Unicaja Banco, S.A.

Good morning, everyone, and thank you for joining us for our first quarter 2026 results presentation. First of all, I would like to confirm that earlier this morning, before the market opened, we published this presentation and the related financial information on the CNNV and our corporate website. Today, our Chief Financial Officer, Pablo, will be the one presenting the first quarter trends. The presentation will last approximately 20 minutes. and it will be followed by our usual Q&A session. Without further ado, I would now like to hand over to Pablo.

Thank you very much, Jaime. I will start on page three, where we show the main highlights of the quarter. Starting with our business activity, I would like to highlight that business volumes have accelerated their growth rate to over 3% year-on-year. This progress has been supported by an almost 4% growth in customer funds and supported by an increase of almost 11% in balance sheet funds, mainly mutual funds, where we are showing a 17% year-on-year growth, maintaining a 9% market share in net inflows. This improvement is is also supported by a 2.4% growth in total performing loans, which for the second consecutive quarter continued to accelerate their growth. Turning to profitability, net income for the quarter amounted to $161 million. Both net interest income and fees showed year-on-year growth, something that combined with lower provisions More than offset the mid-single-digit increase in total cost. The adjusted return on tangible equity remained at 12%, while the cost-to-income ratio stood at 46%. Asset quality remained strong. The net MPA ratio stood at just 0.7%. The NPL ratio continued its downward trend, reaching 2%, and its coverage further improved to 80%, significantly above the 70% reached a year ago. The cost of risk also showed a positive trend, declining to 20 basis points. marking one of the lowest levels in recent years and below our initial guidance. Lastly, we remain focused on value creation. Our seed-one ratio stayed stable at 16% during the quarter as we are allocating capital for shareholder remuneration and lending growth. Two weeks ago, we paid the 2025 final dividend, which together with the interim dividend paid in September, reached $443 million. This represents a payout of 70%, resulting in 9% dividend yield. Looking ahead to 2026, we expect to further enhance shareholder remuneration up to 95% of net income thanks to our relatively higher capital position and also to our robust organic capital generation. Overall, our tangible book value per share adjusted for dividends was 9% higher than the previous year. In summary, all trends remained solid throughout the first quarter of 2026, confirming the recent positive momentum. We recognize that uncertainty has increased in the past couple of months and it may be too early to provide more specific effects. Nevertheless, based on the information available so far, and despite market volatility and the possible direct and indirect effects of the current geopolitical risks, we reaffirm all targets and commitments outlined in our strategic plan. The beginning of 2026 has been better than initially expected, which is obviously great news given the uncertain environment we are facing. All in all, we confirm our initial guidelines for the year. I will continue with the commercial activity on page 5. As you can see, total customer funds increased by 3.9% year-on-year. Unbalanced funds grew significantly by 1.6% or 2.4% when excluding the public sector. Of balance sheet funds rose by 10.6% driven by a remarkable 16% growth in mutual funds. It is worth mentioning that mutual fund balances have grown from $14 billion to nearly $17 billion over the past 12 months. On the next page, you can see the details regarding our assets under management and insurance business. As highlighted in the previous slide, assets under management increased by 11% year-on-year, with mutual funds showing particularly strong growth of 17%, despite challenging environment this quarter. Net inflows reached 468 million, representing a strong 9% market share. On the right side, we show the revenues from these two business segments, which have risen by 4% compared to the last year and now account for 19% of total revenues. Now on page 7, as you can see, loan volumes continue to grow. Total performing loans increased by 0.8% quarter-on-quarter and 2.4% year-on-year, reflecting a positive performance across all segments. Private sector loans rose by 1% compared to the previous quarter, while corporate loans posted an increase of over 3%. lending to individuals maintain its gradual growth trajectory. Mortgage volumes remain stable during the quarter and on a year-on-year basis, whereas consumer loans continue to expand at high single-digit rates like in the previous quarters. Overall, first quarter evolution demonstrates slightly better trends than previous quarters driven mainly by improvement in the mortgage and SME segments, both of which showed some growth this quarter, while maintaining positive dynamics in corporates and consumer. On page 8, you will