Welcome, ladies and gentlemen, to our conference presenting the unaudited results of mBank Group in 2022. Before we start, let me introduce the speakers today. Mr. Cezary Stypułkowski, Chief Executive Officer, Mr. Andreas Böger, Chief Financial Officer, Mr. Marek Lusztyn, Chief Risk Officer, and Mr. Marcin Mazurek, Chief Economist, who will join us virtually. Cezary, the floor is yours. Welcome. You know, what should I say? Operational results, fabulous. Reported loss, that's simple, and this is the second consecutive loss and second loss in my 30 years career. So I'm very much dissatisfied. There are reasons for that. As I said, you know, we have exceptional operational performance last year, which is very much reflected in the growth of our net interest income and fees and commissions. Gross, the interest income is pretty obvious. You know, we are operating in an environment where the interest rates have been growing very fast. I think that, you know, during my 30 years' career in banking in Poland, I have to say that was the most rapid growth of the interest rates I have witnessed, though of there are the consequences, specifically since the Polish market, you know, is very much biased towards floating rates. So the banks has benefited big way. Reported total income has been at PLN 7.8 billion, out of which PLN 5.9 billion was the net interest income, which has grown by 43%. And we had, I think fifth consecutive year of double digits fees and commissions growth. This was not in the 20s, as it used to be, but 13.5%. It's still, you know, pretty strong performance. Very much driven by the, again, transactional turnover. We are very proud that this concept of premier transactional bank, you know, has been well anchored in our culture and, you know, is recognized by our clients, and I have to say, you know, led to the situation that our fees and commissions over the last few years has doubled. Cost-income ratio, this is, you know, due to the lots of external factors. We sort of differentiate between, I would say cost-income ratio, which we calculate as a business-driven development and the cost-income ratio, which is reported with its 42% +. Something what, you know, when you deduct the compulsory payments, which, you know, including the Support Fund and protection scheme, which will be elaborated later on, that translating to certainly 34.3%. And what should I say? Dream figure for most of the banks, you know, not only in Europe. Expenses have been, you know, as it used to be in the past, under the reasonable control of the management. They have risen by almost 11%. That is comparing to the inflationary environment, which was slightly higher. Again, you know, contributing to some extent to the good performance. I think it will be elaborated, you know, which lines of the expenses have been growing the fastest. I can sort of preempt that the cost of the workforce was the major contributor. On provisions, I think that, you know, the simple line is 68 basis points, you know, cost of credit, Marek will be elaborating later on. And as I said, only there was a reported loss of PLN 703 million, mostly due to the legal costs which are attached to the Swiss franc portfolio, the heritage portfolio which we have generated between 2005 and 2008, and which we manage in this very unstable, you know, and unfriendly environment where the paradigms of banking are being questioned. Important factor of 2022 were a variety of factors which have been outside of our control, mostly the government or state-imposed credit vacation, which costed us significant money. All the public burdens which, you know, have been reaching almost PLN 2 billion. And we are talking about, you know, both the credit vacations, and our contribution to the protection scheme, which basically allowed the controlled bankruptcy of Getin Bank, mortgage credit Borrowers' Support Fund, where we contributed PLN 171 million. And so all in, was a heavy burden, and I would say it was reaching the level of our expenses. If we will add to this, you know, banking tax, I have to say that the total expenses of the bank have been significantly lower than the public burdens. That is something what is, you know, I would say, unfortunately, very unique in Poland, comparing to most of the more or less established markets. If we will, I would say, deduct these burdens, that means the ones which were of the one-off nature in 2022, our business has delivered 22% + return on equity, which just confirms, you know, how strong is our underlying business model. And even in the, I would say, unfriendly environment, you know, which was during the course of last year, because, you know, the assets has not been growing that fast, you know, we operate in innovation environment. All in, I have to say, you know, demonstrates that the bank has a very strong platform. We made the kind of comparison, which is, you know, obviously artificial to some extent. We have calculated how the bank would operate or what will be the financial result of the bank under the circumstances of before 2016. That means, you know, it will be operating exactly in the same regulatory environment and as we used to. And I think that that reflects more the standards which are in Europe, which are, you know… Obviously, this is, as I said, to some extent artificial. And then the overall gross result of the bank will be the magnitude of PLN 5.6 billion. That shows how difficult is the legal environment and unstable, you know, financial situation of our public burdens which are imposed on the banks. The balance sheet figures, I have to say, we are doing, I would say, pretty good on the deposit side, you know. This is growing, you know, continues to grow and our market shares are growing. On the loan side, the gross loan portfolio has risen by 1.1%, which in the inflation environment does not show, you know, a strong performance, but I think that was the market phenomena. I think that, you know, there will be more information in the presentation about the speed between retail and corporate. In principle, retail has been likely growing. We have some slowdown on the corporate side to some extent, due to the fact that these heavy burdens, which have been imposed on the bank, plus the Swiss franc portfolio. Buffering led to more restrictive policy as a consequence of necessity to really to manage the capital position. As on the deposits, I already have mentioned, you know, that our market shares are growing. You know, we are very proud that, you know, the transaction money with us are even. You know, we are gaining constantly market share. The term deposits, well, slightly lower, at 8.1%. That only confirms that our model of transactionality attracts a lot of money, with our relatively younger clients. Capital position, you know, we've managed to keep the ratios very much in line with the end of last year and, you know, still significantly above the legal requirements. It's 3.4% for Tier 1 ratio and 3.6% for the TCR. That was resulting to some extent, but from the two securitization transactions which we have exercised last year, landmark transactions, you know, for the region, which helped us really to manage the banks through this topsy-turvy time in the Polish market. With the securitization transactions, we put almost, you know, PLN 12.6 billion of our loans into these two buckets, which have been placed with the external providers. Loan-to-deposit ratio, the lowest, I think, in the history of the bank, 69%. The liquidity ratios, you know, LCR at 186%, which confirms, you know, very strong liquidity position of the bank. Client base growing. We continue to acquire retail clients, with the particular focus on the younger clientele on the retail side. We are also extending our reach to the corporate clients, you know, 