Alpha Bank Q3 2020 Results...2020/11/25 · Alpha Bank is the only systemic Bank that offers Apple pay and Garmin pay up to now ~150,000 active users in total Alpha Bank actively

Alpha Bank9M 2020 Results

Investor Presentation

November 25, 2020

2

Disclaimer

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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.

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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

• 9M 2020 Highlights

• Financial Performance Analysis

• Macroeconomic Update

• Appendix

ESG

Asset Quality

Capital

Volumes

P&L

3

10

17

21

24

30

33

40

Pages

4

Alpha Bank strategic highlights – 9M 2020

Operational

Turnaround

Business

performance

Financial

performance

Project Galaxy

1| Cepal’s consolidation impacted Q3 20 Recurring expenses by €2.6mn. 2| As of 30th October. 3| Pro-forma ratios are as of 30.9.2020 taking into account the senior notes.

Galaxy has entered the final stages of the transaction process; following selection of preferred bidder, signing of the

transaction is targeted by the end of 2020

HAPS-compliant credit pre-ratings have been received and applications for the provision of guarantees by the Greek State

on Senior notes (€3.7bn), have been submitted, securing key financials of the transaction

Post Galaxy, Alpha Bank’s NPL ratio3 in Greece down to 13% over total loans, while the NPE ratio3 is reduced to 24%

Acceleration of digital transformation resulted in increased digital sales penetration, with 260K new e-banking

subscribers in 9M 2020, while the share of monetary transactions performed in Q3 through digital channels remained

elevated at 93%, stable q-o-q, as opposed to 87% a year ago

Timely execution of the business plan announced in November 2019 despite adversities with our transformation plan

already underway. From the €120mm cost cutting announced, already 65% is secured with c. 25% of branches and 20%

of FTEs in Greece reduced in the last 2 years

New disbursements in Greece of €4.6bn year to date2 providing significant support to the economy

Private sector deposits in Greece up by €0.8bn in Q3 20, mainly from businesses

Improved Core PPI performance at €657mn (+4% y-o-y) in 9M 2020

Continued focus on cost discipline, with total Opex1 at €788mn (-4% y-o-y) in 9M 20 vs €824mn in 9M 19

Impairment losses on loans in 9M 2020 of €737mn materially affected by additional impairments of €287mn to

account for the anticipated Covid-19 impact

Strong capital buffers with Total CAD ratio at 18.3%

5

9M 19

2.3

4.0

FY 2020EFY 2019

4.4

9M 20 Ytd

2.5

4.24.6

3.5

>5bn+68%

+50%

Strong commitment to support the Greek economy with new credit year to date of €4.6bn in 2020; 9M 20 Disbursements up c.70% vs. last year

New financing to Individuals and businessesEuro bn

€4.6bn new disbursements until October include State support

programmes of:

€0.4bn disbursed to businesses under Entrepreneurship Fund II

"Business Funding” (TEPIX)

€0.7bn disbursed to businesses under State guarantee Scheme

Our target for the full year > €5bn, with the majority coming from new

financing to businesses under State guarantee Scheme

Businesses

Individuals

YTD Businesses disbursements – per sector

1

1| Figures as of 30.10.20

Other

6%

Entertainment

4%

Agriculture

3%

Construction

4%

Tourism

10%

Real Estate

5%

Energy

11%

Transportation

18%

Manufacturing

18%

Trade

21%

€4.4bn

1

6

Proactive management along with detailed segmentation reduce risks for the post-moratoria period

Active Moratoria on PEs

Active Moratoria on PEs - monthly evolutionGreece, Euro bn

Gefyra program update: Alpha Bank – c.44k applications amounting to

€2.7bn out of which €1.1bn is currently under moratoria

Proactive management with RM contact with all moratoria customers

(prior to 31/12) in order to identify segments requiring further support and

offer them appropriate solutions before turning into delinquency

Detailed segmentation of the portfolio based on specific criteria (protection

by Moratoria, eligibility of new law of State Subsidy, EBA Status, payment

behavior etc.) and design of a specific strategy for each segment

Products addressed to debtors impacted by Covid-19, involving a reduced

installment for the first 2 years and a gradual return to pre-modification

levels with tenure extension

€0.4bn moratoria implementations in Cyprus and €0.3bn in Romania

30.09.20

EBA deadline

on moratoria

applications

Greece, EUR bn 30.09.20

Total PE moratoria granted 5.4

o/w expired 1.2

o/w outstanding 4.2

As % of PEs in Greece 17%

As % of total moratoria granted 78%

Overview of PE moratoria

87%

performing1

Note: Bank level

1| includes accounts less than 30 days past due. Data as of mid November 2020

1.7

Wholesale

0.6

Mortgage SBL

1.6

0.3

Consumer

4.2

Total

30.09.20

4.2

Greece, Euro bn

€1.1bn applications for

“Gefyra” program

24% 15% 38% 12% 17%% out of

PEs

Greece

0.2

2.2

0.80.4 0.4

0.1 0.1

Aug-20Jul-20Jun-20Mar-20 May-20Apr-20 Sep-20

7

93% of monetary transactions via digital networks in Q3 20; further expansion of our digital platform in 2021

PolandCzech

Republic

JPM

universe

average

Greece

-5.0%

Austria Hungary Turkey

-6.5%

7.0%

3.0%0.3%

-11.3%

-17.2%

-6.5%

Russia

8.3%

17.6%

-1.8%

22.5%

-3.1%

4.9%6.2%

19.8%

-5.4%

-2.6%

-5.7%

-2.7%

12.7%

-10.1%

10.3%

-1.2%

Q1 2020 Q3 2020Q2 2020

Banking app downloads YoY growth Δ% YoY

750,000 active users

+47% yoyin 9M 20 100 million

logins

+67% yoyin 9M 20

9 million

financial

transactions

+66% yoy in

9M 20

Mobile BankingAlpha Bank’s mobile banking app has the

highest engagement rate among peers at 40%

NBG Mobile

Banking

Eurobank

Mobile App

Winbank

Mobile

myAlpha

Mobile

40% 37%28%

37%

Alpha Bank is the only systemic Bank that offers Apple pay

and Garmin pay up to now

~150,000

active users

in total

Alpha Bank actively promotes digital wallets 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

2

1| Source: J.P. Morgan Analysis, entitled “CEEMEA Banks-Data-Driven: App usage trends indicate a possible paradigm shift; digital banking here to stay?”, Date: 01/10/20. 2| Q3 2020 includes July - August 2020

1

1

8

Q1 2021

Galaxy: Preferred bidder selected with signing targeted for year end; CEPAL carve out completion imminent

Dec 2020

Galaxy

Signing1

Galaxy

Closing1

Hive-Down

Completion1Binding

Bids

Received

Carve-out of

Bank’s NPE

Management

unit

Galaxy milestones completed

30/10 20/11

Preferred

Bidder

Selected

The Bank has received

preliminary credit ratings

for the senior notes of all

three SPVs

Applications submitted under

HAPS relate to the provision

of guarantees, on Senior

notes of an amount up to

€3.7bn, by the Greek State

for securitisations of €10.8bn

Gross Book Value

The Bank announced the

selection of the preferred

bidder

The carve-out of the Bank’s

NPE Management Unit onto

CEPAL will have been

completed by the end of this

month, ensuring a seamless

transition

End

November

1| Subject to applicable Corporate and Regulatory approvals

9

Sep-20

pf Galaxy

Sep-20

0.8

3.2

-75%

Retail exposures

under L.3869

Alpha Bank’s NPE portfolio significantly improved post Galaxy

1| Pro-forma ratios are as of 30.09.20 taking into account the senior notes. 2| According to Greek peers’ (Eurobank, NBG, Piraeus Bank) latest public disclosure.

