Financial results of Alior Bank S.A. Capital Group
Income statement
Details of the income statement of Alior Bank S.A. Capital Group are presented in the table below:
| 01.01.2019-31.12.2019 (in PLN thousand) | 01.01.2018-31.12.2018 (in PLN thousand) | Change (in PLN thousand) | Change (%) | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Interest income | 01.01.2019-31.12.2019 (in PLN thousand) | 3 905 769 | 01.01.2018-31.12.2018 (in PLN thousand) | 3 805 457 | Change (in PLN thousand) | 100 312 | Change (%) | 2,6 | |
| Income of a similar nature | 01.01.2019-31.12.2019 (in PLN thousand) | 153 525 | 01.01.2018-31.12.2018 (in PLN thousand) | 150 915 | Change (in PLN thousand) | 2 610 | Change (%) | 1,7 | |
| Interest expense | 01.01.2019-31.12.2019 (in PLN thousand) | -877 846 | 01.01.2018-31.12.2018 (in PLN thousand) | -871 848 | Change (in PLN thousand) | -5 998 | Change (%) | 0,7 | |
| Net interest income | 01.01.2019-31.12.2019 (in PLN thousand) | 3 181 448 | 01.01.2018-31.12.2018 (in PLN thousand) | 3 084 524 | Change (in PLN thousand) | 96 924 | Change (%) | 3,1 | |
| Fee and commission income | 01.01.2019-31.12.2019 (in PLN thousand) | 1 165 568 | 01.01.2018-31.12.2018 (in PLN thousand) | 1 099 468 | Change (in PLN thousand) | 66 100 | Change (%) | 6,0 | |
| Fee and commission expense | 01.01.2019-31.12.2019 (in PLN thousand) | -498 994 | 01.01.2018-31.12.2018 (in PLN thousand) | -389 469 | Change (in PLN thousand) | -109 525 | Change (%) | 28,1 | |
| Net fee and commission income | 01.01.2019-31.12.2019 (in PLN thousand) | 666 574 | 01.01.2018-31.12.2018 (in PLN thousand) | 709 999 | Change (in PLN thousand) | -43 425 | Change (%) | -6,1 | |
| Dividend income | 01.01.2019-31.12.2019 (in PLN thousand) | 344 | 01.01.2018-31.12.2018 (in PLN thousand) | 275 | Change (in PLN thousand) | 69 | Change (%) | 25,1 | |
| The result on financial assets measured at fair value through profit or loss and FX result | 01.01.2019-31.12.2019 (in PLN thousand) | 102 010 | 01.01.2018-31.12.2018 (in PLN thousand) | 97 684 | Change (in PLN thousand) | 4 326 | Change (%) | 4,4 | |
| The result on derecognition of financial assets and liabilities not measured at fair value through profit or loss | 01.01.2019-31.12.2019 (in PLN thousand) | 46 236 | 01.01.2018-31.12.2018 (in PLN thousand) | 77 829 | Change (in PLN thousand) | -31 593 | Change (%) | -40,6 | |
| Measured at fair value through other comprehensive income | 01.01.2019-31.12.2019 (in PLN thousand) | 38 807 | 01.01.2018-31.12.2018 (in PLN thousand) | 76 473 | Change (in PLN thousand) | -37 666 | Change (%) | -49,3 | |
| Measured at amortized cost | 01.01.2019-31.12.2019 (in PLN thousand) | 7 429 | 01.01.2018-31.12.2018 (in PLN thousand) | 1 356 | Change (in PLN thousand) | 6 073 | Change (%) | 447,9 | |
| Other operating income | 01.01.2019-31.12.2019 (in PLN thousand) | 143 466 | 01.01.2018-31.12.2018 (in PLN thousand) | 127 045 | Change (in PLN thousand) | 16 421 | Change (%) | 12,9 | |
| Other operating costs | 01.01.2019-31.12.2019 (in PLN thousand) | -345 605 | 01.01.2018-31.12.2018 (in PLN thousand) | -141 807 | Change (in PLN thousand) | -203 798 | Change (%) | 143,7 | |
