PRESENTATION OF RESULTS FOR 1H 25
ALIOR BANK SA | AUGUST 6, 2025
1
Operating activities
2
Credit risk
3
Financial results
4
Other issues
5 Tytuł piątego działu
AGENDA
1 OPERATING ACTIVITIES
In 2Q 25, revenues amounted to PLN bn 1.52 (+6% y/y)
net interest income amounted to PLN bn 1.29 (+4% y/y)
net commission income amounted to PLN mn 222 (+3% y/y)
Alior Bank Group's net profit in 2Q 25 amounted to
The number of customers with a main relationship
was 1.64 mn (81 k more than at the end of 2Q 24)
The number of mobile app users was 1.52 mn (13% more than at the end of 2Q 24)
PLN mn 640 and was higher by PLN mn 54 (+9%) compared
to the result in 2Q 24
ROE in 2Q 25 reached 22%
Growth of the deposit portfolio
At the end of 2Q 25, the liabilities to customers were PLN bn 79.6, an increase of 8% y/y
Decrease in the cost of risk due to the recognition of profit on the sale of the NPL portfolio
Cost of risk in 2Q 25 amounted to PLN mn 34 and the CoR ratio reached 0.2%
NPL continues to decline to 6.18% - a decrease of 0.60
pp. in the last 12 months
Very strong and safe capital position
Tier 1 and TCR at 16.97%
High surplus over regulatory minimums:
for Tier 1 it's 8.46 pp. (PLN bn 4.9)
for TCR it's 6.46 pp. (PLN bn 3.8)
Increase in sales of mortgage loans
In 2Q 25, sales of real estate loans to retail customers amounted to over PLN bn 1.3 and increased by 93% y/y
At the end of 2Q 25, the portfolio of real estate loans reached PLN bn 21.6, and their share in the Bank's portfolio reached 32.3% (gross)
Dividend payment
In 2Q 25, the Bank's shareholders decided to pay a dividend from the profit for 2024 in the amount of PLN
9.19 per share. The dividend was paid on July 14, 2025
IN 2Q 25 ALIOR BANK IMPROVED ITS FINANCIAL RESULTS
Assets (PLN bn) Deposits* (PLN bn) Gross Performing Loans** (PLN bn)
+10%
2Q 24
2Q 25
90,1
99,5
+8%
2Q 24
2Q 25
73,7
79,6
+4%
2Q 24
2Q 25
60,0
62,5
C/I 2Q 25
NIM 2Q 25
ROE 2Q 25
COR 2Q 25
TCR 2Q 25
+0.4 pp. y/y
5.74%-0.08 pp. y/y
22.0%-1.9 pp. y/y
0.20%-0.03 pp. y/y
16.97%-0.56 pp. y/y
C/I 1H 25
NIM 1H 25
ROE 1H 25
COR 1H 25
NPL 2Q 25
+2.9 pp. y/y
5.77%-0.17 pp. y/y
19.84%-4.65 pp. y/y
0.47%+0.01 pp. y/y
6.18%-0.60 pp. y/y
* Liabilities to customers for 2Q 24 were adjusted for the value of Bank Securities and the value of liabilities due to the issue of debt securities (totaling PLN bn 2.17)
** Volume of gross loans classified to stages 1 and 2, without Repo/BuySellBack transactions (PLN bn 2.9 in 2Q 24 and PLN bn 0.3 in 2Q 25)
ALIOR BANK ON A PATH OF DYNAMIC GROWTHSTRONG GROWTH IN THE NUMBER OF RELATIONSHIP CUSTOMERS
RETAIL CUSTOMERS
Number of relationship customers (mn) Users of Alior Bank mobile app (mn)
+5% / +81 k
+13% / +173 k
1,62
1,60
1,56
1,58
1,64
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
1,34 1,38 1,43 1,49 1,52
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
Share of mobile app users among relationship and installment customers (%)
% of e2E sales initiated in the mobile channel (%)
+4.7 pp.
+6.5 pp.
