Alior Bank lender wants to change revenue structure; plans to refresh branch network

In its 2025-2027 strategy presented on Tuesday, Alior plans to increase its active customer base and volumes by 30 percent and grow revenues by 15 percent by 2027, and this despite the expected decline in interest rates.

"Our revenues, despite falling interest rates, should grow by 15 percent, thanks to the increase in scale. In addition, the revenue structure will be significantly improved so that the income statement is less exposed to cyclicality. We are planning an increase of 38 percent in the area of non-interest income, including insurance," Alior's CEO Piotr Zabski told the conference.

In the retail segment, the bank assumed a 14 percent increase in revenue. The bank plans to review its physical network and refresh its branch format and processes. Alior has assumed that by 2027 the number of its customers in the retail segment will grow to 2.1 million and in the business segment to 173,000.

"We want all of our own branches and most of our partner branches to be in new, refreshed formats by 2027," said the bank's deputy CEO Jacek Iljin.

At the end of 2024, the bank had 516 branches, against 530 at the end of 2023.

In its targets for the end of 2027, the bank has set a target of allocating more than 50 percent of profit to dividends. Therefore, Alior plans to earmark around 50 percent of the profit generated in 2024 for dividends.

"At the end of this period, we are targeting (...) a sustainable dividend payout capacity of at least 50 percent," CEO Zabski said.

In cooperation with the PZU group, Alior wants to develop its bancassurance offering, especially unrelated and pension products. The lender pointed out that lending to a wide range of customers and real estate is an important part of the strategy, so it will propose a mortgage offer supported by digital processes and strengthen its sales competence in this area.

At the beginning of December, listed insurance group PZU published its strategy for 2025-2027, which included the simplification of the group's structure and the consolidation of banking assets. At the time, the insurer revealed its plans to sell its shares in Alior to listed lender Pekao in order to generate value for the PZU group and the other shareholders of both banks. PZU's new CEO Andrzej Klesyk announced that this strategy needed to be clarified in several aspects and announced greater clarity regarding the future of the banks in the group.

"There is no mention of a takeover anywhere, the declaration signed by the two shareholders - one current and one potential - only mentions putting their assets in order, so no transaction is on the table for the time being," Zabski stressed.

"We have our business agenda, and we are concentrating on that," he added.

Alior Bank's macroeconomic forecast assumes that the Poland's reference rate will fall to 3.5 percent in 2027.

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