Dear ladies and gentlemen, welcome to the conference call with the management of Addiko Bank AG. At our customer's request, this conference will be recorded. As a reminder, all participants will be in a listen-only mode. After the presentation, there will be an opportunity to ask questions. If any participant has difficulties hearing the conference, please press star key followed by zero on your telephone for operator assistance. May I now hand you over to the Addiko team who will lead you through this conference. Please go ahead. Good afternoon, everyone. My name is Herbert Juranek, and it is a pleasure for me to welcome you to our earnings calls on the first quarter 2021. As most of you know, I joined as new CEO beginning of May, and I'm here today with Csongor, our previous CEO, Markus, our CRO, CFO, Ganesh, our CRBO and CIO, as well as Edgar, our Head of Investor Relations. I will now briefly update you on the changes in the management team and then hand over to the team who will guide you through the rest of the call and the Q&A sessions afterwards. I now kindly ask you to turn to page three. As disclosed earlier, we are in the process of setting up a new management team, which will consist of three management board members. Csongor and Markus will remain on the board until the end of May to ensure a smooth handover. The search of our new CRO is progressing well, and I'm personally confident that we will be able to announce the new composition of the team, as well as the split of responsibilities in the next couple of weeks, once the respective governing bodies of Addiko have approved on this. Thank you very much, everybody. I'm looking forward to engaging with you during the upcoming investor meetings and earning calls. Now I would like to hand over to Csongor and the team. Talk to you soon. Thank you, Herbert. Wholeheartedly welcome and good afternoon, everyone, and welcome to our first quarter 2021 earnings call. The usual slide with regards to the summary is the three boxes. If I kindly ask you to draw your attention to earnings and dividend part. In the first quarter 2021, Addiko posted a net profit of EUR 5 million. We had a cost of risk of EUR 4.1 million and we actually had an operating result of EUR 11.3 million, which is actually down 21% year-on-year, but one has to take into account the one-off cost of the management changes as well as the ramp-up of the pro rata bonus pool and the accruals for the first quarter, which were not done in 2020, but were actually taking place in 2021. With regards to return on tangible equity, we have currently a figure of 3.1%, and we had posted earnings per share of EUR 0.25 or EUR 0.25. I trust all the shareholders have already received the first tranche of the dividend of EUR 0.36, which were actually paid out yesterday. With regards to asset quality and containment, the second block on this slide, I'm glad to report to you that our non-performing exposures have further reduced, standing at EUR 230 million at the end of the first quarter. Our NPE ratio stood at 3.3%, and if you take into account only the on-balance loans, the NPE ratio improved to 5.7% from 5.9% at year-end 2020. Another important element I would like to highlight is the exposure in moratoria. At year-end 2020, we had EUR 164 million. At the end of the first quarter, this figure basically remained stable at EUR 165 million. One has to take into account that there was a prolongation or an introduction of a new moratoria in Serbia, which had an impact of roughly EUR 30 million on the overall exposure under moratoria in the first quarter of 2021. Something we should all be, and we are very proud of, is that overall portfolio behavior remains incredibly stable. Over 93% of our portfolio remains without any overuse, so current with all payment requirements. In terms of the coverage ratio, the provision coverage, we ended the year with 73.6%. This was actually slightly improving to 75.6% at the end of the first quarter. The third block at the bottom of the slide with regards to funding, liquidity, and capital. The funding situation remained incredibly solid. We have EUR 4.75 billion of customer deposits, and then LCR still above the 200% mark at circa 204%. With regards to the capital ratios, and please bear in mind that the dividend payments, not just the first unconditional tranche that was paid yesterday, but also the conditional part of the EUR 39.6 million, which I will highlight a bit later, some details on. These dividend figures have already been deducted. The profit for the first quarter has not been incorporated yet into the capital ratios, Addiko stood with a CET1 ratio of 20%, and IFRS 9 fully loaded, still 19.2% at the end of the first quarter. I kindly ask you to turn to page five, please. Here, a brief update. As you are most probably all aware, we have successfully completed the AGM on the 26th of April. It was a virtual AGM. The shareholder participation has been very strong. We had over 77% of the outstanding shares actually being represented and voting at the AGM. All the resolutions, whether proposed by the management board or by the supervisory board, have been approved and adopted. Peter van der Grosse has been elected to replace Herbert Juranek, who became the CEO of the bank and has stepped down from his role as Deputy Chairman of the Supervisory Board at the end of the AGM. Peter van der Grosse has been elected to replace him in our supervisory board. With regards to dividends. The first tranche I have already elaborated on. That was the maximum that was allowed under the current ECB guidance to be paid, and that we have completed and executed. With regards to tranche two, conditional one, I would like to highlight that it's conditional only upon that neither recommendation of the ECB would, in the company's view, conflict with the distribution of dividends, nor a legally mandatory distribution restriction is effective or applicable. The AGM has actually authorized the management board of the bank to actually pay out as soon as the ECB guidance is revised or lifted. With regards to the guidance going forward, we have already provided at the beginning of February, the midterm guidance, where we have guided towards an annual dividend payout of circa 60% of net profit. This does not include any potential payout after the completion of the SREP bid for this year, and potentially having the accessibility