Alpha Bank

Q4 2023 Results

Investor presentation

7th March 2024

Disclaimer

Systemic bank established in

1879

This presentation has been prepared and issued by Alpha Services and Holdings S.A. and its 100% subsidiary, Alpha Bank S.A., solely for informational purposes. It is hereby noted that on 16.4.2021, the demerger of the credit

institution under the former name "Alpha Bank S.A." (which has been already renamed "Alpha Services and Holdings S.A.") was completed by way of hive-down of the banking business sector with the incorporation of a new company - credit institution under the name "Alpha Bank S.A.". References to "Alpha Bank" shall be construed to be references to Alpha Services and Holdings S.A., except to the extent otherwise specified or the context otherwise required, i.e., references to the entity acting as a credit institution shall be deemed to refer to (i) the former Alpha Bank (already renamed Alpha Services and Holding S.A.) prior to 16.04.2021 and to (ii) the new "Alpha Bank S.A." on and after 16.04.2021.

For the purposes of this disclaimer, this presentation shall mean and include materials, including and together with any oral commentary or presentation and any question and answer session. By attending a meeting at which the presentation is made, or otherwise viewing or accessing the presentation, whether live or recorded, you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctions attached to the misuse, disclosure or improper circulation of the presentation or any information contained herein. By reading this presentation, you agree to be bound by the following limitations:

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 Services and Holdings (or any member of its 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 Services and Holdings 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.

This presentation does not constitute an offer, invitation or recommendation to subscribe for or otherwise acquire securities. Also, it is not intended to be relied upon as advice to 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 Services and Holdings and/or Alpha Bank's operations, results of operations, financial position and the development of the markets and the industry in which they operate or are 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 industry in which Alpha Services and Holdings and Alpha Bank operate 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 Services and Holdings' 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 Services and Holdings and/or 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 Services and Holdings to predict which factors they will be. In addition, Alpha Services and Holdings 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 Services and Holdings disclaims any obligation to update any forward-looking statements contained herein, except as required pursuant to applicable law.

About Alpha Services and Holdings

Alpha Services and Holdings S.A. (under the distinctive title Alpha Services and Holdings) is a financial holdings company, listed on the Athens Stock Exchange, and the parent company of the banking institution "ALPHA BANK S.A.".

Subsequent to the corporate transformation that took place in April 2021, the banking operations were hived-down to a new wholly owned banking subsidiary (Alpha Bank S.A.).

Alpha Bank S.A. is 100% subsidiary of Alpha Services and Holdings S.A. and one of the leading Groups of the financial sector in Greece which was founded in 1879 by J.F. Costopoulos. The Bank offers a wide range of high- quality financial products and services, including retail banking, SMEs and corporate banking, asset management and private banking, the distribution of insurance products, investment banking, brokerage and real estate management.

https://www.alphaholdings.gr/en/investor-relations

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Alpha Bank

  • Business Update
  • Outlook
  • Financial Performance Analysis
  • Appendix
    • Macroeconomic Update
    • ESG
    • P&L
    • Volumes
    • Asset Quality
    • Capital

Pages

3

14

24

42

44

51

55

66

71

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The trusted relationship bank of Greece

Our Identity and Strengths…

Privately owned since inception

with a mindset to deliver shareholder value and inspire trust

…are reflected in our customer proposition

Clients perceive Alpha Bank as more reliable, stable, humane and accessible

We are renowned for quality and professionalism among banking customers

This is reflected in our market positioning1:

Relied upon for our financial

expertise, quality of advice and focus on responsible banking

'One team' - inclusive and respectful culture with high level of employee engagement

Leader in high value segments

#1 in Wholesale Lending

#1 in Mutual Funds

Relationship excellence

#1 Private Bank in Greece

Net Promoter Score for >50 Private Banking and

Affluent customers

>20 Median tenure of Affluent years and Wholesale customers

Strong positioning in Greece

  1. in Credit Cards and loyalty
  • program
  1. in key sectors (Shipping
  • and Hospitality / Tourism)
  1. in virtual cards supporting
  • financial state aid initiatives

1| Based on FY 2022 data

4

During 2023 we have accelerated our momentum

2023 Performance

Profitability

  • +41% y/y net interest income
  • +8% y/y fees like-for-like
  • 39.5% cost-income ratio, -15pp y/y
  • 80bp cost of risk

Balance sheet

  • +5% y/y performing loans
  • +3% y/y deposits
  • 5.8% NPE ratio, -2pp y/y

Capital

  • +14.3% CET1% or 15.9% pro-forma
  • +376bp CAD% y/y
  • +461bp MREL% y/y

Return on Tangible Equity1

12.9% FY 2023; 14.3% in Q4

EPS2

€0.32 FY 2023, +91% vs FY 2022

Total CET1 Generated €0.7bn in FY 2023 Unicredit deal adds +€0.7bn CET1 equivalent

  • Dividend accrual 38bp3 in FY 2023
  • Tangible Equity
    €6.4bn in FY 2023, +12% y/y

Key financial targets

as per Investor Day

Return on Tangible Equity1

>12% in 2025

EPS2 growth

>20% CAGR 2022 - 2025

Total CET1 Generated €2.3bn

cumulative 2023 - 2025

  • Dividend payment resumption from 2023 profits3
  • Tangible Equity
    > €7bn in 2025

