I think we're all here, and we can start. It's 11:30 A.M. My name is Agnieszka Dobrzyńska. I'm in charge of investor relations. Welcome everyone to the presentation of preliminary financial results of Santander Bank Polska Group for 2022. I am here with Michał Gajewski, the CEO, Maciej Reluga, the CFO, and Wojciech Skalski, responsible for financial accounting. I encourage you to listen to the presentation, during which you can send your question. You can send it via the link or send them to my email address. Mr. President, I give the floor to you. Ladies and gentlemen, welcome to the presentation of preliminary financial, unaudited financial results. It was a tough year for the entire banking sector, full of unprecedented geopolitical and economic challenge. In such harsh conditions, it was difficult to build enough capital base to become a key driver for the economy or strategic projects such as the energy transformation. I need to highlight, however, that Santander Bank Polska Group managed those challenges quite well, and at many levels, we proved that our business model is robust and well-performing. Last year, we generated PLN 4,353 million of gross profit. The tax levies were PLN 2,125 million. The additional regulatory charge was PLN 2,429 million. Despite this high strain, we closed the year with a solid net profit of PLN 2,799 million. Let us move forward to slide number seven with the general operational data. A few words about our customers. As a group, we provide services to 7.44 million customers, out of which 3.5 are digital customers. Santander Bank Polska alone provides services to 5.7 million customers, including 3.2 million digital customers. Year-on-year, we registered growth in this respect of 10%, and we have 12% more mobile customers. Deposits now worth over PLN 196 billion. This is up 6% year-on-year. Gross loans up 4% year-on-year. Assets 7% year-on-year, with customer funds now worth PLN 209 billion. This is an increase of 3% year-on-year. We're moving to slide eight with financial highlights. Net profit PLN 2,799 million. In Q4 alone, that was over PLN 903 million. Net interest income PLN 9.652 billion. Net fee and commission up 3% year-on-year to PLN 2.366 billion. Total income PLN 12.4 billion. Return on equity 12.1%. In the nominator, we had quite a large which is over PLN 10 billion for the group. TCR for the group 19.27%. Tier 1, 17.54%. I want to highlight our robust capital position and ratio beyond, well beyond regulatory levels. This proves we're well prepared to further growth and o respond to any risks that could materialize in the future. This is a solid result, very good performance, and we are ready to share profits with our shareholders. I will be talking about it in detail later. Slide 10. Our customers numbers. As I said, we have 3.2 million digitally active customers. In retail, that's almost three million customers, 10% up year-on-year. In SME, that's 340,000 customers. That's up 9%. In business and corporate banking, that's over 21,000 customers. That's up 3% year-on-year. I've mentioned we have more and more mobile app users. At the moment, that's 2.4 million. Thathree's up by 12% in retail, 11% in SMEs, and 10% in corporate banking. This of course impacts the number of mobile transactions. In Q4 alone, we had 64 million of such transactions. Very good performance here, both in retail and SMEs. We have rolled out a new mobile app, which we're working on at the moment. We're working on the final functionality. It is now in trial version, and it will be rolled out to our customers this year. Slides 11 and 12. Just the highlights here, we've managed to introduce a digital process for sending out repayment schedule to our actual mortgage borrowers. In SMEs, we have new solutions where business owners can turn their smartphones or tablets into payment terminals. For larger businesses, we implemented a qualified signature. We also have a new agreement framework following the plain language rules. Slide number 13. In the Q4, we sold mortgage loans worth PLN 653 million. We know the situation in the market at the moment that sales are going down for mortgages. Cash loans. Sales worth PLN 2.3 billion. Year-on-year, that's up 15%. We maintain high sales of cash loans also through digital channels. quarter-over-quarter, total sales is more or less the same with a minor decrease. TFI net sales, we had a lot of redemptions, but we see those are slowing down in December. The whole year was not great for this branch of business, and we know the reasons, the uncertainty in the market and the outbreak of the war in Ukraine. SME. High sales of business accounts, 17,000 accounts. High levels in digital channels and e-commerce. High growth year-on-year. In terms of loans products, in Q4, sales went down 5% year-on-year, 2% quarter-over-quarter. Sales reached PLN 1.2 billion. Year-on-year, we see an increase by 1.1%. Business banking. Loans products up 14% year-on-year, and income from eFX platform up by 28%. CIB substantial increase from transactional banking and financial markets as well as treasury services. Slide 15 now. Growth loans. We see an increase at consolidated level by 4% to over PLN 158 billion. BCB, this product up 10%. CIB loans up 9%. We see that this market and sales here are noting significant growth. Leasing growth up 9% year-on-year. Positive trend here. Net value of sales, that's PLN 6.8 billion for leasing. Factoring portfolio. The portfolio shrunk, but the revenues increased by 13% year-on-year. Slide 16. Customer funds. Customer deposits up 6% year-on-year to reach PLN 196 billion at the