of excess capital, which was not included in the five-year plan that we have disclosed in the beginning of February. Last point on this slide with regards to the environment. I don't think I need to highlight to anyone how challenging the environment remains. We are still calculating and expecting a V-shaped recovery in the second half of 2021, we are actually waiting for the latest economic forecast from the Vienna Institute in the coming weeks. Once we implement those into our forecast for the year-end, I'm sure in future earnings calls, further details will also be shared with you. With regards to slide six. Thank you. It's a usual slide, with the tachometer, where we actually indicate what part of our overall gross performing loan book is in the focus segments. By the end of the first quarter 2021, we have reached 66%. We have guided towards, and this you see on the left-hand side of the chart, to the midterm target of 90%. I remain confident that once the economic situation stabilizes, we will be back to making bigger improvements in terms of percentages than what we have seen in 2020 and in the first quarter 2021, with regards to the focus book gaining its share in the overall gross performing loan book of Addiko. On the right-hand side of the chart, you see that the gross yield per segment, despite of the ample liquidity available in the region, we have actually maintained the yields relatively stable, slightly decreasing in consumer, while slightly improving in SME in the first quarter compared to year-end 2020. On slide seven, I would just like to highlight to you, on the top left-hand side of the slide, the SME and consumer, our focus segments, how the portfolio have developed in the first quarter versus the first quarter 2020 and year-end 2020. You see that in consumer, compared to the year-end 2020, the portfolio has actually remained stable. We are lower by EUR 6 million. While in SME, as well, we have maintained a relatively stable part despite of all the repayments of just over EUR 1,055 million, in terms of the end of quarter one 2021. One interesting element is the new business year to date. This is in the bubbles between the two bar charts. You see that we had in our focus segments, roughly EUR 800 million, EUR 797 million, new disbursements in 2020. We had EUR 238 million new disbursements in the first quarter 2020. We have basically replicated that, and please bear in mind that in the first quarter 2020, Corona actually stopped and we have tightened the underwriting criteria in the second or third week of March 2020. That was actually a relatively strong start of the year that we were reporting on back then in the first quarter 2020. We have almost matched that performance in terms of new disbursements in the first quarter 2021 at EUR 229 million of new disbursements. Last message on this slide before I hand over to Ganesh for the next two slides, is the non-focus portfolio development. You see that basically, we had a decrease compared to year-end 2020 of circa EUR 30 million, or 27 million EUR to be exact. Of the large corporate and public finance portfolios, we had roughly EUR 30 million, 29 million to be an exact million EUR decrease in our portfolio in mortgages. This was basically because we had no new business in mortgage and public. We had some short-term new disbursements in large corporates, this is really short-term loans trying to make use of the ample liquidity that the group has and to ensure adequate risk-reward profile in our portfolio. In general, according to the repayment schedule and the contracted repayments, the portfolios in the non-focus have continued to shrink. Without further ado, I kindly ask you to follow Ganesh's guidance on the next two slides. Thanks, Csongor. Good afternoon, everyone. I'm glad to share some insights around business growth and our digital capabilities. Please let me start by highlighting that our new business growth in both consumer and SME has recovered well from the lows during the pandemic, and have achieved new disbursement levels of 92% of Q1 2020 in consumer, and 101% in SME, despite impacted by partial or full lockdowns in many of our markets during Q1 2021. Our performance shows that our business model is not only resilient, but also has adapted to the customer needs during the pandemic. On page eight, our key strategic business pillars to accelerate incremental profitable growth in our focus areas, consumer and SME, has remained consistent. Our first pillar focuses on driving sustainable core business growth through alternative channels with white label partnerships, point of sale lending, Bank@Work, and remote advisory channels, with higher risk-adjusted margins achieved through risk-adjusted pricing. We are seeing 29% of new customers' loans from consumer are generated in the alternative channel Bank@Work in Q1 2021. The second pillar is about expanding our business through innovative digital solutions and provide customers the best-in-class experience, convenience, and speed, and doubling our digital business. Our digital contribution of 34% of consumer loans, driven by Web loan launches in Serbia and Slovenia, and 26% contribution in SME loans in Q1 2021, is a clear testimonial of our progress in digitalization. The final pillar focuses on increasing operational efficiencies and driving cost reductions through branch transformations, better process digitalization, and faster time to decision and time to cash processes, while remaining prudent with our risk appetite, reflecting the targeted costs of risk evolution. In quarter one 2021, we have also progressed well in ongoing branch transformations involving an enhanced customer relations roles of all branch staff to sell loans and transforming 10 branches into four hubs. This is supported by resizing of branches and our workforce to increase branch productivity. We remain convinced that all these strategic pillars will serve our customers in better way and will continue to transform our business model to drive profitable organic growth in the focus areas for the group. Moving on to page nine. This page builds upon how our enhanced digital loan capabilities, supported by a strong risk engine and mBanking capabilities, have evolved and are already acting as a business multipliers, transforming our business model in consumer and SME during the first quarter of 2021. On the top left side of page, our customers