40,8% 42,7% 43,6% 45,0% 45,5%
33,5%
35,3%
40,0%
37,5% 38,1%
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
SIGNIFICANT INCREASE IN MORTGAGE SALES
RETAIL CUSTOMERS
Balance of assets of retail customers (PLN bn)
+10%
63,4 64,1 65,8 69,9 69,9
Gross loans to retail customers (PLN bn)
+4%
6,2 6,3 6,0 6,9 5,9
7,0
6,3
40,6 40,6 41,1 41,6 42,3
1,1
4,2 0,7
4,9
0,6
5,4
0,4
15,3
0,3
14,2 13,8 15,1
15,1
37,8 38,4 38,8 41,4 41,2
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
Sale of non-mortgage loans to retail customers
(PLN bn)
+19%
1,0
0,7
0,1
0,6
0,7
1,3
1,0
0,6
0,6
0,7
1,6
1,7
2,1
2,0
2,2
1,1
1,2
1,3
1,3
1,7
3,7 3,5 3,4
20,0
20,3
20,5
20,9
21,6
20,7
20,3
20,5
20,7
20,7
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
Sale of mortgage loans to retail customers (PLN bn)
x2.1*
1,3
2,9 2,8
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
* excluding BK2% program
IMPROVEMENT IN THE STRUCTURE OF THE LOAN PORTFOLIO IN THE BUSINESS CUSTOMER SEGMENT*
BUSINESS CUSTOMER
Loan volume of Business Customers (PLN bn)
-0.3%
17,5 17,4 17,5 17,5 17,4
Loan volume of Business Customers (PLN bn) non-performing portfolio
-6%
2,8 2,8 2,8 2,7
2,6
II kw.24
III kw.24
IV kw. 24
I kw. 25
II kw. 25
II kw.24
III kw.24
IV kw. 24
I kw. 25
II kw. 25
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
+13%
Total credit limit granted (PLN bn)
2,3
2,4
2,6
2,3
1,9
Over the last four quarters, the Bank maintained a stable level of the loan portfolio in the business customer segment.
Loan sales in the second quarter were PLN bn 2.6 (+13% y/y) - the second-best sales quarter in the last 2 years.
II kw. 24
III kw.24
IV kw.24
I kw.25
II kw.25
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
* subsegments Micro/Small/Medium/Large
AN INCREASE IN DEPOSIT VOLUMES
BUSINESS CUSTOMER
+4%
Deposit volume of Business Customers (PLN bn)
Active debit cards
+7%
21,3 21,9 22,6 21,3 22,8
105,7 109,2 109,2 110,5 110,1
II kw.24
III kw.24
IV kw. 24
I kw. 25
II kw.25
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 2Q 24
I3Q 24 4Q 24 1Q 25 2Q 25
II kw 24
II kw 24
IV kw 24
I kw 25
II kw 25
We maintain stable y/y growth in the volume of
deposits and debit cards
We are increasing the number of customers with an active debit card
Continued high share of online sales in the Micro segment (+6 pp. y/y)
+6 pp.
% share of online account sales in the Micro segment
II kw.24
III kw.24
IV kw.24
I kw.25
II kw. 25
69%
72%
73%
67%
61%
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
6 577
6 624
6 411
6 435
+6%
+2%
+12%
+11%
6 785
840
819
731
704
739
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
Alior Leasing's sales in 2Q 25 amounted to PLN mn 819 and was 12% higher than in the previous year
The share of individual asset classes remains stable. In 2Q 25, 43% of sales were vehicles up to 3.5t, 35% vehicles over 3.5t, and 22% were machinery and equipment
In 2Q 25, Alior Leasing registered over 1.3 thousand vehicles over 3.5t in the used vehicle group. As a result, it took second place among leasing companies in this market segment, with a market share of 17%*
* based on SAMAR data
ALIOR LEASING'S PORTFOLIO REACHED ALMOST PLN BN 6.8 AND GREW BY 6% Y/YLease and loans portfolio (PLN mn)
Sale of leases and loans (PLN mn)
STRATEGY FOR SUSTAINABLE FINANCING OF THE ENERGY TRANSFORMATION IN THE FIRST HALF OF 2025
BUSINESS CUSTOMER
Financing energy transformation
Public support instruments
We have introduced a complex offer of loans for businesses generating energy from renewable sources: wind, sun, water, biogas
We finance investments in various formulas - energy storage and hybrid installations
In cooperation with BGK, we have introduced for:
businesses
housing communities and cooperatives
local governments
an offer for low-interest loans co-financed from EU funds for the following voivodships: Wielkopolskie, Podlaskie, Małopolskie, Zachodnio-Pomorskie, and Łódzkie
for the construction and expansion of installations related to the production of renewable energy, or
to improve energy efficiency in multi-family buildings
Cleaning up the world together
On Earth Day and out of concern for the environment, the Bank's employees from Kraków and Warsaw took part in an employee volunteering event called "The Road to Clean Up the World". These activities are part of the 32. Clean Up the World - Poland campaign, coordinated by the Our Earth Foundation. Together, Alior employees collected over 3 tons of trash and had an opportunity to integrated with their colleagues.
We support those in need
Blood buses arrived at our headquarters in Kraków
and Warsaw. As part of the next Alior Blood Donation Campaign, 39 employees of the bank donated a total of over 17.5 liters of the precious fluid.
We remove barriers
Alior Bank has introduced the Polish Sign Language (PJM) translation service to facilitate access to its services for deaf and hard of hearing people. The solution enables connection with a PJM interpreter both on the hotline and in the bank's brick-and-mortar branches.
