Banca Monte dei Paschi di Siena

Good morning. This is the Chorus Call Conference Operator. Welcome and thank you for joining the MPS Group's second quarter and first half 2026 presentation. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by press star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Luigi Lovaglio, Chief Executive Officer. Please go ahead, sir.

Thank you very much. Good morning and thank you for joining us. The first half of 2026 confirms the quality of our transformational journey of growth. We are presenting today the evidence of the industrial scale that Monte dei Paschi has achieved together with Mediobanca. And let me be clear, this is only the beginning of what That combination can do. In the first six months of the year, we generated more than 1.1 billion euro in net profit. We expanded lending, we increased customer financial assets, and we strengthened capital. We continue to deliver strong, sustainable, and increasingly diversified performance, thanks to a stronger franchise, a more diversified business model, and a greater ability to create value over time. Monte dei Paschi today is a strategic asset of the Italian economy. It is an important economic infrastructure of this country. It has systemic value. That systemic value depends on the integrity of the bank itself. Let me put it simple. If you split a power station in two, each part may still stand, but you risk losing power. You reduce the capacity to deliver energy where it is needed. Banking works the same way. Monte dei Paschi is not just a collection of branches. It is a network of relationship, knowledge and trust. Branches are not walls, they are antennas. Every day they collect signals from the real economy and they turn local savings into credit, credit into investments, investment into economic growth. If the system loses power, business receives less energy. That is, less credit, slower, more expensive decisions, less support for the real economy. So the question is not only what Monte dei Paschi is worth today, it is what value our bank can generate for this country tomorrow. But now let's focus on the results achieved. What stands out in the second quarter is quality. Growth in earnings, growing commercial activity, growing client assets. and further strengthening of the capital. Net profit exceeded 600 million euro in the quarter and 1.1 billion euro in the first half. Revenues increased, costs remained under control, capital strengthening to 16.3%. Customer assets at 300 billion euro. and continue to grow across all major business lines. The most important message is that performance is becoming broader and more diversified, driven by strength of the franchise as a whole. Profitability continues to improve quarter after quarter, year after year. Second quarter net profit exceeded 600 million euro, more than 20% versus the first quarter. First half net profit exceeded 1.1 billion. This level of profitability is creating value today, but is also creating strategic optionality for tomorrow. Moving to the next operating profit. Net operating profit exceeded 1 billion in the quarter and 2 billion euro in the first half. Growth reached 11.8% quarter on quarter and 8.2 year on year. This is one of the cleanest indicators of the quality of the business. It shows that growth is being generated by the core franchise. So, stronger revenue, a better business mix, disciplined costs and controlled risks. Now, let me show how this translates into operating leverage. Second quarter gross operating profit reached almost 1.2 billion euro, up 8.7% quarter-on-quarter and 11.4% year-on-year. This reflects a strong combination of revenue acceleration and cost discipline. Revenue increased during the quarter, supported by excellent fee performance. At the same time, operating costs remained under control. As a result, the cost-income ratio improved further to 42%. This is a positive JAWS and positive JAWS are one of the key indicators of execution quality. Let me now take you to the first half view of the gross operating profit. The first half picture confirms the same trend. Revenues increased 4.1% year-on-year, operating costs declined 0.7%, gross operating profit increased 8% to 2.3 billion euro, and the cost-income ratio improved by 2 percentage points to 43%. The message is straightforward. We are delivering profitable growth, we are maintaining cost discipline. Our capability in execution is the key driver of value creation. Let me now move to the two main revenue pillars, starting with the net interest income and then fees. Net Interest Income remains remarkably resilient at approximately 2.1 billion euro in the first half and increased to 1.06 billion in the second quarter. Growth in volume affected management of commercial spreads. These factors confirm that the Bank is able to protect margins while supporting lending growth. At the same time, we are enjoying an increasing contribution from fees and capital like businesses, and it is visible in the next slide. If there is one area that best illustrates the evolution of our business model, it is fees. Income is becoming an increasingly powerful growth engine. Portally fees reached 617 million euro and increase of 8.4% quarter on quarter and 9% year on year. Growth was driven by wealth management, advisory activity and commercial banking fees. This is exactly the trajectory we outline when presenting our strategic plan and execution continues to validate that strategy. Looking at the first half as a whole, This increase to almost 1.3 billion euro growth reached 3.6 billion euro year-on-year. The direction is clear. More diversification, more recurring revenues, more resilience. It