9.6

3.7

Sep-20

2.9

Sep-20

pf Galaxy

1.1

12.5

4.8

-62%

NPE>90dpd

7.0

Sep-20

pf Galaxy

9.1

2.42.1

Sep-20

0.8

3.2

-64%

Denounced

exposures

Asset Quality improved with a better NPE portfolio mix vs. peersGreece, Euro bn

43% 24%

29% 13%

18.3

32%

Sep-20

68% 46%

8.9

54%

pf for Galaxy

NPE>90dpd ratio1

74%

26%

Total

Greek peers

37.7

54% of remaining NPEs also

classified as NPE>90dpd vs

c.70% as of Sep-20 and c.75%

for peers

2

NPE>90dpd

NPE<90dpd

NPE ratio1

Retail

Wholesale

3.5 3.5

8.9

3.9

NPEs Provisions

On balance sheet

Debt relief/ write offs already implemented

60%

The remaining portfolio

has been already

actively managed to

support further reduction

Significant debt relief and

write offs already

provided to customers to

promote re-performance

Substantial improvement in risk profile of NPEsGreece, Euro bn

Provisions for the remaining portfolio at 60% of the

original exposureGreece, Euro bn

vs.

10

Alpha Bank




• Appendix

ESG

Asset Quality

Capital

Volumes

P&L

Pages

3

10

17

21

24

30

33

40

11

9M 20 Financial Performance overview

EUR mnCore PPI up by +4% y-o-y…

391 382

1,160 1,154

Q2 20 Q3 20 9M 19 9M 20

…supported by Resilient NII…EUR mn

1| Trading income in Q3 20 includes €14.3mn gain resulted from the valuation at fair value of Cepal before the full acquisition of the company’s control. Cepal’s consolidation impacted Recurring expenses by €2.6mn.

2| Time deposits rates refer to euro-denominated deposits. 3| Bank in Greece

77 85

247 252

9M 19Q2 20 Q3 20 9M 20

Lower Staff costs

EUR mn

EUR mn

…higher Fee Income..

+2%

9M 19 9M 20

343

331

-3%

Reduced G&AsEUR mn

-6%

256

Trading

gains

9M 19

Core

PPI

9M 20

Reported

PPI

9M 20

Core

PPI

(21)

One-

off

costs

892634 657

892

+4%

+10% -2%

9M 209M 19

3192 Cepal

341

322

-0.6%

1

bps

…due to lower funding costs

400 395 392

35 28 20

-40 -47 -50

11 29-33

-100

-50

0

50

100

150

200

200

250

300

350

400

450

Q1 20 Q2 20 Q3 20

LoanSpreads

TimeDepositrates

AverageECB Cost

Reporates

2

Greece Dec-18 Sep-20 Dec-20(e) Δ (e)

vs. Dec-18

Branches 443 347 337 -106

Employees3 7,793 6,909 6,332 -1,461

including VSS and

Cepal Carve-out

o/w 57 branches

in 2020…and lower recurring Opex

EUR mn

765

9M 19

3

9M 20

Cepal

791

768

-3%

56% 54%C/I

1

12

Profit & Loss

(EUR mn)

9M

2020

9M

2019

yoy %

change

Q3

2020

Q2

2020

qoq %

change

Net Interest Income (NII) 1,154 1,160 (0.6%) 382 391 (2.3%)

Net fee and commission Income 252 247 1.8% 85 77 9.5%

Trading & Other Income1 276 296 … 49 131 …

Operating Income 1,681 1,703 (1.3%) 516 599 (14.0%)

Total Operating Expenses (788) (824) (4.3%) (269) (261) 3.0%

Recurring Operating Expenses (768) (791) (3.0%) (264) (253) 4.0%

Core Pre Provision Income 657 634 3.6% 210 217 (3.4%)

Pre Provision Income (PPI) 892 879 1.5% 247 338 (27.0%)

Impairment Losses on Loans (737) (750) (1.8%) (169) (261) (35.3%)

o/w Covid-19 related (287) - … (53) (114) (53.5%)

Other Impairment Losses (15) 11 … (2) (4) …

Profit/ (Loss) before income tax 141 140 1.1% 76 74 3.1%

Income Tax (11) (48) … (33) 23 …

Profit/ (Loss) after income tax 131 92 42.7% 44 98 (55.0%)

Net Interest Margin (NIM%) 2.3% 2.5% 2.2% 2.3%

Cost to Income ratio 54% 56% 56% 54%

9M 20 Group P&L and Balance Sheet

Balance Sheet

(EUR bn)30/09/20 30/06/20 31/12/19

YtD

change

Assets 68.6 68.6 63.5 5.1

Securities 10.5 9.9 8.7 1.8

Cash & CB 5.1 5.7 2.0 3.1

Net Loans 39.8 39.4 39.3 0.5

Deposits 41.7 40.9 40.4 1.3

Tangible Equity 7.8 7.8 7.9 -0.1

Common Equity Tier 1 Ratio

(CET1 %)17.2% 17.2% 17.9% …

Total Capital Ratio (CAD %) 18.3% 18.3% 17.9% …

NPE ratio 43% 43% 45% …

NPE Cash Coverage 45% 44% 44% …

NPL ratio 30% 30% 30% …

NPL Cash Coverage 64% 64% 65% …

1 | Trading income in Q3 20 includes €14.3mn gain resulted from the valuation at fair value of Cepal before the full acquisition of the company’s control. Cepal’s consolidation impacted Recurring expenses by €2.6mn.

9M 20 Profit before tax, adjusted for Covid-19 related impairments of

€287mn and excluding trading gains of €256mn stands at €172mn

13

Total CAD ratio at 18.3% with capital buffer now standing at €3.4bn

OtherDecrease

of RWAs

9bps

CAD ratio

Jun-20

Q3 20

Earnings

CAD ratio Increase of

Intangibles

(Cepal)

CAD ratio

Sep-20

FL CAD ratio

Sep-20

15.8%18.3% 10bps

(3)bps

18.4%

(13)bps

18.3%

Total Capital ratio evolutionEUR bn 7.18.5 8.4

1| Excluding CCB 2.5% and OS-II buffer 0.5%. 2| Euro 500 million Tier 2 issued in February 2020 at 4.25%

%

€3.4bn Buffer

over 11% 2020

Min. OCR1

(post temporary

relief)

