Half Year 2026 Alior Bank SA Earnings Call
Dominik Prokop: Is Dominik Prokop from the Investor Relations Department. Welcome to the results conference where we discuss the results after H1 2026. In H1 of our meeting, there will be a presentation. We will discuss bank results and the trends which we envisage. We will hear from Piotr Żabski, the President of the bank, will talk about the business side. Zdzisław Wojtera, who will tell us about the financial side, and Marcin Ciszewski will talk about risk. After this first part, we will swiftly move on to a Q&A session. Everyone is invited to ask questions already during the first part, which will allow us to fluidly move to the Q&A session. I hand over to the President. Good morning, everyone. Welcome at our results conference discussing H1 2026.
Dominik Prokop: Is Dominik Prokop from the Investor Relations Department. Welcome to the results conference where we discuss the results after H1 2026. In H1 of our meeting, there will be a presentation. We will discuss bank results and the trends which we envisage. We will hear from Piotr Żabski, the President of the bank, will talk about the business side. Zdzisław Wojtera, who will tell us about the financial side, and Marcin Ciszewski will talk about risk. After this first part, we will swiftly move on to a Q&A session. Everyone is invited to ask questions already during the first part, which will allow us to fluidly move to the Q&A session. I hand over to the President. Good morning, everyone. Welcome at our results conference discussing H1 2026.
Speaker #1: Dominic Prokop from the Investor Relations Department. Welcome to the results conference, where we discuss the results after the first half of 2026. In the first half of our meeting, there will be a presentation; we will discuss bank results and the trends we envisage. We will hear from Piotr Żapski, the President of the bank.
Speaker #1: We'll talk about the business side. Zdzisław Wojterak will tell us about the financial side, and Marcin Ciszewski will talk about risk. After this first part, we will swiftly move on to a Q&A session.
Speaker #1: Everyone is invited to ask questions. Already, during the first part—which will allow us to fluidly move to the Q&A session—I hand over to the President.
Speaker #1: Good morning, everyone. Welcome to our results conference, discussing the second half. The first half of 2026—let me firstly look at business results, and then we'll move on to risk and finance.
Piotr Żabski: Let me firstly look at business results, then we'll move on to risk and finance according to our agenda. Beginning with the heart of the matter, we've had a good quarter and a good H1, PLN 1.37 billion in revenue, which is 10% less than a comparable quarter of the previous year. The result includes the result of CJEU. If we didn't have that one-off, we would be on the same level as the previous year, which with lower interest rates, shows that our business activity brings good results. PLN 367 million in profit, which includes the one-off that I mentioned above. Without that one-off event, we would have $433 million in profit, which is 20% less than in the previous result, which would be the result of the CIT tax. The slide shows the C/I at 43A.
Piotr Żabski: Let me firstly look at business results, then we'll move on to risk and finance according to our agenda. Beginning with the heart of the matter, we've had a good quarter and a good H1, PLN 1.37 billion in revenue, which is 10% less than a comparable quarter of the previous year. The result includes the result of CJEU. If we didn't have that one-off, we would be on the same level as the previous year, which with lower interest rates, shows that our business activity brings good results. PLN 367 million in profit, which includes the one-off that I mentioned above. Without that one-off event, we would have $433 million in profit, which is 20% less than in the previous result, which would be the result of the CIT tax. The slide shows the C/I at 43A.
Speaker #1: According to our agenda, beginning with the heart of the matter, we've had a good quarter—and a good first half. PLN 1.37 billion in revenue, which is 10% less than the comparable quarter of the previous year.
Speaker #1: But the results include the outcome of the CJEU. If we didn't have that one-off, we would be at the same level as the previous year, which—considering lower interest rates—shows that our business activity brings good results.
Speaker #1: 367 million zlotys in profit, which includes the one-off that I mentioned above. Without that one-off event, we would have 433 million zlotys in profit, which is 20% less than the previous result.
Speaker #1: Which would be the result of the CIT tax. We would have 37.7. Without that, so that's a very good result. NPL is close to our strategic goal, similarly with the cost of risk.
Piotr Żabski: We would have 37.7 without that's a very good result. The NPL is close to our strategic goal. Similarly, with the cost of risk according to our assumption, 17.5% is the capital ratio, which allows us for good results. Very high ROE, which if we take the CJEU out, we have a very good result. Very high level of NIM. We're still the kind of a player which has a high level of margin in the market, and that's what we want to maintain. On the right-hand side, you can see some strategic perspective. We have three pillars of our growth, high resilience, and operational excellence. Our activity in these pillars is quite strong. We've had a good quarter, above 50% growth in the mortgage, 12% in total sales. We have a growing group of customers, 6% of relational customers. Customers are banking in the mobile app.
Piotr Żabski: We would have 37.7 without that's a very good result. The NPL is close to our strategic goal. Similarly, with the cost of risk according to our assumption, 17.5% is the capital ratio, which allows us for good results. Very high ROE, which if we take the CJEU out, we have a very good result. Very high level of NIM. We're still the kind of a player which has a high level of margin in the market, and that's what we want to maintain. On the right-hand side, you can see some strategic perspective. We have three pillars of our growth, high resilience, and operational excellence. Our activity in these pillars is quite strong. We've had a good quarter, above 50% growth in the mortgage, 12% in total sales. We have a growing group of customers, 6% of relational customers. Customers are banking in the mobile app.
Speaker #1: According to our assumption, 17.5% is the capital ratio, which allows us for good results—very high. RORs which, if we take the CJEU out, we have a very good result.
Speaker #1: And with a very high level of NIM, we're still the kind of player which has a high level of margin in the market, and that's what we want to maintain.
Speaker #1: On the right-hand side, you can see some strategic perspective. We have three pillars of our growth: high resilience and operational excellence. Our activity in these pillars is quite strong. We've had a good quarter, with above 50% growth in mortgage loans.
Speaker #1: 12% in total. Sales: we have a growing group of customers, 6% are relational customers. Customers are banking in the mobile app; we launched the mobile app and we see considerable growth there, above 20%.
Piotr Żabski: We launched the mobile app. We see considerable growth, above 20% growth. As for leasing, the activity is very vigorous and has brought us a 30% growth year on year, which is twice what would be the market situation. A very good issue, PLN 18 million at a good margin price, 1.6. Also we are happy about the situation with cost. A mere 2% rise as regards cost. Our cost discipline allows us to be very efficient in this regard. We're managing our income statement very well in this regard. As for the dividend, we paid it out at the level of PLN 1.1 billion. A glance at the business side of our activities. Assets grew by 7%. The assets in total are PLN 106 billion were performing loans. PLN 6 billion deposits grew by 9%.
Piotr Żabski: We launched the mobile app. We see considerable growth, above 20% growth. As for leasing, the activity is very vigorous and has brought us a 30% growth year on year, which is twice what would be the market situation. A very good issue, PLN 18 million at a good margin price, 1.6. Also we are happy about the situation with cost. A mere 2% rise as regards cost. Our cost discipline allows us to be very efficient in this regard. We're managing our income statement very well in this regard. As for the dividend, we paid it out at the level of PLN 1.1 billion. A glance at the business side of our activities. Assets grew by 7%. The assets in total are PLN 106 billion were performing loans. PLN 6 billion deposits grew by 9%.
Speaker #1: Growth, as for leasing, the activity is very vigorous and has brought us a 30% growth year on year, which is twice what would be the market situation. A very good issue: 80 million zlotys at a good margin price, 1.6.
Speaker #1: And also, we're happy about the situation in the cost—a mere 2% rise as regards cost. Our cost discipline allows us to be very efficient.
