Investor Presentation
July 2013 Table of Contents
Pages
I. Alpha Bank Overview 3
II.Recent Developments and Alpha Bank Highlights 6
III. First Quarter 2013 Result Highlights 13
IV. Greece and SEE Macroeconomic Environment 20
V. Appendix I 29
VI. Appendix II 37 1.Group Profit & Loss 38 2. Business Unit Financials 40
2 I. Alpha Bank Overview Alpha Bank at a Glance
Alpha Bank at a Glance Shareholder Structure as of 28/06/2013
. Founded in 1879 by the Costopoulos family Greek Shares excl. HFSF1 Institutional Investors . Consistency in management ensuring firm 5% Founding implementation of Alpha Bank’s strategy Family 6% Foreign . A leading franchise in Greece Insitutional Investors 44% A leading branch network with 733 branches Romania €54.0bn of customer loans
€36.0bn of customer deposits Individuals 45% . Well-established presence in SEE Warrants Greek Nationwide coverage across all SEE countries Institutional Investors with a network of 492 branches 3% Founding Family €10.3bn of customer loans in SEE 5%
€5.5bn of deposits in SEE Foreign th Insitutional . Acquisition of Emporiki Bank (6 player in the Greek Investors market) completed February 1st 56%
Individuals . Successful completion of the €4.6bn Capital 36% Strengthening Plan in June 2013
1 The Hellenic Financial Stability Fund (“HFSF”) holds 9.1bn common shares with restricted voting rights (Article 7a of L.3864/2010) out of the total 10.9bn 4 A Strong Franchise with a Regional Footprint
Geographical Footprint
Greece
Contribution Q1 13 to Group Mar. 13 Ukraine Branches 733 60% Employees 11,419 64% Gross Loans (€bn) 54.0 83%
Romania Deposits (€bn) 36.0 86% Pre-Provision Income (€m) 240.3 87% Serbia Bulgaria
FYROM
Albania
Greece SEE
Cyprus Contribution Q1 13 to Group Mar. 13 Branches 492 40% Employees 6,234 35% Gross Loans (€bn) 10.3 16% Deposits (€bn) 5.5 13% Pre-Provision Income (€m) 33.1 12%
5 II. Recent Developments and Alpha Bank Highlights Overview of Capital Strenghtening Plan
Capital Strengthening Plan of €4,571mn (‟Total Capital Increase”) • Private Sector Participation of €550mn (‟Capital Increase – Private Sector”): Capital – €457.1mn rights issue with pre-emption rights extended to existing Alpha Bank shareholders Strengthening (‟Rights Offering”) Plan Structure – €92.9mn Private Placement (‟Private Placement”) • Without pre-emption rights, the Hellenic Financial Stability Fund (‟HFSF”) covers the remaining €4,021mn
Warrants were granted to private investors participating in the Capital Increase – Private Sector, providing them with rights to acquire shares issued by the Bank and owned by the HFSF Warrants • Ratio of warrants to acquire 7.41 shares per 1 share subscribed for Private Sector Investors participating in the Capital Increase will have the opportunity to acquire those shares over the next 4.5 years at certain terms
Type of Security: Ordinary shares Subscription Price: €0.44 per new share Subscription Ratio for Rights Offering: 1.944456 new shares per 1 existing share • Shareholders received 1.944456 new shares for every existing share held on record date Terms & • 1 new share carries 1 warrant permitting holders to purchase shares subscribed by HFSF at selected Conditions intervals over the next 4.5 years at subscription price increased by an annual margin Number of New Shares Issued: 10,388,636,364 split between • Rights Offering: 1,038,863,636 • Private Placement: 211,136,364 • HFSF: 9,138,636,364
7 Fully Underwritten Rights Offering
Fully underwritten €457mn Rights Offering from the private sector by a syndicate of international investment banks:
• J.P. Morgan and Citigroup acted as Global Co-ordinators and Joint-Bookrunners;
• HSBC Bank plc and Crédit Agricole CIB acted as Joint-Bookrunners;
Axia Ventures Group acted as Co-Lead Manager and Alpha Finance acted as advisor to the issue
Timetable of events
May 2 May 13 May 17 May 27 May 31 June 11
Approvals from Shares trade ex- Subscription Trading of Rights End of Subscription Commencement HCMC and rights. Period and ceases Period of trading of new ATHEX Record date: Trading of Rights shares May 15th commences
8 Private Sector Test Comfortably Met
€457.1mn Rights Issue Subscription Results
vs. 2009 % Total Capital Increase of €986mn
Total New Shares 1,038,863,636
Exercise of Preemption Rights 1,001,311,756 96.4% 96.7%
Unappropriated 37,511,880 3.6% 3.3%
% Unappropriated
Oversubscription 720,475,101 19.2x 16.6x
% oversubscription satisfaction 5.2% 6.0%
Total Demand 1,721,786,857 1,65x 1,52x
. Private Placement of €92.9mn covered by high quality strategic and institutional investors of which 85% are Foreign
9 Key Investment Highlights
Expected recovery of the Greek economy after 6 years of recession coupled with significant fiscal Improving consolidation and regained competitiveness fundamentals in Greece Returning international investment into selected sectors
Returning confidence to the banking sector which has rapidly consolidated in 2012