33,000 of them right now, with a growing portfolio of clients, which we describe as K3 and K2. That means small and medium-sized. Mostly the upper end of the market, I think, gets more stable. In today's world, you know, ESG is an important element of the reporting. I will pass to Marek, who is championing, you know, this effort at mBank, and he will elaborate in more detail on the ESG progress. On the strategy, you know, which we have announced October 2021, I think that the pillars of the strategy have not, you know... We've done, you know, some look back and we scrutinized, you know, our initial pillars in the context of what has happened in 2022 in this rapidly changing environment. I think that the major directions are still valid, so I'm not intending to elaborate in detail. I can say only that, obviously the market conditions has changed and, you know, they need to be reflected in our financial projections. But I would say to focus our strategy on this demography's destiny, which is a sort of major message from our strategy. This move from mobility to the possibilities. Unfortunately, in English, it does not work the same way. I have to say, you know, we are having some progress. The major, I would say, development was the first stage of implementation of personal financial management, which, you know, for those of you who have been listening to our presentations on strategy, is one of the pillars of the longer-term perspective of enhancement of our offering. The digital works pretty well. We will be in more detail elaborating on, you know, how it progresses and how many transactions are being initiated on the mobile devices or the internet. There are some new features in our mobile platform, but I have to admit that, you know, due to the number of mandatory regulatory implementations, the pace of the implementation of new features is under distress. That is something what we have to recognize that the Polish banking sector, which is proud of being, you know, very modern and with a lot of thoughts, and we are championing this mobile effort. In these circumstances where there is a lot of pushing from the official sector, you know, to encompass, you know, some of the ideas which have been on our agenda is more difficult because of because of this public burden. Not only in the pure financial terms, but also the implementations which are resulting from the either the government initiatives or regulatory or regulatory requirements. And one thing which I have to stress, and this is something obviously still to be discussed, evaluated, is the remote work. I have to say this is a new phenomenon. We went through the full cycle last year. We believe that the way we have organized ourselves in the new offices which we have and the structure of and responsibilities in this respect are well received by the employees. They, I would say, in principle support, you know, success of the mBank. So we believe that our practices in this respect has been reasonably well defended, despite the fact that that was the first full year of action. As you may remember, we have changed our approach to the asset management. We used to have the more open architecture. We decided to centralize this function and to set up, you know, our own asset management company that has been done during the course of 2022. We got license and, you know, we started up big operations beginning of this year. All the other things, you know, you can read in our, in our documents. What I would like to stress is that the corporate is sort of catching up in terms of digitalization of its customer offering and the way we approach clients via the mobile and internet channels. More to be more in the mobile than the mBank is on the agenda and will be continued. Marek, on ESG. Thank you, Cezary. So as we have demonstrated as part of our strategy, ESG is one of the key pillars. In 2022, we have actually significantly progressed with respect to that, along all the three levels. And to briefly summarize our achievements with respect to that, as far as environmental concerns are concerned, we have signed up with Science Based Targets initiative that helps us to lead us to the decarbonization path. As we have declared, by 2050, we want to be fully net- zero. SBTi is our way to derive science-based targets that help us help us getting there. We're one of the first institutions in Poland that signed up for that for that initiative. Also in 2022, we have performed throughout review and calculation of our overall carbon footprint. As it comes to the banking operations, the carbon footprint that really matters is the one from the credit portfolio. Now we have a detailed understanding of what our emissions are. One of the key pillars of mBank DNA was a contribution to society. In 2022, we have continued our cooperation with the WOŚP, that is the Great Orchestra of Christmas Charity, one of the landmark non-government organizations in Poland. And we are happy to say that our mobile features really help out our clients to donate to that organization, where we have, together with our clients, collected over PLN 22 million last year. As far as our contribution to the society is concerned, we cannot forget about the unfortunate developments in Ukraine. As far as mBank actions on that front are concerned, we were actually very active to support the victims of the Russian invasion on Ukraine. To help refugees, we have chosen to cooperate with Polish Center for International Aid, that is a reputable and established organization that is well experienced in delivering humanitarian assistance and aid. As an organization, we have not only provided help to our clients to support them with the online banking and mobile application, but also, we have organized customized living spaces for refugees. We have organized the Ukrainian school and daycare, and also we are assisting the refugees with the basic banking solutions. Those initiatives were actually well-recognized through the international rankings. One of the things that we are very proud of is that as far as the ESG Risk Rating from Sustainalytics is concerned, we are rated Low Risk in top 10% of financial institutions worldwide. As far as the, G part of the ESG is concerned, I'm also, happy to remark that, as far as, Newsweek, ranking of World's Most Socially Responsible Banks is concerned, we were rated in the top 10, institutions worldwide, among 175, financial institutions, banks rated. In particular, as far as the governance concerns are considered, we were, rated the highest score. I think there is one aspect which I already tackled, which is, you know, market shares. You have the information on the right side. I think what is worth mentioning is that, you know, this drop in deposit-taking, which has taken place mostly, you know, May, June last year, was resulting to some extent from the more active presence in the market by the government, which, you know, at that time launched the retail issuance and, you know, we didn't participate in, you know, in the distribution. Well, in our case, M stands for mobile, so you know, naturally you want to report, you know, where we stand on the sort of the mobile part of our branding. The number of active users is growing. This is almost 3.3 million clients. I have to admit that, you know, I'm struggling to differentiate between the mobile clients and clients of the bank, because to be perfectly honest, someone who's not, who has not downloaded the mobile application of mBank, I think should rethink, you know, whether it makes sense to really cooperate with us because the real value which the bank creates for the clients is, you know, to operate and to be able to execute transactions on their mobile devices. Well, still, the number of active users of our mobile application is