The conference is now being recorded. Good morning, ladies and gentlemen, and welcome to the Commerzbank AG's conference call. Please note that this call is being transmitted as well as recorded by audio webcast and will subsequently be made available for replay on the internet. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions following Manfred Knof and Bettina Orlopp's presentation. Let me now turn the floor over to our CEO, Manfred Knof. Please go ahead. Good morning and welcome to our earnings call for the third quarter of 2021. We have two key messages today. One, we lift our net profit guidance for 2021 into positive territory. Two, our transformation is fully on track. This is based on good progress and performance in the third quarter, and we are confident to reach or exceed our targets for 2021. Let's look at the key dimensions on page two. Most important from a strategic perspective is that we are on track with our transformation milestones. This includes major steps in the setup of our business model, as well as our redundancy program, on which I will touch in a few minutes. Our transformation KPIs develop largely according to our plan, in some cases, even better. Good example for outperformance is the ongoing increase in business volume and especially in securities with private customers. Financially, the third quarter provided us with some tailwind for the remainder of the year. Revenues after nine months exceeds the previous year by 3.3% and will exceed 2021 also on a full year basis. Furthermore, our loan book has proven to be very resilient in the pandemic. Especially our German Mittelstand clients have so far navigated very well through the challenging quarters. Thus, we can improve our full year guidance for 2021 to less than EUR 700 million. As a result, and with costs in line with our guidance, the operating profit already exceeds EUR 1 billion after nine months of the year. This makes us confident to guide for a full year positive net result despite the restructuring charges for the transformation. Last but not least, our capital ratio has also developed better than planned and stands at 13.5%, a level that we are expecting to be maintained at the end of the year. Overall, this is a positive development that provides us with further headroom for the further transformation. Now let's take a look at the strategic transformation highlights of the third quarter. In the last weeks, I had many meetings with corporate clients, and I'm very happy about their positive feedback as banking partner, which is not self-evident in the middle of such a large transformation. The positive response is also reflected in the fact that corporates in Germany have confirmed Commerzbank as the leading trade finance bank with a market penetration of 81%. This is a further proof of our high-quality client service and long-standing commitment to innovation and excellence within the trade finance space. A good example for innovation is the recently launched Marco Polo payment commitment, which enables trade finance to get digital on the basis of distributed ledger technology. In the private customer divisions, we have launched the first stage of our centralized advisory centers. Three centers in Germany are taking over clients from closed branches. With excellent service and advisory skills, we can effectively limit customer churn. We've also, again, made good progress in the digitalization of the bank. For corporate clients, we have launched a digital signature which makes banking much easier and convenient. On sustainability, I would like to highlight that green mortgages account for already more than 25% of new business. This fits perfectly to the ambition that we discussed at our first sustainability dialogue, which took place in September and addressed the most important topics of our sustainability strategy. One of the key messages was that until next August, we will define concrete CO2 reduction targets for the relevant sectors within our loan and investment portfolio. These targets will all be based on the guidelines of the Science Based Targets initiative. Regarding profitability, I have picked deposits as a very good example for our management focus. Our strategy to put profitability before growth bears fruits. Revenues from deposits have stabilized due to active deposit management and pricing. Let's move on with the progress in our redundancy program on slide four. Core of our strategic transformation is a leaner setup with 20% lower costs. This requires 10,000 job cuts that had to be negotiated with the employee representatives, and we achieved very good results in a short time frame. In May, we already agreed on the framework for the redundancy program. In July, we kicked off a voluntary redundancy program, and as of now, we are very close to the finalization of all detailed redundancy agreements for all departments of the bank. In parallel, and also due to the voluntary program, we already have ensured and contracted more than half of the gross FTE reduction. 1,500 FTEs are already off payroll. A further 2,100 are contracted for exit in the time period until 2024. The voluntary program has added another 1,600 FTEs that are going to leave the bank at January 1, 2022. Looking into 2022, and with concluded detailed redundancy agreements, I'm very confident that we will make further significant progress in the restructuring. Finally, let us take a view at some highlights in the development of our operational transformation KPIs. As usual, the full table of KPIs can be found in the appendix. In Corporate Clients, RWA efficiency measures stand on top of the agenda. In Q3, we have further reduced client business in the low yielding bucket from 31% - 30%. This is further ahead of our year-end target of 32%, and we will keep on going to further improve our capital deployment. However, we will also face some RWA headwinds from model adjustments. Furthermore, the streamlining of our international network proceeds faster than planned. We have already