Robust capital position with 13.9% pro-forma Core Tier 1 ratio as of March 31, 2013
Good liquidity position with 130% loan-to-deposit ratio as of March 31, 2013, manageable Preservation of capital and Eurosystem funding among Greek peers resilient operating performance Resilient PPI track record with upside through decreasing deposits rates, less use of expensive ELA funding, yield on recapitalisation proceeds and cost synergies
Manageable integration effort for Emporiki with significant scope for synergies
10 Alpha Bank Group Highlights
Key Alpha Bank Group numbers * Shareholders’ Equity pro-forma for € million Mar-13 recapitalisation stands at €8.1bn
Total assets 71,806
Gross loans 64,824 Emporiki consolidated into Alpha Bank Provisions (10,062) following closing of the transaction on Deposits 42,045 February 1, 2013 Shareholders’ equity* 3,487 Improvement of pre-provision income driven Total operating revenue 599 by both steady revenue performance and
Operating expenses (322) prudent cost management Pre-provision income 277 Positive asset quality trends with decreasing
Branches (#) 1,226 NPL formation and stable coverage at 52%
Employees (#) 17,767
Note: All numbers in this presentation include Emporiki as of 1/2/2013, unless stated otherwise
11 Integration progress update Completed
Initiatives/ activity Current status On track • Integration of risk and credit management Risk / Credit • Harmonization of credit policies and credit ratings • Establishment of common credit approval bodies
• Integration of branch network and product divisions management 9 branches to be • Design of combined branch network footprint co-located by June 2013 Retail • Common product offering
• Alignment of pricing and uniform service charges In progress, to be completed • Re-branding of retail branches by September 2013
• Integration of wholesale banking management • Common product offering Wholesale • Alignment of pricing • Appointment of single Relationship Manager per customer • Consolidation of treasury operations
• Integration of IT and Operations management To be further enabled • Purchasing spend optimization planning and early wins by the legal merger • IT CapEx revision 50 branches online • Implementation of common client servicing platform in branches IT and (full network in September)
Operations • Consolidation of Help Desk • Integration of Data Centers in Bank owned premises To be completed by Q1 2014 • Customer data cleansing Due in October 2013 • Consolidation of core IT systems (customer DB, deposits, cards, ATMs) (exc. loans: by Q1 2014)
• Integration of Internal Audit and Compliance management Support • Harmonization of internal audit and compliance policies and processes functions • Integration of audit teams
• Legal merger Other • New organizational structure
12 III. First Quarter 2013 Result Highlights Capital Base has been Preserved and Capital Ratios Increased to 13.9% during Q1 2013
EBA Core Tier I Ratio Build up
(€ million)
EBA CT1 13.7% 13.9% ratio 156 45
(63) (268)
7,779 7,908 8,046
EBA Core Tier I Q1 2013 Profit2 AFS Unrealized Gains Other Pro-forma EBA Core Net DTA movement EBA Core Tier I 31/12/2012 1 Tier I 31/03/2013 -€1.8 billion RWAs €57.7 bn €55.9 bn
1 Including €4.6bn capital increase 2 Adjusted for €2.6bn of Emporiki negative goodwill and €120mn gain from the initial recognition of the convertible bond issued to Crédit Agricole
Group RWAs development Common Shareholders Book Value Build-up
(€ billion) (3.0%) (€ billion)
57.7 55.9 0.7 0.8 4.2 4.2 4.6
7.1 0.2
52.8 50.9 2.3 2.3 2.5 2.5
Common Q1 2013 Common Recapitalisation Common shareholders movement shareholders shareholders Dec. 12 Mar. 13 equity equity Book Value 31/12/2012 31/03/2013 after Credit Risk Operational Risk Market Risk Recapitalisation
14 Continued Improvement in Liquidity Position with Net Deposit Inflows and Decrease of Eurosystem Funding
Evolution of Alpha Bank Deposits
(€billion) 42.0 0.7 0.5 (8.1%) qoq +2.7% qoq +8.3% qoq 6.0 12.8 27.9 28.5 Abroad 25.6 0.7 26.3 0.2 (2.3) 2.0 5.8 6.0 5.8 5.8 Greece 36.0
22.1 19.8 20.5 22.5
Mar. 12 Δ Q2 2012 Jun. 12 Δ Q3 2012 Sep. 12 Δ Q4 2012 Dec. 12 Emporiki Alpha Bank Q1 13 Δ Apr 13 ∆Q1 13
Improved funding mix . Restoration of confidence in the banking Eurosystem funding evolution (€ billion) Buffer system and gradual recovery of the ELA funding Greek Economy ECB funding €12bn €23.7bn . Decrease in Eurosystem funding in Q1 €20.0bn 2013 by €4.9 billion1 and restored more 6.7 conducive ECB/ELA mix 23.7 13.3
2012 Q1 13 1
1 Q1 2013 includes Emporiki ECB funding of €1.2 billion and unused collateral of €5.0 billion 15 NIM decreases as deposit repricing effects yet to come, while Central Bank funding mix reduces funding cost
Pre-Provision Income Build-up Group NII decomposition
(€million) (€ million) 277 2.8% 2.6% 2.4% 2.0% 1.8% 31 13 Loans
1 70 165 11 Deposits (13) 494 511 506 507 571
NIM
(47) (60) (72) (93) (173)
