Erste Group Bank Ag S/Adr

Good afternoon, we have 9 o'clock, my name is Agnieszka Dobrzycka, I am responsible for investment relations at Erste Bank Polska and today I would like to welcome all of you very warmly to the presentation of financial results for the first quarter of 2026, for the first time Erste Bank Polska after the final change of name and after the weekend rebranding. We have with us today Michał Gajewski, President of the RST Bank of Poland and Maciej Reluga, Vice President of the RST Bank of Poland. Good morning. I would like to remind everyone at the beginning that during the whole time of this teleconference you can send your questions to me by e-mail. My e-mail is agnieszka.dodzyskamałpa.rst.pl You can also ask questions via the link in the interview. Mr. President, I give you the floor.

Thank you, Agnieszka. Once again, good morning to you. Welcome to our press conference. As Agnieszka said, this is the first result presentation, which we present as ERST Bank Poland. This is a symbolic moment for us. We are opening a new chapter in history. with new energy and the values that Group S gives us. In a moment I will discuss the financial results, but first I would like to emphasize that the first quarter was for us a time of intensive work on rebranding and integration with a new shareholder. It was one of the more complex operational enterprises on the Polish banking market. Everything went according to plan, in a safe and stable way and, most importantly, unnoticeable for our customers. We are, of course, fully focused on customers and further improvement of the offer and the quality of the offers. Returning to the results, the most important positions at the beginning, gross profit in the first quarter of 1 billion 816 million. I will add that our tax and regulatory burdens will amount to 1 billion 423 million. In the first quarter, the Group worked out a net profit of 1 billion 28 million. Let's move on to the fourth slide. Here we are serving 6.1 million customers. We currently have 4 million digital customers. This is an increase of 5% year-on-year. The vast majority of intermediaries, i.e. 4 million, use our mobile application. Here we also have an increase of 8% year-on-year. When it comes to client deposits, it is 228 billion, and in total from TFI it is 259 billion. The gross credit portfolio is PLN 182 billion, and the assets in general reached the level of PLN 304 billion. Slide 5. I was talking about net profit. The net profit is PLN 3.63 billion. From the provision of PLN 772 million, it increased by 6% annually. This is an all-time high. in our bank, a record quarter in this position ever. In general, the revenues are close to 4 billion, they are higher than a year ago, so you can see that on the top line, despite a 100% decline, a 6-fold decline, a 2% decline, the general revenues are significantly higher than a year ago. A strong capital position, ROE at the level of 20%, i.e. an attractive return for shareholders, excellent liquidity, LCR at the end of March, over 200%. In the 6th and 7th slides, we present detailed information about how our business is developing, how our clients are growing in individual segments. When it comes to detailed clients, we run 4.9 million personal gold accounts. An increase of 2% year-on-year. In the first quarter, we opened 132,000 accounts. This is 18% more than a year ago. We gave 3.9 billion cash loans, which is as much as 35% more year to year. Here we also have record monthly results. In March, 1.5 billion sales. This is again an all-time high. We have never had such excellent sales of cash loans. When it comes to mortgage loans, the first quarter was 2.6 billion. In March alone, it was over 1 billion in mortgage loans. Detailed investment funds reached a value of 30 billion. It was an increase of 28% annually. Also very good results. MŚP. In the first quarter, we established 22,000 companies, small and medium-sized companies. This is 9% more than a year ago. 1.4 billion credits for this segment. This is again 12% more than a year ago. We are still developing digital processes here. 126% increase in the volume of credits given entirely end-to-end online. Corporate banking. Here we observe the activity of clients also much higher than in the previous year, also in remote channels. We have a 9% increase in the volume of loans in this segment, an 8% increase in loan limits for this segment, so you can see that here the activity of customers and appetite for loans is improving in an important way. CIB, i.e. investment banking. We have very good results. They confirm our role as a leader in this market. Slide 9. Brutal loans. We are already moving on to the balance. At a consolidated level, the growth is 7% year-on-year. This balance position is 172 billion. In the annex, we have on slide 26, we show the continuation of the level