Alior Bank (ALR) Q2 2024 earnings summary

Executive summary

• Net profit for Q2 2024 reached PLN 586 million, up 16% year-over-year; H1 2024 net profit was PLN 1,164 million, up 34% year-over-year, with ROE at 24.5%.

• Tier 1 ratio at 17.12% and TCR at 17.53%, both well above regulatory minimums.

• Dividend of PLN 577 million paid in May 2024 from 2023 profit.

• S&P rating upgraded to BB+ with a positive outlook in May 2024.

• Mobile app users up 19% year-over-year to 1.2 million; regular cash inflow customers up by 61,000.

Financial highlights

• Net interest income in H1 2024 was PLN 2,514 million (+11% y/y); total income in H1 2024 was PLN 2,938 million (+9% y/y).

• Cost of risk in Q2 2024 was PLN 39 million (0.23%), down 74% year-over-year; H1 2024 CoR was 0.46%.

• NPL ratio dropped to 6.78% in Q2 2024, down from 9.45% a year earlier.

• Cost-to-income ratio stable at 36% in H1 2024, reflecting strong efficiency.

• Asset volume up 8% year-over-year; working loans up 11%.

Outlook and guidance

• NIM expected to remain stable in H2 2024 if monetary policy is unchanged; NBP rates likely stable through 2024.

• Cost of risk projected at 0.65% in 2024, 0.8% midterm if macro conditions remain stable.

• Targeting further NPL reduction below 5% enabled by current asset structure.

• New strategy for 2025–2027 in development, aiming for ambitious targets.

• Economic recovery in Poland expected to accelerate in 2025, supported by investments and EU funds.