Speaker #1: In this regard, we're managing our income statement very well. In this regard, as for the dividend, we paid it out at the level of PLN 1.1 billion. A glance at the business side of our activities: assets grew by 7%; assets in total are PLN 106 billion. Working performing loans are PLN 6 billion. Deposits grew by 9%. Some additional ratios: as for the share of credits in assets, it's about 60%.
Piotr Żabski: Some additional ratios as for the share of credits and assets, this is about 65%. We are focusing on loans rather than issues of bonds, as in some other parts of the business. As for the share of mortgage loans in total loans also grows, it is 35% now. Non-performing loans is on the down track. As for deposits in retail, we have 14% growth. 31% growth of assets under management of the TFI, the investment fund of the bank. We're catching the customers who moved from the deposit side to the investment funds. As for the operational activities, two perspectives there, the business customer and the retail customer. First, the retail customers, and let's talk about mortgage loans, an almost 50% growth there. As for non-mortgage loans, there is a steady level, slight decrease, but the structure is changing.
Piotr Żabski: Some additional ratios as for the share of credits and assets, this is about 65%. We are focusing on loans rather than issues of bonds, as in some other parts of the business. As for the share of mortgage loans in total loans also grows, it is 35% now. Non-performing loans is on the down track. As for deposits in retail, we have 14% growth. 31% growth of assets under management of the TFI, the investment fund of the bank. We're catching the customers who moved from the deposit side to the investment funds. As for the operational activities, two perspectives there, the business customer and the retail customer. First, the retail customers, and let's talk about mortgage loans, an almost 50% growth there. As for non-mortgage loans, there is a steady level, slight decrease, but the structure is changing.
Speaker #1: And we are focusing on loans rather than the issuance of bonds, as in some other parts of the business. As for the share of mortgage loans in total loans, that also grows—it is 35% now. Non-performing loans are on a downward track. As for deposits in retail, we have 14% growth, and a 31% growth in assets under management of the TFI.
Speaker #1: The investment funds of the bank. So, we're catching the customers who moved from the deposit side to the investment funds. As for the operational activities, there are two perspectives: the business customer and the retail customer.
Speaker #1: First, the retail customers—let's talk about mortgage loans. There is almost 50% growth there. As for non-mortgage loans, the level is steady, slightly decreased, but the structure is changing.
Speaker #1: As you can see, there are more cash loans being handed out now, so we're growing them more vigorously than in the consumer finance loan field.
Piotr Żabski: As you can see, there are more cash loans handed out now, so we're growing them more vigorously than in the consumer finance loan field. This is crucial because we're generating more margins there. As for the installment loans, the sales is going down because we're choosing the cooperation with partners where we generate higher margins, and we therefore gave up certain non-profitable activities. As far as the balance of loans and deposits is concerned, it grew by 7%. The structure of the balance is also changing to the benefit of the loans for real estate, which is the burgundy color. As for the balance of assets of retail customers, looks very well. We've had another very good quarter where all the constituent parts of the bar on the right-hand side are growing at the tune of 15% year-on-year.
Piotr Żabski: As you can see, there are more cash loans handed out now, so we're growing them more vigorously than in the consumer finance loan field. This is crucial because we're generating more margins there. As for the installment loans, the sales is going down because we're choosing the cooperation with partners where we generate higher margins, and we therefore gave up certain non-profitable activities. As far as the balance of loans and deposits is concerned, it grew by 7%. The structure of the balance is also changing to the benefit of the loans for real estate, which is the burgundy color. As for the balance of assets of retail customers, looks very well. We've had another very good quarter where all the constituent parts of the bar on the right-hand side are growing at the tune of 15% year-on-year.
Speaker #1: This is crucial because we're generating more margins there. As for the installment loans, sales are going down because we're choosing to cooperate with partners where we generate higher margins.
Speaker #1: And we therefore give up certain non-profitable activities. As far as the balance of loans and deposits is concerned, it grew by 7%. The structure of the balance is also changing to the benefit of loans for real estate, which is the bergen de cale.
Speaker #1: As for the balance of assets of retail customers, it looks very well. We've had another very good quarter, where all the constituent parts of the bar on the right-hand side are growing, to the tune of 15% year on year.
Speaker #1: We're also very happy about the growth in the number of customers. We are number 7 among banks, so we don't have the scale of some of the competitors ahead of us, but we've had a good result: 7% growth in relational customers, which is our internal retail ratio.
Piotr Żabski: We're also very happy about the growth in the number of customers. We are number seven in the banks, so we don't have the scale of some of the competitors ahead of us, but we've had a good result, 7% growth in the relationship customers, which is our internal retail ratio. Those who open accounts and transact are giving us 14% growth. At the bottom, you see how they are banking with us. They are banking mostly or very vigorously with the mobile app. The share of sales initiated in the mobile channel grew by 21%. That's the number of mobile app users growth and the share of sales initiated in the mobile channel grew, which now represents about 43% of the total sales by our channels. There's been a very important part of the business, which is the investment services of Alior Bank Group.
Piotr Żabski: We're also very happy about the growth in the number of customers. We are number seven in the banks, so we don't have the scale of some of the competitors ahead of us, but we've had a good result, 7% growth in the relationship customers, which is our internal retail ratio. Those who open accounts and transact are giving us 14% growth. At the bottom, you see how they are banking with us. They are banking mostly or very vigorously with the mobile app. The share of sales initiated in the mobile channel grew by 21%. That's the number of mobile app users growth and the share of sales initiated in the mobile channel grew, which now represents about 43% of the total sales by our channels. There's been a very important part of the business, which is the investment services of Alior Bank Group.
Speaker #1: Those who opened accounts and transact are giving us 14% growth. At the bottom, you see how they are banking with us. They are banking mostly, or very vigorously, with the mobile app.
Speaker #1: The share of sales initiated in the mobile channel grew by 21%. That's the number of mobile app users growing, and the share of sales initiated in the mobile channel now represents about 43% of total sales.
Speaker #1: Through our channels, there has been a very important part of the business, which is the investment services of the Alior Bank Group. The balance of customer assets is on the rise.
Piotr Żabski: The balance of customer assets is on the rise. There's been a 21% growth year-on-year in all the constituent parts of the bar that you can see. On the right-hand side, you can see the net brokerage commission of the brokerage house. We will hear more from Zdzisław about it, but let me just focus on the fact that we promised we'll be in the second pillar of our strategy, stabilizing our result by growing the commission, and you can see that the TFI activity and the brokerage house activity deals with that handsomely. Some additional figures. There's been a growth in the number of brokerage accounts by 4%. The funds grew by 36% in open-end investment funds, and there's been a sale growth of structured products. All in all, this feeds into the commission profits at a higher level than had been promised.
Piotr Żabski: The balance of customer assets is on the rise. There's been a 21% growth year-on-year in all the constituent parts of the bar that you can see. On the right-hand side, you can see the net brokerage commission of the brokerage house. We will hear more from Zdzisław about it, but let me just focus on the fact that we promised we'll be in the second pillar of our strategy, stabilizing our result by growing the commission, and you can see that the TFI activity and the brokerage house activity deals with that handsomely. Some additional figures. There's been a growth in the number of brokerage accounts by 4%. The funds grew by 36% in open-end investment funds, and there's been a sale growth of structured products. All in all, this feeds into the commission profits at a higher level than had been promised.
Speaker #1: There's been a 21% growth year on year in all the constituent parts of the bar that you can see. On the right-hand side, you can see the net brokerage commission of the brokerage house.
Speaker #1: We will hear more from Youssef about it, but let me just focus on the fact that we promised we would be in the second pillar of our strategy: stabilizing our results by growing the commission.
Speaker #1: And you can see that the TFI activity and the brokerage house activity deal with that handsomely. Some additional figures: there has been a growth in the number of brokerage accounts by 4%.
Speaker #1: The funds grew by 36% in open-end investment funds, and there's been a sales growth of structured products. All in all, this feeds into the commission profits at a higher level than had been promised.