already today allow our end-to-end online solutions of consumer cash loans with the virtual branch experience in Croatia. We would further enhance our loan risk engine with online PSD2 supported income verifications. After a successful launch of web loan application in the first quarter, we can originate digitally initiated loans followed by initiate offers for customers in Serbia and Slovenia. We are planning to launch it in all countries where regulatory restrictions, at least for the time being, do not allow our end-to-end digital processing and require final physical signature by customers in a branch. We will extend our mBanking solution in Croatia and Slovenia with mLoans, which is a quick way of sending simple end-to-end cash loan solutions for existing customers via the app, which has already proven to be successful in Serbia. Furthermore, we are working on launching a consumer point of sale product throughout our region with new partners this year, which would enable us to generate customer acquisition more cost-efficient way and to provide upselling opportunities based upon data-driven customer profiles and their behavior. Our existing open API banking infrastructure capabilities will enable us to create white label loan solution for partners, and thereby enable them to offer loans to their customers in the next years, starting already this year. On the SME front, our simple and guaranteed platform, which has significantly reduced time to decision, has already been further enhanced with functionalities such as loan prolongations and multipurpose frames during first quarter 2021. We have plans to further automate and integrate credit bureau and risk engine and provide a tailored solution to our customers. To summarize, digital transformation is more than important than ever, especially in the times of lockdowns and economic uncertainties. We are therefore accelerating our efforts to improve our digital value proposition, and this is key to continue providing strong differentiation to the other players that are active in our region. Please let me hand over to Markus. Thank you very much, Ganesh. This is my last time to present to you the financial and risk update for Addiko Group, and I'm very happy to report to you for the third quarter in a row, a very strong result, which actually is significantly better than our initial expectations assumed in our business plan for the first quarter 2021, considering the crisis we are currently in. Moving to slide 11, where we see an operating profit, which is reported with EUR 11.3 million for the first quarter 2021, which is EUR 3 million lower than in the first quarter 2020. Recent results needs to be considered under different circumstances. Today, the loan book is EUR 300 million lower than one year ago, caused by the pandemic crisis, where we decided during 2020 to apply a prudent risk management approach to new business, resulting in lower assumed growth in our focus segments. By non-focus segments, shrink according to plan and even faster. Net banking income, the result is with 6.4% lower compared to the first quarter 2020, while in line with our planning assumptions, where a lower interest income base has also been partly mitigated by lower costs for interest expenses. The first quarter 2021 operational expenses are in line with internal assumptions as well. Actually, even better, since additional costs related to recent management changes are already fully covered. Risk costs compared to the first quarter 2020 are significantly lower, since the first quarter 2020 was also impacted by an IFRS 9 macro parameter post-model overlay of EUR 13.6 million. This all results in EUR 5 million profit after tax in the first quarter 2021, while maintaining a very strong capital position of 20% on a transitional and 19.2% on a fully loaded IFRS 9 basis for CET1 and total capital, where intended dividend payments are already fully deducted. Let's move to slide 12, starting with the net interest income on the top left. While the lower loan book with EUR 300 million compared to the pre-crisis Q1 2020 is causing lower interest income, the resulting excess liquidity from reducing the non-focus portfolio, which couldn't be invested to that level we were planning into focus during the crisis, had to be invested in either lower-rated, high-quality securities or even kept with national banks on negative rates, causing that the net interest margin went down year on year by 12 basis points, partly already compensated by higher share of overnight compared to term deposits. Net fee and commission income is still partly impacted by the crisis, but also here, fully in line with internal expectations, reflecting the gradual ramp-up of financings, where we, close to 97%, repeated the result from the first quarter 2021. The transactions are still a little bit lower than we are hoping for, but we are expecting that this is also being ramped up in the following quarters. The OPEX was already mentioned, where savings on advisory costs on traveling and marketing compensated to be in line with expected results. The credit loss expenses comparing Q1 2021 with the first quarter in 2020, which itself was impacted by an IFRS 9 one-off, on a like-for-like basis, is with EUR 4.1 million by EUR 3.3 million higher than the first quarter 2020, mainly caused by the consumer segment, which I will explain in detail on later slides. Overall, the cost of risk is significantly better than we were planning for the first quarter 2021, of course, positively influenced by state subsidies, moratoria, and internal restructuring. On slide 13, you see a very robust asset quality. Overall, 93% of the portfolio is without delays on a very stable level. Except for consumers, where we see a deterioration in the first bucket, 1-30 days past due, while all other buckets are stable or even improved, where, of course, moratoria and internal restructuring helped a lot. On slide 14, you see a stock of EUR 165 million remaining moratoria, which is 2.4% of the total gross exposure, which is stable compared to the fourth quarter 2020. While number of clients with moratoria increased by circa net 900 compared to the last quarter, caused by newly introduced moratoria in Serbia for consumers. The highest share of moratoria is still with SME and large corporates, and in Slovenia. On slide 15, the moratoria development is provided, showing on the right-hand