Alior Bank Sa Unsp/Adr

Good morning, this is Dominik Prokop from the Department of Investor Relations and Property Supervision. I would like to welcome everyone to the Alior Bank results conference, summarizing the results after the first half of 2025. As every quarter, traditionally, in the first part of our conference,

Traditionally, the results of the Bank and the trends accompanying these results will be discussed by members of the Board, President Piotr Żabski, who will sum up the most important trends in the business sector, Zdzisław Wojtera will present the finance results and Marcin Ciszewski will present the risk sector results. In the second part of the meeting, after the presentation, we will move on to a question and answer session. Before I hand over to Piotr, I encourage all those who are watching us to ask questions already in the first part of the conference, thanks to which we will be able to move on smoothly to the Q&A session. I hand over to Piotr Żabski. Good morning, everyone. May I welcome everyone at the meeting of the Board, which is a traditional quarterly meeting to present the results of the Bank. This is the first quarter after our strategy was announced, and the second quarter were the strategies in place, so there will be some reference to what had been discussed in our three-year strategy. As concerns the operating activities, Let me tell you about some general trends and results. There will be division into business lines. And in the further parts, my colleagues will go deeper into the data and a handful of details will be presented to you. As regards the banks operating activities, the second quarter was a very good one for us. We noted 6% increase of revenues. In the second quarter, we had 1.5 billion revenues. And in two lines, both in the interest and commission results, we had 4% and 3% growth. So the net profit of the whole of the bank was 640 million and it was by 50 million higher, 9% more compared to the same period of the previous year. The ROE reached 22%, as you can see in the slide. What we would like to draw your attention to is also the decrease in the cost of risk due to the recognition of profit on the sale of the NPL portfolio. It reached the result of 0.2%, which is quite notable as far as the COR is concerned. There is also a continued decline in the NPL ratio to 6.18%. The sale of the NPO portfolio obviously had an impact on that, but in our strategic aims, we are certainly moving on target. As far as our capital position is concerned, there is a surplus over Tier 1 to almost 5 billion and TCR almost 4 billion, which, vis-à-vis our strategy, provides us an increase of scale and a safe buffer. The TCR at the level of 17% is certainly considerably above the reference regulatory benchmark. A few additional figures regarding our activities in the last quarter and indeed the first half of the year. The number of relationship customers grew. We now have 1.64 million customers. There was a growth of 81,000 compared to the previous year. The mobile app users also grew. We now have 1.5 million who use the app, which is by 13% more than a year ago. We had some problems concerning the use of the app, but we overcame them. There was a growth in the deposit portfolio. We now have almost 80 billion lotties in deposits, an increase of 8%. There is also a strong growth in the area of mortgage loans. In the second quarter, we granted loans to the tune of 1.3 billion zlotys, which is almost a tough hold. increase compared to a year ago. The share of these loans and the general sales portfolio is one third. You also probably realize that we paid out the dividend. This is not a new piece of information, but this is part of our strategy. Some additional info as regards the whole of the bank. Our assets is almost 100 billion lot. There was a 10 percent growth. Deposits grew by 8 percent to almost 80 billion and the gross performing loans grew by four percent to the amount of 62 billion an important bit of information which you find in the footnote at the bottom the four percent growth does not take into account this by sellback transactions so whether working loans Now, additional information in the top line in yellow, there is the second quarter and the bottom line, the whole of the first half of the year. CI 36.1 will tell you in detail about what brought about this cost to income ratio at such a good level. NIM discounts the drop in interest rates, which you can see, ROE almost 22% for the whole of the half of the year. Cost of risk 0.20% drop by 0.03% points and

As regards the capital NPL, 6.18%.

