Hello, ladies and gentlemen. This is 10:30 A.M., so let us start. My name is Agnieszka Dowzycka from Santander Bank Polska. I'd like to welcome you at the presentation of the financial results for the H1 of 2021. Together with me, there is the CEO, Michał Gajewski, CFO, Maciej Reluga, and Wojciech Skalski from the financial account team. As I have said, my name is Agnieszka Dobrzyńska, and I am in charge of investor relations. CEO, over to you. Hello, ladies and gentlemen. This is Michał Gajewski. Today, this is yet another time when we're meeting here in this remote form. I hope that starting from the next quarter, this is conditioned by the pandemic situation. I hope that we will make it. I'd like to start my presentation from saying that from the perspective of the bank's core business, the recent period of six months can be deemed as successful. The economic situation has been stabilizing. We can already see some harbingers of the revival. Credit volumes still remain under pressure, especially in the corporate sector. This will improve over time. We are hoping to see some improvement, and we're looking with optimism into the next quarters. Before we comment on the results, I would like to mention our charity fundraiser, We Will Double Your Impact. We run it together with our customers and employees. This time, we supported 16 children psychiatry centers, to which we donated a total of PLN 2 million. You can get more details about this fundraiser on the slide number five. Now, let us go to the financial performance, slide number nine. As a group, we provide services to over 7 million customers, out of which over 5.3 million customers in Santander Bank Polska. In total, together with SCB, we have almost 3 million digital customers. Deposit portfolio went up by 4% year-on-year and stood at PLN 173 billion. Gross loans flat at PLN 148 billion. Assets are on the rise. Customer funds up by 7% year-on-year to the level of PLN 192 billion. In terms of assets of the entire bank, this is the amount of PLN 231.4 billion. Now, let us go to the slide number 12. I'm sorry, this is slide number 10. This is slide number 10. Just like in the previous quarters, we had several events that influenced the underlying profit. Of course, the details can be found in the presentation and the report. When we talk about the underlying profit, we take into account two important factors, and these are the BFG premiums as well as provisions for legal risks related to FX mortgages. At the end of June, attributable profits stood at PLN 374 million. In underlying terms, it went up by 8.7% year-on-year. In quarter two only, it stood at PLN 223 million, which was 50% more than in the previous quarter. Net interest income stood at almost PLN 2.8 billion. It was lower year-on-year. This drop stands by low interest rates and low demand for credit. Fee and commission income was over PLN 1.2 billion. It was 18% higher year-on-year, which is a solid result. Total income stood at almost PLN 4.4 billion, 1.5% higher year-on-year. Return on equity was 3.8% and 7.5% in underlying terms. We have a very strong capital position, much above the requirement, our Tier one capital exceeded 19%, and TCR was about 21%. I'm going to reiterate that every quarter, I think, that the group has a substantial capital surplus. It is extremely large. For now, for the group, it is almost PLN 13 billion, for the bank itself, it is almost PLN 14 billion. I think that there may be questions about the dividend payout, let's not talk about it right now. We will take this potential question in the Q&A session. Let us go to the slide number 12. On this slide, you can see the activity of our customers broken down into specific segments. Each quarter, the number of users in remote channels is on the rise. This is 8% year-over-year, up both in retail and business segment. The number of mobile users in retail is 18% up 15% in SME and 19% in corporate. The number of transactions in mobile banking has been up over the recent months by 48%, and in terms of acquisition to business is by almost 60%. I think that this is not major surprise because the customers are visibly using remote channels more and more eagerly. On slide number 13 and 14, we are showing new things on our offer. We keep developing our position. We have organized educational activities. Let me just mention a couple of things. The biometric solutions to have mobile authorization of transactions. Life insurance, for example, with the extended cover for photovoltaic devices. In the case of stock traders, we introduced the new way of verifying their identity when opening an account using the selfie. We also introduced e-log and eLeasing solution. There's also an option to take a business loan in a mobile application. In the public sector, we've been reinforcing our position and subsequent local authorities using the services the bank with us. Let us move to our financial performance, and let's start with the financial data. Slide 15, retail banking. Just like across the market, the sales of our mortgage loans is on the increase. In the first six months of the year, we sold loans worth 3.5 billion zł. In quarter two, it was 2.2 billion zł. Year-on-year, this is a 76% and 36% growth quarter-on-quarter. June alone was a record high month with nearly 800 million zł of sold mortgages. Cash loans. They're on the increase as well. In the first six months, we sold cash loans worth 3.4 billion zł. In quarter two alone, it was 1.8 billion zł. So far, this is the highest sales since the beginning of the year. Year-on-year, the growth is 44%, and the growth quarter-on-quarter is 15%. When it comes to the sales through remote channels, the sales is 44%. The sales of net investment funds stood at 2.4 billion zł. It slowed down a little bit in quarter two, but this was still 700 million zł. This was one of the best results on the market. The assets under management at the end of quarter two