of new sales. There, first of all, this cash rate deserves attention, 35% growth year-on-year. Slide 10, customer funds, 259 billion. Client deposits alone amounted to 228 billion. individual client deposits fell by 4%, but it is important to know that the structure is improving because the current deposits are growing by 10% and as a result of this change, it is beneficial when it comes to the structure of deposits. By the end of March, 26% of the total deposits were terminated, and a year ago it was almost 30%. Investment funds reached a level of almost 31 billion at the end of March and there was a 23% increase year-on-year. The account of the results, slide 11, we start with the interest rate result, it is close to 3.1 billion, it was lower than a year ago, 3.6, we all know for what reasons, 100% cuts, The decline in interest rates is partially compensated by a faster decline in interest rates, which, of course, reduces the pressure on this position of the score. In the annual volume, interest rates fell by 8, and costs by 22%. The interest rate in the first quarter was 4.53% and decreased by 11 base points. Of course, this is the result of Let's move on to the provisional results. As I said, the all-time high of PLN 782 million. There is a clear improvement year-on-year, but there is also a 3% increase in the quarterly volume. The increased activity of customers is also pleased. Here you can also see an increase in credit actions, because in credit provisions there is a clear increase in currencies and cards. as well as asset management and brokerage activity. In the context of the 100% interest rate cycle, it is of course an important element of income diversification and it is important that this position grows for us. Slide 13. Our income. The seventh quarter in a row is about PLN 4 billion. So, in spite of these downfalls again, it can be seen that here the revenues are staying at a high level. In the first quarter, the revenues in general even increased year to year, which is of course a very good message at the level of the top line of the report. The structure of revenues reflects the expectation of a shift, from interest rates to non-interest rates. In my opinion, we have a more favorable diversification of their sources. Maybe such an important thing, the share of the non-interest rate in total revenues has increased in the last year by a few percentage points to 23.3%. slide 14 operational costs, in total in the first quarter 1.7 billion, here there were of course many single-use factors, first of all BFG deposits, here is an important difference between the deposits last year and this year, and integration costs and rebranding. After excluding all these elements, the costs in the quarterly did not increase, a small increase of 0.2%. Important, certainly foreshadowing your questions. In the first quarter, integration costs amounted to PLN 24 million, and rebranding costs, which you can already observe in our app, in the departments, in the entire documentation, these rebranding costs in the first quarter are PLN 67 million. The 15th slide is the net return on the expected loan losses at the consolidated level, which is PLN 144.5 million. The risk rate is 37 bps, it remains at a good level. The quality of credit portfolios is good and resistant to the economic situation. Key risk indicators at a stable level in the GMPL index 3.6%, improved. Before the year, I remind you, it was 4%. We did not report significant unexpected events in the first quarter that would have an impact on the level of receipts. As you can see on the slide, the joint sale of credit credibility of the non-working portfolio reached a value of PLN 164 million and brought a gross profit of PLN 53 million. Summing up, slide 16. PLN 1.8 billion in gross profit, taxes, of course, much higher Therefore, the net result is 1.028. The costs of legal risk in foreign currencies, i.e. here we have francs, is 166 million PLN. We added. Our effective tax rate was 42.2%. When it comes to business activity, a record profit on provisions, very good sales and customer activity. Business Momentum is really, I think, used at a high level after this first quarter. Of course, all customer activities related to remote banking are growing. good growth when it comes to new customers. In MŚP, the acquisition there grows 14% year-on-year. In SELEKT, i.e. in this affluent segment, 15% increase in customer acquisition. So this year started very well. We are starting a new stage. We have a new brand. We continue this high efficiency. Of course, we want to build on this tradition of the ERSTE Group Bank and thus strengthen our market position. That's it for my presentation. I invite you to questions.

Do we already have questions, Agnieszka? Yes, the first question is maybe I'll take it to you, Michał. How is integration with the ERSTE Group going?