It's 11:00 A.M. we can start. My name is Agnieszka Dowzycka, and I'm the Head of Investor Relations in Santander Bank Polska S.A. I would like to welcome you at the presentation of financial results, preliminary non-audited financial results for 2021. Today's presentation will be given by our CEO, Michał Gajewski. Maciej Reluga, the CFO, is present with us, as well as Wojciech Skalski, who is in charge of the financial accounting area. President, over to you in a minute. Let me just tell you that you can send your question to my email address or if you use the audio webcast to the link that leads to the question site. CEO, over to you. Thank you, Agnieszka. Good morning once again. Let me welcome you at the summary of our non-audited financial results for 2021. From the point of view of the Management Board, we can say that our last year was really good in terms of core banking business. Of course, the pandemic impacted our performance as the group, though, to a lesser extent than the last year. We responded to the development on the market. Of course, there were also some sector-wide challenges. We, of course, took relevant actions in that case. We hope that upcoming months will fuel business growth and that the credit volumes will gain the momentum and that the demands for loans will be higher than last year. Now let me move to our performance. Let's start with slide number eight. Numbers of clients. We service more than 7 million clients, 5.4 million of which in Santander Bank Polska. Together with Consumer, we have more than 3.2 million digital clients, which is a growth by 10% year-on-year. When it comes to active mobile users, we have 20% more of these clients because we have nearly 2.4 million of such clients now. Deposits. The deposit portfolio was higher than PLN 185 billion, increasing 8% year-on-year. Gross loans increased by 4% up to PLN 154 billion. Assets grew by 7% up to PLN 245 billion, and customer funds increased by 8% to PLN 203 billion. Slide nine. Let me briefly comment on our performance in 2021 first. The group earned a net profit of PLN 1.1 billion, and that the net profit increased 7%. Having stripped off non-recurring items, this has grown by 36%. Any details when it comes to the comparability of data is available in the report and the presentation. Total income at the end of December was PLN 9 billion, increasing by 7%. Net interest income, PLN 5.9 billion, increasing by 1%. Net fee income, nearly PLN 2.5 billion, growing by 16% year-on-year. Cost of credit risk, PLN 1.1 billion, decreasing by 36% compared to the last year. Costs overall were driven by provisions for legal risk attached to FX mortgage loans and increased by 22% year-on-year. I'll tell you more about it later on. Of course, I will also discuss more detail the performance in quarter four later, but now let me highlight the key items. In quarter four alone, the group earned a net profit of PLN 193 million. In that quarter, we also raised provision for legal risk attached to FX mortgage loans of PLN 561 million, and we informed the market about that in our current report. Net interest income, PLN 1.7 billion, increasing by 20% compared to quarter three. Of course, that was driven by interest rate hikes. Net fee income increased by 1% compared to the previous excellent quarter. It stood at PLN 641 million. Total income, PLN 2.5 billion, increasing by 13% compared to quarter three. Coming back to our annual performance, ROE 4.7%. On a comparative basis, 9.3%. Let me remind you that we have this significant capital surplus of PLN 10 billion roughly. That impacts that ratio. At year-end, at the end of December was 16.63% PCR, 18.38%. These ratios reduced as compared to what we saw at the end of quarter three, but that was driven by changes in the valuation of our own funds, driven by change mark to market of instruments paralleled by growth in risk-weighted assets as a result of lending growth. These two elements impacted the reduction in our capital ratios both on a consolidated and standalone basis by 1.8 and 2.4 percentage points respectively. Okay, let us move on. Despite that fact, we still have very strong capital position and capital surplus, so we can be certain as to our future safe operations. Let us move now to slide number 11. A little bit more about clients. 3 million active clients in digital channels. 2.7 million of these clients are retail ones. SME digital clients increased by 7%, and for corporate companies that was the growth by 4%. The number of mobile application users is growing. In retail segment, this is the growth by 18%, and we have growth in other segments. When it comes to the number of transactions in the mobile banking, we had more than 160 million transactions in retail and 13.6 million transactions in the SME segment. This is nearly 50% more than last year in both segments. On slide 12 and 13, we present information about our new products and services introduced in quarter four and about our educational activity supported by our bank. As you know, we enabled BLIK contactless payment solution and ECO cash loan, where we reimburse clients for the fees if they allocate funds from the loan for the assembly or purchase of a green product. We also supported our SME clients in digital transformation. We conducted webinars together with Google. We had cybersecurity campaign, and we had some special offers supporting online shops. We actively supported large corporations. We, for example, streamlined