1| Based on normalized profit after tax over average Tangible Equity; Calculated after deduction of AT1 coupon payments; Adjusted excluding capital above management target, 2| Earnings per share; 2023 - 2025 figures are

5

calculated after deduction of AT1 coupon payments; Based on normalized profit after tax, 3| Subject to regulatory approval

Our upsized guidance for 2023 has been exceeded

Initial guidance

November guidance

Actual3

2022

2023

2023

2023

Total Revenues (€ bn)

2.0

> 2.0

c. 2.3

2.3

Cost-Income Ratio

55%

< 49%

c 43%

42%

Cost of Risk

76bps

c. 85bps

c. 80bps

81bps

ROTE1

7.5%

>9%

> 11.5%

12.9%

EPS2 (€)

0.18

> 0.23

> 0.30

0.32

Tangible Equity (€ bn)

5.8

c. 6.1

c. 6.3

6.4

FL CET1 Ratio

11.9%

c. 13.8%

c. 14%

14.3%

1| Return on Tangible Equity; Based on normalized profit after tax over average Tangible Equity; 2023 figure is calculated after deduction of AT1 coupon payments; Adjusted excluding capital above management target, 2| Earnings per share; 2023 figure is

6

calculated after deduction of AT1 coupon payments; Based on normalized profit after tax, 3| Adjusted adding back the operations that have been discontinued during the year for reasons of comparability with guidance.

Work on our six strategic priorities is yielding recurring results

1

Boost digital and focus

on high-value

segments in Retail

(26p.p.)

Cost-Income Ratio y/y

2

Revamp service

model to increase

penetration in Wealth

+49%

Asset management

balances1 y/y

3

Consolidate leadership in Wholesale

+19%

Total Revenues y/y

4

Improve return on deployed capital in International

+83%

Total Revenues y/y

5

Maintain the resilience

of our balance

sheet

14.3%

CET1% in 2023

6

Leverage

ESG for

value creation

€0.8bn

Sustainable

Disbursements3 in 2023

Maximize the potential of our People

Elevate digital services and data capabilities

1| Includes Mutual Funds, Managed Institutional Accounts, Direct investments in Fixed Income and Equities, 2| Return on FL CET1 employed capital at 13% management target, 3| Refers to gross disbursements

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1

Boost digital and focus on high-value segments in Retail

K E Y A C H I E V E M E N T S

New service model to >80% of branch network

Launched "Priority" RM services with >400 RMs and >500K clients

MyAlpha Advisor RM tool for Business RMs

Αlpha Retail >25% of Mutual Funds inflows

Introduced subscription bundles offering

Expanded digital banking functionalities with payroll account opening & credit card sales

Core revenues (€ mn)1

+41% y/y

770

547

FY 22

FY 23

ROCET1 (%)2

c.24p.p.

30%

6%

FY 22

FY 23

Cost-Income Ratio (%)

c.(26p.p.)

77%

51%

FY 22

FY 23

Unit sales per

>10% y/y

branch FTE growth

Sales via digital and

of total sales

hybrid channels

23% in 2023

RMs as % of

+19pp vs 2022

branch FTE

1| Includes Net Interest & Commission Income; Including Acquiring fees in 2022, 2| Return on FL CET1 employed capital at 13% management target

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2

Revamp service model to increase penetration in Wealth

K E Y A C H I E V E M E N T S

Top for mutual fund net inflows: 30% market share

8 new investment products driving +€1.3 billion in mutual funds (+44% y/y)

Launch of e-Wealth services to Private and Gold

Expanded investment offering range with two ESG

mutual funds

Secured regulatory approval for Alternative

Investment Fund Management license extension

Expanded presence to Cypriot institutional market by securing discretionary mandate

Asset Management Balances (€ bn)

+49% y/y

16

11

FY 22

FY 23

ROCET1 (%)1

c. 33p.p.

123%

90%

FY 22

FY 23

Total Revenues (€ mn)

+16% y/y

91

106

FY 22

FY 23

Investments

penetration in +6p.p. y/y Affluent

Asset Management

Balances per +15% y/y

Relationship Manager

Clients that interact

25% of clients with

through digital

channels2

investment

products

1| Return on FL CET1 employed capital at 13% management target; Normalized for one-off trading gains, 2| Remote transactions, e-statement, reporting & self servicing

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3

Consolidate leadership in Wholesale

K E Y A C H I E V E M E N T S

Specialized coverage for Corporates through redesigned industry expert teams.

New digital products: Trade Finance payments in FX, loan/deposit e-statements, Swift payments, account balance verification

"Alpha Business Banking" campaign for

corporate digital products and services

Upgraded Transaction Banking product through dedicated unit and client workshops

Net Loans (€ bn)4

+7%

18

19

FY 22

FY 23

ROCET1 (%)2

c.6p.p.

24%

18%

FY 22

FY 23

Total Revenues (€ mn)1

+19% y/y

739

880

FY 22

FY 23

Disbursements3 €6.6bn in 2023

Digital products

+33% vs 2022

and modules

1|

Excluding €10.5mn in 2022 from the acquiring business for like-to-like comparison, 2| Return on FL CET1 employed capital at 13% management target; 2022 calculated over normalized Cost of Risk, i.e excluding reversals,

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3|

Refers to gross disbursements. 4| Excluding senior notes and intersegment loans

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Disclaimer

Alpha Services and Holdings SA published this content on 06 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 March 2024 06:33:04 UTC.