Q4 12 Δ NII Δ Fees Δ Other Δ OPEX Emporiki Contribution Q1 13 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13
1 Excluding extraordinary costs
Central Bank Funding Average Balances and Cost Comments
(€billion) 2.70% . Deposits contribution to NII deteriorated in Q1 2013 as the 2.36% higher priced time deposits of Emporiki weigh into the mix 1.96% 1.90% 1.83% 1.70% 3 ELA 1.37% . Positive impact from repricing Greek time deposits yet to fully come through gradually during 2013 24.3 24.8 23.2 23.3 19.5 20.5 ECB 19.0 . Reduced central bank funding and more conducive 9.6 5.8 11.1 ECB/ELA mix leading to significant reduction of funding cost 19.1 9.7 7.4 24.2 Funding 2 Cost . Income from financial operations mainly impacted by the 13.7 13.5 12.2 10.8 11.6 5.2 0.6 gain of €120mn from the initial recognition of the convertible bond issued to Credit Agricole Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Apr-13 2 Excluding Fees 3 Not incorporating ECB rate cut in May 2013 16 Solid Loan Contribution to NII While Full Effect of Deposit Repricing Yet to Translate into Results
NII – Loans Contribution Deposit Spreads
(€million) (bps)
25 13 5 Sight and 511 571 (29) 494 506 507 17 16 Savings - (29) Greece (19) (30) (54) SE (197) Europe (228) (256) (287) Time (335) Deposits - Greece 1 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13
1 With Emporiki contribution Renewals & New Euro Time Deposits Spreads Loans Spreads - Group (Greece - excluding State deposits)
(bps) (€(bps)bn)
(357) 430 436 444 445 390 401 375 379 387 (386) (396) (409) (413) (415) +44bps
+26bps (426) (431) (438) Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13
Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Alpha Bank Spreads Emporiki Spreads
17 Costs remain under strict control
Total Operating Expenses
(€ million) (3.8%) . Continued efforts to increase efficiency result in further cost reduction; 3.8% yoy decrease in 125 operating expenses . Emporiki Q1 13 operating Emporiki expenses at €99mn or a Q1 13 (4.8%) decrease of 16.6% compared to 262 259 256 265 252 99 Q1 2012; strong performance in both staff expenses and general expenses underlines potential for Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 capturing synergies Alpha Bank Extraordinary Costs
Wages & Salaries General Expenses . Staff costs decreased by 7.7% Alpha Headcount (FTE) Emporiki Number of Branches Alpha Emporiki yoy, due to accelerated attrition in 14,239 13,564 4,203 965 908 318 Greece and the new two-year o.w. Greece o.w. Greece collective agreement that came in 7,675 7,389 4,012 434 425 308 force in early May 2012
(€ million) . General expenses were down by (€ million) 2.5% yoy, from an already low (7.7%) (2.5%) level following continuous Emporiki Emporiki procurement optimisation Q1 13 Q1 13 initiatives 129 126 119 119 119 66 111 110 114 121 108 26 . Emporiki Q1 13 staff expenses at 1 1 €66mn & general expenses at
1 1 €26mn, down by 7.0% and 37.2% Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 yoy respectively Alpha Bank Alpha Bank
1 Excluding extraordinary costs 18 Stabilizing Economic Environment led to a Decreased NPL Formation for another Quarter, while Increasing Coverage at 52%
NPL formation Impairment Allowances and Coverage
Coverage NPL ratio 58% 52% 30.1% (€ billion) (bps) 1 4.9 10.1 1 270 250 0.9 2.0 1 47% 1.2 200 200 190 2.0 2.7 150 5.2 130 1.1 90 100 0.8 6.1 3.3
Alpha Bank Emporiki Group Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 incl. Emporiki Business Loans Mortgages Consumer Credit
1 Adjusted for the PSI+ impact on state guaranteed loans
Loan Loss Provisions Comments
(bps) 439 1 . NPL formation of Alpha Bank has stabilised at 391 1 180bps; including Emporiki, the quarterly 335 311 formation is at 150bps 1 260 235 243 204 215 186 . Stable coverage level at 52% results into impairment of €505mn
Pre-crisis (2004-2008) 5Y Average: 91bps . As a result of the above, loan loss provisions drop from 439bps to 311bps back at Q2 12 level Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 incl. Emporiki
19 IV. Greece and SEE Macroeconomic Environment Greece Successful Adjustment And Bank Recapitalization Improve Economic Sentiment Recovery Prospects Strengthen As Liquidity Constraints Ease
• Bank recapitalization is expected to usher in a new era for the restoration of confidence and the resumption of growth, as liquidity conditions improve and portfolio investor interest is rekindled. • Successful privatizations are timely coming on stream enhancing confidence and paving the way for domestic and foreign investors to commit capital resources to long-term investment projects in Greece. • Twin primary fiscal and current account surpluses to emerge from 2013 as imbalances are successfully tackled through fiscal consolidation and gains in competitiveness. • With deficits under control, emphasis is now being placed on downsizing of public administration and the drive to rein on tax evasion, enhancing sustainability of adjustment.