Now, two divisions, individual customers and business customers. As concerns relationship customers, we had a growth by 5%. The users of mobile app grew by 13%. As far as the share of the mobile app among relationship customers, the growth represents 4.7%. And to end sales is on the rise and we hope that the new solutions which we will be offering and which will enter the market will even increase this positive growth trajectory in the mobile channel. Now, a few words about other elements, the balance of assets of retail customers, the top left-hand corner. quarter-on-quarter and year-on-year, we have 10% slightly modification between different positions. The biggest growth that we noted was in the area of investment funds, which we're very happy about because this is one of the elements of the growth as far as our commission As for the gross loans to retail customers, there's slight change in the share of the consumer loans and real estate loans. There are more real estate loans now than the consumer loans. which at the bottom left-hand corner, if you break it down, you see a stable position as regards the installment loans. The total growth in the volume is almost 20%, which is considerable. And in the installment loans in the first and the second quarter and the whole of the installment sector were worse. There was a negative dynamic, but we maintained our position, which is very good. There is a growth in the cash loans, the high commission loans, which provides a good boost to our income.

I think the most interesting information in the bottom right corner shows us how mortgage loans are growing in terms of sales. The last time that we were comparing ourselves to the situation where the safe loan 2% was quite significant. If we see the pink color, that's almost a twofold increase. in that item and that makes us very happy because on the one hand we are stabilizing part of the assets, extending the assets and we know that this is a protected portfolio marked by lower risk. A glance at business customers, that's our second business line. We will soon be explaining also in greater details what it looks like but when it comes to the portfolio or the volume of loans is stable whereas at the same time the total credit limit allowed to business customers is on the increase while at the same time We have a significant decrease in non-performing loans. We are working on it very much. So these two curves are balancing each other. Hence, the portfolio is still at a flat position. It's not growing. If you look at the trends, we grow faster when it comes to sales. Then we are decreasing the NPOs, which means that it will be visible soon. When it comes to the deposit volume, we have an increase of 7% year-on-year. Active debit cards, 4% year-on-year, 6% when it comes to the micro segment. Importantly, the micro segment had negative dynamics in the first quarter.

We did not

see or the market was not performing as we assumed in the strategy, the 67% in terms of our activity, I mean our activity was focused on preparing the newest solution to be ready this autumn and hopefully with a new application We believe that this result will be significantly better. Our company's activity, the largest subsidiary activity, which is earlier leasing, the portfolio reached almost $7 billion, specifically $6.8 billion, and grew by 6% year-on-year. As you can see, quarter to quarter by 2%. The sales of leases is marked by double-digit growth, 11% quarter and quarter. It's important that we have specialized in certain niches. A very strong leg of it is a very significant share in the leases of vehicles exceeding 3.9%. five tons, where we even have a market share of 17%. That's only to draw attention to this. A couple of additional words on pursuing our strategy when it comes to the transformation or sustainable funding. Firstly, we have a comprehensive offer for entrepreneurs, a specific proposal. to fund energy from renewable sources such as wind, sun, water, biogas. We also fund hybrid installations. We are ready and we've started being very active in this market. A second item is that in cooperation with BGK, we have obtained access to European funds, EU funds. Owing to this, in several provinces, Wielokopolskie, Podlaskie, Małopolskie, Zachodniopomorskie and Łódzkie, we've been able to provide our offer of low-interest loans to reconstruct and expand installations connected with RES and to improve energy efficiency. which means that we are also being active in this area, which is also aligned with the assumptions of our strategy. I would end on this slide and ask Marcin to present our results when it comes to the credit risk. Good morning, ladies and gentlemen. Piotr has mentioned our safe capital position in his statement and about the significant surplus regarding the regulatory minimums. We intend to further strengthen our position and to having obtained the appropriate permission also strengthen our capital requirements.

