Mar-20Dec-19 Sep-20
3.9
3.10.8
Dec-20Jun-20
TLTRO LTRO
5%% over
Total
Assets
6% 17%
Mix towards Core depositsGreece, EUR bn
ECB Collateral
pledged
Credit claims
GGBs & T-bills
Other bonds
60% 68%
State
35%
35.0
Sep-20
4%
Dec-19
62%
32%32%
6%
Mar-20
66%
35.8
2%
Term
Jun-20
26%30%
2%
72%
3%
Dec-20
Core
34.5 36.1 38.0
17%
Group LCR & LDR%
86%101%
113% 118%
151%
97% 95% 96% 96%90%
50%
70%
90%
110%
130%
150%
170%
-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%
Dec-19 Mar-20 Jun-20 Sep-20 Dec-20
LCR
LDR
17%
5.95.9
0.91.3
5.8
Dec-20
34.5
Dec-19
35.8
Sep-20 Individuals Business Abroad
38.0
Greece
Abroad
40.4
43.841.7
(0.1)
+€2.1bn
Q-o-Q
+€3.5bn
Y-o-Y
18
Negative gross organic formation in Greece
Note: Gross formation including curings, repayments, liquidations and debt forgiveness
Negative gross formation in Greece
Gross NPE
formationEUR bn
Entries
Exits
0.47 0.39 0.35 0.44
(3.29) (3.43)
(2.20)
(0.85)(0.48) (0.40) (0.47)
Q1 202018 2019 2020 Q2 20 Q3 20 Q4 20
2.64 2.24
1.66
(0.4) (0.1)
Gross formation (Organic) - WholesaleEUR mn
(461)
(192)
80
(40)
34 50 35
2018 2019 2020 Q1 20 Q2 20 Q3 20 Q4 20
Gross formation (Organic) - RetailEUR mn
(186)
(994)
(620)
(339)
(124) (94) (63)
2018 2019 2020 Q1 20 Q2 20 Q3 20 Q4 20
(0.0)
EUR bn
(0.0)(0.5)(1.2)(0.6)
19
Cost of Risk for the core portfolio <100bps for FY 2020
245
307261
169
Q4 19 Q3 20Q2 20Q1 20 Q4 20
569
EUR mn
1,023
283
FY 20FY 19
995
1,306
Covid-19
Underlying CoR
EUR mn
2.5% 3.3%CoR
(over net
loans)
1| Non core defined as exposures sold or expected to be sold under securitization or portfolio sale transactions
2.6%
Underlying
CoR389
1,0231,306
606374
649283
FY 19
Impairment
on loans
FY 20
Core
FY 20
Non Core
FY 20
Impairment
on loans
(underlying)
Covid FY 20
Total
Impairment
on loans
995
FY 20 Impairment losses – Core/Non CoreEUR mn
1
o/w Core €273mn
Non Core €10mn
2.5% 0.9% 1.7% 2.6% 0.7%CoR
(over net
loans)
3.3%
o/w €320mn incorporating
portfolio sale scenarios
Q4 20 Group impairment losses on loans
FY 20 Group impairment losses
50%
NPE
coverage
NPE>90dpd
coverage
64%
45%
85%5pps
21pps
Sep-20
Dec-20 pf
Galaxy
% Q-o-Q
Group NPE & NPL coverage pro forma Galaxy
20
Alpha Bank
3
8
13
20
24
26
34
37
45
Pages
• 2020 Highlights
• 2021 Outlook
• Financial Performance Analysis
• Macroeconomic Update
• Appendix
ESG
Asset Quality
Capital
Volumes
P&L
21
Milder-than-expected economic contraction of 8.2%, on the back of the sizeable fiscal stimulus
Real GDP declined on an annual basis in Q4, albeit
continued to recover on a quarterly read, …
…fueled by the second wave of the pandemic and the
lockdown since early November Real GDP fell by 7.9% y-o-y in Q4 2020, while continued to recover by 2.7% on
a quarterly read for the second consecutive quarter (Q3 2020: 3.1% q-o-q).
The contraction of the Greek economic activity in Q4 2020 on an annual basis
was fueled by the decline in net exports and private consumption, following the
second wave of the pandemic and the lockdown since early November; public
consumption and investment contributed positively to real GDP growth, by 1.4
pps and 0.2 pps, respectively.
Notes: *Including Statistical Discrepancies, **percentage change from baseline, ***weighted average according to the number of days
Sources: ELSTAT, Google community mobility reports, Oxford COVID-19 Government Response Tracker, European Commission , Bank of Greece, Alpha Bank ERD Calculations
…. on the back of the decline in private consumption and
net exports …
-18%
-12%
-6%
0%
6%
I II III IV I II III IV I II III IV I II III IV
2017 2018 2019 2020
Investment Private Consumption Net Exports
Public Consumption Inventories* GDP Growth
0
30
60
90
-90
-60
-30
0
30
Community mobility, retail and recreation (**) Community mobility, transit stations (**)
Weighted stringency index (***), rhs
4.2%4.8%
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 2021f 2022f
2017 2018 2019 2020
Real GDP - Greece (q-o-q) Real GDP - Greece (y-o-y)BoG forecasts (Dec. 2020) Real GDP - Euro area (y-o-y)ESI - Greece (3m average, rhs)
contributions to GDP growth
22
Credit growth supported businesses’ liquidity, especially those sectors that are heavily impacted from the pandemic and the lockdown
Gross Value Added: Contribution by sector of economic
activity
The services (tertiary) sector, which accounts for the largest part of Gross
Value Added (GVA), posted the largest negative contribution (-7 pps) to the
GVA fall in Q4 2020.
The speed of the vaccination programmes – not only in Greece but also in
the countries of origin of inbound tourist flows, are expected to liberate the
next tourist season from social distancing guidance and travel restrictions.