CompetitivenessFDI Investment&Investment Exports Driven Gains (2007) Driven GrowthBring Growth External (%∆ (%YoY) ∆Balance YoY) Fiscal Consolidation On Track In € bn (Central Government) 120 15,0% 15 12.3 Net 11.7 12.8 115 Competitiveness Revenue 700 10,0% 10 508 110 5,0% 105 5 100 100 0,0% 0 95 -333 -500 -5,0% Primary 90 CurrentAccount -5 Surplus -10,0% 63.7 85 (% of GDP) 59.6 58.4 -1100 -10 80 -15,0% Primary -1,547 -11.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013F Expenditure -13.2 2011 2011 2011 2011 2012 2012 2012 2012 -15 -13.3 -1700 Jan.-Mar. 2011 Jan.-Mar. 2012 Jan.-Mar. 2013
Source: Bank of Greece, European Commission, Alpha Bank forecasts Source: Ministry of Finance 22 The Greek Shoots Of Recovery
FDIEconomic & Exports Sentiment (2007) Indicator Hirings Minus Dismissals In thousand people 120 10% Economic Sentiment Index, lhs 60.000 8% GDP (% yoy growth), rhs 110 6% 40.000 May 2012-Apr.2013 4% 100 2% 20.000
0% May2006-Apr.2024.307 90 -2% 0 21.1 -4% -20.000 80 -6% -8% 7.5 May2011-Apr.2012 -40.000 70 -10% -60.000 May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr
Household Deposit Flows Credit Flows to Non-Financial Corporates
€ millions € millions
6.000 1000 4.063 727 4.000 2.759 1.979 500 2.000 981 1.263 920 936 342 115 145 117 192 164 0 -32 0 -2.000 6m moving average -131 -111 -173 -3.185 -236 -4.000 -3.460 -500 -328 -438 -474 -518 -579 -6.000 -656 -5.674 6m moving average -1000 -822 -8.000 -7.517 -956 -10.000 -1422 -1500
Source: Central Banks, Statistical Authorities, Eurostat, IMF, Bloomberg, Alpha Bank Research 23 SEE Recovery Moderated In SEE, Postponed Until 2014 In Greece
GDP Growth Credit Expansion
2009 2010 2011 2012 2013f 4% GDP Growth
Greece Bulgaria Romania Serbia 2% 14,8% 0% 8,5% 6,4% -2% 4,5% 4,3% 4,2% 4,1% 3,5% 2,8% 3,8% 1,4% 3,9% 2,8% -4% 2,6% -1,4% 0,0% -4,0% -2,0% -6% -3,9% -3,1%
-8% 2009 2010 f 2011 2012 2013f Greece Eurozone Bulgaria Romania Serbia
Source: Alpha Bank Research Source: Alpha Bank Research
10y Government Yield Spread REER (based on ULC) (2000=100)
1800 5000 160 1600 4500 Italy (LHS) Portugal (LHS) 150 4000 1400 140 Spain (LHS) Greece (RHS) 3500 1200 130 3000 Italy 1000 120 2500 Ireland 800 110 2000 Spain 600 100 1500 Portugal 400 90 Germany 1000 Greece 200 500 80
0 0 70
2000 2001 2003 2004 2005 2006 2009 2010 2011 2002 2007 2008 2012 2013
Source: Central Banks, Statistical Authorities, Eurostat, IMF, Bloomberg, Alpha Bank Research 25 SEE: Fragile Global Economic Outlook Threatens Recovery
Bulgaria Romania Remittances Remittances Jan-Feb 2013 Jan-Feb 2012 Jan - Feb 2013 Jan-Feb 2012 € 123 mn €122.9 mn € 380 mn € 392 mn 40% 500 20% 1.000 400 300 15% 750 20% 200 10% 500 100 5% 250 0% 0 0% 0 -100 -200 -5% -250 -20% -300 -10% -500 -400 -15% -750 -40% -500 -20% -1.000 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Net FDI (RHS) Industrial Production - YoY% (LHS) Net FDI (RHS) Industrial Production (YoY%) Credit Expansion - Yoy% (LHS) Credit Expansion - YoY% (LHS)
Serbia GDP Growth YoY% Remittances Jan-Feb 2013 Jan-Feb 2012 6% Bulgaria € 287.6 mn €235.4 mn 40% 500 4% Romania 2% 300 20% 0% 100 -2% 0% -4% Serbia -100 -6% -20% -300 -8% -10% -40% -500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 2011 2012 2013 Net FDI (RHS) Industrial Production (YoY%) Credit Expansion - YoY% (LHS) 2009 2010 2011 2012
Source: Central Banks, Statistical Authorities, Eurostat, IMF, Bloomberg, Alpha Bank Research 26 SEE: External Balance Stable But Capital Inflows Remain Weak
External Balances at sustainable levels (€ billion) SerbiaForeignRomaniaBulgaria investors remain selective & cautious (€ billion)
Romania Bulgaria Serbia Romania Total 4 FDI Inflows Inflows 20 Other Investment Inflows 80 2 C/A Net FDI deficit 0 60 -2 10 40 Net -4 Other 20
-6
Q1*