is the result Client Relationship and Advisory Expertise and demonstrates the value of our group distribution platform combining synergically Mediobanca and Monte dei Paschi capabilities. Let's now look at what sits behind in terms of commercial momentum. Commercial performance remains exceptionally strong. Customer financial assets reached 300 billion euro. Wealth management gross inflow exceeded 6 billion euro. Mortgage production increased strongly. Consumer finance continued to expand. What these numbers really represent is trust. Trust from households, from business, from communities. And trust remains one of the most valuable assets a bank can have. Monte dei Paschi is not A simple collection of assets. It is a network of relationships, knowledge and trust built over generations. Customer loans continue to expand, reaching $131 billion, up 1.8% quarter-on-quarter and up 5.6% year-on-year. Growth was broad-based, retail banking, consumer finance, corporate investment banking. We continue gaining market share in businesses where relationships matter most. This is important because long growth remains one of the clearest indicators of relevance within the real economy. Commercial direct savings reached €107 billion, up per year and up sequentially. The important point is that customer balances remain stable despite a highly competitive environment. This stability provides funding strength. Funding strength supports lending growth and lending growth supports economy and consequently earning generation. This is how franchise value is created over time. Now let's move to indirect funding. and direct funding reached 193 billion, growth exceed 9% year-on-year, asset under management increased more than 10%, asset under custody also continued to expand. This is one of the strongest indicators of our strategic evolution. The group is becoming increasingly diversified, increasingly well management oriented and increasingly focused on recurring customer revenues. This trend improves earning quality, improves resilience and strengthens valuation fundamentals because high quality assets generate long term value creation. Let me now turn to costs. Second quarter operating costs were €867 million, down by 2.2% compared with the same quarter last year. The dynamic quarter-on-quarter is 1.1% up, almost absorbing inflation, labor contract renewal impact, and higher variable remuneration accruals linked to performance. Let me look now at the first half cost evolution. In the old first half, operating costs declined by 0.7% year-on-year to 1.7 billion. This may appear straightforward. In reality, it is a significant achievement. We absorbed inflation, we absorbed labor contract renewals, we continue investing in strategic initiatives, and yet total operating costs still decline. The key takeaway is execution. Revenue growth is important, but sustainable shareholder value is created when revenue growth is accompanied by cost discipline. That combination is visible throughout our results. Turning to asset quality. As you can see, asset quality remains very solid. Cost and risk remain fully under control and fully aligned with our business plan trajectory. MP ratio both gross and net remain at the best levels and this reflects quality of our underwriting and quality of our risk management framework. Liquidity remains exceptionally strong, counterbalancing capacity stands at almost 50 billion, the LCR increased to 169% and the NSFR remains at the level of 122%. During the quarter, we successfully completed additional wholesale funding transactions, including senior recovered bond issuances. The group continues to retain significant flexibility. Now, capital. Capital remains one of the strongest differentiators of the group. Our fully loaded quarter one ratio increased to 16.3%, an increase of 40 basis points during the quarter. Our capital buffer remains among the strongest in the sector, close to 680 basis points above regulatory requirements. Capital strength gives us three advantages. Flexibility to support growth, flexibility to reward shareholders, and flexibility to evaluate strategic opportunities. In the current strategic context, our capital position is one of the reasons why Monte dei Paschi can assess every strategic development from a position of strength. Now, Purchase price allocation. This slide provides an update on the purchase price allocation process related to Mediobanca. The process was substantially completed during the second quarter. The final allocation identified intangible assets including brand, value, customer relationship and core deposits. Following the completion of the process, Goodwill stands at approximately 2.3 billion euro. This milestone provides greater visibility and represents another important step in the integration journey. A journey that continues to progress according to plan. Let me briefly comment on Mediobanca's first health performance. Medibank delivered a strong set of results, confirming the quality and the resilience of the franchise. Revenues increased to almost 2 billion euro, net profit exceeded 710 million euro, and return on tangible equity reached approximately 15%, supported by record performances in corporate investment banking and consumer finance. The second quarter was particularly strong, with revenues of about €1 billion and net profit of almost €390 million. Growth was supported by multiple business engines, including corporate investment banking, consumer finance and insurance, while maintaining strong capital, excellent asset quality and cost-income ratio below 40%. The wealth management franchise continued to stabilize during the quarter, Asset under management