This article first appeared on GuruFocus .
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Revenue:PLN 1.5 billion, a 2% growth year-on-year.
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Net Profit:PLN 403 million, a 15% decrease due to corporate income tax.
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Return on Equity (ROE):13.8%.
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Cost-to-Income Ratio:37.8%.
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Non-Performing Loans (NPLs):5.39%, with a strategic goal to reduce below 5% by year-end.
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Deposit Growth:9% year-on-year.
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Loan Sales:Mortgage loans increased by 84% to PLN 1.8 billion.
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Assets:Nearly PLN 105 billion, with an 8% growth.
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Interest Margin:Decreased from 588 to 519 basis points.
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Tier 1 Capital Ratio:21.60%.
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Liquidity Coverage Ratio (LCR):226%.
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Net Stable Funding Ratio (NSFR):152%.
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Dividend:Recommended payment of 50% at PLN 8.93 per share.
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Mobile App User Growth:19% increase.
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Leasing Sales Growth:27% year-on-year.
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Release Date: April 27, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Alior Bank SA ( FRA:A6O ) reported a 2% year-on-year growth in revenues, reaching PLN1.5 billion, despite lower interest rates.
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The bank achieved a 9% year-on-year growth in its deposit portfolio, indicating strong customer trust and financial stability.
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Alior Bank SA ( FRA:A6O ) received an investment rating from S&P, which is crucial for its upcoming bond issuance in the euro market.
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The bank's mobile app saw a 90% growth in user numbers, reflecting successful digital transformation efforts.
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Alior Leasing, a sister company, experienced a 27% year-on-year increase in sales, outperforming the market average.
Negative Points
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Net profit dropped by 15% to PLN403 million, primarily due to corporate income tax impacts.
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The cost of risk increased slightly, with a COR of 0.67%, reflecting challenges in managing credit risk.
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There was a decrease in non-mortgage loan performance, attributed to delays in business partner negotiations.
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The bank's net interest margin decreased from 588 to 519 basis points, impacted by lower reference interest rates and a shift towards mortgage loans.
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Legal risks related to foreign currency loans resulted in a PLN37 million provision, affecting financial stability.
Q & A Highlights
Q: In the first-quarter, was there a reserve for the legal risk related to SKD, and if yes, what was the amount of the reserve? A: In the first-quarter, we did not set up a reserve fund for that. We simply decreased it due to a higher success rate in litigation.
Q: What about the MRL at the end of the first-quarter 2026? A: At the capital group level, we received 11.5%.
Q: Does the Board see any impact of relation customers on provision results, and what is the outlook for the commission result for 2026? A: Yes, we see an impact. The relationship with customers leads to better banking engagement and product usage. Our aim is to increase the commission result by 4%, and we are on a good track with a growth trend.
Q: What was the WFD result at the end of the first-quarter? A: 44.7%.
Q: What is your assessment of the ECJ ruling about the power loan results? A: The ECJ ruled that banks can provide credit for commission but cannot receive interest from it. However, potential losses from not taking interest on commission can be offset by higher interest rates. We are analyzing the implications of this fresh ruling.
Q: What part of contracts contains the cost of commission of insurance? A: As far as new sales are concerned, we're talking about a marginal level of value. We are analyzing this issue as it is fresh, and it's too early to provide definitive figures.
Q: The rise of MSP volumes was mentioned as up by 11% year-on-year, but slide 13 shows a drop by 16% year-on-year. Can you clarify? A: The drop is in the micro companies, but in other segments, we are growing. The working portfolio generates stable growth, while the total portfolio includes nonperforming loans.
Q: Can the ECJ ruling about SKG impact the bank's reserve levels? A: This ruling did not refer to SKD. It was about the right of the bank to obtain interest on the cost of credit like commission. The ECJ said it can be compensated by a higher level of interest, so this is not an SKD case.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