SOCIAL RESPONSIBILITY, AWARDS RECEIVED, AND DEVELOPING ALIOR BANK'S IMAGE
We build customer engagement - a new sponsorship strategy
Completed or planned events with the Alior Bank Music Spot zone: ● Jimek Subklasyka Tour (Wrocław/Gdańsk/Szczecin) ● Kortowiada (Olsztyn) and Enea Edison (near Poznań) festivals ● Salt Wave (August, Jastarnia) and Inside Seaside (November, Gdańsk) festivals
We have been awarded and distinguished 55 times
Alior Bank was awarded a total of 55 times in nationwide competitions and industry rankings in the first half of 2025. The most important awards included: Top Employer 2025, 2nd place in the Banking Star ranking, the Golden Grand Prix in the Polish Contact Center Awards and 5 individual distinctions in the Polish National Sales Awards. The bank was also recognized in the Institution of the Year competition (6 categories), the Golden Banker plebiscite, Invest Cuffs 2025 and by the Polish Association of Developers.
2 CREDIT RISK
21,44%
21,78%
21,08%
20,51%
20,23%
20,61%
20,07%
18,45%
17,83%
17,31%
17,46%
18,27%
17,53% 17,11%
17,37%
16,76%
16,68%
16,97%
17,15%
15,36%
15,11%
16,97%
17,12%
16,78%
15,86%
TCR
CET 1 / Tier 1
MREL TREA
Regulatory ratios of Alior Bank Group Liquidity ratios: LCR, NSFR
257%
227%
202%
179%
188%
191%
177%
181%
187%
162%
148%
135%
135%
140%
143%
141%
144%
145%
147%
146%
LCR
NSFR
14,26% | 14,16% | |||||||||||||||||||
1Q 23 | 2Q 23 | 3Q 23 | 4Q 23 | 1Q 24 | 2Q 24 | 3Q 24 | 4Q 24 | 1Q 25 | 2Q 25 | 1Q 23 | 2Q 23 | 3Q 23 | 4Q 23 | 1Q 24 | 2Q 24 | 3Q 24 | 4Q 24 | 1Q 25 | 2Q 25 | |
Tier 1 and TCR ratios at the end of June 2025 significantly exceed the regulatory minimums* respectively by 846 bps. (PLN bn 4.9) and 646 bps. (PLN bn 3.8).
The consolidated MREL TREA ratio of the Alior Bank Group at the end of June 2025 was 20.07% (220 bps above the requirement**).
In 2Q 25 the Bank performed an early redemption of series M bonds (PLN mn 400, WIBOR6M +3.10% margin) and issued series R bonds (PLN mn 400, WIBOR6M +1.95% margin). In the second half of 2025 the Bank is considering issuing bonds classified as MREL with a value of approx. PLN mn 500.
* Current regulatory minimum (Tier 1 / TCR): CRR minimum (6% / 8%) + conservation buffer (2.5%) + countercyclical buffer (0.01%)
** The current MREL TREA ratio for the Alior Bank Group determined by the Bank Guarantee Fund (BFG) (consolidated, including the combined buffer requirement) is: 17.87%
STABLE AND SAFE POSITION OF THE BANK: CAPITAL AND LIQUIDITY SURPLUS WELL ABOVE REGULATORY MINIMUMS
Alior Bank Group - cost of risk (CoR%) Alior Bank Group - NPL ratio
2,39%
2,80%
1,60%
1,51%
0,98% 0,62%
0,47%
14,48%
13,16%
11,77%
9,80%
8,58%
6,81% 6,18%
2019 2020 2021 2022 2023 2024 1-2Q 25 2019 2020 2021 2022 2023 2024 2Q 25
The Bank successfully continues to transform its credit risk management strategy, which translates into significant resilience of the loan portfolio to the demanding macroeconomic environment. The cost of risk ratio (CoR%) for the first half of 2025 amounted to 0.47%, this was significantly impacted by the settlement of the NPL portfolio sale transaction for which the Bank recognized a substantial profit. The CoR% excluding profit on the NPL portfolio sale would be 0.75%.
Currently, we do not identify risks that could materially adversely affect the level of CoR%. Assuming no significant
macroeconomic changes in the coming years, we expect the Alior Bank Group's cost of risk at a level not exceeding 0.8%.
The Bank is consistently reducing the share of NPL loans in its portfolio, reaching a ratio of 6.18% at the end of June 2025, which is in line with the strategy of reducing the NPL ratio below 5% by the end of 2026.
