Santander Bank Polska Sa

welcome everyone at the teleconference about presentation of the financial results after quarter one 2022 together with us today there are the ceo Michal Gajewski and the CFO Maciej Rejluga and the chief economist and Wojciech Skalski responsible for financial accounting area that is responsible for the financial report published today. So please ask your questions through the link online and to my email address. I'm Agnieszka Dowrzycka. I'm head of investor relations. So over to you, the CEO. Hello, everyone. Good morning. Michał Gajewski speaking. Welcome at the presentation of the bank's performance after quarter one. As you know, the first three months of the year have been good, but we are aware that the next quarter will be under a strong pressure of both economic and geopolitical situation. There are many risk factors ahead that make the future highly uncertain. For example, the war in Ukraine. that of course will affect our performance in the long term. Yet so far we have not seen the significant impact of the war on the results in quarter one. On top of our core business, this quarter we conducted many social responsibility activities supporting our customers and guests from Ukraine. We are strongly impressed by the engagement and empathy of our employees both in branch banking and business support center and also volunteers and humanitarian organizations. As a bank, we focused on delivering various solutions to our customers from Ukraine. We simplified our procedures to make it easier for them to open an account and get a debit card. We proposed our customers also free of charge APM withdrawal and transfers to and from Ukraine. we cooperated with the united nations high commissioner for refugees as the only bank in poland we developed a tool based on bleak check system together with our customers we raised four million two hundred fifty thousand uh slots and then we doubled your impact for ukraine fundraiser the entire amount will be earmarked for humanitarian organizations that will be used for assistance and medical aid in Poland and Ukraine. Now let's go to slide number seven. As a group, we provide services to over 7.2 million customers, out of which 5.5 million in Santander Bank Poland. Together with Santander Consumer, we have almost 3.4 million active digital customers. We have over 2.5 million active mobile customers, which means a 25% increase year-on-year. Customer deposits totaled over 187 billion slots and increased 4% year-on-year. The gross loan volume increased by 5% year-on-year to over 156 billion slots. Assets grew by 4% year-on-year to 246 billion slots. Customer funds were 201 billion slots, which means 2% growth year on year. In slide number eight, we have key financial results. Of course, I will discuss the results for quarter one in detail further on. Now let me highlight only the key items. So the net profit of 960 million zlot, which is a significantly higher number than in previous periods. Net interest income of 2,244,000,000 zlot grew by 63% year-on-year. Net income grew by 8% year-on-year. In total, 661 million zlotys. The total income was 2,988,000,000 zlotys and grew by 41% year-on-year and 17% against Q4 last year. ROLA was 8.6%. And let me remind you that its denominator is under a strong influence of the capital surplus. which at the group level is about 9 billion. CCR for the group was 18%, Tier 1 over 16%. Those indicators decreased by about 19 basis points versus last year. And let me highlight that we have a very strong position and a decent capital surplus. The level of the indicators is significantly higher than regulatory thresholds. and it ensures total security of our business and stable growth now slide number 10 our customers 3.1 million active digital customers in the bank of which 2.8 million in the retail segment 323 000 sme customers we record double digit growth all the way and 21 thousand large companies, 4% growth year on year. The number of mobile customers has been also on the rise. Currently, we have almost 2.3 million customers using mobile channels in annual terms. This means a 21% increase in retail, 23% in SMEs, and 20% in corporate banking. The number of mobile transactions has also grown. In quarter one, we had almost 49 million retail transactions. That is 32% more than a year before. Slides 11 and 12 are devoted to new products and educational activities. We simplified and shortened online cash loan application process. We improved the referral. program added cash loan calculator in Santander PL portal. In the SME segment, we support our customers by organizing webinars with Google and Shopper. We are improving the credit workflow for large companies. We implemented the factoring service and services for a capital group.

