Alior Bank (ALR) investor relations material

Executive summary

• Revenue for H1 2026 reached PLN 1.37 billion, down 10% year-over-year due to a one-off CJEU-related adjustment; excluding this, revenue would be flat versus last year.

• Net profit for H1 2026 was PLN 769.8 million, down 31% year-over-year, mainly due to lower net interest income, higher credit losses, and a CJEU-driven adjustment.

• Strong growth in mortgage loans (up to 50%+), leasing (30% YoY), and deposits (9% YoY); assets increased by 7% to PLN 106 billion.

• Mobile banking and digital channels saw significant adoption, with 21% YoY growth in mobile-initiated sales, now 43% of total sales; mobile app users reached 1.84 million (+21% YoY).

• The bank maintained strong capital and liquidity positions, with a capital adequacy ratio of 17.57% and LCR at 245%.

Financial highlights

• Net interest income for H1 2026 was PLN 2,370.7 million, down 7.9% year-over-year, impacted by a PLN 153 million CJEU adjustment.

• Net fee and commission income rose 8% year-over-year to PLN 461.7 million, driven by investment fund and insurance sales.

• Cost-to-income ratio at 41.3% (up from 39.0% y/y), or 37.7% excluding the one-off.

• ROE at 11.5% (down 10.5pp y/y), or 14.3% excluding the one-off; ROA at 1.5%.

• NPL ratio improved to 5.16% (down from 6.69% y/y), with cost of risk at 0.71–0.74%.

Outlook and guidance

• Risk costs are expected to remain below 0.8% assuming no major macroeconomic changes.

• NIM expected to remain above 5% in coming quarters.

• Operating cost growth for 2026 (excluding BFG) is projected not to exceed inflation.

• Continued focus on margin-driven growth, especially in consumer and mortgage loans.

• The bank aims to reduce the NPL ratio below 5% by end-2026.