Alior Bank Stock

[Interpreted] Good morning. This is Dominik Prokop from the Investment Relations Department. Welcome to the results conference where we discuss the results after the first half of 2026.

In the first half of our meeting, there will be a presentation. We will discuss the bank results and the trends which we envisage. We will hear from Piotr Zabski, the President of the bank, who will talk about the business side; Zdzislaw Wojtera, who will tell us about the financial side; and Marcin Ciszewski will talk about risk.

After this first part, we will swiftly move on to a Q&A session. Everyone is invited to ask questions already during the first part, which will allow us to fluidly move to the Q&A session.

I hand over to the President.

[Interpreted] Good morning, everyone. Welcome at our results conference discussing the second half -- the first half of 2026.

Let me firstly look at business results, and then we'll move on to risk and finance according to our agenda.

Beginning with the heart of the matter, we've had a good quarter and a good first half, PLN 1.37 billion in revenue, which is 10% less than a comparable quarter of the previous year, but the result includes the results of CJEU. If we didn't have that one-off, it would be on the same level as the previous year, which with lower interest rates shows that our business activity brings good results.

PLN 367 million in profit, which includes the one-off that I mentioned above. Without that one-off event, we would have PLN 433 million in profit, which is 20% less than in the previous result, which would be the result of the CIT tax.

The slide shows C/I at 43A. We would have PLN 377 without that. So that's a very good result. The NPL is close to our strategic goal, similarly with the cost of risk according to our assumption, 17.5% is the capital ratio, which allows us for a good result. Very high ROEs, which if we take the CJEU out, we have a very good result. And very high level of NIM. We're still the kind of a player which has a high level of margins in the market, and that's what we want to maintain.

On the right-hand side, you can see some strategic perspective. We have 3 pillars of our growth, high resilience and operational excellence. Our activity in these pillars is quite strong. We've had a good quarter, above 50% growth in the mortgage loans, 12% in total sales. We have a growing group of customers, 6% of relation customers are banking in the mobile app. We launched the mobile app, we see considerable growth there, above 20% growth.

As for leasing, the activity is very vigorous and has brought us a 30% growth year-on-year, which is twice what would be the market situation. A very good issue, PLN 80 million at a good marginal price, PLN 1.6 billion.

And also, we are happy about the situation, the costs. EMEA 2% rise as regards to costs. Our cost discipline allows us to be very efficient in this regard. We're managing our income statement very well in this regard. As for the dividend, we paid it out at the level of PLN 1.1 billion.

A glance at the business side of our activities. Assets grew by 7%. The assets in total are PLN 106 billion performing loans PLN 6 billion deposits grew by 9%. Some additional ratios as for the share of credit assets about 65%, and we are focusing on loans rather than issues of bonds as in some other parts of the business.

As for the share of mortgage loans in total also grows, it is 35%. Now nonperforming loans is on the down track. As for deposits in retail, we have 14% growth and 31% growth of assets under management of the TFI, the investment funds of the bank. So, we are catching the customers who moved from the deposit side to the investment funds.

And for the operational activities, 2 perspectives there, the business customer and the retail customer. First, the retail customers. And let's talk about mortgage loans, and almost 50% growth there. As for non-mortgage loans, there is a steady level, slightly decreased, but the structure is changing. As you can see, there are more cash flows handed out now. So we're growing them more vigorously than in the consumer finance loan field. This is crucial because we are generating more margins there.

As for the installment loans, the sales is going down because we are choosing the cooperation with partners where we generate higher margins. And we, therefore, give up certain nonprofitable activities. As far as the balance of loans and deposit is concerned, it grew by 7%. The structure of the balance is also changing to the benefit of the loans for real estate, which is the burgundy color.

As for the of assets of retail customers, looks very well. We've had another very good quarter where all the constituent parts of the bar on the right-hand side are growing at the tune of 15% year-on-year. We are also very happy about the growth in the number of customers.

We are #7 in the banks. So, we don't have the scale of some of the competitors ahead of us, but we've had a good result, 7% growth in the relational customers, which is our internal retail ratio. Those who open accounts and transact are giving us 14% growth.

And at the bottom, you see how they are banking with us. They are banking mostly or very vigorously with the mobile app. The share of sales in the mobile channel grew by 21%. That's the number of mobile app users growth and the share of sales initiated in the mobile channel grew by -- which now represents about 43% of the total sales by our channel.

There's been a very important part of the business, which is the investment services of Alior Bank Group. The balance of customer assets is on the rise. There's been a 21% growth year-on-year in all the constituent parts of the bar that you can see.

On the right-hand side, you can see the net brokerage commission of the brokerage house. We will hear more from Zdzislaw about it, but let me just focus on the fact that we promised we will be in the second pillar of our strategy stabilizing our result by growing the commissions. And you can see that the TFI activity and the brokerage house activities deals with that handsomely.

Some additional figures, there's been a growth in the number of brokerage accounts by 4%. The funds grew by 36% in open-end investment funds and there's been a sales growth of structured products. All in all, this feeds into the commission profits at a high level than had been promised.

Both customers who are interested in investments receive from us proper mobile service. We've been offering some considerable possibilities. There's been a growth in new brokerage houses or investment fund transfers, and we have 2-digit growth in those fields. So, you can see that customers very much use this channel of distribution and wish to invest.

Now a few words about the business customer. On the left-hand side, you can see the balance of loans and deposits. The growth balance grew by PLN 1.4 billion and middle of this structure, the most active growth part is the leasing activity on the side of the bank and the leasing company.

On the right-hand side, you can see the deposits of business customers broken down into the term deposits and current and other deposits. It's quite stable. But what is important is that the yellow bar keeps growing, which is the current deposits, thanks to which and -- thanks to the changes in which we are able to decrease the financing costs.

Now as far as the business customer in terms of the quality of the loan portfolio. The performing loans on the left-hand side is quite stable. The nonperforming loan is consistently going down. On the right-hand side, you have the structure of the loan balances, micro SME and large companies. What you can see is considerable growth in the yellow bar. We are really moving on there. We generate considerable margins there. We know how to play in this field, and we can focus on this one, small and medium-sized companies. This is our focus.

As for the micro companies, well, as I mentioned previously, we will keep discussing that the NPLs are still quite high in that field. So going down or decreasing that portfolio is our priority. But it's not happening very fast because it takes time to catch up there. But we keep being active in the marketplace will take some time before this balance is stabilized.

And the burden part is obviously the large companies. There is more competition there. We are not active in all types of transactions. We want to participate in those which provide us with good margins. The competition is very tight right now. The low interest rates create a situation where not all the contracts are attractive for us, and that's how it looks.

There's been a growth in the number of new current accounts, not a big growth, just 5%, but considering the trajectory, which I mentioned previously in different segments, it gives us a satisfactory result. The customers use digital banking channels, which is something that we are very happy about and both purchase and bank online, and that's something that makes us very happy.

About the leasing now, we distribute leasing products via our banking network and via our leading company. The 30% growth is much higher than the market has grown, which makes us very happy because we've also maintained good risk parameters. The leasing portfolio grew by 14%. The segments where we try to be active have noticed growth. We have very good shares in the market there, and we keep increasing those shares. This is our response to the activities in the micro and small and medium-sized companies.

Now as for some awards and distinctions, we've had a few in the second quarter. The market has appreciated us in a number of fields. But I think it will be more interesting to hear from Marcin about how we've managed to implement our business in terms of the risk.

[Interpreted] Hello, and welcome.

Quarter 2 ended with a very safe capital and liquidity performance. Liabilities. We have issued S&P bonds valued at PLN 800 million, and it should be stressed that we had oversubscription, good margin, 1.6% above WIBOR. And at the same time, we have redeemed N-series bonds before the term with 2.81% margin. So, a significant decline in the cost of financing. This translated into MREL totally 21.72%.

On the capital side, we had a very safe performance. All indicators totaled 17.57%. Robust liquidity LCR 283% at the end of 6 months -- first 6 months of 2026. And coming back to liquidity indicator, we have a significant surplus of capital on all levels. And as a result, we can continue our growth.

Nonperforming loans ratio, we continue to go down below 5% of such loans, and it's realistic. And we are continuing our strategy. We want this indicator to go down below 5% by the end of this year. 5.16%, that was the figure for the end of the first 6 months of this year. We had one default in the business customer segment, which has impacted this indicator and the cost of risk, which you can see on the bottom graph.

Core total 0.71%, but we continue to implement our strategy. And this year and next year, implementing -- our strategy will be implemented provided that there will be no major turmoil on the market. And this indicator would go above 0.8.

Nonperforming loans balance at the end of second quarter totaled PLN 3 billion -- more than PLN 3 billion or retail customers at the end first 6 months, it stood at 2.1% in case of business customers, the quarter ended with 11.8% considering that no major changes and no major defaults will come underway. This indicator should go below 2-digit figure by the end of the year.

The cost of risk, business customers, as you can see, the impact of the default. So less than 2% is the result. And for retail customers, the result in quarter 2 sales of nonperforming loan support portfolio led to core value be close to 0.

And over to Zdzislaw.

[Interpreted] Let me now discuss financial results. Revenues. Like Piotr has mentioned, we are very happy with the development of our revenue in line with our strategy and in line with our expectations. Of course, in the first 6 months of this year, we need to take into consideration one-off event, the judgment of CJEU, which has forced us to make an adjustment totaling PLN 153 million on interest.

So we -- just like the rest of the sector, we have adjusted the balance sheet value of loans with expected value of future cash flows. And this is also reflected by PLN 153 million worth of fees and commission results. So, with dwindling interest rates and fierce competition in the sector, we have a slight increase by PLN 128 million. Our net profit is going up.

If we look at different quarters, the situation is very similar. The difference between quarters, it's slightly bigger, so parameters are changing. But adjusted revenue with one-off events gives us the same position like in quarter 2 2025.

Let's analyze our net profit. It should be stressed that in the first 6 months of this year, 3 major events took place. One of them is the adjustment of CI results as a result of CJEU judgment it's PLN 196 million. This is dark gray bar.

The second event is the adjustment of the cost of risk by PLN 98 million and the impact of corporate income tax, which is translated into higher effective tax rates. So, it's PLN 866 million altogether in the first 6 months of 2026. If we compare it to the previous quarter where we reported PLN 403 million, considering only CJEU results, we would have profit aligned to our expectations.

On the next slide, we have a more detailed breakdown of our profit and revenue, and we have 3 events in the quarter, in the first 6 months, which have a significant impact on the results. So adjustment following the CJEU judgment, higher cost of risk and higher corporate income tax, what translates into net profit for the quarter and for the first 6 months of the year.

Our key indicators, let's start with ROE. It's 11.5%, but considering the one-off event, it's 14.3%. So, it's a good result. So, 43% of COF and 37.7% NIM looks robust. And more about it, I will tell you on the next slide.

Net interest income includes the adjustment of PLN 153 million, and that would mean that by quarter, we have comparable amounts. And that means that the increase -- that the growth of our business is compensating for dwindling interest rates. And that's the slide I've mentioned on net interest rate. So very high margin of Alior.

Last quarter, we communicated -- but from 5.19%, this figure has gone down to 4.5%. And if we exclude this effect, the result would be 5.11%. So that's in check with our aspirations and expectations for our margin and the growth of business. So, we will strive to keep NIM stable at approximately 5%. The cost of financing is going down slightly in line with market trends. Loan-to-deposit ratio remains stable above 70% for a longer period of time and cost-income ratio 37.7%.

Fees and commissions. Piotr has mentioned that this is the key pillar of our strategy, and we are happy that fees and commissions are going up by the quarter. So, you can see significant improvement of fees and commission. So, this is the result of higher brokerage commissions, growing volume of assets margin on current accounts.

And final part, operating costs. We have declared that we want to be transparent that we want to have a predictable cost trajectory. And this is an example from the perspective of 2025 and the first 6 months of '26, we can compare several quarters. And we can see that the amounts are predictable, comparable between different periods. We see growth by PLN 6 million, PLN 7 million, so 1% by every quarter. And something that we have declared early this year that we want to end this year with costs not higher than those triggered by inflation.

So, this is the end of financial part. Piotr, over to you.

[Interpreted] Thank you very much. So, we are keeping our promises. We will be growing. We will be more resilient. We'll be better. And our strategy is translated directly into our parameters.

So, in black front, these are results without the one-off event, PLN 1.5 billion worth of profit, PLN 367 million in profit, 11.5% in ROE, 40.3% costs and interest, 5.1% of NPL. So, we are on the right track to deliver the strategy.

So, thank you very much for your attention, and we can now answer your questions.

[Interpreted] Thank you very much, Piotr. It's now the beginning of our Q&A session. So, loans for SMEs, one of the most critical segments of the market seems to be stagnating. What are the outlooks for the segment?

[Interpreted] I wouldn't say it's stagnating. We have 2 different trends. We need to reduce double-digit NPL in this segment. Our strategic objective is to keep it below 5%. So we have huge room for improvement.

New business, we are reconstructing, we are introducing to our portfolio with other risk parameters. It's quite unlikely that it's going to grow so fast, especially that we are reducing NPLs. So in a while, we'll see this portfolio shrink. But I think more efficiency is on the horizon. We are not shifting our focus from this segment.

[Interpreted] And another question. What is the share of commercial profits subject to CJEU judgment? And how did you take it into consideration in Q2? So what mitigations do you expect also in relation to consumer credits, which have been paid for which this judgment may be relevant? When terms and conditions of such loans were amended?

[Interpreted] Quite a few questions. Start at the beginning as far as I remember everything, the CJEU ruling from April relates to a small part of the portfolio of the consumer loans, about 25%, about 1/4 of it.

We already dropped the sale of loans where we generated the noninterest costs. We are respecting the ruling, and we have set up a correction of the interest results on the value of PLN 130 million. And as for the net result, PLN 96 million.

