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• Revenue: Exceeded PLN 6 billion, an 8% growth year on year.

• Net Profit: PLN 2.445 billion, a 20% increase from the previous year.

• Net Interest Income: Grew by 9% year on year.

• Cost of Risk (CoR): Reduced to 0.62%, down by 0.37% from the previous year.

• Non-Performing Loan (NPL) Ratio: Decreased to 6.81%.

• Net Interest Margin (NIM): Approximately 6%.

• Return on Equity (ROE): Nearly 24%.

• Cost-to-Income Ratio: Below 35%.

• Asset Growth: Increased by 4% year on year.

• Deposit Volume: Increased by 5% year on year.

• Gross Performing Loans: Increased by 3% year on year.

• Customer Growth: 65,000 new customers, a 7% increase.

• Mobile App Users: Increased by 17%, adding 189,000 users.

• Alior Leasing Portfolio: PLN 6.6 billion, a 6% growth year on year.

• Dividend Intent: Plan to pay out 50% of the profit as a dividend, pending regulatory approval.

• Warning! GuruFocus has detected 6 Warning Signs with FRA:2I5.

Release Date: March 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Alior Bank SA (WAR:ALR) reported a record financial performance in 2024, with revenues exceeding PLN 6 billion, marking an 8% year-on-year growth.

• The bank's net interest income grew by 9%, and net profit increased by 20% compared to the previous year, reaching PLN 2.445 million.

• The cost of risk significantly decreased to 0.62%, down by 0.37% from the previous year, indicating improved risk management.

• Alior Bank SA (WAR:ALR) experienced a 4% growth in assets and a 5% increase in deposit volumes year-on-year.

• The bank's capital position is strong, with a TCR of 18.27%, providing a significant surplus over the regulatory minimum, allowing for potential future growth and dividend payouts.

Negative Points

• The profitability of assets in the loan and securities segments decreased in Q4 2024, partly due to one-off events.

• The pace of growth for the lending portfolio slowed down in Q4 2024, with a reduction in net interest rate impacting net interest income.

• Operating costs are expected to rise in 2025 due to inflation and increased contributions to the BFG fund.

• There is ongoing litigation risk related to the free loan, although the bank has modified its lending offer to mitigate this risk.

• The bank's commission income only grew by 1%, indicating a need for improvement in this area to achieve stronger growth.

Q & A Highlights

Q: What level of lending does the bank expect in the mortgage segment, given that the governmental subsidy program will not be ready before Q4 2025? A: Piotr abski, President: We have seen significant growth in sales last quarter and even better growth in mortgage applications. We aim to grow in mortgages faster than the market, although this year might not be as spectacular. Mortgages are one of the three foundations for building customer relationships, and we expect growth faster than the market average.