| Net other operating income and expenses | 01.01.2019-31.12.2019 (in PLN thousand) | -202 139 | 01.01.2018-31.12.2018 (in PLN thousand) | -14 762 | Change (in PLN thousand) | -187 377 | Change (%) | 1 269,3 | |
| General administrative expenses | 01.01.2019-31.12.2019 (in PLN thousand) | -1 630 104 | 01.01.2018-31.12.2018 (in PLN thousand) | -1 705 003 | Change (in PLN thousand) | 74 899 | Change (%) | -4,4 | |
| Net expected credit losses | 01.01.2019-31.12.2019 (in PLN thousand) | -1 437 158 | 01.01.2018-31.12.2018 (in PLN thousand) | -1 047 818 | Change (in PLN thousand) | -389 340 | Change (%) | 37,2 | |
| The result on impairment of non-financial assets | 01.01.2019-31.12.2019 (in PLN thousand) | -5 946 | 01.01.2018-31.12.2018 (in PLN thousand) | -6 251 | Change (in PLN thousand) | 305 | Change (%) | -4,9 | |
| Banking tax | 01.01.2019-31.12.2019 (in PLN thousand) | -225 974 | 01.01.2018-31.12.2018 (in PLN thousand) | -208 186 | Change (in PLN thousand) | -17 788 | Change (%) | 8,5 | |
| Gross profit | 01.01.2019-31.12.2019 (in PLN thousand) | 495 291 | 01.01.2018-31.12.2018 (in PLN thousand) | 988 291 | Change (in PLN thousand) | -493 000 | Change (%) | -49,9 | |
| Income tax | 01.01.2019-31.12.2019 (in PLN thousand) | -242 459 | 01.01.2018-31.12.2018 (in PLN thousand) | -274 918 | Change (in PLN thousand) | 32 459 | Change (%) | -11,8 | |
| Net profit | 01.01.2019-31.12.2019 (in PLN thousand) | 252 832 | 01.01.2018-31.12.2018 (in PLN thousand) | 713 373 | Change (in PLN thousand) | -460 541 | Change (%) | -64,6 |
Particular items of the separate income statement of Alior Bank S.A. are presented below in the table:
| 01.01.2019-31.12.2019 (in PLN thousand) | 01.01.2018-31.12.2018 (in PLN thousand) | Change (in PLN thousand) | Change (%) | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Interest income | 01.01.2019-31.12.2019 (in PLN thousand) | 3 921 231 | 01.01.2018-31.12.2018 (in PLN thousand) | 3 807 487 | Change (in PLN thousand) | 113 744 | Change (%) | 3,0 | |
| Income of a similar nature | 01.01.2019-31.12.2019 (in PLN thousand) | 153 525 | 01.01.2018-31.12.2018 (in PLN thousand) | 150 915 | Change (in PLN thousand) | 2 610 | Change (%) | 1,7 | |
| Interest expense | 01.01.2019-31.12.2019 (in PLN thousand) | -869 540 | 01.01.2018-31.12.2018 (in PLN thousand) | -868 433 | Change (in PLN thousand) | -1 107 | Change (%) | 0,1 | |
| Net interest income | 01.01.2019-31.12.2019 (in PLN thousand) | 3 205 216 | 01.01.2018-31.12.2018 (in PLN thousand) | 3 089 969 | Change (in PLN thousand) | 115 247 | Change (%) | 3,7 | |
| Fee and commission income | 01.01.2019-31.12.2019 (in PLN thousand) | 1 066 391 | 01.01.2018-31.12.2018 (in PLN thousand) | 1 043 793 | Change (in PLN thousand) | 22 598 | Change (%) | 2,2 | |
| Fee and commission expense | 01.01.2019-31.12.2019 (in PLN thousand) | -486 569 | 01.01.2018-31.12.2018 (in PLN thousand) | -375 893 | Change (in PLN thousand) | -110 676 | Change (%) | 29,4 | |
| Net fee and commission income | 01.01.2019-31.12.2019 (in PLN thousand) | 579 822 | 01.01.2018-31.12.2018 (in PLN thousand) | 667 900 | Change (in PLN thousand) | -88 078 | Change (%) | -13,2 | |