increased, net outflows reduced significantly compared with the first quarter. I strongly believe that this is a strong signal how important and strong and powerful is the combination between Mendovanca and Monte dei Paschi and I strongly believe that the trend that Mendovanca is presenting will further improve providing even higher contribution to the total profitability of the group. Let me now show why the combined business mix is strategically important. This slide makes the evaluation logic of the group more explicit. Today our revenue base is supported by multiple high quality business lines with significant weight of asset gathering and wealth management businesses. This diversification is increasingly valuable and strengthens earnings sustainability. We are building a business model that is more balanced, more scalable and better positioned for long-term value creation. This continued growth and evolution supports a step-up in earnings quality and, over time, a re-rating of the group's valuation profile. This is precisely the direction outlined in our strategic plan. Let me spend a moment on integration. Execution remains exactly where it should be, on track and on time. Over the last few months, we have moved from planning to implementation across all major work streams. We have completed the key corporate steps, submitted the core regulatory filings, and continue to work closely with the competent authorities as we target Regulatory approvals during the third quarter and effectiveness of the reorganization in the fourth quarter. At the same time, business transformation initiatives are already being implemented. Client coverage models have been defined. Commercial cooperation between networks and product factories is progressing and the future operating model is taking shape. The integration of platform data and security infrastructure is progressing according to plan and remains fully aligned with our day one objectives. Equally important, we have secured all the legal, regulatory and compliance foundations required for a successful integration. The integration is really becoming an operational reality. It brings us closer to unlocking the full value of the combination. Let me conclude this section with what ultimately matters most, value creation. Synergies progressing ahead of schedule, giving comfort to deliver results even above the target of 2026. On the revenue side, we are already seeing tangible results, mainly from increasing collaboration between corporate investment banking, By executing together with Monte dei Paschi joint leading lending and advisory transaction. Distribution of Mediobanca certificate and asset management products, launch of lending products factories distribution. On the cost side, the group is capturing benefits from optimizing procurement and shared supplier agreement. Launching joint tenders and removing duplication like in-provider or facility contracts. On the funding side, we continue to benefit from issuance, executed at tire spreads, leveraging the scale and the strength of the combined group. Let me now address the offer announced by Intesa São Paulo. As already communicated by the Board, the preliminary observations published on 16th July remain fully valid. The Board's preliminary view is that Intesa San Paolo does not currently appear to fully compensate Monte dei Paschi shareholders for control, synergies and franchise value, while exposing them to execution and regulatory risks. While conversely, Monte dei Paschi plus Mediobanca strategy has a strong industrial rationale and a clear execution profile, which among other things envisages significant value creation and cumulative shareholder distribution of 16 billion euro over the planned period. I have consistently supported banking consolidation Scale matters, investment capacity matters, technology matters. But scale should strengthen players, not reduce diversity. Consolidation should ultimately be evaluated through industrial logic and value creation, not fragmentation. Competition remains a fundamental source of innovation. Customer service is resilient. A competition survives because there is a plurality of players. A national champion should strengthen the country's competitive fabric, not reduce it. Otherwise, the crown may become larger. But the kingdom becomes smaller. That's why the board, with the support of its advisor, will continue to conduct its assessment independently and rigorously. The objective is clear, to identify the optimal path that maximizes value for Monte dei Paschi stakeholders while preserving the integrity of the franchise. Let me conclude with three final observations. The first half confirms the strength of our operating performance. Net profit exceeded 1.1 billion euro. Profit before tax approached 2 billion euro. Double digit growth dynamic year on year. Commercial momentum remained strong. Capital continued to grow. And asset quality remained excellent. The integration with Mediobank continues to validate its industrial rationale. Execution is progressing according to the plan, synergies are materialized, making us comfortable to exceed our original target. Our confidence in the future continues to increase and the visibility provided by current performance allows us to raise our guidance for 2026 profit before tax to 3.6 billion euro. Finally, I would like to say that like in the Odissea poem, which now has become a must-see movie, some routes close and others open. From our safe harbour, We will continue our own journey, fully committed to exploring every strategic option that can create long-term value for our stakeholders. Thank you. I'm now happy to take your question.