Q4 Q1 Q2 Q3 Q4 Q1 Q4 Q1 Q2 Q3 Q2 Q3
2011 2012 -8 0 2010 0 -10 2011 2012 2011 2012 2011 2012 2010 2011 2012 2013
* Jan-Feb
Gross Official Reserves / Short-term External Debt Romania Bulgaria Total Inflows 2,5 FDI Inflows Other Investment Inflows 173% 164% 1,5 147% 145% 133% 113% 0,5
-0,5
Q1*
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2011 2012 -1,5 2010
Bulgaria Romania 2010 2011 2012 2013
* Jan-Feb Dec 2011 Dec 2012 Feb 2013
Source: Central Banks, Statistical Authorities, Eurostat, IMF, Bloomberg, Alpha Bank Research 27 SEE: Fiscal Consolidation Continues In A Rather Weak Growth And Stable Financial Environment
Bulgaria Romania
16% 2,15 24% 4,75 14% 2,11 20% 4,50 12% 2,06 4,25 10% 2,02 16% 4,00 8% 1,98 12% 6% 1,93 3,75 8% 4% 1,89 3,50 2% 1,84 4% 0% 1,80 3,25 2007 2008 2009 2010 2011 2012 2013 0% 3,00 HICP Inflation (LHS) Key Policy Rate (LHS) 2007 2008 2009 2010 2011 2012 2013 BGN per EUR (RHS) HICP Inflation (LHS) Key Policy Rate (LHS) RON per EUR (RHS)
Serbia General Government Balance (in % of GDP) 24% 120 21% 115 18% 110 15% 105 100 -1,0% -1,3% 12% -2,0% 95 -2,9% -2,4% 9% 90 -4,1% -5,0% 6% -5,7% 85 -6,4% 3% 80 0% 75 2011 2012 2013f 2007 2008 2009 2010 2011 2012 2013
CPI Inflation (LHS) Key Policy Rate (LHS) Bulgaria Romania Serbia RSD per EUR (RHS) *European Commission, Winter 2013
Source: Central Banks, Statistical Authorities, Eurostat, IMF, Bloomberg, Alpha Bank Research 28 V. Appendix I Group Loans
Group Loans Group Retail Loans
(€ billion) (€ billion) 64.8 38.8 0.6 10.2 48.9 0.7 25.2 Other 21.4 10.1 Mortgages
SE Europe 14.5 54.0 Consumer Credit 38.1 7.4 Greece Small Business 5.4 Loans 5.3 7.0 Mar 12 Mar 13 Mar 12 Mar 13
SEE Loans Group Wholesale Lending
(€ billion) (€ billion)
10.1 10.2
Cyprus 4.6 5.2 29.0 23.7 Balkans
5.5 5.0
Mar 12 Mar 13 Mar 12 Mar 13
30 Retail Lending
Mortgage Balances - Greece Consumer Credit Balances - Greece
((€€ million)million) (€ million) 6,379
1,170 4,532
1,286 Credit cards 17,668
5,209 Consumer 11,032 loans 3,246
Mar 12 Mar 13 Mar 12 Mar 13
Small Business Lending Balances - Greece Comments
(€ million) . Stricter underwriting caused housing loans rejection rate to increase to 62% from 61% a year ago
. New production mortgages LTV at 43%, total book average LTV at 54% 6,909
4,529 . Consumer loan rejection rate at 72% from 71% a year ago
Mar 12 Mar 13
31 Corporate Banking – Volume Reduction
Medium & Large Business Loans – Greece Business Loans Portfolio Structure - Group
(€ million) Business Loans Other , 8.5% €36.1bn Services, 7.1% Industry , 25.5%
23,006 Real Estate, 9.1% 18,127 Shipping, 5.9% Trade, 24.5% Tourism, 6.6%
Transportation, 2.3% Construction , Mar 12 Mar 13 10.5%
Shipping Loans Balances Shipping Loans Portfolio Structure
(€ billion) Yachts Duration of loan Passenger 1% portfolio at 6 years 0.79 0.78 0.78 8% 0.75 0.77 0.75 0.76 Dry Bulk 0.72 37% 0.70 Capesize Containers LTV at 83% 9% 8% Panamax 9% 1.6 1.6 1.6 1.5 Product 1.4 1.4 1.3 1.3 Handy Tankers 1.3 max/ 12% Handy size 19% Panamax Tankers VLCC 15% 4% 42% Dec. 08 Dec. 09 Dec. 10 Dec. 11 Mar. 12 Jun. 12 Sep. 12 Dec. 12 Q1 13 Suezmax 14% Aframax Loans Balances USD/EUR 1%
32 Deposit Evolution Breakdown
Customer Assets Deposits Evolution – Group
(€ billion) (€ million) Core Deposits 3,517 13,237 44.3 9,995 194 1.4 0.7 (421) (48) 0.1
30.1
Investment 1.4 Balances 0.7 0.1
28.8 Mar 12 Q2 12 Q3 12 Q4 12 Q1 13 Mar 13
Liquidity 17.9 Time Deposits:
28,808 10,063
Transaction 17,867 1,981 Balances 13.2 10.0
(1,832) (728) Mar 12 Mar 13
Sight & Savings Time Deposits Money Morket Deposits Mutual Funds Other Mutual Private Banking Funds Mar.12 Q2 12 Q3 12 Q4 12 Q1 13 Mar.13
On Balance Sheet
33 Wealth Management evolution according to developments in the Economic Environment
Alpha Private Bank Asset Management
(€ million) 3,760 (€ million)