We believe that the ruling should be implemented from April date the loans which had been paid off previously. We acted according to the law in Poland and the Polish regulatory authorities, which had not objectives to the practice that we applied. The loan offer rulings were changed 1.5 years ago. So within 75% of our portfolio is being paid off and therefore, the financing of the noninterest cost relates only to a small part of the portfolio, about 1/4.

[Interpreted] Thank you very much. Let's move on to the next question. What is the level of commission income can we expect after a good second quarter? In the results of the second quarter, did we have any seasonal issues?

[Interpreted] No. I think we are witnessing regular business activities. When we consider brokerage activities, it obviously fluctuates depending on the interest of the customers in the activity of the stock market, for instance. But in our assessment, we are witnessing a regular business development there. We expect in the subsequent quarters in the second half of the year, the commission values which will be not lower from what we reported in the first half.

[Interpreted] And the next question, what about the recent period and the mortgage and corporate loans?

[Interpreted] Well, let me say about the environment. It has certainly had an impact. We see a growth in the pressure. We've talked about the business customer. The segments were higher. We are not going to fight for certain contracts, which are not profitable. So, there is a lot of pressure.

We consider -- including some modification in installment loans, and we are quite conscious and withdrawing from certain types of contracts because of the lower margins. But we could catch up in other areas, for instance, in the volumes, our mortgage loans are growing well. The leasing activity is growing well. So, it's a trade-off.

[Interpreted] The next question, what are the prospects regarding the consumer loans in the future?

[Interpreted] We view this market positively. The low interest rate is conducive to providing more loans to customers. Consumer loans, as you will notice, were used by some specialized providers. And now the whole of the sector wants to get involved in that because it's such an attractive sector as far as the margins are concerned with the risk, which is well managed and which we can prove that you can manage it well. It's a very profitable sector in the business. So, the consumer loans are certainly on our radar as part of our strategy.

[Interpreted] Thank you. Can you present the current data regarding the financing ratio WFT?

[Interpreted] Well, at the end of the first half, we had 45.3 regarding that particular ratio. We keep observing what's happening in the market. We're observing the changes implemented by the KNF, the Polish regulatory authority with regard to that ratio. And we do not see a problem with meeting the requirements.

[Interpreted] Next question. Why did we have a lower level in the NPL level? Is it the new level of profits with regard to this segment?

[Interpreted] Well, there are some issues relating to the size of the portfolio. And the other issue is the structure of the portfolio. And also, we need to take into account the market situation and the prices which are offered by businesses which purchase these liabilities.

[Interpreted] And the next question. Dynamic of the operating costs, the dynamics of operating costs. OpEx has been good because of the reduction in employment. Can you see other possibilities of savings there? And do you believe that thanks to stringent cost control, you will be able to catch up with the tempo of growth in the market?

[Interpreted] Well, we did not say that this is our aim to cut cost in this field. We focus on the kind of development of the business where some parts of it are more attractive. For instance, they provide higher margins, what mentioned. We're not fighting for the kind of products. We don't want to hold contracts. We can be more selective in our investments and therefore, to the costs which these investments generate.

Also, could you repeat the second part of the question?

[Interpreted] Yes. OpEx and the reduction in employment, can we see further possibilities of savings there? Or do you believe that due to more stringent cost controls, you could catch up the level of growth?

[Interpreted] Well, what we assume is that the automation will have an impact. If we invest a lot in the AI development field in robotics and high-tech solutions, we believe that these developments in terms of servicing our customers and the provision of products will give us more possibility to limit the cost and give us an opportunity to develop our product.

[Interpreted] Can you comment on the high level of cost in the business sector?

[Interpreted] As I mentioned in my presentation, this regards one particular customer and one particular default, which we identified in the second quarter of this year.

[Interpreted] Thank you. What is the NIM outlook for subsequent quarters?

[Interpreted] We mentioned a few times already. This is our sort of forte, the high level of margin. We will keep maintaining that using the selection of the products, we will hope to maintain above 5%.

[Interpreted] Will we be reviewing the goals as far as the income in 2027 is concerned?

[Interpreted] Well, let me answer that. Income in 2027 will be under pressure from a number of factors. And so therefore, we have to look at them carefully in our strategy. First of all, the sick CIT tax will impact also the growth, the volume growth. Zdzislaw mentioned about the margins. We want to maintain a high level of be.

What is, however, noticeable are some factors which differ from what we envisaged or assumed previously. The market is growing inward. There's a lot of inward consumption, which will certainly impact. But we're not giving up. We are growing in sales. We are growing in the segments which are attractive in terms of margin.

If they are not attractive in terms of the margin, we try to be more distant to these products. We're not spending any communication in this area. We are simply keeping our finger on the pulse of the situation, and we will react.

[Interpreted] Do you see any modifications in the situation, the competition in the credit market?

[Interpreted] Well, I mentioned the competition is tight. It's much more vigorous in consumer loans than it used to be a year or 2 years ago. All the universal banks started to play very aggressively in this sector, especially in cash loans. And it is noticeable also in mortgage loans.

As far as the installment loans are concerned, the activity of the main players is also very high. As far as margins are concerned in the business sector, some segments grow quite well, but they grow because the margins are low. So the competition is high.

BIK company also mentioned a lot of consolidation in mortgages and cash loans as well. So the market is getting mixed and there's a lot of inward trend, a lot of dynamics in the market, and this will certainly impact the competitiveness and the offer presented to the customer.

[Interpreted] What about the CJEU ruling in terms of the SKD loans, the sanctions of free bank loan?

[Interpreted] CJEU has nothing to do with the sanctions of free bank the SKD loans. The ruling simply means that from the moment of the ruling, the bank should not collect interest on commission and additional costs. But there is no ruling regarding SKD. So you should not mix those 2.

[Interpreted] There's a lot of question today. So the next question, what will the impact on the sale of NPL for the cost of risk? And what is the value of the NPL loans sold?

[Interpreted] Starting at the end, as for the value of the portfolio, we do not provide the data of the impact on core is about 20 bps.

[Interpreted] And that is all the questions that we've had. Thank you very much. I want to thank everyone for their attention.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning, ladies and gentlemen. My name is Piotr Zabski. I am the CEO of Alior Bank S.A. I would like to welcome you at this General Meeting of Shareholders of Alior Bank and we open today's meeting. I would like to inform you that this meeting is recorded by the appropriate devices and also it is transmitted online in Internet. The vote will be conducted with the means of the specialized equipment.

And now I would like to ask the representative of Unicomp-WZA company to explain how you can exercise your voting rights.

Good morning. Each of you received a tablet. And in the tab your data, you can know who you represent and how many votes. The voting is simple. When the vote is ordered, you will see the title on the tablet and 3 decision keys. Then you will be transferred to the next screen and then you will see the decision that you have taken in the first step. And then on the second screen, you confirm it.

If it happens that you've chosen the wrong decision in the first step, so then you have to use the tab return and then you are transferred back to the first screen and then you choose the right decision and then you are transferred to the next screen and you confirm. Of course, we are at your service. If there are any questions, so please ask them.

I can't see any questions. Thank you very much. Now we move to point number two, Election of the Chairperson of the Annual General Meeting. And please put forward your candidate on the Chairperson of this Annual General Meeting.

[ Monica ], the representative of PZU. So I would like to propose Mr. Sebastian Rudnicki to be the Chairperson for the meeting.

Are there any other candidates? So Mr. Counsel, I am addressing you. Do you agree to chair today's meeting?

Yes, I do. I do agree.

Ladies and gentlemen, I order the secret vote on the resolution regarding the appointment of Mr. Sebastian Rudnicki to be the Chairperson of this Annual General Meeting. This is resolution #2/2026 of the Annual General Meeting of Alior Bank Spółka Akcyjna dated 29 April 2026 on the appointment of the Chairperson of the Annual General Meeting of the Bank. Pursuant to Article 409 Paragraph 1 of the Code of Commercial Partnerships and Companies and Paragraph 16(1) of the Articles of Association of Alior Bank S.A., the Annual General Meeting of the Bank elects Sebastian Rudnicki to act as the Chairperson of the Annual General Meeting. The resolution shall enter into effect upon its adoption. I open the secret vote on this resolution.

So I can see the result, but I would like to ask you whether everyone voted. And I can see that everyone voted. And so under the secret vote, there were the following votes cast and the total number of valid votes, 96,530,336 from 96,530,336 shares, representing 73.93% of the share capital. For yes, the number of votes is 96,530,336. There were no votes against and there were no abstentions. Ladies and gentlemen, I would like to confirm that this resolution has been adopted under the secret vote. Mr. Counsel to accept the nomination.

Thank you very much for giving me the floor. And now I will give the floor to Mr. Chairman to continue the conduct of today's meeting.

Ladies and gentlemen, I would like to welcome you cordially at this Annual General Meeting. I would like to welcome the shareholders and their proxies and also the members of the Supervisory Board and the Management Board. Also, I welcome the technical crew and also Madam Notary, who is with us and is taking the minutes of the meeting. And I would like to welcome also the representatives of the media. Thank you very much for my nomination and it is an honor for me to be -- to chair today's meeting.

First of all, I order the drafting of the attendance list, which has already been drafted. So for me, it is just to sign it. This attendance list is on my desk for you to check it or to see it. And I would like to confirm that at today's General Meeting of Shareholders, there are 96,533,336 votes from the same number of shares, which represents 73.4% of the share capital of the company. On the 24th of March 2026, the announcement was placed on the company's website and also in the form of the current report 6/2026. This announcement regarding the calling of the meeting with the following agenda.

Point number one, Opening of the Annual General Meeting. Point number two, Election of the Chairperson of the Annual General Meeting. Three, Verification whether the Annual General Meeting has been convened correctly and is capable of adopting binding resolutions. Four, Adoption of the agenda of the Annual General Meeting. Five, presentation and review of the following.

The separate financial statements of Alior Bank Spółka Akcyjna for the year ended 31st of December 2025, the consolidated financial statements of the Alior Bank Spółka Akcyjna Group for the year ended 31st of December 2025, the report of the Management Board on the activities of the Capital Group of Alior Bank S.A. in 2025, including the report of the Management Board on the activities of Alior Bank S.A., as well as the sustainability statement.

Six, presentation and review of the Report on the activities of the Supervisory Board of Alior Bank S.A. in 2025. Seven, presentation to the Annual General Meeting of the Report on the assessment of the application by Alior Bank Spółka Akcyjna of the Corporate Governance Principles for Supervised Institutions in the year 2025. Eight, adoption of resolutions on: review and approval of the report on the activities of the Supervisory Board of Alior Bank S.A. in 2025, review and approval of the separate financial statements of Alior Bank Spółka Akcyjna for the year ended 31st of December 2025, review and approval of the consolidated financial statements of the Alior Bank Spółka Akcyjna Group for the year ended 31st of December 2025, review and approval of the report of the Management Board on the activities of the Capital Group of Alior Bank S.A. in 2025, including the report of the Management Board on the activities of Alior Bank S.A. as well as the sustainability statement.

Point number nine, adoption of a resolution on the distribution of the profits of the Bank for the financial year 2025. Point number 10, adoption of resolutions on granting discharge to members of the Management Board of the bank for the performance of their duties in the financial year 2025. Point 11, adoption of resolutions on granting discharge to members of the Supervisory Board of the bank for the performance of their duties in the financial year 2025.

Point number 12, adoption of a resolution on the assessment of the remuneration policy applicable at the bank. Point number 13, adoption of a resolution on the assessment of the collective suitability of the Supervisory Board of Alior Bank S.A. Point number 14, adoption of resolution on expressing an opinion on the report on the remuneration of members of the Management Board and the Supervisory Board of Alior Bank S.A. for the year 2025 submitted by the Supervisory Board of the bank adoption.

Point number 15, adoption of resolution on the adoption of the updated Remuneration Policy for Members of the Management Board and the Supervisory Board of Alior Bank S.A. Point number 16, adoption of a resolution on the assessment of the adequacy of internal regulations concerning the functioning of the Supervisory Board of Alior Bank S.A. and its effectiveness. 17, adoption of a resolution amending the Articles of Association of Alior Bank S.A. Point 18, Closure of the Annual General Meeting.

And on the 1st of April 2026, the Management Board of Alior Bank in connection with receiving the motion from the shareholder of Alior Bank, it means from PZU dated the 1st of April 2026 on the basis of Article 401 Paragraph 1 of the Commercial Companies Code extended the agenda for the General Meeting of Shareholders convened for the 29th of April 2026 by adding point 18, adoption of resolutions on changes in the composition of Supervisory Board of Alior Bank Spółka Akcyjna.

So then the numbering has changed. So now the Closure of the Annual General Meeting is now point number 19. And the amended agenda was also published on the company's website and also as an attachment to the current report #9/2026 submitted for public opinion.

And in line with Article 108 of the Commercial Companies Code, this General Meeting of Shareholders is valid no matter how many votes are represented and the statute of the bank does not stipulate any other regulations. And therefore, today's General Meeting of Shareholders convened properly and formally in line of Article 403, Paragraph 1 and 396 of Paragraph 101 and Paragraph 402(1) of the Commercial Companies Code, this meeting is properly convened and capable of adopting binding resolutions.

And also I would like to inform you that the draft resolutions that are on the agenda were published on the company's website at www.aliorbank.pl and also as an attachment to the current report #6/2026 as submitted for the public opinion on 24th of March 2026. The draft resolutions which will be voted on, including also the draft resolutions resulting from the extension of the agenda by the Management Board of the Alior Bank are also available on the tablets, which are used for exercising the votes. And these tablets were given to the shareholders and the proxies at the moment of registering for the meeting.