closed four out of 15 exit locations, exceeding our plan of three exits at the end of this year. In PSBC, I would like to highlight a topic that is not exactly on the KPI list, but nevertheless very important for the success of the transformation. Customer and revenue churn due to branch closures and pricing initiatives is so far limited. As of Q3, customer churn is 40% lower than expected. Better churn figures can also be reported for the Corporate Clients division. We stay cautious on churn and want to see further good quarters in 2022 before we adjust our guidance here. Looking at operations and head office, we have made further good progress in the ramp up of our nearshoring locations. Already 18% of our IT capacity sits in nearshoring locations, well on track to reach the milestones of 20% by the end of this year. In Q3, we have also further increased the share of applications that run on cloud technology from 34% - 36%. Our target to reach 50% by the end of this year will be, however, postponed to the H1 of 2022. Key reason is the necessary enhancement of the infrastructure that we need to implement together with our client providers, cloud providers. Ladies and gentlemen, the strategic transformation of Commerzbank is well on track, and we are completely committed to our Strategy 2024. After this closure of our full year results for 2021, we plan to host a capital markets day at the first of March. In this event, we want to provide you with an update on milestones and interim targets towards 2024. Let me now pass on to Bettina, who will walk you through the financials of the third quarter. Thank you, Manfred, and also a good morning from my side. I will walk you through the financials before we move into Q&A. Let's start with the overview on slide seven. As Manfred already stated, we had a good financial performance in the third quarter. The operating result reached EUR 472 million, and the net result was EUR 403 million. The operating result is mainly driven by three factors. A, strong revenues of more than EUR 2 billion, even considering the increase of legal provisions for Swiss franc mortgages by EUR 95 million-EUR 472 million. B, costs of EUR 1.5 billion managed in line with our full year target. And C, a low risk result of EUR 22 million. This reflects the high asset quality of our portfolio. I want to stress that we did not benefit from a net release of our COVID-related top-level adjustment. The overall level remains nearly unchanged at EUR 496 million. We further improved our strong capital ratio to 13.5%. The buffer to MDA increased to 410 basis points. Now let's briefly look at slide 8 and the year-to-date view. Compared to 2020, revenues are up EUR 202 million. Operating expenses, excluding the one-time write-off in Q2, are EUR 93 million lower. The risk result is EUR 810 million lower. This has led to an operating result of more than EUR 1 billion and already covers the EUR 1 billion restructuring charge booked in the first nine months of the year. Let's jump to page nine with the exceptional revenue items. Overall, these items amount to only minus EUR 9 million. Higher valuations of EUR 32 million have largely compensated an additional provision of EUR 33 million for the German Federal Court of Justice ruling on fee changes. This additional provision covers expenses caused by the court ruling, like the cost of providing all customers with our terms and conditions in written form. Slide 10 shows the overall group P&L. As mentioned, we reached a good operating result and have booked the majority of restructuring expenses already. Further EUR 90 million restructuring charges will be booked until the end of next year. The net result of the quarter benefits from a small tax gain as the taxable year-to-date income is negative. In the fourth quarter, we will finalize our annual planning process. The addition of 2025 as a planning year will likely lead to an increase in tax assets. This increase could be in the EUR three-digit million range. I therefore stick to my guidance of a tax gain for the financial year 2021. Now let's move to the next three slides where I will cover NCI and NII in more detail, starting with net commission income. PSBC Germany strongly increased commission income by 13% year-on-year. This has been driven by the securities business. Both trading volumes and securities in custody have increased significantly compared to last year. Commission income and corporate clients also increased this quarter. This is mainly due to transaction banking. We have seen better trade finance that is somewhat recovering from the negative effects of the pandemic and higher contributions from cash management. This leads us to NII in slide 12. As expected, underlying NII has been on the same level as the previous quarter. In PSBC Germany, NII from the loan business is a bit better than last quarter. The NII from deposits was also slightly up. An increased income from deposit pricing offset effects from modeled deposits. In Corporate Clients, NII from loans was stable while the contribution from deposits increased due to further progress in deposit pricing. Also for the fourth quarter, we expect the underlying NII, excluding the TLTRO benefit, to remain roughly at the current level. Let's move to the next slide with the current interest rate development and the further outlook. This year we have so far seen a limited churn in customers and correspondent revenues. If this trend continues in 2022, we expect the NII, excluding TLTRO benefits, to be at around the level we have seen this year. In the longer term outlook of our Strategy 2024 that we presented in February, we had assumed constant low euro interest rates in our plan. However, while being quite volatile, the market-implied forward rates are increasingly reflecting rising rates. We are currently benefiting slightly from this, as we can reinvest modeled deposits at better rates than originally assumed. Based on the forward rates at the end of the quarter in PSBC, we would earn