| Dividend income | 01.01.2019-31.12.2019 (in PLN thousand) | 7 362 | 01.01.2018-31.12.2018 (in PLN thousand) | 7 597 | Change (in PLN thousand) | -235 | Change (%) | -3,1 | |
| The result on financial assets measured at fair value through profit or loss and FX result | 01.01.2019-31.12.2019 (in PLN thousand) | 102 759 | 01.01.2018-31.12.2018 (in PLN thousand) | 96 974 | Change (in PLN thousand) | 5 785 | Change (%) | 6,0 | |
| The result on derecognition of financial assets and liabilities not measured at fair value through profit or loss | 01.01.2019-31.12.2019 (in PLN thousand) | 46 236 | 01.01.2018-31.12.2018 (in PLN thousand) | 77 829 | Change (in PLN thousand) | -31 593 | Change (%) | -40,6 | |
| Measured at fair value through other comprehensive income | 01.01.2019-31.12.2019 (in PLN thousand) | 38 807 | 01.01.2018-31.12.2018 (in PLN thousand) | 76 473 | Change (in PLN thousand) | -37 666 | Change (%) | -49,3 | |
| Measured at amortized cost | 01.01.2019-31.12.2019 (in PLN thousand) | 7 429 | 01.01.2018-31.12.2018 (in PLN thousand) | 1 356 | Change (in PLN thousand) | 6 073 | Change (%) | 447,9 | |
| Other operating income | 01.01.2019-31.12.2019 (in PLN thousand) | 121 611 | 01.01.2018-31.12.2018 (in PLN thousand) | 92 645 | Change (in PLN thousand) | 28 966 | Change (%) | 31,3 | |
| Other operating costs | 01.01.2019-31.12.2019 (in PLN thousand) | -341 193 | 01.01.2018-31.12.2018 (in PLN thousand) | -140 681 | Change (in PLN thousand) | -200 512 | Change (%) | 142,5 | |
| Net other operating income and expenses | 01.01.2019-31.12.2019 (in PLN thousand) | -219 582 | 01.01.2018-31.12.2018 (in PLN thousand) | -48 036 | Change (in PLN thousand) | -171 546 | Change (%) | 357,1 | |
| General administrative expenses | 01.01.2019-31.12.2019 (in PLN thousand) | -1 529 387 | 01.01.2018-31.12.2018 (in PLN thousand) | -1 630 255 | Change (in PLN thousand) | 100 868 | Change (%) | -6,2 | |
| Net expected credit losses | 01.01.2019-31.12.2019 (in PLN thousand) | -1 419 335 | 01.01.2018-31.12.2018 (in PLN thousand) | -1 034 039 | Change (in PLN thousand) | -385 296 | Change (%) | 37,3 | |
| The result on impairment of non-financial assets | 01.01.2019-31.12.2019 (in PLN thousand) | -5 946 | 01.01.2018-31.12.2018 (in PLN thousand) | -6 251 | Change (in PLN thousand) | 305 | Change (%) | -4,9 | |
| Banking tax | 01.01.2019-31.12.2019 (in PLN thousand) | -225 974 | 01.01.2018-31.12.2018 (in PLN thousand) | -208 186 | Change (in PLN thousand) | -17 788 | Change (%) | 8,5 | |
| Gross profit | 01.01.2019-31.12.2019 (in PLN thousand) | 541 171 | 01.01.2018-31.12.2018 (in PLN thousand) | 1 013 502 | Change (in PLN thousand) | -472 331 | Change (%) | -46,6 | |
| Income tax | 01.01.2019-31.12.2019 (in PLN thousand) | -252 564 | 01.01.2018-31.12.2018 (in PLN thousand) | -282 428 | Change (in PLN thousand) | 29 864 | Change (%) | -10,6 | |
| Net profit | 01.01.2019-31.12.2019 (in PLN thousand) | 288 607 | 01.01.2018-31.12.2018 (in PLN thousand) | 731 074 | Change (in PLN thousand) | -442 467 | Change (%) | -60,5 |
In 2019, the net profit of Alior Bank S.A. Capital Group (attributable to shareholders of the parent company) amounted to PLN 253 million and was lower than the net profit obtained in the previous year by PLN 461 million, i.e. by 65%.
