Alior Bank Q1 profit surges 58% as it aims to keep CoR at bay

By Jerry  Published On April 25, 2024
GDANSK, April 25 (Reuters) – Poland’s Alior Bank (ALRR.WA), opens new tab reported on Thursday a 58% yearly rise in net profit to 578.1 million zlotys ($142.9 million) on interest revenues from hedging instruments, growth of credit portfolio and securities.
Net interest income rose 15% to 1.27 billion zlotys and net interest margin climbed 15 basis points to 5.96%, Alior said.
The lender managed to improve its credit portfolio quality and increase its size. Its quarterly sales of mortgage loans more than quadrupled to 1.64 billion zlotys, supported by 1.2 billion zlotys from the Safe 2% Credit scheme.
At the same time, its quarterly cost of risk (CoR) came in at 0.68% compared with 1.61% in the year-ago quarter, while the provisions for expected credit losses declined 55% to a little over 111 million zlotys.
The bank said it expected to keep annual CoR below 1%, as it did not see any risks that could hike its loan loss provisions so far.
It also estimates that it will achieve a non-performing loans ratio (NPL) below 7% in 2024, and expects a further drop below 5% to be possible within a two-year horizon, deputy chief executive officer Tomasz Miklas said on conference call.
Source: REUTER

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