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

Alior Bank SA

28/02/2024 08:20

(Adds comments from analysts in paragraphs 2,8, share move in
paragraph 3)
       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.
    "DPS (dividend per share) may reach 4.4 zlotys, which would
imply a dividend yield of 5% (...) overall, we expect a positive
market reaction", Erste Group analyst Lukasz Janczak said.
    Alior Bank shares opened 1.1% higher at market opening,
rising to 2.6% at 0803 GMT.
    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.
    Annual net profit, boosted by high net interest rates and
lower provisions for expected credit losses, surged to 2.03
billion zlotys from 683.1 million in 2022.
    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 yearly costs of risk (CoR) dropped to 98 basis points
(bps) from 151 bps in the previous year, after sale of
non-performing loans, and dissolution of some provisions. The
expected CoR is seen to settle at around 1% in 2024.
    "In a scenario of stable interest rates, in 2024 and costs
of risk at 1%, the bank's annual net profit could grow to about
2.2 billion zlotys," said Trigon analyst Maciej Marcinowski.
    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 that could come into
force from April 1.
    Alior Bank estimated that the cost of an 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;))