CET1

€7.9bn

17.2%

Capacity to enhance Total Regulatory Capital

Additional

Tier 2

Capacity

CAD ratio

Sep-20

Additional

AT1

Capacity

18.3%

1.64%

2.06%

2

1.11.9

2.6 2.7

3.83.2

2.7 2.6

Amortised

Cost

Dec-19 Mar-20 Jun-20

FVOCI

Sep-20

4.9 5.1 5.3 5.3

GGBs portfolioEUR bn

1.46% adjusted for

the RWA reduction

post Galaxy

Not including an

expected benefit of c.30

bps, pro forma for EBA

recommendation on

software intangibles

14

Group customer deposit inflows and participation in TLTRO III improve further our liquidity metrics

Deposits evolutionGroup, EUR bn EUR bn

ECB balances

3.1

11.9 11.9

3.1

Dec-19

0.8

Mar-20

3.9

Jun-20 Sep-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

4%30%

60% 62%61%

36%

35.0

35%

3%

Sep-19 Dec-19

32%

2%6%

Mar-20

66%

32%

2%

Jun-20

35.8

68%

Sep-20

Core

Term

33.7

State

34.5 36.1

5.9

0.1 0.7

5.9

AbroadJun-20

41.7

Sep-20

35.0

Individuals Business

-

35.8

Greece

Abroad

40.9

+€0.8bn 17%

Group LCR & LDR%

72%86%

101%113% 118%

100% 97% 95% 96% 96%

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%

Sept-19 Dec-19 Mar-20 Jun-20 Sep-20

LCR

LDR

15

Negative gross organic formation of €1bn in the last 12 months in Greece

Note: Gross formation including curings, repayments, liquidations and debt forgiveness

Negative gross formation in Greece

Gross NPE

formation(0.3) (0.5)

EUR bn

Entries

Exits

0.600.49 0.47 0.39 0.35

(0.86)(0.97)

(0.85)

(0.48) (0.40)

Q3 20Q1 20Q4 19Q3 19 Q2 20

(0.4) (0.1)

Gross formation (Organic) - WholesaleEUR mn

(51)(11)

(40)

34 50

Q3 19 Q4 19 Q1 20 Q2 20 Q3 20

Gross formation (Organic) - RetailEUR mn

(208)

(476)

(339)

(124)(94)

Q3 19 Q4 19 Q1 20 Q2 20 Q3 20

(0.0)

EUR bn

16

Underlying Cost of Risk at 1.5% in 9M 2020

Q3 20 Group impairment losses

262 245

187 147 116

120114

53

Q3 19

307

Q4 19 Q3 20

261

Q1 20 Q2 20

169

2.6%

Q3 19 Q1 20

2.5%

Q4 19

1.5%

3.1%

1.2%1.9%

2.6%

Q2 20

1.7%

Q3 20

Q3 20 Group CoR (%)

EUR mn

% over Net Loans

Underlying CoR Group CoR

450

287

9M 209M 19

750 737

Covid-19

Underlying CoR

9M 20 Group impairment losses

EUR mn2.5% 2.5%

CoR

(over net

loans)

1| Non core defined as exposures sold or expected to be sold under securitization or portfolio sale transactions

1.5%

Underlying

CoR

402197

450

737593

253

287

Covid9M 20

Impairment

on loans

(underlying)

FY 19

Impairment

on loans

9M 20

Core

9M 20

Non Core

9M 20

Total

Impairment

on loans

995

9M 20 Impairment losses – Core/Non Core

EUR mn

Covid

Core

Non Core1

o/w Core €232mn

Non Core €55mn

2.5% 0.7% 0.9% 1.5% 2.5%1.0%

CoR

(over net

loans)

17

Alpha Bank




• Appendix

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Volumes

P&L

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18

Considerable impact from national lockdown on 2020 GDP in line with rest of EU and milder rebound in 2021 amid second wave

Following an unprecedented recession in Q2, growth is

expected to resume in 2021 but recovery to remain

incomplete

Maintained Fiscal Policy Support: A Debt and Deficit

Transitory Upswing in the Making The Greek economy experienced an historic recession in Q22020 by 15.2% y-o-

y, due to the pandemic and the associated containment measures.

Upturn in economic activity interrupted because of the resurgence of the COVID-

19 pandemic and the new nationwide lockdown, which is expected to weaken

further business activity and engender a GDP contraction for 2020 exceeding

10%, shifting also downwards the GDP estimate for 2021.

Economic activity in 2021 is expected to be supported by the additional fiscal

measures.

Optimism growing around economic upside of an effective vaccine and NGEU

funds.

Source: Eurostat, Budget 2021, Ministry of Finance

Source: Budget 2021, Ministry of Finance, ELSTAT

Business turnover bounced back after the first lockdown

but unevenly across sectors depending upon social

distancing and travel restrictions

Source: ELSTAT, Google community mobility reports

-80

-60

-40

-20

0

20

40

-35-30-25-20-15-10

-505

1015

Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 June-20 July-20 Aug-20 Sep-20 Oct-20Other activities Financial and Insurance

Accommodation and Food Service Transportation and Storage

Wholesale trade Retail trade

Manufacturing Community mobility - retail and recreation*, rhs

Community mobility - workplaces*, rhs

* percentage change from baseline

contribution to turnover of enterprises (obliged to double-entry bookkeeping)

180.8% 179.2%

186.2%

180.5%

208.9%

199.6%

160%

170%

180%

190%

200%

210%

220%

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

2016 2017 2018 2019 2020f 2021f

General Government Primary Balance (% of GDP)Interest Payments (% of GDP)General Government Balance (% of GDP)General government consolidated gross debt (% of GDP), rhs

1.9

-10.5

4.8

-16

-12

-8

-4

0

4

8

2018Q

1

2018Q

2

2018Q

3

2018Q

4

2019Q

1

2019Q

2

2019Q

3

2019Q

4

2020Q

1

2020Q

2

2019

2020f

2021f

Real GDP - Greece (% quarterly change)Real GDP - Greece (% annual change)Real GDP - Euro area (% annual change)

Budget 2021

Forecasts

19

Safeguarding employment amid a perfect storm Short-term Indices: Different Aspects of the Recessionary

Shock

Source: Bank of Greece

Source: ELSTAT, European Commission

Hard and soft high frequency data provide mixed evidence signaling a subdued pace

of economic recovery in the third quarter of 2020.

Despite the sharp GDP contraction, the swift policy response supported employment;

the employment rate fell by 2 pps m-o-m in May 2020 before resuming in an upward

course.

The unemployment rate stood at 16.8% in August 2020, down by almost 1 pps since

May 2020, broadly at the same levels compared to one year earlier (August 2019:

16.9%), despite the drop in expectations about future employment in services and

manufacturing.

Τhe external sector is expected to register a record decline in 2020, with net exports to

contribute negatively to GDP growth. Exports of services, in particular, are expected to

remain well below their steady state, as tourist arrivals are expected to only partially

recover in 2021.

