Mbank Sa

Good afternoon, ladies and gentlemen. Welcome to our conference where we will present the results of MBank Group in the second quarter of 2023. First, I would like to introduce our speakers today. We have a new speaker, Mr. Pascal Ruland, Chief Financial Officer. Pascal, welcome on board. Thank you. And our speakers, who you know well, whom you know very well, Mr. Czaristy Pułkowski, Chief Executive Officer, Mr. Marek Luczny, Chief Risk Officer, and Mr. Marcin Mazurek, Chief Economist. Let's start.

Okay.

Well, that's the sort of regular message from our side. fabulous operational results and unfortunately financial outcome is not that as rosy as the operational can suggest. So on the positives, no doubt that we continue to have strong net interest income. I would say to some extent better than we expected since we expected flattening of this line already the previous quarter, but it still performs reasonably well. Some small drop in net fee and recent commissions, partly due to the higher cost, partly due to some less active balance sheet. Overall costs have been growing in a reasonable a pace cost income. I don't think that requires any type of a comment. I don't think it's sustainable in a long period of time, but obviously we are benefiting on one side from high growth of our income. On the other hand, I believe reasonable cost management. Cost of risk will be commented, I would say, below our guidance. And then the name of the game in the second quarter was the cost of the legal risk related to the heritage portfolio. If you've been fully familiar with, that was a write-down of 1.5 billion slots, which is a huge amount of money. That will be explained since I can imagine that there will be a lot of focus on this issue. There is profit that is excluding some items on the Swiss franc issue and taxes. I have to say this, I think the highest ever. So that only confirms the operation of the bank is performing very well. I already sort of commented that the balance sheet is slowing down. The long growth was negative. Deposits, I think, as a consequence of our very strong liquidity position and management of our margin, I think, you know, was under some pressure, but we don't consider this being an important development. If we can move to the page four, that summarizes to some extent, you know, the first half of the year. I would say not that much to be commented on this particular one. I think that the most impressive is obviously the returns which the bank has been able to deliver on the core business, which is extremely high. And I have to say, obviously, the question whether it's replicable, the answer is not necessarily, but I have to say the core business is performing extremely well. Out of this, I think, you know, the cost income, I think, you know, it's not that much quarterly development, but it shows that we are, in the course of this year, able to keep, you know, the cost income ratio below 30%.