more than EUR 200 million additional NII in 2024 compared to our strategic plan. Or in other words, we would be on a good way back to the NII from deposits that we had in 2020. However, in the years 2022 and 2023, we would still face some remaining headwinds from rates that we target to at least partially offset by increased deposit pricing. Now let's look at mBank. The pandemic-induced cut in rates had an impact on the NII, which bottomed out in the Q1 this year. The National Bank of Poland has increased rates in October and again yesterday. The increase in rates will support NII at mBank. We estimate that the 50 basis points increase in October will lead to roughly EUR 40 million higher NII per year. It is fair to assume that the effect from the 75 basis points increase yesterday can be roughly linearly extrapolated. We had assumed rate increases in Poland in our Strategy 2024, but we were expecting them only from 2022 onwards and rising more slowly. The current market expectation is that rates are not only rising earlier, but will also be higher than we had planned. Let's carry on with costs on slide 14. We have maintained our strict cost discipline and operating expenses are in line with our full year target. At the same time, we continue to invest in our digital transformation, spending around EUR 360 million so far this year. Let's move to slide 15 and the risk results. The EUR 22 million risk result is even lower than in the second quarter. This confirms the resilience of our loan book with largely stable or even improving ratings and a low number of defaults in the quarter. This is also clearly visible in the cost of risk on loans, which stands at a low 13 basis points. The so far low risk result in the second year of the pandemic is clearly very encouraging. Also, we expect a higher result in the fourth quarter. We can improve our guidance for the full year to below EUR 700 million. This is assuming that our TLA remains around the current level. Having said that, while certainly significantly more optimistic, we are not fully out of the woods yet. The government support measures will run until the end of the year and first repayments of support loans will start. There will be some companies that will be adversely affected. We also see secondary effects like supply chain disruptions and higher energy prices that put strain on customers. Therefore, an increase in defaults is likely in the next quarter. On this and following a review, we intend to keep our TLA to cover direct and secondary effects of the pandemic in 2022. Now let's carry on with the operating segments, and let me start with Private and Small Business Customers on the next two slides. We had continued inflow of around EUR 3 billion net new money and securities in the quarter. So the trend that Germans invest more in securities is intact. We do expect this to continue for the time being, but a more uncertain outlook in the markets could slow down this trend. A lot will depend on the overall development of the market, which has moved sideways during the third quarter. Mortgage volumes continued to increase in the quarter at a steady pace and as planned. The consumer finance business has again been flat. We do not expect a significant change in customer behavior in the near term. In the deposit business, we have again made good progress in the quarter. We managed to reduce the overall volume of deposit while increasing the volume of deposits subject to pricing to EUR 16 billion. So far, this has contributed EUR 40 million to NII. Overall, we expect the contribution from deposit agreements to exceed EUR 55 million in 2021. This brings me to the performance of PSBC on page 17. PSBC reached an operating result of EUR 299 million, significantly better than last year and also the second quarter. The good performance is based on 5% higher underlying revenues year-on-year, driven by the German private customer business. The securities as well as the loan and deposit businesses contributed. Churn due to the streamlining of the business model has been lower than anticipated, both in terms of the number of customers and revenues lost. The departing customers had on average not contributed much to revenues. So far, we continue to lose the right customers. mBank has also performed well with underlying revenues nearly on the level of last year, even though the provisions for Swiss franc mortgages were increased by EUR 95 million - EUR 472 million. As the Polish Supreme Court has so far not ruled on Swiss franc mortgages, we do not expect clarity in the near term. We will continue to closely monitor developments and adjust reserves if appropriate. Now let's move to Corporate Clients on the next two slides. In Corporate Clients, we have continued our active portfolio and RWA efficiency management, slightly reducing overall loan volumes in the quarter. Average RWA efficiency was maintained at 5%. In the deposit business, we have seen a continued increase in volumes from our customers. The increased volume has been fully priced, thereby ensuring no negative impact on profitability. We currently charge 50 basis points for most corporate deposits, but partially also higher rates, especially with institutional clients. The average was around 55 basis points this quarter. For the year, interest income from deposit pricing has so far added up to around EUR 175 million. We continue to actively manage the deposits and will adjust rates and introduce higher rates for more clients, including large corporate deposits beyond our allowances. With these measures, we expect to see the contribution for pricing increase from around EUR 150 million in 2020 to more than EUR 250 million this year, offsetting our cost to hold these deposits. Let's move to slide 19. Underlying revenues are around 4% lower year-on-year and a bit better than in the second quarter. At the same time, RWA were reduced by 14 billion or 15% year-on-year. Thereof 9 billion come from credit RWA, driving the improvement of our RWA efficiency. Looking