COST OF RISK IS IN A TREND OF CONSISTENT IMPROVEMENT
Impaired loans (PLN bn) NPL reserve coverage ratio*
Cost of Risk - CoR%**
0,92%
4,32
6,78%
7,10%
6,81%
6,69%
6,18%
3,94
4,22
4,27
4,45
51,9%
51,1%
51,4%
50,0%
50,4%
0,74%
0,60%
0,23%
0,20%
00%
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
Impaired loans - segments
NPL provision coverage* - segments CoR% - segments**
58,8%
59,3%
59,3%
60,0%
59,4%
13,27%
13,65%
13,65%
13,11%
12,41%
2,52%
3,46% 3,54% 2,91% 3,06% 2,67%
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
47,6%
47,9%
49,1%
45,9%
47,2%
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
0,29%
0,15%
1,12%
0,79%
-0,60%
0,92% 0,78%
0,62%
-0,13%
*Managerial presentation
**QTD presentation
Corporate Segment
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
GRADUAL IMPROVEMENT OF THE QUALITY OF THE LOAN PORTFOLIO
3 FINANCIAL RESULTS
+51 (+2%) +84 (+6%)
In 2Q 25, revenues amounted to PLN bn 1.52
net interest income of PLN bn 1.29 (+4% y/y)
net commission income PLN mn 222 (+3% y/y)
In the first half of 2025, revenues amounted to
PLN bn 2.99
net interest income PLN bn 2.57 (+2% y/y)
net commission income PLN mn 432 (0% y/y)
Alior Bank Group's net profit in 2Q 25 amounted to PLN mn 640 and increased by PLN mn 54 compared to the result in 2Q 24
Alior Bank Group's net profit in the first half of 2025 amounted to PLN bn 1.12 and was lower by PLN mn 47 compared to the result in the first half of 2024. The decrease in the net result resulted, among others from PLN mn 45 higher costs of BFG contributions.
IH 24 IH 25
-47 (-4%)
+415 (+20%)
1 164
1 117
IH 24 IH 25
1 577
1 545
1 524
1 465
1 440
2 989
2 938
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
Net profit (PLN mn)
+54 (+9%)
666
640
615
586
476
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
INCREASE IN TOTAL REVENUE DUE TO IMPROVED NET INTEREST AND COMMISSION INCOMETotal revenue (PLN mn)
PLN mn | 2Q 24 | 1Q 25 | 2Q 25 | % y/y | y/y | % q/q | q/q | IH 24 | IH 25 | % y/y | y/y | ||
Total Income | 1 440,0 | 1 465,5 | 1 523,8 | 6% | 83,8 | 4% | 58,3 | 2 938,4 | 2 989,3 | 2% | 50,9 | ||
Net interest income | 1 244,3 | 1 284,8 | 1 289,1 | 4% | 44,9 | 0% | 4,4 | 2 513,7 | 2 573,9 | 2% | 60,3 | ||
Net fee and commission income | 216,6 | 209,3 | 222,3 | 3% | 5,7 | 6% | 13,0 | 432,6 | 431,6 | 0% | -1,1 | ||
Other income | -20,9 | -28,6 | 12,4 | - | 33,3 | -143% | 41,0 | -7,9 | -16,2 | 105% | -8,3 |
Total costs | -648,4 | -823,3 | -695,8 | 7% | -47,4 | -15% | 127,4 | -1 378,1 | -1 519,1 | 10% | -141,0 |
General administrative expenses | -513,9 | -615,8 | -549,6 | 7% | -35,7 | -11% | 66,2 | -1 059,2 | -1 165,4 | 10% | -106,2 |
Impairment of non-financial assets | -1,2 | -0,1 | -0,6 | -48% | 0,6 | 395% | -0,5 | -1,3 | -0,8 | -42% | 0,6 |
Net expected credit losses | -38,9 | -119,9 | -33,9 | -13% | 5,1 | -72% | 86,1 | -150,2 | -153,8 | 2% | -3,6 |
Cost of fx mortgage legal risk | -25,9 | -15,9 | -43,7 | 69% | -17,8 | 175% | -27,8 | -27,7 | -59,6 | 115% | -31,9 |
Banking tax | -68,5 | -71,5 | -68,1 | -1% | 0,5 | -5% | 3,4 | -139,7 | -139,6 | 0% | 0,2 |
Gross profit | 791,5 | 642,2 | 827,9 | 5% | 36,4 | 29% | 185,7 | 1 560,3 | 1 470,2 | -6% | -90,1 |
Income tax | -205,6 | -165,9 | -187,7 | -9% | 17,9 | 13% | -21,8 | -396,3 | -353,6 | -11% | 42,6 |
Net profit | 585,9 | 476,3 | 640,2 | 9% | 54,3 | 34% | 163,9 | 1 164,0 | 1 116,5 | -4% | -47,5 |
Net interest margin (NIM) | 5,82% | 5,88% | 5,74% | - -0,08 p.p. | - -0,14 p.p. | 5,94% | 5,77% | - -0,17 p.p. |
Cost of funding (CoF) | 1,91% | 1,87% | 1,74% | - -0,16 p.p. | - -0,13 p.p. | 2,04% | 1,81% | - -0,24 p.p. |
Cost of risk (CoR) | 0,23% | 0,74% | 0,20% | - -0,03 p.p. | - -0,53 p.p. | 0,46% | 0,47% | - +0,01 p.p. |
Cost / Income ratio (C/I) | 35,7% | 42,0% | 36,1% | - +0,4 p.p. | - -6 p.p. | 36,0% | 39,0% | - +2,9 p.p. |
Loan / Deposit ratio (L/D) | 84,6% | 78,5% | 78,5% | - -6,2 p.p. | - -0,1 p.p. | 84,6% | 78,5% | - -6,2 p.p. |
Return on equity (ROE) | 23,9% | 16,8% | 22,0% | - -1,9 p.p. | - +5,3 p.p. | 24,5% | 19,8% | - -4,7 p.p. |
Total Capital Ratio (TCR) | 17,53% | 17,37% | 16,97% | - -0,56 p.p. | - -0,4 p.p. | 17,53% | 16,97% | - -0,56 p.p. |
In 2Q 25, net profit amounted to PLN mn 640, which allowed the company to achieve a return on equity (ROE) of 22%