Notes: * other than shipping, ** incl. accomodation and food services activities, *** incl. scientific, technical, administrative and support activities, **** as of Mar 20, 2021, except for France as of Mar 17, 2021 and Spain, as of Mar 18, 2021, # Credit growth rates are
calculated taking into account reclassifications, loan write-offs and transfers, as well as exchange rate variations. Sources: Bank of Greece, Our World in Data (University of Oxford, Global Change Data Lab), ELSTAT, Alpha Bank ERD Calculations
Credit to domestic non-financial corporations increased
in 2020
Speed of vaccination programmes as determinant of
the tourism rebound in 2021
-14%
-8%
-2%
4%
I II III IV I II III IV I II III IV I II III IV
2017 2018 2019 2020Primary Secondary exc. ConstructionConstruction Tourism-Trade-TransportTertiary exc. Tourism-Trade-Transport
-0.1%
6.8%
6.9%
8.1%
8.1%
8.6%
10.0%
11.1%
11.3%
12.4%
13.7%
14.8%35.1%
-4% 6% 16% 26% 36% 46% 56%
Construction
Professional activities***
Agriculture
Information and communication
Manufacturing, Mining and Quarrying
Electricity, Gas and Water Supply
Total Credit
Trade
Shipping
Real estate activities
Other
Tourism**
Storage and transportation*
Dec 2019 Dec 2020
% annual change #
10.3%
3.5%2.4%
0.8%
4.6%
11.8%
4.5%
1.7%
0%
4%
8%
12%
0%
10%
20%
30%
40%
UnitedKingdom
UnitedStates
Cyprus Greece Spain Italy Germany France Russia
Share of people who received at least one dose of COVID-19 vaccine (****)Share of the inbound travel traffic of Greece by country of origin (2019), rhs
23
Job retention policies alleviated a hike in unemployment rate andmoderated disposable income lossesLabour market developments in the Covid world
Sources: Bank of Greece, ELSTAT, Eurostat
Unemployment rate in Greece declined by 0.6 pps between December 2019
and December 2020.
In the first 9 months of 2020, households’ disposable income exceeded private
consumption, leading to a rise in households’ gross savings (as % of disposable
income) by 2.3% on an annual basis vs. a 2.2% decline in the corresponding
period of 2019, returning to positive territory for the first time since 2011.
Deposit flows from the private sector to the banking system reached € 20.1 bn
in 2020, significantly higher compared to 2019 (€ 8.6 bn), underpinned by the
government revenue-side interventions, the higher household forced and
precautionary savings and the liquidity support to businesses.
Upswing in private sector deposits during the pandemic
Current developments in disposable income, savings and
consumption
80
120
160
200
-10
-5
0
5
10
15
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20189m
20199m
20209m
Gross savings Gross Disposable Income, rhs Private Consumption, rhs
105
115
125
135
4
14
24
34
44
Jan
-19
Fe
b-1
9
Ma
r-1
9
Ap
r-19
Ma
y-1
9
Jun
-19
Jul-
19
Au
g-1
9
Se
p-1
9
Oct-
19
Nov-1
9
Dec-1
9
Jan
-20
Fe
b-2
0
Ma
r-2
0
Ap
r-20
Ma
y-2
0
Jun
-20
Jul-
20
Au
g-2
0
Se
p-2
0
Oct-
20
Nov-2
0
Dec-2
0
Corporations (incl. financial and non-financial corporations)Households and non-profit institutions, rhs
bn €
2019 flow:
EUR 6.7 bn
2020 flow:
EUR 9.6 bn
2020 flow:
EUR 10.5 bn
2019 flow:
EUR 1.9 bn
Euro billion, current prices
Greece
Spain
Italy
France
Portugal
EU-27
Cyprus
Belgium
Ireland
Austria
Bulgaria
Germany
Netherlands
0 3 6 9 12 15 18
Unemployment Rate (%)
Dec 2019 Dec 2020
24
Alpha Bank
3
8
13
20
24
26
34
37
45
Pages
• 2020 Highlights
• 2021 Outlook
• Financial Performance Analysis
• Macroeconomic Update
• Appendix
ESG
Asset Quality
Capital
Volumes
P&L
25
Alpha Bank demonstrates a positive trend in ESG scores and evaluations by international analysts throughout the years as a result of actions
and measures taken regarding ESG issues based on international best practices.
2015 2016 2017 2018 2019 2020
MSCI ESG Rating
(scale CCC-AAA)B B BB BBB A ΑΑ
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
Vigeo Eiris Best Emerging Market Performers 🗸 🗸
Climate Change CDP Awareness/C Management/B- Awareness/C Awareness/C
Bloomberg Gender Equality Index🗸
(Index 2019)
🗸
(Index 2020)
🗸
(Index 2021)
Inclusion in Indices & ESG AnalyticsMemberships in Associations & Organisations
Alpha Bank's sustainability journey
Alpha Bank significantly contributes to 6 SDGs
Alpha Bank, signed (August 2019) the six Principles for Responsible
Banking (PRB) and has created a four-year plan and set targets for the
implementation of the Principles of Responsible Banking
26
Alpha Bank
3
8
13
20
24
26
34
37
45
Pages
• 2020 Highlights
• 2021 Outlook
• Financial Performance Analysis
• Macroeconomic Update
• Appendix
ESG
Asset Quality
Capital
Volumes
P&L
27
Gross organic NPE formation in Greece per segment
Note: Gross formation including curings, repayments, liquidations and debt forgiveness
Gross formation (Organic) - WholesaleEUR mn
Gross formation (Organic) - SBLEUR mn
Gross formation (Organic) - RetailEUR mn
(326)
(495)
(155) (132)(36) (0)
13
2018 2019 2020 Q1 20 Q2 20 Q3 20 Q4 20
Gross formation (Organic) - MortgagesEUR mn
(20)
(373)(324)
(141)(64) (65) (55)
2018 2019 2020 Q1 20 Q2 20 Q3 20 Q4 20
Gross formation (Organic) - ConsumerEUR mn
160
(126) (141)(67)
(24) (28) (22)
2018 2019 2020 Q1 20 Q2 20 Q3 20 Q4 20
(461)
(192)
80
(40)
34 50 35
2018 2019 2020 Q1 20 Q2 20 Q3 20 Q4 20
(186)
(994)
(620)
(339)
(124) (94) (63)
2018 2019 2020 Q1 20 Q2 20 Q3 20 Q4 20
28
Auctions and repossession activity evolution
Auctioned properties (Conducted) per quarter FY 20 successfully auctioned properties: Breakdown
by highest bidder
REO portfolio evolution (entries/exits) – GreeceEUR mn
26%
74%
3rd parties
Alpha Bank
Q4 2019
40%
525
Q3 2019
42% 34%41%
558
Q2 2019Q1 2019
40%
775
31%
Q2 2020Q1 2020
0% 36%
Q3 2020 Q4 2020
789
1.782
412
0
374
unsuccessful % of successful over conducted auctions
No conducted
auctions in Q2
due to Covid-19
AcquisitionsREO Portfolio
31.12.18
122
Acquisitions
-110
Sales REO Portfolio
31.12.19
Sales
40
-58
REO Portfolio
31.12.20
€0.7bn €0.8bn€0.8bn
REO portfolio
4,2k properties
of €0.80bn value
Conducted auctioned property volumes impacted by notaries’ abstention and
Covid-19
74% of successfully auctioned properties have been acquired by Alpha
For 2020, disposed assets included large tickets as well as granular sales
Large ticket sales included portfolio transactions or individual asset sales
In Cyprus & SEE, the Bank has concluded asset sales of circa €27mn
strengthening its disinvestment strategy
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.
