Bankinter, S.A.

Good morning and welcome to Bankinta's third quarter earnings presentation. Our financial statements were posted with market authorities earlier this morning and all materials can also be found on our corporate website. Please refer to the disclaimer of the presentation and note that this call is being recorded. We welcome today our chief executive officer, Gloria Ortiz, and chief financial officer, Jacobo Diaz.

Thank you, Laurie, and welcome to you all. We are reporting today third quarter results showing steady growth. We closed the first nine months of 2026 with a net profit of 901 million euros, 11% more than in the same period last year, which represents a return on tangible equity of 20.4%, a percentage point better than in the same period of 2025. The results are supported by the profitable growth of the business. We grew by 7% in customer volumes, which translates into 6% increase in revenues, supported by net interest income, which is up 6% year-on-year, due to the volume growth accompanied by a disciplined management of customer margins that reached 2.7% in the quarter. We maintained rigorous cost management as reflected in the efficiency ratio that is now below 35%. We also maintain excellent asset quality with a non-performing loan ratio of 1.84% and a solid solvency with a CT1 ratio at 13.2%, well above regulatory minimums. All this growth in volumes, discipline in margins, asset quality and operational efficiency allow us to generate value for shareholders in a sustained manner with shareholder value generation increasing by 15% over the last 12 months. Commercial activity this year has once again showed strength. Total customer business volumes amount to 250 billion euros, 16 billion euros more than in the same period of 2025 with 6% growth in lending and 8% in customer funds while maintaining a loan-to-deposit ratio at a comfortable figure of 98%. This provides us with ample flexibility to continue growing lending selectively and profitably, without funding becoming a constraint. Customer volumes are highly diversified, with the new geographies contributing 13% of the total book and Spain the remaining 87%, where Spain presents a growth in volumes of 6%, Portugal of 13%, and finally Ireland, of 26% over the previous year. New geographies continue to increase their contribution to incremental volume growth where they represent already 25%. This is the type of growth we want, organic, geographically diversified and profitable. It strengthens the franchise, supports recurring revenues and reduces our dependence on any single market or business line. Net interest income continues to evolve positively, reaching 1.76 billion euros in the first nine months, 6% more than in the same period last year. In quarterly terms, NII reached a new high of 602 million, while customer margin remained resilient This performance reflects healthy volume growth together with disciplined and active management of customer margins and demonstrates the resilience of our revenues as the interest rate environment evolves. Discipline in the management of operational efficiency and asset quality drives capital generation in the quarter. CT1 closed the third quarter at 13.2%, 20 basis points higher than in the previous year, and 46 over the close of 2025. Efficiency in the first nine months of the year stood at 34.8%, 1.3 percentage points better than in 2025. Asset quality also remained excellent, with NPL ratio improving by 10 basis points to 1.84% if compared to December 2025. and we also maintain a solid coverage ratio. This combination of efficiency, asset quality and organic capital generation gives us the capacity to fund profitable growth while maintaining comfortable management buffers. For us, AI is a business transformation program grounded in the pragmatic use of technology focused on productivity, customer service, and scalability. We consistently invest more than 10% of our gross revenues in technology. Over the last six years, this investment has allowed us to increase customer volumes by 56% and revenues by 87%, while employee numbers increased by only 9%, and the number of branches remained stable. At the same time, costs only increased by 34%, less than half the rate of revenue growth. Among the investments in technology, I would like to highlight our AI First program. From a top-down perspective, this involves significant investments in technological infrastructure and data, in the governance of AI deployment, and incorporates strategic project programs in which we integrate AI in the bank's operational and commercial processes in a transparent way for employees and customers. Secondly, the bottom-up perspective has a lot to do with cultural change and personal productivity and requires significant investment in training the workforce, making tools available to employees, and in the deployment of corporate systems that allow the creation of agents to be shared in a governed and controlled manner. The progress made in AI capabilities over the past two years has been considerable, with more than 150 advanced AI models and 60 Gen AI systems in operation. The areas in which this deployment of capabilities is having the greatest impact are software development, automation of operational processes, commercial efficiency, improvement of the user experience in digital assets and telephone banking, as well as in the personal productivity of employees in their day-to-day work. Finally, to wrap up this first section of the presentation, you can see the impact of our strategy in the key value creation ratios. We report once again a high unsustainable value creation. Roti reached 20.4%, earnings per share increased by 11%, and shareholder value generation increased by 15% over the last 12 months. Now on to you, Jacobo.