Net interest margin (NIM) in 2Q 25 amounted to 5.74%, down 8 bps. y/y - mainly due to the growing share of loans granted at a fixed interest rate, in particular
residential real estate loans
Transactions on derivatives are less and less burdensome for the Bank's net interest income. Their impact in 2Q 25 amounted to PLN mn -83, for comparison in 2Q 24, this impact amounted to PLN mn -100 and PLN mn -92 in 1Q 25
In 2Q 25 the Bank recognized PLN mn 44 of legal risk costs of mortgage loans in foreign currencies. The additional provision is related to the increase in the number of contentious cases and to changes in model assumptions, in particular a change in the assumptions regarding the target level of contentious cases
In 2Q 25 the Bank had additionally established PLN mn 18 of provisions related to disputes arising from the so-called "Free Credit Sanctions"
INCOME STATEMENT
-1%
Interest income and expenses (PLN mn)
Interest margin and financing cost*
+1%
-1%
CoF NIM NIM - CoR NIM adj. ***
859
859
3 568 3 524
417
1 745
1 857
423
424
1 808
1 770
1 754
6,22%
1 324
1 341
430
429
5,82%
6,32% 6,00% 5,88%
6,20%
5,74%
Other Interest Income
2 665
2 710
5,58% 5,40% 5,41%
1 385
1 433
5,15%
5,54%
-500
1 328
-950
-1 055
-465
-485
-496
-499
1,91% 1,88% 1,82% 1,87% 1,74%
1H 24 1H 25
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
Loan / Deposit Ratio
Net interest income (PLN mn)
+2%/-1%***
+4%/-3%***
2 600
86
2 574
1 330
86
1 334
1 312
+0.3%
1 285 1 289
2 514
Effect of
"credit moratoria" on interest income
1 244
1 358
-24
84,6%
82,3%
79,4%
78,5%
78,5%
1H 24 1H 25
* Managerial presentation, QTD
** Interest income from loans, debt purchased, and leasing
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
*** NIM and interest income growth adjusted for "credit moratoria" provisions in 2Q 24 of 86 mn PLN and a 24 mn PLN release of "credit moratoria" provisions in 3Q 24
NET INTEREST INCOME SUPPORTED BY LOWER FINANCING COSTS-29
-37
38
160
151
36
41
22
124
40
87
112
32
86
433 432
-1% y/y
-19% y/y
-9% y/y
+13% y/y
-6% y/y
+75% y/y
-20% y/y
Bank accounts, transfers, cash
operations (net) | 217 | 213 | ||
Bancassurance (net) | 44 | 44 | ||
20 | 19 | |||
Leasing, loans and advances | 61 | 58 |
221
209
+2% y/y
-17% y/y
-7% y/y
+25% y/y
+5% y/y
+19% y/y
-10% y/y
1H 24 1H 25
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
The decrease in net commission income on insurance sales by PLN 4 million y/y resulted from a higher level of early repayments of cash loans and, as a result, a higher level of provisions for future reimbursements of insurance costs
A decrease in net commission income in Q2 25 due to loans, advances and leases by PLN 4 million y/y resulted mainly from lower activity of corporate clients and lower revenues from the collection of overdue lease receivables
The increase in net brokerage fees by PLN 4 million y/y is mainly due to an increase in Alior TFI's revenues caused by an increase in the value of assets under
management +63% y/y to PLN 3.8 billion
The increase in net income on FX transactions by PLN 4 million y/y was mainly due to increased client activity caused by increased volatility of foreign exchange rates
* Net fee and commission income in the period from 2Q 24 to 4Q 24, accounts for the presentation change in brokerage commissions
+3%
NET FEES AND COMMISSIONS INCOMENet Fees and Commissions Income (PLN mn)*
0%
25
-18
18
-14
19
-15
79
73
75
22
19
18
57
56
58
16
16
20
41
45
44
16
-17
17
75
16
-18
19
75
+6%
222
+10%
1 059
1 165
Operating costs (PLN mn)
+7%
-% y/y
315
283
316
335
327
125
137
159
144
177
82
65
586
616
-11%
550
- % y/y
C/I ratio**
41
+111% y/y
+1% y/y
514
473
75 11
62
38,6%
42,0%
35,7%
38,8%
37,1%
37,9%
36,1%
34,3%
31,1%
+7% y/y
+14% y/y
61
+16% y/y
64
+3% y/y
650
628
266
304
125
126
86
IH 24 IH 25
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
30,0%
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
In 2Q 25, operating expenses amounted to PLN mn 550 and increased by 7% (by PLN mn 36) compared to operating expenses in 2Q 24, mainly due to an increase in general and administrative expenses by PLN mn 22 y/y and BFG costs by PLN mn 11 y/y
In 2Q 25, operating expenses adjusted for the cost of the BFG premium amounted to PLN mn 539 and increased by 5% y/y, while decreasing by 0.5% q/q.
