Poland's Alior Bank plans first-ever dividend after record-high annual profit

Alior Bank SA

28/02/2024 07:03

GDANSK, Feb 28 (Reuters) - Polish lender Alior Bank
 ALRR.WA  said on Wednesday it planned to earmark 570 million
zlotys ($143.29 million) for its first-ever dividend payout,
after its annual net profit nearly tripled.
    Alior has not paid a dividend since its market debut in late
2012, but it had previously said that it aimed "to be able" to
pay dividends in 2023 and 2024.
    The net profit surged to 2.03 billion zlotys for the full
year ended Dec. 31, from 683.1 million a year earlier.
    The profits generated in the last year and high level of
capital surplus underpin the first-ever dividend payout, Alior
said in its earnings presentation.
    The jump in the bottom line was boosted by high net interest
rates and lower provisions for expected credit losses.
    Net interest income jumped 34% to 4.77 billion zlotys,
supported by interest rate hikes and lower provisions.
    In 2023, Alior Bank reserved over 625 million zlotys for
expected credit losses versus nearly 950 million a year earlier.
    The yearly costs of risk (CoR) dropped to 98 basis points
(bps) from 151 bps in the previous year, following sale of
non-performing loans, and dissolution of some provisions. The
lender said it expected the CoR to settle at around 1% in 2024.
    Alior said pressure from Poland's mortgage payment moratoria
scheme had been dissipating, with total related costs of 500
million zlotys in 2022 and 2023.
    However, the country's previous government proposed
extending the scheme for 2024, introducing specific criteria,
with the new government preparing the bill which would probably
come into force at the beginning of April.
    Alior Bank has estimated that the cost of a possible
extension to the scheme would be around 200 million zlotys.

($1 = 3.9779 zlotys)
    

 (Reporting by Mateusz Rabiega; Editing by Rashmi Aich)
 ((Mateusz.Rabiega@thomsonreuters.com; +48 58 769 67 57;))