Moneta Money Bk

Dear ladies and gentlemen, welcome to the conference call of Moneta Money Bank regarding full year 2025 financial results. Please note that this conference call will be recorded. This event will have a live presentation followed by a Q&A session. As a reminder, all participants will be in a listen-only mode. Today's speakers are Mr. Carl Norman-Fex, Mr. Jan Fricek, Mr. Jan Novotny, and Mr. Andrew Gerber. May I now hand over to Mr. Fex, who will lead you through the conference call. Please go ahead.

All right. Thank you very much. Good morning, ladies and gentlemen. I have the pleasure to present to you Moneta Money Bank's 2025 financial results. Before we start with the presentation, I would like to apologize on behalf of our CEO, Tomasz Bruni, who cannot attend this call this morning since he contracted the flu and for that reason had to stay at home. So that said, We start on page two with the key highlights of our last year's financial performance. We start with the operating income, which came in at $13.9 billion, which is an increase of almost 8% year over year, both driven by a strong growth in the net interest income and the net fee and commission income in both segments. If you look at the operating expenses, this remains a challenge throughout the year. But I think the fact that it grew by only 2% shows that we kept costs pretty much under control. And as a result of that, the cost-to-income ratio even further improved by 2.4 percentage points to the deep below 42%. This allowed us to generate a net profit. of 6.5 billion. It also means we outperformed the initial guidance we published in January last year by half a billion share crowns. And this constitutes an increase of almost 12%. Looking at the balance sheet, here we saw a growth of almost 2% reaching a level of 505 billion share crowns. The contribution of the growth came both from lending and also increases in the funding base. The loan portfolio reached the level of 292 billion or almost 6% expansion, and the funding base showed an increase of 2.5%. If we go to the next page, here on page three, We have capital ratios and information on the returns. So let me start on the top left. The card, the capital adequacy ratio reached a level of 18.7%, which constitutes an excess of 3.4 percentage points of the relevant capital management targets which we have in place. ratio 14.1% and the MRL ratio 27.5% which is an excess of 5.2 percentage points. In terms of dividend, so in the back of the net profit and the strong capital ratios which we display here, we intend to propose a dividend of 11.5 crowns per share or an absolute amount 5.9 billion. If you look at the total shareholder return, constituting the appreciation of the share price and the net profit, then we generated a total shareholder return of an excess of 70% in 25 compared to 48% that we recorded in 24. And in terms of the return on tangible equity ratio, here we saw a significant increase of 3 percentage points, reaching a level of 23.4%. If we move to the next page, this shall illustrate the variances of our actual results versus the initial guidance back in January 25. Obviously, the most important is the over-delivery of the net profits, or 8.4% from $6 billion to $6.5 billion. If you look at the individual lines on the P&L, the key driver, obviously, was the total operating income, which came in better by $300 million, or 2.4%. OPEX, we kept very much under control, and we overperformed, as such, contributing $100 million to the results. And cost of risk ultimately came in on the bottom of the provided updated guidance of 15 to 35 basis points since the cost of risk only amounted to 16 bps. And the absolute amount meant 300 million on top supporting the process. The last one, obviously, earnings to share, 11.7 in the guidance, 12.7 now based on the actual results, which means one crown more, or 8.4%. And the return on natural equity also outperformed our guidance by 15% or 3 percentage points. And then we ended up with 23%. Now to put the result a little bit into perspective, what was the environment we were operating in last year, looking at the macro. To start with, obviously, the most important thing is the GDP, which came in widely better than initially assumed and much better than what we had in 24. So the forecast is 2.5% for for last year compared to 1.2% in 2024. Unemployment rate, a very important variable for our retail unsecured lending franchise. We always look very careful at these numbers. Yes, there have been increasing steadily, but from a very, very low level. And there's a 2.9%. This is the latest data which we have available. It's still a very moderate number. And also, you will see it on the later pages. We do not expect the rates to significantly go beyond that level in future periods. In terms of government debt, that also has been on the rise steadily. The latest number, 43.3%, government debt as a percentage of GDP, but still well below the average of the 20 countries within the Euro area, which shows a value of 87%. And the state budget deficit has been increasing year over year from 271 to 291. The latest number we are aware of for 2026 is state deficit of 310 billion. So this would mean another increase by around 20 billion year over year. And on the second page of the macro, here we show a few more details on the inflation. This is a key driver for the Czech National Bank to consider for their considerations on the interest rate level. So either you look at inflation or CPI, both levels still are above the Czech National Bank's targets. So at the level of 2.1% and 2.5% respectively. The key contributors for the inflation numbers of the values in December continue to be food and beverage, S&B, housing, energy, and anything with people doing their free time related to recreation. restaurants and hotels, so these were the main driver of the latest inflation numbers. The two-week repo rate is very important. I mean, it has been flat since May last year. As a matter of fact, the Monetary Policy Council will meet this week on Thursday to decide on the new rate, and the current expectation is that the rate remains unchanged. Yeah, I think that would include my short introduction. And with that, I would hand over to Andrew to share with you the latest on the operating platform.

