Good morning. This is Dominik 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 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, 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 the first half of 2026.
Let me firstly look at business results, then we'll move on to risk and finances, 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 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 PLN 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 you C/I at 43%. We would have 37.7% without that.
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 result. Very high ROEs, which if we take the CJEU out, we have a very good result. A very high level of NIM. We're still the kind of a player which has a high level of margin in the market, 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 loans, 12% in total sales. We have a growing group of customers, 6% of relational customers. Customers are banking in the mobile app.
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 80 million is at a good margin price, 1.6. Also, we are happy about the situation with costs. A mere 2% rise as regards costs. 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. We're performing loans, PLN 66 billion. Deposits grew by 9%. Some additional ratios.
As for the share of credits in 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 and 31% growth of assets under management of the TFI, the investment funds of the bank. We're catching the customers who've moved from the deposit side to investment funds. As for the operational activities, two perspectives there, the business customer and the retail customer. First, the retail customers, let's talk about mortgage loans, an almost 50% growth there. As for non-mortgage loans, there is a steady level, slightly decreased, the structure is changing.
As you can see, there are more cash loans handed out now. We're growing them more vigorously than in the consumer finance loan field. This is crucial because we are generating more margins there. As for the installment loans, the sales is going down because we are choosing the cooperation with partners where we generate higher margins. 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 right-hand side are growing at the tune of 15% year-on-year.
We are also very happy about the growth in the number of customers. We are number seven in the banks. We don't have the scale of some of the competitors ahead of us. We've had a good result, 7% growth in the relational 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 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.
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. Let me just focus on the fact that we promise we'll be in the second pillar of our strategy, stabilizing our result by growing the commission. 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. 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.
Those customers who are interested in investments receive from us proper mobile service. We've been offering some considerable possibilities there. There's been a growth in new brokerage houses or investment fund transfers. 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. Now, 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. 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.
It is quite stable, but what is important is that the yellow bar keeps growing, which is the current deposits, thanks to which, and thanks to the changes in which we are able to decrease the financing costs. Now, 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'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. Small and medium-sized companies, this is our focus.
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's not happening very fast because it takes time to catch up there. We keep being active in the market, but it will take some time before this balance is stabilized. The burgundy part is obviously the large company. 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. 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. There's been a 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. The customers use digital banking channels, which is something that we are very happy about. Both purchase and bank online, and that's something that makes us very happy. About the leasing now, we distribute leasing products via our banking network and via our Alior Leasing company. The 30% growth is much higher than the market has grown, which makes us very happy because we've 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. 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've had a few in the second quarter. The market has appreciated us in a number of fields, but 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.
Hello and welcome. Quarter two ended with a very safe capital and liquidity performance. Liabilities. We have issued SNP 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 six months, first six months of 2026. Coming back to liquidity indicator, we had a significant surplus of capital on all levels, as a result, we can continue our growth. Non-performing loans ratio, we continue to go down below 5% of such loans, and it's realistic. 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 the first six months 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. CoR totaled 0.71%, we continue to implement our strategy, this year and next year, implementing 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 second quarter totaled more than three billion. For retail customers, at the end of first six months, it stood at 2.1%. In case of business customers, the quarter ended with 11.8%.
Considering that no major changes and 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 quarter two, sales of non-performing loans portfolio led to CoR 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 and in line with our expectations. Of course, in the first six months 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. 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 C/I results as a result of CJEU judgment, is 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 is PLN 866 million altogether in the first six months of 2026. If we compare it to the previous quarter, where we reported PLN 403 million, considering only CJEU results, we would have profit aligned to our expectations. On the next slide, we have a more detailed breakdown of our profits and revenue. We have three events in the quarter, in the first six months, which have a significant impact on the results. 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 first six months of the year. Our key indicators, let's start with ROE.
It is 11.5%, but considering the one-off event, it is 14.3%, so it is a good result. 43% of CoR 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 is the slide I have 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%. If we exclude this effect, the result would be 5.11%. That is 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. Cost-to-income ratio, 37.7%. Fees and commissions. Piotr has mentioned that this is the key pillar of our strategy, 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. 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 PLN 6 million-PLN 7 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, and our strategy is translated directly into our parameters. In black font, these are results without the one-off event. PLN 1.5 worth of profit, PLN 367 million in profits, 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.
Thank you very much, Piotr. It is now the beginning of our Q&A session.
Loans for SMEs, one of the main, the most critical segment of the market seems to be stagnating. What are the outlooks for the segment?
I would not 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%, so 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 the 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 loans which have been paid, for which this judgment may be relevant when terms and conditions of such loans were amended?
Quite a few questions. Let us 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 these. We already dropped the sale of loans where we generated the non-interest costs. We are respecting the ruling, we have set up a correction of the interest results in the value of PLN 130 million gross and as for the net result is PLN 96 million. We believe that the ruling starts or should be implemented from the 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 and a half years ago.
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.
Thank you very much. Let's move on to the next question. What is the level of commission income can we expect after a good second quarter? In the results of the second quarter, 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 in the activity of the stock market, for instance. In our assessment, we are witnessing a regular business development there. We expect in the subsequent quarters, in the second half of the year, the commission values, which will be not lower from what we reported in the first half.
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. There is a lot of pressure. We included some modification in installment loans, and we are quite conscious in withdrawing from certain types of contracts because of the lower margins. 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. 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 rates is conducive to providing more loans to customers. Consumer loans, as you will notice, were used by some specialized providers. 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, 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 of ratio?
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WFT. 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, with regard to that ratio. We do not see a problem with meeting the requirements.
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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, and the other issue is the structure of the portfolio. Also, we need to take into account the market situation and the prices which are offered by businesses which purchase these liabilities.
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The next question.
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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?
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 a [Inaudible] contracts. We can be more selective in our investments and therefore to the costs which these investments generate. 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 costs and give us an opportunity to develop our products.
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Can you comment on the high level of cost 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.
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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. We will keep maintaining that using the selection and the products. We will hope to maintain it above 5%.
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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, C-I-T tax, will impact. Also the growth, the volume growth. Zdzisław mentioned about the margins. We want to maintain a high level of these. What is however noticeable are some vectors which differ from what we envisaged or assumed previously. The market is growing inwardly. 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, 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 two years ago. 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 company 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 trend. There's a lot of dynamics in the market, and this will certainly impact the competitiveness and the offer presented to the customer.
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What about the CJEU ruling in terms of the SKD loans, the sanctions of free bank loans.
CJEU has nothing to do with the sanction of the free bank loan, 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, so you should not mix those two.
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There's a lot of question 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 CoR is about 20 basis points. That is all the questions that we've had. Thank you very much. I want to thank everyone for their attention