Bankinter, S.A.

Good morning to all and thank you for joining this earnings call for the third quarter of 2025. Financial statements were posted with market authorities earlier this morning and all materials can be found on our corporate website. Please refer to the disclaimer in this presentation and note that this call is being recorded. Today we are joined by Chief Executive Officer Gloria Ortiz and Chief Financial Officer Jacobo Diaz.

Thank you, Laurie. Good morning to all and welcome to this third quarter 2025 results presentation. Since we last met in July, many things have happened. The tariff conflict between the European Union and the United States has been resolved. The Israel-Gaza conflict seems for now to have reached its end. We learned the results of the BBVA-Sabadell takeover bid last Thursday, and interest rates have bottomed as the European Central Bank has ended rate cuts with inflation aligned with its targets. Additionally, the EVA stress tests were published on August 1st, in which Bank Inter is again the listed bank in Spain, as well as in the Eurozone, with the lowest capital depletion in the hypothetical case of a very adverse economic scenario. We continue to navigate an uncertain and volatile environment, and despite this, I would like to highlight that this quarter's results remain satisfactory following the trend of the previous quarter with very relevant growth and activity across all business and geographies. The third quarter has been another quarter with strong commercial activity, translating into a post-tax result of $812 million, 11% above the same period last year. These results are also accompanied by solid management ratios in terms of asset quality, efficiency, profitability, and solvency. As reflected in the figures, we continue to report improving results in which, as usual, balanced and diversified growth is key. Credit and loans, as well as retail deposits, grew 5%, with off-balance sheet balances up 20% year on year. Net interest income has continued to improve in the quarter. In the second quarter, we reported a contraction of 5% that has been reduced to 3.5% in September. In fact, in quarterly terms, it is the second quarter that we have grown over the previous quarter, reaching levels of the third quarter of 2024. This is thanks to the resilience of the customer margin, which remains at 2.7% this year. On the other hand, fees and commissions continue to perform exceptionally well, maintaining a growth rate of 10.6% despite the fact that each quarter, the comparison with the previous year, is more demanding. All this growth has been achieved while keeping our risk appetite intact, which is reflected in the NPL ratio that stands at 2.05%, improving previous quarter ratio as well as the one reported 12 months ago, which was 17 basis points higher. Another key to our business model is efficiency, which stands at 36%, the best cost-to-income ratio in the sector. Diversified growth, asset quality, and efficiency are the pillars on which the profitability of our business is based, maintaining a ROTI above 19%. As a result of intense commercial activity, we once again present strong diversified growth in business volumes this period. If we add credit and loans, retail deposits, and off-balance sheet volumes, the volumes managed amount to $234 billion at the end of September and grew by $19 billion year on year. This is a remarkable growth rate of 9%. Going into detail, lending reached $83 billion at the end of the quarter, which is $5 billion more than in September 2024. Retail deposits closed the quarter at $85 billion, a figure $4 billion higher than in the same period of the previous year. And finally, we added $11 billion to the off-balance sheet business, which stands at $66 billion, showing a strong growth of 20% year on year. This year, we have seen a noticeable increase in new client acquisition, particularly through our digital channels. The integration of talent and technology from EvoBanco over the summer has assisted to further strengthen our digital strategy for the group. All geographies are growing at good pace. Spain, which accounts to 87% of business volumes, grows 7%, while Portugal, with 11% contribution to volumes, grows by 12%, and Ireland also stands out with 20% growth. New credit production also continues with improving trends as a result of the increased commercial activity. 16% in new mortgages, 6% growth in new business lending, and a 3% drop in consumer credit due to the fact that we continue to reduce exposure to riskier segments. On page seven, for the past 12 months, we have seen increasingly positive trends in sector growth across the geographies in which we operate, with close to 3% market growth in Spain, 7% in Portugal, and 2% in Ireland. In each of these markets, we continue to gain market share in each of our business lines. In our core market, Spain, the retail banking loan book increased by 3.4%, 30 bps above the market, and our business banking book outperformed by 180 bps, reaching a 4.3% growth rate. With both Bank Inter Portugal and Ireland in expansion, we continue to gain significant market share, further diversifying our asset portfolio. Portugal