Piotr Żabski: Those customers who are interested in investments receive from us proper mobile service. We have been offering some considerable possibilities there. There has been a growth in new brokerage houses or investment fund transfers, and we have two-digit growth in those fields. You can see that customers very much use this channel of distribution and wish to invest with us. A few words about the business customer. On the left-hand side, you can see the balance of loans and deposits. The growth balance grew by PLN 1.4 billion. In the middle of this structure, the most active growth part is the leasing activity. On the side of the bank and the leasing company on the right-hand side, you can see the deposits of business customers broken down into the term deposits and current and other deposits.
Piotr Żabski: Those customers who are interested in investments receive from us proper mobile service. We have been offering some considerable possibilities there. There has been a growth in new brokerage houses or investment fund transfers, and we have two-digit growth in those fields. You can see that customers very much use this channel of distribution and wish to invest with us. A few words about the business customer. On the left-hand side, you can see the balance of loans and deposits. The growth balance grew by PLN 1.4 billion. In the middle of this structure, the most active growth part is the leasing activity. On the side of the bank and the leasing company on the right-hand side, you can see the deposits of business customers broken down into the term deposits and current and other deposits.
Speaker #1: Those customers who are interested in investments receive from us proper mobile service; we've been offering some considerable possibilities there. There's been growth in new brokerage houses or investment fund transfers, and we have double-digit growth in those fields.
Speaker #1: So you can see that customers very much use this channel of distribution and wish to invest with us. Now, a few words about the business customer.
Speaker #1: On the left-hand side, you can see the balance of loans and deposits. The growth balance grew by PLN 1.4 billion, and at the center of this structure, the most active growth part is the leasing activity.
Speaker #1: On the side of the bank and the leasing companies, on the right-hand side, you can see the deposits of business customers, broken down into term deposits and current and other deposits.
Speaker #1: It is quite stable, but what is important is that the yellow bar keeps growing, which is the current deposits. Thanks to this, and thanks to the changes we are making, we are able to decrease the financing costs.
Piotr Żabski: It is quite stable, but what is important is that the yellow bar keeps growing, which is the current deposit, thanks to which, and thanks to the changes in which we are able to decrease the financing costs. As far as the business customer, in terms of the quality of the loan portfolio, the performing loans on the left-hand side is quite stable. The non-performing loan is consistently going down. On the right-hand side, you have the structure of the loan balance in micro SME and large companies. What you can see is considerable growth in the yellow bar. We are really moving on there. We generate considerable margins there. We know how to play in this field, and we can focus on this one. Small and medium-sized companies, this is our focus.
Piotr Żabski: It is quite stable, but what is important is that the yellow bar keeps growing, which is the current deposit, thanks to which, and thanks to the changes in which we are able to decrease the financing costs. As far as the business customer, in terms of the quality of the loan portfolio, the performing loans on the left-hand side is quite stable. The non-performing loan is consistently going down. On the right-hand side, you have the structure of the loan balance in micro SME and large companies. What you can see is considerable growth in the yellow bar. We are really moving on there. We generate considerable margins there. We know how to play in this field, and we can focus on this one. Small and medium-sized companies, this is our focus.
Speaker #1: Now, as far as the business customer, in terms of the quality of the loan portfolio, the performing loans on the left-hand side are quite stable.
Speaker #1: The non-performing loan is consistently going down. On the right-hand side, you have the structure of the loan balance in micro, SME, and large companies. What you can see is considerable growth in the yellow bar.
Speaker #1: We're really moving on there. We generate considerable margins there. We know how to play in this field, and we can focus on this one.
Speaker #1: Small and medium-sized companies—this is our focus. As for the micro companies, well, as I mentioned previously (and we will keep discussing that), the NPLs are still quite high in that field.
Piotr Żabski: Well, as for the micro companies, as I mentioned previously, we will keep discussing that the NPLs are still quite high in that field, going down or decreasing that portfolio is our priority. It is not happening very fast because it takes time to catch up there. We keep being active in the market, but will take some time before this balance is stabilized. The burgundy part is obviously the large companies. There is more competition there. We are not active in all types of transactions. We want to participate in those which provide us with good margins. The competition is very tight right now. The low interest rates create a situation where not all the contracts are attractive for us, and that is how it looks. There has been a growth in the number of new current accounts. Not a big growth, just 5%.
Piotr Żabski: Well, as for the micro companies, as I mentioned previously, we will keep discussing that the NPLs are still quite high in that field, going down or decreasing that portfolio is our priority. It is not happening very fast because it takes time to catch up there. We keep being active in the market, but will take some time before this balance is stabilized. The burgundy part is obviously the large companies. There is more competition there. We are not active in all types of transactions. We want to participate in those which provide us with good margins. The competition is very tight right now. The low interest rates create a situation where not all the contracts are attractive for us, and that is how it looks. There has been a growth in the number of new current accounts. Not a big growth, just 5%.
Speaker #1: So, going down or decreasing that portfolio is our priority. But it's not happening very fast, because it takes time to catch up. We keep being active in the market, but it will take some time before this balance is stabilized.
Speaker #1: And the Bergen department is obviously the large companies. There is more competition there. We're not active in all types of transactions. We want to participate in those which provide us with good margins.
Speaker #1: The competition is very tight right now. The low interest rates create a situation where not all the contracts are attractive—for us, that's how it looks.
Speaker #1: There's been growth in the number of new current accounts—not a big growth, just 5%—but considering the trajectory, which I mentioned previously in different segments, it gives us a satisfactory result.
Piotr Żabski: Considering the trajectory, which I mentioned previously in different segments, it gives us a satisfactory result. The customers use digital banking channels, which is something that we are very happy about, and both purchase and bank online, and that is something that makes us very happy. About the leasing, we distribute leasing products via our banking network and via our leasing company. The 30% growth is much higher than the market has grown, which makes us very happy because we have also maintained good risk parameters. The leasing portfolio grew by 14%. The segments where we try to be active have noticed growth. We have very good shares in the market there, and we keep increasing those shares. This is our response to the activities in the micro and small and medium-sized companies. As for some awards and distinctions, we have had a few in the second quarter.
Piotr Żabski: Considering the trajectory, which I mentioned previously in different segments, it gives us a satisfactory result. The customers use digital banking channels, which is something that we are very happy about, and both purchase and bank online, and that is something that makes us very happy. About the leasing, we distribute leasing products via our banking network and via our leasing company. The 30% growth is much higher than the market has grown, which makes us very happy because we have also maintained good risk parameters. The leasing portfolio grew by 14%. The segments where we try to be active have noticed growth. We have very good shares in the market there, and we keep increasing those shares. This is our response to the activities in the micro and small and medium-sized companies. As for some awards and distinctions, we have had a few in the second quarter.
Speaker #1: The customers use digital banking channels, which is something that we are very happy about, and both purchase and bank online, and that's something that makes us very happy.
Speaker #1: Regarding leasing, we distribute leasing products via our banking network and through our leasing companies. A 30% growth is much higher than the market has grown, which makes us very happy because we've also maintained good risk parameters.
Speaker #1: The leasing portfolio grew by 14%. The segments where we try to be active have noticed growth. We have very good shares in the market there, and we keep increasing those shares.
Speaker #1: This is our response to the activities in the micro, small, and medium-sized companies. Now, as for some awards and distinctions, we've had a few in the second quarter.
Speaker #1: The market has appreciated us in a number of fields. But I think it will be more interesting to hear from Martin about how we've managed to implement our business in terms of the risk.
Piotr Żabski: The market has appreciated us in a number of fields. I think it will be more interesting to hear from Marcin about how we've managed to implement our business in terms of the risk.