In the first

We have performed an early redemption of EBSI response. That's 400 million zlarys with a 3.11 margin and issued a serious bonds of 195 margin. which translates into a very good ratio, exceeding 20%. In the further part of this year, we are considering another issuance of MRO bonds with a value of approximately 500 million zloty. When it comes to liquidity ratios, both both short-term and long-term are also at a safe level. LCR has attained to 227% and NSFR 146. Passing on to credit risk, we close the cost of risk at the level of 0.47%. however these amounts are lowered by the one of result of the npl sales sales transactions excluding that transaction the cost of risk would be at 0.76 which is below what we've assumed in the strategy and what you've been We've been communicating to you for a couple of quarters now that our current risk profile should not exceed 0.8%. The profit on the aforementioned sales amounted to over 100 million zloty's. The sale of that portfolio as well as further restructuring and debt collecting activities have improved our NPL ratio and at the end of the second quarter it amounted to 6.18%. We are sustaining our strategic assumptions that BY THE END OF 2026 WE SHOULD REDUCE THE NPO BELOW TO THE LEVEL BELOW 5 PERCENT ON THE NEXT SLIDE YOU CAN SEE THAT THE GRADUAL WORK WHEN IT COMES TO BOTH THE CELLS OF NPO AND THE COLLECTION IS HELPING US REDUCE THE NON-PERFORMING LOWS AT THE END OF this quarter we went below 4 billion with a stable coverage ratio and by splitting our impaired loans into retail segment and the corporate segment in the retail segment we are at the market level the whole share of non-performing impaired loans is 2.67 in the individual customers portfolio. In the case of corporate customers, it's higher at twelve point forty one. However we have also noted a decrease both on a quarter to quarter and year to year basis. The cost of risks when split to both segments they were impacted by the sales. However most of the 85% was the retail portfolio, 15% was represented by mostly the corporate portfolio, hence the negative COR on the retail segment and a positive of 0.78% in the corporate segment. Thank you very much. Over to Zdzislaw, who will present the financial results.

Thank you, Marcin. Good morning, everyone. Let us move on to the financial part. As Piotr mentioned, our income year-on-year for the quarter rose by 6%. And taking into account the first half of this year compared to the first half of our previous year, it grew by 2%. If we look at the net profits in the red colour at the bottom, you see that there was a growth of 54 billion zlotys between quarters and between half years, it dropped by 4%. It needs to be explained that in the first and the second quarter we took into account the EFG costs. We move on to the major part of the income statement. The first column in yellow is the second quarter of this year. The income grew by 6%, interest grew by 4%, the commission grew by 3%. There's a dedicated slide which gives more details about that. The cost of the group is 695 million zlotys. This is a 7% change year on year and there will be a separate slide to describe that. Other lines which will be Important is the legal risk. We recognise 44 million zlotys of the additional legal risk of mortgage loans in foreign currencies. This relates to growth in cases. It is not from our point of view particularly big item in the financial statement, you will see that there was 39 additional cases in the first quarter, sorry, the first half of this year, about 20 each quarter. There is a model change. which reflects the reality and our expectations. We do not expect that this line would grow to some considerable degree. Going further down, we see gross profit at the level of 827 million and net profit at the level of 640 million. When looking at some more important lines, we have the interest margin which went down by eight percentage points we brought down the financing cost even though the deposit base grew the financing cost dropped by 16 percentage points cost of risk which martin talked about because of this one of transaction in the half year is at a very satisfying level of 47 percentage points.

Cost to income 36.1% and return on equity 22%.

Now, moving on to the interest income, which is a considerable part of the bank's operations. When you look at the graphs, they are slightly more complicated. However, there is a flat line. If you look at the first quarter, there is even 1% drop. Well, we should look at our interest result from a few standpoints. Firstly, our balance sheet. When you look at our products, you will see that there is a considerable growth in the mortgage loans share, which stabilizes our income over the long-term perspective and helps build our relation with customers, which is a very crucial part of our strategy. However, as for the margin, It is lower than the cash loans, so it translates into a lower interest margin. And the other perspective is that a considerable part, almost 90% of the sales in the previous quarter, relates to products which are fixed rate based. And as you well know, in the fixed rate product, we have a certain market expectation built in. And the expectation is that the interest rate will go down. So when we sell our products, By definition, there is a slightly lower level of interest income than would otherwise be. If you look at the top right-hand corner, you will see that indeed we go down a long flight.

5.88 to 5.74.