Thanks a lot. Good morning, ladies and gentlemen. So moving to page nine, we look at the overall operating platform of the bank, which consists of our digital channels, our branch network, the contact center, and, of course, the ATM network. Overall, the bank serves, at the end of 2025, 1.6 million clients. which was broadly flat year-over-year. Our branch network stood at 122 units. This is down two year-over-year as we continue to rationalize the locations that we operate. The shared ATM network that we operate with three other banks stood at 1,942 machines. It's probably stable, and it's the second-largest network in the country. In terms of the employment base of the bank, We have 2,469 FTE on average during 2025. This is 1.9% lower year-over-year. And looking specifically at the front office employees, we have 1,313 FTE down 4.7% year-over-year. And this reflects our continued focus on the efficiency of deployment of resources specifically in the front office. and you see the number of employees in other positions, non-front office employees, 1,155 FTE, up 1.6% year-over-year. Moving to page 10, we look specifically at the digital platform of the bank. This really consists of four key assets. One is the primary website, moneta.csat. and then the two digital banking applications, Smart Bunker for mobile and Internet Bunker for desktop users. Overall, the digital platform users by the end of the year stood at 1.6 million. This is up 8.3% and brings us very close to our target of 100% penetration of the client-based digital channels. We have 720,000 daily visits on average during 2025. This is 5.3% higher year over year. And in terms of payment transactions, we saw 79.3 million, up 8.4%. We granted 28 billion of new loans through the digital platform, up 43.3% year over year. This reflects both general improvement in demand for lending, which you will see later on in the presentation, in the lending that we're granting. In terms of sales transactions, we made more than 83,000 sales transactions, 2% higher, and servicing transactions, 23.4 million, 1.5% higher. Moving to page 10, we look at the branch network. As I said, we had 122 branches, 1,054 FTE deployed in the branch network. We continue to achieve very high levels of client satisfaction with MPS standing at 90, up 9.8% year-over-year. We continue to see decreasing branch visits down 15.4% year-over-year as clients continue to shift much of their daily banking activity into digital banking applications. In terms of third-party product distribution, we sold 167,000 units. This is down 10.4% year-over-year with the decline driven primarily by two insurance products, We granted 48.2 billion lending via the branch network, up 12.1% year over year. Moving now to page 12, we look at the contact center. The contact center deals with five main types of communication, telephony, email, web, chat, and social media. We handle 774,000 inbound calls. This is 2.1% lower year-over-year. In terms of numbers of staff, We have 221 staff members. This is 9.4% year-over-year as we increase the staffing in some areas to focus on improving customer service. And again, we achieve very high level of customer satisfaction with NPS standing at 80% and 14.3% year-over-year. We answered 94.8% of calls. This is 1.3% higher year over year. And we handled 136,000 pieces of email communication, which was down 18.3% year over year. And finally, in terms of insurance sales, we generated $164 million in lifetime income, which is 6.4% year over year. And finally, on page 13, we look at the ATM network. As I said, the network stood at 1,942 machines, of which 812 are now deposit ATMs, which is roughly 41% of the network. And our own ATM network stood at 561 units, which is stable. In terms of usage of the network, we see a decline, 7.5% year-over-year decline in withdrawal transactions as the market continues to move away from cash. At the same time, the expanded deposit capability led to 22% encouraging clients to move away from physical branches for these types of transactions. So that concludes the operating model section. And with that, I will hand over to Jan, who will take you through the profit and loss development.