Current Account Deficit worsened considerably as

tourism has been hit badly by the crisis

Source: ELSTAT, Bank of Greece, IOBE

Swift policy response supports employment despite the

deterioration in employment expectations

0

100

200

300

50

70

90

110

130

Jan

-19

Ma

r-19

Ma

y-1

9

Jul-1

9

Se

p-1

9

Nov-1

9

Jan

-20

Ma

r-20

Ma

y-2

0

Jul-2

0

Se

p-2

0

Jan

-19

Ma

r-19

Ma

y-1

9

Jul-1

9

Se

p-1

9

Nov-1

9

Jan

-20

Ma

r-20

Ma

y-2

0

Jul-2

0

Se

p-2

0

Jan

-19

Ma

r-19

Ma

y-1

9

Jul-1

9

Se

p-1

9

Nov-1

9

Jan

-20

Ma

r-20

Ma

y-2

0

Jul-2

0

Se

p-2

0

Manufacturing production andretail trade

Economic confidence Building activity and car sales

Manufacturing production index, s.a. Retail trade, volume indexEconomic Sentiment Indicators Retail Trade Confidence IndicatorService Sector Confidence Indicator Number of new private passenger cars, rhsBuilding activity (in volume), rhs

Index Jan. 2019=100 Index Jan. 2019=100

75

77

79

81

83

85

-55

-40

-25

-10

5

20

35

Jan

-18

Ap

r-18

Jul-

18

Oct-

18

Jan

-19

Ap

r-19

Jul-

19

Oct-

19

Jan

-20

Ap

r-20

Jul-

20

Oct-

20

Employment rate (%), rhsEmployment expectations in services over next 3 monthsEmployment expectations in manufacturing for the months aheadConsumers financial situation over next 12 months

COVID-19 Effect

0

1

2

3

4

5

6

7

8

-2

-1

0

1

2

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

Current Account Balance (bn €) Tourist arrivals (in million), rhs

20

Ensuring Liquidity for Businesses and EU funding Support

Strong Credit rebound on the back of state guaranties

• Credit expansion to non-financial corporations (NFCs) – already in a positive territory

from Dec. 2018 - has skyrocketed from March 2020 onwards, supported by the

government interventions aiming to provide liquidity to the private corporations and

SMEs through the leverage by the banking sector. On the contrary, credit to

individuals continues to contract.

• Deposit inflows from the private sector to the banking system reached EUR 10.3 bn

in the first nine months of 2020, significantly higher compared to the same period in

2019 (EUR 4.75 bn), underpinned by the government revenue-side interventions,

the higher household forced and precautionary savings and the liquidity support to

businesses.

• Greece is expected to enjoy large spillover effects from the NG-EU, which is of great

importance for the recovery through the timely execution of the EU financing support

programmes.Source: Eurostat, European Commission, Autumn 2020 Economic Forecast

Narrowing the Gap between Credit and Deposits

Source: Bank of GreeceSource: Bank of Greece

Greece among the top recipients of the RRF grants

*Growth rates are derived from the differences in outstanding amounts taking into account for loan write-offs, exchange

rate valuations and reclassifications

-4

-2

0

2

4

6

8

10

Jan

-17

Ma

r-1

7

Ma

y-1

7

Jul-

17

Se

p-1

7

Nov-1

7

Jan

-18

Ma

r-1

8

Ma

y-1

8

Jul-

18

Se

p-1

8

Nov-1

8

Jan

-19

Ma

r-1

9

Ma

y-1

9

Jul-

19

Se

p-1

9

Nov-1

9

Jan

-20

Ma

r-2

0

Ma

y-2

0

Jul-

20

Se

p-2

0

Credit to non-financial corporations (NFCs)*

Credit to individuals and private non-profit institutions*

100110120130140150160170180190200

Jan

-17

Ma

r-1

7

Ma

y-1

7

Jul-

17

Se

p-1

7

Nov-1

7

Jan

-18

Ma

r-1

8

Ma

y-1

8

Jul-

18

Se

p-1

8

Nov-1

8

Jan

-19

Ma

r-1

9

Ma

y-1

9

Jul-

19

Se

p-1

9

Nov-1

9

Jan

-20

Ma

r-2

0

Ma

y-2

0

Jul-

20

Se

p-2

0

Credit Deposits

bn €

10.510.0 9.7

6.9 6.9 6.7 6.35.5 5.2

4.7 4.3 4.2 4.1 3.9 3.53.0

1.7 1.71.2 1.0 0.8 0.8 0.7 0.7 0.5 0.4 0.2

0

2

4

6

8

10

12

(% 2

020 G

DP

*)

RRF Grants (2021-2022 commitment) RRF Grants (2023 commitment)

*2020 estimation according to European Economic Forecast, Autumn 2020, 2018 prices

21

Alpha Bank




• Appendix

ESG

Asset Quality

Capital

Volumes

P&L

Pages

3

10

17

21

24

30

33

40

22

Alpha Bank endorses the

UNEP FI Principles for

Responsible Banking

First self-assessment

and disclosure

publication

Full implementation of

principles

Sept. 2019 Mar. 2021 Sep. 2023

2020 2022

Impact Analysis

Target Setting

Implementation of the Principles of Responsible Banking

▪ Alpha Bank actively participating in the global effort to build

a sustainable future for the economy and the planet, signed

the six Principles for Responsible Banking (PRB).

▪ For this effort, Alpha Bank has created a four-year plan

and has set targets for the implementation of the Principles

of Responsible Banking

▪ Alpha Asset Management A.E.D.A.K. was included, in December 2018, in the Principles for Responsible Investment, the leading

network for the promotion of responsible investments

United Nations Sustainable Development Goals with significant contribution from Alpha Bank

ESG - Responsible Banking

23

Alpha Bank demonstrates a positive trend in ESG scores and evaluations by international analysts throughout the years as 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 Α Α

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

October 2020

Vigeo Eiris Best Emerging Market Performers 🗸

Climate Change CDP Awareness/C Management/B- Awareness/C

Bloomberg Gender Equality Index🗸

(Index 2019)

🗸

(Index 2020)

Inclusion in Indices & ESG AnalyticsMemberships in Associations & Organisations

Alpha Bank Assessment based on Environmental, Social and Governance (ESG) Criteria

24

Alpha Bank




• Appendix

ESG

Asset Quality

Capital

Volumes

P&L

Pages

3

10

17

21

24

30

33

40

25

Gross organic NPE formation in Greece per segment

Note: Gross formation including curings, repayments, liquidations and debt forgiveness

Gross formation (Organic) - WholesaleEUR mn

(51)(11)

(40)

34 50

Q3 19 Q4 19 Q1 20 Q2 20 Q3 20

Gross formation (Organic) - SBLEUR mn

Gross formation (Organic) - RetailEUR mn

(208)

(476)

(339)

(124)(94)

Q3 19 Q4 19 Q1 20 Q2 20 Q3 20

(104)

(223)(132)

(36) (0)

Q3 19 Q4 19 Q1 20 Q2 20 Q3 20

Gross formation (Organic) - MortgagesEUR mn

(70)(139) (141)

(64) (65)

Q3 19 Q4 19 Q1 20 Q2 20 Q3 20

Gross formation (Organic) - ConsumerEUR mn

(11)(34)

(114)(67) (28)