side the EUR 30 million increase from the newly introduced moratoria in Serbia, and provides on the left-hand side the expected developments for the second and third quarter of the current stock of EUR 165 million moratoria, not considering potential new moratoria, which might be in discussion in Serbia, Montenegro, and partially also in Slovenia. Besides being closely in touch with clients still in moratoria, and in defining right measures post-moratoria, we very carefully monitor the development of our portfolio based on the moratoria status. On slide 16, you see that out of total 6.9 billion gross exposure, the portfolio of clients in post-moratoria status consists of EUR 852 million end of the first quarter 2021, of which 88% kept a stable days past due status, considering the migration period from the end of the first quarter 2020 to the end of the first quarter 2021. For 12 months, 5% improved and 7% worsened its days past due status, which is EUR 56 million in absolute amount. Comparing this on the right-hand side with the post-moratoria stock end of November 2020, which was EUR 935 million, and the ratio of 8.3% of clients worsened their days past due status over eight months from the end of March 2020 to the end of November 2020. The ratio we have currently of 6.6% end of the first quarter with a 12-month migration period can be considered as very positive and promising. Comparing further the post-moratoria sub-portfolio with the non-moratoria portfolio, which is shown on the right-hand side on the bottom, where the ratio of clients which worsened their days past due over the last 12 months is on a significant lower level with 2.6%. It is obvious that the focus has to be continuously on the performance of clients in post-moratoria status, which became our daily bread and butter. On slide 17, it becomes even more detailed in looking into the business segment. What are the root causes of certain developments? The slide shows for the total portfolio, for the consumer segment, for the SME segment, and for the non-focus segments, separately for each of their sub-portfolios, which are the clients in moratoria, the clients in post-moratoria, and the clients without moratoria. First, their distribution into IFRS 9 stages, secondly, their delinquency development over the last 12 months. Considering first the total portfolio, which is the first row in the chart. Out of the portfolio of clients in moratoria, the share of clients in stage two under IFRS 9 is 40%. Out of all clients in post-moratoria, the share of clients in stage two under IFRS 9 is 23%, significantly higher comparing this with the non-moratoria clients, where the share of IFRS clients in stage two is at 9%. Only for the post-moratoria sub-portfolio, the ratio of clients which worsened their days past due over the last 12 months is with 7%, by 2% higher than the ratio of clients which improved their days past due status. For all other sub-portfolios, like moratoria and non-moratoria, the ratios of worsened versus improved days past due is very balanced. This is slightly different for the consumer segment, where we have a similar distribution over the IFRS 9 stages, like for the total portfolio, while the ratios of clients which worsened their days past due status over past 12 months is significantly higher than those which improved their days past due status. For post-moratoria clients, we have 13% worsened versus 4% improved, and for moratoria clients, we have 10% worsened versus 6% improved. For the SME clients, a significant higher share of stage two clients under IFRS 9, with 55%, is observed for the moratoria sub-portfolio, but also for the post-moratoria clients with 24%, which also explains that moratoria and internal restructurings in the SME segment helped to keep the days past due migrations on a very low level. Indicating on the other end also, that certain impacts from the crisis are potentially still outstanding. Nevertheless, all the developments are so far much better than expected. Being a proof that measures taken are very effective to maintain the asset quality on a high level. Slide 18 confirms the development already outlined, where stage three, the non-performing exposure clients, improved further down by EUR 14 million to EUR 230 million, with a coverage of 76% and even 120% considering the collaterals. The IFRS 9 stage portfolio slightly improved. Even considering that regulators introduced for the consumer segment a very conservative approach, which is to be reflected in early warning systems linked to stage 2 migrations. On the right-hand side, you see the performing loan expected credit loss coverages, which remain stable with 2.1%, with a level of 10.9% for stage 2 clients and even higher coverages for clients in moratoria. Covering expected loss assumptions over the next 12 months respective lifetime. Slide 19 provides the Q1 2021 risk costs of EUR 4.1 million, which on a like for like comparison to the first quarter 2020, which is EUR 3.3 million higher, as I explained, impacted by a one-off, which is mainly coming from the consumer segment, while SME and non-focus segments even performed similar or better, considering that further provisions have been released. Although the cost of risk with 12 basis points on net loans is significantly better in the first quarter of 2021 than expected, it still doesn't allow, for the time being, to conclude that the pandemic crisis impact will be much lower than the guidance for the full year we already provided. Because the dynamics of the post-moratoria behavior will be fully visible only in the second half of 2021, and even might last partly into 2022. Considering also, on the other hand, that the recovery of the economy might be slightly delayed or by new lockdowns, moratoria, etc. I like to finalize the risk and finance update with slide 20, showing a very strong capital position of 19.2 on a fully loaded and 20% on a transitional IFRS 9 basis for CET1, as well as for the total capital. This is a very stable risk-weighted asset development. Within these ratios, intended dividend payments are already fully deducted. With that one, I would like to hand over to Csongor Németh. Thank you, Markus. As a wrap-up before we go to questions, we just wanted to highlight three important boxes again on slide 22. Firstly, that we reiterate the 2021 outlook that we have been, both Markus and myself, referring