end of December. Year-on-year deposits went up by over PLN 11 billion. We see growth in term deposits. That's by PLN 31 billion. We see a decrease in current deposits by PLN 3.7 billion. Share in term deposits increased to 29% at the end of December. To sum up, we have excellent liquidity position. LCR was 177.3% at the end of December. For the bank alone, that was over 163%. Now let's move to slide 17. Net interest income and margin. The net interest income was PLN 9.7 billion and the year-end and the quarter alone, it was PLN 2.8 billion. We should remember about one of non-recurring items when we compare quarter-to-quarter, and they were as follows. That is the cost of payment holidays. In Q3, it was PLN 1.357 billion. In Q4, it was PLN 186 million. Overall, in the year, it was PLN 1.544 billion. Another factor was the adjustment of PLN 78 million posted by Santander Bank Polska related to the reimbursement of bridging loans, bridging fees. Having stripped off those items, the net interest income declined by 1.5% compared to Q3. As you can see, the annualized net interest margin in Q4 was 4.94%. On a like-for-like basis 28%. What were the drivers? One of them was the posting of those non-recurring events to the net interest income. All the details, of course, are presented in the presentation. Another driver was the growth in interest expense. Let me remind you that 10 times since the beginning of the year, we increased interest rates on our deposits, responding to the needs of our customers and tracking what is happening on the market. In Q4, we had a very attractive proposition, a special offer for personal customers at 8%. The annual net interest margin was impacted by the acceleration of cash loan sales and corporate loans, but also by the higher yields on securities. Net fee income, slide number 18. They grew by 3% year-on-year. It was PLN 2.6 billion. As I said, it was an increase of 3% against 2021. We viewed a robust performance given the market landscape, especially as the fee expense in Q4 included a number of non-recurring items. In Q4 alone, the net fee income was PLN 690 million and shrank by 7% quarter-on-quarter. We can see here what was the impact of the lower loan sales on the level of credit fees. What was on the upside was that the FX fees and brokerage fees increased and performed really well. FX fees increased 27% year-on-year, insurance fees by 9%, and the same goes for debit cards. It was 12% growth. In Santander Consumer Bank quarter-on-quarter, the net fee income was higher by 21%. Year-on-year, it was lower by 9%, primarily driven by credit card lines and fee expense. Slide number 19, total income. It was PLN 12.4 billion. PLN 3.5 billion of that was recorded in Q4 alone. Having excluded the posted cost of payment holidays, income was flat on Q3 2022. Lower income on other operations was driven primarily by what was happening in the financial markets. In the year, they stood at PLN 163 million, driven by lower trading and revaluation, negative gains on other financial instruments, and by lower income from dividends, given that we sold our stakes in Aviva companies. Slide number 20 outlines operating costs. They increased compared to 2021 by 17.8%. Of course, the key drivers were the regulatory levies, but also inflation and salary increases that we provided to our staff. Having stripped of the obligatory contributions to BFG, contributions to Institutional Protection Scheme and Borrower Support Fund, the group's costs increased by 4.5% year on year, driven primarily by high cost of using IT systems. On the like-for-like basis, having stripped of the restructuring provision of PLN 36 million that we created for the completed employment optimization program, the staff costs increased by 10% year on year. In Santander Consumer Bank, the operating costs stood at 476 million złoty, declining by 6%. The staff costs in SCB also declined by 1% year on year. The cost to income ratio is really good, below 30%, and we would like to keep our effectiveness of operations in this year. There are challenges related to inflation pressure on administration expenses and staff costs, definitely we can view ourselves as a leader when it comes to our effectiveness. Provisions, slide 21. In the whole year, the net balance of provisions was PLN 895 million on consolidated basis, which is 20% lower year-on-year. For Q4 alone, it was PLN 324 million, which represents the growth of 80% year-on-year. We can see the slowing down credit market. We can see our customers spending deteriorate. This is driven by the macroeconomic landscape. The pace of growth in the loan book is slowing down, we can see the growing cost of credit for individual portfolios. This cost of credit still in September was 0.55%, while at the end of December it was 0.59%. The key drivers of the net balance of provisions are as follows. In the personal customers portfolio, you can see a number of downgrades and growth in the downgrades to the NPL portfolio. In the case of the mortgage loans portfolio, this risk is in part mitigated by support funds. In SME, you can see the growth in delinquencies and downgrades to the NPL. In corporate portfolio, we saw one downgrade, significant one to the NPL. The net balance of provisions was also impacted by new management adjustment of PLN 79 million altogether. We also sold part of our NPL portfolio. In the balance, it was PLN 150 million, with the positive impact on our bottom line of PLN 16 million. In Santander Consumer, it was PLN 231 million, with the positive impact of PLN 33 million on their bottom line. The provision coverage