at our business lines, all client groups improved revenues compared to the second quarter. Mittelstand and institutionals also improved revenues year-on-year, mainly from better transaction banking. Trade finance recovered somewhat from the pandemic lows. Cash management also improved revenues, including from increased deposit pricing. International corporate revenues are lower year-on-year in line with our strategy. Compared to the second quarter, international corporates also benefited from improved transaction banking and better capital markets business. With a lower risk result and lower cost, Corporate Clients reached an operating result of EUR 221 million. Let's move to slide 20 and the development of others and consolidation. The operating loss of EUR 49 million in others and consolidation is to a significant degree driven by lower valuations at CommerzVentures. This is largely resulting from our stake in Marqeta, whose share price is quite volatile and hit a low at the end of the quarter. Others and consolidations operating results stands at EUR -206 million after the first nine months. Assuming that we can receive TLTRO benefits as well as some contributions from equity holdings in the fourth quarter, this should at least improve to a slightly negative operating result for the full year. Let's move to slide 20 and the risk-weighted assets. Quarter- on- quarter, RWAs were overall moderately reduced, driven by credit and market risk, partially offset by an increase in operational risk RWA. Credit risk RWA lower due to a slightly reduced volumes, improved ratings and higher collateral with Corporate Clients. We also booked a small final impact of TRIM this quarter. Operational risk RWA increased due to the switch from the internal model we have used so far to the standardized approach. This leads to an increase but will reduce volatility going forward. The change will formally happen in Q4, but we have already included the impact this quarter. This RWA reduction combined with the stable capital has further improved our CET1 ratio to 13.5%. To wrap up the financials of the quarter, the underlying business and strategy implementation have developed well. After nine months, the operating results can already cover the restructuring charge of EUR 1 billion booked this year. This is reflected in our improved outlook on slide 22. Based on the premise that there will be no extraordinary burden from Swiss franc mortgages in the fourth quarter, this is our outlook for 2021. Revenues will exceed the 2020 figure. We will reach our target of an operational cost base of around EUR 6.5 billion. In addition, we have the EUR 200 million one-time write-off booked in the second quarter. Based on current observations and assuming a top-level adjustment near the current level at year-end, we improve our guidance and expect a risk result below EUR 700 million. Given the aforementioned, we expect positive operating and net results. Last but not least, we expect a CET1 ratio around 13.5%. Thank you very much for your attention. Manfred and I are now very happy to take your questions. We already have some questions, but let me quickly explain again how to raise a question. Ladies and gentlemen, if you would like to raise a question, please press nine and the star key on your telephone keypad. To withdraw your question, press nine and star a second time. Let me repeat. To raise a question, press nine and star. To withdraw your question, press nine and star a second time. The very first question comes from Izabel Dobreva from Morgan Stanley. Please, your line is open. Hello, good morning. Thank you very much for taking my questions. I have three, please. I was very encouraged to see your results and the updated revenue guidance given the improving RWA outlook. I don't mean to take away from the improving revenue picture, but I would like to actually ask you a question on the cost line. The wage inflation pressures are accelerating, which I guess impacts the business through the negotiations with the unions, the nearshoring in Eastern Europe, and of course, the Polish business. The recent strategic update from mBank seems to imply cost growth around 10% or so a year. In light of all of this, my question is, what levers do you have to offset these inflation pressures and reach the EUR 6 billion-EUR 6.2 billion cost target for next year? Would it be more appropriate to start thinking about the cost income ratio target at this stage? That's my first question. Secondly, I have a question on the capital return. It looks like the business is on track to be profitable already this year and on track for the EUR 1 billion target next year. Does this change your thinking at all about the timing of when you might resume the capital return given you're already profitable or are likely to be, and capital is at 13.5%? My final question, which I suppose is linked to the previous one, is regarding the Swiss franc mortgages. There is increasing movement towards voluntary settlements, and, you know, there are headlines that mBank might be working on a pilot scheme. What are your thoughts here, and would you be open to entering into a voluntary scheme? Thank you. Thank you, Izabel. Good morning. On your first question, the cost baseline, I mean, we are closely following up on that, and indeed, we see specifically in Poland you see quite a huge inflation and therefore they have adjusted also already salaries and stuff like that. I can assure you that we have embedded that in our plan. We stick to our EUR 6.2 billion guidance for next year. The rest we will take from there. We have an update anyhow first of March. The EUR 6.2 billion are our target for next year. Second, capital return. I know when you look at the results you could think, couldn't we pay already dividends in 2022? To be very honest, let's have first 2022, and then we will definitely discuss, and consider, and we will update you on that one. The third one, Swiss franc mortgages. Yeah, I mean, there are two banks now out