Piotr Żabski: The market has appreciated us in a number of fields. I think it will be more interesting to hear from Marcin about how we've managed to implement our business in terms of the risk.
Speaker #2: Hello and welcome. Q2 ended with a very safe capital and liquidity performance. Liabilities: We have issued TSMP bonds valued at 800 million zlotys, and it should be stressed that we had oversubscription.
Marcin Ciszewski: Hello and welcome. Q2 ended with a very safe capital and liquidity performance. Liabilities. We have issued TSMP bonds valued at PLN 800 million. It should be stressed that we had oversubscription. Good margin, 1.6 above WIBOR. At the same time, we have redeemed end series bonds before the term with 2.81% margin. A significant decline in the cost of financing. This translated into MREL totaling 21.72. On the capital side, we had very safe performance. All indicators totaled 17.57. Robust liquidity, LCR 283 at the end of H1 2026. Coming back to liquidity indicator, we had a significant surplus of capital on all levels. As a result, we can continue with growth. Non-performing loans ratio, we continue to go down below 5% of such loans. It's realistic.
Marcin Ciszewski: Hello and welcome. Q2 ended with a very safe capital and liquidity performance. Liabilities. We have issued TSMP bonds valued at PLN 800 million. It should be stressed that we had oversubscription. Good margin, 1.6 above WIBOR. At the same time, we have redeemed end series bonds before the term with 2.81% margin. A significant decline in the cost of financing. This translated into MREL totaling 21.72. On the capital side, we had very safe performance. All indicators totaled 17.57. Robust liquidity, LCR 283 at the end of H1 2026. Coming back to liquidity indicator, we had a significant surplus of capital on all levels. As a result, we can continue with growth. Non-performing loans ratio, we continue to go down below 5% of such loans. It's realistic.
Speaker #2: Good margin, 1.6 above FIBO, and at the same time, we have redeemed N-series bonds before the term, with a 2.81% margin. So, a significant decline in the cost of financing.
Speaker #2: This translated into MREL totaling 21.72 under the capital side. We had very safe performance; all indicators totaled 17.57. Robust liquidity—LCR was 283 at the end of the first six months of 2026.
Speaker #2: And coming back to the liquidity indicator, we had a significant surplus of capital on all levels, and as a result, we can continue our growth.
Speaker #2: The non-performing loans ratio continues to go down, and it's now below 5%. This is realistic, and we are continuing our strategy. We want this indicator to go down below 5% by the end of this year.
Marcin Ciszewski: We are continuing our strategy. We want this indicator to go down below 5% by the end of this year. 5.16, that was the figure for the end of H1 of this year. We had one default in the business customer segment, which has impacted this indicator and the cost of risk, which you can see on the bottom graph. Cost of risk totaled 0.71. We continue to implement our strategy. This year and next year, our strategy will be implemented, provided that there will be no major turmoil on the market. This indicator won't go above 0.8. Non-performing loans balance at the end of Q2 totaled more than 3 billion. For retail customers, at the end of H1, it stood at 2.1.
Marcin Ciszewski: We are continuing our strategy. We want this indicator to go down below 5% by the end of this year. 5.16, that was the figure for the end of H1 of this year. We had one default in the business customer segment, which has impacted this indicator and the cost of risk, which you can see on the bottom graph. Cost of risk totaled 0.71. We continue to implement our strategy. This year and next year, our strategy will be implemented, provided that there will be no major turmoil on the market. This indicator won't go above 0.8. Non-performing loans balance at the end of Q2 totaled more than 3 billion. For retail customers, at the end of H1, it stood at 2.1.
Speaker #2: 5.16—that was the figure for the end of the first six months of this year. We had one default in the business customers segment.
Speaker #2: This has impacted this indicator and the cost of risk, which you can see on the bottom graph. The current total is 0.71, but we continue to implement our strategy this year and next year. Our strategy will be implemented provided that there will be no major turmoil in the market.
Speaker #2: And this indicator was about 0.8. Non-performing loans balance at the end of the second quarter totaled more than 3 billion. For retail customers, at the end of six months, it stood at 2.1 billion. In the case of business customers, 21 cases were reported.
Marcin Ciszewski: In case of business customers, the quarter ended with 11.8. Considering that no major changes, no major defaults will come underway, this indicator should go below two-digit figure by the end of the year. The cost of risk. Business customers, as you can see, the impact of the default. Less than 2% is the result. For retail customers, the result in Q2, sales of non-performing loan support folio led to Cost of risk value be close to zero. Over to Zdzisław. Let me now discuss financial results. Revenues. Like Piotr has mentioned, we are very happy with development of our revenue in line with our strategy, in line with our expectations.
Marcin Ciszewski: In case of business customers, the quarter ended with 11.8. Considering that no major changes, no major defaults will come underway, this indicator should go below two-digit figure by the end of the year. The cost of risk. Business customers, as you can see, the impact of the default. Less than 2% is the result. For retail customers, the result in Q2, sales of non-performing loan support folio led to Cost of risk value be close to zero. Over to Zdzisław.
Speaker #2: The quarter ended with 11.8. Considering that no major changes and no major defaults will come underway, this indicator should go below a two-digit figure by the end of the year.
Speaker #2: The cost of risk for business customers, as you can see, shows the impact of defaults. So, less than 2% is the result, and for retail customers, the result in Q2—sales of the non-performing loans portfolio—led to the core value being close to zero. And over to Zdzisław.
Speaker #2: Let me now discuss financial results. Revenues, like Piotr has mentioned, we are very happy with the development of our revenue, in line with our strategy and in line with our expectations.
Zdzisław Wojtera: Let me now discuss financial results. Revenues. Like Piotr has mentioned, we are very happy with development of our revenue in line with our strategy, in line with our expectations.
Speaker #2: Of course, in the first six months of this year, we need to take into consideration a one-off event: the judgment of CGEU, which has forced us to make an adjustment totaling 153 million zlotys due on interest.
Zdzisław Wojtera: Of course, in the H1 of this year, we need to take into consideration one-off event, the judgment of CJEU, which has forced us to make an adjustment totaling PLN 153 million due on interest. Just like the rest of the sector, we have adjusted the balance sheet value of loans with expected value of future cash flows, and this is also reflected by PLN 153 million worth of fees and commission results. With dwindling interest rates and fierce competition in the sector, we have a slight increase by PLN 128 million. Our net profit is going up. If we look at different quarters, the situation is very similar. The difference between quarters is slightly bigger, parameters are changing. Adjusted revenue with one-off event gives us the same position like in Q2 2025. Let's analyze our net profit.
Zdzisław Wojtera: Of course, in the H1 of this year, we need to take into consideration one-off event, the judgment of CJEU, which has forced us to make an adjustment totaling PLN 153 million due on interest. Just like the rest of the sector, we have adjusted the balance sheet value of loans with expected value of future cash flows, and this is also reflected by PLN 153 million worth of fees and commission results. With dwindling interest rates and fierce competition in the sector, we have a slight increase by PLN 128 million. Our net profit is going up. If we look at different quarters, the situation is very similar. The difference between quarters is slightly bigger, parameters are changing. Adjusted revenue with one-off event gives us the same position like in Q2 2025. Let's analyze our net profit.
Speaker #2: So, just like the rest of the sector, we have adjusted the balance sheet value of loans with the expected value of future cash flows, and this is also reflected by PLN 153 million worth of fees and commission results.
Speaker #2: So with Windlink interest rates and fierce competition in the sector, we have a slight increase by 128 million zlotys. Our net profit is going up.
Speaker #2: If we look at different quarters, the situation is very similar. The difference between quarters is slightly bigger, so parameters are changing. But adjusted revenue with one-off event gives us the same position like in Q2 2025.
Speaker #2: Let's analyze our net profit. It should be stressed that in the first six months of this year, three major events took place. One of them is the adjustment of CI results as a result of the CGEU judgment, which is 196 million zlotys.