And since all the draft resolutions were made available to the shareholders, so I would propose not to read the resolutions -- the content of the resolutions only to refer to the number and also the title of the resolution. If there are any objections, of course, I would change this, but I can't see any objections. So I will not read the content of the resolution, I will refer to the number and also to the title of this resolution. I would like to inform you that in line with Article 111(3) of the Commercial Companies Code, the shareholder may vote differently from each share held. So it is possible to do the split voting. For example, with part of the votes for yes and with the other part of the votes against.

Now we move to point number four on the agenda, namely the adoption of the agenda of the Annual General Meeting. And this agenda was published and made available on tablets and also includes the extension proposed by PZU company. Are there any motions regarding this point? If not, I would like to order the vote on the resolution regarding the adoption of the agenda of the Annual General Meeting of the bank. I open the vote. Has everyone voted? I can see that yes, and I close the vote and I read the results. So there were 96,530,336 valid votes on the same number of shares. For yes, 96,530,336 votes, against 0, abstentions, 0. Therefore, I would like to confirm that this resolution has been adopted unanimously under open vote.

Now we move to point number five on the agenda. And point number five, this is the presentation review of the following: the separate financial statements of Alior Bank Spółka Akcyjna for the year ended 31st of December 2025, the consolidated financial statements of Alior Bank Spółka Akcyjna Group for the year ended 31st of December 2025, and the report of the Management Board on the activities of the Capital Group of Alior Bank S.A. in 2025, including the report of the Management Board on the activities of Alior Bank S.A., as well as the sustainability statement. Are there any comments regarding this point? If not, so I close the discussion on this point.

Point number six, presentation and review the report on the activities of the Supervisory Board of Alior Bank S.A. in 2025. Are there any other comments? I close the discussion on point number six. Point number seven, presentation of the Annual General Meeting -- to the Annual General Meeting on the report on the assessment of the application by Alior Bank Spółka Akcyjna of the corporate governance principles of supervisory institutions in the year 2025. Are there any comments? If not, I close the discussion on this point number seven, and we move to point number 8.

This is adoption on resolutions on review and approval of the report on the activities of the Supervisory Board of Alior Bank S.A. in 2025 and also of the separate financial statements and consolidated financial statements as well as the report of the Management Board. Now we have point 8a, so we move to the adoption of the resolution on review and approval of the report on the activities of the Supervisory Board of Alior Bank S.A. in 2025. Are there any motions to this point?

So now I order the vote on resolution #3 regarding the review and approval of the report on the activities of the Supervisory Board of Alior Bank S.A. in 2025. I can see that everyone has voted and I will read the result of the vote. So the total number of votes cast 96,530,336 valid votes from the same number of shares. For yes, 96,251,243, objections against 0; abstentions, 279,093 votes. Therefore, I would like to confirm that the resolution under the open vote has been adopted.

We move to point 8b, review and approval of the separate financial statements of Alior Bank Spółka Akcyjna for the year ended 31st December 2025. Are there any motions regarding this point? If not, now I order the vote on this point. Resolution #4 regarding the review and approval of the separate financial statements of Alior Bank Spółka Akcyjna for the year ended 31st of December 2025. Is there anyone who still is voting? I can't see. I close the vote and the total number of votes cast 96,530,336 from the same number of shares. For yes, 95,538,962, against, 712,281 and abstentions 279,093. I would like to confirm that this resolution has been adopted under the open vote.

Then we have point 8c, review and approval of the consolidated financial statements of the Alior Bank Spółka Akcyjna Group for the year ended 31st of December 2025. Are there any motions regarding this point? If not, I order the vote on the resolution #5 regarding the review and approval of the consolidated financial statements of the Alior Bank Spółka Akcyjna Group for the year ended 31st of December 2025. Has everyone voted? So I close the vote, and please I will read now the results. So the total number of votes cast 96,530,336 from the same number of shares. For yes, 95,538,962, against, 712,281, and abstentions, 279,093. I would like to confirm that this resolution has been adopted under the open vote.

Now we have point 8d, adoption of resolution regarding the review and approval of the report of the Management Board on the activities of the Capital Group of Alior Bank S.A. in 2025, including the report of the Management Board on the activities of Alior Bank S.A., as well as the sustainability statement. Are there any motions under this point? If not, I order the vote on this resolution #6 regarding this review and approval of the report of the Management Board on the activities of the Capital Group of Alior Bank S.A. Has everyone voted? I can't see. Any person still voting -- the voting is in progress. So the total number of votes cast 96,530,336 valid votes from the same number of shares. For yes, 96,251,243, 0 against and abstentions, 279,093. I would like to confirm that this resolution has been adopted under the open vote.

We move to Item 9 on the agenda, that is to adopt the resolution on the allocation of profit of the financial year 2025. And the content of the resolution was published by the Management Board, it is also on your tablets. Are there any motions concerning this point? If not, I order a vote on resolution #7 on the allocation of the profit for the financial year 2026. It's an open ballot. Is there anyone that would like to vote? No. So I close the vote. 96,530,336 valid votes representing the same number of shares. 96,530,336 for, none against and no abstentions. So in light of this, the resolution has been adopted unanimously in an open vote.

Now we move to Item 10 to adopt resolution on granting discharge to the members of the Management Board of the bank for the performance of their duties in the financial year 2025. And at this point, this will be an open -- sorry, a secret ballot. Any motions concerning this item? If not, I order a vote on resolution #8 on granting discharge to a member of the Management Board of the bank for the performance of duties in the financial year 2025 to Mr. Piotr Zabski. Has everyone voted? So I close the vote. Please give me the results. So 96,530,336 votes were cast, representing the same number of shares and for 96,189,561, against, 15,721 votes and abstentions, 325,054 abstentions. So in light of this, I declare that the resolution has been adopted.

So I order a vote on resolution #9 to grant discharge for the performance of duties in the financial year 2025 to Mr. Marcin Ciszewski. So I order a vote, a secret ballot. Has everyone voted? Yes. So I close the vote and please give me the results. 96,530,336 valid votes were cast, representing the same number of shares. For, 96,189,561, against, 15,721 votes and abstentions, 325,054 votes. So in light of this, the resolution has been adopted.

I order a vote on resolution #10 to discharge for the performance of duties in a financial year 2025 to Mr. Jacek Michal Iljin. Has everyone voted? Yes, so I close the vote and 96,530,336 valid votes were cast, representing the same number of shares. For, 96,189,561 votes, against, 15,721 votes and there were 325,054 abstentions. In light of this, the resolution has been adopted.

So I order a vote on resolution #11, to grant discharge for the performance of duties in the financial year 2025 to Mr. Wojciech Przybyl. Has everyone voted? Yes. So I close the vote. So 96,530,336 valid votes were cast, representing the same number of shares. Out of this 96,189,561 for, against, 15,721 and abstentions, 325,054. In light of this the resolution has been adopted.

So I now order vote on resolution #12, to grant discharge for the performance of duties in financial year 2025 to Ms. Beata Stawiarska. Has everyone voted? So I close the vote. 96,530,336 valid votes were cast, representing the same number of shares. For, 96,189,561, against, 15,721 and abstentions, 325,054. In light of this, I state that the resolution has been adopted.

So now I order vote on resolution #14, to grant discharge to performance of duties in the financial year 2025 to Mr. Zdzisław Wojtera. Has everyone voted? Yes. So I close the vote. 96,530,336 valid votes were cast, representing the same number of shares. For, 96,189,561 votes, against, 15,721 votes and there were 325,054 abstentions. In light of this, I state that the resolution been adopted.

Now I order a vote on resolution #14 to grant discharge to a member of Supervisory Board to temporarily perform the duties of Vice President of Management Board for the performance of duties in the financial year 2026 and it concerns Mr. Artur Cholody. So I order a vote. Has everyone voted? Yes. So please give me the results. 96,530,336 valid votes cast, representing the same number of shares. For, 96,514,020 votes, against, none and abstentions 16,316. So in light of this, I state that the resolution has been adopted.

Now we move to resolution #11 to adopt resolution to grant discharge to members of the Supervisory Board for the financial year 2025. Here also, we have secret ballot. Any motions or comments on this item? If not, I order a vote on resolution #15 to grant discharge to the performance of duties in the financial year 2025 to Mr. Wojciech Julian Kostrzewa. Has everyone voted? Yes. So I close the vote. 96,530,336 valid votes were cast and 95,632,125 for, against, 523,157 votes and there re were 325,054 abstentions. In light of this I state that the resolution has been adopted.

So I order vote on resolution #16 to grant discharge for the performance of duties in the financial year 2026 to Mr. Jan Paweł Zimowicz. Has everyone voted? Yes. I close the vote. 96,530,336 valid votes were cast, representing the same number of shares. For, 92,113,303 votes, against, 4,091,979 votes and there were 325,054 abstentions. In light of this, I state that the resolution has been adopted.

So I order a vote on resolution #17 to grant discharge for the performance of duties in the financial year 2025 to Mr. Artur Kucharski. Has everyone voted? Yes. So I close the vote. 96,530,336 valid votes were cast, representing the same number of shares. For, 92,531,167, against, 3,674,115 and there were 325,054 abstentions. In light of this, I state that the resolution has been adopted.

So I order a vote on resolution #18 to grant discharge for the performance of duties in the financial year 2025 to Mr. Maciej Gutowski. Has everyone voted? Yes. So I close the vote. 96,530,336 valid votes were cast, representing the same number of shares. For, 95,682,125 votes, against, 523,157 votes and there were 325,054 abstentions. In light of this, the resolution has been adopted.

I order a vote on resolution #19 to grant discharge for the performance of duties in the financial year 2025 to Mr. Radosław Grabowski. Has everyone voted? Yes. So I close the vote. And 96,530,336 valid votes were cast, representing the same number of shares. 92,620,039 votes for, against, 3,584,533 votes and there were 325,054 abstentions. In light of this, I state the resolution has been adopted.

And I order a vote on resolution #20 to grant discharge for the performance of duties in the financial year to Mr. Robert Pusz. Has everyone voted? Yes. So I close the vote. 96,530,336 valid votes were cast, representing the same number of shares. For, 96,183,519 and against, 21,763 votes and there were 325,054 abstentions. So the resolution has been adopted.

Now I order the vote on resolution #21 on granting discharge member of Supervisory Board of the bank, Mr. Waldemar Maj. Has everyone voted? I can see that, yes, the total number of votes cast, 96,530,336 valid votes on the same number of shares. For yes, 96,015,305, against 189,977, abstentions, 325,054. I would like to confirm that this resolution has been adopted.

I order the vote on resolution #22 on granting discharge to the member of Supervisory Board of the bank in the financial year 2025 to Madam Agata Paulina Mazurowska-Rozdeiczer. Has everyone voted? I close the vote. So the total number of votes cast, 96,530,336 valid votes from the same number of shares. For yes, 96,030,853, against 174,529 and abstentions, 32,054. I would like to confirm that this resolution has been adopted.

Now I order the vote on resolution #23 regarding the granting of discharge to member of the Supervisory Board of the bank for the performance of duties in financial year 2025 to Mr. [indiscernible]. Has everyone voted? I close the vote. So the total number of votes cast is 96,530,336 valid votes on the same number of shares. For yes, 95,105,663, against, [ 1,099,619 ], abstentions, 335,054. I would like to confirm that this resolution has been adopted.

I order vote on resolution #24 on granting discharge the member of the Supervisory Board of the bank for the performance of duties in the financial year 2025 to Mr. [indiscernible]. Has everyone voted? I can see that yes. I close the vote and I will read the results. So the total number of votes, 96,530,336 on the same number of shares. For yes, 96,189,561, against, 15,721, abstentions, 325,054. I would like to confirm that this resolution has been adopted.

I order the vote on resolution #25 regarding the granting of discharge to member of the Supervisory Board of the bank for the performance of duties in the financial year 2025 to Mr. Tomasz Kulik. Has everyone voted? I can't see that anyone is still in progress with his or her vote. So I close the vote. And I would like to say that the total number of votes cast is 96,530,336 valid votes on the same number of shares. For yes, 96,189,561, against 15,721, abstentions, 325,054. Therefore, I would like to confirm that this resolution has been adopted.

Now we move to point number 12, adoption of resolution on the assessment of the remuneration policy applicable at the bank. Are there any motions regarding this point? If not, I order the vote on resolution #26 regarding the assessment of the remuneration policy applicable at the bank. The vote is in progress. So has everyone voted? I can see that yes and the total number of votes cast, 96,530,336 valid votes from the same number of shares, 96,251,243, against, 0, abstentions, 279,093. Therefore, I would like to confirm that this resolution has been adopted.

Now we move to point number 13, adoption of a resolution on the assessment of the collective suitability of the Supervisory Board of Alior Bank S.A. Are there any motions regarding this point? Now I order the vote on resolution #27 on the assessment of the collective suitability of the Supervisory Board of Alior Bank S.A. The vote is in progress. Has everyone voted? I can see that, yes, I close the vote. The total number of votes cast, 96,530,336 valid votes from the same number of shares. For yes, 96,530,336 votes for yes, against 0, abstentions, 0. I would like to confirm that this resolution has been adopted.

Now we move to point number 14, adoption of a resolution on expressing an opinion on the report of the remuneration of members of the Management Board and Supervisory Board of Alior Bank S.A. for the year 2025 as submitted by the Supervisory Board of the bank. Are there any motions regarding this point? If not, I order the vote on resolution #28 on expressing the opinion on the report on the remuneration of members of the Management Board and the Supervisory Board of Bank S.A. for the year 2025. The vote is in progress. Has everyone voted? I can see that yes, I close the vote. The total number of votes cast, 96,530,336 valid votes from the same number of shares. For yes, 81,092,253, against, 15,438,083 and 0 abstentions. I would like to confirm that this resolution has been adopted.