Thank you very much, Gloria. Good morning, everybody. Let me start with a brief overview of the results. The first nine months of the year demonstrate the continued strength of our franchise and business model, with results supported by solid revenue growth, disciplined cost management, and stable risk costs. Net profit reached 901 million euros, up 11% year on year. I will now talk through the main drivers behind these results, starting with NII on the next page. NII continues to evolve very favorably, reaching €602 million in the third quarter, our sixth consecutive quarterly increase. NII increased by 6.3% year-on-year and by 2.1% quarter-on-quarter. During the quarter, asset yields increased by seven basis points while deposit costs increased by six basis points, allowing us to maintain customer margin at 2.71% and NIEM at 175%. Overall, this continues to show the benefits of volume growth together with disciplined pricing on both sides of the balance sheet. Moving now into fees, fees continue to be an increasingly important contributor to revenue growth, reinforcing the diversification of our business model and the growing contribution from the wealth management business. Net fees increased by 13% year on year to 651 million euros, even excluding the 23 million performance fee recorded in the second quarter, underlying recurring fee Thank you very much. These strong revenue performance also continues to translate into positive operating leverage, bringing me to the next slide. Revenue growth of 6.5% significantly exceeded expenses growth of 2.3%, maintaining positive jobs of more than 4 percentage points this year. As a result, our cost-to-income ratio improved further to 34.8%. And importantly, as Gloria already highlighted, this has been achieved while continuing to invest in technology and digital transformation across the group and future growth initiatives. For Bank Inter, cost discipline does not mean lower investment. It reflects a simpler organization, the tangible benefits of technology, and an increasingly scalable operating model focused on long-term client relationships. Moving now to risk costs on page 16, we continue to grow the balance sheet while maintaining a clear focus on quality. Customer lending grew by 6% while cost of risk remained stable at 33 basis points, and other provisions declined further to eight basis points. This combination of long growth and stable risk costs reflects our underwriting discipline and selective approach to growth. We remain focused on attractive risk-adjusted returns rather than pursuing volume at any price. Regarding net profit, revenue growth, efficiency and risk discipline are clearly visible in earnings, with profit before tax increasing by 11%, to 1.27 billion, and net profit increasing by 11% to 901 million euros, as I mentioned before. That same discipline is also reflected in the quality of our balance sheet that we'll see in next page. Asset quality remains one of the clearest differentiators of Bank Inter franchise. The group NPL ratio improved by 21 basis points year on year to 1.84%. Across Spain, Portugal, and Ireland, NPL ratio remain comfortably below sector average. Spain stands at 2.0 versus 2.5 for the sector, Portugal at 1.4 versus 2.1, and Ireland at 0.3 versus 0.7. Moving into liquidity, we continue to maintain a strong and balanced liquidity position, with a 98% loan-to-deposit ratio and an LCR of 168%. During the quarter, our liquidity gap remained stable at 2.6 billion, with significant excess liquidity in Spain. We also maintain substantial liquidity reserves, limited refinancial need, and strong access to wholesale-funded markets when needed. We therefore maintain a significant flexibility in how we fund the balance sheet. This supports future lending growth as well as the continued development of balance sheet products and customer solutions. Turning to capital, Z1 ratio closed the quarter at 13.18%, supported by 74 basis points of organic capital generation over the first nine months, including 42 basis points in the third quarter. This strong generation allows us to absorb the 16 basis points impact from the TOLP acquisition, while increasing our set one ratio by 27 basis points from 12.91 in the second quarter. Looking ahead, we expect to close the plenum and access capital partners alternative investment transaction next quarter with a combined capital impact of approximately 25 basis points. We will also increase of around 40 basis points in our minimum capital requirement from the second phase of the Spanish counter-cyclical buffer. That, by the way, we announced also this morning. Even after these items, we remain very comfortable with our capital position and our flexibility to support profitable growth, selective investment opportunity, and attractive shareholder remuneration going forward. Moving now to a quick review of the performance of our businesses and geographies, starting with corporate and SME banking. Corporate lending increased by 7% compared with sector growth of 4% in Spain, with our international business growing strongly at 16%. We are reinforcing our competitive advantage through a new servicing and corporate segmentation model, increasing product penetration and innovation, and growing more transactional businesses such as factoring and confirming. This will deepen customer relationship and act as a catalyst for growth with a greater contribution from capital efficient revenues. In Retail Banking, we continue to prioritize profitable growth and disciplined capital allocation, directing growth towards the customers, segments, and geography where we see the most attractive risk-adjusted returns opportunities. So on the asset side, mortgage origination is recovering, up 8% compared with the same quarter last year, with around half of the new production coming from Spain and the other half from Portugal and Ireland. Our mortgage-backed book also grew by 5% to $40 billion, including approximately $400 million of Dutch mortgages following the recent top acquisition. We expect to start new origination under a Bank Inter mortgage proposition in the Dutch market over the coming months. We also provide more details this quarter on our smaller consumer finance portfolio. Balances increased by 11%, excluding the open market segment, which continues to decline as part of our strategy to reduce portfolio offering lower returns after losses and capital consumption. On the liability side, transactional balances also continue to grow with salary and digital account balances increasing 6% year on year. Moving now to wealth management and off-balance sheet products on page 24, where we continue to deliver very strong growth