Marcin Ciszewski: It should be stressed that in the H1 of this year, three major events took place. One of them is the adjustment of C/I results as a result of CJEU judgment. It's PLN 196 million. This is dark gray bar. The second event is the adjustment of the cost of risk by PLN 98 million and the impact of corporate income tax, which is translated into higher effective tax rates. It's PLN 866 million altogether in the H1 2026. If we compare it to the previous quarter, where we reported PLN 403 million, considering only CJEU result, we would have profit aligned to our expectations. On the next slide, we have a more detailed breakdown of our profits and revenue, and we have three events in the quarter in the H1 which have a significant impact on the results.
Zdzisław Wojtera: It should be stressed that in the H1 of this year, three major events took place. One of them is the adjustment of C/I results as a result of CJEU judgment. It's PLN 196 million. This is dark gray bar. The second event is the adjustment of the cost of risk by PLN 98 million and the impact of corporate income tax, which is translated into higher effective tax rates. It's PLN 866 million altogether in the H1 2026. If we compare it to the previous quarter, where we reported PLN 403 million, considering only CJEU result, we would have profit aligned to our expectations. On the next slide, we have a more detailed breakdown of our profits and revenue, and we have three events in the quarter in the H1 which have a significant impact on the results.
Speaker #2: This is the dark gray bar. The second event is the adjustment of the cost of risk by 98 million and the impact of corporate income tax.
Speaker #2: Which is translated into higher effective tax rates, so it's 866 million zlotys altogether. In the first six months of 2026, if we compare it to the previous quarter where we reported 403 million, considering only CGEU results, we would have profit aligned to our expectations.
Speaker #2: On the next slide, we have a more detailed breakdown of our profits and revenue, and we have three events in the quarter—in the first six months—which have a significant impact on the results.
Speaker #2: So, adjustment following the CGEU judgment, higher cost of risk, and higher corporate income tax—all of which translate into net profit for the quarter and for the first six months of the year.
Marcin Ciszewski: Adjustment following the CJEU judgment, higher cost of risk and higher corporate income tax, what translates into net profit for the quarter and for the H1 of the year. Our key indicators, let's start with ROE, it's 11.5%, but considering the one-off event, it's 14.3%, it's a good result. 43% of CoF and 37.7 NIM looks robust. More about it, I will tell you on the next slide. Net interest income includes the adjustment of PLN 153 million, that would mean that by quarter, we have comparable amounts. That means that the growth of our business is compensating for dwindling interest rates. That's the slide I've mentioned on net interest rate. Very high margin of Alior last quarter. We communicated that from 5.19, this figure has gone down to 4.5.
Zdzisław Wojtera: Adjustment following the CJEU judgment, higher cost of risk and higher corporate income tax, what translates into net profit for the quarter and for the H1 of the year. Our key indicators, let's start with ROE, it's 11.5%, but considering the one-off event, it's 14.3%, it's a good result. 43% of CoF and 37.7 NIM looks robust. More about it, I will tell you on the next slide. Net interest income includes the adjustment of PLN 153 million, that would mean that by quarter, we have comparable amounts. That means that the growth of our business is compensating for dwindling interest rates. That's the slide I've mentioned on net interest rate. Very high margin of Alior last quarter. We communicated that from 5.19, this figure has gone down to 4.5.
Speaker #2: Our key indicators—let's start with ROA—which is 11.5%. But considering the one-off event, it's 14.3%, so it's a good result. COF is at 4.3%, and NEM at 3.77%, both of which look robust.
Speaker #2: And I will tell you more about it on the next slide. Net interest income includes the adjustment of 153 million zlotys, and that means that by quarter, we have comparable amounts.
Speaker #2: And that means that the increase—the growth—of our business is compensating for dwindling interest rates. And that's the slide I mentioned on net interest rate.
Speaker #2: So, a very high margin for Alior last quarter. We communicated that from 5.19 this figure has gone down to 4.5. And if we exclude this effect, the result would be 5.11.
Marcin Ciszewski: If we exclude this effect, the results would be 5.11. That's in check with our aspirations and expectations for our margin and the growth of business. We will strive to keep NIM stable at approximately 5%. The cost of financing is going down slightly, in line with market trends. Loan to deposit ratio remains stable above 70% for a longer period of time, and Cost to Income Ratio, 37.7. Fees and commissions. Piotr has mentioned that this is the key pillar of our strategy and we are happy that fees and commission are going up by the quarter. You can see significant improvement of fees and commission. This is the result of higher brokerage commissions, growing volume of assets, and margin on current accounts. Final part, operating costs.
Zdzisław Wojtera: If we exclude this effect, the results would be 5.11. That's in check with our aspirations and expectations for our margin and the growth of business. We will strive to keep NIM stable at approximately 5%. The cost of financing is going down slightly, in line with market trends. Loan to deposit ratio remains stable above 70% for a longer period of time, and Cost to Income Ratio, 37.7. Fees and commissions. Piotr has mentioned that this is the key pillar of our strategy and we are happy that fees and commission are going up by the quarter. You can see significant improvement of fees and commission. This is the result of higher brokerage commissions, growing volume of assets, and margin on current accounts. Final part, operating costs.
Speaker #2: So, that's in check with our aspirations and expectations for our margin and the growth of the business. We will strive to keep NEM stable at approximately 5%.
Speaker #2: The cost of financing is going down slightly in line with market trends. The loan-to-deposit ratio remains stable above 70% for a longer period of time.
Speaker #2: And the cost-income ratio is 37.7. Fees and commissions—Piotr has mentioned that this is the key pillar of our strategy, and we are happy that fees and commissions are going up quarter by quarter.
Speaker #2: So, you can see a significant improvement in fees and commissions. This is the result of higher brokerage commissions, growing volume of assets, and margin on current accounts.
Speaker #2: And finally, operating costs. We have declared that we want to be transparent and that we want to have a predictable cost trajectory. This is an example from the perspective of 2025 and the first six months of 2026.
Marcin Ciszewski: We have declared that we want to be transparent, that we want to have a predictable cost trajectory. This is an example from the perspective of 2025 and the first six months of 2026. We can compare several quarters, we can see that amounts are predictable, comparable between different periods. We see growth by six, seven million, so 1% by every quarter. Something that we have declared early this year, that we want to end this year with costs not higher than those triggered by inflation. This is the end of financial part. Piotr, over to you. Thank you very much. We are keeping our promises. We will be growing, we will be more resilient, we will be better. Our strategy is translated directly into our parameters.
Zdzisław Wojtera: We have declared that we want to be transparent, that we want to have a predictable cost trajectory. This is an example from the perspective of 2025 and the first six months of 2026. We can compare several quarters, we can see that amounts are predictable, comparable between different periods. We see growth by six, seven million, so 1% by every quarter. Something that we have declared early this year, that we want to end this year with costs not higher than those triggered by inflation. This is the end of financial part. Piotr, over to you.
Speaker #2: We can compare several quarters, and we can see that amounts are predictably comparable between different periods. We see growth by 6 or 7 million—so 1%—in every quarter.
Speaker #2: And something that we have declared early this year is that we want to end this year with costs not higher than those triggered by inflation.
Speaker #2: So, this is the end of the financial part. Piotr, over to you. Thank you very much. As we promised, we will continue to grow.
Piotr Żabski: Thank you very much. We are keeping our promises. We will be growing, we will be more resilient, we will be better. Our strategy is translated directly into our parameters.
Speaker #2: We will be more resilient. We'll be better. And our strategy is translated directly into our parameters. So, in black font, these are results without the one-off event: PLN 1.5 billion worth of profit, PLN 367 million in profits, 11.5% in ROE, 40.3% costs and interest, and 5.1% NPL.