2,880 2,917 1,460
2,240 207
1,610 1,695 959 868 131 129 1,111
1,359 750 676 1,177 1,124
161 142 93 98 63 78 Mar. 11 Mar. 12 Mar. 13 Mar. 11 Mar. 12 Mar. 13
Discretionary Advisory Execution Only Other AUM Non Money Market Mututal Funds Money Market Mutual Funds
34 SEE
Cyprus Δ% Romania Δ% Bulgaria Δ% Serbia Δ% Albania Δ% FYROM Δ% TOTAL Δ% (€million) Mar. 2013 yoy yoy yoy yoy yoy yoy yoy
Loans 5,185 12.8% 3,028 (6.3%) 717 (14.4%) 770 (11.2%) 373 (3.3%) 69 (4.0%) 10,252 1.5%
Mortgages 2,459 15.8% 777 (11.1%) 158 (2.0%) 199 0.1% 70 (35.2%) 16 (3.8%) 3,687 5.7%
Consumer 308 19.0% 344 47.8% 67 (8.6%) 152 (16.3%) 7 (9.3%) 22 (19.7%) 962 14.0% Credit
Businesses 2,418 9.1% 1,907 (10.2%) 492 (18.5%) 419 (13.9%) 296 9.8% 31 11.5% 5,604 (2.8%)
Deposits 2,639 (1.1%) 1,358 12.0% 349 (0.1%) 588 7.3% 455 9.3% 75 16.3% 5,527 4.0%
35 SEE
Cyprus Romania Bulgaria Serbia FYROM SE Europe (€million) Δ% Δ% Δ% Δ% Albania Δ% Δ% Δ% Mar. 2013 yoy yoy yoy yoy yoy yoy yoy
Operating 37.6 (19.1%) 35.6 4.5% 10.8 12.2% 9.4 (14.6%) 4.4 (11.5%) 1.1 13.6% 103.3 (7.6%) Income
Operating Expenses (pre-O/H 16.4 10.2% 21.8 6.5% 7.8 (3.3%) 9.2 (6.7%) 3.4 7.1% 1.7 (13.7%) 63.9 3.3% allocation)
Impairment Losses 41.6 12.0% 26.5 39.7% 0.8 (81.4%) 5.9 88.4% 0.6 (32.7%) 0.5 … 76.2 18.0%
Profit Before Tax (20.4) … (12.6) … 2.1 … (5.7) … 0.5 (50.5%) (1.0) 32.7% (36.8) … (pre- O/H allocation)
Loan Market 7.0% 5.9% 2.8% 4.4% 9.3% 1.9% Share
NPL Ratio 29.2% 13.6% 19.6% 18.6% 16.3% 29.5% 22.4%
Branches 41 150 86 131 42 19 492 -38
Employees 1,019 2,087 803 1,412 387 238 6,301 -196
36 VI. Appendix II 1. Group Profit & Loss Alpha Bank Group
% Change (€ million) Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012 Q1 13/Q1 12
Operating Income 598.9 430.7 405.5 451.8 206.7 189.7%
Net Interest Income 320.6 285.6 334.8 365.7 415.6 (22.9%)
Net fee and commission income 76.2 74.7 64.9 68.9 64.6 17.9%
Income from Financial Operations 192.0 56.4 (12.7) 6.0 (282.2) …
Other Income 10.2 13.9 18.5 11.1 8.7 17.0%
Operating Expenses (322.0) (389.8) (256.1) (258.5) (262.0) 22.9%
Staff Costs (163.3) (165.4) (119.2) (125.9) (129.1) 26.5%
General Expenses (129.4) (196.3) (114.4) (110.4) (110.7) 16.8%
Depreciation and amortization expenses (29.4) (28.1) (22.5) (22.1) (22.2) 32.4%
Impairment losses on credit risk (505.3) (497.9) (450.0) (399.7) (320.7) 57.6%
Negative Goodwill from Emporiki Transaction 2,632.3 0.0 0.0 0.0 0.0 …
Profit / (Loss) before tax 2,403.9 (456.9) (300.6) (206.4) (376.0) …
Income Tax 472.7 83.8 52.4 59.2 62.8 …
Net Profit / (Loss) 2,876.6 (373.1) (248.2) (147.2) (313.2) …
Net Profit / (Loss) attributable to shareholders 2,876.5 (373.5) (248.3) (147.2) (313.2) …
Net Interest Income / Average Assets - MARGIN 1.8% 2.0% 2.4% 2.6% 2.8%
Cost / Income (excluding trading and extraordinary costs) 79.1% 70.7% 61.2% 58.0% 53.6%
39 2. Business Unit Financials Group Results by Business Unit
Investment Commercial & Asset Retail SE Europe Banking & Other Group Corporate Management (€ million) Treasury Jan-Mar Jan-Mar Jan-Mar Jan-Mar Jan-Mar Jan-Mar Jan-Mar 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
Operating Income 200.7 244.6 172.7 152.9 103.3 111.8 2.3 (9.3) 7.9 9.2 2,744.4 (302.5) 3,231.2 206.7
Net Interest Income 168.0 218.1 139.0 130.8 84.7 92.3 (73.4) (29.4) 2.6 3.4 320.6 415.6 (0.4) 0.5
Net fee and Commission Income 31.3 24.1 30.9 20.8 11.6 12.3 (2.9) 1.9 5.1 5.7 76.2 64.6 0.1 (0.2)
Income from Financial Operations 1.3 1.5 0.7 0.6 3.2 4.5 78.1 16.3 0.2 0.2 108.5 (305.3) 192.0 (282.2)
Other Income - 1.0 2.1 0.7 3.7 2.6 0.5 1.9 0.0 (0.0) 2,636.1 2.5 2,642.4 8.7
Operating Expenses (183.9) (135.1) (39.2) (32.8) (70.2) (70.7) (6.9) (5.5) (6.6) (6.9) (15.2) (11.0) (322.0) (262.0)
Staff Costs (93.7) (64.5) (24.0) (21.8) (33.1) (33.2) (4.2) (3.1) (3.5) (3.8) (4.8) (2.6) (163.3) (129.1)
