Alior Bank (ALR) Q4 2024 earnings summary

Executive summary

• Achieved record financial results in 2024, with revenue exceeding PLN 6 billion (PLN 6.06bn, +8% y/y) and net profit reaching PLN 2.445 billion, a 20% increase year-over-year.

• Net interest income rose 9% y/y to PLN 5.18bn; net commission income up 1% y/y to PLN 867mn.

• Maintained a strong capital position, with Tier 1 and TCR at 18.27%, well above regulatory minimums.

• Customer base grew, with over 1 million main relationship customers and a 17% increase in mobile app users to 1.27mn.

• Management intends to recommend a 50% dividend payout, subject to regulatory approval.

Financial highlights

• Total assets grew 4% y/y to PLN 93.3bn; deposits up 5% y/y to PLN 76.9bn; gross performing loans up 3% y/y to PLN 61.4bn.

• Net Interest Income rose by 9% year-over-year; Net Interest Margin (NIM) was about 6%.

• Cost-to-Income ratio below 35% for the year (34.9%); around 26% in Q4.

• Return on Equity (ROE) nearly 24% (23.9%).

• Cost of Risk (COR) improved to 0.62%, down 0.37 percentage points year-over-year.

Outlook and guidance

• Expects economic recovery in 2025 with GDP growth of 3.7% in Poland, supported by investments and EU funds.

• Dividend payout up to 50% of 2024 profit planned, pending regulatory confirmation.

• Expects to maintain or slightly improve Net Interest Income in 2025, with dynamic growth to offset margin pressure.

• Operating costs expected to remain stable, tracking inflation, with BFG contributions returning to previous levels.

• Cost of risk expected to remain below 0.8% barring significant macro changes.