Let us move now to business data. Let us start with retail, slide number 13. We've maintained high sales of mortgage loans amid the shrinking market. In quarter one, we saw loans worth 2.9 billion slots. Compared to quarter one last year, that was twice more. Yet, quarter on quarter, this is a decline by 10%. The sales of cash loans, which stood at 2.2 billion slots, And that was another record high quarter. The volumes allowed us to come back to the pre-pandemic levels. Year on year, this is the growth by 38%. And on a quarterly basis, this is 8%. We also have here high sales via remote channels. And in quarter one, these sales accounted of up to 54% of the total sales. investment funds, TFI. In this case, we saw negative sales and high level of redemption. This is, of course, the result of uncertainty and volatility on the financial markets. In the F&E segment, the leasing in quarter one, the sixth year was stable, growth by 0.4% at $825 million. The leasing portfolio increased by 16% year-on-year. And in quarter one, the sales of credit products in the SME segment increased by 8% quarter-on-quarter, standing at 1.3 billion slots. In business banking, we saw good results. When it comes to services for exporters, the turnover on the ethics platform increased by 40%. while the use of finance limits increased by 37%. Transactional banking fees increased by 42% year-on-year, while the sales of credit limits increased by 20%. In corporate and investment banking, we saw a big growth in income from transactional banking. Also, the income from transactions on financial markets, treasury services, and trade finance increased. As part of our responsible banking agenda, we provided financing to producers of energy from renewable sources, thanks to which 150 megawatts of energy will be generated. As part of the Polish transformation of the Polish energy system, we were also providing advice on the acquisition in the renewable sectors. Slide number 15, growth loans portfolio. On the consolidated basis, it increased by 5.23% year-on-year, close to 156 billion blocks. I've already mentioned sales in the retail and SME segments. In business banking, loans increased by 9% year-on-year, while in the segment of the biggest companies, they increased by 4% year-on-year. The leading portfolio grew by 11% year-on-year, up to 12 billion slots. The net sales was close to 1.6 billion slots, increasing by 2% year-on-year. The factoring company saw the growth in turnover by 17% year-on-year, while its portfolio increased by 15%. Our plans for this year are ambitious. We want to grow quicker than the market. especially in loans, our current outlook says that the loans will grow in the sector by 3.4% approximately, and the deposits are to grow by 1.3%.

Now slide 16, customer funds. Customer deposits grew by 4% year-on-year, and As I said, at the end of March, they totaled over 187 billion zlot. Retail deposits grew by 6% year-on-year. Business deposits grew by 2% year-on-year. So year-on-year deposits grew in total by almost 8 billion zlot. We can see an increase in term deposits by 6 billion zlot and 3 billion on current deposits. Investment fund assets, as I said, dropped due to the market situation. When it comes to the P&L, let's start with slide number 17, the margin, the net interest income in the quarter one was over 2.244 billion, better by 63%. The annualized net interest margin grew by 93 basis points up to 4.02%. This, of course, stems from higher interest rates, higher interest costs, acceleration of cash loans, mortgage loans and corporate loans, and the marginals also affected by higher yields on debt securities. One comment on that slide. the margins for 2021 that you can see in this slide, those amounts were converted in line with the change in the accounting rules with respect to the legal risk for foreign currency mortgage loans according to IFRS 9. In slide 18, net fee and commission income, In quarter one, the fee income was 661 million, so it grew by 8% year on year. This performance was quite solid. You remember that in quarter four, we had quite a strong position. Nevertheless, we are still growing. And the quarter on quarter increase was 3%. We observed very good results in accountants' transfer fees, brokerage fees, and FX fees, both on a quarterly and annual basis. When it comes to the income, slide 19, total income was almost 3 billion zlotys. Significantly better year-on-year and quarter-on-quarter. Of course, this net C income and net interest income largely contributed to that. Lower income on other businesses are linked directly with the situation of the financial market, but we are glad about our recurring income that is related to higher business activity of our customers.

Slide 20, operating cost, total cost grew by 13%. mainly due to regulatory charges. While closing the book, prior to the receipt of the letter from Bank Guarantee Fund, we made an accrual of 222 million zlotys. Then we got this letter from the BGF, and we made a slight adjustment that will be recognized in quarter two.

Excluding administrative cost line, including contributions to BGF, KNF, and Central Securities Depository of Poland, the total cost grew by 5% year-on-year. Administrative cost alone, excluding the price of Y19%, mainly due to higher prices, and services, but it drops by 9.6% on quarter. As a result, salary rises grew by 6% year-on-year, but decreased by 8% on a quarterly basis, which results from higher provision rates in Q4 last year.

Operating costs

and some other consumers totaled $143 million in annual terms. They stayed on the same level, but increased by 11% quarter-on-quarter. Staff costs of some other consumers dropped by 13% year-on-year and stayed flat quarter-on-quarter. Of course, we can see what is happening on the market in terms of inflation, and we know that it will cause a further pressure on administrative and staff costs this year, But nevertheless, we will try to maintain high cost effectiveness of our business.