1
29
Detailed overview of Alpha Bank’s asset quality by portfolio pro-forma Galaxy - Greece
(€ bn) Wholesale SBL Mortgages Consumer Total
Gross loans 16.1 2.9 9.7 4.0 32.8
(-) Accumulated Provisions (1.3) (0.7) (0.8) (1.4) (4.2)
Net loans 14.8 2.2 8.9 2.6 28.6
NPLs 1.1 0.9 1.3 1.4 4.7
NPL ratio1 6.9% 31.4% 13.4% 34.2% 12.9%
NPEs 2.6 1.4 2.8 2.0 8.8
NPE ratio1 16.3% 46.7% 29.1% 48.8% 24.0%
NPL collateral 0.6 0.3 0.9 0.1 2.0
NPE collateral 1.6 0.6 2.2 0.2 4.6
Coverage ratio
NPLs 1.1 0.9 1.3 1.4 4.7
(+) Forborne NPLs < 90 dpds 1.2 0.4 1.5 0.6 3.7
(+) Unlikely to pay 0.3 0.0 0.0 0.0 0.4
NPEs 2.6 1.4 2.8 2.0 8.8
Forborne NPLs >90dpd 0.4 0.4 0.7 1.2 2.6
Forborne NPLs <90dpd 1.2 0.4 1.5 0.6 3.7
Performing forborne 0.3 0.7 2.2 0.4 3.6
Total forborne 1.9 1.5 4.4 2.2 10.0
118%
50% 77% 52% 63% 29%
102% 71% 90%
48%
56%
61% 38%
44% 70%
78%
9% 11%
43%
53%
174%
111% 115% 96%
133% 106% 111%
82%
133% 101%
NPL NPE NPL NPE NPL NPE NPL NPE NPL NPE
Collateral
Cash
1| Total ratio takes into account the senior notes.
30
Detailed overview of Alpha Bank’s asset quality by portfolio pro-forma Galaxy - Group
(€ bn) Wholesale SBL Mortgages Consumer Total
Gross loans 19.1 3.0 12.8 4.5 39.4
(-) Accumulated Provisions (1.9) (0.7) (1.6) (1.5) (5.7)
Net loans 17.1 2.3 11.3 3.0 33.7
NPLs 1.8 1.0 2.5 1.5 6.8
NPL ratio1 9.4% 32.0% 19.3% 34.1% 15.7%
NPEs 3.7 1.4 4.1 2.2 11.4
NPE ratio1 19.4% 47.2% 32.3% 47.9% 26.5%
NPL collateral 1.0 0.4 1.4 0.2 2.9
NPE collateral 2.2 0.6 2.8 0.3 5.8
Coverage ratio
NPLs 1.8 1.0 2.5 1.5 6.8
(+) Forborne NPLs < 90 dpds 1.6 0.4 1.6 0.6 4.2
(+) Unlikely to pay 0.3 0.0 0.1 0.0 0.4
NPEs 3.7 1.4 4.1 2.2 11.4
Forborne NPLs >90dpd 0.7 0.4 1.4 1.2 3.6
Forborne NPLs <90dpd 1.6 0.4 1.6 0.6 4.2
Performing forborne 0.4 0.7 2.3 0.5 3.8
Total forborne 2.6 1.5 5.3 2.3 11.7
107%
52% 77% 52% 63% 38% 99%
70% 85% 50%
54%
59% 37%
43% 55%
66%
12% 14%
42% 51%
160%
111% 114% 96%
119% 104% 110%
84%
127% 101%
NPL NPE NPL NPE NPL NPE NPL NPE NPL NPE
Collateral
Cash
1| Total ratio takes into account the senior notes.
31
Excellent track record in off-loading the most problematic part of the NPEs
“Corporate Loan Sale”
Size
€82mn Q4 2017 Syndicated non-performing corporate loan
Completion Transaction details
“Project Venus” c. €0.9bn Q1 2018Portfolio of non-performing unsecured consumer and small
business loans
“Project Mars”
€264mn Q2 2018Significant contribution in international assets deleveraging
“Project Jupiter” c. €1.0bn Q4 2018 SMEs loan portfolio secured with real estate assets
“Project Mercury” c. €1.1bn Q4 2018Portfolio of non-performing unsecured consumer and small
business loans
“Project Neptune”c. €1.1bn Q3 2020 SMEs loan portfolio secured with real estate assets
€22mn Q3 2017
“Corporate
Portfolio”
“Retail
Portfolio”
Positive financial impact and capital ratio accretive
transaction for the Group
“Project Galaxy”
€10.8bn
Since 2017 Alpha Bank NPE
transactions including Galaxy:
>€15bn
32
Detailed overview of Alpha Bank’s asset quality by portfolio before Galaxy impact - Greece
(€ bn) Wholesale SBL Mortgages Consumer Total
Gross loans 18.7 5.0 13.9 4.9 42.5
(-) Accumulated Provisions (2.8) (1.7) (2.1) (1.8) (8.3)
Net loans 15.9 3.3 11.8 3.1 34.2
NPLs 3.0 2.7 4.7 2.2 12.5
NPL ratio 16.0% 54.8% 33.5% 43.6% 29.5%
NPEs 5.2 3.4 6.8 2.8 18.3
NPE ratio 27.8% 67.7% 49.2% 57.6% 42.9%
NPL collateral 1.6 1.2 3.4 0.5 6.7
NPE collateral 3.1 1.6 5.3 0.6 10.5
Coverage ratio
NPLs 3.0 2.7 4.7 2.2 12.5
(+) Forborne NPLs < 90 dpds 1.8 0.6 2.1 0.7 5.3
(+) Unlikely to pay 0.4 0.0 0.1 0.0 0.5
NPEs 5.2 3.4 6.8 2.8 18.3
Forborne NPLs >90dpd 1.5 0.7 2.2 1.6 6.0
Forborne NPLs <90dpd 1.8 0.6 2.1 0.7 5.3
Performing forborne 0.3 0.7 2.4 0.5 3.8
Total forborne 3.5 2.1 6.6 2.8 15.0
92% 53% 61% 49% 45% 30%
84% 64% 66% 46%
55%
59% 45% 47% 73% 77% 22%
22% 54%
58%
147% 112% 105% 97% 118% 107% 106%
86% 120%
103%
NPL NPE NPL NPE NPL NPE NPL NPE NPL NPE
Collateral
Cash
33
Detailed overview of Alpha Bank’s asset quality by portfolio before Galaxy impact - Group
(€ bn) Wholesale SBL Mortgages Consumer Total
Gross loans 21.6 5.1 17.0 5.4 49.1
(-) Accumulated Provisions (3.4) (1.7) (2.8) (1.9) (9.8)
Net loans 18.2 3.4 14.2 3.5 39.3
NPLs 3.7 2.8 5.8 2.3 14.6
NPL ratio 17.1% 54.9% 34.3% 42.7% 29.8%
NPEs 6.3 3.4 8.2 3.1 20.9
NPE ratio 29.0% 67.7% 48.0% 56.1% 42.5%
NPL collateral 2.0 1.2 3.9 0.5 7.6