ratio is safe at 57.4%, while the NPL ratio at the end of the year was below 5%. Slide number 22. I've already mentioned that bank tax regulatory levies, the PLN 4.3 billion of gross profit charged with levies of PLN 2.1 billion and the regulatory levies of PLN 2.42 billion. Summing up, slide number 23. Referring to the previous slide, this is heavily burdened by regulatory and fiscal levies. On the other hand, we have to say that our bottom line was positively impacted by interest rate hikes. You can see in the profit and loss that there is also a provision for legal risk attached to mortgage loans. After four quarters, this provision is PLN 1.739 billion. In Q4 alone, it was PLN 669 million. In the closing note, let me emphasize that our core business goes really well. We are pursuing our strategy and mission of helping our customers prosper. We are gaining new customers despite huge challenges driven by the current economic and macroeconomic situation, which does not make us optimistic. We proved in 2022 that our business model works well and brings the expected yields. The floor is yours now for questions and answers. The questions are coming in. We have a question about the issuance. There are a few questions there relating to that subject. Are we planning to issue bonds to comply with MREL this year? What will be the value? When will there be the first issuance within the new program? We've just released the current report. What type of securities will there be? Is bank planning to buy back Tier 1 bonds? Let me start. Just to remind you, we see this in the performance for the last quarter, and we will see it in the annual report. We will be publishing it by the end of February. Now, we only have available the report based on unaudited data. We comply with MREL and TLAC criteria. We have quite a large buffer Both in TLAC and in the securities that will allow us to comply with the regulatory levels, we have securities and bonds that mature this year. Maybe they don't mature this year, but they will not be eligible for MREL or TLAC. In such a situation, we will be applying the call option, and we will have to substitute those securities with different issuance, hence the new current report and the planned issuance. We have securities in euro, but the program we've just announced is in PLN because we want to first issue in the Polish market. We haven't yet determined the value, but the total value of issuance in 2023 is PLN several billion. That's about PLN 4 billion-5 billion worth of issuance. To substitute the paper that the securities that we're currently holding. This is related to the buyback of the bonds. Even if we enter this particular amortization period, when we have securities with maturities of above one year, it's still eligible for TLAC. It's about comparing the costs of the securities. Even if we have a Tier 2 security, we have to compare the prices and compare it to senior securities. That's still ahead of us, and we still need to make decisions. I hope I've answered your question. Let me answer the question about the level of NPL. Whether the NPL level coming out close to 5% is not a threat to the dividend payment. It is below 5%, and it's much better in the bank than in some other consumer banks. In my opinion, we manage well the NPLs both in the bank and in some other consumer. We are also selling off our non-performing debts, and that's good news because you can see that this has positive impact on our bottom line. The market still provides good prices for non-performing portfolios, we will be leveraging that. In my opinion, there is no risk that This year. This level will be exceeded. When it comes to the previous year, now It's clearly said that it's 5%. We are below that level. Yeah. The question about the expected regulatory changes. Apart from the extension of payment holiday solution, my only comment here is that I will not refer to press speculations. There were different statements made on them, but we will finally see what is going to be the decision. When it comes to other factors, we don't really know what is going to happen. As I said, our model, this is always so resilient that when you can see it is resilient to a large extent to what is happening to the unknowns. It's difficult for us to speculate when it comes to any other changes in upstream regulations or any other upstream developments that might take place. That is in the year 2023. There is another question about issuances. Are we planning any AT1 issuances if there is an opportunity? We can't see any need for this. There are also questions about the dividend. Dividend outlook from As I said, our result was solid enough in our opinion. We meet all the conditions and criteria for dividend payment in our opinion. In our view, we think we can pay out the dividend, but we have not received an official letter from the KNF. We are talking to the regulator and once we get the letter from them with their approval, we will be able to issue a recommendation. I am looking forward to that, and I'm optimistic, but still we need to get the decision. There's one more question. After the results of Q4, can you confirm that the CET1 dividend has been met? Can the bank increase their level of payout? Michał, I think the CFO answered to that question just a moment ago. When it comes to this very criterion, I understand that this refers to the share of FX home mortgages for households in the total portfolio of liabilities to non-financial entities. Let's take a look at page 27, the Polish version of the report. This is below 5% based on the data that we are showing