Let us move now to provisions, slide number 21. The net balance of provisions overall on a consolidated basis was 119 million zlot, and was three times lower compared to 2021.

As we know, the beginning of the year saw a really conducive good makeover of the economic landscape.

And so the GDP growth in 2021 was close to 8%, while the financial condition of our customers was good and stable. But we are also worried that most likely this is going to change in depth on the surface and at the stage it is difficult to assess the impact of all the developments on the credit rate. If we are aware of this uncertainty, and we are aware that as we're looking in, we decided to create a management provision of 59.4 million blocks.

That reflects the impact on the risk of potential deterioration in microeconomy countries, driven by, among other things, the war in Ukraine.

We now, to individual clients and provisions on those segments, individual and SME segments, we have a stable share of past year loans and low entry to the NPR portfolios. In corporate portfolios,

we have much better balance of provisions than in previous quarters. This was driven by very low interest to the NPR portfolio in the corporate segment and now such interest in the CAD sector.

In the bank, we saw the non-proclaiming portfolio of retail loans with 83 million in principal. This had a process impact on our bottom line of 7.1 million. And some private consumers, to portfolio, saw what was worth 200,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000

both denominated and indexed with PI indexed at 0.86.

Now the risk is measured and presented in accordance with IFRS 9. This is important in terms of provisioning, as the provisioning basis was reduced and led to releasing 38 million drops worth of provision. More details on that, of course, are available in our list. NPL coverage ratio stayed at 61%, while the NPL ratio was 4.8%.

Slide number 22, the Banking Tax and Regulatory Cost. Let's move on to the clients.

Slide number 10.

As you can see, 288 million.

Banking tax, 277 million.

Corporate income tax, 397 million.

So very high burden.

Let us move now to the summary slide number 23. It was definitely a really good beginning of the year. After six months, we recorded 960 million slots in net slots, nearly 3 billion slots in total income, with good net interest and fee income.

Of course, we realized that the situation might change in upcoming quarters. Already in quarter one, we saw the growth in interest expense, and this trend is going to accelerate. The excellent economic situation at the end of the previous year and at the beginning of the year seems to be by gone, while the slowdown will impact the credit rate cost. Of course, we are dealing with inflation and the pressure on the cost. There is still a continuing uncertainty related to Swiss bank loans. And on top of that, there are different areas related to VISA.

And all of this leads to additional uncertainty.

And one more thing that it's worth highlighting. Talking about credit risk provisions, I mentioned the tendency to the accounting rules when it comes to the treatment of these S&P mortgage loans. And in the table, that's why you can see a set of lines in the top and then bottom. We received a decision to sell the mortgage.

In the first quarter, we sold the loans worth $ 10 billion.

In the second quarter, it was two times more than the mortgage. The sale of mortgage loans amounted to $ 2 billion, and there were more. But they do not reflect yet the number of many implications of many factors that are going to emerge going forward. We realize that upcoming quarters will be determined by economic slowdown and high inflation.

Nonetheless, without any change, We are optimistic one time for this year's performance and we are highly determined to build our business and for our customers. And now the floor is yours, please ask your question. Good morning. In the meantime, we received a couple of questions, so let me answer them before we get more questions. I'm trying to group them. We got some questions about volume, capital. Maybe let's start with capital. There was a question about valuation of bonds and how they affect funds. The negative impact of the bond is the increase in interest rates on the platform.

The capital ratio, the consolidated one, dropped by 90 basis points in the quarter one.

The CEO told you about that in the presentation. increased by 20%. When comparing the situation quarter on quarter and year on year, I'm talking about the comparable results including the cycle from 2021.

The change was 90 basis points due to negative valuation of bonds. RWA grows, but this was neutralized. Synthetic securitization transaction that decreased RWA by 1.5 billion and we changed the accounting approach to the legal risk that translated into 1.4 billion in RWA. So in terms of denominator, those negative and positive changes offset and the drop by 90%.

basis point is due to a change of bond prices. We've made some suggestions, but, of course, this is different because, as I mentioned, we reduce our output for the U.S. economy during the war in Ukraine, first of all. And also because of the inflation of higher interest rates by one person. But it seems that the beginning of the year was much better than expected. 8% growth at the beginning of the year. Maybe the growth of the year will be higher per year by 4%, but nonetheless, quarter on quarter, we expect it to slow down, and this will be reflected in credit volumes. So we reduced our outlook for the credit flow a few months ago. We were thinking about 7-8% now.