to, that we disclosed beginning of February. Let me just repeat it for the sake of the record. Gross performing loans at 3.5 billion, circa 3.5 billion at year-end 2021, with circa five or over 5% growth intended in our focus segments. Net banking income remaining stable at the circa EUR 235 million that we had in 2020. Our operating expenses will be below EUR 174 million. Please bear in mind when you compare apples to apples, that this includes a circa EUR 9 million cost that we expect for the bonus pool of the variable salary to be paid for 2021 for the staff who work here with Addiko, as well as the AQR costs that are expected once the actual process, hopefully in the coming weeks, is initiated by the ECB. With regards to CET1 ratio, the fourth arrow in the first box, we remain committed to stay above the 18.6% on a transitional basis. With regards to the credit loss expenses, I think Markus has once again provided ample details why we believe that we will be low the 1% on net average loans and advances to customers for the year 2021. Now, with regards to the next steps, these four bullet points have, of course, been aligned with Herbert as well, that the task number 1 is to complete the new setup of the management team. He alluded towards that he will keep the markets up to date with regards to development. The second one is setting up programs and actions to accelerate the transformation of the banking group, which both Markus and myself will be eagerly observing as shareholders of the group. Of course, executing and successfully executing and closing the AQR process once it has been officially initiated, remains a very high priority and has to remain a high priority for the management board and the supervisory board in order to ensure the much sought-after level playing field with regards to our Addiko's capital ratios. Obviously, with regards to strengthening the digital propositions that were also highlighted in today's presentation for growth, as well as further optimizations of the costs. The half-year results call is scheduled for the 11th of August, exactly at 2:00 P.M. Before I hand over and we go to questions, may I just thank four different stakeholders for their support over the last two years since we have been a public entity. First, thank you, and this goes to all the analysts who have covered and will continue to cover Addiko. Thank you. I make this point on purpose before your questions, hopefully, having an influence on the toughness of your questions. I would like to thank Ana Marshall, Simon Nellis, Mladen Dodig, Hugo, Jovan Sikimić, and David for doing such a professional job and continuing to challenge us as a board and highlighting where we should be focusing on with our efforts. The second group is clearly to the investors who remained through thick and thin, through a very challenging 2020, have remained trustful in Addiko Bank and in our stories, and have supported the efforts of not just the management board, but everyone at Team Addiko Bank. The third one goes to specifically the unsung heroes, Edgar and Consti, who have once again proved that all the night shifts trying to put together the best-in-class presentation for a Central European banking group, a focus group, has been not in vain, and it's highly appreciated, because without you guys, we would not have been able to disclose to the level of professionalism that hopefully we have achieved. Last but not least, everyone at Team Addiko. These results, we are presenting, the three of us, but it's 2,643 people who have been through the challenges of home offices, all the pandemic macroeconomic toughness and problems, have proven once again that they believe in the story and they work very hard to produce the results that we are very proud to present to you. I thank you very much for your attention, and of course, we remain available for questions. Thank you. We will now begin the question and answer session. If you are on the conference call an your have a question to our speakers please dial zero and one then one on your telephone keypad. Once you name has been announced to answer the question. If your question is answered before you speak you can press zero and two, If you are using speaker equipment please use the handset before asking your question. If you participate in the audio webcast, you can write questions via the Q&A function of the webcast by pressing the question mark button. One moment please for the first question. We've received the first question. It is from Anna Marshall of Goldman Sachs. The line is open. Please go ahead. Good afternoon. Thank you for the presentation and for the kind comments. Two questions from me, please. Firstly, on asset quality. Given what you mentioned with regards to moratoria potentially being extended and seeing the dynamics so far, when would you expect NPE ratio basically to increase? When would you see the peak? Could it come only in 2022? The second question is on the core income, and perhaps specifically on NII. In terms of the drivers of the trajectory in the remaining quarters of the year, is there anything else on top of such drivers as, say, loan volumes picking up even more, yield trends, macro recovery? For example, do you have any scope to optimize the interest expense further, or is there anything else, basically? Thank you. Anna, I would start, Markus speaking, with the first question related to the asset quality. This is a very good question, and it's not so easy to answer. The reason is there are many factors which are impacting the behavior of the portfolio. On one hand side, these moratoria, state subsidies, whatever we see here, are very helpful to at least overcome the situation and help a certain part of the portfolio. As long as they are supported from that side, we are on a safe side that there are no migrations, and they prevent also migrating. We pick then after these official moratoria are expiring internal approaches for those clients only where we believe they need a bit of more time than what the moratoria provided to make sure that we are really having the best balanced approach. We are not supporting clients where we see already there is no chance. That's where This is also regulatory required, that is the unlikelihood to pay, where we are moving them very quick into the non-performing. That's why I believe in that now it starts in the second quarter. You have seen the remaining