across both assets under management and assets under custody. AUMs increased by 10 billion, or 15%, over the last 12 months, while assets under custody increased by 12 billion, or 14%. Together, Both now exceed 170 billion, around twice the size of our customer-owned balance sheet deposits, reflecting the high quality of our customer base and our ability to deepen relationships through value-added investment products, advisory service, and innovative portfolio of management solutions. Importantly, Movements from deposits into investment products does not represent Money Living Bank Inter, but rather a transformation of customer savings within the franchise, deepening relationship, increasing product penetration, and supporting revenue diversification. Let me now review our progress from a geographical perspective. Starting the overall picture, our strong volume growth remains well diversified across the group, as I mentioned before, with Spain growing by 6%, Portugal by 13%, and Ireland by 26%. Revenues also increased across all three geographies, with particularly strong double-digit revenue growth in Portugal and Ireland. So let's see briefly at each geography, starting with Spain. Spain continues to deliver strong and profitable growth, with customer lending up 3% or around 2 billion year-on-year, broadly in line with the growth rate achieved in full year 25. NII increased by 4% and fees by 13%, supporting gross operating income growth of 5%. With expense growth contained at just 1%, pre-provisioning profit grew by 8% and profit before tax by 10%. This demonstrates the scalability of our core Spanish franchise, where technology and a simpler operating model allow us to grow the business while continuing to keep costs under control and deepen customer relationship, as reflected in the customer phones growing 9% year on year. The 89% loan-to-deposit ratio is similar to the average of the Spanish industry. Moving into Portugal, where the franchise continues to scale strongly and profitably. Customer lending increased by 9% or 1 billion, while customer funds grew by 18% or 3 billion, maintaining the strong growth rates achieved in 25. This translated into net interest income and fees both increasing by 13%, with profit before taxes reaching 178 million, also up 13%. With an excellent cost-to-income ratio of 32%, Portugal is a strong example of our ability to scale a proven business model and gain profitable market share. Our focus is to close the remaining small funding gap through continued growth in customer funds while further increasing customer penetration across segments and products. Finally, let's move to Ireland. Ireland continues to deliver strong growth as we progressively build out our universal banking proposition in the Irish market. Customer volumes increased by 1 billion, or 26%, including the start of our deposit gathering activity this year, with balances growing, supported by our recent marketing campaign with very positive results. At the same time, the businesses delivered strong profitability. NII income increased by 21%, supported by asset growth, while profit before taxes also grew by 21%, and the cost-to-income ratio improved to 43%. As we continue to broaden the franchise, our objective is to increasingly fund future lending growth with locally generated deposits, building a more balanced and self-funded business over time. Overall, Ireland continues to gain scale and broaden its customer proposition while maintaining a strong profitability and asset quality. Let me move now finally to our outlook and growth priorities. Our underlying business trends continue to evolve positively in line with our expectations in a solid for longer trend supported by robust current and expected macro scenario, reinforcing our confidence going forward. We remain focused on the levers we can actively control, which is disciplined execution of digital transformation programs, disciplined pricing of both sides of the balance sheet, customer margin management, cost control, and, of course, capital allocation. On volumes, we continue to expect solid and diversified growth. Lending growth should remain around the current mid-single-digit levels. With Spain maintaining solid momentum and Portugal and Ireland continuing to grow at faster rates, deposit growth this year should continue in line with current trends being low single-digit growth. At the same time, the superior quality of our increasing client base in all our geographies will continue to support growth in customer funds and deepen customer relationships through asset under management and custody, supporting both our funding position and recurring fee generation. Our NII, our guidance, continues to carry a positive bias in the short and mid-term. Volume growth, resilient customer margin, and the carbon rate environment should continue to support positive NII development with continued quarter-on-quarter growth slightly above long growth. We expect customer margin to remain around current level with positive bias in coming quarters supported by active pricing management on both assets and deposits. We also continue to maintain a balanced and prudent approach to interest rate sensitivity rather than seeking to maximize short-term returns From a particular rate scenario. On fees, the outlook also remains strong with guidance of low double digits supported by wealth management, higher customer activity, and increasing contribution from recurring value-added products. and Cost, we remain fully committed to delivering positive jobs. We will continue to invest in technology, people and future growth while maintaining cost discipline and improving the scalability of the business. We are on track to end this year with a cost-to-income ratio below 35% with operating jobs in line with current levels of around four full points. Asset quality should remain strong and we expect cost of risk to remain around current levels with the guidance unchanged around 33 bps for the entire year. Finally, we expect to continue generating capital organically. Our priorities remain clear. First, support profitable organic growth. Second, invest selectively in attractive strategic opportunities. And finally, being open and flexible, if necessary, to ensure attractive shareholder remuneration in the future. Bank Inter has always delivered in the long term and through periods of uncertainty a superior shareholder remuneration combined with a prudent risk approach. Taken together, these trends support our expectation of maintaining a return on tangible equity above 20% for longer while continuing to grow tangible value per share and dividends. Gloria, back to you, please. Thank you.