If we introduce the cost of risk, it is at a quite high level, much higher, considering our business model and the market. So 5.15 to 5.54, if we take into account the one-off event. And the cost of financing, which we managed to bring down, it sets off the drop in the interest income. If we look at the second quarter, what will be crucial is what will happen, what will be the decision of the... monetary council and that will translate into the way the interest rate will look like which will obviously translate into how we will be selling our products what we see today looking at our balance sheet and its development at our cost of financing it seems to us that our interest margin should not go below 10 percentage points In the next slide, we see the net fees and commission income. Between the first and the second quarter, we had a 6% growth there. What is important This is the first part of the two bars, which is the customer activity, 41.45 million. It's then the brokerage commission. The is a big part of that. This is a fairly new company that was created and our currency exchange transactions provides good results. The commission grew from 73 to 79. We are very happy that the customers are using this particular channel. And the last part of the P&L is the cost dynamics. As we declared in the strategy at the previous meetings, what we would like our cost to be is to be more. under control, more predictable, under careful management, and that's what we are able to achieve. If we take BFG costs off, then the costs of management are comparable. they're practically at the same level between the first and the second quarters. What is important is that the costs grew by 7% between, but if we deduct the BFG costs, then the costs which are under our management grew by only 5%, which is definitely below the market average, and we expect that in the subsequent quarters the costs will be maintained under this strict discipline. They should not be higher than just a few percent growth level.

And the cost income ratio of 36.1, as I mentioned, normalized, depicts a more consolidated view once you exclude the loan repayment relief period. It's comparable with 31 this year. Thank you very much. That's everything as regards to financial information. Over to Piotr. Thank you very much, gentlemen. Just to put an overarching component to our statements, I'd like to draw attention to several important facts. We have been very consistently implementing, striving to implement our ambitious strategy. We have announced a strategy and as you've seen in the figures, most of the parameters and readings that we recognize today are aligned to our. assumptions first of all we are still very much present in the consumer finance market notwithstanding the performance of that market because we're talking about negative dynamics our brand is our major asset as we've mentioned we've refreshed our brand rejuvenated it and started reaching groups of younger target customers, which means that the perception of our brand among people who are not our customers is at play. highest level over the last couple of periods which shows that this component has also started performing well. Our agile business model built on modern technologies and a variety of distribution channels is being reinforced even more given that the bank is scaling up the agile model of our capacities. The stable and predictable costs of risks, they are dropping. The fact that we were a bank that was what distinguished itself in the negative sense are part of history. Our new sales are at a different level when it comes to the risk predictability and stability. The returns that we deliver to our shareholders are still high because they represent roughly 20% as we've promised. Our stable capital position still provides us with a reason to feel good when we are thinking in terms of one of the strategic pillars that mentioned the increase in the scale. At the same time, we are still benefiting from the fact that we are working with the or we're part of the group of the leader in the insurance market in Poland. We're benefiting from the access to their products and implementing new solutions that we share with our customers. All of this gives us a sense of calm and comfort in the sense that this year should be another year when we are positive about a prospective dividend payment. As you can see, the bank is doing good. And having said that, I would conclude our presentation when it comes to the slideshow, and we will be very happy to take any of your questions.

Thank you very much, Piotr.

And the first question is, how much was the WFD and SOD and II at the end of the second quarter. At the end of June, WFD was 43.6. The reference period was 40%. the sot and ai four point was four four point four with the required level of five percent at tier one thank you very much marching the next question which part of the portfolio is based on the periodically fixed rate when it comes to the fixed rate the As of the end of June, we have 35% of the loan portfolio are fixed rate loans. And as I mentioned in the last quarter, the sales of products of fixed rate loans represent 90%. Thank you very much. What was the value of the NPL portfolio sold in Q2 2025. As I mentioned to you in the presentation part of that portfolio was a balance sheet part and an off balance sheet when it comes to the balance sheet part was roughly 180 billion Zloty's worth. And off balance sheet, it was roughly three times more. Thank you very much. The next question, the number and value of litigations accelerated in Q2. The bank also increased its provisions for that risk. What were the the verdicts and what number are expected by the board. When it comes to the statistics, they are maintained at the existing level. We don't observe any increases. Still, very importantly, and notably, the bank wins a vast majority of lawsuits, no matter how active the law firms are that have built their business case on

trying to achieve their business goals.