moratoria, and it depends, this is the second factor. Will there be new moratoria introduced, yes or no? We hear certain rumors from here and there, from Slovenia was the last one what we heard. It depends a lot on if they will come further. This is more a delaying process. It helps to a certain extent, but also delaying certain impacts. What we see also, and that's in the internal assessment, what we are doing and the way how we are approaching those clients overall, being in very close contact with them, especially on the corporate side, but also on the consumer side. Why on the consumer side, you cannot so individually manage it like on the corporate side. That's why also the impact is already more visible on the consumer side. Coming back to your question with the peak, as I said, the full impact will be visible in the second half of 2021. We will see, I believe, in already certain more indications now in the months May, June. That's what I believe in. Really to assess it 100% is the second half of the year, which also under the assumption that the V shape will hold. That's the next one, where the macro assumptions we will get very soon. First indications tell me or tell us that the GDP growth, what was expected originally in late months of last year, will not be to that same level. It will be a little bit lower, which then comes, and to answer this also, how we model this into our IFRS 9 into two components. As I explained it also last time, there is an operational cost impact due to the migrations I was explaining before, but you have also a release impact coming out of the changes from the macro in the performing loan portfolio. When this level of macroeconomic improvement is not on the same level like it was predicted by the end of last year, this positive impact will not be at the same magnitude. It will be a little bit less. On the other hand, the operational impacted cost of risk is performing better, will be lower. My guess is, and my hope is that we are ending up better than currently even the guidance is. For the time being, it would be too brave to correct this guidance. We still need to get a bit more data points from the second quarter and then maybe even the third quarter. I hope it answer your question. Now with regards to the interest income and interest expense. If I kindly ask you to turn your attention to page 31 or slide 31 in the presentation, it's in the appendix or the additional materials where you see the gross yield per quarter for the two focus segments as well as the non-focus segments on the right-hand side of the chart. In terms of the consumer segment, maybe Ganesh can also then add a word. We have actually introduced some approach with regards to the risk-based pricing approach. We are confident that the drop in the pricing, in the yields of the consumer in the new business dropping from 7.3% to 6.8% is actually justified because we are underwriting better quality customers. With regards to the SME, you see that there was actually a good improvement from 2.9% to 3.3% in terms of the yield of the new business. That is basically because we have the new platform, and it's basically digitalizing the process as much as possible, makes it less price sensitive. We remain confident once the growth is coming back to the market, we have the capabilities to actually make up for some of the ground lost in terms of NII compared to the first quarter 2020. That's with regards to the NII. With regards to the interest expenses, I'm careful with that one because the last three or four quarters, we've said that we believe it is bottoming out with regards to how much further gain there can be in terms of having less interest expenses. Now with this EUR 4.9 million that we had in the first quarter 2020, I do believe this is roughly the bottom. The main reason for that is because the share of a vista deposits in the overall deposit volume has to be maintained at an adequate level as well to ensure the sustainability of the funding base going forward. These deposits have proven to be incredibly sticky over the last years, but at the same time, having an adequate share of term deposits is something that we also continue to focus on. I hope we have answered your question enough. Yes. Thank you so much. Thank you. Now we go to the next question. It is from Jovan Sikimić of Raiffeisen Bank. The line is now open. You can go ahead. Hi, Markus, Csongor. Thanks for the call and for all the previous calls. I wish you all the best for your future. I would have two, three questions, if I may. First of all, on risk costs. In the first quarter, the consumer segment brought a bit higher cost of risk. It is above the average of last year. I suppose it has to do with this worsened overviews that I think Markus explained before. Just maybe if you can explain it once again, how would you see it, let's say, going forward? Second of all, there was, at least according to presentation, the consumer loans have lower spreads in the first quarter, in SME it was higher. Does it have to do with the change of disclosure or what's behind? The last one is on fees. If you compare with other peers, Addiko has been a kind of a bit lagging behind. Of course, you cannot rely on securities asset management segments. What's your strategy going forward? Do you plan to, I don't know, change the fee tables in order to compensate for NII or what's the strategy, at least in the meantime? Thanks a lot, and all the best once again. Thank you very much also for the wishes, and thanks for your questions. I'm starting with the asset quality related, the risk cost related one in the consumer segment. We have it also on slide 19 in the attachment, where you have the consumer business. The reasoning of this, you're right, it's related to the bucket one to 30 days, because that has an impact on our behavior scoring, which is normal and natural everywhere. This is causing also migrations from stage one into stage three. We don't see that much migrations to the non-performing exposures, which is a very good signal. Our early collections is still working very nicely. That's why we hope even that with this increase, even this one is better than we were actually expecting. That the power we have there in the collections is continuing, that we overall over the following quarters, that we can confirm this performance and which will help us then also maybe to beat the year even