NPE collateral 3.6 1.6 5.8 0.7 11.8
Coverage ratio
NPLs 3.7 2.8 5.8 2.3 14.6
(+) Forborne NPLs < 90 dpds 2.1 0.6 2.3 0.7 5.8
(+) Unlikely to pay 0.4 0.0 0.1 0.0 0.5
NPEs 6.3 3.4 8.2 3.1 20.9
Forborne NPLs >90dpd 1.7 0.7 2.9 1.7 6.9
Forborne NPLs <90dpd 2.1 0.6 2.3 0.7 5.8
Performing forborne 0.4 0.7 2.5 0.5 4.0
Total forborne 4.2 2.1 7.6 2.9 16.7
92% 54% 61% 49% 48% 35%
83% 64% 67% 47%
54%
58% 44% 47% 66% 71% 23%
23% 52%
56%
145% 112% 105% 97%
115% 106% 106% 86%
119% 103%
NPL NPE NPL NPE NPL NPE NPL NPE NPL NPE
Collateral
Cash
34
Alpha Bank
3
8
13
20
24
26
34
37
45
Pages
• 2020 Highlights
• 2021 Outlook
• Financial Performance Analysis
• Macroeconomic Update
• Appendix
ESG
Asset Quality
Capital
Volumes
P&L
35
Dec-20
(phased-in)
3.0
0.30.81.0
3.0
Dec-20
(fully loaded)
4.33.8
Group RWAs and Regulatory Capital
Group Risk Weighted AssetsEUR bn
(€0.7bn)
0.1
3.6 3.2
40.9
Operational
(0.4)1.6
Sep-20 Credit Market
(0.4)
40.4
Dec-20
46.1 45.4
1.7
Credit Market Operational
Credit Risk Weights per portfolio
59%
103%
72%
Performing Net NPE Total Loan PortfolioRWA Density
DTA & Tax Credit with CET1 CapitalEUR bn
DTA 250%
RWf
DTC 100%
RWf
CET1 7.8 6.6
DTC
IFRS9
Other DTA
IFRS 9 and B3 DTA amortisation
Amortisation 2020 2021 2022 2023 2024
IFRS 9 -239 -319 -398 -398
DTA Basel 3 -39 -39 -39 -39 -39
EUR mn
%
36
Regulatory Capital and Capital Requirements
EUR mn
8,2897,687 7,827 7,830
8,342
(602)
(1,012)
1,152 3 512
OrdinaryEquity
Intangibles Tangiblebookvalue
DTADeductionfrom CET1
Other CET1capital
Hybrids Tier 1 LowerTier II
TotalCapitalRatio
11.1% Tangible book value / Tangible Assets
Equity to regulatory capital bridge
2.5%
1.5%
4.5%
2.0%
3.0%
0.5%
2020 OCR
(pre)
4.5%
1.5%
3.0%
2.0%
2020 OCR
(post relief measures)
14.0%
11.0%
P2R
CCB
O-S II
AT1
Tier 2
Pillar 1
Composed 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
37
Alpha Bank
3
8
13
20
24
26
34
37
45
Pages
• 2020 Highlights
• 2021 Outlook
• Financial Performance Analysis
• Macroeconomic Update
• Appendix
ESG
Asset Quality
Capital
Volumes
P&L
38
Balance sheet composition
Asset split
EUR bn
Liabilities and Equity splitEUR bn
17.1
24.8
4.3
5.3
0.8
39.4
10.1
2.7
7.5
Dec-20
70.1
Net
loans
PPE
DTA
Other
Securities
Cash
Due from Banks
3.6
8.3
1.2
30.1
13.7
1.2
11.9
Dec-20
Other (Incl. HFS)
Due to Banks
excl. ECB
43.8
ECB
Time
deposits
Core
deposits
Debt
securities
Equity
Other
70.1
4.2
5.3
0.8
39.8
10.5
2.8
5.1
Sep-20
68.6
Net
loans
PPE
DTA
Other
Securities
Cash
Due from Banks
Other (Incl. HFS)
17.1
24.8
3.8
8.5
1.4
27.3
14.4
1.3
11.9
Sep-20
Due to Banks
excl. ECB
41.7
ECB
Time
deposits
Core
deposits
Debt
securities
68.6
39
Business Volumes
(€ mn) Dec 2020 Sep 2020 Jun 2020 Mar 2020 Dec 2019% Dec 2020/
Dec 2019
Group Gross Loans 49,130 49,148 48,756 49,095 48,731 0.8%
Mortgages 17,008 17,073 17,181 17,294 17,474 (2.7%)
Consumer Loans 4,187 4,208 4,207 4,218 4,258 (1.7%)
Credit Cards 1,257 1,309 1,297 1,310 1,415 (11.2%)
Small Business Loans 5,054 4,985 4,789 4,792 4,842 4.4%
Medium and Large Business Loans 21,623 21,574 21,281 21,482 20,741 4.3%
of which:
Greece 42,538 42,485 41,999 42,240 41,777 1.8%
Mortgages 13,893 13,955 14,049 14,144 14,333 (3.1%)
Consumer Loans 3,715 3,736 3,734 3,738 3,775 (1.6%)
Credit Cards 1,223 1,274 1,263 1,274 1,378 (11.3%)
Small Business Loans 4,990 4,920 4,724 4,726 4,776 4.5%
Medium and Large Business Loans 18,717 18,600 18,229 18,357 17,514 6.9%
of which: Shipping Loans 2,234 2,213 2,301 2,246 2,172 0.9%
Southeastern Europe 6,196 6,287 6,370 6,458 6,535 (5.4%)
Accumulated Provisions (9,841) (9,437) (9,419) (9,422) (9,558) 4.3%
Group Net Loans 39,380 39,808 39,428 39,767 39,266 0.2%
Customer Assets 49,332 46,661 45,776 46,315 45,929 7.4%
of which:
Group Deposits 43,831 41,657 40,868 41,894 40,364 8.6%
Sight & Savings 30,141 27,288 25,845 24,826 23,362 29.0%
Time deposits & Alpha Bank Bonds 13,690 14,369 15,024 17,067 17,002 (19.5%)
Greece 38,035 35,804 34,991 36,081 34,450 10.4%
Sight & Savings 27,271 24,471 23,138 22,253 20,830 30.9%
Time deposits & Alpha Bank Bonds 10,764 11,333 11,852 13,829 13,620 (21.0%)
Southeastern Europe 5,222 5,267 5,290 5,202 5,266 (0.8%)
Money Market Mutual Funds 93 101 105 111 127 (26.5%)
Other Mutual Funds 1,741 1,530 1,485 1,313 1,789 (2.7%)
Private Banking 3,667 3,372 3,317 2,997 3,648 0.5%
40
Breakdown of loans portfolio – December 2020
