Good morning. Welcome at the presentation of financial results of Santander Bank Polska Group for the first half of 2024. My name is Agnieszka Dowżycka, I'm Head of Investor Relations at Santander Bank Polska. Today, the results will be presented by our CEO, Michał Gajewski, Maciej Reluga, member of the management board responsible for finances, and Wojciech Skalski, Head of Accounting and Financial control division. I'd like to encourage you to ask questions via the link available on the website, or you can also send questions directly to me, agnieszka.dowzycka@santander.pl. Let's start with the presentation, and then we will hold a Q&A session. Good morning. Thank you, Agnieszka. My name is Michał Gajewski, and we will start the presentation now. After the first half of the year, we have generated a good net profit, and I am optimistic about the next quarter. I am convinced that this year will be satisfactory for our customers and shareholders, despite the persisting regulatory challenges. Briefly speaking, after the first half of 2024, we recorded the gross profit of PLN 3,200 million. In quarter two alone, we generated the net profit of PLN 793 million. At the same time, the tax burden was PLN 1,267 million, while the total regulatory costs amounted to PLN 272 million. So the total burden in the first half for our group amounted to PLN 1,539 million. Let's move on to slide seven with general operational data. As a group, we provide services to over 7.5 million customers, out of which over 4.3 million are digital customers. Santander Bank Polska itself has 5.9 million customers, and the number of our digital customers grew year-over-year by 7%. We have 3.6 million of such customers. In terms of mobile app users, we recorded a growth by over 13% year-over-year. Customers' deposits totaled PLN 215 billion and grew by 7%. The gross loans portfolio also grew by 7% to over PLN 174 billion, which means an increase in the market share by 50 basis points in one quarter only. Assets grew by 8% year-over-year, up to PLN 283 billion, and customer funds grew by 10%, up to PLN 237 billion. In slide eight, you can see the key financial results. I will discuss the results later. Now, let me highlight the key items. The group's net profit was PLN 2.4 billion. Net interest income was PLN 6.7 billion. Customers' deposits totaled PLN 1.7 billion. On a comparable basis, both net interest income and fee income remained at a similar level as in the first quarter. Total income was PLN 8.3 billion, growing by 9% year-over-year. TCR was 17.8%. Tier one was 16.7%. Our capital position remains high. Return on equity for the group was 19.1%. The group can boast excellent liquidity. The consolidated LCR at the end of June was 200%. Slides 10 to 12 refer to new products for our customers. Maybe let's go straight to slide 13, select the business data. In retail banking, we have six million accounts for individual customers, up by 5% year-on-year. In quarter two, we opened 110,000 personal accounts in Polish zloty. On an annual basis, accounts in Polish zloty grew by 4%, while foreign currency accounts by 10%. In quarter two, we sold mortgage loans worth PLN 2.7 billion, which is less than in the record-breaking quarter, the first quarter of this year. The previous quarter was marked by a 2% Safe Credit mortgage loan program. In quarter two, such loans accounted for only 23% of mortgage loans. That's why the sales dropped in this product line. In the second quarter, almost all of the portfolio was granted at an adjustable fixed rate, namely 95% of mortgage loans. Total share of loans with adjustable fixed rate for five years in the entire mortgage loan portfolio in PLN grew to nearly 37% at the end of June. Cash loan sales in quarter two totaled PLN 3 billion, up by more than 16% versus the previous quarter. In the entire first half of the year, we granted PLN 5.5 billion of cash loans. Net investment fund sales was PLN 900 million. In the entire first half of the year, net sales reached PLN 3.1 billion. So retail assets of Santander TFI were PLN 21.6 billion. Our market share has been growing. Now it's almost 11%. In the SME segment, we're also acquiring new customers. We're opening new accounts, nearly 15,000 new business accounts for SME customers. SME loan sales totaled PLN 1.4 billion, up by almost 10% versus the previous quarter. In business and corporate banking, trade finance and leasing income increased by 10% year-on-year, and credit income also has risen. Credit limits grew, and the sales of new limits in factoring, leasing, and trade finance also have grown. We have higher income from M&A consulting when it comes to corporate and investment