Alior Bank (ALR) investor relations material

Executive summary

• Net profit for Q3 2025 was PLN 563 million, with year-to-date profit at PLN 1,679 million, down 8.2% year-over-year, and ROE close to 19%.

• Revenues for 1-3Q 2025 reached PLN 4.52 billion, with net interest income stable and net commission income up 3% year-over-year.

• Customer base and digital engagement grew, with 1.68 million main relationship customers and 1.59 million mobile app users.

• Deposit portfolio increased 8% year-over-year to over PLN 80 billion.

• Capital and liquidity positions remain robust, with ratios well above regulatory minimums.

Financial highlights

• Net fee and commission income grew 10% year-over-year and 5% quarter-on-quarter, offsetting lower net interest income.

• Cost/income ratio was 36.9% in Q3 2025, with operating expenses up 20% year-over-year due to higher Bank Guarantee Fund contributions.

• Mortgage production surged 111% year-over-year in Q3, with new mortgages totaling over PLN 1.3 billion.

• Loan and asset growth continued, with loans to customers up 5.1% and total assets up 7.2% year-over-year.

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

Outlook and guidance

• Expectation of further NIM decline by 10 basis points in Q4, with annual average NIM to drop 30–40 basis points next year.

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

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

• NPL ratio targeted to fall below 5% by end of next year.

• Sector faces potential challenges from proposed increases in corporate income tax rates for banks starting in 2026.