Alior Bank S.A.

Ladies and gentlemen, we welcome you at the Alior Bank conference for the third quarter of 2021. The host of the meeting is Maciej Brzozowski, the vice president of the Alior Bank management, responsible for the risk area. The conference also includes Mr. Dariusz Szwed, vice president of the management responsible for business, Mr. Radomir Gibała, CFO, Of course, due to the restrictions resulting from the epidemic recommendations, our conference is held in a remote format. In the first part, we will present to you the results presentation, and then we will move on to the Q&A session. Thank you. In this case, I give the floor to Mr. President Maciej. I invite you. Good morning.

Ladies and gentlemen, it is extremely nice to see you at the Elior Bank results conference for the third quarter of the current year. This time we have very pleasant news. I would like to note that Alior Bank recorded a net profit of PLN 150 million in the third quarter of the current year, and at the same time, when the ROE indicator was obtained at the level of 9.1%, the indicator C to I was 42.9%. At the same time, I would like to note that in the third quarter, the income of Alior Bank increased amounted to PLN 918 million, which is an increase of 3% from year to year. The net profit amounted to PLN 704 million, the provisional profit amounted to PLN 190 million, and the net profit margin amounted to 377%. And the bank has got a very secure capital position.

The TCR ratio amounted to 480 BPS. I'd like to stress also the importance of risk parameters. The core ratio was at a low level, at the level of 1.5%. the decrease was considerable as compared to the previous period. I'd like to stress that Alior Bank continues implementing improvements and we have improved the situation as regards loan sales and it has grown. It will be shown in the presentation. I'd like to stress the growth in loan sales value and the good situation as regards lease sale. On the next slide, I would like to show you the dynamics in terms of changes in our net profit as compared to Q3 of 2020, the result doubled. It was 150 million zloty. As regards our share in the market, so as it's presented on the slide, it amounted, as regards consumer finance, 16.9% as systematic growth by 12.3%. And cash loans, our share of about 12%, as I've said, our share in mortgage loans has been growing by 2.9% and very stable results as regards corporate loans. Now I'd like to give the floor to my colleague Dariusz Szwed. Good morning. A little bit about business-related issues. Q4 was a good time and as it was after holidays, we are very glad that we've reached such results. So, first of all, mortgage loans. This is something which is of great interest and I'm really glad that you are interested in those loans. It's, of course, a positive pressure for us. So, quarterly, there is this 2% decrease. We can explain it because, as you remember, Q3 of 2020, when earlier did not increase on contribution and it allowed us to reach a historical result. So now we reached the level of 940 million. It's a bit less, but quarterly we can see that sales have grown. And the same situation applies to our clients, the number of clients. And I must say that these are very important clients to us because in terms of relationships with clients and building these relationships, it's a very good situation because we can cross-sell products. I would like to also say that we are very proud of our sale of cash loans because of the pandemic. The level was low last year, but starting from Q3 after holidays, the sale of cash loans rebounded. So we are very glad that we have reached this level and CF This is a great advantage, and we can see that there's been a decrease, but Q4 is always the strongest one because people tend to consume more and buy more as of the end of the year. So we do hope that as of the beginning of the year, the sales will keep growing. However, it's still at a good level.