In that realm, we don't expect any changes. At least until the next verdict of the European Court of Justice, because such verdicts might change the landscape. Thank you very much. Now the next question. Could you update the bank's sensitivity to NAI sensitivity to interest rate changes? Yes, the answer is quite straightforward when it comes to this question because it's a standard question which gets repeated in all the conferences, but I'd like to emphasize that as of today in the banking sector we are observing a major change because there's a relatively large number of assets that are based on a fixed rate or a temporarily fixed rate. And this means that the decision on changing the interest rate by 100 pips does not have to translate into the decrease in interest rates on an one-off basis. So this is rather a category that we have to keep in mind. And we are estimating the impact of a decrease by 100 basis points by 100 million zlatys. The next question, how does Allure evaluate the profitability of some banks express their doubts when it comes to the sales of mortgage loans, whereas at Allure Bank, the sales of mortgage loans are significantly growing. The sales of mortgage loans is one of the components of our strategy. It's about building relationships. So when it comes to the consumer finance, we will be strong, but we want to increase the transaction banking. For this, we would need longer lasting relationships with our customers than it would stem from consumer loans. That's why we are so active in the mortgage market. We have an idea of how to deliver products to customers. We know how to do it in consumer finance. We will be translating that into transaction banking. And this combination means that we are accomplishing our goals when it comes to the profitability of this product.

Thank you very much, Piotr.

The next question, why is the interest result of Allure displaying lower dynamics than the market average again? Let me come back to what I was describing in one of the slides depicting the income INTEREST INCOME. ALIOR BANK IS NOT ONE OF THE TOP FIVE BANKS, IT'S RATHER IN THE TOP TEN. OUR TOTAL ASSETS ARE LOWER AND WHEN THEY WERE INSTALLMENTS, HIGHER PURCHASE OR CONSUMER FINANCE PREDOMINATING, IT WAS OBVIOUS THAT OUR NII AND MARGIN WAS AT A RELATIVELY HIGH LEVEL. TODAY THAT WE ARE BUILDING the bank in line with the strategy, the relationship-based strategy based on other products. We are implementing mortgage loans, which translates into other rates of return as presented by Piotr. It's definitely satisfying for us, but the position is slightly different. And another thing is the mix of products when it comes to the fixed and variable interest rate based products. Fixed rate products play a very important role. It's difficult to compare with banks that have a lower sensitivity to that. the implementation of such a volume of products based on the fixed rate is visible more rapidly. I think it's also a simplification to compare because every bank has a specific situation and it's worth emphasizing everyone has a different product mix and different dynamics. So I think it's slightly incomparable when it comes to the dynamics.

Thank you.

The next question crops up frequently at conferences. Is Alio part of the dialogue in the changes in the PISA structure and what are the possible scenarios for Alio Bank? The scenarios are still the same. There is nothing revelatory in the discussion which keeps cropping up every now and then. Just this week, there was an interview given by two presidents, which talked about the transaction within the PZU Group. Taking into account the possibility that a transaction will transpire, then there will be a certain level of ineffectiveness because we will have a bank, an insurer and a bank again. This is not an effective structure from a number of points of view. So in that context, the discussion is taking place. Both presidents, however, mentioned that the transaction has been put off. it is very complicated it requires a lot of permits and agreements and so our agenda for today is the agenda of our strategy is the agenda of our business and that's what we focus on is the bank being part or not of that structure should not be considered. Thank you very much. The next question. When will the fees and commissions result move? forward. As we suggested in the strategy, what is important for us is to build a relationship bank, the kind of a bank where customers will want to maintain business relations over a long period of time. So we need to propose the best possible solutions to them. We want to provide them with the best possible value, and that must be reflected in the structure of fees and commissions. We now work intensely on changing our infrastructure. In terms of business customers, things have been moving forward vigorously and there will be a new distribution platform and a mobile platform for the business customer, which will provide very big additional value to customers and will provide more platform to generate more fees and commission income. We're also working on that for the retail customers and we will be slowly exchanging their mobile app. It will become simpler and we'll also be providing the values which customers require of us. So this will increase the number of our customers. the number of relation clients, the number of transactions, which will also translate into better fees and commission income, which will be a win-win situation. Thank you very much. When will we see the results of the strategy in the corporate sector? Leasing is on the up, other corporate sectors are declining. If you look at the market, the dynamic was positive. However, the positive dynamic was reflected only in the big businesses. Allure is not according to our strategy, an active or an aggressive player in that segment, which is now the strongest growth segment. If we were one of the third biggest banks, then that would be a possibility. But we focus on micro enterprises, on mid-size enterprises. In the first quarter, the dynamic in that sector was slow. Now, you saw in one of the slides, our sales volumes are now on the uptick, but we can see growth and there will be a game changer in the shape of the new solution that Krzysztof mentioned, which will be unveiled in autumn. New banking, new features, which will surprise the whole of the sector. Thank you.