stood at nearly 19 billion zł. When it comes to SME customers, we are very happy with the sales of leasing and the sales of loan products. Because we sold products worth 1.3 billion zł. When it comes to business banking, even though the demand for loans was lower, we saw an increase in the sales of credit limits. We also saw good performance when it comes to services to exporters. We saw 4% increase in the turnovers on the FX platform by 4% and 42% growth in trade finance. In corporate and investment banking, we doubled our revenues on the capital market, and we also saw a robust growth in income from advisory provided at mergers and acquisitions. We saw growth across all business lines. Slide number 17, gross loans. Across the six months because of the pandemic and the support programs, the demand for loans was subdued. The gross loan portfolio in the bank increased slightly but in secondary consumer banking decreased by 8% year-on-year. On a consolidated basis, we saw a slight decrease down to PLN 148.4 billion. I've already mentioned the sales in the retail segment. In the SME, we can see the growth in the loan portfolio, not as dynamic as in retail, but it's still 5% year-on-year and 4% quarter-on-quarter. This is because of the better utilization of the existing credit lines. In business banking, loans are more or less flat, but in the segment of the largest corporates, the lending increased by 3% year-on-year. The leasing portfolio has increased by 5% year-on-year up to PLN 10.8 billion. The value of net sales stood at PLN 3.3 billion, increasing by 47% year-on-year. The factoring company also saw a growth in its turnover and its portfolio increased by 27% year-on-year. What makes us optimistic is that business clients are more and more willing to talk about new lending. There is a bigger and bigger interest in credit facilities. As I said, this makes us optimistic when it comes to the future. Our outlook for the growth on the market, in the sector is 4.8%, including 6% growth in business funding. Let us go to the slide number 18. The customers' deposits went up by 4% year-on-year at the end of June, stood at over PLN 173 billion. This stems from the yearly increase in retail deposits by 4% business deposits by 4% as well. In annual terms, deposits went up by almost PLN 7.3 billion. Term deposits are going up very dynamically. Investment funds are going up very dynamically, 44% up year-on-year. This stems from record high net sales, also the low base reported last year. Let us go to our P&L. Net Interest Income and Net Interest Margin. After the H1 of the year, Net Interest Income stood at almost PLN 2.8 billion. In quarter two alone, it was PLN 1.4 billion and was 2.5% better quarter-on-quarter. In annual terms, net interest income dropped by 10%. Annualized NIM at the end of June went up by 3% and was 2.59%. It was higher than a quarter ago. This stems from several facts. There was a drop in interest cost under deposits due to the continuing decrease in volumes of parent funds, accelerated sales of consumer and SME loans. There was also the negative impact of the growing bond portfolio. As we have mentioned before, we are hoping to see some positive effects on NIM and NII in the upcoming months. Let us go to the slide number 20. Net fee and commission income. I think that this is a very solid one. At the end of June, this was PLN 1.2 billion, up by 18% year-on-year. In quarter two alone, fee and commission income went up by 600 million zł which in light of the visible effects of the pandemic should be viewed as a solid result. The increase in fees and charges is visible in all the lines, both in retail and business banking. Let us move on to the slide number 25. Total income in the H1 of the year went up to 4.4 billion zł up by 1.5% year-on-year and 6.8% quarter-on-quarter. In quarter two alone, we saw an increase of all the other income. Other income lines went up mainly on the back of revenues and gains on FX with 100 million zł posted in quarter two of this year. We're very happy to report core income related to the consumer business activity going up. Let us discuss the cost. Slide number 22. If we look at that picture, if we want to compare apples to apples, there was an increase only by 1% year-on-year. Taking into consideration the inflation level, this is only a slight increase. We have lower BFG premium. Administrative costs are decreasing at a two-digit pace. I would like to mention that even excluding the effect with the premium, we would have a drop in administrative cost by 2% year-on-year. Staff costs went down by 1.2% quarter-on-quarter. We released a provision for bonuses in the last year, in the second quarter. The fact that we are raising this provision this year, this is related to some positive effects that we can see and the profitability that we report. This is why we want to pay the bonus to our employees. Total costs went up by 14% quarter-on-quarter, and in annual terms, they were up by 22%. Increasing costs in quarter two stemmed among others from an increase in other operating costs due to raising a legal risk provision related to the Swiss franc mortgages in the amount of PLN 518 million. There was a breakdown of this amount, PLN 423 million for the bank and PLN 95 million for SCB. Now, let us go to the slide number 23, provisions. In quarter three, we have a drop of 5% and this results from efficient functioning of the portfolio. We reviewed the portfolios. We released EUR 88.2 million of COVID provision. As I said, we have reviewed the model. There are several factors impacting the provision in the H1 of the year. This is the share of credit exposure with a delay in the second quarter that dropped by 5% quarter-on-quarter. There was no need to raise a provision on the performing loans portfolio. Also, we do not observe any specific, any significant downgrades to NPL on the corporate portfolio. Also, we need to mention the shield