Alior Bank (ALR) Strategy Update summary

Strategic vision and context

• Announced a new three-year strategy focused on growth, resilience, and operational excellence, leveraging leadership in consumer finance and digital innovation, and building on strong brand recognition in Poland.

• Aims to scale up relationship banking, adapt to changing demographics and regulations, and target both younger and older generations with modern digital solutions.

• Maintains a top 10 position in Poland and benefits from PZU Group collaboration for stability and bundled financial products.

Growth and business model

• Plans to maintain leadership in consumer finance, expand into new sectors, and achieve 30% growth in assets and liabilities, focusing on relationship banking.

• Targets a 30% increase in non-interest revenues and aims to diversify income sources to reduce sensitivity to interest rate cycles.

• Seeks to grow the number of relationship customers to 2.2 million, with 30% growth in retail and 25% in business relationship customers.

• Aims for double-digit revenue growth in retail and business segments, and stable dividends above 50% of net profit.

Digital transformation and technology

• Prioritizes digital banking for individual and business customers, with a new mobile app and integration with ERP, accounting, and logistics systems for SMEs.

• Plans to launch a new digital platform for business customers, aiming for 90%+ digital banking adoption among business clients and 60% of end-to-end sales via mobile.

• Leverages cloud-based data warehousing, AI, machine learning, and automation to enhance customer service and operational efficiency.