Profil:
Alior Bank SAAlior Bank hopes for interest income to improve; assets may exceed PLN 100 bln in Q4 2025
Despite falling interest rates, listed lender Alior Bank is counting on an improvement in its interest income in the last quarter of the year, but believes that it will be difficult to repeat the result achieved in the third quarter, bank representatives told a press conference following the release of Alior's financial results. According to the management, exceeding PLN 100 billion (EUR 23.6 mln) in assets is a prospect for the next 1-2 quarters,
Alior announced that its interest income in the third quarter amounted to PLN 1,296.1 million (EUR 305.9 mln), an increase of 0.5 percent on a quarterly basis.
"We have stabilised our interest income, which means that it will remain at a comparable level for the time being, and we assume that it will only improve, i.e. grow, in the coming quarters," deputy CEO Zdzislaw Wojtera told the conference.
In the third quarter of 2025, lender's net provisioning reached PLN 233.9 million (EUR 55.2 mln), up by 7 percent year on year and by 5.2 percent quarter on quarter.
"I think it may be difficult for us to repeat this PLN 234 million, we should be between the second and third quarters [in terms of net provisioning result - MI ed.]," Alior's deputy CEO assessed.
"If we were to repeat this result, we would be at PLN 900 million on an annual basis – it will be difficult to achieve, we may be a few million short, but it will be a very solid result," he added.
After the three quarters of 2025, the bank's assets stand at PLN 97.7 billion (EUR 23.1 bln), a year-on-year increase of 7 percent.
"I would not rule out that the PLN 100 billion mark may be exceeded even in the fourth quarter, which we would very much like to see. The fourth quarter [of 2025] or first quarter [of 2026] - it will definitely happen," said Wojtera.
In the third quarter, Alior's risk cost ratio was 0.72 percent (down 0.2 percentage points year on year), and NPLs reached 6.29 percent, which represents a decrease of 0.81 percentage points over the last 12 months.
"The recognition of a default by one large customer in the mining and metallurgical industry had a significant impact on both the NPL level and the level of write-offs in the business customer segment. However, this is a one-off event. We do not anticipate such significant defaults in subsequent periods," said bank's deputy CEO Marcin Ciszewski.
"Excluding this default, we can say that the cost of risk has stabilised within the range assumed in the strategy, i.e. we continue to record a normalised cost of risk below 0.8 percent, and we uphold [our view] that the level of risk will remain at this level in subsequent periods," he added.
In the third quarter of 2025, the bank recognised PLN 41 million (EUR 9.7 mln) in legal risk costs for foreign currency mortgage loans. Alior reported that the additional provision is related to an increase in the number of disputes and changes in model assumptions, in particular a change in assumptions regarding the target level of disputes. The bank has also established a PLN 19 million (EUR 4.5 mln) provision related to disputes arising from the so-called 'Free credit sanction'.
seb/ ao/