It seems to be much less.

But maybe the pace of growth will be half of what we originally thought, maybe 4%. The total growth probably will be seen in business loans, because at the beginning of the year we saw quite a bit of growth here. To a larger extent, this will be the growth in working capital loans. As far as the results are concerned, let's start with the last 17th.

The net profit margin in the first quarter, in terms of interest rates at the moment, 2.24 billion, better year-to-year 63%, the annual interest rate of the year from 93% to a level of 4.02%, here, of course, a 3.1% increase, We would like to grow the fields. I know the question about measurements of margin.

There were a few questions about that.

Let me start with the expectations of the bank. One is something just with on deposit. and the overall outlook when something like this happens, taking into account higher interest rates, we might expect improvement on the credit side because there were over income interest rates and there will be more. When it comes to the balance sheet based on floating rate and fixed rate, well, this, of course, is reflected in our income.

When it comes to the cost of financing, the prices of the products, of course, we are monitoring the market. We would like to have a good investment in the savings proposition for all our clients. And this is already... or witness on the market, but there are higher costs of funding. But I think it's worth saying that last week we decided to increase the interest rates on the causes for retail customers. This refers both to our standard trading account that we were paying 1% and also termed the causes with new money. Keep having on offer our bundles to higher interest rates also. Investment funds, bundles with investment funds, and we also increase the interest rates on the mobile.

Looking at NIM in orders to come. Yes, that's true.

This is driven by the growth. And of course, we are not talking about the growth in volume in quarter one. And this all fuels the growth in negative income. That was one question. What is the position of the bank and what was the reason for the NCR decline and what is the focus of the key driver of the NCR decline mostly both in Mandapoli and the Kosovo Reserve or the NBP? And another factor that affected probably was something that affected the market.

Because there was a really good liquidity on the market, that's why we actually provided make money to our subsidiaries.

And of course, the growth in loans led to the growth identified in LCR.

There is also a question about the Prime Minister's proposal and whether his proposal to apply payment holidays for all mortgage loan borrowers in PLN will cause a high decline of net interest income in selected courses if this participation will be high. Well, this proposal was presented only yesterday. It is too early to assess that proposal or provide any simulations without knowing the final solution. We were invited, as far as I know, to work out the final solution about new VBON rate

The new Polonia rate may be applied.

So we haven't done any simulation yet.

We do not have enough data to... speculate what the final result or impact on the net interest income can be.

Are there any more questions? Yes, we just received a few questions. What's the probability of paying the retained dividend from the dividend capital for the profits from 2019 and does sometimes require the KNF consent to pay the interim dividend. I would not speak about the probability of dividend payment. We need the KNF consent because tomorrow we will be at the annual general meeting we will be discussing the 30% so this would mean that the total dividend will be higher than the entire profit last year and this requires the KNF's consent If the probability was low, then we would not propose that dividend request to the annual general meeting. But will it happen after all? Well, it depends on many factors because we do not know the situation in the sector, on the market, and what will happen. So I would not say what is the probability of dividend payment, but the maximum amount is in the dividend reserve. So the profit from 2019 when we met the criteria for payment of 50% of the dividend. So minus of course minus Swiss franc criteria. And can you tell us about the update on their sensitivity of net interest income of Santander on interest rate hikes. Well, you can ask about that, but for a couple of months we have stopped publishing such information due to quite reasonable factors, because we provided to you a lot of information about the proportion of floating interest rates and fixed interest rates both on the loans and the pricing over three months and six months you can calculate that quite easily but when it comes to deposits and there is a very large question mark if we were to provide any calculation of sensitivity it would have to be included in a very wide range and it would have to be based on very robust calculation So due to numerous factors that materialized recently, we stopped publishing the sensitivity. And when it comes to the change in interest rates for deposits, I already talked about that. We took certain actions in quarter one. In quarter two, we will continue those actions because some changes in interest rates on deposits will be made this week. The next ones will come in May.

All of this will affect the net interest income. As to the management provision, as I said, 39.4 million exactly, as I said before, this provision actually reflects the impact on the risk parameters of a potential...

It was not created for any specific provision because the question was whether it refers to the Kolkhoz portfolio specifically.

No.

We just anticipate that something might actually develop given the deteriorating situation in the economy and certain risks might affect individual portfolios, but at the moment it's too early to define this and allocate provisions accurately to individual segments of portfolios. This is the sort of provision that we created during the COVID pandemic and it played its role.