with voluntary settlement offers. mBank team is also discussing that. We are open for any solution, to be very honest. I mean, we definitely all want to have this story or saga, however you wanna describe it, to end. The thing is only, it must be a sensible ending. We need to find a solution which is then also binding for everybody and which is also ending the years of claims and court procedures, et cetera. So m Bank is working on that, and the fourth quarter will definitely be also an insightful one on how to proceed on that. Thank you very much. The next question comes from Nicholas Herman from Citi. Please, your line is open. Oh, yes. Thank you. Good morning. Thank you for taking my questions. Three from me, please. Hopefully, you can hear me okay. Two are on NII, and a follow-up on Swiss franc mortgage. Just to dig into NII trends, please. Significant step-up in German PSBC NII, I think underlying about EUR 440 last quarter to about EUR 480 this quarter. Per your comments, that seems to be sustainable. I'm just struggling to understand the moving parts there. I appreciate that priced deposits increased, but only by EUR 3 billion from what I can see. If you could provide some detail behind the moving parts and the step-up on German PSBC NII, that would be very helpful. Secondly, you also said that your churn in PSBC has so far been far lower than planned, about 40% lower. Very encouraging to hear. I guess that would imply if that holds, obviously a big if, that would imply about EUR 200 million NII churn compared to the EUR 300 million that you originally guided. Along with the EUR 200 million higher NII from higher forward rates, as implied in the forward curve, I guess that would imply about EUR 300 million higher NII versus plan. Just to confirm that means that you would therefore be expecting EUR 5.7 billion of NII in 2024. I guess that would obviously then compare to EUR 4.7 billion consensus. Just to confirm that I've got the math there right. Finally, just on mBank. I guess conceptually, I mean, as owners of mBank, are you not encouraging the managing team to settle, to take that risk off the table? Certainly, I guess when you look at quite strong rhetoric in the courts versus, I guess, what, when you see peers of mBank settling at significantly lower rates. Just why not just trying to really accelerate the process and get it off the table as quickly as possible? Because from what I can see, mBank has been lagging peers on this. Thank you. Okay. Thank you, Nicholas. To the first question, I mean, what are the main drivers for the strong development of NII and PSBC? Number one, as you mentioned that already is the deposit pricing. It's slowly but surely adding to the revenues, and we expect more. I mean, you can see it also in the presentation that we have still EUR 32 billion above the 50,000 EUR threshold, which are not priced. So that is something. Second is the stable loan business with higher volumes and mortgages are adding to the NII. Additionally, in Q2, we had a negative effect of early mortgage repayments on NII. That always happens end of June, and that always is a little bit depressing NII and PSBC in the second quarter. That's definitely a seasonal effect. Compared to Q1, if you take that, the development is clearly smoother. Second, on the churn rate and what we expect for 2024. First of all, what I said, I mean, we will have more NII in 2024 on the fact that what we have seen in the forward rates end of the quarter. I mean, at the very end, it depends on where we stand in 2024, what effects you will see. We stick to our conservative approach for the time being that we do not expect rate increases in the Eurozone. That might change in the next months, but for the time being, we stick to that. We know that there is clearly an upside which implied or assuming current forward rates, more than EUR 200 million of additional revenues. On the churn side, I mean, Manfred said that, and I said it also, I think we need to stay cautious. I mean, it's very promising what we currently see, but we are still in the closure of branches. I mean, we closed this year 230. We have closed already the first 200 last year. We haven't seen any effect of the first 200, but we stay cautious. There might be indeed an upside because we figured out that there would be a significant decrease in revenues due to churn, but we still stay cautious in the moment. The third one on the settlement. I mean, we are very supportive in finding a solution. To be very clear, we need to find a solution which is ending the story. What is not helpful to have a voluntary settlement offer out there, and then everybody who would not basically go to court because they do not see any necessity would take the settlement offer. All the persons who believe or people who believe that the court way is the more beneficial one to say it like that will stay on the court procedures, because then we have not won any. There is no win-win in that. We definitely want to have an attractive settlement offer, but hopefully also a settlement offer everybody can accept and which will end the court procedures. That's our target, and that's also the target, clearly, of the mBank management team, and they are working on that. I mean, it would be ideal if we would have seen a Supreme Court decision by September. Unfortunately, that did not happen. We need to clarify it via other ways. Great. Thank you. Thank you very much. Well done on the good set of results this quarter. The next question comes from Johannes Thormann from HSBC. Over to you. Morning, everybody. Three questions and follow-ups, please. First of all, on the operating costs, I'm still a bit struggling to see personal costs rising that strongly after the negative trends in the previous quarters year-on-year, despite the head count now being down by more than 1,500 as you reflect in your presentation yourself. Is there another step upcoming or will we see a drop in Q4, and then was this just some one-off effects or whatever in