find details regarding the new loan production. During the first quarter of 2026, new lending to private sector increased by 10% compared to the previous year, reaching 2.5 billion. As we have just seen, we are delivering growth in the loan book in all main segments. You can see consumer lending maintains very good momentum Mortgages are close to our natural market share level. And in business lending, lower volumes are explained by some large tickets last year. But we are delivering strong portfolio growth here on much better portfolio and customer management. Turning to slide nine. We would like to briefly present some evolution of digital sales and customer acquisition. In the top left, 65% of consumer loans were granted digitally, significantly higher than the 49% in the previous year. It is also worth noting that digital consumer loans amounted to $160 million, representing an 82% increase compared to the first quarter of 2025. In mutual funds, the weight of digital sales grew significantly. from 25% to 36%, reaching 230 million, which is nearly 50% higher than last year. Also, as shown in the bottom right of the slide, I would like to highlight that more than 1 million clients use their Visum with us, which is the instant payment tool most used in Spain, something that is quite relevant for the transactional business as you can only have one Visum account per phone number. Also, it is worth noting that in the first quarter of 2026, the acquisition of new salary accounts has doubled, explaining the quarterly increase in the cost of deposit, as we will see later. The commercial campaigns include an upfront compensation for the client in exchange for their formal commitment to maintain their salary with us in the future. As you can see, a strategy that is working very well to further improve the transactional business with our clients, which is one of the main commercial focus of the bank. Moving now to slide 10, we highlight our continued progress in our sustainability strategy. We keep financing the transition and actively pushing green bond issuance. During 2025, our green bonds enabled the avoidance of 142,000 tons of CO2. Our pool of eligible projects continue to grow together with our ESG business, both green and social. We are well on track on the decarbonization targets over the lending portfolio. Overall, the evolution we are seeing is very positive and this is clearly reflected in our sustainability ratings that show a consistent positive trend. We now continue with the review of the P&L in the next section in slide 12. Net interest income increased by 1.3% compared to the first quarter of 2025. On the quarter, it fell by 1.2%, primarily due to the lower day count. Total fees were 1% higher than in the previous quarter and 3% higher than last year. Overall revenues reached $520 million, 1% higher than the first quarter of 2025. Total costs grew by 1% on quarterly basis and 4.5% compared to last year, in line with our mid-single-digit growth guidance. Long-lost charges decreased by over 20%, both quarter-on-quarter and year-on-year, confirming the positive asset quality trends. Other provisions were 9% lower than last year, and also significantly lower than last quarter when we booked some restructuring charges. Profit before tax stood at $232 million. After accounting for $71 million in taxes, which include $6 million of the banking tax, net income reached $161 million. representing a 1.4% increase over last year. Now, let's review the income statement in more detail. Starting with the net interest margin on page 13, as you can see, the customer spread remains stable compared to the previous quarter, reversing a negative trend that began in the first quarter of 2024. Loan yield increased by two basis points, the same as the cost of deposits, which, as I mentioned earlier, grew due to the impact of our successful salary account campaigns. Net interest margin fell to 1.69% due to the volume effect driven by higher balances in repo market activity. However, if we exclude this effect, net interest margin stayed stable during the quarter. On the following page, we show the details of the quarterly evolution of net interest income, which decreased by 1% during the quarter, but was 1% higher than the previous year. The lower day count of the quarter amounted to 6 million euros, while the NII decreased almost 5 million euros. So without this effect, NII would have actually increased in the quarter. As you can see in the bridge, the increase in deposit cost, mainly driven by customer acquisition campaigns, and the lower lending income, which is also fully explained by lower day count, were partially offset by liquidity, ALCO, and wholesale funding. Turning to fee income, the trend observed in recent quarters was confirmed, with a slight decrease in banking fees, which is more than offset by non-banking fees growth, mainly from mutual funds and insurance. Despite the negative mark-to-market at the end of the quarter, fees from mutual funds continue to improve. increasing 19% year-on-year and nearly 4% quarter-on-quarter. Fees related to assets under management