Piotr Żabski: In black font, these are results without the one-off event, PLN 1.5 worth of profit, PLN 367 million in profit, 11.5% in ROE, 40.3% costs and interest, 5.1% of NPL. We are on the right track to deliver the strategy. Thank you very much for your attention and we can now answer your questions.
Piotr Żabski: In black font, these are results without the one-off event, PLN 1.5 worth of profit, PLN 367 million in profit, 11.5% in ROE, 40.3% costs and interest, 5.1% of NPL. We are on the right track to deliver the strategy. Thank you very much for your attention and we can now answer your questions.
Speaker #2: So, we are on the right track to deliver the strategy. Thank you very much for your attention, and we can now answer your questions.
Dominik Prokop: Thank you very much, Piotr. It is now the beginning of our Q&A session. Loans for SMEs, one of the most critical segments of the market seems to be stagnating. What are the outlooks for the segment?
Dominik Prokop: Thank you very much, Piotr. It is now the beginning of our Q&A session. Loans for SMEs, one of the most critical segments of the market seems to be stagnating. What are the outlooks for the segment?
Speaker #2: Thank you very much, Piotr. It's now the beginning of our Q&A session. So, loans for SMEs—one of the most critical segments of the market—seem to be stagnating.
Speaker #2: What are the outlooks for the segment? I wouldn't say it's stagnating. We have two different trends. We need to reduce double-digit NPLs in this segment.
Piotr Żabski: I wouldn't say it is stagnating. We have two different trends. We need to reduce double-digit NPL in this segment. Our strategic objective is to keep it below 5%, we have huge room for improvement. New business, we are reconstructing, we are introducing to our portfolio with other risk parameters. It is quite unlikely that it is going to grow so fast, especially that we are reducing NPL. In a while we will see this portfolio shrink. I think more efficiency is on the horizon. We are not shifting our focus from this segment. Another question. What is the share of commercial profits subject to CJEU judgment, and how did you take it into consideration in Q2? What litigations do you expect also in relation to consumer credits which have been paid, for which this judgment may be relevant when terms and conditions of such loans were amended?
Piotr Żabski: I wouldn't say it is stagnating. We have two different trends. We need to reduce double-digit NPL in this segment. Our strategic objective is to keep it below 5%, we have huge room for improvement. New business, we are reconstructing, we are introducing to our portfolio with other risk parameters. It is quite unlikely that it is going to grow so fast, especially that we are reducing NPL. In a while we will see this portfolio shrink. I think more efficiency is on the horizon. We are not shifting our focus from this segment.
Speaker #2: Our strategic objective is to keep it below 5%. So we have huge room for improvement. As for new business, we are restructuring. We are introducing it to our portfolio.
Speaker #2: With other risk parameters, it's quite unlikely that it's going to grow so far, especially since we are reducing NPL. So, in a while, we'll see this portfolio shrink.
Speaker #2: But I think greater efficiency is on the horizon. We are not shifting our focus from this segment. And another question: What is the share of commercial profits subject to the CJEU judgment, and how did you take it into consideration in Q2?
Dominik Prokop: Another question. What is the share of commercial profits subject to CJEU judgment, and how did you take it into consideration in Q2? What litigations do you expect also in relation to consumer credits which have been paid, for which this judgment may be relevant when terms and conditions of such loans were amended?
Speaker #2: So, what litigations do you expect also in relation to consumer credits, which have been paid? For which this judgment may be relevant? When terms and conditions of such loans were amended?
Speaker #1: Quite a few questions. Let's start at the beginning. As far as I remember, everything—the CJEU ruling from April relates to a small part of the portfolio of the consumer loans.
Dominik Prokop: Quite a few questions. Let's start at the beginning. As far as I remember everything, the CJEU ruling from April relates to a small part of the portfolio of the consumer loans, about 25%, so about one quarter of it. We already dropped the sales of loans where we generated the non-interest costs. We are respecting the ruling
Zdzisław Wojtera: Quite a few questions. Let's start at the beginning. As far as I remember everything, the CJEU ruling from April relates to a small part of the portfolio of the consumer loans, about 25%, so about one quarter of it. We already dropped the sales of loans where we generated the non-interest costs. We are respecting the ruling
Speaker #1: About 25%, so about one quarter of these, we've already dropped. These are sales of loans where we generated an all-interest cost. We are respecting the ruling, and we have set up a correction of the interest results in the amount of 130 million zlotys gross.
Zdzisław Wojtera: We have set up a correction of the interest results and the value of PLN 130 million gross. As for the net result, it's PLN 96 million. We believe that the ruling should be implemented from the 8 April date vis-à-vis the loans which had been paid off previously. We acted according to the law in Poland and the Polish regulatory authorities which had not objected to the practice that we applied. The loan offer rulings were changed one point half years ago. So within two years, 75% above what currently is being paid off and therefore the financing of the non-interest costs relates only to a small part of the portfolio, about one-quarter. Thank you very much. Let's move on to the next question. What is the level of the commission income can we expect after a good Q2?
Zdzisław Wojtera: We have set up a correction of the interest results and the value of PLN 130 million gross. As for the net result, it's PLN 96 million. We believe that the ruling should be implemented from the 8 April date vis-à-vis the loans which had been paid off previously. We acted according to the law in Poland and the Polish regulatory authorities which had not objected to the practice that we applied. The loan offer rulings were changed one point half years ago. So within two years, 75% above what currently is being paid off and therefore the financing of the non-interest costs relates only to a small part of the portfolio, about one-quarter.
Speaker #1: And as for the net result, it's 96 million zlotys. We believe that the ruling should be implemented from the April date. As for the loans which had been paid off previously, we acted according to the law in Poland and the Polish regulatory authorities, which had not objected to the practice that we applied.
Speaker #1: The loan offer rulings were changed 1.5 years ago. So, within two years, 75% of our portfolio is being paid off, and therefore the financing of the non-interest costs relates only to a small part of the portfolio, about one quarter.
Speaker #1: Thank you very much. Let's move on to the next question. What level of commission income can we expect after a good second quarter?
Dominik Prokop: Thank you very much. Let's move on to the next question. What is the level of the commission income can we expect after a good Q2?
Piotr Żabski: In the results of the Q2, did we have any seasonal issues? No, I think we are witnessing regular business activities. When we consider brokerage activities, it obviously fluctuates depending on the interest of the customers and the activity of the stock market, for instance. In our assessment, we are witnessing a regular business development. We expect in the subsequent quarters, in the H2, the commission values which will be not lower from what we reported in the H1. The next question. What about the recent period and the mortgage and corporate loans? Well, let me say about the environment. It has certainly had an impact. We see a growth in the pressure. We talked about the business customer. The segments were higher. We are not going to fight for certain contracts which are not profitable.
Piotr Żabski: In the results of the Q2, did we have any seasonal issues? No, I think we are witnessing regular business activities. When we consider brokerage activities, it obviously fluctuates depending on the interest of the customers and the activity of the stock market, for instance. In our assessment, we are witnessing a regular business development. We expect in the subsequent quarters, in the H2, the commission values which will be not lower from what we reported in the H1.
Speaker #1: In the results of the second quarter, did we have a seasonal issue? No, I think we are witnessing regular business activities. When we consider brokerage activities, it obviously fluctuates depending on the interest of the customers in the activity of the stock market, for instance.
Speaker #1: But in our assessment, we are witnessing regular business development there. We expect that in the subsequent quarters, in the second half of the year, the commission values will not be lower than what we reported in the first half.
Speaker #1: And the next question: what about the recent period and mortgage and corporate loans? Well, let me say something about the environment. It has certainly had an impact.
Dominik Prokop: The next question. What about the recent period and the mortgage and corporate loans?