Total income (in PLN million) – consolidated data
Net interest income is the main component of the Group’s income responsible for 84% of income. Its inconsiderable Y/y growth (3%) resulted from the limited increase in the loan volumes and a larger deposit base as well as the effects of the CJEU judgement on early repayment of retail loans (its impact on the net interest income in 2019 amounted to PLN 135 million).
The net customer loan portfolio increased by 3% y/y, and customer deposits increased by 4%. Adequate pricing policy in both deposit and credit products had a positive impact on the level of interest income generated in conditions of the Bank’s operation in the environment of low interest rates. It is worth mentioning that the cost of financing in 2019 decreased to – 1.17% from compared to – 1.20% in 2018.
The net interest margin broken down into individual loan products and the average interest rate on deposits is presented in the table below.
| 2019 (%) | 2018 (%) | ||||
|---|---|---|---|---|---|
| Loans | 2019 (%) | 2018 (%) | |||
| Retail segment, of which: | 2019 (%) | 2018 (%) | |||
| Consumer loans | 2019 (%) | 7,50 | 2018 (%) | 8,73 | |
| Loans for residential properties | 2019 (%) | 4,35 | 2018 (%) | 4,24 | |
| Business segment, of which: | 2019 (%) | 2018 (%) | |||
| Investment loans | 2019 (%) | 4,76 | 2018 (%) | 3,95 | |
| Working capital loans | 2019 (%) | 5,30 | 2018 (%) | 5,36 | |
| Deposits | 2019 (%) | 2018 (%) | |||
| Retail segment | 2019 (%) | 2018 (%) | |||
| Current deposits | 2019 (%) | 0,91 | 2018 (%) | 0,79 | |
| Term deposits | 2019 (%) | 1,84 | 2018 (%) | 1,81 | |
| Business segment | 2019 (%) | 2018 (%) | |||
| Current deposits | 2019 (%) | 0,25 | 2018 (%) | 0,10 | |
| Term deposits | 2019 (%) | 1,58 | 2018 (%) | 1,57 |
Net fee and commission income went down by 6.1 % to PLN 667 million. This result stemmed from fee and commission income of PLN 1 166 million (y/y increase by 6%) and fee and commission expenses of PLN 499 million (y/y increase by 28%).
The main reason for the decrease were brokerage fees, which is the result of regulations introduced by the Polish Financial Supervision Authority at the end of 2018.
The main component of fee and commission income are commissions related to loans, accounts, transfers, cash deposits, etc. In 2019, they amounted to PLN 722 million and accounted for 62% of fee and commission income. Their year-over-year increase (4.5%) was mainly due to the increase in commissions related to loans as a result of a limited volume growth.
Fee and commission income (in PLN million)
Net trading income and other net income (the total of the following income statement items: net gain/(loss) on financial instruments measured at fair value through profit or loss and net gain/(loss) on revaluation, net gain/(loss) on other financial instruments, net gain/(loss) on derecognition of assets and liabilities not measured at fair value through profit or loss, net other operating income and expenses) went down in 2019 jointly by PLN 215 million to PLN -54 million, as a result of a significant impact created in 2019, provisions for historical returns of part of the commission in the case of loans repaid before 11 September 2019 in the amount of PLN 243 million. As regards the net trading income itself, the Group noted a Y/y increase by 4.4% to PLN 102 million, i.e. by PLN 4.3 million.
In 2019, operating expenses amounted to PLN 1 630 million and were lower than operating expenses incurred in 2018 by PLN 75 million, i.e. by 4.4%.
Personnel costs in the period in question amounted to PLN 781 million and were 12.8% lower than personnel costs incurred in 2018.
Overhead costs in 2019 amounted to PLN 577 million and were lower by 5.4% than overheads incurred in 2018.
As a result, in 2019 the Cost/Income ratio was at the level of 43.0% compared to 43.1% in 2018.
Operating expenses (in PLN million)