the lending process. We introduced pre-limits and made some solutions for iBiznes24 like biometrics in mobile signature and some solutions for managing standing orders. Now, let's move on to what happened in the business leg, in the sales. Let's start with the retail. That's slide number 14. About mortgages, we had very dynamic quarter. Throughout the entire year, we sold mortgage loans worth of PLN 9.6 billion. In quarter four alone, that was PLN 3.2 billion. As compared to quarter four, 2020, that was 1.5 times more mortgages sold. Quarter-on-quarter, that's 13% growth. December 2021 was record high because we sold almost PLN 1.2 billion worth of mortgage loans, and that was the best monthly result in history of our bank and the best result on the market in December. Now, cash loans. Throughout the year, we sold PLN 7.4 billion worth of cash loans. In quarter four alone, that was over PLN 2 billion, and so far that was sales peak since quarter two, 2020. With that level of sales in quarter four, we are very close to our pre-pandemic volumes, and we hope that soon we will reach those levels again. On a year-on-year basis, that's a growth by 49% and 3% growth quarter-on-quarter. Please note that we increased sales via remote channels in 2021. That sales through remote exceeded 44%. We sold PLN 1.1 billion worth of net investment funds, and TFI assets at the end of Q4 represented almost PLN 18 billion. In SME segment, we achieved excellent performance in the leasing leg. In Q4, the sales grew by 36% as compared to Q4 2020, and that leasing sales was PLN 978 million. Quarter-on-quarter, that's 10% growth and year-on-year growth of leasing sales is 36% and in figures that's PLN 3.6 billion. In Q4, also the sale of credit facilities to SME segment remained similarly high as in previous quarter. In the entire 2021, the growth of SME loans was 7% and the sales was worth PLN 5 billion. In the Business Banking, the loans grew 2% year-on-year, and the sales of credit limits grew by 32% year-on-year. We had excellent results in our services to exporters. The turnover on the FX platform grew by 38% year-on-year, and the use of trade finance limits grew by 25%. Also, our transactional banking fees grew by 38% year-on-year. In the Corporate and Investment Banking, we witnessed growth of income on the capital markets, and we also increased income from mergers and acquisitions advisory. We also energy sector transformation by financing photovoltaic and. On now to slide number 16, where we present gross loans in Santander Bank Polska and in Santander Consumer Bank. The portfolio shrank by 3% year-on-year. In effect, in total, on the consolidated basis, we have 4% growth year-on-year up to over PLN 154 billion. In the retail and SME segment, the sales were presented before. When it comes to large corporations, it grew 10% year-on-year, and that's one of the highest results, and demand for those short- and long-term loans, especially for large corporations, will continue to grow. The leasing portfolio, excellent performance. The portfolio grew year-on-year to almost PLN 12 billion. Company recorded growth of turnover. It grew by 18% year-on-year, and its portfolio increased by 23% to PLN 7.6 billion. Our macro outlook assumes that in terms of total loans, 2022 will bring the growth of almost 7.5%, including two-digit growth for enterprises and by 15% for individual clients. Our plans are very ambitious. We plan to outpace the market, and we hope that demand for loans will grow. Let us move to slide number 17, deposits. We can see the growth by 8% year-on-year. At the end of December, that was more than PLN 185 billion. Retail and business deposits grew by 8% year-on-year. On a quarterly basis, they grew by 4% and 5% respectively. When we compare year-to-year, the deposits increased by nearly PLN 14 billion. We can see, first of all, the growth in savings accounts and in current accounts. Yet this was followed by the decline in term deposits. The other investment funds in our TFI increased by 9% year-over-year. Now, profit and loss. Net interest margin and net interest income. In quarter four alone, the net interest income was PLN 1.7 billion and increased 23% year-over-year and 20% as compared to quarter three. The annualized net interest margin increased by 33 basis points at the end of December, up to 3.07%. There were a few reasons for that. First of all, the growth in interest rates, the low interest expense on deposits, the fact that we accelerated the sales of cash mortgage and corporate loans. Another reason was the growth on yields on the securities. In upcoming quarters, we expect further improvement in NIM. Looking at 2022, what the market expects further interest rate hikes. After the recent change, we published a current report in which we quoted the impact on net interest income of those recent changes. These are major changes because it's from PLN 1.2 billion to PLN 1.33 billion for the bank. For Santander Consumer is from PLN 110 million to PLN 120 million zlotys. This is a really huge impact. Slide number 19, net fee and commission income. We can actually brag about that a little bit because it is nearly PLN 2.5 billion growing by 60% year on year. This was a result of growth in the business as well as changes that we made to our schedule fees and charges already in December 2020. In quarter three, the fees stood at PLN 641 million, growing by 1% quarter-on-quarter, which was a really good one. You