there? Secondly, on coming back to your retail deposits. Yeah, you lowered the threshold where you can price, but first of all, the price ratio of the deposits which you can price has gone down from 33%. Secondly, how much of these EUR 32 billion retail deposits, which are now above your 50,000 EUR threshold, can basically ignore your request to pay the fee because even under your new AGB from November, they can say, "I've had my account with you for so many years and I don't. This is still the old requirement." Last but not least, on customer from my side, how much of the new AGB do you expect to have an impact on your customer churn? Thank you. First on operating costs. Yes, indeed. Personnel costs are currently we have seen a rise. There are two main reasons for that or three. One is that, I mean, the leaving of people has always a time lag in the personnel cost side. That's number one. Number two is that we have seen a so-called tariff increase based on the collective bargaining round, last round. That one is automatically playing in to that. A third one is, honestly speaking, we also increased our provisions for our booking for variable compensation because apparently we have good operating results and clearly the target to also give something back to the employees who did a great job in the last nine months. Secondly, on retail deposits, I mean, we clearly target EUR 32 billion, but as we know, it's based on bilateral agreements with each and every client. We definitely also will have a look on the client relationship, the profitability of the client relationship, the cross-selling we do with the client, and therefore, it's an individual decision by each and every client. At the very end, I mean, putting deposits on our accounts is also kind of a service we provide. As anybody else who's providing services to someone, you wanna get paid for that if you have costs, and we have costs out of that. It will be discussions with each and every client, and hopefully, and this is also our experience, many clients understand this procedure and accept it. I mean, there are also otherwise than just keeping deposits on your accounts, securities business is an attractive alternative, specifically if you're long-term oriented. The third one on AGBs, I mean, clearly, we also assumed churn because of the new price models. The price model introductions, which we plan for comdirect by first of May and for Commerzbank by first of August. That was then kind of interrupted by the federal court decision. We are now out. We are asking for consent by the clients. We do that step by step. The feedback is rather promising. There will be clearly clients you will have discussions with, but it's a little bit the same story as I said on the second point on the retail deposit pricing. We provide services and we need to get paid for that. That's the discussion we have to have with our clients. Okay. Thank you. One follow-up on the tariff increase. In my understanding, the wage negotiations are just starting and ver.di has just called for a strike action on Commerzbank. Have you modeled in already some tariff increase in the results, or is there more to come from the upcoming tariff negotiations? Well, the one which I was referring to is from the last round. I think it's two years, three years ago. There you basically agree for certain years until you have the new start of collective bargaining, which is underway at the moment, but that's for the future. We clearly have embedded our plans, certain results of the collective bargaining, and also in our forecasts. Yeah. Okay. Thank you. The next question comes from Jochen Schmitt from Metzler. The floor is yours, please. Thank you. Good morning. Just a clarification on Others and Consolidation. Did you say that you expected a slightly positive operating result for financial year 2021? Honestly, we start slightly negative. We guided so far zero. Now, given that we are a little bit above to EUR 100 million, it very much depends. I mean, we are very sure that we get the TLTRO benefits. On the equity investments it's always tough to predict how much we see. Therefore, there might be a slightly negative result. Thank you. The next question comes from Riccardo Rovere from Mediobanca. Please. Good morning. Good morning, everybody, and thanks for taking my questions. Two or three if I may. The first one is a kind of clarification, if I got it right. You indicated 2022 NII excluding TLTRO benefits expected to be roughly in line with 2021. First of all, I wanted to ask you if that is a kind of formal guidance. If it is, how would this cope with higher rates in Poland, higher long-term rates, which I would imagine part of the EUR 200 million that you have flagged in 2024 could be cashed in 2022. Two, and with the fact that volumes are growing quite nicely, I mean, can price competition erode all of that, if I understood correctly the guidance? The second question I have is still if rates had to go up in the Euro area, which I understand is certainly not your central case, but let's assume that happens, would you still be in the position to keep on repricing the deposits? Can you have both sides of the equation? Last thing I wanted to ask you, if I understood it correctly, you expect at year-end the probability test to result in a reassessment of DTAs, and that should result in positive taxes at the end of 2021. Could you quantify what is the possible improvement in DTAs? Where are those DTAs booked? Are all in Germany so we can have a, let's say, an element to better assess what the tax rate for the group could be in the coming years? Thanks. Thanks, Riccardo. In 2022, yes, we sat roughly in line, excluding TLTRO benefits. I mean, what's tough to say is that all relates and comes back to the churn question. I mean, if we would not see any churn, then for sure the rate increases in Poland are beneficial. If there are further rate increases in Eurozone, we would definitely benefit. But we have the other side of the story that, A, we will continue our