grew 11%, 450 bps above the sector, and Ireland an exceptional 20% growth rate, well above market growth rates in both countries. In terms of revenues, there is a very notable performance of core revenues. This is the sum of net interest income and net fees and commissions, which has reached similar levels to those in the previous year. In quarterly terms, core revenues reached 762 million euros, the largest in the series, and in fact, they are already growing both compared to the previous quarter by 1.3% and compared to the same quarter of 2024 by 2%. This sustained solid performance quarter after quarter of fees and commissions, growing at 10.6%, compensates for over 90% of net interest income compression in the year due to the negative impact from the reduction of yield curves. Net interest income fell on a cumulative basis 3.5%, but in quarterly terms, the upward trend continues. We are already 3% above the last quarter of the previous year and 5% more than in the first quarter, and we also grew 1% over the previous quarter. Going now to the next page, I would like to talk about productivity. We have a scalable and efficient business that is reflected in productivity improvements. The volume of customers managed per employee expands year after year, while the cost per million euros of volumes managed decreases year on year. This is thanks to the investments made in technology and in particular in artificial intelligence projects that are oriented to the improvement of personal activity, commercial efficiency, which relies mainly on algorithms, but also process efficiency and the improvement of the customer experience and the development also of new products. Bank Interculture of applying targeted innovation across products, services and processes continues to deliver measurable results, reinforcing our strategic positioning and driving ongoing improvements in operational scalability. I will now hand over to Jacobo, who will provide you with more additional detail and insights into our financial and commercial results.

Thank you very much, Gloria. Good morning, everybody. We are pleased to share once again another quarter growth and increased revenues and profitability. In operating income, we have grown by 4.7% thanks to increased volumes, continued strong fee growth and effective margin management. We continue to rebalance operating costs more evenly over quarters with a year-on-year increase declining each quarter to end the year within our guidance. Cost of risk and related provisions declined by 10% compared to the prior year, reflecting a continued positive trend in risk management. Net profit rose 11% to 812 million euros, gaining momentum to well surpass our initial goal of 1 billion euros in 2025. Let's move on to review additional details about each line in the following slides. So up to the trough in the first quarter of this year, we continue to deliver quarter-on-quarter improvements in net interest income. Now recovering levels of the third quarter of last year, reporting €566 million, a 1% increase quarter-on-quarter. Asset yields continue to contract this quarter at 3.49%, down 22 basis points. This quarter reflects a typical low seasonality period where corporate banking activity is relatively lower compared to retail banking activity, which has influenced a bit of a mixed change leading to a higher weight of repricing more in line with retail durations than the shorter corporate durations. Given these dynamics and a stable outlook for arrival 12-month rates, we believe average quarterly asset yields should drop marginally in Q4 to reach stability in the first half of 2026. Average customer margin for the year remained resilient at our 270 basis points, continuing to demonstrate our ability to effectively manage margins. With cost of deposits now at 84 basis points and material 14 basis points decreased from last quarter, we are optimistic to reach levels around 75 basis points by the end of the year. Our NIM also remains resilient, a direct result of the effective balance sheet management. After sharing the details of the NII results, we wanted to talk about the excellent results we have been seeing quarter on quarter related to our digital account strategy that we initiated last year as part of the new digital organization. These growing digital site account deposits, in yellow in the graph on the left, have aided in reducing and replacing typical long-term deposits with more granular and flexible, shorter-duration deposits. Between both digital site accounts and private banking or corporate treasury accounts, we now have a significant proportion of ARK deposits with less than a three-month duration. This is less than half of the average duration of the term deposits. Not only does this provide us greater agility to adjust deposit rates in line with market rates, but it also has a great source of increased customer activity, either transactional or through AUM's activity, driving additional fee volumes with a scalable operational model at a marginal lower servicing cost base. As you can see on the chart on the right, we have increased our average deposit spread over the past four quarters, reaching now