can see that the growth was recorded under all lines, both in retail and in business banking. If we look at quarter four alone, first of all, we can see the growth in card fees, distribution fees and asset management fees. Slide number 20, income. Total income PLN 9.2 billion, growing by 7% year-on-year and 14% quarter-on-quarter. Of course, the net fee income increased by 16% year-on-year. We also posted income from dividends and that was PLN 113 million in 2021, much better than in 2020 when it was PLN 23 million. Total income in quarter four was PLN 2.6 billion growing by 14% compared to quarter three. Operating expenses. Slide number 21. Let me start with staff costs. They increased by 17%. This was driven on the one hand by the fact that a restructuring provision was created in Santander Consumer Bank. Another reason was the growth in pay in the bank that impacted the entire quarter four. We also topped up the bonus accruals for 2021. Administrative expenses increased as well because we had bigger business activity, but also that was a result of inflation and the pressure on costs in certain areas of operation, such as buildings maintenance or third-party services. As a result, the administrative expenses increased by 9% quarter-on-quarter. Of course the biggest impact was made by provisions for legal risk. In quarter four we created these provisions in the amount of PLN 459 million on the consolidated basis. The provisions line was also impacted by FX differences which impacted that by PLN 57 million. All in all, the total impact of these factors on other operating expenses was PLN 611 million. Of course, we do not change our approach to costs. We still strive to be cost efficient. Let's move on to the next slide, 22, which presents provisions. On the consolidated basis, last year loan loss provisions were PLN 1.124 billion and that shrank by 36% year-on-year. That change resulted from the fact that situations of our clients stabilized. The credit portfolio grew. As you know, we also resigned from keeping the management provision for COVID-related risk above the figures deriving from our risk models. We told about that in previous quarters. At that time, we also spoke about partial inclusion of the impact of COVID-related adjustments on the models parameters. Last year we topped up some single provisions for non-performing credit exposures that happened in quarter one and repeated in quarter four. Last year, the net balance of provisions was impacted by the sale of non-performing loans in our bank and in Santander Consumer Bank, in total worth PLN 1.407 billion. Total gross profit on the sales of this portfolio was PLN 118 million. To compare, in 2020 we sold receivables worth of PLN 1 billion and that brought us PLN 30 million of gross profit. In quarter four alone, the total net balance of provisions on the consolidated basis was higher by 22% as compared to the quarter three, and was PLN 274 million. Why that figure? Well, in the retail portfolio we had a stable share of credit exposures with some payment arrears and there was a low number of entries to the NPL portfolio. In the SME portfolio, we had a stable level of first view payments. In the corporate portfolio, the net balance of provisions for expected credit losses resulted mostly from the higher top ups in the property segment and in the CIB segment by PLN 20 million and PLN 30 million growth respectively. At the same time, we know that there are few entries to the non-performing portfolio, and in quarter four we recorded significant repayments in the CIB segment. In quarter four last year, as I said, our group sold the portfolio of non-performing credits receivables in the retail and the business segments. In total, the impact on the net balance of provisions was around PLN 41 million in principle. The NPL coverage ratio remained at the safe level of 60.4%, and NPL after quarter four was almost 5%. Obviously, we keep monitoring the impact of the growing interest rate environment, and we also monitor all the cases covered by the expiring financial shield programs related to COVID. Now let's move on to taxes and regulatory costs. They are very high. After four quarters, regulatory costs, so those including BFG, KNF, and National Depository for Securities, they totaled PLN 294 million. In quarter four alone, the costs grew by PLN 34 million. Banking tax charge was PLN 614 million. In quarter four alone, the growth of the banking tax charge was PLN 164 million. In quarter four, the total income tax charge was over PLN 1 billion in quarter four alone. That was a growth by PLN 435 million. Wrapping up the entire year, I say, I can say that overall, we feel it was a good year despite numerous challenges. We gained net profit of PLN 1,112 million. That was growth 7% year-on-year. Net interest income, we are very proud of that. We received PLN 5.9 billion. Net fee income, PLN 2.5 billion. That's growth 16% year-on-year. I can say that we continue to build our business with great determination, and we look forward to increasing our momentum, especially in the credit area. I hope that our activity will benefit from that. Thank you very much for listening to my presentation. Now you're welcome to ask your questions. Now, we already received a number of questions. Let me start. I will try to put those questions in groups. There is a number of questions referring to net interest income with the relevant breakdowns between Santander Bank Polska