closure of the exit locations in Corporate Clients, which will mean that we will lose revenues for sure, and also NII. The other side of the story is how much churn will we see on the private client side. With respect to rates, if rates go up in Euroland, can we continue our deposit pricing? I would say it depends, right? I mean, if there is a sharp rate increase as we now see it in Poland to now 1.25%, it would be probably difficult and we would not do that. But that is a long way for Euroland. As long as we are in negative territory with our rates, I also expect that you could do deposit pricing. Clearly, you would adjust and think about the amount you price. Third, on the DTAs, I mean, I said that this would be in a three-digit million size. It's mainly Germany. Yeah, we'll see. It's a lot of accounting which you have in there, but it will lead definitely to a positive tax income, and that also clearly supports our guidance on a positive net income. Thank you. Thank you very much. The next question comes from Stuart Graham from Autonomous Research. Your line is open, please. Good morning. Thanks for taking my questions. I had two or three as well, please. The first question is back to the dividend question. If you are profitable for the full year, why would you not pay even a small dividend? You've got plenty of capital. You've only paid a dividend in two of the last 13 years. I mean, surely you'd be keen to pay a dividend at the very first opportunity. That's my first question. The second question is kind of back on the deposit charging. Within your rate guidance, the EUR 0.6 billion-EUR 1 billion NII uplift over one-four years, is that gross or net of the EUR 300 million or so of deposit charging income which you currently receive? What are you assuming within that guidance, the EUR 0.6 billion-EUR 1 billion? The final question was on your EUR 200 million benefit from curve shifts on chart 13. Is that just euro rates, so Poland's on top, or that includes Poland as well? Thank you. I mean, on the dividend question, yes, we are absolutely keen to pay dividends because it would mean that we are returning to a normal state. However, I think we definitely also need to prove that we are able to show stable and positive results, not only for some quarters, but for the full year, because that is the one which is required to show that in case we need it, that we are able to create capital on our own, and that's the key thing. I can assure you, we will have the debate, and we will reflect that carefully, because we are fully aware that paying dividends is belonging to a normal bank to say it like that. In the moment, we are still in a transformation phase. Secondly, the deposit charging is included, yes. That is basically a part of the adjustment of the price models we refer to. Dependent on how things are now developing, it might be higher than we originally planned, but it also depends clearly on how the rates are developing in the next months. The last one, the euro rate, the more than EUR 200 million, that is just related to euro rate. It's not including the benefit of the Polish increase. That is separate because that one we also see already today. For the first increase, we expect an NII increase of EUR 40 million from 2022 onwards for mBank. The 75 basis point increase of yesterday, we have not yet calculated because it was kind of a surprise. You can assume that this will develop accordingly, to say it like that. Thank you. Just to be clear on the second question then. The billion after four years of a plus 100 basis points, and obviously then you've got positive rates, so the deposit charging is gone. It's EUR 1.3 billion gross minus the EUR 300 million of deposit charging gives you the billion net. Is that right? You mean, are you referring to the EUR 1 billion increase in the backup, right? We would see a 100 basis point increase in total. Exactly. Okay. Sorry. Yes. That one is assuming that well, it depends on where we start with, but we would still need to deduct a little bit for deposit pricing. Yeah. Okay. All right. Thank you very much. The next question comes from Hugo Cruz from KBW. Your line is open. Hi. Thank you for the time. Just a few clarifications. First on the NII, I've noticed your underlying number for 3Q is a bit different from the reported by EUR 24 million. I couldn't understand what was the difference, so if you could explain that. Second, on TRIM, you know, was there any impact from TRIM in 3Q? And are you guiding for anything in Q4 on the RWAs? And third, you know, I think you said that your profit guidance for this year does not assume anything material extra on the Polish loan provisions, you know, the FX issue. Does that mean that you actually do not expect to book anything in Q4, or it's just that it's a bit too early to take a view there, and arguably any provisions would be below, you know, smaller amounts of the DTA benefit? If you could clarify, this would be great. Thank you. Yeah. Good spot on the first question. The main reason is that we have consolidated a securities transaction that was to be executed at the end of last year and the third quarter. In the first two quarters, the cost of the securitization was reported as fees paid. Following the consolidation, it is reported as interest paid. We therefore had to reverse the bookings from Q1 and Q2 this quarter, leading to a significant swing between NII and NCI in the third quarter. To show the underlying trend in NII and NCI, we have therefore adjusted for the securitization. In the underlying NII, the cost of the securitization is fully shown in NII now in all three quarters. That's the whole reason for that. Second, on RWAs, honestly speaking, we do not expect anything in the fourth quarter. TRIM is now completely in. It was a very tiny effect, and this is also why we are now very sure on the guidance for the capital ratio with 13.5% or around 13.5% for end of the year. On the last question, I can read not anymore my own scribblings. The profit guidance and