Now we move to point number 15 of the agenda, adoption of a resolution on the adoption of the updated remuneration policy for members of the Management Board and the Supervisory Board of Alior Bank S.A. Are there any motions regarding this point? I can't see any. So I order the vote on resolution #29 on adoption of the updated remuneration policy for members of the Management Board and the Supervisory Board of Alior Bank S.A. The vote is in progress. Has everyone voted? I can see that. Yes, I close the vote. The total number of votes cast, 96,530,336 valid votes from the same number of shares. For yes, 81,963,598, against, 14,566,738 and abstentions, 0. So I would like to confirm that this resolution has been adopted.

Now we move to point number 16 on the agenda, adoption of the resolution on the assessment of the adequacy of internal regulations concerning the functioning of the Supervisory Board of Alior Bank S.A. and its effectiveness. Are there any motions to this point? I can't see any. So I order the vote on resolution #30 on the assessment of the adequacy and internal regulations concerning the functioning of the Supervisory Board of Alior Bank S.A. and its effectiveness. Has everyone voted? I can see that yes. And now I will read the results. So the total number of votes cast, 96,530,336 valid votes. For yes, 96,530,336, against 0, abstentions, 0. So the resolution has been adopted.

Now we move to point number 17, adoption of a resolution amending the Articles of Association of Alior Bank S.A. So the changes were proposed by the Management Board and published and also are available on your tablets. Are there any comments on this point number 17. If not, I order the open vote on resolution #31 regarding the amendments to the Articles of Association of Alior Bank S.A. Has everyone voted? I can see that yes, and now I will read the result of the vote. The total number of votes cast, 96,530,336 valid votes from the same number of shares. For yes, 82,299,812, against, 14,230,524, 0 abstentions. I would like to confirm that this resolution has been adopted.

Now we move to point number 18 on the agenda, adoption of resolutions on changes in the compensation of the Supervisory Board of Alior Bank. Are there any motions to this point? I can't see any. We move to point number 19, closure of the Annual General Meeting. And therefore, thank you very much for your participation and I declare this meeting closed. Thank you.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning. This is Dominik Prokop, on behalf of Alior Bank. May I welcome everyone to the results conference. We will talk about the first quarter 2026. And the first part, the bank's results as well as the trends, they will be discussed by members of the Board, President, Piotr Zabski, who will sum up the most important trends and will tell us about business results, Deputy President, Marcin Ciszewski, who will tell us about Risk; and Deputy President, Zdzislaw Wojtera, who will tell us about finance.

After the end of the presentation, we will have a Q&A session. Before I hand over to Piotr, may I encourage everyone to ask questions already during the first part of the conference, which will help us smoothly move into the Q&A session.

Piotr, you have the floor.

Good morning, everyone. The presentation will be composed of 4 parts. Firstly, operational activities with 2 business lines, the corporate and the individual customers, then the risk result and then financial results and other issues. So let me move on to the operational activities and about the first quarter. What you can see here is a slightly changed makeup of the presentation. We wanted to refer to our strategies. There are 3 pillars on the left, scaling up, high resilience, operational excellence. And it's within these categories that I'd like to tell you about what went on in the first quarter.

But before moving on, let me just sum up. This was a good quarter for Alior Bank. Our results were PLN 1.5 billion with a 2% growth year-on-year. And taking into account that we have lower interest rates in the country, this kind of growth is really -- in revenue is really making us very happy. This is a real scaling up results.

As far as net profit is concerned, we have PLN 403 million. This is a drop of 15%. The corporate income tax is the main result -- the main cause of this result. We will hear from our colleague later about more details. As far as the gross profit are concerned, we are on more or less the same level. As far as other parameters are concerned, very good return on equity, 13.8% increase, the corporate income tax is important in this regard. Very well-managed costs, 37.8% cost-to-income ratio, and we believe that this good level will be maintained. NPLs at a low level, even lower than last year. So this downward direction in the NPLs is maintained.

What is crucial is, what you can see on the left-hand side and the first pillar, the scaling up. We grew in the deposit portfolio by 9% year-on-year, which is making us very happy. We want to grow in this particular area. As far as loan sales are concerned, there are 2 elements. But I want to mention mortgage loans in the first quarter 2026 in relation to the previous year, namely the first quarter 2025. It's an increase of 84%, PLN 1.8 billion was the value of the loan sales.

There's been a very good quarter as far as the development of relational customers is concerned. We grew by over 100,000 in the number of relational customers. They have to meet a certain level of requirements. It is not obvious that you already become a relational customer while being a bank customer. It's been a very good quarter for Alior Leasing, which is our sister company. And that's part of our scaling up process.

As far as high resilience is concerned, I want to draw your attention to our rating. We received an investment rating from S&P, which is important for us because we will be issuing bonds in the euro market, so we hope to receive a good rating level there. Our costs are stable. The credit risk is going down. And we are recommending for the third year running, the payment of dividend to the tune of 50%, PLN 8.93 per share.

In the third pillar, the operational excellence, I want to draw your attention to our mobile app development. There's been a new launch of it in the current year. And compared to the previous version, it's on a much higher level. And so we are growing in terms of the users' numbers. It's the highest dynamic in the market, 90% growth at the end of March 2025 (sic) [ 2026 ]. Very good capital position, which gives us the opportunity for further growth. Liquidity is on a good level. New elements in the area of technologies, we have adopted an ambitious AI strategy.

We want to be even more dedicated to this high-end use of AI in the bank, and we have very ambitious plans for the next years. That is all as far as the general summary is concerned. Now a bit more about the numbers. If you look at our balance sheet, the assets is almost PLN 105 billion, PLN 85 billion of that is deposits, which is a 9% growth. Assets grew by 8% and the gross performing loans grew by 7%. That's the performing loans, Batik 1 and 2. So these increments, which we announced in the strategy are taking place and allow us to realize higher levels of growth in spite of the drop in interest rates.

In this particular slide, some more information about our customers. The relation customers grew by 6% over the year, and there's a 19% growth in mobile app users. What you can see on the right-hand side among the relational customers, which is 50% of the users of our application. And the customers are banking with us quite efficiently. In the mobile app, we have 44% sales in the general framework of our sales channels.

As for the balance sheet on the left-hand side, we have the loan portfolio and the deposits on the right-hand side. Let me say a few words about the loans. The customer loans are stable in the growth. The general effort goes to maintain the portfolio and recreate the sales levels. There's a considerable growth in the Burgund Depart, namely the real estate loans. These are important. And the whole portfolio has grown by 8% over the 12 months.

As far as the deposits are concerned, all the constituent parts in these bars are growing. That's a good result. The whole of the growth is 12% year-on-year, and we are very happy to see the growth in each of these constituent parts we are improving the results and that coincides with our strategic plan. As far as retail customers are concerned and the mortgage loans, there's been an 80% growth there, there's a lot of activity in the market as a whole. But on our side, the market shares in mortgages, for instance, is definitely higher than the Alior Bank share in the banking sector. So this is something that makes us very happy, and we are catching up there.

As for the other loans, non-mortgage loans in the Burgund Depart, you have the installment loans. They have performed slightly worse in the first quarter, but the result was the fact that there's been some carryover of the business partner negotiations, and we haven't managed to do something in the first quarter, but I can be confident that it will be made up in the subsequent quarters.

As for the cash loans quarter-on-quarter, there has been growth in spite of prepayments, in spite of the churn and short tenures. The effort that we put into the recreation of the balance is quite efficient and the balance will grow in the subsequent months.

As far as the retail customers are concerned, I want to draw your attention to 2 types of activities. Our brokerage house on the left and our TFI sector on the right. What we announced in the strategy was for the second pillar of our strategy to make our results stable by use of the commission. One of the strong players in that department is the activity of our brokerage house. As you can see, there's been a 52% rise in the commission year-on-year, which is considerable with 38% growth of assets and FIO and the considerable rise in the structured product sales.

On the side of Alior TFI, we are approaching the PLN 5 billion level of assets. We've even crossed over it, but March has not been a good result for that type of activity as there's been a lot of redemptions. So we hope to come back to the level of PLN 5 billion, but the 34% year-on-year rise is notwithstanding that, and we are definitely on the right track. And it is with these activities that we will be helping to stabilize the commission result.

Now the business customer, the left-hand side is the business loan portfolio, which is quite stable if you compare year-on-year results. But within the portfolio, there's been some changes. The first one that means [ commenting ] is that the nonperforming loans dropped down from PLN 2.4 billion year-on-year. And this drop is mainly in the micro businesses sector.

We had quite a big historical baggage of nonperforming loans in the micro companies sector. And this part is diminishing. What is important is the growing part in the middle are the segments that we want to develop, namely the small- and medium-sized companies. And here, we've seen an 11% growth. However, in the portfolio, we also have big consortium, the biggest players in the market where you can have slight movement. So the mix of the portfolio in the middle is changing. But in the general terms of its value, we have stability.

And I can safely say that the mix of the portfolio is changing for the better. There is more of the healthy parts of the portfolio, which makes our business aims more viable. As far as business customers are concerned, there's been a 5% growth year-on-year in the deposit volume. The last quarter has been very important. We've had a 22% growth in the current account sales. So this is a good offer. It's been readily picked up by the customer and over 70% of the sales is online sales, the new type of banking that we have launched for business customers. And this is bringing profits in terms of current accounts sold.

One more slide devoted to the corporate sector, let me draw your attention to our leasing company activity. Alior Leasing has seen record growth in sales, both in terms of leasing and loan sales, 27% is the rise year-on-year and the whole portfolio grew by 12%. So this is the kind of growth which is considerably above the level of the whole of the market. Our activity focuses on financing cars up to 3 tons. We are very strong in that particular area and the share of the market has grown by 6% from 2.9%. So you can see that the leasing is an alternative form for small and medium-sized companies, and these can readily obtain financing from our bank when they've been at least 2 years in operation and so we catch up the gap, we can sell it in the banking channels, and we are very happy with the growth that has been observed there.

Some other type of information we are being appreciated in the market. We've been on the podium in the Golden Banker services. And in the Mobile Banking, our application reached the first prize. We have been a leader in the Institution of the Year ranking, so we've been appreciated there. And also, we've received 6 statuettes. Also, we've been appreciated in the top employer title. We've received the certificate for 2026. And what is crucial, but let me stress that again, the investment rating of the bank represents the appreciation of our efforts, which we put into building a quality portfolio, and this translates into the payment of the dividends, generating new sales. And this all creates a situation where Alior Bank is a bank with an investment rating, which makes us very happy.

That is all from me about the first quarter, and I will hand over to Marcin for his comments about the risk management.

Thank you, Piotr. Good morning to all of you. The first quarter of 2026 ended with a very safe capital position. Tier 1 and TCR ratios are at the level of 17.85% with a huge excellent PLN 3.9 billion, which makes it possible to implement all the strategic endeavors. Concerning the TREA ratio, it's been at 21.60%, which is also a very safe position as far as liquidity is concerned. LCR is also at a very high level as well as NSFR, which is definitely higher than required by regulations, 236% and 152%, respectively.

We are working on the transformation of our loan portfolio, and we are successively reducing the nonworking portfolio. NPL is at 5.39% at the end of the first quarter. We are maintaining our strategic goal, which is to get below 5% with this ratio at the end of this year. The cost of risk measured with the CoR 0.67%, slightly higher than during the previous period. But here, we can see the impact of our approach towards the sales of nonworking portfolios, which can be seen in the upper right graph, where we can see that at the end of the second and fourth quarters of the year, we are checking the level of the nonworking portfolio, and we are getting additional revenues, improving our CoR ratio.

The nonworking portfolio went down from PLN 429 million to PLN 364 million. As far as the NPL indicator is concerned in segments for the retail customers, it's at 2.41% at the end of the first quarter market level. Concerning the business sector, we are reducing it consistently, but it's still higher than expected. At the end of the quarter, we are at the level of 11.35%. We confirm that as far as the cost of risk of our bank, it should not exceed 0.8%, which is also reflected by our strategy, which is implemented consistently. Thank you very much. And now Zdzislaw, has the floor.

Thank you, Marcin. Good morning. I'm going to discuss about the financial results right now. If we look at our income base, as Piotr has mentioned, in the business part, we are glad to see that the number of the clients and the level of loans and deposits are all increasing.

With the interest rates getting down, this makes it possible for our income to grow by 2% year-to-year. Of course, the division of the results differs because on the interest rates, we are 0.3 points down. But on the commissions, we are 6% up. If we look at the net result, we can see that it's definitely lower. But as all the banking sector did, we applied a new approach for banking. But what is important is that the gross result is almost the same as the one we have obtained last year in the first quarter of '25.

When we look now at the income statement, the P&L, so we can see the total income, net interest income and also the commissions. We have got dedicated slides I'm going to discuss in a moment. And we've got also results on other activities. Let me mention that we have got also the hedging transactions, plus PLN 18 million and also on the transactions with financial instruments, PLN 6 million. And in particular, the hedging transactions assessment is positive in this quarter, and it contributed in a good way to the result. It can change in the future, as you know very well. That's a positive one-off.

If we look now at the total costs, they are also under good control. The costs of our activities increased by 2% only, and I'm going to discuss it more precisely on the dedicated slide. What is also important is that the legal risks costs, well, we have identified PLN 37 million as loss of risks due to foreign currency loans. And this is mainly due to the model modification. So when we extended the horizon from 2 to 5 years, the provision for that topic has increased.

We do not see a major influx of mortgage in foreign currencies, claims, so this is a trend that is not deteriorating. As far as the gross result, the gross profit is almost at the same level as last year, which with lower interest rates and higher cost is quite a good result for this quarter. Concerning the net profit, we've got the impact of the corporate income tax. We have 37% of rate that has been applied to the whole year here.

So getting down to more specific elements of the interest rate results, we can see a decrease by 1% quarter-to-quarter. But taking into account the fact that in February, we have 2 days less, so we can say that this is quite comparable as far as the interest rate results are concerned.