General and administrative expenses* increased in 2Q 25 (y/y) mainly due to: higher IT costs by PLN mn 10, higher costs of building maintenance by PLN mn 6 and higher marketing costs by PLN mn 5
Stabilization of employee costs in 2Q 25 (y/y) was the result of a lower level of employment balanced by an increase in the average level of remuneration
* General management expenses include taxes and charges
** By quarter (QTD)
*** The ratio is calculated assuming a linear quarterly distribution of the contribution to the BFG compulsory restructuring fund and lack of impact on revenues in 2Q 24 due to "credit moratoria" provisions amounting to PLN
mn 86 and in 3Q 24 the release of PLN mn 24 provisions for "credit moratoria"
LOWER GROWTH OF OPERATING EXPENSES INFLUENCED BY REDUCED INFLATIONARY PRESSUREConsistent implementation of an ambitious
strategy
Market leader in Consumer Finance
A distinctive, refreshed brand
An agile business model built on modern technologies and a variety of distribution channels
Stable and predictable costs of risk due to
highly competent management
High return on equity (ROE)
Stable capital position, high surplus over regulatory requirements
Part of the PZU Group, leader in the insurance market
Dividend payment
4 OTHER ISSUES
Moderate recovery is underway… … it is accompanied by diminishing wage pressure…
15,0
10,0
5,0
0,0
- 5,0
- 10,0
GDP growth (real, %, y/y) and its structure (pp), Poland
20
15
10
5
0
-5
-10
Wages in the enterprise sector, Poland
konsumpcja GD
spożycie publiczne
inwestycje
Przeciętne wynagrodzenie (nominalne, %, r/r)
Przeciętne wynagrodzenie (realnie, %, r/r)
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
2Q25
May-07 May-09 May-11 May-13 May-15 May-17 May-19 May-21 May-23 May-25
household consumption
public spending
investments
zapasy
inventory
net export
GDP
Average wage (nominal, %, y/y) Average wage (real, %, y/y)
eksport netto
PKB
… which, alongside lower inflation, allows for interest rate cuts
CPI (%, y/y) and NBP base rate (%), Poland
20
8
6
4
2
0
8
6
4
2
0
5,25
1
1
1
1
1
stopa NBP (%)
Inflacja bazowa (%, r/r)
Inflacja CPI (%, r/r)
Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 NBP rate (%) Core inflation (%, y/y) CPI (%, y/y)
Source: GUS, NBP, Bloomberg, own analysis DAM Alior
In the first half of 2025, the economic recovery in Poland slightly accelerated. According to our estimates, the average GDP growth rate in the first half of 2025 was 3.3% y/y vs. 3.1% y/y in the second half of 2024.
The economic landscape is driven by domestic consumption, among others. In addition, in 2025 there was a recovery in investment demand, which, however, is somewhat disappointing in terms of pace and structure, as it is largely supported by public investments, including military spending. The utilization of EU funds is slowly accelerating. Exports are still the weaker link.
Slowly, the domestic industry is coming out of a calmer period, driven by broader demand and reacting to signals of German industry coming out of crisis.
In 2Q 25 positive inflationary surprises continued, which paved the way for the first NBP interest rate cut since autumn 2023. The MPC decided in May this year that rates could be reduced by 50 bps. In July, the rates were further reduced (by 25 bps).