fast growing, as you see on the northeast part of the chart nine. And what is very important, and I think that that is something what mBank is very proud of, and we know that on this we scored almost the worldwide top names. This is the share of digital channel-initiated transactions, and specifically, you know, you see on the right side down the page, how much transactions, how many transactions are specifically sale of non-mortgage loans is being done, you know, via the mobile devices or on the Internet. You know, what is very promising and what is I think almost is kind of a signature of mBank is the fact that, you know, in 2022, more than 55% of transactions of this nature have been started and concluded on a mobile device, and this is doubling the figure of 2019. I think that the next one is the most important page of our presentation, which shows you how the financial results have been in fact impacted by the external factors. When we look into the sort of something what we call adjusted pre-tax profit, which is, you know, something what we have delivered, you know, out of the business platform of the bank, this is almost PLN 5 billion. And then you deduct number of items, starting with the government, governmentally imposed bank credit holidays. That's a separate issue. You know, our views on this issue are well-known. If necessary, obviously, we will, we will refrain our evaluation of the initiative, but that costed us PLN 1.334 billion. Then, you know, you have the next item, which is Borrowers' Support Fund. Something what I have to admit, you know, makes sense, and I would be very much tempted to agree that, you know, some beefing up of this fund might, you know, should be done instead of implementing, you know, this government response, governmentally imposed credit holidays, which are without criteria and benefiting, you know, basically the wealthiest part of the Polish population. We have a protection scheme, some, you know, something what I already elaborated as a helping hand of banking sector to avoid bank deposit getting disaster in the Polish market, which in our case costed us PLN 428 million. Even with all these burdens, we still will be pre-tax, you know, more than PLN 3 billion. Comes the heritage portfolio of Swiss francs, which, you know, we've been discussing, you know, in and out during our quarterly meetings. Obviously we'll be prepared to dive in also today. That was the cost of more than PLN 3.112 billion. That leads to the reported pre-tax loss, and then, you know, comes the banking tax and then all the other things and, you know, ends up in the, in the overall loss. Andreas, to yourself. Yeah. To finish the summary of the results for 2022, before we go into more of a multi-year view backwards, this slide here shows what was said before. So you in orange see the reported figures, and then you see the adjusted if they could have been in that year that definitely had two sides of the coin, and the one was operationally very positive, and the other one, as we laid out before, was very strong headwinds. Maybe to for some things to look at here also is if you look at the operating profit before banking tax, the operating profit before banking tax was still positive in 2022 in a magnitude of PLN 576 million. So how you come to the PLN 703 million negative result? So the net loss solely stems from banking tax and also from still corporate income tax that we're paying. I think that's also remarkable to understand about the operating environment we are in. With this, I think we go more to the multi-year view on page 13, because it's always good to see how things have actually panned out over several years. Here, just some highlights. Clearly, the net interest margin, I mean, that was a tectonic shift to average of the year underlying, without the government-imposed credit holidays of 3.7%. You will later see we finished the year with 403 basis points. So even finishing on a stronger note, but 370 basis points, very strong. That led even after the credit holidays, to a net interest income that's 43% higher at nearly PLN 6 billion. That's the one thing and that's to some extent, obviously, by the macro environment that is with us. But to come to the point in revenues, which we were actually I'm heavily steering that net fee and commission income, and Cezary has said it, we had very high growth rates over the last years. Remember last year it was over 20%, but also from 2021, but also from 2021 to 2022, you see here +13.5% year-over-year. Well, that's 40% higher than two years ago, and that's also a very strong performance here on net fee and commissions. Going to cost, Cezary already said the underlying cost was up by 10.9% without the whole compulsory contribution stemming from IPS and Borrowers' Support Fund and you name it. There it is indeed the case that we, within the 10.9% increase, the increase we have on staff is more pronounced. That's +14.6%. It's actually something we're proud of because we have very good people in the bank, and we want to pay our people. I'll give you more of a picture of what happened in Q4, but people need to be paid for good performance. And we're also proud that we managed the material cost below inflation and also below the overall cost increase at only 7.8% here. That concludes the multi-year view. With this, I'll hand over to Marek for the Swiss francs. Thank you, Andreas. As it comes to the Swiss franc topic, the first message from our side is that we have very strong protection against the legal risk that is ensured by highest provisions. If we look at the exposure at least, at least at the end of 2022, the share of the Swiss franc- denominated mortgage loan portfolio in our total loan portfolio was at 5 percentage points after deductions. As far as the cost of legal risk related to those loans in Q4 is concerned, we have written off additional PLN 430 million in Q4. That brings us to the overall write-off in the year 2022 of PLN 3.1 billion. And that, together with the write-offs that we have done in the preceding years, bring us to the overall amount of provisions created for that risk that amounts to nearly PLN 7.3 million. If we take into account the coverages, provisions in the loan, brings us to 54% of our Swiss franc mortgage loan portfolio that has been already written off. That is one of the best-in-class coverage ratios and significantly higher than the sector averages, in particular, when you compare to the other banks with the large Swiss franc portfolio exposures. And what needs to be reminded as well, that taking into account that we are advanced IRB bank, we have this additional FX mortgage loan regulatory add-on that amounts at the end of 2022 to PLN 1.335 billion. That gives us the total cushion against the legal risk related to the Swiss franc mortgages at the coverage ratio of over 66% of the of the exposure. And just to give you that figure in a perspective, that is significantly above the number that we would have incurred as a loss if overall active portfolio would have been converted into the Polish złoty at the FX rates at which that were prevailing at the time when the loans were underwritten. It's roughly PLN 5.4 billion-5.5 billion equivalent if that Polish financial services authority proposal would be implemented in full. The coverage ratio is significantly above that amount. As far as the changes into the model are concerned, we have discussed the change in the provisioning assumptions in details with you at the end of Q3. In Q4, there were no significant changes into the current methodology applied, so I will not spend much time on this. Instead, let's move on to the next slide, which summarizes our approach to active management of that legal risk. What marks Q4 as far as our approach to the Swiss franc- denominated