When we look at the interest rate margin, which is probably more interesting for you, we can present with a big level of satisfaction this decrease because when we look at what happened as far as the reference interest rates of the National Bank of Poland is concerned, they went down by 200 basis points last year. And as we have already been saying for some time, we are changing the structure of our sales, and we have a huge growth of the mortgage loans, which is stabilizing the income of the bank in the long term, but it has got a negative impact on the margin.

Taking into account those 2 basic elements. The fact that we went down from 5.88% to 5.19% only, this can be considered a huge success when we look at the general trend of this decrease. Concerning the deposits and loan ratio, it's 78.5%, which is quite a good result. Concerning the fees and commissions, it has increased by 6% year-to-year. When you look at its development in the past quarters of 2025, we can see that every quarter, it has improved. And I believe that this year, the trend should be continued, which would mean that the number of the clients will increase. The sales of our products will also result in an improved commission income.

When I look at the first quarter, year-to-year, there are 2 things that needs to be commented. First of all, the increase of the brokers commissions by PLN 10 million, and this is connected with a higher volume of the investment funds and to a higher activity of our clients at the stock exchange. We've got also a second item, the sales of insurance connected with the mortgage loan sales. We have also seen here a huge growth by PLN 7 million.

And my last slide on the operating expenses. As mentioned in the strategy, we want to maintain them at a comparable level, and we want to maintain them in a regime that we have adopted. In order to present it better, we have split costs, operating expenses into bank operating costs and BFG costs, which are above it. So as you can see, every quarter is getting slightly higher, but it's still comparable.

When we look year-to-year, quarter-to-quarter, all we can see that there is a slight increase in costs. When we look at the last quarter, we can see that we have mainly HR costs that have increased, but this is due to the structure and to the charges we need to pay as employer for the social security. That's for the first quarter and then it's getting down in the next quarters.

When we look at the general governance costs, so usually, in the last quarter, there are additional activities such as marketing activities, IT projects, consultancy services, and this all resulted in higher cost in the fourth quarter. So now we have a decrease in the first quarter of '26.

What is important is that when we look at the cost/income ratio, BFG in time, 37.8% for the bank for a bank with our structure, which is a growing bank, it's a very good value. And the most important information for you, I think, we would like for the general cost of governance once BFG included to be maintained at the level of the inflation, so that it would not exceed the inflation ratio this year. Thank you very much.

The floor is back to Piotr.

Thank you, gentlemen. On the last slide, I would like to comment as follows. We had quite a good quarter. I mean, the first quarter of 2026. We are changing the structure of our balance sheet, of course, it's moving progressively, but in the good direction. The P&L is increasing and even faster than expected in some segments. Mortgage, consumer loans are increasing. Concerning the business clients, the portfolio is stable, but the structure and the mix is improving.

We are reducing the nonworking part. We are improving the segments in which we would like to be active. Concerning the P&L, well, all this results in higher income, PLN 1.5 billion that has been mentioned here is due to the increase of our volumes, and we are very glad because of that. Of course, our P&L is highly impacted by all kind of costs that seem to be very well managed. They are not increasing. They're not growing. We may say that in some areas, we are even able to reduce them. That's why we have a very good position on the risks and with a good road followed by the NPLs, all of the risks.

The P&L is at a very good level. It's very stable, very solid, PLN 403 million of our results impacted by the corporate income tax mainly is very good. It's one of the best return on investments on the market currently. Cost-to-income, I have already mentioned that and NPLs. So we consider that this quarter has been a good one. It's a good opening of the year. The dividend is paid and our rating -- investment rating have been a strong element of this first quarter.

And I think that I will end here, and we will be glad to answer to your questions.

Well, first of all, what we are observing is a much better situation in terms of winning the law suit. That is why the reserve level is as it is. We are being much more efficient in the litigation process, and that's been the main reason for the drop. Thank you very much. The next question.

In the first quarter, was there a reserve for the legal risk related to SKD? And if yes, what was the amount of the reserve?

Well, in the first quarter, we did not set up a reserve fund for that. We simply decreased because of the incidents of higher success rate that Piotr mentioned. What about the MREL at the end of first quarter 2026. At the capital group level, we received 11.5%.

The next question, does the Board see an impact of relational customers to the provision result? And what is the outlook as regards to the commission results for 2026?

Well, I think this question is not so much about relational loans, but relation with customers. Yes, we see an impact. The relational customers give us a better level of banking. The relational customers bank more readily and use more of our products. Our aim is to increase the commission result by 4%. And we are on a good track as far as this is concerned, there's a growth trend which Zdzislaw showed us.

What was the WFD result at the end of the first quarter?

44.7%.

What is your assessment of the ECJ ruling about the para loan results? Well, what is this ECJ ruling about?

ECJ said that banks can provide credit for commission, but cannot receive interest from it. However, the fact that they can't receive interest, so the loss from that can be set off by higher interest. So these are 3 important constituent parts of this ruling. We are analyzing what's going on. This is a very fresh ruling. We are very active in the Polish Bankers Union.

And the whole of the sector will be very active in limiting the results of that ruling because in our view, this is about the mechanics of the calculation of the bank's remuneration. This mechanics should be modified. And ECJ said simply the potential losses that occur because you do not take interest on commission can be set off by higher interest. So ECJ agrees that remuneration is due to the bank because of that type of activity. And the next question.

What part of contract contains the cost of commission of insurance?

As far as new sales are concerned, we're talking about marginal level of value. We have one as far as I remember. open line, but it is practically being wound up. As far as the other part of the portfolio is concerned, we are analyzing this. This is a fresh issue. So we cannot respond giving you any figures. But historically, we realize that this has taken place, and we are assessing the situation because there's been many changes in the contract, and it's too early to provide a definitive answer on that. Thank you very much.

The question from [indiscernible ].

Piotr mentioned about the rise of MSP volumes by 11% year-on-year. On Slide 30, you show the drop by 16% year-on-year. Well, the drop is in the micro companies. But in other segments, we are growing. So I don't know what this is about. In one slide, we're talking about a working portfolio, the one that generates stable growth. And there, we have increased results. But in the subsequent slide, we have the total portfolio in the gross value, which includes the nonperforming loans?

Another question about the ECJ ruling about SKD. Can this impact the bank's reserve levels?

Well, I want to be quite definite. This particular ruling did not refer to SKD. Let us not introduce any confusion here. This ruling was about the right of the bank to obtain interest on the cost of credit like commission or whether this can be compensated. And ECJ said that this can be compensated by a higher level of interest. So this is not an SKD case. There is no sanction related to a free loan. This is about the mechanics of the calculation of revenues due to the bank stemming from commission on loans.

Thank you. That was the last question. Thank you all very much for the questions, and thank you to the Board.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Ladies and gentlemen, may I welcome everyone cordially. My name is Dominik Prokop. I represent the Investment (sic) [ Investor ] Relations department. This is a conference devoted to results of the fourth quarter as well as the whole of 2025.

The first part of the meeting will be devoted to the results of the bank as well as the trends. And this will be headed by the President, Piotr Zabski, who will sum up the most important trends and will tell us about the results in the business area. We will have also Marcin Ciszewski, who will present the risk; and Zdzislaw Wojtera, our Deputy President, who will tell us about finance.

After the presentations, we will then have a Q&A session. Before I hand over to President, Zabski, let me encourage all of you who are listening to us to ask questions already in the first part of the presentation, which will enable us to smoothly continue with the Q&A.

That is all from me. I hand over to President, Zabski.

Ladies and gentlemen, good morning. May I welcome everyone cordially at the results publication. The Supervisory Board approved our financial statement yesterday. So we can tell you about what has happened in the fourth quarter of 2025, but also in the whole of 2025. So there will be a lot of figures devoted both to the fourth quarter and the whole of the year. It is a special moment for us because this is the first full year when we can present the results, which we had forecast and delivered, which you will see in a moment. But it's also a very good stage for our development, we are in the new headquarters of our bank. There was a move to the new headquarters in September, and this is the first conference in this new beautiful headquarters, Varso Tower.

Moving on to the bank results. Let me point to some important aspects. In the fourth quarter, as far as revenues are concerned, we had a very good result, almost PLN 1.5 billion revenues, PLN 1.26 billion is in interest income, which is by 4% less year-on-year. But if we compare the quarters -- if you compare the quarters, but the commission income is very good, PLN 240 million, which is by 9% higher than the fourth quarter of the previous year. And so the revenues of the whole year reached PLN 6 billion for 2025, which was forecasted in our strategy. There was a great contribution in the new sales. The interest income is PLN 5.13 billion, 1% drop year-on-year. Obviously, there was a drop in interest rates, and that translates into this decreased results by the commission income for 2025 is by 4% higher and translates into PLN 900 million.

Net profit in the fourth quarter is PLN 688 million by 12% higher than the previous quarter -- the previous year's quarter, so quarter-on-quarter, and PLN 2.35 billion (sic) [ PLN 2.37 billion ] net profit for 2025, which is a decrease by 3%, which we consider a good result considering the interest rate drops. This was delivered in very high ROE ratios, 21.7% in the fourth quarter and 19.6% for the whole of 2025. We forecast 18%, if you may remember. In the lower left-hand corner, a number of good details. We continue the drop trajectory in our cost of risk ratios and the drop in our NPL ratio. The cost of risk quarter-on-quarter is below 1 percentage point and 0.13 percentage points drop for 2025. So another good year when we improved the ratios there. And the NPL ratio today is a very important element of our dividend decision. That is 5.64%. Our promise and the strategy is, therefore, continued. We plan to go down below 5% of the NPL ratio. We will hear later about the significance of that particular drop.

As far as customer relations are concerned, we keep growing. The relational customers are now 1.7 million. We kept selling more, but we had a considerable churn, which will later be commented upon. There were individual promotional activities finished and some of the customers moved to other banks. We put a lot of stress on relational customers, and we grew there by 107,000 customers. As for mobile app users, there was a considerable growth, the fastest growth in the sector, 17%. There was an improvement in our application where we were able to offer it as a product to the customers at a more professional level. The sales, which were considerable and improved our results, was PLN 8 billion in the fourth quarter '25, which was an increase of 12% year-on-year. In the whole of the 2025, there was a growth of 17%. Together with the leasing sales, it was about 20%, which is very good because our promise of growth is, therefore, materializing.

What is also crucial is how to deal with the churn, but that is the task for this current year. There's been a growth in the deposit portfolio. We grew alongside the market at the level of about 7% year-on-year. The value of our portfolio at the end of the year was PLN 82.6 billion. What is worth noting is that it's been a very good quarter in early leasing, the fourth quarter. But the whole of the year was good as far as the leasing activity is concerned. For the business customer, the leasing product is our flagship product, especially for small- and medium-sized enterprises. PLN 7.2 billion is the portfolio, which is 9% growth year-on-year. In the fourth quarter, we had 14% growth year-on-year. We are not present in all the segments, mind you. So this is especially good in that context.

Now a few bits of information which may be new to you. What is of paramount importance? We are now part of the top tier as far as financing, like I said, we are above PLN 100 billion, which is a growth of 9% of our assets year-on-year. The working loans translates into 5% growth and a 7% growth in deposits, which is PLN 82.6 billion. And as I already mentioned, PLN 1.1 billion in assets. As for our other figures, we show you in the first line, the fourth quarter compared to the fourth quarter of the previous year. Cost-to-income ratio around 38% annually and quarterly, the costs have grown. Zdzislaw will refer to that later.

As for the NIM ratio in the fourth quarter, the lower interest rate translates into this result, but we have 5.38% level. And as for ROE, I already mentioned a very good result above our strategic forecast. As for cost of risk, not 0.29% and 0.49% for the whole of the year. So there's been an improvement in each of these indices. As for the capital, we are at the level where we can be confident in developing our scale and the NPL 5.64%. So our promise has been delivered. We want to be a dividend bank. We want to be able to pay even more than 50% of our income, but we would have to go below 5%. Marcin will tell you about that later.

Now a few words about the customer side, 107,000 new customers, 240,000 mobile app. New users, about 5% of the mobile app users are banking with us. We are catching up on the slightly worse results in the previous stages in a very dynamic way.

Now a few words about what is happening on the deposit side. This is top left-hand corner. The structure of our assets of retail customers is presented there. There's been a growth of 13% across the year in all the constituent parts of this portfolio, which makes us very happy. We're happy to see the investment funds grow because this is a considerable part of our commission revenue. And investments, as you can see, are also going up. On the right-hand side, you can see the gross loans to retail customers divided into the consumer loans and the real estate loans, both the guaranteed and non-guaranteed ones. In the fourth quarter, you can see that there was almost a parity as regards both the guaranteed and non-guaranteed loans with an increase on the side of the real estate loans, the longer tenor guaranteed loans, but with lower risk and greater markup. So we are slightly changing the product mix in our portfolio in the direction of the better products with lower levels of risk.

At the bottom, you can see the loans which are shown in the dark red color in the top slide. There's been a growth of 14% in the non-mortgage loans to retail customers. That is the growth of sales, not of the portfolio. The both parts the cash loans and the consumer finance behave according to our forecast. What I would like to comment on is the right-hand side bottom corner, the growth in the mortgage loans, 36% growth of sales year-on-year. If you consider that 2024 saw 1/4, as far as I remember, of the sales on the BIK A2 if we decrease that, then the increase would be almost twofold. We increased the sales by 100%, and we keep growing it quarter-on-quarter. Our share is higher than it would seem from the analysis of our share in the whole of the loans balance in the sector.

What I mentioned previously is the importance of the mobile customer. We have a new application, which is going very smoothly. It does not crash. There is easy access to all the features. There's been a great improvement there. The assessment of the customers is very positive, as you can see. So we are improving the -- as far as the application is concerned.

