Alior Bank (ALR) Q2 2025 earnings summary

Executive summary

• Net profit in Q2 2025 reached PLN 640 million, up 9% year-over-year, with H1 2025 net profit at PLN 1,132 million and ROE at 22%.

• Revenue rose 6% year-over-year in Q2 to PLN 1.52 billion, with net interest income at PLN 1.29 billion and net commission income at PLN 222 million.

• Customer base expanded to 1.64 million, with mobile app users up 13% year-over-year to 1.5 million.

• Dividend of PLN 9.19 per share paid from 2024 profit in July 2025.

• The bank adopted a new 2025-2027 strategy and continued to monitor regulatory changes, including the IBOR reform.

Financial highlights

• Assets grew 10% year-over-year to PLN 99.5 billion; deposits up 8% to PLN 79.6 billion; gross performing loans up 4% to PLN 62.5 billion.

• Cost-to-income ratio improved to 36.1% in Q2 2025; NIM at 5.74% (-0.08pp y/y); cost of risk at 0.20%.

• NPL ratio declined to 6.18%, with further reduction targeted below 5% by 2026.

• Operating expenses in Q2 2025 were PLN 550 million, mainly due to higher general/admin and BFG costs.

• Net cash flow from operating activities for H1 2025 was PLN 3,389 million.

Outlook and guidance

• NIM expected to decrease by 10% in the second half, depending on monetary policy decisions.

• Cost of risk projected to remain below 0.8% in the coming quarters, barring one-offs.

• NPL ratio targeted below 5% by end-2026.

• Economic recovery in Poland forecast to accelerate in 2H 2025, with GDP growth of 3.7% for 2025 and further rate cuts expected.

• Anticipated negative impact from new Consumer Loan Act on loan sales and profitability.