loan portfolio risk is concerned, is that we have decided after a number of test phases and pilots to launch full-scale settlements programs with our clients. The details of that program are listed on slide 15. What we would like to highlight as the cornerstones of that offer that we provide to the clients is that the offer is made to all the clients with an active Swiss franc mortgage loans, including those that are disputing those loans with us at court. What we propose to the clients is a conversion of that loan into złoty, with reduction of the outstanding loan balance which is individually negotiated with each and every client. Considering also that the clients may find themselves into not really welcoming interest rate environment in Polish złoty when converted, we have decided additionally to sweeten that offer with preferential periodically fixed interest rate offer that is currently set at 4.99 percentage points, which compares to almost twice as much in the regular fixed rate offer in the standard pricing. We have started that settlement program in Q4, in the middle of Q4. It is conducted in stages. We plan to offer the settlement to all the active clients by the end of the second quarter of this year. What we are happy to highlight and underscore in today's presentation is that by now, at the end of January, which you can see on the slide, we have already approached almost 87% of all the active clients with initial settlement offer. Within that, slightly more than three months since we have started offering that settlements, more than 3,000 of clients already accepted the offer. The number that you can see on slide 15 at the end of January was 3,000. We have cross-checked the figures just before the presentation. The number is over 3,300 signed settlements as we speak today. You can see that run rate as of now exceeds 1,000 settlements a month. And we see also that there is a very active interest in that offer. Clients are actually genuinely interested in discussing with us the settlement conditions. We are optimistic in getting more of those figures demonstrated to you in the results of Q1. What is also worth highlighting as we speak about the run rate of settlements, since we have started offering the settlements, the number of settlements signed monthly visibly exceeds the number of new court cases that arrive within the same time frame. Slide 16 is just a brief summary of split between our core business and non-core business, but that have been discussed at length in the previous slides. So for the sake of the time management, I will not spend that much time on this unless there are specific questions. And I hand over to Andreas. We'll raise the specific questions on this. Yeah. I hand over to Andreas to walk you through main trends that we have seen on the finance side in Q4. Yeah. Yeah. So let's dive a bit more into the fourth quarter and let's dive very deep in the next slide, which is a bit more detailed, but it gives the full picture, and then we'll selectively and a bit faster than usual go into the fourth quarter to be mindful of time and give you time for questions. Page 19, please. Because what we have in the fourth quarter is the highest quarterly net interest income and the highest quarterly revenue we ever had in the history. You see this in total income at PLN 2.4 billion. If you just go down the lines, you'll also see that we have higher costs, that is mostly staff costs. We have a slide for this. We don't have compulsory contributions in the quarter. We even have a +1 because we booked conservatively the Borrowers' Support Fund in Q3, so we even have a bit of release there. Cost of risk under control. Swiss franc at PLN -430 million.And w hy I think it's good to stay on this slide to also explain the PLN 834 million net profit, because I think the corners here will see that the effective tax rate in the quarter was only 16.9%. That is stemming from the fact, and we were also putting this into our talk when we booked the Swiss francs, that we also prospectively looked at how many Swiss franc settlements we want to achieve over a certain time frame. And part of these Swiss franc settlements, if the clients actually fulfill the eligibility criteria given by the tax authority, then in part this is tax deductible. We also recognize the PLN 198 million deferred tax asset. That's positive obviously for net profit, and that explains why net profit is at PLN 834 million. I would like to now jump into some of the details, and as I said, I would like to be short. Let's look at the loans. Briefly, Cezary has said that was a bit up over the year but down in the quarter. Why are they down in the quarter? Well, on corporate, that's more seasonal because you see the full year was actually up in corporate. Inflationary environment we discussed means that clients in general have high demand for loans. We try to be selective, but there is always year-end effects with, for example, paying back overdraft facilities and other things, because you also saw that in December 2021, the year before, the PLN 47 billion was also a very low print year. On retail, what needs to be also explained and understood is you see here that the loan volumes went down, but as we deduct the Swiss franc legal reserves, most of which from the loan volumes, part of that is stemming from the Swiss franc portfolio. You see that in more details. We don't switch to this, but those who want to look, page 47, you see that the whole FX portfolio went down by PLN 3 billion over the year. And also in the last quarter, that effect makes up for PLN 1 billion. It's a bit less than PLN 400 million or roughly PLN 400 million on the legal reserves, but there's also PLN 600 million FX effect. That also needs to be seen in these figures that we correct the carrying values on the balance sheet here. What's always more interesting is the next slide, is the new lending business. There we exactly see what we all expected with the mortgage loans. mBank here is absolutely in line with the market. I think we even gained a bit of market share in that very, very weak mortgage market. We discussed that before, and it's actually exactly turning out like this. Interest rates are rising, affordability is going down. Also, affordability criteria set by the KNF have been actually very, very strict. Plus, let's not forget, the government-imposed credit vacations. That actually means that for us, more than 80% of all clients are under these credit vacations. It makes no sense to sell your house and to move. That means the housing market in Poland is not in the shape where it actually should and could be. That's part of also... I don't know if that's intended or unintended, but that's a consequence of government intervention here. And I think, the banks, but also consumers feel that in what's happening on the mortgage market. Non-mortgage loan sales also down in the quarter by 15%. If you take the overall annual sales, the annual sales is 5% less for 2022 than what it was in 2021, with strong front-loaded into the first quarters. Overall sales was PLN 9.44 billion over the year compared to PLN 9.9 billion in the year before. There, Cezary has mentioned it, we're really proud that out of the units sold in non-mortgage loans, 80% of all units or numbers of contracts have actually been done in digital channel, and out of this 55% in mobile. And that for a universal bank, which is mobile-heavy, I think is, you have to look very long until you find somebody who has actually comparable figures here. Briefly on corporates, we saw the usual year-end renewals. That's always what you have at year-end. Q4 is going a bit up, even though the overdraft usage is going down, but that's also what is expected. You know that on corporates, we continue to be very selective