more than, or that we are beating the guidance for the full year. As I said, for the time being, we would like to understand a bit more for the next two to three months, and maybe within also the third quarter, how these migrations are continuing, and if we can keep on performing with the same quality as we have done so far. If I can just answer the second question. Thank you very much for the question. On the consumer side, as also Csongor pointed out, we have launched risk-based pricing in multiple markets. We are attracting a better quality customers, therefore, also has an impact on the yield overall. I believe it's the right balance we have to have a sustainable business growth going forward. On the fees, basically, we are looking at various strategies to actually, first of all, accelerate our packages, our primary packages and also mixed packages overall on the current accounts. That's just to increase our N CI. Also we are focused on looking at also transactional basis, where the fees can be increased and wherever it's applicable to be increased, we are looking at all the options we have. Hope that answers. Okay, appreciate. Thanks a lot. Thank you. Thank you. The next question is from David Lojkasek of WOOD & Company. Your line is now open. Please go ahead. Thank you very much. Thank you for the presentation and for the kind words as well. My question is regarding deposits. I would like to ask because I see around slide 33, I see the direct deposit or the cost of funding decreased quite substantially. My question is, where do you think your overall cost of funding can go over this year and potentially going forward as well? Sorry. What would be your outlook for NIM in terms of, or seeing this, what would be your outlook for NIM for this year? Thank you very much. Okay. May I take the questions? Thanks, David. It's Csongor. You rightly pointed out on slide 33, on the right-hand side, you see that basically the largest decrease in terms of cost of funding came from the Austrian and German direct deposits, where we have monitored the situation and have continuously reduced it basically month by month or every second month, the rates, while observing whether there is any unexpected outflows, because we cut the rates further. There we have closed the first quarter at an average of 37 basis points in terms of the funding cost. My expectation is, with the ample liquidity that is available in the German and Austrian markets, there could be further reduction of a few basis points, but nothing dramatic I would foresee. Point one. Point two, with regards to the network and the deposits, that's where the share between the a vista and the term deposits balance comes into the equation. My expectation is that this circa 30 basis points is something that we will also see in the quarters going forward. I do not expect a radical decrease, neither an increase in this regard. Maybe a few basis points, but nothing else. With regards to the NIM, we do not provide the guidance for five years, but we do not provide short-term, year-end financial or NIM figures in terms of the short-term guidance. I hope for your understanding. Understood. Thank you very much. Also, good luck to you and Markus in your future endeavors as well. Much appreciated. Thank you. Thank you. The next question is from Mladen Dodig of Erste Group. Your line is now open. Please go ahead. Good afternoon, gentlemen. Thank you once again for the call, for the performance. Thank you for the kind words towards analysts. I wish you, of course, Csongor and Markus, all the best in the future roles you might assume. My questions got answered, actually. I just wanted maybe to confirm also to myself. Would it be fair to assume that, for example, on the fee and commission side, because we have seen a lot of mortgage lending demand across the region, with Addiko being only decreasing that, would that be also part of the missing result that could have been if you will be still pursuing the mortgage lending rate? In my view, that's difficult. Hi, Mladen, thanks for the kind words on your side as well. I think that's a theoretical exercise. What would, if it would be mortgage? I think most of the fees that are missing, we've seen that it is related to missing transactions and new volumes in terms of the guarantees being far less in demand than they have been in pre-COVID crisis in terms of the SME. With regards to bancassurance business and the new loan volumes that drive the bancassurance fees that we have generated in the past, that is also something that is missing. The new board, I have no information on them trying to introduce or revise the new strategy in terms of for the banking group. Herbert, I think, made it very clear in all his statements that it's about acceleration of the unsecured consumer and unsecured working capital SME financing. That will remain in the focus of Addiko. With regards to fees related to mortgages, that's not something that we have contemplated. Okay. Thank you very much. Once again, all the best. Thank you. Stay well. You also. Thank you. At the moment, there are no further questions. As a reminder, to ask a question, you would have to press zero and one. We've received another question of Simon Nellis of Citi. Your line is now open. Please go ahead. Hi, gentlemen. I couldn't leave without asking a question. Hope you're all well. My question would just be on the dividend policy going forward. I think you said that you're planning to pay out 60% of earnings as an ongoing payout. Is that the new dividend policy? I think at that level, you would still have potentially significant excess capital, particularly if your P2G was lowered. Can you just maybe elaborate on how you're thinking about dividend policy? That would be my first question. Main question, actually. Thanks, Simon. Basically, the guidance we have provided with regards to that's related to 60% of profits. With regards to the excess capital, we have not included any figure because we don't know the outcome of the SREP and the AQR. This figure could, Andrew, I think your analysis is absolutely right. If one assumes a level playing field in terms of the P2G of 4% being lower than even the P2R of 4.1% that we have received back in October 2019 from then the Austrian Financial Market Authority and will be reviewed by the ECB this year once they have completed their SREP and AQR processes. The group could be