As regards to the business customer, let me focus on this. Now in the top left-hand corner, you can see that there's been a drop by 5% in the portfolio size, but a few words of explanation are on order. In this particular portfolio, we have the micro segment and small, medium-sized and large companies. As for the micro sector, this will keep growing because we have the largest NPL ratio there, and we have to get rid of that portfolio, which we are doing step by step. So this part is decreasing definitely. And the difference as regards to the sales is about 32% drop year-on-year. At the same time, we keep improving in the segments where we are a good player, where we are confident and competent in the medium -- small and medium-sized enterprise. And there's been a growth of 32% there.

So if you consider that we are getting rid of what's in the top right-hand corner of the nonworking, nonperforming portfolio. And if you put all these together, plus the new sales, which has grown by 40%, has not yet translated into the growth of the whole portfolio. So in the middle of that portfolio, there are all kinds of things happening, sometimes contradictory in different segments, different things are happening, but we hope that the trend will reverse and the small and medium-sized companies is not the segment where we will see the huge increases, which in previous stages saw an increased level of risk. So this time has passed.

For our business customers, they've got deposits here, 3% increase year-on-year. We are especially happy about the fund of a new system that we have launched as far as IT is concerned, very much focused on our mobile app, has been taken advantage of vastly by our customers. So our customers do their banking online, in the digital channels, which is something that make us very content about. Now leasing is our response to the needs of micro customers, but also given the fact that the banking sector may also ensure funding to micro companies that have been there for less than 2 years. Leasing is a very nice response, 9% increase year-on-year. As far as the sales go, 13% in quarter 4 [indiscernible] and 14%.

So this portfolio has increased by 9 percentage points. We do not play on all the segments. We only service most promising sector that is the light vehicles. Light vehicles is not our specialization. Machinery and heavy-duty vehicles is where we have most competence. This is where we keep growing, and this is our response, manifesting how we can secure it and grow in the business sector. So much for a very short commentary to rather general results of the bank.

And now Marcin will tell you more about the risks.

Piotr, thank you very much indeed. I welcome you all. What is our capital standing of the bank? It is very safe and sound in T1 and TCR. The ratios are 17 -- 73 which makes us having a nice buffer regulatory minimums. And this gets translated in PLN -- into PLN 4.8 billion. And we are very consistent in our operations. We issue further installments of bonds. The year was closed at 21.43%, 257 bps higher compared to the regulatory minimum that is imposed on the Alior Bank Group. For the liquidity indicators, long-term and short-term liquidity ratios are equally safe and sound, exceeding regulatory minimums at a safe level, 245% and 49% for the other ratio.

As Piotr has already told you, our assessment is this. We very much comply with the requirements that enable to have a distribution of 50% dividend, and we are awaiting other orders, no decisions have been taken as of now. To make a reference to what Piotr has said already, this slide stands to reflect the way we manage risk, both with regard to core as well as NPL ratio. CoR was standing at 0.49%. So this is yet another period, consecutive period we've been dropping this particular index. And please pay attention. This index is very much impacted by the sales of other portfolios like performing loans.

This is one of the constituents that is taken advantage of as far as cleaning the portfolio is concerned. And we do clean it in terms of sales. And at the same time, we have managed to maintain our directional CoR that we have otherwise shaped the level, not exceeding 0.8%. And as I have already said, we are very much pursuing our strategy, our operations, which targets at nonperforming ratio at a level below 5% threshold. Our strategy says this particular ratio towards the end of the year will get below the 5% level. So we keep pursuing this path, and we will manage to decrease the set index below the level of 5% beyond by the end of this year.

Gradual improvement of the quality of the loan portfolio, PLN 3.6 billion, that's the final value of the year as we discussed at our previous conference. Towards the end of quarter 3, we had one substantial default in our sector of business customers. But in spite of all that factor, there's been a further decrease of nonperforming loans. NPL ratio for retail customers. Well, it stand very confident level, especially when it comes to business customers are concerned, still, there is a lot of work to be done in the micro segment because that respective index is still 2 digit. On the right-hand side, top of the page, we can see what was happening in quarter 3 and 4. NPL sale affected significantly the level in quarter 3 and 4, respectively. You may want to see the level of CoR, which has been generated on our end without one-offs. That would be relevant to mention.

And now Zdzislaw will hand -- will take the floor.

Thanks a lot. Now it is my time to discuss the financial results. Let us first look at our revenue side between 2024 and 2023, 1% drop, PLN 49 million. So we have managed to maneuver well in the environment of decreasing interest rates and significant costs very well indeed because the revenues are well comparable between 2024 as well as 2025. The commentary from [indiscernible] development of our business volumes made us capable of compensating the decrease of index rates by the growth of business.

Let us now have a look at our growth. There is a drop of 3%, yet these quantities are where comparable between 2024 and 2025. So we must consider 3 factors, indeed, one of them being interest rate cuts. Secondly, BFG costs decreasing. And third, a one-off event that is tax asset. The impact of the revaluation of the net tax asset, I will discuss it further. Quarter 4 2024, 2025, if we put them all together in 2024, we accounted the cost from the whole 2024, whereas as regards to 2025, I will show it to you in the next slide, we cared that there is a linear growth materializing. So this basically explains the difference of 13% between quarter 4 2024 when compared to quarter 4 of 2025.

Now let me discuss in detail our income statement. The first column that you see marked in yellow, these are quarterly results, which have already been well commented by Piotr. Now please bear in mind a stable interest result. There's been a stability because in quarter 3 already, we have reflected all the impact of the interest rate cuts to reserve positions that I would like to comment on.

One concerning free of charge credit sanctions. So there has been a reserve in quarter 3. And the difference is the outcome of the change of the quantity of cases that come in and also our model approach is taken into consideration, but this isn't troubling by any means. Another position, EUR 50 million cost of risk of mortgages in foreign currencies that is in euro, [ EUR 50,151 ] million in the whole of 2025. So we are screening every senior for both these positions that is the sanctions and mortgages in foreign currencies to be manifesting a conservative stance so that the whole of the risk against -- reflected in the relevant manner. We had 110 more court cases. There's been a growth in this respect. This isn't significant. However, I wouldn't expect any increase in the current year. I suspect we should talk about the quantities that will be lower when compared to 2025 as regards to the reserve.

Tax assets, that is income tax, there has been a substantial difference, especially if you pay attention to in quarters 3 and 4 here, there's been a plus paradoxically enough. But there's been a discussion on that by other colleagues of mine. So there's been the introduction of tax as of January this year. Therefore, we must do other estimates based on another interest rate PLN 9.5 million on the plus side that was accounted for in quarter 3. Yearly results are pretty solid on the interest rate side and loans side. Marcin was already speaking about that EUR 2.337 billion, a very solid closing of the year, including all the factors that Piotr was speaking at length about.

Now let me move on to yet another look at our costs and interest costs. This comes as no surprise, especially if you consider the medium part of the graph. Our quarterly statements manifest a decrease of 10%, stemming from lower interest rates, 22% on the side of the interest costs. By and large, it gets reflected in our decrease of our margin, interest rate margin. It used to be 6%. Now it got lower to 5.38%. Please note the impact of the low interest rates. That is number one factor, but there is also another factor that is a change in structure of our statement, which is the product of us selling other products that is mortgages. If we get back in time mortgages, given interest rates reality, well, the margin was pretty high, but the mortgages are being sold more dynamically. They've got other profit characteristics and therefore, the margin has been a little bit more sluggish.

So the margin is very impactful as regards to the margin that you will get to see in quarter 4 2025 on the one hand, but on the other hand, if you have a long-term perspective, we are building up a very stable portfolio of revenues in the longer time horizon for the bank. So the whole banking industry has been learning lessons around the ease of mortgages. This has been included in our contracts and all the clauses which are relevant. This is precisely how we wanted to mirror also the guidelines of the Polish Financial Supervision Authority. So our portfolio is this. It is looking into a longer time horizon. So my take is it is a very positive trend. The very interest rate profit, it has dropped by 2%. Also taking into consideration the credit [indiscernible] that happened in 2024 is by no way surprising because this is clearly our response to the result of interest rates given the dropping of the interest rates.

Now about commission as you look at the first quarter and results concerning the first quarter. And there were questions about this would not be our case here and whether we will manage in the subsequent quarters. We said, yes, we will want to improve it. And here, you can see the result of our activities. If you take year-on-year results, you see that there has been an improvement by 9% in the commission income. And the source of that income is also important. It stems from the activity of retail customers and the activity of customers who use different products of Alior Bank, but also the brokerage commission, which stems from the activity of our customers, the development of our TFI participation in investment funds, the individual advisory services to customers.

All this has translated into these improvements and these activities will certainly be continued. There's been stabilization of operating expenses in 2025. We are quite happy that we managed to optimize the operating costs of the bank. If we deduct the BFG costs and focus on the Alior Bank internal costs, the costs have grown by 5%, which is below what I had communicated a few quarters before. We talked about 6% to 7%, but we've managed to keep it at the level of 5%. So that's a very good result.

Another important element, which I want to draw your attention to and which was also forecast by us, we wanted the growth to be foreseeable and comparable and we've delivered that aspect. If you look at the first quarter, we see a one-off BFG cost there. There was a one-off event which affected the raise. But other positions are quite well comparable, and we will keep maintaining the cost discipline so that they can be compared quarter-to-quarter. I am convinced that we'll be able to continue with that in 2026. And we want to have the rise of costs even below the 5%. The cost/income ratio is very good, 37.9%. And the quarterly ratio and 39% in the annual result. So that is also a good indicator for the development and for the cost structure of Alior Bank. And I hand over to Piotr.

Thank you, gentlemen. Just to sum it up, I would like to say that our business agenda, the one that we've addressed in our strategy is working according to our expectations. We announced 3 pillars in our strategy that we want to focus on. And they are connected strongly to the development of the bank. The first one is the growth of scale, entering the top tier, PLN 100 billion, a leader in consumer finance. We are definitely a leader there. No one is ahead of us as yet. We keep growing in relationship customers. That's our focus, 107,000 new customers. There's been a certain level of churn, which we are struggling with. But the rise in the transactional ROIs, a record growth in sales by 17%. If we divide the BFG, it's almost 20% of growth, especially driven by the consumer -- by the mortgage loans. Deposits are growing. So the scale is materializing and the figures speak for themselves.

The second pillar is the high resilience. I want to focus on the change of structure of our balance sheet. We go toward long-term loans, which are guaranteed rather than the non-guaranteed at a lower margin level, but they bring a lot of stability to our portfolio. But we are not slowing down as far as consumer finances is concerned. We are a leader there. We are experiencing very good sales, high margins, low risk. As far as the business customer is concerned, we keep growing in the segments in which we are confident and competent as far as micro enterprises are concerned and where we are not able to finance the loans. We have a leasing offer, which is also growing in a very stable way.

Coming back to the resilience, the commission result is very good. It keeps growing. There's also a growth in terms of income from investments, which is seen in the market in general after a certain period of stagnation. And we are also more resilient technologically. Our systems have considerably improved compared to the previous periods. The mobile app is very stable. The accessibility of the service remains at a very high level.

And the third pillar that we mentioned in the strategy is the operational excellence. What I want to stress in this regard is that we are changing in terms of technologies. We are becoming an advanced business. We're introducing a new app, both on the retail and the business customer side. We are also developing the agile model, AI coded and the whole organization, all the employees of our headquarters are now able to work in the agile system, which we have scaled up this year, and we work in the system, which brings concrete results.

A very strong cost discipline. After the BFG deduction, the 5% cost growth compared to the whole of the sector places us in a very good position. The costs are well managed by us in a foreseeable way even in the quarter-on-quarter results. We don't have the volatility, the ups and downs that we used to have. The risk and the figures that Marcin mentioned speak for themselves. All the graphs, the results show a very good trajectory. There are very good results. We improved the risk situation. We want to get below the 5% ratio in the NPL, which will allow us to pay out a 75% dividend. We improved the KNF ratios. We are waiting for the individual decision regarding the dividend for 2025. But that will take some more time. And all this has brought us to the results that we have, the revenue above PLN 6 billion, net profits PLN 2.5 billion, a very good indexes of cost to income and cost of risk and NPL 5.6%. That is all a very good result in the environment of low or definitely lower interest rates. They went down at a faster rate than we forecast.

So it means that our business strategy is working, and I want to take this opportunity to thank all the employees for this excellent result. And thank you for the dedication, for the effort and for working together to develop the Alior value, which we have described to you.

That is all as far as the formal side is concerned, and I believe we can now move on to the Q&A session.

Thank you very much. So we can now start with questions. The first question, what was the impact of the NPL sale on the fourth quarter 2025?

In the fourth quarter, we recognized a sale of the second important portfolio that was sold in the previous year. In the fourth quarter, the income from that sale was PLN 110 million.

Thank you. The next question to Marcin. What sensitivity to interest rate changes can be expected after 2025? What is the current SOT ratio and the NII sensitivity to a rate cut by 100 points?

Well, as you realize, when interest rates are going down, there is a greater pressure to manage that particular ratio. We assume in our plans that this particular ratio will be maintained at the regulatory level. At the end of the year, we assume that it will be at the level of 4.5% in T1. And as regards the sensitivity, which was mentioned in the question, 100 bps should have an impact of PLN 120 million.

Thank you very much. And the next question about the dynamics of the loan portfolio in 2026. What do you expect? And is there a possibility of an increase in the business sector?

Let me start with the retail customer. We expect a positive dynamic as concerns consumer loans. The increase that we forecast not necessarily in the installment loans because there's a trend that we need to grapple with. But as far as mortgage loans are concerned, there will be a definite increase. And as far as the corporate sector is concerned, we have sold more year-on-year, but we need to see what's happening within the corporate sector portfolio. I already mentioned that in the micro enterprises, we have a considerable debt to be paid off. In the small and medium-sized companies, we are growing. As far as the leasing sector is concerned, there's a considerable growth of 16% year-on-year.