Thank you, sir. Excuse me, this is the Coruscant Conference Operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. To remove your question, press star and 2. The first question comes from Sophie Petersens of Goldman Sachs.

Yeah, thanks a lot for taking my question. So my first question would be on the strategic options that you're evaluating. Could you maybe elaborate a little bit more here also what the timetable is, how long it would take to get EGM approval? or do calls, sorry, at AGM. So if you could kind of discuss the strategic options, would you also consider selling the general estate? And yeah, what are you kind of thinking about? And then my second question would be on dividends. How should we think about potential interim dividend paid in this? Like or announced with the third quarter, do you still consider interim dividends or is this kind of off the table? Thank you.

Ok, so I just take the question regarding the strategic option. So I believe the real question is which strategic path best unlocks the value. And I believe the best outcome is the one that delivers full value and carries forward what we have built rather than fragmented it. So As you know, building the best strategic option is much like assembling a mosaic. For a long time the pieces kept moving, then one by one the picture comes into focus. So we are fully committed to explore any opportunity with a clear direction to optimize the value for our shareholders.

Good morning. On the timetable, it takes 30 days to call an EGM, so we will be on time anyway. As regards the question on interim dividend, the assessment will be done in the context of the analysis of the strategy options that, as the CEO said, we will carry out following a rigorous approach aimed at maximizing long-term value for all stakeholders.

Okay, thank you. And EGM, just on the calling to EGM, you haven't done it yet, right?

We haven't called an EGM yet. As I said, there will be anyway an EGM that will be called for the integration, so for the merger with the Mediobanca that is expected based on the current table to be convened in the first half of September. So the notice will be issued in the first half of September.

Okay, thank you. The next question is from Luis Pratas of Autonomous.

Hi, good morning everyone. Thank you for taking my questions. My first one is on the general estate. You know, there has been plenty of speculation about a sale of this estate. I wanted to ask you how strategic is the general estate for you? How much capital do you think you could release if there was a sale? and instead of a sale, could you consider distributing the stake in kind to your own shareholders? And then my second question is again on defensive actions, in this case related with Banco BPM. So, you know, last Friday we had Banco BPM board of directors terminating the measure of discussions with Monte dei Paschi I wanted to ask you whether you could provide extra color on what went wrong for no agreement to be reached and whether investors should now close this chapter with Banco BPM or could you become a bit more aggressive and still pursue Banco BPM in a takeover offer as speculated in the press? Thank you.

Okay, thank you for raising this topic about Generali.

So, I describe the stake in Generali as a nice-to-have, because it represents an important source of value and strategic optionality for Monte dei Paschi and Mediobanca Group. I have to say that it also seems to be regarded as a particularly relevant nice-to-have by a number of other market participants. Any future decision will be assessed in the interest of the Monte dei Paschi shareholders, taking into account the value of the stake, the capital and the regulatory implications, market conditions and the group's industrial strategy. As far as BAMI, I would separate the two points. The decision to discontinue the consultation was taken and communicated by Banco BPM, a board of directors. It is not for Monte dei Paschi to comment on the counterparty's internal decision-making process. What I can say is that we didn't approach this opportunity as detectors. We analyzed it. with conviction because we saw the potential to create a leading Italian banking and financial group capable to delivering a significant value for the shareholders of both banks.

As Banco BPM itself acknowledged, the industrial rationale was significant. However, the discussion didn't progress to a stage where

Structural evaluation attempts could be fully discussed and assessed. Bank of BPM chose to discontinue the consultation before that point. So we respect the decision and we move forward accordingly.

On the second question, I don't honestly think investors

Should think in terms of chapter being closed or open? Today there is no transaction under discussion with Banco. If strategic opportunities arise, because our focus is not on producing a transaction, our focus is on creating value for Monte dei Paschi shareholders. So, as I said, the strategic opportunities arise, we will assess them with the same discipline we always have. Investoration, evaluation, capital efficiency, execution, certainty, regulatory feasibility. And perhaps this is practically where a maritime analogy is useful. As I mentioned before, Like the Odissea poem, some routes close and others open. And I have to say that every experienced navigator knows that winds can change. Sometimes they carry you towards new destinations, sometimes they bring you back to ports from which you had previously sailed away. So, our responsibility is not to predict the wind, because it's quite difficult, but to be ready to capture it whenever it serves the interest of our shareholders.

On the capital treatment of Generali currently in our regulatory capital, Around 4 billion euro is Goodwill, which is currently deducted pro rata, then following the merger with Mediobank will be deducted. Around 2.5 billion is deducted, so on top, and the rest... To get to our carrying value, which is currently 6.9 billion euros, is risk-weighted assets at 250%.