four point zero that was granted in the total amount of PLN 410 million, out of which PLN 60 million were active. Even though we actually accept the shield, they have to declare that they got the associated income. They actually are capable to repay their liability. We sold also the non-performing portfolio of business and retail loans, PLN 192 million in total in principle. This had a positive impact on our bottom line of PLN 12 million. Of course, we keep monitoring on an ongoing basis, especially any receivables covered by the support program. Also those availed of by the business clients. They will have to settle their annuities under the first PFR Shield. If you look at our fiscal burden, slide 24, the regulatory costs in the first six months were PLN 225 million. Contributions to BFG, the National Depository for Securities and the like. The banking sector in the first six months took a PLN 300 million on the corporate income tax was PLN 354 million. This was a big charge to our bottom line. Summarizing our performance, slide 25, it was a good six months for our bank. Our economic environment even though it improved, still makes us to be very agile in everything what we do to respond flexibly to any new development. Especially when it comes to funding it. We can see the higher activity of our clients. We are rebuilding our business. We do hope to see a bigger pace of growth in the lending area. We are still uncertain when it comes to the FX loans, and we had to increase our provisions. The macroeconomic data. This is actually confirming that we are bottoming out. The social sentiment is improving, and we're optimistic about the upcoming next half year. Now it's time for Q&A. Go ahead. We have been receiving questions already during the conference. I'd like to start. Fundamental groups. I'll start from what Michał has said about the principal and the dividend payouts. We've got a question about the payouts, whether the likelihood of a 30% payout is still big. Whether there is some likelihood of that. We are talking about the 30% of the profit in 2020. As Michał has said, we think that we have enough principal for payout and for covering some unexpected risk in the future. When it comes to the payouts, our intentions do not change, and we want to pay the dividend in line with the regulator's recommendations. No formal decision has been taken, and of course, if there is no formal decision, we'll have a current report. Due to the legal structure of all the process, according to which we have a dividend fund, it is crucial to examine the interim statements. This examination will start with no delay, and we will inform you about the upcoming decisions. As I have said, our intention is clear. We want to pay the dividend. The second group of the questions. This refers to Swiss franc loans. The question is about the stage the bank is at when it comes to potential settlements with Swiss franc borrowers, and whether the bank expects subsequent provisions to be raised for legal risk and whether we have run a questionnaire among our clients. Let me answer this question. When it comes to the survey, let me start from the last question. 70% of clients are actually interested in entering into a settlement. 21% are not interested at all, and 9% of those clients answered, "I don't know." These are the results of our survey. Of course, we keep examining other proposals of settlement. We've been testing solutions. We are testing this in such a way that we've been building certain functionalities in our systems, in our electronic channels. We are setting up links with the Arbitration Court at the KNF, and this is a big work of our technological unit and also our analytical teams. In this area, we are doing a lot, but we haven't taken yet a decision, the final one. As I said at our conference with journalists today in the morning, we think that two conditions have to be met. First of all, we need to have a wide-ranging market consensus and commonality of the solution. The second thing is legal certainty as to the implications effects of signing such settlements. Our in-house lawyers think that only a settlement signed in common court or at the Arbitration Court at the KNF gives us that certainty as to the legal effect of such an arranged settlement agreement. What about the subsequent provisions for legal risk? Well, we think that the provision charge that we have now, we think they are adequate. We will also see how things are going to develop in the H2 of the year. We will see what is the outcome of or decision of the Civil Chamber of the court in the full composition. Given the today's levels of suits against us, we think that this provision is adequate. Well, the sales of mortgage loans was really strong. Do you think you're going to increase the sales of mortgage loans in the upcoming months? Yes, we think there is a chance to sell more. We want to strengthen the sales. There is a big demand on the market for mortgages. We think it's a chance for us to increase our share. We have many questions regarding the guidance. In fact, in all the P&L lines. Let's put some structure into that. Let's start from the risk charge. There's a question. Why did the bank release the COVID provisions, and aren't you afraid of a subsequent wave? I think that all of us are aware of the fact that another wave of the COVID-19 is very probable. We can see that every subsequent wave of the pandemic contributed to minor effects in the economy. We also need to reiterate what we have written in the report several times. We have post-model adjustment and released the COVID provision, but we took account of all that in loan loss provisions. We review the models every six months, and parameters in the models have changed, so that we can't say that the provisions in the second quarter were lower because the COVID provision has been released. No, it's not like that. We have included all these factors in our