Unicaja Banco, S.A.

Good morning to everyone, and thank you very much for attending our three-quarter 2025 results presentation. This morning, before the market opened, we published this presentation along with the rest of the usual financial information at the CNMV and on our corporate website. For this presentation, we have today our Chief Financial Officer, Pablo González. As usual, the presentation will last around 20 minutes, and it will be then followed by the regular Q&A. So without further delay, I will give the door to Pablo.

Thank you very much, Jaime. I will start on page three, where we show the main highlights of the quarter. Starting with the commercial activity, I would like to highlight that business volumes continue to improve 2% year-on-year, supported by stable loans and deposits and a significant growth of balance sheet funds, mainly in mutual funds, where we are growing an impressive 24% year-on-year, making 9% of net inflows market share. Total performing loans have stopped declining, and as you can see, They were stable in the year-on-year terms, supported by a 39% increase in new lending. Regarding profitability, gross margin grew by 4%, while total provisions fell 19%, leading to a net profit of 503 million in the first nine months of the year. That is 11.5% above the first nine months of 2024. This is quite positive because I would like to remind you that a bit more than one year ago, when we presented our 2027 strategic plan, we explained to you that the initial idea was to reach a net income above 500 million in each of the three years of the plan. And we have already reached that target in the first nine months of the first year. This improvement has also allowed us to reach a return on tangible equity adjusted by the excess of capital higher than 12%, while keeping the cost to income ratio at 45. Recent trends in credit quality have also remained positive. The net NPAs ratio is now below 1%, with gross NPA ratio at 3.7%, which is 115 basis points below the one we had one year ago, explained by a significant decrease of 25% in the stock of these assets. Total coverage. continues to grow to 75.4%, well above the 70% that we had one year ago. The cost of risk also presented a positive trend, falling to 24 basis points in the quarter, which is below our initial guidance, and that is why we are now improving 2025 guidance. Finally, the bank's solvency and liquidity have also been strengthened. Seed 1 improved by 27 basis points in the quarter to 16.1%. The tangible book value per share plus the dividends already paid in the last 12 months grew by 10% year on year. the loan-to-deposit ratio remained at 70%, and the liquidity coverage ratio closed to 300%. So all in all, as you can see, during the third quarter, the trends remained quite strong, confirming recent positive trends. I will continue with the commercial activity on page five. As you can see, the total customer funds grew 2.9% year on year with the unbalanced sheet funds stable and off-balance sheet funds growing 12.6%, supported by an impressive 24% growth in mutual funds. Bear in mind that mutual funds balances have gone above 16 billion compared with less than 13 billion one year ago. On the following page, we show you the details of the assets under management and insurance. As I just mentioned in the previous slide, assets under management have grown 13% year on year. In the case of mutual funds, the growth has been 24%. The market share in net inflows remain at 9%. On the right, we show the revenues from these two business that have improved by 10% in the last year, representing now 18% of total revenues in the first nine months of 2025. Regarding loans, During the quarter, total performing loans fell owing to second quarter seasonal advances. Excluding such effect, total performing loans fell 0.7% in the quarter. However, they were stable compared with the same month of last year. By segments, private sector loans fell 0.8% year on year, with corporate loans decreasing a bit more than 2% and stable loans to individuals. As you can see, total performing loans are more stable than a few quarters ago, owing the improvement on new loan production that we show on the next slide. Private sector lending grew 39% year on year to 7.1 billion. showing positive trends in all segments. One more quarter. Business and self-employed segment is particularly noteworthy, where formalizations in the first nine months grew from 3 billion to almost 4.5 billion, representing a 47% increase. Mortgages, new lending grew 24%, and in consumer lending, we grew another 37%. On slide nine, we would like to briefly remind you that we continue to make progress in our commitment to sustainability as part of the strategic plan. In addition to advances in social and governance matters, here I want to focus on the commitments made regarding the climate transition. where I would like to highlight a couple of figures. On one side, we have 2.1 billion in green labeled bonds issued to date, which have allowed us to save 81,000 tons of CO2 in 2024, with ample collateral to continue issuing in the green format. On the other hand, As you can see, decarbonisation targets cover a significant part of the finance portfolio, where we are showing strong progress. This is supported by our sustainable business, which we continue to drive by assisting our clients in their decarbonisation pathway and offering specific ESG products. We now continue with the review of the P&L in the next section in slide 11. Starting with quarterly trends, net interest income was stable in the quarter, growing by a small 0.2% because lower cost of deposits and wholesale funding compensated the ongoing repricing of loans at lower rates. Total net fees, supported by non-banking fees, were also stable despite the usual seasonality of the quarter. Gross margin reached $515 million, which is 5% below the previous quarter, mainly due to lower dividend seasonality. That, as you all know, is relatively higher every second quarter. Total cost grew 1% quarter on quarter, leaving pre-provision profit at 276 million. Total provisions and other results were better than the previous quarter, among others because we have a capital gain of around 10 million from the disposal of a banking license this quarter. All these left pre-tax profit of 232 million and net income at 165 million, which is 5% above the third quarter of last year. In the first nine months of the year, the net interest income fell 3.5%. However, higher non-interest income, including a 2.8% increase in fees, left gross margin at 1,573,000,000. Total costs continue to grow and meet single digit in line with our guidance, leaving pre-tax profit at 862 million, 2% above the previous year. The lower provisions booked this year left pre-tax profit at 708 million, which is 8% above last year, and net income at 503 million, 11.5% higher than the first nine months of 2024. As I said before, it is worth noting that when we presented our new business plan, Nine months ago, we guided for a net income about 500 million for the full year, something that we have already achieved this quarter. As we usually do, we will now review the P&L in more detail. Starting with the net interest income, on the next page, we have the customer spread evolution. As you can see, customer spread fell eight basis points in the