Media &
Communication
1%
Manufacturing
11%
Energy
2%
Agriculture
1%
Real Estate
4%
Construction
5%
Other
5%Tourism
5%
Transportation
7%
Trade
13%
Households
46%
€49.1bn
Credit Cards
3%
Consumer loans
9%
SBLs
9%
Mortgages
35%
Wholesale loans
44%
Handysize/Handymax (Bulk Carriers)
18%
Panamax (Bulk Carriers)
22%
Suezmax (Tankers)
10%
Capesize (Bulk Carriers)
11%
Product (Tankers)
12%
Panamax (Tankers)
3%
Afamax (Tankers)
3%
VLCC (Tankers)
4%
Containers
8%
LNG
5%
Passenger Vessels
4%
€49.1bn
€2.2bn
Total Group loans – per segmentEUR bn
Tankers
32%
Dry Bulk
51%
Group Loans portfolio structure EUR bn
Shipping loans portfolio structureEUR bn
41
Revenue to be supported by increase in new financing of €5.6bn in 2020 vs. €3.5bn in 2019
New disbursements – per categoryEUR mn
FY 2020 Business disbursements – per sector
Construction
4%
Entertainment
3%
Agriculture
3%
Real Estate
4%
Transportation
18%
Other
7%
Tourism
10%
Energy
11%
Manufacturing
18%
Trade
22%
Loan disbursements of €5.6bn in FY 2020
94% to business, 6% to individuals
Business disbursements primarily towards sectors that drive the economy
such as transportation, manufacturing, trade and energy
Q1
19
Q2
19
Q3
19
Q4
19
FY
19
Q1
20
Q2
20
Q3
20
Q4
20
FY
20
Individuals 48 70 75 119 312 64 84 87 82 318
Business 567 842 907 891 3,206 1,575 938 1,462 1,325 5,299
Total 615 911 982 1,010 3,518 1,639 1,022 1,549 1,407 5,617
€5.3bn
42
Deposits flow per quarter
Alpha Bank deposits evolution in GreeceEUR bn
34.5 36.1 35.0 35.8 38.01.4
0.91.3
2.80.2
(2.0) (0.5)(0.6)
Dec-19 Core Time Mar-20 Core Time Jun-20 Core Time Sep-20 Core Time Dec-20
Δ Time
Δ Core
34.5 36.1 35.0 35.838.0
1.2
(1.4)
0.7 1.30.4 0.3 0.1 0.9
Dec-19 Bus. Indiv. Mar-20 Bus. Indiv. Jun-20 Bus. Indiv. Sep-20 Bus. Indiv. Dec-20
Δ Individuals
Δ Business
Q1:
€1.6bn
Q2:
(€1.1bn)
Alpha Bank deposits evolution in GreeceEUR bn
Deposits breakdown – December 2020
Note: Business deposits include State deposits
Deposits breakdown – December 2020
Core72%
Time28%
Individuals69%
Business31%
Q3:
€0.8bn
Q4:
€2.2bn
43
Wealth management evolution
Asset Management balancesEUR mn
Alpha Private Bank balancesEUR mn
673 633 647 708
1,548
1,278 1,3001,474
61
51 50
48
2,282
1,962 1,997
2,230
Dec-19 Jun-20 Sep-20 Dec-20
Money Market Mutual Funds
Non Money Market Mutual Funds
Other AUM
437 486 525 593
2,934 2,779 2,764 2,859
1,167997 993
1,102
4,5394,262 4,282
4,553
Dec-19 Jun-20 Sep-20 Dec-20
Discretionary Advisory Execution Only
44
Quality improvement of our remote services resulted in increased digital sales penetration
Shift of financial transactions from
Branches to digital networks (e-banking,
ATM and APS)
(% new e-banking subscribers through mobile vs. branches)
93.3%
peak in
Apr-20
(% share of digital over total)
Significant increase of remote
registrations vs. visiting a branch
78.5%
peak in
Apr-20
792,000 active users
+45% yoyin 2020 150 million
logins
+69% yoyin 2020
13.4 million
financial
transactions
+68% yoy in
2020
Mobile Banking
>145,000 new users
~3.5 million transactions
in 2020
Alpha Bank the only Greek Bank offering
Apple Pay to its customers1
1| Automated Payment Systems
336k new e-banking
subscribers in 2020
The only Greek Bank offering a full range of digital
wallets: Apple Pay, Garmin Pay, myAlpha Wallet
Covid-19 further increased the use of contactless
transactions with Alpha Bank cards to 7 out of 10
Key initiatives for 2021
▪ Redesign and digitize the end-to-end retail credit journey,
taking an omni-channel approach
▪ Make most common retail credit products available
online, reducing drastically approval time
▪ Further reduce monetary transactions in branches by
transferring business-related transactions to digital
channels
▪ In addition to “myAlpha rendezvous”, further enhance the
Bank’s remote servicing and sales channels
Q1 Q2 Q3 FYQ4
88.3%
86.7%
84.3%
89.4%
86.7%
92.8%
87.3%
92.7%93.4%
92.1%
2019 2020
Q1 Q2
23.9%
FYQ3 Q4
45.4%43.3%
30.7%
41.9%
22.6%
60.1%
25.1%
30.6%25.7%
2019 2020
45
Alpha Bank
3
8
13
20
24
26
34
37
45
Pages
• 2020 Highlights
• 2021 Outlook
• Financial Performance Analysis
• Macroeconomic Update
• Appendix
ESG
Asset Quality
Capital
Volumes
P&L
46
Net Interest Income
NII qoq evolutionEUR mn
Net Interest Income in Q4 2020 increased by 2% qoq at Euro 388 million on
higher contribution from asset-side.