Piotr Żabski: Well, let me say about the environment. It has certainly had an impact. We see a growth in the pressure. We talked about the business customer. The segments were higher. We are not going to fight for certain contracts which are not profitable.
Speaker #1: We see a growth in the pressure. We talked about the business customer; the segments were higher. We are not going to fight for certain contracts which are not profitable.
Speaker #1: So there is a lot of pressure. We have considered including some modifications in installment loans, and we are quite conscious and withdrawing from certain types of contracts because of the lower margins.
Piotr Żabski: There is a lot of pressure. We consider including some modification in installment loans, we are quite conscious in withdrawing from certain types of contracts because of the lower margins. We will catch up in other areas. For instance, in the volumes, our mortgage loans are growing well, the leasing activity is growing well. It's a trade-off. The next question. What are the prospects regarding the consumer loans in the future? We view this market positively. The low interest rate is conducive to providing more loans to customers. Consumer loans, as you will notice, were used by some specialized providers, and now the whole of the sector wants to get involved in that because it's such an attractive sector as far as the margins are concerned with the risk which is well managed and which we can prove that you can manage it well.
Piotr Żabski: There is a lot of pressure. We consider including some modification in installment loans, we are quite conscious in withdrawing from certain types of contracts because of the lower margins. We will catch up in other areas. For instance, in the volumes, our mortgage loans are growing well, the leasing activity is growing well. It's a trade-off.
Speaker #1: But we try to catch up. In other areas, for instance, in the volumes, our mortgage loans are growing well. The leasing activity is growing well.
Speaker #1: So it's a trade-off. The next question: What are the prospects regarding consumer loans in the future? We view this market positively. The low interest rates are conducive to providing more loans to customers.
Dominik Prokop: The next question. What are the prospects regarding the consumer loans in the future?
Piotr Żabski: We view this market positively. The low interest rate is conducive to providing more loans to customers. Consumer loans, as you will notice, were used by some specialized providers, and now the whole of the sector wants to get involved in that because it's such an attractive sector as far as the margins are concerned with the risk which is well managed and which we can prove that you can manage it well.
Speaker #1: Consumer loans, as you will notice, were used by some specialized providers. And now, the whole sector wants to get involved in that because it's such an attractive sector as far as the margins are concerned.
Speaker #1: With the risk, which is well managed—and which we can prove that we can manage well—it's a very profitable sector in the business.
Piotr Żabski: It's a very profitable sector in the business. The consumer loans are certainly on our radar as part of our strategy. Thank you. Can you present the current data regarding the financing ratio WFT? Well, at the end of H1, we had 45.3 regarding that particular ratio. We keep observing what's happening in the market. We are observing the changes implemented by the KNF, the Polish regulatory authority, with regard to that ratio. We do not see a problem with meeting the requirements. Thank you. Next question. Why did we have a lower level in the NPL level? Is it the new level of profits with regard to this segment? Well, there are some issues relating to the size of the portfolio, the other issue is the structure of the portfolio.
Piotr Żabski: It's a very profitable sector in the business. The consumer loans are certainly on our radar as part of our strategy.
Speaker #1: So, consumer loans are certainly on our radar as part of our strategy. Thank you. Can you present the current data regarding the financing ratio WFT?
Dominik Prokop: Thank you. Can you present the current data regarding the financing ratio WFT?
Speaker #1: Well, at the end of the first half, we had 45.3 regarding that particular ratio. We keep observing what's happening in the market. We are observing the changes implemented by the KNF, the Polish regulatory authority.
Piotr Żabski: Well, at the end of H1, we had 45.3 regarding that particular ratio. We keep observing what's happening in the market. We are observing the changes implemented by the KNF, the Polish regulatory authority, with regard to that ratio. We do not see a problem with meeting the requirements.
Speaker #1: With regard to that ratio, we do not see a problem with meeting the requirements. Thank you. Next question: why did we have a lower—
Dominik Prokop: Thank you. Next question. Why did we have a lower level in the NPL level? Is it the new level of profits with regard to this segment?
Speaker #1: Is it the new level of profits with regard to the segment? Well, there are some issues relating to the size of the portfolio, and the other issue is the structure of the portfolio.
Piotr Żabski: Well, there are some issues relating to the size of the portfolio, the other issue is the structure of the portfolio.
Speaker #1: And also, we need to take into account the market situation and the prices which are offered by businesses that purchase these liabilities. And the next question.
Piotr Żabski: Also, we need to take into account the market situation and the prices which are offered by businesses which purchase these liabilities. The next question. Dynamic of the operating costs. The dynamics of operating costs, OPEX, has been good because of the reduction in employment. Can you see other possibility of savings there, do you believe that thanks to the stringent cost control, you'll be able to catch up with the tempo of growth in the market? Well, we did not say that this is our aim to cut costs in this field. We focus on the kind of development of the business where some parts of it are more attractive. For instance, they provide higher margins, what Piotr mentioned. We're not fighting for all kinds of products. We don't want to achieve all contracts.
Piotr Żabski: Also, we need to take into account the market situation and the prices which are offered by businesses which purchase these liabilities.
Dominik Prokop: The next question. Dynamic of the operating costs. The dynamics of operating costs, OPEX, has been good because of the reduction in employment. Can you see other possibility of savings there, do you believe that thanks to the stringent cost control, you'll be able to catch up with the tempo of growth in the market?
Speaker #1: Dynamic of the operating costs. The dynamics of operating costs, OPEX, has been good because of the reduction in employment. Can you see other possibilities of savings there?
Speaker #1: And do you believe that, thanks to the stringent cost control, you'll be able to catch up with the tempo of growth in the market?
Speaker #1: Well, we did not say that this is our aim—to cut costs in this field. We focus on the kind of development of the business where some parts of it are more attractive.
Piotr Żabski: Well, we did not say that this is our aim to cut costs in this field. We focus on the kind of development of the business where some parts of it are more attractive. For instance, they provide higher margins, what Piotr mentioned. We're not fighting for all kinds of products. We don't want to achieve all contracts.
Speaker #1: For instance, they provide higher margins. That was mentioned. We're not fighting for all kinds of products. We don't want to achieve all contracts. We can be more selective in our investments.
Piotr Żabski: We can be more selective in our investments and therefore to the costs which these investments generate. Also, Could you repeat the second part of the question? Yes. OPEX and the reduction in employment. Can you see further possibilities of savings there, do you believe that due to more stringent cost controls, you could catch up the levels of growth? What we assume is that the automation will have an impact. If we invest a lot in the AI development field, in robotics and high-tech solutions, we believe that these developments in terms of servicing our customers and the provision of products will give us more possibility to limit the cost and give us an opportunity to develop our products. Can you comment on the high level of cost in the business sector?
Piotr Żabski: We can be more selective in our investments and therefore to the costs which these investments generate. Also, Could you repeat the second part of the question?
Speaker #1: And therefore, to the costs which these investments generate. Also, could you repeat the second part of the question? Yes—regarding the reduction in employment.
Dominik Prokop: Yes. OPEX and the reduction in employment. Can you see further possibilities of savings there, do you believe that due to more stringent cost controls, you could catch up the levels of growth?
Speaker #1: Do you see further possibilities for savings there, or do you believe that, due to more stringent cost controls, you could catch up to the levels of growth?
Speaker #1: Well, what we assume is that automation will have an impact. If we invest a lot in the AI development field, in robotics, and in high-tech solutions, we believe that these developments, in terms of servicing our customers and the provision of products, will give us more possibilities to limit costs and give us an opportunity to develop our products.
Piotr Żabski: What we assume is that the automation will have an impact. If we invest a lot in the AI development field, in robotics and high-tech solutions, we believe that these developments in terms of servicing our customers and the provision of products will give us more possibility to limit the cost and give us an opportunity to develop our products.