General Expenses (77.2) (61.4) (9.8) (7.9) (31.0) (30.0) (2.4) (2.1) (2.8) (2.6) (6.3) (6.8) (129.4) (110.7)
Depreciation (13.0) (9.3) (5.3) (3.0) (6.2) (7.5) (0.4) (0.3) (0.3) (0.4) (4.1) (1.6) (29.4) (22.2)
Impairment Losses (297.3) (156.3) (131.8) (99.8) (76.2) (64.6) - - - - - 0.0 (505.3) (320.7)
Profit / (Loss) before tax (280.5) (46.8) 1.7 20.2 (43.1) (23.5) (4.7) (14.8) 1.3 2.4 2,729.2 (313.5) 2,403.9 (376.0)
Risk Adjusted Return on 8% (75%) (17%) 0% 6% (27%) (14%) (5%) (17%) 8% 14% … … 329% (87%) Regulatory Capital
Cost / Income Ratio (excl. trading 92% 56% 23% 22% 70% 66% (9%) (21%) 85% 76% 1% 393% 11% 54% and extraordinary costs)
41 Retail Business Unit: Results
(€ million) Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012
Operating Income 200.7 222.2 237.3 242.7 244.6
Net Interest Income 168.0 191.9 207.5 211.7 218.1
Net fee and Commission Income 31.3 28.1 26.8 27.3 24.1
Income from Financial Operations 1.3 1.0 1.6 2.3 1.5
Other Income 0.0 1.1 1.5 1.4 1.0
Operating Expenses (183.9) (129.5) (129.3) (130.8) (135.1)
Staff Costs (93.7) (58.8) (59.0) (62.9) (64.5)
General Expenses (77.2) (60.6) (60.7) (58.6) (61.4)
Depreciation (13.0) (10.1) (9.5) (9.3) (9.3)
Impairment losses (297.3) (250.1) (207.7) (159.0) (156.3)
Profit / (Loss) before tax (280.5) (157.4) (99.7) (47.1) (46.8)
RWA 18,800 12,955 13,101 13,264 13,422
Risk Adjusted Return on 8% Regulatory Capital (74.6%) (60.8%) (38.0%) (17.8%) (17.4%)
Cost / Income Ratio (excl. trading and 92.2% 58.5% 54.8% 54.4% 55.6% extraordinary costs)
42 Commercial & Corporate Business Unit: Results
(€ million) Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012
Operating Income 172.7 159.7 159.2 164.1 152.9
Net Interest Income 139.0 125.6 134.1 135.1 130.8
Net fee and Commission Income 30.9 29.2 23.1 23.9 20.8
Income from Financial Operations 0.7 4.3 1.2 4.3 0.6
Other Income 2.1 0.7 0.7 0.9 0.7
Operating Expenses (39.2) (34.4) (31.0) (31.2) (32.8)
Staff Costs (24.0) (19.4) (20.1) (20.7) (21.8)
General Expenses (9.8) (8.1) (8.2) (7.7) (7.9)
Depreciation (5.3) (6.9) (2.7) (2.8) (3.0)
Impairment losses (131.8) (153.8) (165.0) (162.3) (99.8)
Profit / (Loss) before tax 1.7 (28.4) (36.8) (29.5) 20.2
RWA 23,796 16,062 16,247 16,402 16,507
Risk Adjusted Return on 8% Regulatory Capital 0.4% (8.9%) (11.3%) (9.0%) 6.1%
Cost / Income Ratio (excl. trading and extraordinary 22.8% 19.9% 19.6% 19.5% 21.6% costs)
43 Asset Management Business Unit: Results
(€ million) Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012
Operating Income 7.9 7.0 8.5 13.2 9.2
Net Interest Income 2.6 2.7 2.6 3.0 3.4
Net fee and Commission Income 5.1 5.8 5.3 5.3 5.7
Income from Financial Operations 0.2 (1.7) 0.5 4.9 0.2
Other Income 0.0 0.3 0.0 0.0 (0.0)
Operating Expenses (6.6) (7.1) (6.5) (6.8) (6.9)
Staff Costs (3.5) (3.6) (3.6) (3.8) (3.8)
General Expenses (2.8) (3.0) (2.4) (2.5) (2.6)
Depreciation (0.3) (0.5) (0.4) (0.5) (0.4)
Impairment losses - - - - -
Profit / (Loss) before tax 1.3 (0.1) 2.0 6.4 2.4
RWA 816 823 829 841 850
Risk Adjusted Return on 8% Regulatory Capital 7.9% (0.8%) 12.2% 38.2% 14.0%
Cost / Income Ratio (excl. trading and extraordinary 85.3% 81.8% 81.1% 81.5% 76.1% costs)
44 Investment Banking & Treasury Business Unit: Results
(€ million) Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012
Operating Income 2.3 (88.7) (91.7) (60.2) (9.3)
Net Interest Income (73.4) (128.3) (102.9) (82.7) (29.4)
Net fee and Commission Income (2.9) (1.5) (2.2) 0.5 1.9
Income from Financial Operations 78.1 39.7 14.6 20.9 16.3
Other Income 0.5 1.4 (1.2) 1.2 1.9
Operating Expenses (6.9) (5.0) (5.1) (5.2) (5.5)
Staff Costs (4.2) (2.8) (2.7) (2.9) (3.1)
General Expenses (2.4) (1.9) (2.0) (2.0) (2.1)
Depreciation (0.4) (0.3) (0.3) (0.3) (0.3)