The next question is from Lorenzo Giacometti of Intermonte.

Yes, good morning. Thank you for taking my questions. I have three. So the first one is on fees. Basically, the fees rose 8.4% quarter on quarter with the release that was flagging a few larger CIB transactions. So I was wondering how much of this quarter's fee level is one-off deal-driven versus a sustainable run rate and what's the underlying recurring fee trajectory for the remaining part of the year? and the second one is on trading, which was pretty strong for the first half. I was wondering if you can give us some color about the trajectory of the second half of 2026. And the third one is again on the strategic options. So can you be a little bit more specific on what these options are? are on the perimeter you're looking at and on the potential time frame of the potential decisions. And if a credible combination were to present itself, what are the two or three non-negotiable conditions the board would require before engaging?

Thank you.

Ok, so I will take the question regarding fees and then the other two strategic questions, right, on options and what is not negotiable, as you said, right? Ok, let's start from the fees. I think, as I mentioned during my presentation, This is a key pillar of our strategic plan. We strongly believe that we have a huge potential in terms of network, franchise of both institutions. In this quarter there was a particular high performance from Mediobanca, from some transactions performed by corporate investment banking. I really believe that despite this was an important transaction, so we can consider it an exceptional one, my view on the potential of Mediobanca is that there we can really aim at getting significant higher contributions going forward. So what we can consider as an exceptional one, according to me, can be considered like recurrent in a very short period of time. The combination of Mediobanca with Monte dei Paschi is a very successful, strong, industrial, powerful combination. Having said that, in terms of guidelines, as we were already mentioned in the previous presentation, we believe the Fees and Commission will keep having a positive trend as usual in the third quarter. We are going to have our early period, but I believe that also quarter on quarter, year on year, we will show a positive dynamic and we are fully focused on getting this trend In a growing mood, considering that the synergies that we plan to realize with Mediobanca are really reaching a level that make us thinking that can be even above the target we set in our business plan. So, positive trend thanks to the strength of the two franchises. Now, I think on strategic option I already mentioned it's quite difficult to now to go deeper in what was the key message we passed during the presentation. As we were discussing during the board in July and also recently, and I think is quite well described. What is considered by the board important in our press release, I want just additionally to mention that we are looking for a strategic option that will generate significant value for our For all stakeholders, aiming at preserving the integrity of our institution. And I think this is one of the most important aspects in the direction that the board expressed with the communication on the 16th of July. But not because... We believe and there is a sense of tradition on that, just because I strongly and personally believe that breaking up a network, we are not increasing value, not only for stakeholders, but also for the economy of the country. And that's why we are fully committed On

Trading is slightly more difficult to forecast compared to AI and fees. First and second quarter were particularly good. Having said that, we still expect a relevant contribution also for the next quarters. Thanks to our activity, which is mainly client-driven, and also to the expertise of our market people, both at Mediobanca and Monte dei Paschi, in structuring solutions for our clients.

Okay, thank you.

On synergies, as you said... Synergies may prove even higher than your 700 million target, but do you have any color about how much higher may they prove or not?

Thanks.

This is a moving target, I have to say, because every day we are enjoying... A strong cooperation between the teams and so I can say just based on what we are observing in terms of trend at least we can have a growth compared to the original target of other 100 million euros. This, as I said, is something that we are going to explore and I believe can be a target that will make us thinking more and more about how powerful is our combination.

Okay, thank you very much.

As a reminder, if you wish to register for a question, please press R and 1 on your touchtone telephone. The next question is a follow-up from Luis Pratas of Autonomous.

Hi there. Hi there again. I have another question in case you decide to make an extraordinary distribution. I wanted to ask you, you know, what's the timeline there? And for instance, can it be approved quite simply by the ECB? And if I'm not mistaken, your management target in the business plan is 13%. But you never actually issued like any 81, for instance. So what level can you go down if you wanted to make an excess capital distribution tomorrow? Thank you.

So, I start from the last question.

Our common equity ratio appetite is 13%.

So, in general terms, we always said that this is a reasonable level of Thank you very much. We need to call for a general shoulders meeting which takes 30 days and so we think we are fully on time to potentially distribute if the assessment of strategy options will lead us there in extraordinary dividends.

I'm sorry, just another follow-up, but in terms of the ECB, how much time does it take for them to analyze that possibility? Thank you.

We think that the timetable would be in line with, let's say, the time of the offer, which is outstanding.