And the next question.

There is a sense of wanting more in the mortgage sales. Can you again explain to us why such a strong growth in the mortgage sales? This is a result of a number of elements. There is not just one thing. We have very good distribution channels. We distribute the product in the so-called long and short channel. That's the first thing. And this has worked very well. Secondly, we improved our offer. We unified certain assumptions regarding the commission and the whole decision-making engine. We extended the offer to bring it across the country and we played on many instruments at the same time, which created a sort of an orchestra. in the mortgage sector, which has produced such a great performance. The whole procedure from the customer through the procedure to the decision is very smooth and works very well. And the next question. In the extreme scenario, the Financial Security Committee assessed the sanction for the sector at the level of 32 billion zlotys. What is the extreme scenario for Alibank and how much would it cost? I think this is a very hypothetical situation. This is not similar to the Swiss franc loans. These situations are incomparable. Proper regulatory bodies have reacted already. The free loan in Poland has not been properly introduced, a sanction regarding that. I don't want to refer to this question because I don't think it's properly asked and this is not the place to ask it. We are observing very well the situation. We think there is a lot of unfairness as regards the assumption of the process because it would mean that the legal system would have to be upturned on the basis of unfeasible arguments. And so the sector is working very strongly to reveal how unfeasible this line of thinking is. The sanction of this free-of-charge loan would have huge consequences, not just for the bank, but for the Polish economy as a whole. Thank you. And the next question. What is blocking Adior Bank from increasing the payout to 75% and PL above 5%? Is there anything else?

Well.

There are a number of aspects to be taken into account, and we are taking them into account. The Beyond Assessment is something that I don't want to discuss because it's not confidential. And as far as NPRs are concerned, we are on the way to the 5% level. This is part of our strategy. We now pay out 50%, but the target is to go to 75%. But will this happen? Will the payout of 75% happen is the decision of the supervisory board. We want to reach that level, but the decision, the final decision is not up to the board.