Maciej, would you like to add anything to that?

This provision of 59.4 million blocks reflects the potential impact on the risk parameters across all portfolios. And this is the so-called post-model adjustment that we also made during the recovery funding. And now, what is going to happen in quarter two? We will analyze exactly the risk parameters of all models for all portfolios, and we will see if the scale of that provision will be just consumed by parameters, or will that be sufficient or not. In the meantime, I would like to bring up, but at this stage, we have found that the risk A lot of uncertainty, deteriorating outlook, all that made us to see this vision in a specific map. I don't see any more questions.

Is there anything coming in?

No, there are no more questions.

I think we answered all the questions that were asked. So, thank you very much, Philip. Thank you. And if you have any other questions, of course, please stay right here and we will answer them. Thank you. Have a good day. Bye. from the year 2021. So this change is 90 points and it can be said that in the whole this change corresponds to the negative valuation of the obligation. We have, of course, in the report, when it comes to RWA, an increase in business, increase in volume, increase in balance, but it has been neutralized by two elements. At the end of March we had a transaction of synthetic securitization, which increased the RWA by 1.5 billion. And we also had this change in the accounting standard in terms of taking the reserves at legal risk, which the President was talking about. This is an effect of 1.4 billion in the RWA, so we can say that in general on the RWA in the denominator, these positive and negative changes have occurred, and for the fall of 90 base points, in fact, the change in the RWA The next question is about the volumes. What is the bank's credit forecast for the credit market? Where would you like to strengthen your activity? This question also came up during the presentation. We changed the macro forecast, because in today's times this uncertainty is the most common. We lowered the PKB forecast as a result First of all, wars in Ukraine, but also the effects of high inflation costs, higher than 100%. We have lowered it by over a percentage point. However, it also turns out now that the beginning of the year was much better than expected, probably even with an eight from the front, which means that the annual GDP growth will be higher and will probably be above 4%, which does not change the fact that from quarter to quarter We expect this slowdown and it will also have an impact on credit volumes, so we have brought our credit growth forecasts closer. A few months ago it was even 7-8%, now it seems that it may be much less, even perhaps this dynamic will be half as small. in the area of 4%. A stronger increase will probably be this year when it comes to loans for companies, which we also observe at the beginning of the year. Probably to a greater extent it is a repayment loan than an investment loan, which is also understandable, taking into account, on the one hand, the uncertainty that affects the investment, and also increased inflation, higher costs cause higher demand for a repayment loan, it is also so transparent. And in individual loans, at the end of the year, we have only 2%, which results in a clear slowdown, which has already started slightly in the first quarter, but will probably continue mainly when it comes to daily loans. As the president said, we would like to grow faster than the market. It can be seen that in cash loans, this sale in the first quarter has already built up nicely. A question about NIM. There are a few questions. Maybe I'll start with what are the expectations of the bank for the percentage of deposits in the second quarter. And generally some kind of outflow on NIM. Taking into account, of course, higher interest rates, it should be expected to improve on the credit side as a result of the 100% interest rates that have already occurred and those that will occur. About our division, how much of the balance sheet is on the exchange rate, on the permanent rate and how this exchange rate for the month 3.6 looks like, I said a quarter ago, so you can see it in the interest rate already now. When it comes to financing costs, deposit prices, then of course we are looking at market conditions. We want to have a good investment and safety offer for all groups of customers. It can already be seen in the first quarter that there is an increase in financing costs, so it is not that there is no deposit repricing at all. However, I think it is worth saying that last week we made a decision to increase the percentage of deposits for individual customers. It applies to both our standard savings account, there will be 1%, as well as temporary support for new funds. In our company, there are still locations with increased percentage combined with investment funds. Investment funds, we have also increased the percentage of a mobile location to 3%, so these indicators must be taken into account. Looking at it in the following quarters, whether the increase in the percentage result is due to the increase in NDP stocks or other activities, it is mainly due to the increase in NDP stocks and the influence of these on market stocks, especially Vibora. And besides, of course, we are talking about the increase in volume in the first quarter, which also improves it. I have one more question, I see that they have come before. What is the situation of the bank's liquidity, what was the outcome of the LCR decline and what are the forecasts? The main factor affecting the LCR decline was the change in the bond reserve. In addition, for us, two characteristic factors, that is, one for us and the other for the entire market, are external financing of independent companies, leasing and factoring. It was not extended and there was a refinancing by the bank. precisely due to the very good liquidity situation and the fact that the OCR exceeds the liquidity measures very, very much. And of course, also to some extent, the increase in loans due to the decline of the OCR. There was a special reserve.