quarter, mainly owing to the ongoing repricing of floating loans that was only partially mitigated by lower cost of deposits. However, our net interest margin grew three basis points in the quarter. As we have explained in the past, in our case, owing to our balance sheet structure with much more deposits than loans, customer spreads only shows one part of our business with clients because it is not considering the income that we do with the excess of retail funding that comes into the P&L through the structural debt portfolio. This is why for banks like Unicaja, with a 70% loan-to-deposit ratio, it makes more sense to follow the net interest income margin trends and not only the customer spreads by itself. On the following page, we show the details regarding the quarterly evolution of net interest income that grew a small 0.2% in the quarter. As you can see, the lower cost of liabilities, mainly of customer deposits, mitigated one more quarter, the negative impact from the repricing of the loans at lower rates. Two different effects of similar amounts that explain the net interest income remaining stable for another quarter. If we move now onto fees, We can see how they were stable in the quarter and grew 2.8% year on year. A positive evolution explained by higher income from non-banking fees, mainly from mutual funds and insurance, that are the two business where we are focusing our commercial efforts, compensating the lower banking fees that, as you know, are explained by the implementation of loyalty plans. In slide 15, we show the details of the rest of revenues, which also shows a positive evolution in the year on all the lines, and mainly due to the new banking tax, which as you know, is now included in the tax line of the P&L, while in 2024, it was booked in other operating charges. Regarding total costs, Personal expenses continue to grow due to the salary improvements agreed with the unions and new hirings. Other administrative expenses also reflect some of the initiatives needed to implement our business plan, leaving total costs 5% above the previous year in line with our mid-single-digit growth guidance. In the right-hand side, you have our cost-to-income ratio that remains stable at 45%. On the next page, we continue with the cost of risk and other provisions. As you can see, on the left-hand side, the cost of risk in the third quarter of 25 was 24 basis points. which is below our initial guidance of 30 basis points, one more quarter. This is why we have decided to formally improve such guidance to below that level for the full year. Other provisions that mainly include legal provisions were lowered this quarter, but in line with our current guidance. Finally, other profit and losses included a positive one-off of around 10 million in the quarter from the disposal of the BEF banking license. Overall, total provisions and other results improved from 279 million two years ago to 191 million in 2024, and 155 million in the first nine months of 2025. A very positive evolution that also has helped to further improve the profitability of the bank, as we can see on the following slide. The Rote of the bank continues to improve, reaching 10% in September 2025 or 12% when we adjust the excess of capital. As we saw before, our net income has improved from 285 million in the first nine months of 2023 to 451 million in 2024 and above 500 in 2025, a significant improvement that has increased our return on seed one to 17%. As most of you know, we believe that in our case, the return on seed one is a good reference that isolates the relative larger accounting equity that Unicaja needs to have to fully absorb its higher solvency deductions. Finally, On the right-hand side, we have also included the tangible book value per share plus dividends that, as you can see, it has grown 10% during the last 12 months. Let's move now to the credit quality section in slide 20. As you see in the slide, positive trends remain in place. NPLs are down 20% year on year, with their coverage growing to 74%. Overall, NPAs are also down 25% year on year, with coverage also improving to 75%, a very positive trend that remains and leaves total net problematic exposure below 1%. If we now move to solvency, on page 22, you have the quarterly breach. Retained earnings represented 21 basis points after considering 81 coupons and the accrual of a 60% dividend cash payout. the mark-to-market of our stake in EDP added another nine basis points, and the rest of the moving parts, mainly higher risk-weighted assets, explained a small negative of three basis points in the quarter. All in all, the seed, one fully loaded, reaching 16.1%. On the next page, we show you our MREL position. As you can see, our MREL ratio stands at 29.6% in the quarter, maintaining an ample buffer against the main requirements that you have on the right-hand side. Among them, I will highlight the MDA buffer that has grown above 750 basis points. Regarding liquidity, we continue to have a very strong position with a significant amount of liquid assets, a loan-to-deposit ratio of 70%, the NSFR at 159%, and the LCR at 295%. All of them, as we used to say, are best in class in liquidity metrics. Finally, Here we show the regular fixed income portfolio details that, as you all know, is an structural portfolio funding with the excess of retail deposits. The duration of the portfolio has decreased a little bit to 2.5 years owing to interest rate risk management. However, the yield has remained stable during last quarters at 2.6% despite the lower rates. To conclude, let me update you on our 2025 guidance in slide 27. As you probably remember, in the second quarter we increased our net interest income and fee guidance. This quarter, owing to the recent positive trends, we are improving a little bit further our net interest and cost of risk guidance. On the net interest income, as you saw during the presentation, the trends continue to be slightly better than initially expected. Among others, owing to the fast decrease in the cost of liabilities that has compensated the negative impact of lending repricing. And so, we increase our guidance for the year from above 1%. billion 450 million to above 1 billion 470 million. On the other hand, as we have mentioned during the presentation, the cost of risk has been lower than initially expected and we now believe it will be below 30 basis points for the full year. Because of these two upgrades, we now expect the adjusted return on tangible equity to be close to 12%, slightly better than the previous 11%. Finally, let me finish by reiterating that the first nine months of the year have been very positive. We have been improving structural profitability while further reducing the problematic exposure and generating additional capital. All these together with positive commercial trends that we expect to continue to improve further in the coming quarters. As a consequence of all these, our shareholders remuneration has also improved and it will continue to improve as we have reflected in our strategic plan. Thank you very much. I leave it here. We can now move to the Q&A. Please, Jaime, whenever you want.

Thank you, Pablo. We will start now with the Q&A. Please, remember to ask only two questions each one. Also, remember to mute your line after your questions. Operator, please open the line for the first question.