with the exposures. The exposures need to earn a certain return on the risk and on the financial resources we deploy. We always don't only look for loan margins, we want to do other business with the clients, and that you also see in the net fee and commission income we generate. Briefly on deposits. Well, deposits inflows over the year, less on corporate, in the last quarter, but retail deposits are very strong. The strong deposit inflow that obviously then explains together with the mild, rising loans. That explains the 69% loan-to- deposit ratio we were showing. Let's switch to total income. On total income, if you adjust the revenues for the credit holidays, well, the income is actually stable. That stable income I think needs a bit more explanation. On net interest income, asset net interest margin at 403 basis points. So net interest income is at nearly PLN 2 billion, and this still has a slight negative effect of the credit holidays in, because you see that at the very bottom there is PLN -11.4 million. In the final booking of the credit vacations, and you know, we needed to do an estimate over summer. In the estimate of PLN 1.3 billion, we were off by PLN 11 million. I think that's actually quite an accurate estimate. But we in the fourth quarter, booked PLN 40 million more in net interest income, but we released PLN 51 million that we were before booking as negative trading income due to inefficiencies in hedge accounting. In total, it's PLN 11 million in effect, I think that needs to be also mentioned. So roughly PLN 2 billion in NII. Net fee and commission income is weaker in that quarter. You always have this in the fourth quarter. It does not come from the fee and commission income itself. It actually comes from the fee and commission expense. Fee and commission expense is up by nearly PLN 51 million quarter-over-quarter. That is in part due to year-end settlements we have with counterparties. It's also due to sales contests. It's also due to some other external counterparties for which we pay. In general, we view the net fee and commission income for the coming year or for the year 2023, roughly in line where we have been on 2022. My last slide here on cost. Well, on cost, I've said, well, I think what needs to be seen is the higher staff cost that we have in the fourth quarter. To put this into perspective, we had salary raises over the year. We also have more FTEs. We have 270 people more on the payroll, and well, that also pans out over time. So there's a effect from this. And when it comes to performance-related pay, given the CHF 2.3 billion booking we actually did in the third quarter, the performance-related pay we did in the third quarter was extremely low. And there was also kind of a catch-up effect in a very, very strong performance in closing the year. You see this in the quarter, and that also led to a higher performance-related pay, and that is why we ended up with PLN 346 million here. That led to a cost-income ratio, well, reported 42.3%. Honestly, there's so much normalization going on. What do you take out? What do you take in? We can say the engine of the mBank is running definitely below 40%. Below 40% is also our strategic goal. And I truly hope that next year, or for the year 2023, we don't have to talk about too much normalization, because ideally, the interventions that happened in the year 2022 will actually not repeat in 2023. With this, I hand over to Marek. On risk and capital in Q4, I will not spend that much time, since the situation was quite okay, and no significant changes have we've seen. As far as longest provisioning and cost of risk is concerned, that we display on slide 27, you can see that cost of risk was steadily going down quarter- by- quarter, as well as the net impairment losses and fair value changes on loans. We were converging on around 70 basis points at Q4 2022 as far as the year-to-date cost of risk is concerned. That was quite well supported again, second quarter in a row by very good numbers coming from the corporate loan portfolio, in particular, thanks to the very good recoveries from the transactions that were impaired in stage 3, with no significant new migrations to that category happening all at the same time. If you look at the next slide, slide 28, that shows this from a portfolio perspective. Our impaired loan portfolio slightly decreased quarter-to-quarter, 5.8% down. That is PLN 300 million lower as far as impaired portfolio is concerned. Thanks to the active management of the oldest stage 3 cases, sorry coverage ratio, year-on-year, slightly down, but improvement on stage 3 quarter- to- quarter. As far as the non-performing loan ratio, overall and by segment is concerned, almost flat quarter- to- quarter and year-on-year. And last but not least, slide 29, which gives us the summary of total capital ratios and liquidity ratios. Despite of those massive hits into the capital base that we have discussed at earlier slides at length, we are proud to show that we are still keeping very decent buffers above the minimum capital ratios. Actually, we are almost at the same size of buffers above the minimum capital ratios as we were the year before, which shows two things. First of all, the very strong capital generation capability of core bank, of mBank franchise, which we are very proud of, and that has been already underscored by the colleagues before. Second of all, our great capability of actively managing the risk-weighted assets balance sheet shape, and our ability to securitize the risks on the balance sheet to the outside investors, which we were also very active in 2022. So overall, we are showing you the balance sheet that is as healthy as it was year before, despite almost PLN 5 billion hit that we have taken over the course of last year. As far as liquidity ratios are concerned, ample liquidity well above the minimum regulatory ratios, one of the best in class with even small improvements quarter-to-quarter. Marcin, your turn. Good afternoon. Last year ended on a good note, I guess. The growth of GDP was better than we anticipated, but only a bit. It was driven by the fact that tail risks connected with gas supply were not triggered, and it's not going to be, I would say, the story for 2023. This year the slowdown is inevitable. We think that the GDP growth will, would slow to + 0.4%. Risks are tilted to the upside now, but still, there is a lot of going on in the economy, so situation may be very dynamic. One thing is worth to note, we probably had consumers in recession in the fourth quarter, but possibly it was not driven solely by incomes, but by uncertainty. And right now we are seeing that consumer optimism has risen. That's why we think that we may be close to the bottoms in consumer activity and we may see this bottom at Q1 or maybe Q2. Consumers are still supported by very tight labor market. Unemployment rate is at all-time lows. Of course, it has some inertia, but well, the GDP slowdown that is ongoing is rather not going to propel this unemployment rate by more than 1 percentage point, I would say maximum. This year is going to be marked with falling inflation. We are yet to see the peak in February. It will be somewhere between 19% and 20%. Thereafter, inflation is going to fall. But what I think the most important thing, the first phase of this fall, that will be visible in 2023, is kind of mechanic one. I would be very surprised if this inflation was much higher than 10% in the year-end. What counts for monetary policy is the longer-term horizon. What will be happening with inflation after 2023. After that point, given the stability of the labor market and the new cycle that is going to kick in, inflation is not going to fall fast. Therefore, we think that MPC would decide to keep rates at current levels in 2023. When you look at monetary aggregates, you can see that, on the corporate side and also on the consumer side, the direction is clear and it is, it's downwards. At the same time, deposit base is, I would say, growing, steadily. The more, pronounced falls are recorded, in household loans. As you can see, we are now recording, negative growth on annual term. It is possibly not, the bottom, but the bottom will come this year. Turning to, financial markets. We've seen a huge correction, in bonds in Poland. 