close to 130 basis points. We believe these deposit spread levels are likely to remain quite resilient, possibly with some upside, for the coming years given the favorable rate environment as well as a more flexible deposit structure and our deposit gathering capability from our excellent existing and new customer base. Bear in mind that 50% of new customers are acquired through our 100% digital channels. Fees continue to deliver sequential increases quarter-on-quarter, even during the seasonally low summer months, with an increase of 11% on a year-on-year basis, reaching 196 million euros this quarter, at 2% on a quarter-on-quarter basis. This continued quarterly growth momentum is mainly attributable to the strong volume growth in fund management and brokerage services that we detail later in the presentation. We are quite optimistic to continue to maintain this growth momentum going forward, given our strong focus and strategy on affluent customer base and increasing flows from on-balance to off-balance sheet activity and customer-centric operating model. It is also quite remarkable the performance of these business lines delivering improved results, notably in the equity method and dividend lines up 29% on year-on-year basis. The diversification of sources of revenue is well represented here, given our diversified business investment over the past years in areas like our insurance JV partnership, our JV in Portugal with SENAI to deliver consumer finance products, as well as our successful strategy with the Bankinter investment franchise, delivering alternative investment vehicles, allowing our customers to invest in real assets. This business line will continue to develop and deliver increased results over the coming years, providing upside risk in non-traditional revenue lines. Regarding cost, we continue to reduce seasonality and balance our expenses over the year, increasing 3% when comparing average 25 quarterly costs to those in 2024. Although cost volumes may increase in Q4, they will be lower on a year-on-year basis when comparing to Q4 of 2024. cost-to-income ratio remains at an exceptionally low level of 36% and will remain committed to maintaining positive operating jobs in the future. On page 17, loan loss provisions continue to show improvements versus last year, with a cost of risk of 33 basis points. Other provisions also remain under control and performing well at a stable 8 basis points. With no signs of deterioration in the market of our portfolio and with a well-managed risk management across the bank, we are optimistic to maintain current levels for the coming quarters. Next page. Net profit achieved record levels once again, reaching 812 million euros, an exceptional increase of 11% year-to-date. Credit quality, credit and asset quality indicators continue to improve, with the group NPL ratio dropping to 2.05, down 17 basis points from last year. Spain down to 2.3, Portugal at 1.4, and Ireland at 0.3, all well below sector average. Moving into capital, as Gloria mentioned, we are very pleased with our EVA stress test results this quarter, resulting once again in the lowest level of capital depletion among all Spanish and Eurozone listed banks. Even under a severe economic adverse scenario, the potential capital depletion would only be 55 basis points. The prudent risk profile of our activity is differential. This has been a strong quarter for capital generation with the Z1 ratio at 12.94%, with a seasonal mixed shift from corporate lending to increased retail lending, therefore reducing RWA growth this quarter, which will be viewed with the reverse in the following quarter with larger loan growth and density consumption and the annual operational risk capital consumption recorded in the fourth quarter. As we continue to invest in technology and strategic projects, we have also seen an increase in intangibles this quarter due to the software-based solution under deployment, for example, with the new Bank United platform for Ireland or the Portuguese digital transformation program. Moving into page 22, commercial activity and trends remain strong, with customer volumes up 7% in Spain, 12% in Portugal, and 20% in Ireland, each region contributing at increased levels to the gross operating income of the bank. On page 23, loan growth, again, strong, up 4% year-on-year, growing both in retail as well as business lending. Retail deposits continue to demonstrate solid growth, increasing by 4%, with also strong performance in wealth management, reflecting a 19% increase in assets under management, contributing to fee income increases of 11%. Profit before tax up 6%, reflecting solid contribution for our core Spanish business. In Portugal, continued exceptional performance in lending activity across both business segments up 11%, strong deposit gathering up 5%, as well as increased wealth management and brokerage balances rising 23% on a year-on-year basis. Moving into Ireland, commercial momentum continues with mortgage loan growth up 23%, as well as consumer finance loan growth 23%. by 11%. We have also launched our fully digital time deposit in the Irish market with an attractive value proposition that we surely