Loans NII increase of €5.1bn is mainly attributed to increased spreads
dominated by the market rate movement.
Deposits NII decrease stemming from increased deposit balances, and further
reduction of market rates partially offset by repricing
5.1 4.1381.8
NII
Q3 20
Loans
-2.8
Deposits
-0.2
Funding Bonds
& Other
NII
Q4 20
388.0
NII decompositionEUR mn
(52) (48) (47) (51) (53)(10) (10) (4)
44
399 390 391 386 391
50 50 51 42 46
Q4 19 Q1 20 Q2 20 Q3 20 Q4 20
Bonds & other Loans Funding Deposits
387 381 391 382 388
€6mn
47
Net Fee and Commission income
Net Fee & Commission Income evolution y-o-yEUR mn
Net Fee & Commission Income evolution q-o-qEUR mn
Net Fee and Commission income in Q4 20 stood at €84mn, down by 1.2% q-o-q
primarily attributable to a decreased performance of card business, on the back of
reduced transactions due to the lockdown, which was partially offset by higher loan
commissions and increased fee generation from asset management
Net Fee and Commission income amounted to €335mn in 2020, a yearly
decrease of 1%. Reduced commissions from loans and other banking
transactions due to reduced transactions as a result of the pandemic were
partially offset by the increased commissions of mutual funds
60
13 3 1
66
340
271
9 11
Loans Bancassurance
& Private
Banking
FY 19 Asset
MgmtIB &
Brokerage
258
(5)
FY 20Cards
335
Other
Commercial
Banking
(9)
Commercial BankingAsset Gathering
& Bancassurance IB & Brokerage
2 03 1
Other
Commercial
Banking
63
68
15
Asset
Mgmt
Bancassurance
& Private
Banking
Loans
(6) (1)
84
3
Q4 20Cards
85
Q3 20 IB &
Brokerage
2
18
-1%-1%
48
Loan and deposit spreads
Net loan balances & spreadsEUR bn
Deposit mix & cost evolutionEUR bn, bps
Lending spreads (Greece and SEE) Deposit spreads (Greece and SEE)bps bps
End of
quarter
balances
39.3 39.8 39.4 39.8 39.4
402 400395 392
397
Q4 19 Q1 20 Q2 20 Q3 20 Q4 20
Net Loans Group loans spread
31%
69%
% Total
854 855 858 845 852
588 568568 571 579
417 416 422 417 411
397 393 386 380 383
251 251 250 249 255
Q4 19 Q1 20 Q2 20 Q3 20 Q4 20
Consumer Credit
Small BusinessLoans
SEE
Large Corporates
Mortgages
23.4 24.8 25.8 27.3 30.1
17.0 17.1 15.0 14.4 13.7
40.4 41.9 40.9 41.7 43.8
(50) (47) (45) (47) (48)
Q4 19 Q1 20 Q2 20 Q3 20 Q4 20
Core deposits Time deposits Group deposits spread
(9)(7)
(15) (19)(18)
(45) (45) (45) (51) (52)
(73)(64)
(56) (52) (52)
Q4 19 Q1 20 Q2 20 Q3 20 Q4 20
SE Europe
Sight andSavings
TimeDeposits
49
Recurring Operating Expenses
Recurring OPEX evolution qoqEUR mn
Recurring operating expenses for the Group continued to decline, down by 4% y-o-y or
€39mn to €1,042mn, as a result of reduced General expenses and lower Staff Costs
General Expenses decrease is attributed to lower NPL remedial management costs as well
as on the back of cost cutting measures to reduce third party spend, marketing and other core
expenses
Staff Costs’ reduction, mainly reflects the impact from the Bank’s headcount reduction due
to the Voluntary Separation Scheme (VSS) implemented in our operations in Greece in 2019
D&A increase is mostly attributable to an intangible assets increase due to IT capex
Recurring OPEX evolution yoyEUR mn
117 115
105
5 7
110
39 3939
Staff costsQ3 20
(2)
General
expenses
0
D&A Q4 20
264 274
Cepal
9 12
145154
FY 19
477
Staff costs
General
expenses
Depreciation
& amortization
General
expenses
(30)
Staff
costs
D&A
459
448
12
1,081
FY 20
428
(29) Cepal
1,042
Cepal
General
expenses
Staff costs CepalDepreciation
& amortization
1 | FY 2020 Opex is pro-forma for Cepal’s consolidation. This impacted Recurring FY 2020 expenses by €11.7mn, out of which €6mn staff, €5.2mn G&A expenses and €0.5mn D&A
1
+ €10mn
+4%
- €39mn
-4%
50
Operating Expenses
Recurring OPEX evolution
Employees Branches
EUR mnEUR mn FY 19 FY 20 yoy %
Staff costs (458.8) (434.4) (5.3%)
General Administrative
expenses(477.2) (453.0) (5.1%)
Depreciation and
amortisation(144.5) (154.5) 6.9%
Recurring OPEX (1,080.5) (1,042.0) (3.6%)
Extraordinary costs (94.2) (115.8) …
Total OPEX (1,174.7) (1,157.8) (1.4%)
117 107 106 107 114
130 107 108 117 120
3738 38 39
39
284252 253 264 274
Q4 19 Q1 20 Q2 20 Q3 20 Q4 20
Depreciation &amortisation
Generaladministrativeexpenses
Staff costs
13,856
11,863 11,72711,314 11,251
10,530 10,511 10,509 10,4819,712
Dec-15 Dec-16 Dec-17 Dec-18 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20
FYROM
-240
VSS Cy
-249
Greece 9,687 8,888 8,667 8,147 8,080 7,354 7,330 7,321 7,296 6,687
Serbia
-836
Hilton
-323
VSS Gr
-523897
721670
629 600 580 556 549 534 519
Dec-15 Dec-16 Dec-17 Dec-18 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20
Bulg
-83
FYROM
-18
Serbia
-67
Greece2 626 533 483 443 414 394 369 361 347 336
1| Cepal’s consolidation impacted Recurring expenses by €2.6mn. 2 | Includes corporate and private banking centers. 3| including sabbaticals. 4| pro forma for Cepal deconsolidation of 816 FTEs as of Dec-20
1
VSS Gr
-836
3
4
51
SEE Operations
1| Country View. 2| Excluding €16.2mn one-off expenses related to NPE management costs in Cyprus and €26.2mn 2020 VSS cost
EUR mn Δ% Δ% Δ% Δ%
Dec-20 Romania yoy Cyprus yoy Albania yoy Total SEE yoy
Deposits 2,644 1.9% 2,067 (3.7%) 512 (2.8%) 5,222 (0.8%)
Gross Loans 2,643 (0.5%) 3,271 (8.7%) 282 (4.7%) 6,196 (5.2%)
Mortgages 1,250 6.6% 1,762 (5.8%) 76 6.8% 3,089 (0.9%)
Consumer Credit 231 (2.9%) 230 (3.2%) 39 9.0% 500 (2.2%)
Businesses 1,162 (6.7%) 1,280 (13.2%) 166 (11.7%) 2,608 (10.3%)
NPE ratio 6.5% 73.3% 15.9%
NPE Cash coverage 87% 56% 42%
NPE Total coverage 144% 100% 128%
NPL ratio 3.5% 59.8% 10.6%
NPL Cash coverage 158% 69% 63%
NPL Total coverage 211% 109% 152%
Total Operating Income 137.8 (2.8%) 97.6 (7.6%) 19.6 (3.6%) 255.0 (4.8%)
Operating Expenses (pre O/H allocation)2 (105.0) (7.0%) (71.9) 8.8% (18.3) 8.7% (195.2) (8.1%)
Impairment Losses (11.5) (14.1%) (157.6) 60.8% (0.7) … (169.8) 48.4%
Profit Before Tax (pre O/H allocation) 21.3 36.9% (131.9) …. 0.5 21.2% (110.1) ….