whether material extra, yeah. I mean, the normal bookings, I would say, something which we have seen in the last quarters would definitely be in our guidance. But if we would book a big provision for a settlement offering or something like that would be not included. The differentiation is normal provisioning would be included. Material one, like for a settlement offer, is not included in the guidance. Just to follow up, the normal provision would be something similar to the run rate of 3Q and 2Q? Is that a way to think about it? Well, I mean, what have you seen? We have seen provisions, everything between, I think, EUR 30 million-EUR 200 million. Everything is possible. That is really very much dependent on the claims incoming because we always based our assumptions on how are the claims developing, how many court processes start. To be very honest, we have seen an increase, and this is also why we increased provisioning over the summer. Now the past weeks show a slowdown of that. We always take our current experiences and then make also an extrapolation for the future, and that's included in the provisioning. It's tough to say, but anything what we have seen in the past quarters would be absorbable. Okay, thank you. The next question comes from Jun Yang from Barclays. Over to you. Hello. Hi, thanks for taking my questions. One, on the macro, I'd just like to understand a bit more about the recent economic events such as inflation, the supply chain disruption. How does it impact on your clients and then for the, for us at bank? The second question is about Q4 kind of outlook. We're talking about a full year, positive net result. I think that last kind of new approach. I just want to understand if you guys have a sense of seasonality being first nine months, you are already positive. That kind of guidance actually linking to that, I can see from your page 16 where you're showing the 3Q21 target of the securities and the loans combined will be EUR 310 billion, applying 5% decline QOQ. Just try to understand what sort of revenue impact is that. Is that mainly coming from the securities or the loans? Lastly, just on a high level question on the revenue, given the debate of the pricing change because two things. What is your thinking about the revenue impact from, for all these restructuring program you are doing? Do I expect most of this revenue headwind to come through in 2022 and less so in 2023? Just trying to understand the progress happening there. Thank you. Honestly speaking, we had really difficulties to understand your question. I think I got the first and the third one, and you probably need to repeat the second one because it was the line was somehow, at least for us, disturbed. I try on the first one, if I understood that correctly, you ask about the macro effects and how we embedded that in the plans, et cetera. Basically what, and that's why we keep the top-level adjustment because we see the biggest effects we might see in the risk result in with our Corporate Clients. Therefore, I mean, we basically did some shifts in the top-level adjustment because we do not see really primary effects within the private client segment. We do expect some secondary effects in our Corporate Clients segment. What we basically do is that we preserve for the time being the top-level adjustment for anything which could happen either in the fourth quarter or in 2022. That's also why we kept the guidance of the loan loss provision so far on below EUR 700 million, which is still, even for a long quarter, quite a risk result, given that year- to- date, we have just seen EUR 257 million for three quarters. The last question I think was the question on when do we expect the biggest revenue impacts by the transformation? Honestly speaking, we would have expected that already for 2022 Q1 partly. We haven't yet seen it entirely. A little bit on the Corporate Clients side, but definitely, as said, not on the private client side. Yes, 2022 will be most likely the year where you would expect to see the churn on the private client side, but also the effects of the additional closure of the exit locations on the Corporate Clients side. I think the second one will definitely come because we have in our plans the closure of the locations and then revenues will be gone, but also clearly the cost attached to it. On the private client side, it's very much dependent on how clients are reacting. If the trend continues as we currently see, that churn is A, lower, and B, that the revenues attached to the clients leaving is so low, then effects will be lower. In the moment, we expect more to come in 2022. Now you probably have to repeat, make another attempt, on the second question or otherwise, we need to take it tomorrow in our call. Let me try it again on the second one. The second one is hopefully straightforward. Your guidance on the full year is a positive net result, which you already achieve in nine months. I try to understand, is at least conservatism being built in for the Q4? One thing maybe you can give more color is in page 16, where you're showing the PSBC loan, the security volume to decline roughly 5% QOQ in Q4. Just trying to understand, is that one of the concern on the revenue side? Thank you. I mean, the fourth quarter we expect very much in line with the third quarter with respect to revenues, but also costs. I think the big difference in the fourth quarter will be clearly the LLPs, because it's a long quarter. We will already see most likely some effects out of the ending of the government measures, et cetera. That will be. I mean, we do not expect a EUR 22 million risk result for the fourth quarter. The big difference between fourth and third quarter is clearly the risk result. Great. Thank you. Thanks for your answers. Cheers. Yeah. I will jump in again. I would say thank you very much for joining us today and your question. Thanks for being with us today. Bettina and myself wish you all a successful day. Bye-bye. The conference is no longer being recorded.