Thank you.

The next question comes from Hugo Cruz of KBW.

Hi. Hello. Thanks for the time. I have a few questions. So first of all, Danish compromise, I think it was 50 basis points, not including your targets. Do you still expect to get that benefit? And what do you think you can do with the capital released by the implementation of the Danish Compromise? Could it be distributable? Second, the DT absorption. I'm not sure. So, you know, the guidance was alpha billion a year. I think you've probably done 300 million roughly in the first half. So can you update us on the timing of these? Do you think... You can actually absorb them faster and if you could give some guidance there. And then the third question on, you know, you gave the PBT guidance, which is very helpful, which is after restructuring costs. Is that still, you're still assuming 300 million of restructuring costs or is it different for this year? And could you give us guidance for the OPEX before restructuring costs for the full year? It would be very helpful. Thank you.

So, on the Danish Compromise, we have an outstanding question to the ABA, so waiting for the answer. As you know, let's say the Danish Compromise per se should not lead to regulatory arbitrage. Having said that, we think that in case it is extended to the consolidated Group, we think that would be distributable. Then second question on the tea absorption. Yeah, in the first half, the absorption was around, the utilization was around 300 million euros. Actually, the underlying business is doing particularly well. So compared to the guidance of around 500 million euro per year, we cannot exclude that There might be an acceleration in the utilization. Third point on restructuring cost, we are following, let's say, our business plan, so the guidance is confirmed on operating cost. We go on with our optimization activities and the synergies with Mediobanca to offset as much as possible all the inflationary effects such as, for example, the renewal of the national labor contract.

Thank you.

The next question is from Juan Pablo Lopez of Santander.

Yes, good morning for taking my questions. Sorry if any of them has been already answered. I'll join a bit later. My first question is regarding the strategic options and how do you see the passivity rule, if you see any limitation there. My second question is regarding a potential disposal of the stake of the government and if you have any comment on this one. And lastly, the third question is on commercial activity. If you have seen any increasing competition from the two large banks, corporates mainly, and in deposits, customer deposits, how do you see the evolution and competition there as well? Thank you.

Okay, let's start with strategic option because I'm going again to repeat what I said before. The optimal outcome is whichever path creates the greatest long-term value for our shareholders while preserving the integrity of our franchise. Now, clearly we cannot comment on this take long.

of the Garden.

And the third question was regarding competition. I think I was mentioning before, we are gaining market share. It's a trend that is continuing quarter by quarter. And I strongly believe that it is a trend that is based on sustainable Achievement, I think, is a trend that we can preserve. Competition is strong, as I mentioned, also in terms of deposit. Among that, as usual, we have a double approach on retail. For us, it's strategic, and so we are using an approach that can also use... and leverage on prices while on corporate is much more tactical so we like to have deposit when customer is working with us and providing additional business that can generate additional fees for us. So strong competition but we are strong as well. So we will keep our pace and trying to even overperform compared to the market. Sorry, regarding the passivity, I think is quite clear the general principle We have an obligation to look for the best solution that can improve and maximize the value for our shareholders. There are rules and we are fully respecting these rules and we will keep paying a lot of attention to that. But it's clear that we have a duty and the duty is to look for the The final question is a follow-up from Luis Pratas of Autonomous.

Hi again. On the 3.6 billion pre-tax profit guidance, could you please provide a bit more detail on this guidance, especially on the core lines, so NII, fees, revenues, costs, cost of risk?

Thank you.

So we are already, I think, in the middle of the third quarter. And looking at the results of the second quarter and the six months, I think it's quite easy to understand that if we give this guideline, how much will be the performance in the second part of the year. So what really we can say that... We plan to have a growing trend in terms of operating income. Then it's clear that, as Andrea was mentioning before, also we want to pay attention to cost. And so, to be almost in line, even if on the fourth quarter we can have a sort of seasonality, so some cost will appear, but anyway, overall, the trend of cost year on year will be almost in line, but slightly higher, but... Even better what we plan. So the coastal risk, as we said, will be in line with our guidelines, so it's easy to understand line by line what is the expected trend for the second half of the year.

Mr. Lovaglio, that was the final question, sir. Back to you for any closing remarks.

Okay, so thank you very much. I'm thinking if I have to say see you in November or eventually earlier. Let's see. Thank you very much.

Thank you for joining. The conference is now over and you may disconnect your telephones.