Poland's Alior Bank Q2 profit climbs, helped by falling cost of risk
06/08/2025 06:22
GDANSK, Aug 6 (Reuters) - Poland's Alior Bank ALRR.WA posted a 9.3% rise in its second-quarter net profit on Wednesday, as a lower cost of risk, positive trading result and a solid core income offset a jump in legal provisions for foreign currency loans. It reported a quarterly profit of 640.2 million zlotys ($173.2 million), above analysts' average forecast of 561 million zlotys in a Reuters poll. WHY IT'S IMPORTANT Alior is one of the two Polish lenders partially owned by state-run insurer PZU PZU.WA, which in early June announced plans to merge with Bank Pekao PEO.WA. It aims to complete the tie-up, valued at more than 100 billion zlotys, by June 2026. As part of that process, PZU and Pekao are developing a strategy for PZU's 32% stake in Alior, although they have yet to announce a final decision on its future role. CONTEXT Like other Polish lenders, Alior is burdened by lawsuits over Swiss franc mortgages, popular in the 2000s, which were taken out before a surge in the franc's value inflated repayments. BY THE NUMBERS Alior's quarterly net interest income rose 3.6% on the year to 1.29 billion zlotys, aided by an increase in its loan portfolio. The result slightly missed a market forecast of 1.30 billion zlotys. Net fee and commission income rose 2.6% to 222.3 million zlotys in the same period, versus a forecast of 213 million, driven by higher income from card services and brokerage fees. ($1 = 3.6956 zlotys) (Reporting by Rafal Nowak, editing by Milla Nissi-Prussak) ((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))