So in the corporate sector, yes, there will be growth, the growth in the sectors where we are a good player. We want to grow in the micro sector as well, but in a safe way so that we don't experience the kind of crisis that we have as regards to risk and the debt that we keep having paying off still today. The large deals that are more and more present in the Polish market, we will certainly see our presence. But considering our scale, this is not our core activity.

Thank you. The question about the free loan sanction. What trends can be expected in the SKD sector? Can we expect that the target reserve level will represent 100%?

Well, I think Zdzislaw would be able to comment on that. SKD is a problem of all the sectors, including us, of course. We recognize the dynamic and want to reflect it in our reserve structure. Will it be 100%? Well, I don't think that SKD goes the same way that the French -- the Swiss franc loans because the regulatory authorities have taken this seriously on board. And I believe that the new law, which is being worked on and the Office of Consumer Protection will not translate into a modus operandi for all kinds of cowboy companies, legal firms, which are really the real beneficiary for this solution. And as far as the reserves are concerned, we want to reflect them in our books.

Indeed, for the model, it is impacted by 2 factors that is the incoming clashes and the number of cases that will get lost. The majority of cases is where we are, on the winning side. So if we look from that perspective, we don't see the need to create any further reserves or increase that often in 2026. Our point of assumption is much is going to be determined by the European Court of Justice. So we believe the trends we have spotted already are rather positive, and they have only gotten confirmed in the court adjudications, that is the bank expecting more -- the sustaining trend in the currency portfolio. In 2025, we had a rather conservative stance, but we don't think, given the number of cases which are coming in and the recent trends that we would have to create at the same level of reserve. It'll be smaller compared to 2025 in the current year.

Another question on the value of NPL portfolio. How much of that are balance positions and nonbalance positions?

As I said beforehand, this is one of major components as far as the whole management of NPL goes. I do not have at hand, however, so -- such details. We do not disclose this kind of detail.

Another question. The churn of Alior Bank customers, is it in any way different to the market average? And if so, where does that difference stem from? And how is the bank planning to manage, to cope with the churn?

Our difference is by no means different to the market average. Our customers, by and large, are not only loyal to one bank only. Most of our customers, except for the youngest ones have accounts in other banks. So the churn stands where it does. It is by no means satisfactory to us. However, what I stressed was certain marketing campaigns that we launched in 2024. They have already been brought to a close, resulting in the outflux of customers. The activity as I said was already concluded. What we did in 2025 does not come with this particular risk. But the impact was eventually be seen in 2024.

Than you. We will ask another question on the value of the mortgage currency portfolio towards the end of 2024 and 2025, respectively. What are the statistics of the legal actions here?

Towards the end of 2024, we had PLN 39 million gross value of Swiss franc. Later, a year after, it was only 7 -- the account statement towards 2024 was equivalent to PLN 1.4 billion, whereas towards the end of 2024, it was equivalent to PLN 1.3 billion. Euro mortgages is about PLN 1 billion, 3% thereof is within a certain legal action. To estimate the reserve the way we described in the financial statement, our assumption was that the target here for legal disputes as concerns the euro mortgages will be equivalent to 9%.

Thank you very much for that. Another question on the expected dynamics of the result of interest rates from commissions as well as operating costs in the current year.

For the interest rate result, it is quite a challenge to face to make it stable at the level it used to be, we would need to employ a more holistic view on that. Our ambition is to shape the revenue stream in 2026 in a manner to enable us to have amounts that would be very much aligned with what we had in 2025. So we assume that the growth of the new business will be enough to compensate for the effect of cut interest rates. So that's our stance. This is our working strategy for 2026. For the costs, our ambition is to make them stay at where they were in 2025, well beyond the 5% level, including the [ BFG ] cost, and I assume that we'll manage to curb them below the 5% level.

Thank you very much. Another question. After a 4 percentage point growth of credit in 2025, can we expect a 30% increase in the strategy perspective? An increase of strategy in 2026, is it going to surpass what we saw in 2025?

Possibly, this 4 percentage point increase give us a straightforward answer. Nevertheless, this concerns the way we sell. Well, the sales have increased without [ BIK A2 ]. This accounted for 20%. BIK A2, 17%. What we grappled with was churn. Essentially, it was pretty unique. So the portfolio could stay on sales only. Now being mindful of the strategy for mortgage sales, well, they stand depending on segment between 12% or 10%, 15%, 16% in some areas, especially the ones that we feel particularly confident. So we intend to grow. Are we going to achieve a 30% increase? Well, we are firm believers, we will.

Another question. To what a degree the growth of our mortgage portfolio is the result of the refinancing of credits, and to what extent does it stem from new credit loans?

Most of the sales are made up by new loans, yet the market trend is this. The majority of increase of sales on the market in the whole banking sector is very much the outcome of refinancing. In our case, however, it is mostly determined by the new loans as such.

Another question, what is the expected dynamics of the number of employees in 2026, a further drop of 5% in the course of 2025?

Well, we don't have these figures at hand. Employment we retain. Well, it is managed on an everyday basis, and it largely depends on the solutions we adopt. Obviously, with a view of automation will adjust our processes, taking advantage of the benefits of artificial intelligence, which the odds are we might want to reduce the size of employment, which doesn't preclude new jobs from popping up somewhere else. So I want to give you any straightforward answer to that question because we are here in a very dynamic environment.

The question on the cost of investments that are forecast for 2026 when compared to the level of 2025.

If I remember correctly, on a year-on-year basis, we've been stable. We have capped the leveling target. However, principle is, we don't disclose this particular data. The technology, by and large, is the last resort where we wouldn't want to invest. The bank badly want improvements in spite of the fact it's 17 years old. Well, by mergers and acquisitions, some systems did 10 years ago. So the growth of technology, making it more sophisticated is a priority to us. Savings may be allocated somewhere else wherever we can, but we'll also invest.

We have exhausted the questions. Thank you very much to the Board for the presentation, for your questions, and we'll see each other on the occasion of another quarterly meeting.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning. My name is Dominik Prokop. I am the Head of Investor Relations. Welcome to this conference presenting Alior Bank's Q3 2025 results. In the first part, the results and the trends will be presented by Alior Board members, Piotr Zabski, CEO, who will present the main trends and discuss the business performance; VP Marcin Ciszewski, who will speak about risk; and VP Zdzislaw Wojtera, speaking about financial results. Right after the presentations, we will move right into your questions.

Before I hand over to our CEO, Piotr, I urge and encourage all of you to ask your questions even during the presentations. Just like every quarter, this will allow us to smoothly segue into the Q&A. Thank you, and over to Piotr.

Good morning, and welcome to yet another presentation of our quarterly results. Yesterday, the Supervisory Board approved our results and it is our pleasure to present them today, to present our Q3 performance and the results year-to-date.

Before I move to the highlights, I'd like to first talk about our strategy that we announced and published in March. In the third quarter, we continued to pursue our strategy, and in summary, we came close to saying that we are well on track implementing the strategy. The strategy is based on 3 pillars: growth, scale, stabilization of results and operational excellence, which you will see in our numbers.

Operations, just a few highlights and facts I'd like to draw your attention to. This year, year-to-date, our revenues reached PLN 4.5 -- more than PLN 4.5 billion, including NII at PLN 3.87 billion year-on-year, stable with lower rates, of course. Our net fee and commission income grew. That's the other leg of stabilizing our results. So that has materialized.

In Q3 alone, we have a drop in NII due to the lower rates, but we have made up for it by growing our net fee and commission income, which is our strategic objective. Hence, the net profit in Q3 amounted to PLN 563 million and year-to-date PLN 1.679 billion. And we have achieved all that with a very good return on equity, close to 19%, well in line with our strategy. My comment over that period of time, we also recognized 50% of last year's profit in our equity, and so we are even more proud of our ROE as equity is growing.

Speaking of risk, we have very good readings, PLN 124 million cost of risk and the ratio is 0.72, less than 0.8 that is our target, down 0.2 percentage points year-on-year. NPL stood at 6.29%, down 0.81 percentage points in the past 12 months. So we are well on track, in line with the trajectory of eliminating the problems that burdened us over the past few years.

I've mentioned equity. Our capital position is solid with a big surplus. Our ratios, Tier 1 and TCR, remain very strong, well above the regulatory minimums. And that surplus allows us to continue with our strategy of growth.

Speaking of growth, just a few highlights, a few facts. As you may recall, our strategy relies on relationships, growing the number of relationship customers who are the future of this bank. That number grew by 100,000 year-on-year, the number of relationship customers, the biggest growth we have seen in this regard over the years. 1.68 million -- sorry, we have 1.68 million customers, 98,000 more than at the end of Q3 2024. And the number of mobile app users was 1.59 million, 15% up year-on-year.

Our deposit portfolio grew 8% year-on-year to more than PLN 80 billion and our assets grew, especially mortgages. We are proud to say this, the increase was 111% year-on-year to PLN 1.3 billion of new mortgages in Q3. The share of our portfolio of mortgage loans in the portfolio is now more than 30%, which ensures some stability in our portfolio. This is a long-term, well-secured portfolio at good margins, so it is a stable factor working for us in the coming periods.

Another success we are proud of regarding liquidity, we issued MRL bonds that Marcin will discuss in more detail at a very good margin, 1.5%, with a lot of demand. So something -- that's something we are also very proud of.

The next slide presents more details of our activity across the bank. Assets grew 7% year-on-year, and we are very close to a special mark, PLN 97.7 billion -- very close to the mark of PLN 100 billion. We'd like to get there next quarter.

The volume of deposits was growing faster than loans, specifically up 8%. That's more than PLN 80 billion. Performing loans grew 6% to PLN 63 billion. At the bottom of the screen, you can see 2 lines with some readings for Q3. The top - there's the top line and then year-to-date in the bottom line. Cost-to-income ratio was very strong. Our costs increased affecting the portfolio due to inflation. And I think Zdzislaw will focus on that later on. But as you can see, the growth of this indicator is lower than the growth in costs.

NIM and net interest margin. The interest rate cuts are materialized here. ROE, very high, as I said, both in Q3 and year-to-date. Cost of risk, very low as well in both terms, in Q3 and year-to-date, better than we expected, in line with our strategy. And the NPL and capital ratios are very strong. Most importantly, in a downtrend this continues.

Let me now move on to our main 2 business lines. First, retail. That's the top left-hand side of the slide. These are the assets of our retail customers that grew 12% year-on-year. We are very happy to see that growth. Basically, every line has improved year-on-year.

On the right-hand side, you can see the gross loans to retail customers by real estate loans in yellow and other mainly consumer loans up 6% overall. In the bottom part of the screen, you can see the breakdown of that figure. We are happy with the growth of non-mortgage consumer loans, up 21% year-on-year. The sales have stabilized over the past few quarters, but we have maintained the dynamic growth. So growing scale is part of our strategy, and we are very much doing that.

Last but not least, in the bottom right-hand corner, you can see the efforts we've made to sell mortgages, which grew by more than 200%, 2.1x bigger. That is our production and sales year-on-year. The sales grew to PLN 1.3 billion in Q3. So our market share is much bigger than our overall share in the banking industry.

Customer relationships and relationship customers, part of our strategy. The number of relationship customers grew by more than 100,000 or close to 100,000, 1.68 million, the best numbers we've seen ever in this regard. Relationships are very important for us to stabilize our performance and the other -- to prop up the second pillar of our strategy.

Our customers are using the mobile app more and more, the number of mobile app users has been growing. More of that later. But I'm happy to say that customers who do not hold accounts with us but only have installment loans or cash loans, they have a reason to use our mobile app. That number grew by more than 200,000 customers year-on-year.

The relationship customers, about 50% of them are using the app. That's 5% more than last year. And we also see a 5 percentage point increase in the number of end-to-end customers, that is people who start their relationship with us in the mobile app and they only use mobile banking.

Now very briefly about our mobile app. That's one of the key factors of our performance. Mobility is a key focus for us. We want the bank to be available, the entire bank and only bank in the app. We have improved that. We have improved our ratings and we have a very good NPS, very good customer ratings, even before what you can see in the bottom of the screen. In Q4, we will present a new version of our app, which we are building on the new technology provided by Kotlin, a multi-platform with new processes which rely on state-of-the-art technologies. We are working with Xiaomi and that's supported by the latest CRM.

As a result, we have launched a number of new functionalities, BLIK prepayments for installment customers, for instance, those customers who do not have an account but have an installment loan are now actively banking over the mobile app, and they are using a number of other functionalities as well. And that's even before we have presented our new app. This is happening in Q4.

Now let me move on to our business customers. We see stabilization in the performance and in the portfolio. The portfolio is stable, even though new sales would suggest that the portfolio should be now growing. At the bottom of the screen, the yellow bars, you can see the total credit limit granted, up 34% year-on-year, which has not yet fully produced complete results.

On the right, at the top, you can see that we are phasing out the loans in the nonperforming portfolio. So this works both ways. But we are very happy to see that new sales are growing, and these will soon outweigh the termination of bad loans. So the portfolio should start to grow.

What we see in some of the segments, maybe not in micro because this segment has been stagnant over the year and is now only starting to bounce back. But I'm speaking of the small and medium enterprise segment. The new sales there are growing by a double-digit number year-on-year, so a solid growth in new sales. Not across all segments yet, but in the segments where we want to be a bigger player. That's where we are being very, very active. So the portfolio mix that we are -- that we have now and our target portfolio mix are very different. So the results are not really comparable year-on-year.

As far as business customers are concerned, obviously, deposit assets, there's an increase of 5% there. They keep banking online even though there's been a very recent launch of a business app. We've now been having a campaign about that for the past few days. I'll talk about it later. What we are very happy about is the activity in the leasing sector, lease and loans portfolio. That's a good start for our business customers. The portfolio grew by 8%, by 3% in the last quarter. The lease and loans market has seen some stagnation this year. So the 8% growth is really very satisfying.