and insurance further strengthened their contribution this quarter, accounting for 53% of total fees, up from 48% last year and 43% in the first quarter of 2024. In slide 16, we show you the details of the rest of revenues, which also shows a relatively stable trend in recent quarter, with a slightly lower trading income this quarter, owing to market context but nothing material. Regarding total costs, personal expenses continue to grow due to the salary increases 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 the mid-single-digit growth guidance. In the right-hand side, You have our cost-to-income ratio that grew to 46%, mainly owing to the mentioned initiatives that we expect to have a positive impact in the future revenues, something that going forward will help to revert this trend. All in all, the ratio remains below our 50% target. On the next page, we continue with the cost of risk and other provisions which, in my view, are one of the most positive news of the quarter. As you can see, on the left-hand side, the cost of risk was 20 basis points, which is the lowest since the merger with LiberBank and below our initial guidance of less than 30 basis points for the year. The remaining provisions, including legal ones, were also lower, leaving total provisions at 43 million in the quarter, which is 19% below 2025. Provisions showed a very positive evolution at the start of the year, which is obviously great news and leaves us in a comfortable position for the rest of the year. Moving now to page 19. The bank's return on tangible equity continues its upward trajectory, reaching 10% as of March 2026, or 12% when adjusted for excess capital. As we frequently highlight, we consider the return on Seed 1 to be a reliable benchmark for us, as it effectively isolates the relatively larger accounting equity that UNICAJA must uphold to offset higher solvency deductions, mainly from deferred tax assets. In the first quarter of 2026, the return on Seed 1 adjusted for excess capital stood at 17%. Lastly, on the right hand side, you will find the tangible book value per share plus dividends, which has grown by 9% over the past 12 months. Let's move now to the credit quality section on page 21. As you can see on the slide, positive trends remain in place. NPLs are down 20% year-on-year, with their coverage growing to 80%. Overall, NPAs are also down 26% year-on-year, with coverage also improving to 79%, a very positive evolution that leaves total net problematic exposure at only 0.7%. If we now move to solvency, on page 23, you have the quarterly breach. Seed 1 was very stable in the first three months of the year. Quarterly capital generation, including a positive impact from the stake in EDP, was mainly allocated to shareholder remuneration and lending growth, which are the two main uses where we plan to put to work our comfortable solvency position. leaving the seed one stable at 16% in March, 2026. On the next page, you will find our NREL position. As shown, our NREL ratio stood at nearly 27% at the end of March, providing a substantial buffer above the key requirements listed on the right. including an MDA buffer that was higher than 680 basis points. In terms of liquidity, all ratios remain among the highest in the sector, with the NSFR at 159% and the LCR at 292%. Finally, our loan to deposit was 69% in March, summarizing the excess of retail funding of the bank that, among others, explains the size of our structural ALCO portfolio that we show on the following page. The yield of the portfolio grew from 2.6% to 2.7%, a small improvement owing to the reinvestment and active management. Duration and size also represented a modest increase in the quarter. It is also worth noting that 81% is public debt and that 83% is included in the amortized cost portfolio. Finally, as shown on page 27, despite geopolitical uncertainties, we reaffirm our guidance for the year. We expect net interest income to exceed 2025 figure, net fees to grow at low single digit, and total cost to increase by mid single digit. Regarding cost of risk, our initial forecast was to finish the year below 30 basis points, which we also maintained despite the strong first quarter outlook. of 20 basis points. It is obviously better than expected, a start of the year, but given the current situation, we prefer to be prudent. In terms of business volumes, we remain well on track to achieve the target of 3% growth. Finally, we confirm our expectation that net income for 2026 will surpass the $632 million from last year. This concludes my quarterly update. that as demonstrated shows continued improvement in the bank's overall financial position with a stronger commercial performance, enhanced results, consistently high solvency and very positive outlooks for shareholder remuneration. Thank you very much and I will now hand over to Jaime for the Q&A session.

Thank you very much, Pablo. We will now begin with the Q&A session. Please remember to limit yourself to two questions each one. Also, kindly mute your line after asking your questions, please. Operator, please open the line for the first question.