Branches 131 17 34 182
Employees 2,006 531 416 2,953
1
52
Alpha Bank Group
(€ mn) Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019qoq%
change
yoy %
change
Net interest income 388.0 381.8 390.7 381.2 387.1 1.6% 0.2%
Net fee and commission income 83.8 84.8 77.5 89.2 93.1 (1.2%) (10.0%)
Income from financial operations 429.7 42.5 134.2 83.5 122.3 … …
Other Income 5.0 7.0 2.6 9.9 6.0 … …
Operating Income 906.5 516.1 604.9 563.8 608.7 75.6% 48.9%
Staff costs (113.7) (107.3) (106.4) (107.0) (116.9) 6.0% (2.7%)
General administrative expenses (120.5) (117.1) (108.5) (107.0) (130.2) 2.9% (7.5%)
Depreciation and amortization (39.4) (39.2) (38.4) (37.5) (37.3) 0.3% 5.6%
Recurring Operating expenses (273.6) (263.6) (253.2) (251.6) (284.4) 3.8% (3.8%)
Extraordinary costs (95.9) (5.0) (7.6) (7.4) (66.7) … …
Total Operating expenses (369.4) (268.6) (260.8) (259.0) (351.1) 37.5% 5.2%
Impairment losses on loans (569.5) (168.6) (260.6) (307.4) (244.8) … …
Other impairment losses 1.3 (2.0) (3.7) (9.0) (6.1) … …
Profit / (Loss) before income tax (31.1) 77.0 79.8 (11.6) 6.7 … …
Income Tax 1.5 (32.7) 22.0 (0.9) (0.2) … …
Profit / (Loss) after income tax from continuing
operations(29.6) 44.3 101.8 (12.5) 6.5 … …
Profit / (Loss) attributable to shareholders (29.7) 44.3 101.8 (12.6) 6.3 … …
Net interest Margin (NIM) 2.2% 2.2% 2.3% 2.3% 2.5%
1
1| Trading income has been restated due to the effect from the reclassification of Visa shares from FVOCI to FVTPL. Q3 20 includes €14.3mn gain resulted from the valuation at fair value of Cepal. In Q4 20, €171mn relate to GGB swap and €42mn to the sale
of investment in MasterCard.
53
Group Results by Business Unit
(€ mn)
RetailCommercial &
CorporateSE Europe
Investment
Banking &
Treasury
Asset
ManagementOther Group
Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
Operating Income 822.7 811.0 617.8 601.9 255.0 267.7 796.1 546.9 70.8 70.5 29.0 23.4 2,591.4 2,321.3
Net Interest Income 650.4 679.0 520.1 519.4 201.7 210.4 153.8 122.4 14.5 13.8 1.2 2.4 1,541.6 1,547.3
Net fee and Commission Income 110.6 116.2 106.8 125.6 34.1 31.7 32.1 18.9 51.9 48.1 (0.1) (0.2) 335.3 340.1
Trading & Other 61.8 15.9 (9.0) (43.1) 19.2 25.6 610.1 405.6 4.5 8.6 27.9 21.3 714.4 433.9
Operating Expenses (566.3) (595.3) (166.1) (178.2) (254.6) (212.4) (30.2) (28.7) (38.1) (35.3) (102.5) (124.8) (1,157.8) (1,174.7)
Staff Costs (225.9) (249.9) (73.8) (81.6) (94.3) (93.3) (13.3) (12.8) (20.3) (18.9) (32.1) (3.5) (459.5) (459.9)
General Administrative Expenses (257.6) (270.3) (61.9) (68.4) (110.5) (94.8) (13.1) (12.8) (13.4) (12.2) (54.2) (62.1) (510.7) (520.6)
Depreciation & Amortisation (82.8) (75.2) (30.4) (28.2) (23.7) (24.3) (3.9) (3.1) (4.4) (4.2) (16.2) (9.6) (161.4) (144.5)
Expenses for VSS (26.2) 0.0 0.0 (49.6) (26.2) (49.6)
Pre Provision Income (PPI) 256.4 215.7 451.7 423.6 0.3 55.4 765.8 518.2 32.8 35.1 (73.5) (101.4) 1,433.6 1,146.6
Impairment Losses on Loans (898.4) (559.6) (236.0) (322.8) (169.2) (114.8) (2.7) 2.4 (0.0) 0.0 0.1 (0.0) (1,306.1) (994.8)
Other Impairment Losses 0.0 0.0 0.0 0.0 (0.6) 0.4 (11.7) 3.6 (1.1) 0.4 0.0 0.0 (13.4) 4.4
Profit / (Loss) before tax (641.9) (343.9) 215.7 100.8 (169.5) (59.0) 751.4 524.2 31.7 35.6 (73.4) (101.4) 114.0 156.2
54
Results: Retail Business Unit
(€ mn) Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019
Operating Income 244.2 195.4 193.6 189.6 207.7
Net Interest Income 163.6 159.0 164.8 163.0 164.7
Net fee and Commission Income 27.8 31.5 27.3 24.0 32.2
Trading & Other 52.8 4.9 1.5 2.6 10.7
Operating Expenses (151.2) (141.7) (138.6) (134.7) (150.1)
Staff Costs (59.1) (55.5) (56.3) (54.9) (61.9)
General Administrative Expenses (70.5) (65.3) (62.0) (59.8) (69.2)
Depreciation and Amortisation (21.5) (21.0) (20.3) (20.0) (19.0)
Impairment losses on Loans (481.8) (136.5) (125.6) (154.4) (123.7)
Other Impairment Losses - - - - -
Profit / (Loss) before tax (388.9) (82.9) (70.6) (99.5) (66.1)
RWA e 17,378 17,614 17,869 18,295 18,603
55
Results: Commercial & Corporate Business Unit
(€ mn) Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019
Operating Income 156.8 149.4 158.4 153.2 119.6
Net Interest Income 131.7 127.4 133.5 127.4 129.2
Net fee and Commission Income 27.6 28.0 24.1 27.1 32.4
Trading & Other (2.5) (6.0) 0.8 (1.3) (42.0)
Operating Expenses (44.1) (42.5) (40.5) (39.0) (44.9)
Staff Costs (19.1) (18.7) (18.0) (18.0) (21.2)
General Administrative Expenses (16.8) (15.9) (15.3) (13.9) (16.6)
