Poland's Alior Bank Q2 Profit Climbs on Falling Cost of Risk

Poland's Alior Bank Q2 profit increases due to a decline in the cost of risk. The bank's net interest income rose by 15.5%, while its operating expenses decreased by 3.3%. Alior Bank's net profit increased by 29.9% to 2.13 billion zlotys ($520 million) in Q2, beating analysts' expectations.

Alior Bank, a leading financial institution in Poland, reported a significant increase in its Q2 2025 profit, driven by a decline in the cost of risk and improved net interest income. The bank's net profit increased by 29.9% to 2.13 billion zlotys ($520 million), surpassing analysts' expectations [1].

Key highlights from the Q2 results include:
- Net Interest Income: Net interest income rose by 15.5%, reflecting the bank's ability to manage its interest rate environment effectively.
- Operating Expenses: Operating expenses decreased by 3.3%, contributing to the overall profit improvement.
- Credit Quality: The cost of risk improved to 1.14%, down by 7 basis points, indicating a strengthening of the bank's diversified balance sheet and low unemployment levels across its markets.

The bank's transformation towards a simpler, more digital, and integrated model has significantly impacted its operational efficiency. The efficiency ratio improved to 41.5%, the best level in over 15 years, further enhancing profitability [1].

Alior Bank's Q2 performance underscores its resilience and adaptability in a challenging financial environment. The bank's focus on cost management and digital transformation has positioned it well for future growth. Investors and financial professionals should closely monitor Alior Bank's ongoing initiatives to capitalize on these trends.

References:
[1] https://www.santander.com/en/press-room/press-releases/2025/07/q2-2025-santander-bank-results