and Consumer. Does the high growth in the net interest income actually implies that the current estimate of the interest rate impact has been too conservative and could be revised upwards? When we are showing our estimates is not. That's not what we are actually what we are going to do, but this is based on specific assumptions. Of course, we assume the stable balance sheet. Because the balance sheet is not stable and we could see that the assets were growing quite well, we can say that this assumption was conservative because the whole new production that is at new rates brings us a better result and better impact on net interest income. The other assumption behind the stable balance sheet is that we are adopting some repricing of deposits to prevent the outflow of these deposits because we want to keep a stable balance sheet. Of course, it's theoretical because deposits keeps actually outflowing. In quarter four, we can see that the repricing of deposits across the market was really moderate. The assumptions behind the stable balance sheet were conservative. The question is whether they could continue to be conservative going further. As Michał said, we want to grow quicker than the market, so the balance sheet will not be stable. When it comes to the changes in deposit prices, we will see what the market will tell us, how the interest rates will be growing. Our assumption is that, of course, we watch the market and competitors. Our objective is to continue to have a good investment saving proposition for all our customers across all segments. I think that it's difficult to say what the market is going to be in a nine or 12 months period. When it comes to the differences between Santander Bank Polska and Santander Consumer Bank, we should start with volumes. We can see the growth in volumes in the bank, not necessarily in the consumer. Quarter four was quite difficult, so they did not have the effect of the big volumes of new assets. On the liability side, we also know that the market. Well, the deposit side in Santander Consumer Bank is totally different than in Santander Bank Polska. The changes and dependence on the market and consumer is much bigger. I'm talking about the wholesale market. In this context, there were also quite a few questions about the mix of the portfolio and the time needed for the pricing of the portfolio. Let me share with you some statistics. Which part of the portfolio is based on the fixed and floating rate? There was also a detailed question about mortgages. I don't have the data at hand here, but maybe what I will tell you will give you an insight into the key things. Now, first splitting the balance sheet by excluding bonds. About 50% of bonds are floating bonds, and the rest are fixed rate bonds. There was also one more question that emerged, the effect of the bonds repricing and its implications for capital. The growth in the bonds portfolio and this share of fixed rate bonds portfolio, plus the fact that the major part of that portfolio is in the hold to collect and sell model, this impacts all that. Coming back. For bonds is 30/70. For the rest of the portfolio we can say that the fixed rate portfolio is really small, just a few percent. While the vast majority of the portfolio, more than 90%, 95% roughly, is at a floating rate. Looking at the floating rate, within this floating rate, we should really check the various tenors underlying the pricing. More than 50% of the floating rate is three-month WIBOR. More than 30% is based on shorter tenors than three months. The longer tenors account only for a few percent of the whole portfolio. We can see that the repricing here will be quite quick. I think that saying that I addressed already a couple of questions. Madrus also a question about the settlements and with Swiss franc borrowers. Here we are all the time at the stage of testing solutions, both those proposed by KNF and our own in-house ones. We have not taken a final decision. We are tracking the market. We keep talking to our customers about it. We are testing the reactions to different proposals to conversions to zloty and so on. Of course, an important element here is what the Court of Justice of the European Union will tell in its judgment on the reimbursement of the cost of capital. Given all that, and the fact that there is no decision on the common settlement program. Well, I think that I mentioned the staff costs in the presentation. Well, that refers to other questions. I think that other questions refer to a couple of things. FX differences that was already explained. Of course, legal provisions are higher, and this is the effect of FX differences, roughly PLN 60 million. This is actually raised in other lines because that's hedged. There are some more one-off factors that emerged there. Nearly PLN 55 million is from the adjustment of rental costs. There is also a few million driven by changes in other assets. FX differences plus these two adjustments actually explain this difference of PLN 100 million. The question is what the bank expects when it comes to the amount for different types of loans. We think that loans overall will grow by 7.5% for individual clients. For 5% for businesses. This was going to be a two-digit growth and we want to grow quicker than the market here. Can you share your thoughts on the sensitivity of the cost of risk in the higher interest rates environment, as Maciej said? Well, maybe let me answer that. The same questions were