There is still a question whether the proposal of the Prime Minister regarding the credit vocation for all investors is hypothetical. in Polish złotych będzie oznaczała duży spadek wyniku odsetkowego w wybranych kwartałach, gdy partycypacja będzie wysoka. Jakie zasady księgowe będą przyjęte przez bank w tym zakresie? Proszę Państwa, ta propozycja na slajdach została pokazana wczoraj. Naprawdę to jest zdecydowanie za wcześnie, żeby ją oceniać i robić symulację, nie znając jak gdyby ostatecznego rozwiązania. Zostaliśmy jako sektor zaproszeni również do wypracowania, jak ja to rozumiem, tego rozwiązania ostatecznego. Jeśli ono nie będzie, to wtedy jest mowa o starce Polonia. Naprawdę tutaj jest jeszcze tyle niepewności i tyle znaków zapytania, jak to ostatecznie będzie wyglądało, że żadnych symulacji jeszcze nie robimy i we have too little data to speculate here what it will have an impact on the results or on the interest rate.

I don't know, are there any other questions? Yes, just a few questions came up. What is the probability of a dividend payment from the dividend capital, a proper profit in 2019, 1,57,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000, which is slightly over a billion, which means that the total amount of dividend payments would be higher than the profit from last year, which, of course, requires the regulator's consent as part of the administrative procedure. If we did not believe that it could be paid, that is, if the procedure were low, we would probably not go with this dividend fund, with this proposal, However, whether it will happen, it also depends on many factors that we do not know today. We do not know what the macro situation will be, we do not know what the sector situation will be and what will happen in the future. What is the chance in terms of numbers. However, the maximum amount is the one on this fund. these profits from 2019, when we met the criteria for dividend payments of up to 50%, i.e. we met 100 minus the criteria for the 50%. Can I ask for an update of the information on liability as a result of the surplus for the increase in costs? You can ask, but as you have seen, in the last few months we have stopped publishing this information and we have stopped for quite important reasons, because while on the side of the assets, it seems to me that the situation is clear and probably with the amount of information that we have passed on to you about The proportion of participation, the variable stop, the constant stop on the side of assets, both when it comes to loans and obligations, and on the variable stop, even what part of the portfolio is repriced within a month, three and six, it seems to me that it can be calculated very easily under the appropriate assumptions. However, on the side of deposits, this is a big sign of uncertainty and if we were to give some sensitivity, it would be based I mean, it would probably have to have a fairly wide range, so the lack of very solid calculations, which are very likely to materialize, caused us to stop publishing this information at some point, so as not to make mistakes. However, as for the scale of the change in the percentage of deposits I said more or less, it started, you can see it in the first quarter, in the second quarter there will be a continuation, because these changes that I mentioned come to life, actually some this week, some in May. And these two sides, it will affect how the interest rate and the interest rate will behave. Yes, please.

Yes, yes, in addition to this management reserve, as I said, these 50, as I understand it, 59.4 million, it has an impact on the risk parameters of a potential deterioration of macroeconomic prospects. We did not focus on a specific POT. Here is the question whether it is a corporate POT or not. We just anticipate that maybe something is due to this deteriorating macroeconomic situation, there may be risks that will touch individual portfolios, but it is too early to allocate it precisely to individual portfolios. We also created such a reserve during COVID. I don't know if you remember, and Janusz probably has his share.

I don't know if Maciej would like to add anything here? No, actually, this 59.4 reserve is a potential impact on risk parameters in all wallets. And this is the so-called post-model adjustment, which we also did with COVID. In the second quarter, there will be a full and accurate analysis of the risk parameters on all models, on all portfolios. We will see if the scale of this reserve will be reflected in the parameters, whether it will be sufficient or not. We are at the beginning of April, so we will see what the second quarter will bring. Big uncertainty, potential worsening of perspectives, it all causes that such a reserve on some scale should be created now. I don't see any more questions.

Agnieszka, is there anything else? No, nothing more has come in the meantime, so we answered all the questions that came up.

Dziękujemy zatem bardzo.

Dziękujemy bardzo i jakby jeszcze jakieś pytania były, to wpiszemy oczywiście.

Dziękujemy.

Miłego dnia. Miłego dnia. Do widzenia.