10-year bonds fell from 9% yield to, 6% right now. I think that the revisit of the highs is rather not possible. And with gun to my head, I would say that in the year-end, yields would be lower than they are now. But in the meantime, anything can happen because the market is quite aggressively pricing in rate cuts at the turn of the year, which, as I said, I don't think they are going to happen. On the PLN side, we see the złoty as still weak, and perspectives for spectacular improvement, I would say, are rather slim. The best we can count on is a minor appreciation of PLN 0.10- PLN 0.15 in the year-end. But still, it is mostly dependent on inflation path. As I said, we are seeing more and more upside risks despite the fact that the market is going in a different direction. So it may be exerting also temporary upward pressure on PLN. Thank you. Thank you, Marcin. And now let me read the questions that we received online. What was the reason of dynamic growth in personnel costs in the fourth quarter of 2022? What could be the growth in personnel costs in 2023? We wanted to compensate our top employees and the performance which has been taking place, you know, during the course of the year. Do you want to add something? Yeah. For 2023, I think the quarters in 2023 will not exactly repeat Q4. So costs of employments are on the rise. We have an inflationary environment, and we would like to continue to be a competitive payer. Thank you. What is the reason behind lower sales of non-mortgage loans? Lower interest from clients at current prices, lower risk appetite from mBank or else? As far as the risk appetite for new lending is concerned, we have actually not changed the credit policy as such. We see that lower appetite of clients for new loans is a market-wide phenomena. You can see this being disclosed also in the industry numbers. What is fair to say is that overall, as far as the latest salaries and inflation data show... There is a squeeze in average purchasing power of the average phone. And as far as consequences of the interest rate increases are concerned, they naturally lead to the lower ability of average client to take on the new exposures. Actually, this is exactly what is meant by the Monetary Policy Council doing the monetary tightening. Maybe on the non-mortgage loans. Part of the underlying trend we have is we also have improved the margins on the non-mortgage loans. So we are selective in all corners, mostly in corporate, but also in retail. Thank you. Can you please discuss deposit beta at mBank? What's current deposit pricing? What rates you are offering? And what are the dynamics between demand and time deposits? What net interest margin construction you are assuming in 2023 and if loan-to-deposit ratio of 69% is not supported for net interest margin management or client acquisition is top priority? That's a very long question. Yeah. So to maybe start from the end. NIM is one KPI, and that's the margin. The other thing is what comes out of it at the end in terms of P&L. So that's something. It's we're not only optimizing NIM, we also want to make money overall. When it comes to deposit beta and discussing this, well, we're not formally discussing this. We're obviously discussing this internally, what we do, but it's not an outside debate we're having. If you look at the underlying dynamics, and that maybe helps in understanding it, the two business lines are actually quite different because corporate customers get faster accustomed to the interest rate environment and the stability also of the deposits and of the deposit margin is actually quite high. And we have over summer especially found a very good way of managing this. The same is true for retail, but you know, in retail and also in corporate, we were late in paying for deposits. And this is why we said we first want to see some outflows. If you look at the slide that's currently presented, I think it's 24, you see that in June, actually, retail deposits went down. Deposits went down a bit because we said, "Okay, we need to, in that environment, try to find out how the market really works, and how the market. There was one element which I mentioned. That was the time when the government- When the government. Went to the market, you know, to top the rate. Yeah. That's one thing, but also our market share went down in that quarter. If you look at the retail composition and things really have changed, look at the slide. You have in green, you have the current and the savings accounts, and it's mostly current accounts, and that is transactional. The part that is more interest rate sensitive and more cost sensitive is the term deposit part that went here up from PLN 8 billion to PLN 27 billion. That's the part for which we need to pay competitively, for which we need to make sure that it ideally stand alone makes sense or in the client relationship makes sense. You might know that in the Polish market you will even see some offers that go up to 8%, for example. That needs to be managed within that part. I think the term deposit part is the one that's more closer to competitive pricing. The green one, still competitive, but clearly in a way that this is operational with us, and it more comes from the client relationship and less from a opportunistic way of shifting money back and forth. The question was very long. I think I, in part, answered this. I don't know if there's any part still missing in this. Okay, good. Thank you, Andreas. We have some questions, several questions about credit holidays. What was the credit holidays participation rate per volume at the end of 2022? What is the assumed mortgage portfolio participation ratio in case of credit holidays provisions following changes in the fourth quarter versus actual level of participation ratio? The participation and the credit holidays is still above 80%. We haven't disclosed it here in the preliminary figures, but it's still above 80%. As I said, in the PLN 1.3 billion estimate, we in Q4 did a final booking of that. We said we did a final booking, and the difference was PLN 11 million. So there's a minimal difference, and you can say that 80% of the volume in mBank which is eligible is actually under credit holidays. What was the second part of the question? Because I think that was something about Q2 versus Q4, but that's answered by the PLN 11 million, or? No. Q2, what is the assumed mortgage portfolio participation ratio in case of credit holidays following changes in Q4 versus actual level of participation ratio? If that question is? What is assumed versus what is actual? Okay. Part of this is obviously... So what we do is clients select to have credit vacation with us, and they can select for up to eight installments, but not every client is actually electing for eight installments. Some people are only electing for four, five, some for eight. As of Q3, this was a bit more than six. We have an estimated value also in this. So it has in part an estimate in that, as 50% of the credit vacations have already passed, because that was the second half of the last year, the amount, the fractional amount of how much of this is an estimate and how much of this we know, the estimate part actually went down. We're quite sure that this is a very good figure. It will change, but