Alior Bank sees yearly cost of risk below 1% as Q1 profit jumps 58%

Alior Bank SA

25/04/2024 07:11

GDANSK, April 25 (Reuters) - Poland's Alior Bank
 ALRR.WA  expects to keep annual costs of risk below 1%, the
lender said on Thursday, as it reported a 58% rise in
first-quarter net profit on interest revenues from hedging
instruments, growth of credit portfolio and securities.
    The bank's quarterly CoR came at 0.68% as it continued with
improvement of its credit risk management, resulting in its
non-performing loans ratio further declining to 7.65%.
    The CoR was a 1.61% in the year-ago quarter, while the NPL
ratio was at 9.80%, just below the lender's strategy goal of
10%.
    Alior Bank said it does not currently see any risks that
could hinder its CoR level.
    It reported a net profit of 578.1 million zlotys ($142.9
million) for the first-quarter. Net interest income rose 15% to
1.27 billion zlotys and net interest margin climbed 15 basis
points to 5.96%.
    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.
    Last year's record-high annual profit saw Alior Bank
planning first-ever dividend payout for which the lender had
earmarked 570 million zlotys.

($1 = 4.0465 zlotys)

 (Reporting by Mateusz Rabiega; Editing by Varun H K)
 ((Mateusz.Rabiega@thomsonreuters.com; +48 58 769 67 57;))