Dominik Prokop: Can you comment on the high level of cost in the business sector?
Speaker #1: Can you comment on the high level of costs in the business sector? As I mentioned in my presentation, this regards one particular customer and one particular default, which we identified in the second quarter of this year.
Piotr Żabski: As I mentioned in my presentation, this regards one particular customer and one particular default, which we identified in Q2 of this year. Thank you. What is the NIM outlook for subsequent quarters? We mentioned a few times already that this is our forte, the high level of margin. We will keep maintaining that using the selection and the products. We will hope to maintain it above 5%. We will be reviewing the goals as far as the income in 2027 is concerned. Well, let me answer that. Income in 2027 will be under pressure from a number of factors. Therefore, we have to look at them carefully in our strategy. First of all, the CIT tax will impact. Also, the growth, the volume growth. Zdzisław mentioned about the margins. We want to maintain a high level of these.
Piotr Żabski: As I mentioned in my presentation, this regards one particular customer and one particular default, which we identified in Q2 of this year.
Dominik Prokop: Thank you. What is the NIM outlook for subsequent quarters?
Speaker #1: Thank you. What is the NIM outlook for subsequent quarters? We mentioned a few times already that this is our sort of forte—the high level of margin.
Piotr Żabski: We mentioned a few times already that this is our forte, the high level of margin. We will keep maintaining that using the selection and the products. We will hope to maintain it above 5%. We will be reviewing the goals as far as the income in 2027 is concerned. Well, let me answer that. Income in 2027 will be under pressure from a number of factors. Therefore, we have to look at them carefully in our strategy. First of all, the CIT tax will impact. Also, the growth, the volume growth. Zdzisław mentioned about the margins. We want to maintain a high level of these.
Speaker #1: We will keep maintaining that, using the selection and the products. We hope to maintain it at about 5%. We will be reviewing the goals as far as the income in 2027 is concerned.
Speaker #1: Well, let me answer that. Income in 2027 will be under pressure from a number of factors, and so, therefore, we have to look at them carefully in our strategy.
Speaker #1: First of all, the SIT, CIT tax. Also, the growth—the volume growth—just about mentioned the margins. We want to maintain a high level of these.
Piotr Żabski: What is, however, noticeable are some vectors which differ from what we envisaged or assumed previously. The market is growing inward. There's a lot of inward consumption, which will certainly impact the event. We're not giving up. We are growing in sales. We are growing in the segments which are attractive in terms of the margin. If they're not attractive in terms of the margin, we try to be more distant to these products. We're not planning any communication in this area. We are simply keeping our finger on the pulse of the situation, and we will react. Do you see any modifications in the situation of the competition in the credit market? Well, I mentioned the competition is tight. It's much more vigorous in consumer loans than it used to be a year or 2 years ago.
Piotr Żabski: What is, however, noticeable are some vectors which differ from what we envisaged or assumed previously. The market is growing inward. There's a lot of inward consumption, which will certainly impact the event. We're not giving up. We are growing in sales. We are growing in the segments which are attractive in terms of the margin. If they're not attractive in terms of the margin, we try to be more distant to these products. We're not planning any communication in this area. We are simply keeping our finger on the pulse of the situation, and we will react.
Speaker #1: What is, however, noticeable are some vectors which differ from what we envisaged or assumed. The market is growing inwardly. There's a lot of inward consumption, which will certainly impact the events.
Speaker #1: But we're not giving up. We are growing in sales. We are growing in the segments which are attractive in terms of the margins. If they are not attractive in terms of margin, we try to be more distant from these products.
Speaker #1: We're not planning any communication in this area. We are simply keeping our finger on the pulse of the situation, and we will react. Do you see any modifications in the situation of the competition in the credit market?
Dominik Prokop: Do you see any modifications in the situation of the competition in the credit market?
Speaker #1: Well, I mentioned the competition is tight. It's much more vigorous in consumer loans than it used to be a year or two years ago.
Piotr Żabski: Well, I mentioned the competition is tight. It's much more vigorous in consumer loans than it used to be a year or 2 years ago.
Speaker #1: All the universal banks started to play very aggressively in this sector, especially in cash loans. It is also noticeable in mortgage loans. As far as installment loans are concerned, the activity of the main players is also very high.
Piotr Żabski: All the universal banks started to play very aggressively in this sector, especially in cash loans. It is noticeable also in mortgage loans. As far as the installment loans are concerned, the activity of the main players is also very high. As far as margins are concerned in the business sector, some segments grow quite well, but they grow because the margins are low. The competition is high. BIK also mentions a lot of consolidation in mortgages and cash loans as well. The market is getting mixed, and there's a lot of inward trends. There's a lot of dynamics in the market, and this will certainly impact the competitiveness and the offer presented to the customer. What about the CJEU ruling in terms of the SKD loans, the sanctions of free bank loans?
Piotr Żabski: All the universal banks started to play very aggressively in this sector, especially in cash loans. It is noticeable also in mortgage loans. As far as the installment loans are concerned, the activity of the main players is also very high. As far as margins are concerned in the business sector, some segments grow quite well, but they grow because the margins are low. The competition is high. BIK also mentions a lot of consolidation in mortgages and cash loans as well. The market is getting mixed, and there's a lot of inward trends. There's a lot of dynamics in the market, and this will certainly impact the competitiveness and the offer presented to the customer.
Speaker #1: As far as margins are concerned in the business sector, some segments grow quite well. But they grow because the margins are low, so the competition is high.
Speaker #1: BIK company also mentions a lot of consolidation in mortgages and cash loans as well. So the market is getting mixed, and there's a lot of inward trend.
Speaker #1: There's a lot of dynamics in the market, and this will certainly impact the competitiveness and the offers presented to the customer. What about the CJEU ruling in terms of the SKD loans, the sanctions concerning the three bank loans?
Dominik Prokop: What about the CJEU ruling in terms of the SKD loans, the sanctions of free bank loans?
Speaker #1: The CJEU has nothing to do with the sanctions regarding the three bank loans, the so-called SKD loans. The ruling simply means that from the moment of the decision, the banks should not collect interest, commissions, or additional costs.
Piotr Żabski: CJEU has nothing to do with the sanctions of free bank loans, the SKD loans. The ruling simply means that from the moment of the ruling, the banks should not collect interest on commission and additional costs. There is no ruling regarding SKDs, you should not mix those two. There's a lot of questions today. The next question, what will the impact on the sale of NPL for the cost of risk, and what is the value of the NPL loans sold? Starting at the end. As for the value of the portfolio, we do not provide the data of these. The impact on core is about 20 bps. That is all the questions that we've had. Thank you very much. I want to thank everyone for their attention. Thank you.
Piotr Żabski: CJEU has nothing to do with the sanctions of free bank loans, the SKD loans. The ruling simply means that from the moment of the ruling, the banks should not collect interest on commission and additional costs. There is no ruling regarding SKDs, you should not mix those two.
Speaker #1: But there is no ruling regarding SKDs, so you should not mix those two. There are a lot of questions today. So, the next question: What will be the impact on the sale of NPO for the cost of RICS?
Dominik Prokop: There's a lot of questions today. The next question, what will the impact on the sale of NPL for the cost of risk, and what is the value of the NPL loans sold?
Speaker #1: And what is the value of the NPL loans sold? Starting at the end—as for the value of the portfolio, we do not provide the data for these.
Piotr Żabski: Starting at the end. As for the value of the portfolio, we do not provide the data of these. The impact on core is about 20 bps.
Speaker #1: The impact on CORE is about 20 bips. And that is all. The questions that we've had. Thank you very much. I want to thank everyone for their attention.
Dominik Prokop: That is all the questions that we've had. Thank you very much.
Dominik Prokop: I want to thank everyone for their attention. Thank you.