asked a quarter before, and we told you that we will come back to that. We actually estimated the impact on higher interest rates on what the market is now pricing in. It's at 4%. We combined this with the effect of higher costs of maintenance, which are especially important for businesses. What I mean are higher energy and gas prices. Taking into account all those factors, we are concluding that the cost of credit risk in 2022 might be similar to what we saw in 2021. As a result of that exercise, we identified the most vulnerable clients, and we start talking to them. We try to minimize the risk of their situation deteriorating. When we are talking about the cost of credit risk at the similar levels in 2022, we already take into account all those effects. This might be estimated at PLN 100 million. Probably we will not be wrong if we split that 50/50 between the result of higher costs and higher interest rates. For high inflation and higher rates, most likely the cost of credit risk in 2022 would be lower than in 2021. That as CFO said a minute ago, in 2021, we had a few big top ups for the existing NPL. That took place in quarter one and in quarter four. We were topping up those provisions. Of course, there might be a question, what next? If the interest rates increase not to 4% but 2%, 5% or 6%. It is difficult to answer because the biggest sensitivity would refer to mortgage loans. We know that the mortgage loans are those which are paid back quite well because clients reduce other expenses and pay back these loans. The question is, what should be the assumption on the growth in remuneration that will neutralize the higher interest rates impact? This is difficult really to make such estimates because we haven't seen such a development for a long time. Okay, that's all about the cost of risk. There were a few questions about that, but I think that this addresses them. Now, share of mortgage loans on fixed rate. The share in the balance sheet. Maybe I'll talk about their share in the new sales because that's what we focus on. The new sales of mortgage loans, 20% of that was represented by fixed rate, previously 15%. What else? Cost of risk. I've spoken about that. Given the current interest rates, do you see or notice higher propensity of clients to repay loans? Well, maybe not increased propensity because previously, they were... Those who were repaying were repaying. The environment has impacted that to a very limited extent, I would say. We'll see what the future brings. Obviously, the first signals come from those segments where customers keep higher savings. What's the impact of higher fees for surplus deposits on monthly income? I suppose that was several, over PLN 10 million. Not that much. In a different interest rate environment, the surplus of liquidity is less severe, I would say. I suppose that they will diminish going forward. There was a question about valuation of instruments, valuation of bonds. This 1.8 reduction and its impact on the capital ratio. 1.4 comes from valuation of bonds and rest is RWA. What else? We have spoken about Santander Consumer Bank. There's a question about retained profit and about dividends. Well, we have non-audited results. If the ratio maintain, then we should fully comply with the conditions after Swiss Bank loan adjustments. It will be 30%. 50% of profit 2019 and we should consider these dividends already paid. Answering the question on the potential payout of dividend, we keep talking to the regulator. We know that KNF has not excluded the possibility that the banks could pay out the retained profits in the form of dividends. We'll see what will be the final decision. Our policy remains the same as you suppose, we will attempt to maximize dividends paid to shareholders while keeping the banks safe and secure in the challenging environment whilst increasing our assets, obviously, in the light of potential risks that may emerge at a certain point. In the meantime, I have sent you this question. What does the bank expect from when it comes to operating costs? Any actions to counteract the growing inflation? As I said, we want to keep the cost discipline very tight, as I said before. Obviously we know what's going on with the inflation rate, and we know how the cost of service grows. We know the conditions of the labor market. We monitor the situation on an ongoing basis. We gather information in this respect, and we compare our costs to the market median. When it comes to costs, it's not going to be an easy year for us, definitely. We'll keep doing our best. When it comes to costs, it's worth monitoring or analyzing 2021. When comparing 2021 to 2020, we should select those items which we manage closely. These include BFG costs and costs of legal provisions. That will answer the questions concerning our cost discipline. Assuming that the average annual inflation will be maybe 3% higher than the present one. In the meantime, we received a question about reduction of the capital ratio. Is it negative other comprehensive income? We said that, yes, it, these are connected. Well, this seems to be all. Agnieszka, anything else? Let me confirm. I don't have any more questions. This is all. If anything comes to your mind later, of course, please contact us, especially that in a few weeks time, the full annual report is going to be published and maybe then some things will clarify, or you might have more questions. Thank you very much for your attendance. Goodbye.