On the right-hand side, you see the growth in the new business. There's been a growth of 21% year-on-year. We are very strong in a few areas, especially vehicles up to 3.5 tonnes or machines and equipment. So we have a considerable share in those market segments.

A few words about this part of the strategy. We want to leverage our brand. We want to refresh it. And we, therefore, continue further activities in that area. There is a new look in our cards. There is an [ e- Kantor ] business. As you can see, a slightly reversed banking model for business customers where we give them the possibility to conduct the company in the mobile app with our banking in the background. Obviously, there's a new model of functioning. I invite everyone to visit it. You can manage both your warehouse and your invoices directly from the app, and it is all combined with the actual account.

We also want to follow the route of trying to reach new segments of customers. That is why in the last column on the right, you can see that we have joined the Inside Seaside festival as the main partner. We want to be visible there at the events of that particular festival.

And another aspect of our strategy, we want to refresh our target group. We want to expand into younger people. That is why we have a dedicated offer to that group. We've started collaborating with Anita Lipnicka and the PRO8L3M music band. We have issued a new video with a piece of music dedicated to that group. And there's been a good pickup in that target audience, a growing interest in Alior Bank. So we find this direction of development to be a good fit, and we will be reaching into new segments in that particular way.

So that is all as far as business results are concerned. I will hand over to Marcin to tell you more about credit risk.

Good afternoon, everyone. I will begin with the capital ratios. Our position is very secure. As has been mentioned by Piotr, there's a big margin quite above regulatory requirement, PLN 4.9 billion is the amount. The Finance Committee has given access. And at the end of September, there was an introduction of a new buffer, the capital buffer. Nevertheless, at the end of the quarter, the liquidity ratio is 17.5%.

We also grow our liquidity, MREL. In the fourth quarter, we have placed another position of our bonds to the tune of PLN 450 million, senior preferred it's called, and the margin of those bonds goes down. It is 1.5 percentage points above the 6-month WIBOR. With considerable oversubscription at the end of the quarter, the ratio was 20.75%. The liquidity ratios are above the regulatory minimums. As regards LCR, it was 214% and NSFR at the level of 146%.

Moving on to the credit risk. Let me start with the nonperforming loans ratio, which at the end of the quarter was 6.29%. In that particular quarter, we did not really sell any new loan NPL packages, but we did identify a default at a big customer in the mining and steel works industry. But that is a one-off event, which had an impact on the NPL and CoR level. But we have managed to bring that into order, and we still maintain the strategy where the cost of risk should not go above 0.8%. And after clearing the field from these negative events, it would be at the level of 0.7%. We maintain our strategic assumption, where by the end of next year the NPL ratio should go down below 5%.

Moving on to the next slide. We can see some important information at the business slide, there's a growth there. There was that one-off negative event. But in case of the retail customers, it is quite flat, but a slight increase compared to the previous quarter.

At the end of the second quarter, we sold an important package of loans, which did not happen in the third quarter. In the fourth quarter, there will be another package sold and a revenue will be credited, which will impact both NPL and the cost of risk ratios. Thank you very much. I now hand over to Zdzislaw.

Good afternoon. Let me tell you about the financial results. Let us begin with our income. The objective was to stabilize the revenues this year, especially in the environment of decreasing interest rates, 125 points dropped in 1 half of the year.

Comparing year-on-year results, we are at the same level of revenue. Also, in quarter-on-quarter terms, they are very similar results. If we look at the net profit, there are a few one-offs that need to be taken into account and which represent the differences between the quarters.

Let us look at the second quarter or the first half compared to the third quarter. As Marcin mentioned, in the second quarter, we had a one-off, which was the sale of the NPL loan package, which increased our profit for the second quarter.

If we compare the years, the third quarter of '24 and the third quarter in this year, we were still before the principle of spreading out the cost over the quarter. So the cost in the third quarter were very low. And then in the fourth quarter, we had to report more costs, considerably higher costs, which resulted in the result of the third quarter of last year to be quite high. So these are the ones which explain the difference. In other conditions, we still deliver considerable result above PLN 500 million in each quarter.

In the next slide, we see the breakdown of our income statement. The first yellow column is the quarter, then the second yellow column is the cumulative result, one through third quarter. And the first position, we will discuss them in the subsequent slides because we dedicated additional slides to these specific positions.

If we look at the costs of activities, which we keep to control very well -- and there is a dedicated slide to that, so I will discuss those in detail later. Two important bits of information for you is the fact that when we use the conservative approach, we have created PLN 47 million of additional reserves for mortgages in currencies and additional PLN 19 million for the so-called pre-credit cost.

We keep observing a growing increase of new cases in the third quarter, and so we had to react. But this is our very conservative approach. Nothing that could raise any concern is happening in terms of currency loans. This is a margin of our activities really. And so the currency loans is a very small part of our activities.

So there are 2 events which we included in the third quarter which impacted the net result, PLN 563 million, which translated into a very good profit of 19% in quarterly terms and over 19% in cumulative terms. Cost-to-income ratio is also very good considering the scale of our activities. 36.9% in quarterly terms is a very good result.

The next slide is addressed to the interest income. I talked in the part about revenues. This is obviously a very important part of it. Especially at the lower part, you can see that between the second and third quarters, we had a slight increase. Looking at 3 quarters of this year, there's been a stabilization of the result. And we expect that in subsequent quarters, we will observe a gradual improvement in the result according to our strategy.

So on the one hand, there will be a low interest rate environment and potential further decreases of the interest rates, but the volume of our income, profits and commission and margin will help us improve the interest result and the profit. If we look at the commissions, the interest margin, we started with 6.20% and ended up at 5.61% for this current quarter.

Two important constituent parts are important, the drop in interest rates, of course, but also the change in the structure of sale, where the important part of our balance sheet are the mortgage loans, which have a lower margin and income but can allow us to plan a stable income stream for the subsequent years. And these 2 elements impact the result, where you can see the drop in interest margin.

What can we expect in the next quarter? Well, there will be further drop, about 10 basis points. So that is what we can expect as far as the next quarter is concerned. However, the interest result should be at a comparable level and will subsequently improve.

And one final point on the loan-to-deposit ratio. You can see that our lending picks up, steps up, and so the curve is now turning north from 78% up to 80%, which shows that our loans are simply growing faster ever than before.

NFC, the net fee and commission income. As we said when presenting our strategy, this item is of special importance for us. We want to grow it. And we cannot grow it unless we work over time. This cannot be done overnight. We have to offer better quality to our customers. And step by step, we can see results. NFC grew 5% quarter-on-quarter and 10% year-on-year, with a significant increase in Q3 alone. In FX transactions of our customers, the summer, the holidays, travels helped to boost FX income.

And then we have another important line, sales of insurance in the group. That's good news. What are we anticipating in the next quarter? It may be difficult to copy the Q3 numbers one-to-one, but I think we will balance somewhere between Q2 and Q3 numbers with positive growth over the year.

And my final slide talks about our operating expenses. I've already mentioned that if you look at the numbers starting in Q1, net of the BFG contribution, our operating costs or management costs, general expenses would be PLN 540 million, then PLN 550 million, PLN 565 million. And we expect that the total operating expenses net of the BFG charge should be up 6%, 7% year-on-year in 2025, which proves that we keep costs well under control and our cost/income ratio remains strong at 37.9% on a normalized basis net of the credit holidays. And that's a very good and solid result looking at the scale of our activity.

In Q3, we saw a very positive contribution to the net profit -- in Q3 2024 to be specific. This is when our costs were still relatively low. Then in Q4, we booked very high costs with a significant increase. This is why that line is not straight. Now we expect to keep the costs stable quarter-on-quarter in a transparent way, and we are well on track. So it will be much easier to anticipate Alior Bank's costs quarter after quarter.

Thank you, and over to Piotr.

Well, to summarize, let me go back to the strategy once again. As I said, our 3 pillars to grow scale. And you can see that we are growing. Our assets are growing and so are our liabilities. Our lending and new sales are growing. The portfolios are improving. So we are growing scale. Especially proud to say that our number of customers has been growing. We attract new customers. They recognize our efforts. We are refreshing our target group. It's going to be younger. We get results. Our customers are banking with us using mobile and digital solutions.

The second pillar, stabilize our revenue. We are very proud with the increase in the share of NFC in our income mix. We are growing sales of insurance, for instance, that stabilizes our figures. And that's quite an impressive result I'm sure.

Third pillar is operational excellence, and it's also bringing results. The cost-to-income ratio is very strong. The increase in costs is well below the market average. We have fully implemented the agile model -- business model, and we work in tribes to provide even better solutions and better performance for our customers, especially digital solutions, as we said in our strategy. After Q3, our bank is thriving, we are well on track with the strategy.

And that's all for me. Thank you very much for listening to this presentation, and we open the floor for your questions.

Excellent. Moving on to your questions. What provisions for the CHF portfolio are you expecting in Q4 2025 and in 2026?

Well, as you know, it all depends on how fast new cases are opened. I'm sure in Q4, we can expect a slightly higher number, maybe similar to what we reported in Q3. But we expect that in the coming quarters, these numbers will definitely be lower.

If I may comment. Our CHF portfolio is disproportionately lower than those of other banks. So this is a fractional number really.

Another question. What were the reasons for the positive impact at PLN 14.8 million in your CIT in Q3 2025 in other items of the income tax?

Well, as you remember, in the last year, we said we were closing down our activity, our branches in Romania. And this year, we started to clear the losses from the windup of that branch. So that is the positive impact.

Next question. What is the scale of the impact of the proposed CIT adjustments that are expected in Q4 in deferred assets?

Yes. This is perhaps not that intuitive to some of the market participants. A higher tax rate expected next year means that the banks will be disclosing some additional impact on the net profit this year. I don't want to speculate. At Alior Bank and in all other banks subject to the new tax, the impact will be positive this year, which is paradoxical I know. But we've heard very different comments on this draft law. There may be an alternative draft proposed. So we don't want to disclose any numbers, but that would be the impact of the new tax strategy. We would have to look into it and present a positive result this year, which will be relatively high.

The next question. What is the WFD, the long-term ratio at the end of Q3?

It's fairly stable at the bank, 40.54%.

Thank you very much long-term financing ratio. Next question, the increase in the corporate loans portfolio in Q3, was it affected by any one-offs?

I think we are well on track of growth. As you may recall, our strategy says we want to shift the focus, and we are interested in micro -- in the micro segment. This year, the micro segment has been stagnant with no growth at all, very little growth in small enterprises and double-digit growth year-on-year in large customers. Well, I must say that Alior Bank is playing in this market in proportion to its size. We are not a leader or a trendsetter, but we are focusing on different segments than we used to. And so the growth you have seen may not be very impressive. But the segments we want to be a strong player in are now producing double-digit growth.

Next question. Why did your bancassurance income grow quarter-on-quarter in Q3 2025?

That was partly due to a higher cost of provisions against insurance repayments that we set up in Q2 and partly due to better penetration of insurance that is bundled with products we sell.

What NIM are you expecting in Q4 2025? How will NIM perform in the next quarters?

As I said, we are expecting a drop of 10 basis points or a dozen basis points in Q4. The annual average NIM next year is expected to reach 30, 40 -- sorry, to drop 30, 40 basis points.

Why was -- were your NPLs growing so slow in Q3?

As I said during the presentation, one customer, a large customer was defaulted. They defaulted in Q3 as a one-off. But we maintain our expectation for the NPLs to go down for the entire loan portfolio by the end of next year to less than 5%.

Next question. Why did the number of relationship customers grow year-on-year, 40,000? Was it new mortgage customers or customers using installment loans? What products can you offer to the new 40,000 customers?

Well, our definition of a relationship customer is quite broad, customer who banks with us day after day. An installment customer has a single relationship with us, an installment loan. So that's not covered by the definition and not covered by the growth. So we are looking at the number of customers who are actually banking with us. And there is no good answer to that question really.

We are playing a number of different instruments like an orchestra, and all these instruments play together. We are refreshing our brand. We are entering new segments, launching new products, launching new campaigns, reaching out to new customers, communicating with them in new ways, improving our mobile app. We are now working differently with distribution, production. So all of that is now starting to contribute to the performance.

Of course, we are continuously working to develop new products, simplify our processes, improve the time period, time to cash, and many other ratios. So it's a set of many different factors which we started to develop as we joined the bank and that we have addressed in the strategy.

Next question. Any of your strategic objectives to grow the loan portfolio, grow your NFC or your net profit, is any of those more difficult for you to achieve 6 months after you presented your strategy?

Yes. I think after 3 quarters, we are in a different place and depending on the segment. So the situation differs segment to segment. We have great achievements in selling mortgages, better than expected really. In other segments, we are growing less fast than expected. But again, in most of them above the market average. So it depends.

And as I said before, our loans may not be growing as fast as we would like them to. Our mortgages are growing faster than we expected. Installment loans are well on track. Business customers, we are changing our trajectory and reaching out to new segments. So in those segments where we want to grow, we can see sales grow by double-digit figures. It will definitely be difficult to improve the net fee and commission income now that interest income is falling, NIM is falling. It will be difficult to grow the margins.

We need to regroup. We need to reorganize our processes and products and build up the customer base of relationship clients who are not only producing NIM, NII, but also NFC. In all these segments, we can see some challenges. As of now, I think we have addressed challenges across many different strategic initiatives, that we have defined now a tactical plan. We have aligned the bank with the objective of delivering solutions very fast.

The agile business model we applied in Q3 was implemented. 100 teams in several tribes are working to develop even better solution for our customers. So we have seen some deviation from plan, but I think we are managing them quite well. Let me also mention leasing, which is also delivering double-digit growth year-on-year.

Thank you very much. This is all the questions asked. I want to thank everyone for your participation.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]