Alior Bank (ALR) investor relations material

Executive summary

• Strategy emphasizes growth, scale, stabilization, and digital transformation, with strong progress in customer acquisition and digital engagement.

• Net profit for Q3 2025 was PLN 563 million, down 15% year-on-year, and for the first nine months was PLN 1,679 million, down 8.2% year-on-year.

• Net interest income remained stable at PLN 3.87 billion, while net fee and commission income grew 3% to PLN 665 million year-over-year.

• Customer base and digital engagement expanded, with 1.68 million main relationship customers (+98k y/y) and 1.59 million mobile app users (+15% y/y).

• Deposit portfolio increased 8% year-on-year to PLN 80.6 billion, and total assets grew 7.2% to PLN 97,742 million.

Financial highlights

• Year-to-date revenue exceeded PLN 4.5 billion, with Q3 2025 revenues at PLN 1.53 billion.

• Cost/income ratio in Q3 2025 was 36.9%, with operating expenses rising mainly due to higher Bank Guarantee Fund contributions.

• Return on equity (ROE) was close to 19% in Q3 and year-to-date, but declined from 24.4% year-over-year.

• Net fee and commission income grew 10% year-on-year in Q3 2025.

• Earnings per share for the period were PLN 12.86, down from PLN 14.02 year-over-year.

Outlook and guidance

• Net interest margin (NIM) expected to drop further in Q4 and next year, with annual average NIM to fall 30-40 basis points.

• Operating expenses projected to rise 6%-7% year-on-year in 2025, excluding BFG contributions.

• Risk costs expected to remain below 0.8% barring major macroeconomic changes.

• Lending growth anticipated as interest rates fall, but legal and regulatory risks remain significant.

• Macroeconomic uncertainty persists due to geopolitical tensions, inflation, and potential tax changes.