Alior Bank S.A.

Ladies and gentlemen, Dominik Prokop, Investor Relations. I would like to welcome everyone on this wonderful day for Alior. Let us present our results for 2022. The results conference comes in two parts. The first section will present, or it was announced yesterday, comes back to the VIG20 index. We talked about it last year. We were preparing for this last year. We were working on it last year, and now we have achieved it. We're not talking very loudly about trying to get back to VIG20, but we did it. And apart from some one-off events that impacted our results, we indeed made it. So let us move on to the presentation so that we leave enough time for your questions. 60 million. That was our result. A very good quarter. That goes to show how much potential Aliorbank has. If you exclude extraordinary increasing interest rates, we didn't expect that people will be able to suspend their loans, that they'll get a credit vacation. As I said, we changed a lot in our bank in the retail division. And we are trying to get back to higher volumes in enterprise and business customers. Our NPL is less than 10 percent. That was the goal that we set, and that's something that we managed to achieve, because we expect that the economic situation will deteriorate and cost of risk will grow. Maybe not drastically, but still. So this NPL being below 10 percent, this is something that we want to maintain at the level of below 10 percent, especially that when interest rates come down, we want to have more space to activate lending. This is very important for us. We've been concentrating on building a strong foundation, so we were working both on the enumerator and the denominator of this whole equation. So let me talk about our efficiency. We are one of the most efficient banks in the sector, ROE, over 11 percent. And take a look at NIM. That's something that's, well, it's one of the higher results that I've seen out there, 5.92 percent for the whole year, 4.64. Sometimes you tend to ask whether that's the peak. Of course. Well, we are under pressure. Probably our potential for growth is sort of petering out, but we are a leader. So the level that we got to, this is something that really makes us stand out in the whole sector. On this slide also, let me point out look at the graph on the right-hand side, gross performing loans and how people overpay their mortgage. And right now, the volume of performing loans is at a stable level, which really is relevant from the point of view of high interest rates. And, well, our asset mix can really work in our favor, and it does. And you can see that on our interest results.

So let me start by talking about

business customers, because I want to show you how much work and how much effort we've put in to the small, medium and large segments. Look at our asset balance, it's grown by 6%. We have been saying all along that we wanted to increase or get back to the path of growth with business customers. Our NPL grew by or NPL fell by 4.1 percentage points, which really matters from the point of view of the future, from the point of view of credit risk. Sometimes you ask whether we open up to business customers. Do we know how to do it so that it doesn't come back and bite us? In terms of cost of risk, we can. We know how to do it. We have certain preferred industries. Preferred industries, meaning ones that we understand, meaning ones that we have figured out, and meaning ones that we understand the customers that we are going to fund. So the share of sales to preferred industries grew to 20%. So we are... developing the culture of risk in business so that our customer managers not only process applications, but in a way that's knowledgeable and reliable, but also later the way they work with customers. should also be very competent to build this culture of risk. So we will continue to do this. 20%, nearly 20% growth of our asset balance, the asset balance that we serve.