Alior Bank S.A.

Ladies and gentlemen, this is Dominik Prokop from Investors' Relations and Supervision. Welcome to everyone to the conference of Alior Bank after the third quarter 2024. At the very beginning of our conference, we talk about the results of our bank and the main message will be presented by the employees of the bank, which is the CEO, Grzesiek Olszewski, Tomasz Miklasz, vice president, CRO, and CFO. And in the second part, after the presentation of results, we'll move to the Q&A session. However, before I give the floor to Grzegorz, I would encourage all of you to ask questions during the first part of the presentation, and therefore it will be able to fluently move to Q&A. So, Grzegorz, the floor is yours. Thank you, Dominik, thank you. Ladies and gentlemen, welcome to the results presentation for quarter three. Let's move on to figures that you all know very well. We tried to talk about the context of the figures. When we talk about revenues, which is exceeding the forecast of the brokers' agencies, this is due to the consistent realization of the strategy in the area of risk, which means we lowered the profile, we changed the asset structure so that we maintain a strong business dynamics, which means so that we maintain the cash loans or the business customer segment. This is what we are still doing. Macro, well, not everything is in our favor, which we'll present in a second. However, the risk profile of the bank We managed to successfully reduce that, and it brings us some tangible results, which will be discussed later on by the President Tomasz. When we talk about commission results, then President Gibała will talk about that. This is a result of the consequence of accounting. We are trying to maintain this result at a similar level. And we assume, especially in the business customer area, we assume a long-term development. In other areas, we did not perform a deep pricing. However, we are gaining new clients. Let's keep in mind that in a situation of high interest rates, we have to remember about acquisition, about getting new clients with regular payments. I'll talk about it later on. When we talk about the indicators, I would like to drive your attention to decreasing NPL. We see the increase of the volume of working loans, of performing loans. Also the gross loans volume grew and assets as well. I believe that Alior is well prepared for the improving macroeconomical situation so that we can benefit from it, especially the second pillar of our strategy, which is the business customer. We want to build on that. We have some impressive results already, which we'll talk about in a second. I believe we are one of the most effective banks. CI33.4, then ROE, COR, very, very good result, below 1%, and this is all the result of a really well-prepared strategy. This is the direction we are going into. And at every press conference, we try to explain it in a transparent way. But you can see clearly the benefits already. When we move to the retail customer segment. 1.5 on loan sales, 1.5 billion, close to 1 billion PLN on mortgage loan sales. Dynamics year on year is more than 1.4 billion. And we are a leader in this segment. We've only improved that. And the increase of customers year on year, this is plus 18%. And in the total number of regular customers is also growing. In the higher mobile culture, we have also started with our flagship service AlioPay. We have just started this month the first campaign promoting this product, since the product is already available to the customers and to the potential customers who would like to benefit from it when we talk about the business opportunities that we had this quarter first of all that would be the safe 2 safe mortgage we have benefited from that from the very first day then the increase of sales increase of mortgage loans above really above possibilities. I mean, so far, Alior Bank has not been calibrated so that we could generate such sales. So, for us, this is a huge success.

Asset increase to 176 billion.

That means that we have a lower profile, 17. 17 billion, sorry, excuse me, then 1,200,000,000 of the volume of positive decisions on the safe mortgage. And then by the end of September, we had 6% here in the share of in agreement signed. However, right now, on the 5th of October, it's above 12%. Let me go back to the market share. It's 2.3%, and now the agreement signed, it's 12% and even above. Then cash loans. It used to be crucial, it is crucial, and it will still be crucial. Over 50% of share of remote sales. But the first quarter, it is the first quarter since a long time when assets are on a higher level than in the previous quarter during our last conference. I told you that we've slowed down here, but this is the first quarter where this portfolio grew, where at the same time we have repricing and maybe a bit weaker sales in the third quarter. However, what is important is repricing. Repricing has been done. We see that we are able to sell cash loans in a more effective way. And that's why we use that momentum. Consumer finance loans, that is also an important part for Alior Bank. The sales of CF loans is on a very good level. The fact that we are recognized among our partners, we put emphasis on our innovation and that means that in the first quarter, as I mentioned, we decided to let it go due to repricing and now we can see that that strategy was the right one because the market still would come back to us and that really happened. When we talk about the relationship with our customers, retail customers, we have year-on-year increase, quarter-to-quarter increase. We are especially here in the management board happy with the systematic account inflows increase so that this... grows together with our bank. This is also confirmed by the number of accounts as well as the increase of the number of mobile application users. We have a quarter. Quarter by quarter, we're growing by several thousand. It's a very good result when we take a look at the market. At the same time, we are going consistently through the evolution. We are changing this mobile application. We are adding on next services. And we're improving sales services. This is, as a result, we have plus 50% of the sales here. Right now, we are mobile bank. exclusively for part of the services. We hope that this channel is going to be the dominant channel. The bleak transactions grew by 40%. That shows that we are becoming a first choice bank for a greater number of customers. Then the second pillar, when we are supporting entrepreneurship, which is business customer segment here, it's crucial that we are defining certain goals and we are meeting those goals. We are growing 2.5%. fold faster than the market up to 5 million PLN, which makes a difference for us because we are able to have the full relation with the client so that we have a product there and a deep relation. We are diversifying here. We used to be recognized mainly as a bank. We are still recognized as a bank that understands the sector of housing, of construction, real estate. So we are growing in trading as well, quicker than market. So this is also a part of the strategy of the bank to diversify our activities so that we are adjusted to different possibilities. When we talk about sales of non-loan products, one of the key things in the strategy, so this is the relation with the business customer, but also non-mortgage, non-loan products. So in order to make this relation strong, as you see, it's over three-fold increase when we compare this year versus last year. In order to maintain effectiveness, we have to We have to simultaneously have this increase in market share. And as you can see, it's being done in the retail customer. We have remote processes that are able to service our clients quicker. We are able to take the burden away from the bankers. And in the third quarter, we have seen a dynamic increase in the remote dispositions. It's over 60% right now. And now when we take a look at this good trend in those remote services, it is right now over 60%, as I said, about the mortgage decision. It's good because on the one hand, it's a quick decision for the banker who is working on the process itself. But also it gives us a better quality and the control over the risk process and the possibility to forecast the risk costs for the future, which has this multidimensional meaning that we managed to implement in the retail segment. goal to build on that segment and we have consistently improved that. Moving on to the performing portfolios in each structure we can see that we have an improvement so that is we are growing faster than the market that's a very good information. The performing portfolio Year to year, we have those 20 million commitments. So the market is slowing down. We're growing. For us, this segment is between 20 and 60 million. That's the segment that is crucial for us. It's threefold greater dynamic, and it's a great achievement here. But we are also looking for possibilities, for chances here. Since we haven't been in this segment, we are now using this possibility to the maximum. So over 60 million, exceeding 60 million, we are also trying to build the assets. When we take a look at the balance of assets, Year on year, we have minus 17%. Quarter on quarter also. We are systemically reducing this balance. At the same time, we are taking care of the balance of performing balance. It's a good news since we are performing the transformation with the weaker macro.