Alior Bank S.A.

Dzień dobry. Szanowni Państwo, tu Dominik Prokop, dyrektor Departamentu Relacji Inwestorskich i Nadzorów Wojcicielskiego Alior Banku.

Welcome to today's results conference, in which our board will summarize the results of Q3 2024. And as usual, the trends and results will be discussed by Zdzisław Wojtyla. Acting CEO, Jacek Ilin, Vice President, and Tomasz Miklas, Vice President of the Board. In the second part of the meeting, right after the presentations, we will move on traditionally to our Q&A. Before I give the floor to Zdzislaw, let me invite everybody who's watching and listening to us to ask questions during the first part of our conference. thanks to which we'll smoothly transition to the Q&A session. Thank you. And Zdzislaw, over to you. Hello, ladies and gentlemen. Thank you, Dominik. I'll have the pleasure to present the results for Q3, and we'll start by net profit, which amounted to 666 million zlotys. This is possibly the highest profit reported. Cumulated net profit for three quarters amounts to 1 billion 830 million. which are very good results, and we are very happy to communicate them to you. All the previous quarters in the previous years were also solid when it comes to net profit, which allowed us to build safe capital position of the bank. As you can see, the Tier 1 ratio is at 16.78%, and TCR is at 17.11%. These are solid foundations, and we are proud to have this one of the top performers in the business. When we look at the business, we would like to be proud of growth of the mortgage loan portfolio, which we're able to build over the last 12 months in particular, and we're able to go there to over 12 billion zlotys, which ensures over 30% of share in our credit portfolio. We would also like to share the number of mobile app users, which grew to 1.24 million, which is nearly 20% more than at the end of September 2023. The same goes for The number of customers with regular inflows, which amounted to 1.143 million, which is 71,000 more than at the end of September 2023. Something we would like to underline is the significant decrease in the cost of risk. The cost of risk after the first three quarters amounted to 305 million. This means that the cost of risk factor reduced to 72 base points, which is a very good result. The reduction of NPL ratio went to 7.1%, which is 2.23 percentage points in the last 12 months. If we look at other parameters and dynamics, I'd like to underline that we reached very high revenues that are higher than 4.5 billion zlotys, which is better by 415 million than in the last year. When we compare quarter to quarter, it's 163 zlotys better. The net profit also grew because if you compare the cumulated profit from last year and this year, we are 386 million zlotys better. If you compare quarter to quarter, we are 94 million better. Now, a few factors. If we look at the most important information, I'd like to underline that the volume of working credits, it grew by 5%. gross performing loans which translates to our profits now and the future. When we look at other important parameters such as cost income ratio in Q3 it's 30 percent and incrementally for three quarters it's 33.9 IF WE, ANOTHER GOOD PERFORMING PARAMETER IS NET INTEREST MARGIN, IT IS AT 6.32%, WHICH IS 16 PERCENTAGE POINTS BETTER YEAR ON YEAR, AND INCREMENTALLY AFTER THREE QUARTERS, 6.08%. Net results allowed us to achieve ROE at 25.7 in Q3 and 24.4 after three quarters cumulatively. The information about risk will be discussed by my colleague Tomek Nikolas. And to finish this part of the presentation, I would also like to mention that in Q3 what was important was providing support to the victims of flooding. We participated in all campaigns and I'd like to thank all our staff for their involvement Our support for Wielka Orkiestra Świątecznej Pomocy that coordinated support for people affected by flooding was significant. We also organized support for our staff that was affected by flooding. When it comes to external initiatives, we participate in sectoral initiative which consists of a temporary deferral of the payment of loan installments. We can also provide support through borrowers support fund and we also took other initiatives to help those affected with this crisis. Let me give now the floor to my colleague who will talk about business aspects of Q3. Let us move on to more details on... What happened in Q3 for individual client segment and business client segments? Let's start with individual clients. I'll discuss some issues that were discussed by Zdzislaw, the building of the relation clients, especially those that use mobile banking in Q3 and entire year when it comes to mortgage loans. cash loans and loan sales, starting with establishing lasting relationships with customers. When it comes to the total number of customers in Q3, it grew by 3% year on year. The number you can see On the top left corner four million clients. This includes clients with strong relations and as well as installment clients. This is why we have some variability, but we expect growth in Q4, which traditionally for installment loans is the most important. But the most important piece of information here is the increase in the number of customers with regular inflows. We can see 7% increase year on year. So it's customers that have current account but also have regular inflows. We have seventy one thousand more of such customers. And the number of accounts of our flagship product Contra is also by 70 percent. It's an account with a structure that encourages customers to perform both transactions. and to have regular inflows. The increase in the number of our mobile app users is supported by our focus on systematic growth of this channel. In Q3 we saw several improvements of this app, including POST SALES SERVICE AND CONTACT WITH OUR CONTACT CENTER, SOMETHING WE CALL MY CASES. We also allowed our customers to manage payment limits via the mobile app. The mobile app is becoming more and more a standalone channel responding to the needs of customers. more than mobile banking clients. Via the development of the mobile app and thanks to the efforts to educate customers and to promote this form of finance management at Alias, we can see a systematic growth practically in all quarters Over the last five quarters, we can see the steady growth of the number of users. Year on year, we are talking about 19% increase. We are talking not only about users who log on to this channel, but also use it for transactions. And the number of wire transfers initiated is 21%. We are also happy to see the increasing number of users who use blick transactions. We can see an impressive growth by 56 percent. Moving on to mortgage loan portfolio. As you have noted in the first slide the sales in Q3 was worth 600 million. Of course it's less than in Q3 2023 and in other quarters of that year.

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