now. There is a question about the participation in payment holidays. We had 54.3% of the mortgage portfolio. That's volume-wise. That's the average hit rate for the entire payment holiday scheme. According to our observations, people, customers were dispersed in 2021 are those who applied for the program most. Almost 40% of customers applied to have the payment extended for all the installments. According to the big data or profile here, the data does not differ from the average parameters for the sectors. What is the exposure to agri loans? There is a plan, apparently, we don't know, to introduce payment holidays for that sector too. You'll get the detailed information about exposure to different sectors in about Two weeks when we will be releasing our full report. Two more questions. The media are quoting the CFO. Will you be able to mitigate the negative trend also relating to the interest rates? In terms of net interest margin and the trend, I talked about it before. In terms of the migration trend, it was stronger when we were increasing the interest rates. Let's remember that irrespective of the migration, we have an increase in current deposits. We have new customers. Even if the migration trend is continued, that doesn't mean that it has a substantially negative impact on our net interest margin. When I said stabilized, I didn't mean that we would be at the same level, but I meant that we would be at the current level. My message really still stays the same. I said the same thing about a quarter ago. On net interest margin, it is likely to go down. This is the trend we saw in Q4. I mean the margin that excludes the one-off factor because we have a slight decrease that's according to the projections. We have a delayed trend on the pricing of deposits. Through assets, the effect of higher interest rate is visible. My message is not different to what we talked about a quarter back. When it comes to the question about the provision coverage for the portfolio of mortgages in Switzerland. At the end of December, 42.4% at the end of December. In our opinion, this is an adequate level of provisions. When it comes to the verdict, the ruling from the Court of Justice of the European Union, we don't know what it is going to be. We know what the ruling in Germany said in this respect and what is the opinion of the regulators on this issue. Difficult to speculate. We will see what is the opinion of the ombudsman as well. Of course, we will be waiting for this ruling, and then we will take adequate action. When it comes to deposits. Okay, well, it's already been mentioned. We've mentioned the deposits. We were talking about specific values in individual segments. Please, well, you have that in presentation and in the report. We will not be quoting that here. The outlook for the cost of credit, the cost of risk and operating costs in 2022. The cost of credit. You might remember a quarter ago, I was saying that this environment of recession. There might be a moment when the cost of risk, the cost of credit will go even up to 100 bps. If you look at the slide 21, 20, 21, when we are showing our figures, we could see a big difference how it looked. There were the provisions for credit losses in first half of the year and in the half two. In the first half of this year, we do not expect anything better, maybe even worse. We might have some delayed effects of the growth in inflation, energy prices, gas prices on the condition of our business customers. Even a simple exercise. When we imagine that in the middle of 2023, we have a situation where we don't have the same cost of credit and like in the second half of the year. Only this would imply quite clear growth. Not up to 100 basis points, but still quite a bit. There is a lot of uncertainty, but we rather expect that there will be a deterioration of that ratio, but we'll see what will be the scale. It's difficult to expect that with such a weak economic growth that we are going to see in the first 6 months with continuing high interest rates. With the growth in prices, it's difficult to expect that our condition of our customers continues as it was in the last year. When it comes to the operating costs in 2023. Well, I think you've already mentioned that. I've already said that there is a pressure and the cost might grow a little bit, but we always benchmark that against the provisions we have and our effectiveness ratios. We want to keep them and we want to keep our cost to income ratio below 30%, and I think this is really good. We have a long question in English. We've answered partially in terms of the net interest margin, but there's a question about the volume. The main driver for growth in loans in 2022 was the business loans. Mortgage retailers were on a different side. What could happen this year? We really expect similar trends to 2022. Not so much. Maybe the second part of the year. In retail, remaining retail loans. Well, we'll be looking on the balance sheet and on sales because we had some early payment that impacted the balance sheet. You see in the unexpected sales of cash flows was actually quite good. It had a positive impact on our net interest margin. In terms of business loans and term loans, I wouldn't expect a rebound maybe towards the end of the year. Overdraft. Overdraft, we had decent growth here. This will not change because of the rising CPI and businesses need money to finance their day-to-day operations. Agnieszka, any more questions? No? No, we don't have any more questions coming in. That was our last question. Thank you very much. Ladies and gentlemen, have a good day.