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ALPHA BANK
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Press Release
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January 16, 2008 Agenda 2010 Delivery Update - Presentation in London. Alpha Bank presented today to institutional investors on the progress made during 2007 towards its "Agenda 2010" and upgraded its financial targets to 2010. The presentation was hosted by Demetrios P. Mantzounis, Alpha Bank's Managing Director, who was accompanied by the Group's General Managers, the Executive General Managers for Retail and Southeastern Europe, and the Country Managers of Romania, Serbia, Bulgaria, and Cyprus. Agenda 2010 delivery update highlights: - Net income in 2010 of at least Euro 1,400 million translating into 23% Earnings Per Share CAGR 2007-2010 (from 20%) and 30% Return on Equity (from 28%). - Increased SEE contribution in group earnings to 30% by 2010 (from 25%). - Accelerated loan growth, to produce risk weighted assets growth of 20% CAGR. - Interim net income target for 2009 is set at Euro 1,150 million. Additionally, Alpha Bank confirmed that no external capital action will be required for the financing of the growth given the Bank's strong capital position and earnings generation. At today's presentation the Managing Director of Alpha Bank stated: "Two years into the Agenda 2010 implementation we feel increasingly confident of Alpha Bank's capacity to exceed its 10% market share target in Southeastern Europe and continue strengthening its leading position in the Greek market. Following strong uptake of our retail and corporate banking proposition in Southeastern Europe, which has delivered impressive new loan and deposit balances across the region in 2007, we will increase our network investment to double our current footprint and reach over 1,500 Network units by 2010. The increased distribution capacity, numerous marketing initiatives under way, and the recognised consciousness of Alpha Bank on credit quality, cost control, and quality personnel, gives us great optimism on our ability to continue creating value for our shareholders on a sustainable basis."Southeastern Europe With Euro 3.6 billion new loan balances in 2007 increasing total balances as of December 31, 2007 to Euro 7.6 billion, Alpha Bank is well on track to achieve its previous total loans target of Euro 18 billion in 2010. We will add 240 more Branches than originally planned in the Agenda 2010 to give a footprint of 1,010 units by 2010. In addition we revised upwards the loan target to a minimum of Euro 25 billion total loans by the end of the decade. Finally, the earnings before tax contribution of Euro 400 million has been increased to Euro 550 million to take into account the enhanced total assets levels. By the end of 2010 Alpha Bank expects to achieve a total market share of more than 10% across Southeastern Europe with leading positions in these markets. The strength of the Alpha Bank brand combined with our quality network deployment, trained and committed personnel, uniform branding, group product and marketing support and effective credit controls has led to enhanced efficiency levels in Alpha Bank's operations in the SEE countries. As a result we are registering significant acceleration of our performance across SEE: - In Cyprus we command already a number three position in loan terms, - in Romania, we are the fifth largest bank, - in Serbia, we completed successfully the restructuring of the acquired Jubanka and are positioned for strong growth, - and in Bulgaria we attained a 3% market share in less than two years. Greece Alpha Bank is geared for increased returns in its domestic retail franchise benefiting from its quality brand name and more than two and a half million high-end retail customers. Initiatives already in place include an overhaul of our consumer finance offering and new products in our asset management division, including bancassurance products developed jointly with AXA. The ?ank's strong mutual fund business uses tailor made delivery channels, including Alpha Prime which targets mass affluent customers and is expecting to selectively increase its branch Network towards 536 units by 2010, in order to take advantage of the Bank's expanding geographic coverage. Alpha Bank is also the market leader in the Greek corporate banking sector and is aiming to achieve increased penetration of its corporate customer base and market share gains in medium-sized companies, where delivery capacity has been strengthened with the roll out of the business centre concept. Full details of the revised targets for Agenda 2010 and webcasts of the presentation can be viewed on http://www.alpha.gr/4thCapitalMarketsDay and http://www.alpha.gr/4thCapitalMarketsDayVideo Alternatively, an audio broadcast of the presentation is also available on the following telephone numbers:for Greece: + 30 211 180 2000, UK : + 44 (0) 800 3769 250, US :+ 1 866 288 9315. London, 16 January 2008 Enquiries: Alpha Bank Marinos Yannopoulos, General Manager and C.F.O. Tel.: +30 210 326 2366 Vassilios Psaltis, Group IR & Corporate Development Tel.: +30 210 326 4009 www.alpha.gr Finsbury Group Edward Simpkins Tel.: +44 20 7251 3801
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