Q3 19 Q4 19 Q1 20 Q2 20 Q3 20

26

Auctions and repossession activity evolution

Auctioned properties (Conducted) per quarter 9M 20 successfully auctioned properties: Breakdown by

highest bidder

REO portfolio evolution (entries/ exits) – GreeceEUR mn

27%

73%

3rd parties

Alpha Bank

Q3 2019

40%42%

Q1 2019 Q2 2019 Q2 2020Q4 2019 Q3 2020

41%40%

0%31%

Q1 2020

36%

789

525

775

1.782

412

0

374

unsuccessful % of successful over conducted auctions

No conducted

auctions in Q2

due to Covid-19

REO Portfolio

30.9.20

-24-110

REO Portfolio

31.12.18

122

Acquisitions Sales REO Portfolio

31.12.19

22

Acquisitions Sales

€0.7bn€0.8bn €0.8bn

REO portfolio

4,2k properties

of €0.82bn value

Conducted auctioned property volumes impacted by notaries’ abstention and Covid-19

73% of successfully auctioned properties have been acquired by Alpha

For 2020 so far, disposed assets included larger tickets as well as granular sales

In Cyprus & SEE, the Bank has already concluded asset sales of circa €20mn

Until the end of the year the Bank is aiming to enter into sale agreements, amongst

others, for:

The sale of large properties on a portfolio or individual basis in Greece

Additional sales in Cyprus & SEE aiming to further reduce its REO portfolio

27

Detailed overview of Alpha Bank’s asset quality by portfolio – Greece

(€ bn) Wholesale SBL Mortgages Consumer Total

Gross loans 18.6 4.9 14.0 5.0 42.5

(-) Accumulated Provisions (2.8) (1.6) (1.9) (1.7) (8.0)

Net loans 15.8 3.3 12.1 3.3 34.5

NPLs 2.9 2.7 4.7 2.1 12.5

NPL ratio 15.8% 55.8% 33.7% 42.5% 29.4%

NPEs 5.2 3.4 6.9 2.9 18.3

NPE ratio 27.8% 68.4% 49.4% 57.2% 43.1%

NPL collateral 1.6 1.2 3.4 0.5 6.8

NPE collateral 3.1 1.6 5.3 0.6 10.6

Coverage ratio

NPLs 2.9 2.7 4.7 2.1 12.5

(+) Forborne NPLs < 90 dpds 1.9 0.6 2.1 0.7 5.4

(+) Unlikely to pay 0.3 0.0 0.1 0.0 0.4

NPEs 5.2 3.4 6.9 2.9 18.3

Forborne NPLs >90dpd 1.4 0.7 2.2 1.6 5.9

Forborne NPLs <90dpd 1.9 0.6 2.1 0.7 5.4

Performing forborne 0.3 0.7 2.3 0.5 3.8

Total forborne 3.6 2.1 6.6 2.8 15.1

95% 54% 57% 47% 39% 27%

82% 61% 64% 43%

56%

60% 45% 48% 73% 77% 22%

22% 54%

58%

151%

114% 102% 94%

113% 104% 104% 83%

118% 102%

NPL NPE NPL NPE NPL NPE NPL NPE NPL NPE

Collateral

Cash

28

Detailed overview of Alpha Bank’s asset quality by portfolio – Group

(€ bn) Wholesale SBL Mortgages Consumer Total

Gross loans 21.6 5.0 17.1 5.5 49.1

(-) Accumulated Provisions (3.4) (1.6) (2.6) (1.9) (9.4)

Net loans 18.2 3.4 14.5 3.7 39.7

NPLs 3.7 2.8 5.9 2.3 14.7

NPL ratio 17.1% 55.9% 34.8% 41.8% 30.0%

NPEs 6.3 3.4 8.3 3.1 21.0

NPE ratio 29.2% 68.4% 48.4% 55.8% 42.8%

NPL collateral 2.0 1.2 3.9 0.5 7.8

NPE collateral 3.7 1.6 5.9 0.7 12.0

Coverage ratio

NPLs 3.7 2.8 5.9 2.3 14.7

(+) Forborne NPLs < 90 dpds 2.2 0.6 2.3 0.8 5.9

(+) Unlikely to pay 0.4 0.0 0.1 0.0 0.4

NPEs 6.3 3.4 8.3 3.1 21.0

Forborne NPLs >90dpd 1.6 0.7 2.9 1.7 6.9

Forborne NPLs <90dpd 2.2 0.6 2.3 0.8 5.9

Performing forborne 0.3 0.7 2.4 0.5 3.9

Total forborne 4.2 2.1 7.6 2.9 16.8

92% 54% 57% 47% 44% 31%

80% 60% 64% 45%

55%

59% 45% 47% 66% 72% 23%

23% 53%

57%

148%

113% 102% 94%

110% 103% 104% 83%

117% 102%

NPL NPE NPL NPE NPL NPE NPL NPE NPL NPE

Collateral

Cash

29

Successful track record of NPE transactions; NPE loan disposals of c.€4.5bn on-balance sheet GBV corresponding to total claims of c.€8bn

“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

30

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• Appendix

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Asset Quality

Capital

Volumes

P&L

Pages

3

10

17

21

24

30

33

40

31

0.8

Sep-20

(phased-in)

0.3

3.1

1.0

3.1

Sep-20

(fully loaded)

4.33.9

Group RWAs and Regulatory Capital

Group Risk Weighted AssetsEUR bn

(€0.2bn)

0.1

3.6 3.61.5

Jun-20

41.2

(0.3)

Credit Market

40.9

46.3

1.6

Sep-20

46.1

MarketCredit Operational

Credit Risk Weights per portfolio

60%

104%

73%

Performing Net NPE Total Loan PortfolioRWA Density

DTA & Tax Credit with CET1 CapitalEUR bn

DTA 250%

RWf

DTC 100%

RWf

CET1 7.9 6.6

IFRS9

DTC

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

32

Regulatory Capital and Capital Requirements

EUR mn

8,4157,834 7,909 7,912

8,438

(581)

(993)

1,069 3 525

OrdinaryEquity

Intangibles Tangiblebookvalue

DTADeductionfrom CET1

Other CET1capital

Hybrids Tier 1 LowerTier II

TotalCAD

11.5% 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

33

Alpha Bank




• Appendix

ESG

Asset Quality

Capital

Volumes

P&L

Pages

3

10

17

21

24

30

33

40

34

4.5

5.3

0.8

39.4

9.9

2.9

5.7

Jun-20

Balance sheet composition

Asset split

EUR bn

Liabilities and Equity splitEUR bn

68.6

Net

loans

PPE

DTA

Other

Securities

Cash

Due from Banks

Other (Incl. HFS) 3.7

8.4

1.5

25.8

15.0

2.2

11.9

Jun-20

Due to Banks

excl. ECB

40.9

ECB

Time

deposits

Core

deposits

Debt

securities

Equity

Other

68.6

17.1

24.8

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) 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

Equity

Other

68.6

35

Business Volumes

(€ mn) Sep 2020 Jun 2020 Mar 2020 Dec 2019 Sep 2019% Sep 2020/

Sep 2019

Group Gross Loans 49,148 48,756 49,095 48,731 49,147 0.0%

Mortgages 17,073 17,181 17,294 17,474 17,709 (3.6%)

Consumer Loans 4,208 4,207 4,218 4,258 4,327 (2.8%)

Credit Cards 1,309 1,297 1,310 1,415 1,351 (3.1%)

Small Business Loans 4,985 4,789 4,792 4,842 4,927 1.2%

Medium and Large Business Loans 21,574 21,281 21,482 20,741 20,832 3.6%

of which:

Greece 42,485 41,999 42,240 41,777 42,089 0.9%

Mortgages 13,955 14,049 14,144 14,333 14,540 (4.0%)

Consumer Loans 3,736 3,734 3,738 3,775 3,842 (2.8%)

Credit Cards 1,274 1,263 1,274 1,378 1,314 (3.0%)

Small Business Loans 4,920 4,724 4,726 4,776 4,859 1.3%

Medium and Large Business Loans 18,600 18,229 18,357 17,514 17,533 6.1%

of which: Shipping Loans 2,213 2,301 2,246 2,172 2,165 2.2%

Southeastern Europe 6,287 6,370 6,458 6,535 6,647 (5.4%)

Accumulated Provisions (9,437) (9,419) (9,422) (9,558) (9,800) (3.7%)

Group Net Loans 39,808 39,428 39,767 39,266 39,451 0.9%

Customer Assets 46,661 45,776 46,315 45,929 44,829 4.1%

of which:

Group Deposits 41,657 40,868 41,894 40,364 39,612 5.2%

Sight & Savings 27,288 25,845 24,826 23,362 22,841 19.5%

Time deposits & Alpha Bank Bonds 14,369 15,024 17,067 17,002 16,772 (14.3%)

Greece 35,804 34,991 36,081 34,450 33,682 6.3%

Sight & Savings 24,471 23,138 22,253 20,830 20,435 19.8%

Time deposits & Alpha Bank Bonds 11,333 11,852 13,829 13,620 13,246 (14.4%)

Southeastern Europe 5,267 5,290 5,202 5,266 5,214 1.0%

Money Market Mutual Funds 101 105 111 127 151 (33.1%)

Other Mutual Funds 1,530 1,485 1,313 1,789 1,659 (7.8%)

Private Banking 3,372 3,317 2,997 3,648 3,407 (1.0%)

36

Breakdown of loans portfolio – September 2020

Trade

13%

Agriculture

1%

Media &

Communication

1%

Energy

2%

Real Estate

4%

Tourism

5%

Construction

5%

Transportation

6%

Manufacturing

11%

Households

46%

Other

5%

€49.1bn

SBLs

10%Consumer loans

9%

Credit Cards

3%

Mortgages

35%

Wholesale loans

44%

Suezmax (Tankers)

10%

Product (Tankers)

12%

Passenger Vessels

4%

Handysize/Handymax (Bulk Carriers)

18%Capesize (Bulk Carriers)

11%

Panamax (Tankers)

3%

Panamax (Bulk Carriers)

21%

Afamax (Tankers)

3%

VLCC (Tankers)

4%

Containers

9%

LNG

5%

€49.1bn

€2.2bn

Total Group loans – per segmentEUR bn

Tankers

32%

Dry Bulk

50%

Group Loans portfolio structure EUR bn

Shipping loans portfolio structure

37

Revenue to be supported by increase in new financing of €4.2bn in 9M 2020 vs. € 2.5bn in 9M 2019

New disbursements – per categoryEUR mn

9M 2020 Business disbursements – per sector

Trade

20%

Agriculture

2%

Construction

4%Real Estate

5%

Other

7%

Transportation

18%

Energy

11%Manufacturing

18%

Tourism

11%

Entertainment

4%

Loan disbursements of €4.2bn in 9M 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

9M

19

Q4

19

FY

19

Q1

20

Q2

20

Q3

20

9M

20

Individuals 48 70 75 193 119 312 64 84 87 235

Business 567 842 907 2,316 891 3,206 1,575 938 1,462 3,975

Total 615 911 982 2,509 1,010 3,518 1,639 1,022 1,549 4,210

38

Deposits flow per quarter

Alpha Bank deposits evolution in GreeceEUR bn

33.7 34.5 36.1 35.0 35.80.4

1.4 0.9 1.30.4

0.2

(2.0) (0.5)

Sep-19 Core Time Dec-19 Core Time Mar-20 Core Time Jun-20 Core Time Sep-20

Δ Time

Δ Core

33.7 34.5 36.1 35.0 35.80.4 1.2

(1.4)

0.70.4 0.4 0.3 0.1

Sep-19 Bus. Indiv. Dec-19 Bus. Indiv. Mar-20 Bus. Indiv. Jun-20 Bus. Indiv. Sep-20

Δ Individuals

Δ Business

Q4:

€0.8bn

Q1:

€1.6bn

Q2:

(€1.1bn)

Alpha Bank deposits evolution in GreeceEUR bn

Deposits breakdown – September 2020

Note: Business deposits include State deposits

Deposits breakdown – September 2020

Core68%

Time32%

Individuals71%

Business29%

Q3:

€0.8bn

39

Wealth management evolution

Asset Management balancesEUR mn

637 673 633 647

1,4201,548

1,278 1,300

6661

51 50

2,1232,282

1,962 1,997

Sep-19 Dec-19 Jun-20 Sep-20

Money Market Mutual Funds

Non Money Market Mutual Funds

Other AUM

Alpha Private Bank balancesEUR mn

341 437 486 525

2,918 2,934 2,779 2,764

1,164 1,167997 993

4,423 4,5394,262 4,282

Sep-19 Dec-19 Jun-20 Sep-20

Discretionary Advisory Execution Only

40

Alpha Bank




• Appendix

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Asset Quality

Capital

Volumes

P&L

Pages

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10

17

21

24

30

33

40

41

Net Interest Income

NII qoq evolutionEUR mn

Net Interest Income in Q3 2020 stood at €382 million, down by -2% q-o-q affected by

lower lending income, mainly due to the completion of the Neptune portfolio sale,

decreased average business loan balances and an adverse impact from market rates

on deposits which was partially offset by improved funding mix

5.1 4.3

NII

Q2 20

-9.5

Loans

-3.0

Deposits Funding Bonds

& Other

NII

Q3 20

Days effect

-5.9

390.7381.8

NII decompositionEUR mn

(50) (52) (48) (47) (51)(11) (10) (11) (8) (3)

397 399 390 391 386

47 50 51 54 49

Q3 19 Q4 19 Q1 20 Q2 20 Q3 20

Bonds & other Loans Funding Deposits

383 387 381 391

- €9mn

382

42

Net Fee and Commission income

Net Fee & Commission Income evolution yoyEUR mn

Net Fee & Commission Income evolution qoqEUR mn

Net commission Income in Q3 20 at €85mn, up by €7mn or 10% qoq, mainly

attributed to increased performance of card business and higher volume of bond

loan’s issuances

In 9M 2020, net fee and commission income amounted to €25mn, a yearly

increase of 2%, supported by higher revenues from cards, increased fee

generation from asset management as well as on the back of an increased

contribution of investment banking, brokerage and bancassurance

+2%

43

2 2 3 2

48

9M 20Other

Commercial

Banking

IB &

Brokerage

Bancassurance

& Private

Banking

Loans Asset

Mgmt

195

8

Cards9M 19

(4)6

198

247

(1)