with excess capital, which then, as a shareholder, I will trust the management board at that time will decide to do the honorable thing and return value to the shareholders. Okay. Basically, the message is a 60% kind of ongoing payout ratio, and then once the regulatory issues become clear, maybe pay out some excess capital. Okay. That would be a right understanding in my view. Then just on slide 49, I see there's still kind of ongoing Swiss franc litigation potential problems. Maybe not litigation, but legal new laws in Slovenia. Can you quantify what the potential impact of this Slovenian draft legislation would be? No, we have not. If you decide. Sorry. In terms of the legislation is basically in such a draft form. We have not been able to quantify it. You see that the development of the overall Swiss franc portfolio is down to EUR 103 million. This is on slide 49, you were, Simon, rightly referring to, EUR 103 million, of which only EUR 22 million is basically Swiss franc related NPEs. In Slovenia, this sort of draft legislation has been talked about for a number of years and cases and kind of, in my view, common sense always prevailed. For our understanding right now, the draft is still at a very early stage and is very unclear in terms of calculating any potential impact. Okay. That's clear. Yeah. All the best to both of you going forward. Thank you. Thanks. Stay well, Simon. Thanks. Take care. Bye-bye. Thank you. We now receive the follow-up question of David from WOOD. The line is now open. Thank you. I'm sorry, this is my last question. On slide 31, I noticed that, in consumer, the yields of new business loans decreased some 50 basis points, while in SMEs, it has increased from 40 basis points, if I see well. Could you probably talk about it a little bit and tell us what's behind that? Thank you. Hi. Thanks for your question. Basically, on the consumer segment side, as I mentioned also before, we are launching, we are accelerating digital channels. There also, we have launched risk-based pricing. We are attracting a better customer segment to have a more sustainable and also risk-prudent portfolio insight. That is the strategic update, what we have. Going forward, we believe it's more sustainable as we do. That's basically why you see the yield difference there. Okay, understood. Thank you. Thank you. As there are no further questions, I would like to come back to you. Thanks, operator. We have a question on the webcast from Thibault Nardin at Wellington. Hi, team. Congrats on a great job last year and year to date. Quick question. 20% of the balance sheet is now in cash, another 20% in securities. Deposits are still growing, so excess liquidity will only grow. In light of the changes in yield curves globally, are there any opportunities to redeploy that excess liquidity at better yields? What is the current yield on your cash balance? Thanks, and hope to see you soon. Well, I'll try and answer Thibault Nardin's question. Markus, jump in, please, if I leave anything out. Thanks for the kind words, Thibault. As a large shareholder, your compliments are much appreciated. With regards to the questions themselves, so the yield on cash is somewhere between zero and 10 basis points, and - 10 basis points. Sorry. 0 and -10 basis points, depending on, of course, the country specifics. With regards to the overall yield on financial assets, it's basically bonds and cash included, is somewhere in between zero and 50 basis points, is the answer to what are the yields. Are there opportunities to redeploy that excess liquidity at better yields? Well, the market comes back, and we can go back to the over or double-digit growth in terms of our focus segments. I think that's the best use of the excess liquidity. We have introduced where the local legislation allows also charging fees for certain deposits above a certain amount, and to, not our great surprise, but we have not seen any deterioration in terms of the values, or in terms of the volumes, it was more remaining stable as customers are basically keeping the money and do not seem to mind even paying fees for it. I hope we have answered your question, Thibault, and knowing you in person, I think you would ask a follow-up question if we didn't. Good. We have another question from Brad Lindenbaum. What are the plans to lower costs? Does Addiko plan to change its headquarter or branch footprint? I think that's a question that would be best answered at the next earnings call if it's asked, rather than us speculating on that. Unless Ganesh, you would like to add something. No, I think, going forward, we'll come back to the next earnings call. All right. Operator, there's no more question in the webcast. We haven't received any further questions via the telephone lines. If there are no further questions, I'm just waiting for 20 seconds if anyone else wants to still ask. If not, then I think we have said all the nice words to each other, that at least on our side, we wanted to. Thanks very much for your attention today. Much appreciated. Oh, sorry. There is one more question? Oh, there is one more question? One more question from Brad. Are there plans to divest the mortgage portfolio? We have looked at that pre-corona in terms of accelerating the exit of the mortgage portfolio. Even at that time, it was challenging to get adequate return with regards to compensating the loss of income that we had, and the question was what to do with the excess liquidity and the decrease in the RWAs that we would immediately realize by exiting such portfolio. At that time, it just didn't make sense, so we actually looked at it very thoroughly, and then we stopped the initiative. In corona, not many people were knocking on our door with regards to their interest in buying mortgage portfolios, or those who were, I think were definitely not considering a win-win situation that would have been worthwhile also for Addiko to consider. Hence, as the situation normalizes and the growth in the focus segments picks up, that is a very straightforward way of creating, if needed, capital RWA and liquidity to finance the growth in the focus. No more questions. I hope we have answered Brad's question. If it's no more questions, then thanks very much. Stay well, stay healthy, and thank you for your trust in Addiko and your attention today. Bye. Ladies and gentlemen, thank you for your attendance. This call has been concluded.