most likely slightly because we were also in summer already very well estimating how our clients could behave. Could you please share more details on capital improvement in the fourth quarter? I mean, as far as Q4 capital improvement is concerned, that is actually the outcome of a number of factors because we have received lower capital requirements for the FX/AML regulatory add-on for the Swiss franc-denominated portfolio. Interest rates on the Polish govies were going a bit down, which helped to improve the valuation as well. And last but not least, there is also the impact of the ongoing active management of the balance sheet that includes active reduction of the existing exposure and the securitization itself. Okay. We have also a number of questions about Swiss franc provisions and settlements. So let's look at them. Do you expect upcoming European Court of Justice opinion or ruling to be an important milestone in Swiss franc saga? To say that will be an opinion, you know, it's remote to the final verdict, which, you know, potentially can come early autumn. We are of the opinion, and that has been expressed several times, that capital costs or capital usage, you know, has to be remunerated. We still keep the perspective that there will be some kind of rationalization of the jurisprudence. Obviously, you know, the aspects of our strong beliefs and the legal developments, which unfortunately do not help, you know, to operate as a bank, as a banking institution or banking industry in Poland. Let's assume that the opinion will not be in line with what we expect. Obviously, we'll try to evaluate, you know, the possibilities of the verdict, you know, in the longer period of time. I don't expect that an additional call for instant reaction. I believe that ultimately we'll be waiting for the, for the final verdict, you know, to be to react, you know, through financial apps. Further on this subject, you suggested earlier negative EU court ruling would drive your capital ratio below a regular threshold, implying at least about PLN 3 billion will be hit. Could you please specify that or provide a range of that worst-case scenario? Yeah. In the case that, you know, ultimate ruling will be adverse and, you know, will not push the banks into the situation where, you know, the remuneration of capital usage will not be accepted. And obviously we can slide into the negative capital impact and, you know, potentially also below the capital requirements. That is something that is on the horizon. That has been evaluated, as you know, by KNF. And KNF has done, you know, in a public statement as well as, you know, in the European Court of Justice, this evaluation. You know, it's still not coming with a particular guidance, but I'm just saying that, you know, being 10% participant in the Swiss franc portfolio is some. The capital impact is in the magnitude PLN 100 million, which has been mentioned by KNF, and the current level of almost PLN 7 billion, which we have put aside. You can calculate, you know, how much, you know, potential negative impact it can be. Good? Marcin? Yeah. Obviously in a worst-case scenario, because I think what we need to evaluate, the one thing is, first of all, we have opinion of the European Court of Justice, then we will have a verdict of the European Court of Justice, then we need to see what local courts make out of that, what really the line of jurisprudence is. And then in a worst-case scenario, there might be adverse effects, that will then need to be really seeing how things develop. With penalty. Yeah. Another question. What are your current base case, worst case assumption for further Swiss franc laws provisioning requirements in 2023? Any quarterly run rate? At this stage, I don't think that we know yet. At this stage, we don't expect no significant movements unless there will be this final verdict, which is expected to be autumn, you know, being adverse. Otherwise, I don't think that, you know, we have no requirement, unless there will be adjustments as a consequence of the settlements and the verdicts, you know, from the courts. Because if you look at the disclosures, where at length we described how we approach the current level of provisioning, that is actually the lifetime value of the expected provisions, considering all the available information. As of today, calibrated to all the available external data, of course, with actual level of judgment. We believe that the current number is only PLN 7.3 billion that we have created so far, is the right figure, unless as there is the jurisprudence significantly changes impacting the overall number of cases incoming as well as the loss given the court verdict. You know, everybody is saying something, but from a finance perspective, don't expect that line to be zero. Obviously what's happening, it's a PLN 7.3 billion box which we put in after usage and also after FX effects, it's now PLN 6.4 billion because part of that is in Swiss francs. It's a large estimate. It follows a model. If things realize, we benchmark this against the model, we'll also revisit the model so that even if nothing happens, the line item will have some small life, but not a material life. I think that's a good guidance of how it should end up. And since Andreas alluded to that, maybe also addressing one of the further questions in advance. If you look at the PLN 7.3 billion versus PLN 6.46 billion that you can see on slide 14, the difference comes from to an extent foreign currency movements that Andreas alluded to, but also we need to point you out to the fact that this is already a kind of living number in a sense that the portfolio which is subject to the provisioning changes as it comes to realization of the settlements program. We, as far as we reach out the larger and larger number of clients who agree to settle with the bank, a part of that part of that provisions created in the past, which are provisions for future legal risks and costs actually materializes. It is taken away from future expected losses into the losses which are being realized. For that, for that reason also, you'll see the number which is a bit smaller the previous quarter, despite of the additional provisions which were created in the Q4, because that reflects the currency situation, that reflects this number of settlements done in Q4 and also the verdicts which we have received on course of the reporting period. What's your assumption for the percentage of FX loans sorted via out-of-court settlements? We have provided in the disclosure the detailed numbers with respect to the assumptions to that model. It has not changed compared to the Q3 and is slightly above 50%. A question about the number of new cases. In case of number of new law cases, presentation shows net, which if we adjust for settlements and final verdicts, have also jumped substantially to some 3,000 in Q4 from some 1.7 in the first quarter. Can you confirm? No, the math should be done actually a bit differently. If we can go to slide 15, this shall not be actually adjusted for settlements because the settlements, which, as we speak, we are doing largely to the clients as of today, or at least as far as the Q4 is concerned, we were primarily reaching out to, I'll say, low-hanging fruits. That is the clients which are not yet, or not in court with us at the point of settlement. So the actual number of new incoming cases in Q4 is the sum of what you see on the right, sorry, left-hand side of slide 15, at the top and the bottom of it. We have received 600 final rulings, which are taken out of the gross numbers. And the gross number of new lawsuits in Q4 is around 1,300 new lawsuits in a quarter in Q4, which is visibly lower than what we have observed in the past quarters. If you look at the left-hand side of the top