252

Commercial BankingAsset Gathering

& Bancassurance IB & Brokerage

15

63 2

15

Asset

Mgmt

60

IB &

Brokerage

2

Q2 20 Cards Loans Other

Commercial

Banking

77

Bancassurance

& Private

Banking

68

2

Q3 20

(1) (1) 0

85

+10%

43

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

39.5 39.3 39.8 39.4 39.8

402 402 400395 392

Q3 19 Q4 19 Q1 20 Q2 20 Q3 20

Net Loans Group loans spread

35%

65%

% Total

862 854 855 858 845

579 588 568 568 571

422 417 416 422 417

398 397 393 386 380

251 251 251 250 249

Q3 19 Q4 19 Q1 20 Q2 20 Q3 20

Consumer Credit

Small BusinessLoans

SEE

Large Corporates

Mortgages

22.8 23.4 24.8 25.8 27.3

16.8 17.0 17.1 15.0 14.4

39.6 40.4 41.9 40.9 41.7

(49) (50) (47) (45) (47)

Q3 19 Q4 19 Q1 20 Q2 20 Q3 20

Core deposits Time deposits Group deposits spread

(9)(9) (7)

(15)(19)

(39)(45) (45) (45)

(51)

(78)(73)

(64)(56) (52)

Q3 19 Q4 19 Q1 20 Q2 20 Q3 20

SE Europe

Sight andSavings

TimeDeposits

44

Recurring Operating Expenses

Recurring OPEX evolution qoqEUR mn

Recurring operating expenses for the Group continued to decline, down by 3% y-o-y or

€23mn to €768mn, as a result of reduced General expenses and lower Staff Costs

9M 20 Staff Costs’ reduction of €20mn, mainly reflecting the impact from the Bank’s

headcount reduction due to the Voluntary Separation Scheme (VSS) implemented in our

operations in Greece during 2019

9M 20 General Expenses decrease of €12mn is attributed to lower NPL remedial

management costs as well as cost-containment initiatives in marketing expenses

9M 20 D&A increase of €8mn is mostly attributable to intangible assets capitalized expenses

in 9M 20 amounting to €91mn

Recurring OPEX evolution yoyEUR mn

(€23mn)

-3%

108 116

107

8 1 1

108

38 39

Q2 20 General

expenses

Staff costs D&A Q3 20

253 264

€10mn

+4%

343 331

341

8

322

107 115

Staff

costs

General

expenses

9M 19

768

(12) (20)

D&A 9M 20

General

expenses

Staff costs

Depreciation

& amortization

791

Depreciation

& amortization

General

expenses

Staff costs

Recurring operating expenses increase is due to low base of

G&A in Q2 due to the lockdown

1 | Cepal’s consolidation impacted Recurring expenses by €2.6mn

11

45

Operating Expenses

Recurring OPEX evolution

Employees Branches

EUR mnEUR mn 9M 19 9M 20 yoy %

Staff costs (341.4) (321.7) (5.8%)

General Administrative

expenses(342.5) (330.9) (3.4%)

Depreciation and

amortisation(107.2) (115.1) 7.4%

Recurring OPEX (791.2) (767.7) (3.0%)

Extraordinary costs (32.4) (20.6) …

Total OPEX (823.6) (788.4) (4.3%)

112 117 107 107 108

118 130106 108 116

3537

38 38 39

265284

251 253 264

Q3 19 Q4 19 Q1 20 Q2 20 Q3 20

Depreciation &amortisation

Generaladministrativeexpenses

Staff costs

13,856

11,863 11,72711,314 11,251

10,530 10,511 10,509 10,481

Dec-15 Dec-16 Dec-17 Dec-18 Sep-19 Dec-19 Mar-20 Jun-20 Sep-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

Serbia

-836

Hilton

-323

VSS Gr

-523897

721670

629 600 580 556 549 534

Dec-15 Dec-16 Dec-17 Dec-18 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20

Bulg

-83

FYROM

-18

Serbia

-67

Greece2 626 533 483 443 414 394 369 361 347

1 | Cepal’s consolidation impacted Recurring expenses by €2.6mn

2 | Includes corporate and private banking centers. 3| including sabbaticals

1

VSS Gr

-836

3

46

SEE Operations

1| Country View. 2| Excluding €4.4mn of one-off expenses related to NPE management costs in Cyprus

EUR mn Δ% Δ% Δ% Δ%

Sep-20 Cyprus yoy Romania yoy Albania yoy Total SEE yoy

Deposits 2,145 (3.1%) 2,612 5.4% 510 (2.3%) 5,267 1.0%

Gross Loans 3,354 (9.6%) 2,654 0.6% 279 (6.9%) 6,287 (5.4%)

Mortgages 1,801 (6.2%) 1,219 5.6% 75 4.6% 3,094 (1.6%)

Consumer Credit 234 (2.3%) 228 (4.9%) 38 10.4% 499 (2.7%)

Businesses 1,320 (14.9%) 1,208 (3.0%) 166 (14.3%) 2,694 (9.9%)

NPE ratio 74.7% 6.6% 17.1%

NPE Cash coverage 53% 80% 39%

NPE Total coverage 99% 141% 131%

NPL ratio 61.9% 3.7% 12.4%

NPL Cash coverage 64% 142% 54%

NPL Total coverage 107% 204% 143%

Total Operating Income 73.4 (5.9%) 102.5 (1.7%) 14.1 (6.3%) 190.0 (3.7%)

Operating Expenses (pre O/H allocation)2 (56.0) 11.1% (77.4) (2.9%) (13.4) 11.6% (146.8) 3.3%

Impairment Losses (54.9) 0.7% 0.5 … (0.4) (85.2%) (54.8) (22.8%)

Profit Before Tax (pre O/H allocation) (37.5) 39.7% 25.5 … 0.4 (37.2%) (11.5) (25.9%)

Branches 22 130 34 186 1

Employees 702 1,985 420 3,107 13

1

47

Alpha Bank Group

(€ mn) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019qoq%

change

yoy %

change

Net interest income 381.8 390.7 381.2 387.1 383.2 (2.3%) (0.4%)

Net fee and commission income 84.8 77.5 89.2 93.1 95.6 9.5% (11.2%)

Income from financial operations 41.9 128.6 85.7 121.1 79.9 … …

Other Income 7.0 2.6 9.9 6.0 6.5 … …

Operating Income 515.5 599.3 566.0 607.4 565.1 (14.0%) (8.8%)

Staff costs (108.0) (106.7) (107.0) (116.7) (112.2) 1.2% (3.7%)

General administrative expenses (116.4) (108.4) (106.1) (130.2) (117.8) 7.4% (1.2%)

Depreciation and amortization (39.2) (38.4) (37.5) (37.3) (35.3) 2.3% 11.0%

Recurring Operating expenses (263.6) (253.5) (250.6) (284.2) (265.3) 4.0% 0.6%

Extraordinary costs (5.0) (7.4) (8.3) (66.9) (14.6) … …

Total Operating expenses (268.6) (260.8) (259.0) (351.1) (280.0) 3.0% (4.1%)

