GDANSK – Poland’s Alior Bank is targetting a return on equity (ROE) of more than 13% by the end of 2024, up from 7.6% at the end of September, under its new strategy, it said on Monday.
The bank also aims to be able to pay dividends or buy back shares during that period.
The lender wants to strengthen its capital base and reduce credit risk. It seeks to increase its Tier 1 capital ratio to above 13.5% from 12.4% as last reported. The bank also plans to improve its Total Capital Ratio to above 15% from 13.7%.
Alior aims to maintain low costs associated with credit risk. The lender wants to lower its current 1.6% cost of risk (CoR) and to limit the ratio of non-performing loans (NPL) to below 10% from 11% from the end of September.
Among the targets in the new 2023-2024 strategy is also a planned decrease in its cost to income ratio to below 45% from the last reported 50.4%.