left-hand side chart, the one with the red bars, the first numbers are actually gross, because there were almost no final verdicts yet. As you can see on the slide, at some point, the new coming lawsuits were almost close to 1,700 a quarter. Since that peak that was around Q2, Q3 2021, that we see gradual slowdown of new incoming cases quarterly, which we know as well is not exactly the case for everyone in the industry that is facing the same troubles. As far as we are concerned, as far as 2022 is concerned, we were getting on average in a quarter slightly more than 1,300 a quarter. Are the plaintiffs out of clients who already repaid loans a common practice? It's not a common practice, and so far we have also seen a difference in the jurisprudence. So that's why, as it comes to the offer of the settlements, as highlighted on slide 15 and also outlined with the disclosures, we are offering the settlement program to the clients that have active loans, those that have not yet repaid that loan in full. Okay. Let's move to other subjects. What is the probability that we see another credit holiday program? Is there a chance that we see a reversal of the negative NII effects from the credit holidays booked in 2022? Maybe I will, I will start with the first part of that question and I hand over to Andreas for the comment on the financial aspects of that. As far as the risk of the new loan holidays is concerned, I would say it's primarily in the domain of political forecasting. It's not really a financial forecast. Also as far as mortgage loan moratoria that were announced last year are concerned, they were offered without any kind of income criteria. They were offered universally to everyone, including those clients that were even having very low fixed rate mortgages that were actually totally immune to the interest rate increases. As we have seen also, looking at the statistics of the overall population of the clients that taken the benefit of that moratoria, most of the clients were actually not in the financial need of getting one. It's difficult to speculate because it's primarily politically driven. It's not really driven by the financial necessity of the client to receive those moratories. My understanding is that there is more and more understanding that, you know, the way it has been structured and offered to the clients is problematic. I think that that's pretty vocal position of the central bank. I think that KNF was making its comments, adverse comments as well and I'm of the opinion that that will be a surprise to me that, you know, it will, you know, it will be adopted in the same type of format. There has been a bit of speculation in the media with respect to the possibility of the extension. So far, we consider this to be in the domain of speculation. To those from the audience that have not seen the comment of the National Bank of Poland of today as well, they were quite clear that basically they do not support the idea and they consider this to be harmful for the banking system if extended. On the question with the financial effects, as I said before, it contains estimates in it. But the estimate is smaller than it was when we did the first-time booking, because also 50% of the time has passed of the whole period, and some clients have asked for obviously for things that happened in 2023. Wherever there is an estimate, then at one point you have a final one, so you have to book something. It will not be exactly that figure, but we don't expect any material changes to and to the upwards or downside here when it comes to the negative NII. So all effects from credit holidays are behind us in 2022, and 2023 is materially clear of the credit holidays effect. What is the outlook for risk costs in 2023? 2022 was extraordinarily good as far as the risk costs are concerned. Concerning also the fact that we have successfully worked out some of the older exposures. In slide 53, we provide a brief outlook on how do we see the quarters ahead. As far as the loan loss provisioning is concerned, we remain slightly negative due to the combination of the two effects. The one is financial standing of the borrowers that we expect is likely to be impacted by the stagflationary scenario that Marcin described earlier, which you can see briefly summarized on the left-hand side of slide 53. And also what is not to be forgotten, that the Russian invasion on Ukraine continues as we speak, and is also not to be taken out of the picture that this geopolitical situation can also influence in some shape or form the creditworthiness of the clients and the sentiment on the market. So we consider 2020 to be exceptionally good number as far as cost of risk is concerned, and we keep on maintaining our outlook of 90-100 basis points for 2023. Thank you. I think the last one. What might be the value of MREL issuances in 2023? Yeah. We definitely want to issue in 2023. We want to do one to two issuances, most likely in euros. You know, we did a successful euro transaction, 1.5 years ago, EUR 500 million. We think EUR 500 million is also a good ticket size. What we're aiming for is something between minimum EUR 500 million and up to EUR 1 billion during the course of the year. Yeah. One last one, last question. In the already created provisioning for Swiss franc portfolio, what is the assumed probability of receiving remuneration from capital? That's also in the disclosure notes. What we have in the scenario of invalidity, we have a split of 70% to 30%. So 70% probability that we actually receive remuneration on capital, and a 30% probability that we don't receive remuneration on capital. Difficult one. Thank you very much. Thank you for your questions. We've answered all of them. On the spot. On the spot. And maybe you have some final remarks. We felt, this will be a difficult year because the political environment in Poland is complex, at least. The discussions which we had and the questions which have been raised, mostly in terms of credit vacations is just confirmation of yourself and the market that we can. There is a lot of unpredictability in the environment. It's easier to predict, as Marek has said, you know, what can happen in our balance sheet, you know, on our P&L, as long as there are not too much political interventions. One thing which, you know, has been discussed already, and I have to say that the problem which we have tackled is one, is the unpredictability, and the second is overall collapse of the paradigms of functioning of the law in Poland. I think that that is something what is a very difficult way to manage under the circumstances. This is related to the contractual arrangements. This is very much over usage of this some of the legal clauses, and I would say pretty active specialized legal firms, which, you know, try to undermine a lot of things which are structurally important for the banking sector, including also, you know, the discussion which has started to emerge around the LIBOR treatment. All these issues, they should be on the top of mind of the regulators, also central bank and Stability Board. And you know, this is something what both the banking association is trying to push. You know, that creates, you know, less stable environment in which we operate. Under this circumstance, I have to say the business model which mBank, you know, represents or has built over the years, as it was witnessed or confirmed, you know, in this presentation, is very strong. Obviously, this is very unfortunate that, you know, a lot of energy is being spent on issues which do not create value for the clients. Would you like to add something? Thank you, Cezary. I will only add that our annual report will be published on the second of March. Thank you very much for your attention, and have a nice day. Bye-bye. Thank you.