In the labor market, we are observing a slight easing and simultaneous slowdown in wage growth,
which is already clearly in the single-digit range, after three years of double-digit growth.
THE POLISH CENTRAL BANK FLIPS ITS POLICY UNDER FAVORABLE INFLATION PROSPECTSTariff wars have worsened the economic outlook However, the de-escalation of trade tensions has diminished
recessionary threats
4,5
4,0
3,5
3,0
2,5
2,0
1,5
1,0
0,5
0,0
Consensus GDP forecast for 4Q 25 (%, y/y
58PMI Composite
56
54
52
50
48
46
44
Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25
strefa euro
Chiny
strefa euro
Chiny
Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25
USA
Eurozone
ChinaUSA
Eurozone China
In an uncertain environment the Fed ceased rate cuts
6,0
5,0
4,0
3,0
2,0
1,0
0,0
-1,0
Interest rates in the USA and Eurozone
During 2Q 25, the U.S. customs disputes with its trading partners first escalated and then deescalate.
Particularly important for the outlook for the global economy was the significant easing of tensions between Washington and Beijing and the signing of trade agreements, which removed the risk of significant supply disruption.
Extremely negative scenarios, including the risk of a recession in the US, have recede.
Nevertheless, the U.S. trade policy is still in the process of being restructured and its final form is uncertain. Negotiations with many partners, including the EU, are still ongoing. This creates increased uncertainty about the economic outlook, indirectly also for Poland.
So far, there are many indications that the US economy will bear the greatest costs of the wars.
Jul-01 Jul-04 Jul-07 Jul-10 Jul-13 Jul-16 Jul-19 Jul-22 Jul-25
Stopa Fed (górny przedział)
Stopa depozytowa EBC
Fed rate (upper bound) EBC deposit rate
Source: Bloomberg, own analysis DAM Alior
At the same time, the risk of inflation growth resulting from higher tariffs in the U.S. prevents the Fed from deciding to support the economy with interest rate cuts. The ECB has already cut rates by 200 bps in the current cycle, and the Fed by only 100 bps.
NO MATERIALIZATION OF EXTREME SCENARIOS IN INTERNATIONAL TRADEGDP growth with main components, Poland
6,9
5,3
2,9
,7
3,6
,2
-2,0
3
0
15
10
5
0
-5
2020 2021 2022 2023 2024 2025P 2026P
Inwestycje (realnie, %, r/r)
Konsumpcja prywatna (realnie, %, r/r)
Investments (real, %, y/y)Private consumption (real, %, y/y)CPI and interest rates, Poland
16
5,75
4,75
3,75
2,9
0,10
3,6
1,75
5,75
6,75
14
12
10
8
6
4
2
0
2020 2021 2022 2023 2024 2025P 2026P
PKB (realnie, %, r/r)
Inflacja CPI - średnio (%, r/r)
Stopa bazowa NBP - koniec okresu (%)
GDP (real, %, y/y)
Economic indicators
2024 2025P 2026P
2023
3.6
5.3
3.3
2.9
5.0
3.75
3.7
9.2
3.8
3.6
5.1
4.75
The economic recovery in Poland will accelerate in the second half of 2025. Throughout 2025, we expect GDP to grow by 3.7% y/y, and in the second half of 2025 by nearly 4% y/y compared to approx. 3.3% y/y in the first half of 2025.
GDP (real, %, y/y) 0.2 2.9
Investments (real, %, y/y) 12.7 -2.2
Private consumption (real, %, y/y) -0.3 3.1
CPI (average, %, y/y) 11.4 3.6
Unemployment rate (average, %) 5.2 5.1
NBP base rate (EoP, %) 5.75 5.75
Private consumption growth will be stronger (3.8% YoY in 2025 as a whole vs. 3.1% YoY in 2024), supported in the second half of the year by the expected improvement in household sentiment in an environment of clearly cooled inflation and with a still relatively good situation on the labor market
In the second half of the year, investments should also clearly accelerate. Those financed from EU funds have been developing slowly so far, but will eventually accelerate. For the whole of 2025, we expect an increase of 9.2% y/y
Banking sector (volumes, %, y/y) • The labor market will remain 'tight', with the unemployment rate remaining close to historical lows.
5.1
6.5
7.5
7.1
8.2
6.1
7.2
6.8
7.7
7.4
Total loans
Residential mortgages (PLN) Consumer
Corporate Total deposits
-1.1
2.2
2.1
-0.7
10.5
3.5
8.4
5.7
4.9
7.9
Nevertheless, nominal wage growth will normalize, although it will remain at slightly elevated levels in historical terms (8.6% YoY)
Inflation in the second half of the year will be within the NBP inflation target (2.5% +/- 1 pp). The MPC will continue to reduce interest rates due to the slowdown in price pressure, but rather cautiously, in the face of a tight labor market and an accelerating recovery in demand. We expect rate cuts by an additional 25-50 bps. by the end of 2025.