Impairment losses on loans (168.6) (260.6) (307.4) (244.8) (261.5) … …

Other impairment losses (2.0) (3.7) (9.0) (6.1) (3.0) … …

Profit / (Loss) before income tax 76.4 74.2 (9.4) 5.4 20.6 … …

Income Tax (32.5) 23.4 (1.5) 0.1 (15.9) … …

Profit / (Loss) after income tax from continuing

operations43.9 97.5 (10.9) 5.6 4.7 … …

Profit / (Loss) attributable to shareholders 43.8 97.5 (10.9) 5.4 4.8 … …

Net interest Margin (NIM) 2.2% 2.3% 2.3% 2.5% 2.4%

48

Group Results by Business Unit

(€ mn)

RetailCommercial &

CorporateSE Europe

Investment

Banking &

Treasury

Asset

ManagementOther Group

Jan-Sep Jan-Sep Jan-Sep Jan-Sep Jan-Sep Jan-Sep Jan-Sep

2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019

Operating Income 578.6 603.3 461.0 482.2 190.0 199.0 389.7 350.3 45.9 51.0 15.7 16.9 1,680.9 1,702.8

Net Interest Income 486.8 514.3 388.3 390.2 151.6 157.5 115.2 87.2 11.0 9.9 0.7 1.1 1,153.6 1,160.1

Net fee and Commission Income 82.8 83.9 79.2 93.1 25.5 23.1 27.0 13.5 37.1 33.5 (0.1) (0.2) 251.5 247.0

Trading & Other 9.0 5.2 (6.5) (1.0) 12.9 18.4 247.5 249.6 (2.2) 7.6 15.1 16.0 275.7 295.7

Operating Expenses (415.1) (445.2) (122.0) (133.3) (163.9) (152.7) (22.4) (20.8) (27.3) (26.0) (37.7) (45.6) (788.4) (823.6)

Staff Costs (166.7) (188.0) (54.7) (60.5) (70.6) (68.7) (9.5) (9.2) (14.9) (14.0) (5.4) (1.7) (321.8) (341.9)

General Administrative Expenses (187.1) (201.1) (45.1) (51.8) (74.6) (65.8) (10.1) (9.4) (9.3) (9.0) (25.3) (37.4) (351.5) (374.5)

Depreciation & Amortisation (61.3) (56.2) (22.2) (21.0) (18.8) (18.2) (2.8) (2.2) (3.1) (3.1) (6.9) (6.5) (115.1) (107.2)

Pre Provision Income (PPI) 163.5 158.1 339.0 348.9 26.1 46.3 367.2 329.5 18.6 25.0 (21.9) (28.6) 892.5 879.2

Impairment Losses on Loans (416.5) (435.9) (263.4) (241.7) (54.3) (71.4) (2.2) (1.1) (0.3) 0.1 0.0 0.0 (736.6) (750.0)

Other Impairment Losses 0.0 0.0 0.0 0.0 (0.5) 0.4 (13.4) 9.5 (0.8) 0.6 0.0 0.0 (14.7) 10.5

Profit / (Loss) before tax (253.0) (277.8) 75.6 107.2 (28.7) (24.6) 351.7 338.0 17.5 25.6 (21.9) (28.6) 141.2 139.7

49

Results: Retail Business Unit

(€ mn) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019

Operating Income 195.4 193.6 189.6 198.7 203.0

Net Interest Income 159.0 164.8 163.0 164.7 164.8

Net fee and Commission Income 31.5 27.3 24.0 32.2 35.9

Trading & Other 4.9 1.5 2.6 1.7 2.3

Operating Expenses (141.7) (138.6) (134.7) (150.1) (145.7)

Staff Costs (55.5) (56.3) (54.9) (61.9) (61.5)

General Administrative Expenses (65.3) (62.0) (59.8) (69.2) (65.6)

Depreciation and Amortisation (21.0) (20.3) (20.0) (19.0) (18.6)

Impairment losses on Loans (136.5) (125.6) (154.4) (123.7) (113.9)

Other Impairment Losses

Profit / (Loss) before tax (82.9) (70.6) (99.5) (75.1) (56.7)

RWA e 17,614 17,869 18,295 18,603 18,354

50

Results: Commercial & Corporate Business Unit

(€ mn) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019




Trading & Other (6.0) 0.8 (1.3) (42.0) 2.2


Staff Costs (18.7) (18.0) (18.0) (21.2) (19.7)



Impairment losses on Loans (39.9) (113.5) (109.9) (81.1) (121.7)

Other Impairment Losses - - - - -

Profit / (Loss) before tax 67.0 4.4 4.3 (6.4) 2.3

RWA e 15,177 16,257 16,349 16,245 16,831

51

Results: Asset Management Business Unit

(€ mn) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019




Trading & Other (3.8) (0.2) 1.9 1.1 2.0


Staff Costs (5.6) (4.5) (4.7) (5.0) (4.8)



Impairment losses on Loans (0.3) (0.0) 0.0 (0.1) 0.1

Other Impairment Losses (0.5) (0.0) (0.3) (0.1) (0.9)

Profit / (Loss) before tax 1.3 5.5 10.7 10.0 8.2

RWA e 338 347 362 362 362

52

Results: Investment Banking & Treasury Business Unit

(€ mn) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019




Trading & Other 32.3 127.3 87.9 156.1 58.9


Staff Costs (3.5) (3.0) (3.0) (3.6) (3.0)



Impairment losses on Loans (1.9) 1.8 (2.0) 3.5 (3.0)

Other Impairment Losses (1.5) (3.6) (8.3) (5.9) (2.2)

Profit / (Loss) before tax 66.3 165.2 120.2 186.2 85.5

RWA e 5,911 5,792 5,724 5,389 4,966

53

Results: SE Europe Business Unit

(€ mn) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019




Trading & Other 4.7 3.5 4.7 5.1 5.5


Staff Costs (23.2) (23.0) (24.4) (24.6) (24.2)



Impairment losses on Loans 10.1 (23.3) (41.1) (43.4) (22.9)

Other Impairment Losses (0.0) (0.1) (0.3) (0.0) 0.1

Profit / (Loss) before tax 21.3 (14.5) (35.5) (36.5) (8.7)

RWA e 4,287 4,361 4,661 4,719 4,760

54

Results: Other Business Unit

(€ mn) Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019

Operating Income 17.2 (1.6) 0.2 6.5 14.4

Net Interest Income 0.3 0.2 0.2 1.3 (0.8)

Net fee and Commission Income (0.0) (0.1) (0.0) (0.0) (0.2)

Trading & Other 16.9 (1.7) (0.0) 5.2 15.4


Staff Costs (1.5) (1.8) (2.2) (1.8) 0.9



Expenses for VSS (49.6)

Impairment losses on Loans - - - - -

Other Impairment Losses - - - - -

Profit / (Loss) before tax 3.5 (15.9) (9.5) (72.8) (10.1)

RWA e 2,826 2,327 2,165 2,482 2,572

55

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

56

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

57

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

[email protected]

+30 210 326 2261

Manager

Investor Relations Division

Dimitrios Kostopoulos

+30 210 326 2271

[email protected]

Deputy Manager


Elena Katopodi

+30 210 326 2272

[email protected]

Senior

Investor Relations Officer

Stella Traka

+30 210 326 2274

[email protected]


+30 210 326 2271

+30 210 326 2273

+30 210 326 2277

[email protected]

40 Stadiou Street,

102 52, Athens

http://www.alpha.gr/

mailto:[email protected]





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