Depreciation and Amortisation (8.2) (7.9) (7.1) (7.1) (7.2)
Impairment losses on Loans 27.4 (39.9) (113.5) (109.9) (81.1)
Other Impairment Losses - - - - -
Profit / (Loss) before tax 140.1 67.0 4.4 4.3 (6.4)
RWA e 14,324 15,177 16,257 16,349 16,245
56
Results: Asset Management Business Unit
(€ mn) Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019
Operating Income 25.0 11.9 14.0 20.0 19.5
Net Interest Income 3.5 3.7 4.1 3.2 3.9
Net fee and Commission Income 14.8 12.0 10.2 14.9 14.5
Trading & Other 6.7 (3.8) (0.2) 1.9 1.1
Operating Expenses (10.8) (9.9) (8.4) (9.0)(9.3)
Staff Costs (5.4) (5.6) (4.5) (4.7) (5.0)
General Administrative Expenses (4.1) (3.2) (2.9) (3.2) (3.3)
Depreciation and Amortisation (1.3) (1.0) (1.1) (1.1) (1.1)
Impairment losses on Loans 0.2 (0.3) (0.0) 0.0 (0.1)
Other Impairment Losses (0.3) (0.5) (0.0) (0.3) (0.1)
Profit / (Loss) before tax 14.1 1.3 5.5 10.7 10.0
RWA e 339 338 347 362 362
57
Results: Investment Banking & Treasury Business Unit
(€ mn) Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019
Operating Income 406.4 77.8 174.1 137.7 196.5
Net Interest Income 38.6 40.9 38.9 35.3 35.1
Net fee and Commission Income 5.1 4.6 7.9 14.5 5.3
Trading & Other 362.6 32.3 127.3 87.9 156.1
Operating Expenses (7.8) (8.1) (7.1) (7.2) (7.9)
Staff Costs (3.8) (3.5) (3.0) (3.0) (3.6)
General Administrative Expenses (2.9) (3.5) (3.2) (3.4) (3.4)
Depreciation and Amortisation (1.1) (1.1) (0.9) (0.9) (0.9)
Impairment losses on Loans (0.6) (1.9) 1.8 (2.0) 3.5
Other Impairment Losses 1.7 (1.5) (3.6) (8.3) (5.9)
Profit / (Loss) before tax 399.8 66.3 165.2 120.2 186.2
RWA e 6,059 5,911 5,792 5,724 5,389
58
Results: SE Europe Business Unit
(€ mn) Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019
Operating Income 64.9 63.9 60.7 65.4 68.8
Net Interest Income 50.1 50.3 49.3 52.0 52.9
Net fee and Commission Income 8.5 8.8 8.0 8.7 8.6
Trading & Other 6.3 4.7 3.5 4.7 7.2
Operating Expenses (90.7) (52.7) (51.8) (59.4) (59.7)
Staff Costs (23.7) (23.2) (23.0) (24.4) (24.6)
General Administrative Expenses (35.9) (23.6) (22.3) (28.7) (29.0)
Depreciation and Amortisation (4.9) - - - -
Expenses for VSS (26.2) (5.9) (6.5) (6.3) (6.1)
Impairment losses on Loans (114.8) 10.1 (23.3) (41.1) (43.4)
Other Impairment Losses (0.2) (0.0) (0.1) (0.3) (0.0)
Profit / (Loss) before tax (140.8) 21.3 (14.5) (35.5) (34.4)
RWA e 4,370 4,287 4,361 4,661 4,719
59
Results: Other Business Unit
(€ mn) Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019
Operating Income 13.3 17.2 (1.6) 0.2 6.5
Net Interest Income 0.5 0.3 0.2 0.2 1.3
Net fee and Commission Income 0.0 (0.0) (0.1) (0.0) (0.0)
Trading & Other 12.8 16.9 (1.7) (0.0) 5.2
Operating Expenses (64.8) (13.7) (14.4) (9.6) (79.2)
Staff Costs (26.7) (1.5) (1.8) (2.2) (1.8)
General Administrative Expenses (28.9) (9.8) (10.1) (5.3) (24.7)
Depreciation and Amortisation - - - - (49.6)
Expenses for VSS (9.2) (2.4) (2.5) (2.1) (3.1)
Impairment losses on Loans 0.1 0.0 (0.0) 0.0 (0.0)
Other Impairment Losses - - - - -
Profit / (Loss) before tax (51.5) 3.5 (15.9) (9.5) (72.8)
RWA e 3,211 2,826 2,327 2,165 2,482
60
Glossary (1/2)
APM Definitions Relevance of the metric Reference number Abbreviation
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 and impairments on Group companies" 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 ratioCommon 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 Loans The 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
61
Glossary (2/2)
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
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 7 Recurring OPEX
Securities This 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' Equity This item corresponds to "Equity attributable to equity owners of the Bank", 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
62
Alpha Bank Contacts
General Manager – CFO
Internet : www.alpha.gr
Reuters : ACBr.AT (shares)
Bloomberg : ALPHA GA (shares)
Alpha Bank Depository Receipts (ADRs)
Reuters : ALBKY.PK
Bloomberg : ALBKY US
Lazaros Papagaryfallou
+30 210 326 2261
Manager
Investor Relations Division
Dimitrios Kostopoulos
+30 210 326 2271
Deputy Manager
Investor Relations Division
Elena Katopodi
+30 210 326 2272
Senior
Investor Relations Officer
Stella Traka
+30 210 326 2274
Investor Relations Division
+30 210 326 2271
+30 210 326 2273
+30 210 326 2277
40 Stadiou Street,
102 52, Athens