Source: GUS, NBP, own analysis DAM Alior
Interest rate cuts and economic recovery should support the recovery in lending. We expect a CAGR of 2025-2026 for loans of 5.6% and deposits of 7.8%
PROSPECTS FOR ACCELERATION OF RECOVERYInvestments in the foreground
Further cautious monetary easing awaits us
Alior Bank's Brokerage House
In 2Q 25, the Brokerage House's net commission income was significantly higher (+25%) than in the previous year and reached nearly PLN mn 22. Particularly high growth was achieved in FIO assets, Individual Advisory, and the number of new IKE/IKZE accounts.
Basic operating information:
The number of brokerage accounts amounted to 95.0 k (+3.1% y/y)
The number of IKE/IKZE accounts increased to 11.5 k (+28% y/y)
The number of Alior Trader accounts exceeded 8.4 k (+4.7% y/y)
Alior TFI
In 2Q 25 Alior TFI maintained positive inflows to funds under its management. At the end of June 2025, TFI had assets of PLN bn
3.81. In 2Q 25, net inflows to funds amounted to PLN mn 163. The largest inflows were recorded in funds with a relatively low risk profile, especially the Ostrożny Obligacji Uniwersalnych fund.
Over the last 12 months, the growth rate of Alior TFI's AuM has been more than twice the market growth. In Q2 25 alone Alior TFI's assets grew 6%, similar to the market, which grew 8% during this time.
Assets in Individual Advisory PLN bn 2.3 (+40% y/y)
Sales of Investment Funds YTD (gross) PLN bn 6.3 (+53% y/y)
Sales of Structured Products YTD (gross) PLN mn 170 (-58% y/y)
Brokerage House Net Fees and Commissions (PLN mn)
Assets under management in Alior TFI open funds (PLN bn)
+63% y/y
+29% y/y
Assets under management in non-dedicated funds* in Poland (PLN bn)
3,22
2,83
2,34
3,59 3,81
295
+13%
+25%
35,9
40,5
21,6
19,2
17,4
17,7
18,9
228
243
253
274
1-2Q 24 1-2Q 25
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
ALIOR BANK'S INVESTMENT SERVICES
Alior Bank offers a payment ring - a functional gadget in the form of elegant jewelry that works like a payment card - all you must do is hold it up to the terminal. The ring is waterproof, does not require charging or internet connection. It can be used by Alior Bank personal account holders who order a Mastercard card for their account. Ordering a band is done online, and it can be activated and managed via the mobile app.
Alior Bank offers up to PLN 60 k gross of support for entrepreneurs opening new partner outlets - the funds can be used for arranging and equiping the premises. The program is aimed at new and existing partners, especially in cities with a population of 15 000-30 000. The bank also provides comprehensive operational support, modern tools, and a proven business model.
This summer, new customers of Alior Bank can gain up to PLN 800 in cash and up to PLN 400 in prizes as part of the "Bank with Alior Konto account" or "Bank with Konto Jakże Osobowe account" promotion, combined with the "Priceless Start" offer. To take advantage of it, all you need to do is open an account with a card by October 31, 2025, register for the promotion in the mobile app and meet easy activity conditions - like pay by card, log in to the app, and top up your account. In addition, new customers can open a "Starting Deposit" with an interest rate of 7% per annum.
In the "Join and Take What's Yours" promotion, new participants of the Mastercard Priceless Moments program could earn 8 000 welcome points. All you had to do was register your Alior Bank debit or credit card in the program and pay with it at least 100 PLN. The collected points could be exchanged for prizes, such as vouchers to Circle K.
AN OFFER CLOSE TO OUR CUSTOMERS
26 921
24 766
24 706
40 639
41 565
42 285
-1%
+1%
67 560
66 331
66 991
60% 61% 62% 63% 63%
40% 39% 38% 37% 37%
2Q 24 1Q 25 2Q 25
Retail Customer Segment (PLN mn)
2Q 24 3Q 24 4Q 24 1Q 25 2Q 25
Business Customer Segment* (PLN mn)
-8%/+2%**
20 665
20 658
20 660
19 979
40 639
+4%
41 565
+2%
42 285
21 620
20 907
26 921
2 901
284
433
4 476
4 654
2 441
2 495
5 083
3 098
2 947
2 540
2 638
7 621
7 613
7 348
6 785
6 624
6 411
24 766
0%/+1%**
24 767
2Q 24 1Q 25 2Q 25
2Q 24 1Q 25 2Q 25
* Managerial presentation ** without Reverse Repo / BSB transactions
GROSS STRUCTURE OF THE LOAN PORTFOLIOLoan portfolio in total (PLN mn)
Loan portfolio structure in total