Profit / (Loss) before tax - - - - -
RWA 4,561 4,135 4,250 4,390 4,470
Risk Adjusted Return on 8% Regulatory Capital (5.1%) (113.4%) (113.9%) (74.4%) (16.5%)
Cost / Income Ratio (excl. trading and extraordinary (9.1%) (3.9%) (4.8%) (6.4%) (21.4%) costs)
45 SE Europe Business Unit: Results
(€ million) Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012
Operating Income 103.3 114.3 123.6 112.9 111.8
Net Interest Income 84.7 93.6 93.1 98.1 92.3
Net fee and Commission Income 11.6 12.8 11.9 12.0 12.3
Income from Financial Operations 3.2 3.8 8.1 (0.5) 4.5
Other Income 3.7 4.1 10.6 3.3 2.6
Operating Expenses (70.2) (80.5) (69.2) (76.2) (70.7)
Staff Costs (33.1) (31.9) (31.2) (32.9) (33.2)
General Expenses (31.0) (41.5) (30.8) (35.5) (30.0)
Depreciation (6.2) (7.1) (7.2) (7.8) (7.5)
Impairment losses (76.2) (94.0) (77.3) (78.4) (64.6)
Profit / (Loss) before tax (43.1) (60.1) (22.8) (41.8) (23.5)
RWA 8,045 7,973 8,141 8,351 8,515
Risk Adjusted Return on 8% Regulatory Capital (26.8%) (37.7%) (14.0%) (25,0%) (13.8%)
Cost / Income Ratio (excl. trading and 70.1% 72.9% 59.9% 67.2% 65.9% extraordinary costs)
46 Other Business Unit: Results
(€ million) Q1 2013 Q4 2012 Q3 2012 Q2 2012 Q1 2012
Operating Income 2,744.4 16.2 (31.4) (20.8) (302.5)
Net Interest Income (0.4) 0.2 0.4 0.6 0.5
Net fee and Commission Income 0.1 0.4 (0.1) (0.0) (0.2)
Income from Financial Operations 108.5 9.3 (38.7) (25.7) (305.3)
Other Income 2,636.1 6.3 6.9 4.3 2.5
Operating Expenses (15.2) (133.3) (15.1) (8.3) (11.0)
Staff Costs (4.8) (49.0) (2.5) (2.7) (2.6)
General Expenses (6.3) (81.2) (10.3) (4.1) (6.8)
Depreciation (4.1) (3.1) (2.3) (1.4) (1.6)
Impairment losses - (0.0) - - 0.0
Profit / (Loss) before tax 2,729.2 (113.9) (44.2) (27.7) (313.5)
RWA 311 512 514 518 520
47 Disclaimer
This presentation contains forward-looking statements, which include comments with respect to our objectives and strategies, and the results of
our operations and our business, considering environment and risk conditions.
However, by their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities, both general and
specific. The risk exists that these statements may not be fulfilled. We caution readers of this presentation not to place undue reliance on these
forward-looking statements as a number of factors could cause future Group results to differ materially from these targets.
Forward-looking statements may be influenced in particular by factors such as fluctuations in interest rates, exchange rates and stock indices,
the effects of competition in the areas in which we operate, and changes in economic, political, regulatory and technological conditions. We
caution that the foregoing list is not exhaustive.
When relying on forward-looking statements to make decisions, investors should carefully consider the aforementioned factors as well as other
uncertainties and events.
The securities to be issued in the proposed recapitalisation process mentioned herein have not been and will not be registered under the U.S.
Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from such registration
requirements.
48 Investor Relations Contacts
Mr. Vassilios Psaltis Mr. Michael Massourakis General Manager and CFO Senior Manager +30210 326 4009 Economic Research Division [email protected] +30210 326 2828 [email protected] Mr. Dimitrios Kostopoulos Manager Mr. Dimitrios Maroulis Investor Relations Division Manager +30210 326 4195 Economic Research Division [email protected] +30210 326 2832 [email protected] Ms. Elena Katopodi Assistant Manager Investor Relations Division +30210 326 4184 [email protected]
Ms. Stella Traka Investor Relations Officer +30210 326 4182 [email protected]
ALPHA BANK 40, Stadiou Street, 102 52 Athens, Greece
Internet : www.alpha.gr Reuters : ACBr.AT Bloomberg : ALPHA GA
49