Thank you very much. And the next question, what was the reason for the worsening of the consumer loan portfolio deterioration in Q2 2025? If I understand this question correctly, are we talking about an increase or deterioration? Because I'm not sure. When it comes to the increase, consumer loans on a quarter to quarter basis We're only talking about a 2% growth. That's insignificant. In Q1, BIG was showing a decrease of consumer loans versus the preceding period. So the dynamics are very weak. We are part of the market. We have maintained our position. In Q1, it was dropping. The second quarter, it was slightly positive. So we played strong in this segment. Thank you very much. And this next question, what is the reason for the outflow of deposit of... RETAIL DEPOSITS IN Q2, HAS THE BANK CHANGED ITS PRICING POLICY IN THIS AREA? WE'VE CHANGED THE PRICING POLICY IN THE SENSE THAT WE WERE ABLE TO SHOW THE LOWER COST OF FUNDS AS MENTIONED IN ONE OF THE SLIDES, BUT THE OUTFLOW MEANT THAT ACTUALLY AT QUARTER TO QUARTER BASIS IT WAS FLAT, BUT THE NEW MONEY THAT ENTERED THE BANK In terms of a new bank, we observed huge increases and when it comes to the outflow, we had a significant aggressive promotion in the previous periods. That promotion is now over and a great proportion of our customers have flown out to other banks. As we know, customer loyalty is directly proportionate to the price of deposits. What is the outlook for NII in the second half of the year? As I mentioned before, a lot will depend on the decision of the Monetary Policy Council in september i think the whole market is looking forward to that as we look at this as of today and at the analyst consensus as well as our expectations i should say that our average nim might be lower by 10% versus the existing level. Thank you very much. And the question is whether the new Consumer Loan Act will have an impact on the sales of loans. What about the limitation of advertising? The new proposed law in the form, the new bill which is being discussed, by the industry. We're also very active in cooperating with the Polish banks union and discussing it with the representative and all the institutions. It affects everyone, so I'm sure it will have an impact on all the segments. which seems to be inappropriate, that it will affect in the same way, I mean, it will affect both the tiny consumer loans as well as major loans alike. It's hard to envisage that the same procedure of allowing credit and the whole bookkeeping process should be applied to a 500 zlotys worth loan as well as to a 50,000 zlotys worth loan. or even higher so some of mortgage loans will also be affected by that it will be a major change for the whole sector I'm sure it will impact the bank's propensity to provide funding we will all probably have to think whether some of the products given the increased costs triggered by that act whether it will even be profitable So I do expect some impact and I don't think it will be positive, rather negative. Thank you very much. And the next question, what do you expect when it comes to the increase in market competition in consumer finance after the advent of Earth Day to bank as well as leaving Santander Bank as part of Santander Group? I think that's the question I should answer because that's where I'm coming from. That's a joke, but I'm sure that One of our consumers will be a beneficiary of the brand that will be staying in the market. What do we expect? We are looking at our own backyard, at our own agenda. We have our own ideas, our own concepts to grow our business. At this moment, we are leaders when it comes to higher purchase, to installment loans. This is testified to by the volumes and the fact that consumers vote for us by acting, by choosing Elior Bank. I won't be discussing our ideas as of today. I won't be revealing them. You can see by our strategy that it's a major problem. item of our strategy. We want to leverage towards transactional banking. This consumer is very much needed and we won't give a single inch of the battlefield. Thank you very much. The question is, in the first half of the year, the cost of risk is 50 bps. And the expectations throughout the year when it comes to the COR are unchanged. Does this mean that the COR should be higher in the second half of the year? As I was telling you, the ongoing production is aligned with our assumptions as of today. We don't perceive any events regarding the working portfolio or basket one or two. Therefore, we assume that the COR without the impact of one-offs in the next quarter should not exceed 0.8.

Thank you very much.

And the next question is, can you see an increased inflow of litigations based on euro denominated loans? As I mentioned, the inflow of those litigations is at the existing at a constant level. The bank does not perceive any major acceleration. We have assumed an even more conservative approach when it comes to provisioning. Therefore, we've opened 40 million, which seem immaterial from our point of view, but they just put some order, streamlined the modeling approach. in coordination with our group auditor and we are not assuming any significant write-offs regarding that portfolio in the upcoming periods next question is the bank still refunding consumer credit If so, to what extent is the result on income, as well as the Commission's income affected by this? We've had such practice, but this activity has been discontinued. We are not being active when it comes to the consolidation because I understand that SKD would be the main trigger. Yes, as you look at the consumer credit market and the data published by BIK for many years, the situation is that customers flow between banks and the consolidation represents a major proportion. Well, SKD is not the trigger. Of course, we have consolidation.

We also

attract customers from the market by offering this product, but it's not our goal to take care of the problem of the free loan sanction. Well, from the P&L perspective, if we look at Q1 and Q2, that consolidation was more important in Q1, and we can estimate it at the level of several million zlatys only. Thank you very much. And the next question is, what impact on the Commission's income was triggered by the implementation of the eExchange Office? Well, the eExchange Office is a very interesting product that was very positively perceived by the customers. and we're happy that they should be using it to such an extent. It's a little bit too early to try to evaluate this, but the currency exchange will be also provided as part of the app. It's about increasing the customer comfort and the bank's results. We could see it in the EFX results. They were better by 5 million. on a quarter-to-quarter basis based on the exchange results.

What level of the NBP reference rate you assume for the end of 2025 and 2026? At the end of 2025, 4.85 and the end of 2026, 3.75.

Thank you.

These are all the questions. We want to thank the board and thank everyone for watching. And we would like to invite you to the next meeting.