grow deposit volumes over the coming quarters. Profit before tax contribution reached 34 million euros with strong sequential increases in NII each quarter up 16%. Moving into corporate and SME banking. Business lending continues to deliver strong performance, even with a seasonally low quarter in terms of new loans. Customer lending increased by 5%, well above sector loan growth. International business segment continues to be a key growth catalyst, contributing to a third of new credit production, with a growth rate at 9% year-on-year. Page 27, retail banking asset and deposit trends remain strong, with increased new client acquisition driving core salary account balances up by 7%. New mortgage origination up 16% year-on-year, with solid market share of new production in Portugal, Spain, and Ireland at 6%. Our mortgage back book continues to grow by a strong 5% year-on-year, outperforming sector growth in every region. Regarding wealth management, our high-quality customer base typically brings annual net inflows between 5 to 7 billion euros into the bank. However, this year we have already surpassed this historical range and now reset our ambition to achieve between 8 to 10 billion of net new money every year. When taking into consideration the market effect as well, incremental wealth of our customers increased by 20 million, or a 16% increase on a year-on-year basis. Moving into off-balance sheet volumes, we continue to grow in assets under management and assets under custody, reaching now 150 billion euros with assets under management, advisory, or customer direct execution services in brokerage. Since our differentiation strategy centers around the client and how they prefer to interact with the bank rather than a product strategy, we indistinctively offer Bank Inter products as well as third-party products to retain independence in terms of customer advisory services. with a full range of products, as well as various servicing models based on customer's preference, we're able to consistently grow these off-balance sheet volumes, a key driver of continued fee growth quarter after quarter. And finally, let me recap our ambitions and targets. Given our solid third quarter financial results, a strong commercial momentum and volume growth trends, and with a stable outlook for arrival 12 months after the coming year around 220%, we remain optimistic in terms of future growth potential. In terms of our specific ambitions for this current year, loan volumes are expected to continue to grow at mid-single-digit rate, similar than deposits, with assets under management's commercial activity following the same strong performance than previous quarters. As market conditions become more favorable, we are committed to maintaining 2025 average customer margins around 270 basis points to support robust profitability that surpasses our cost of capital. In essence, we will not compromise margin integrity. Regarding NII, we anticipate that the final phase of retail repricing will take place mostly in Q4 and with much lower impact in the beginning of 26. Consequently, while some pressure on asset yields is expected to persist, it should moderate as our corporate portfolio has now been fully repriced in Q3. On the deposit side, we will continue to reduce and manage costs in a balanced manner to support ongoing customer and deposit growth, particularly in the digital site accounts. As a result, we expect a more modest reduction in deposit costs in Q4 compared to Q3 between the range of 5 to 10 basis points. Given these dynamics and our current commercial strategy, NII in Q4 will keep growing quarter on quarter again and growing year on year again, which may result anyway in a slight slippage in our Flatfish NII guidance in 2025 that will be compensated by a stronger fee growth. With upside risk in fees, we increase our targets of high single-digit growth target to reach now double-digit growth in fees. With respect to cost management, we continue to allocate and balance cost volumes over the quarters and remain on target for 2025, full year annual cost to grow mid-single digit. We also remain committed to delivering positive operating jobs in 2025, gross revenues above cost. As credit quality continues to improve, we are revising our targets with the expectation of cost of risk to fall below 35 basis points for the entire year. Although we do not provide guidance for the following year until the results presentation in January, we must say that as of today, with the current macro outlook for Spain, Portugal, and Ireland, there is no reason why we should not expect similar levels of growth in our loan book as well as resilient client margin in our levels of cost of risk. Efficiency will also remain at the top of our agenda to ensure sustainable levels of return on equity in 2026 and so on. And capital levels are expected to stay strong in coming quarters despite profitable growth expectations. I believe that this has been another high-quality set of results, with no surprises, one-offs, or extraordinary items, quite predictable, that make us feel to be on track to achieve another excellent year in 2026. Gloria, back to you for any closing comments.