models because we have had a review. I think that this is a significant element of the entire picture of the provisions for the second quarter. When it comes to guidance, well, the situation seems to be quite good. Of course, there are some risks, some uncertainties in macroeconomics and specific sectors. I think that we all know about them because we can see that the pandemic is still with us. least of all trends that can be observed in the second quarter. On the performing loans portfolio, the credits with arrears are on decrease. There are no significant downgrades to NPLs. On the NPL portfolio, there were several increases of the coverage, which contributed to increasing the coverage level. The coverage ratio is affected by the fact that there are some decent repayments of the exposures. I can say, to wrap it up, that in fact, this is just too difficult to provide a specific guidance because there are many unknowns. I think that in 2022, we will go back to the risk charge ratio from before the pandemic. We will see what happens in 2022 and in the H2 of this year. So far, the trends have been good, and we can see that reflected in the provisions for the first half of the year. I want to remind you that the first quarter was affected by a one-off, and the provisions were lower. There was some question about the growth in credit volumes in individual segments. As I said during the presentation, the loans are going to grow across the sector by 4.8% according to our forecast and when it comes to business loans by PFR. We think that the dynamic growth will continue in retail and demand for business loans in the mid-cap companies, not small and medium-sized but the bigger companies, is going to revive. There is also a question about the potential for growing our interest income, primarily by increasing our activity levels and with the sales of loans, of course. The whole sector is facing over liquidity, so there will be a lot of competition. We think this is our chance, and we can see opportunities for growing our sales and increasing our market share. We don't have yet really detailed data on individual segments and the growth in individual lines. Let me go back to the risk charge because there are more questions about that. Let's try to talk about that in some thematic groups. What is the current level of COVID-19-related term allowances after relieving the PLN 19 million? This provision in Santander Consumer Bank because they are going to review the provision parameters only in the H2 of the year. We've done it in the second quarter while in SCB this is PLN 31 million, and that's shown in the bar chart on slide 23. This is the COVID-19 provision in Santander Consumer Bank. There is also a question then, which segment was hit most by this review of parameters and what was it about? We also review a whole parameter across the cycle in the midterm to take into account the effects of the pandemic. I think that the most important elements were cash flows here. There is also a question about the dividends in capital. I think we've answered that. Going back to the guidance for net interest income. There's another question. Is there any further room for cost containment especially when it comes to the cost of funding? There are a few trends on the market that we see also. In quarter two, we had the decline of interest cost on deposits, and that was determined by the maturity profile of our deposits, especially term deposits. The financing in FCB. That was maturing in quarter one, and the full effects are visible in quarter two. The deposits with tenors longer than one year were not many. There will be some effects that they will be immaterial, really. An important element is that credit mix on our group, if it is going to improve as we expect, this should improve our interest margin. What we have in mind are consumer loans and SME loans first of all. We can see a clear revival here in those two lines, and we hope that will continue. There was another question related to a bit over liquidity in the sector. Of course, any surpluses are invested in liquid assets, they are yielding less than average. This is a factor that impacts our margin. This is a purely mathematical effect because we are gaining something from that as well. As we've said, we had a positive trend in interest income, and we hope for positive trends in the upcoming quarters. Counting on the revival of lending and keeping the cost under control because we are really doing our best. Fee and commission income. We can see that these lines are very good. In fact, in all the business lines, there are many long-term factors. The factors that stem from the changes in the schedule of fees and charges that we were trying to implement in a very efficient manner, and we were trying to communicate them in a good way to customers. We have double-digit growth in fact, all the lines. We hope that the business environment is going to change in a positive manner. If it does, I think that such good trends are going to continue. There is also a question about the tax rate. Whether there is some specific reason for it being lower versus the first quarter. In the first quarter, it was 37%. Now in quarter two we have 43%. 47% versus 43%. There are two factors behind that. There are some elements of the cost that are non-tax deductible. In the first quarter, there was BFG and legal risk provisions related to FX mortgages. In the second quarter, we don't have BFG and we have dividends of some PLN 100 million. Hence the difference between the second quarter and the first quarter. I think that this may be all, that we have addressed most questions. No. There are no more questions. In fact, I haven't received anything. That's all. If you have any more questions or comments, we are ready to take them. More details can be found in the report. I encourage you to read them. Thank you for your participation and see you next time. Thank you.