banking. Income from capital market services grew, and we have also a significant growth in trade finance services. Income on transactions in the institutional clients department increased by double digits, namely 21%. Slide 15. I have already referred to gross loans at the consolidated level by 7% year-on-year and 4% quarter-on-quarter. We're growing faster than the market. We also recorded a nice growth in terms of leasing portfolio. Slide 16 customer funds, 7% growth in customer deposits in the first half year. The deposits stood at PLN 215 billion. Year-on-year, the deposits grew by PLN 14.6 billion. PLN 2.1 billion of that was the growth in business deposits, while PLN 12.5 billion in retail deposits. Now let's talk about our financial performance, net interest income and margin. The net interest income in quarter two was PLN 3.3 billion and declined by 3%. That was driven by the impact of the COVID payment holidays, which accounted for PLN 130.5 million. If we strip it off, the net interest income grew by 1%. In the first six months, interest income grew at the pace of 4% year-on-year, while interest expense reduced by 2%. The net interest margin for the two quarters, annualized on a quarterly basis, was 5.7%. If we strip off the COVID payment holidays, it is 5.28%. Okay, now net net fee income. It grew by 9% year-on-year. In quarter two alone, it stayed flat on quarter one. Year-on-year, we show really good performance when it comes to asset management fees, insurance fees, FX fees, account fees. Quarter-on-quarter, we also show good performance when it comes to FX fees, insurance fees, and asset management fees. Summarizing our income lines, slide 19, in the first half year, total income stood at PLN 8.3 billion, which is a growth by 9%. If we adjusted that by payment holidays, the income grew by 10%. Interest income grew by 6%, driven by interest rate changes, fee income, and fee income, which grew by 9% year-on-year. The income of other operations were actually driven by the actions taken by bank to make settlements. The cost of those settlements in the first half year was PLN 35 million. Now let's talk about costs. Slide number 20. Total costs for the first six months totaled PLN 2.6 billion, which is the growth by 11% year-on-year. And that was burdened by the Bank Guarantee Fund payments of PLN 253 million. Last year, it was PLN 175 million. If we strip off these costs, the total cost grew by 9% compared to the last year, driven primarily by inflation, salary adjustments, and IT costs. Of course, they increased by 7% year-on-year, and that reflects the adjustment of salaries in September last year. That also reflects the cost of the long-term incentive share-based program that we launched. In quarter two alone, the total cost decreased by 9% compared to quarter one. If we strip off the Bank Guarantee Fund costs, that was PLN 206 million, the cost grew by 3% quarter-on-quarter. The cost-to-income ratio for the group at 31.1% was really a sound one. Now, provisions, slide 21. The total provisions for the expected credit losses on a consolidated basis totaled PLN 611 million for the first six months. Approximately PLN 380 million worth of provisions was created in quarter two. The cost of risk has been stable in the order of 70 bps. The net balance of provisions in the first six months of this year was slightly higher than in the corresponding period last year. There was the one-off factor. We introduced the triggers for classifying retail and SME exposures to stage two. This was a change consistent with the practice applied on the Polish and European market and recommended by the European regulator. After that change, we are actually in sync with the market. The quality of our loan portfolios is good, in our opinion. We also observed stabilization or even some slight improvement when it comes to the key risk indicators, such as the NPL ratio, NPL coverage ratio, or the delinquency rate, or the cost of risk. I've already discussed banking institution regulatory costs at the outset of my presentation. These levies are still very high for the whole sector. So summarizing our performance in the first six months, you can see that on slide 23, we have already mentioned interest income and costs in our income lines. But this slide also shows the cost attached to the legal risk that we face. After two quarters, that was PLN 1.5 billion. And in quarter two itself, it was PLN 1,250 million. And that's what we had to put in place in provisions. Summing up, that's been a good six months for us. Another quarter in a row when we kept high net interest income and net fee income. When it comes to the business, I think it went well in the six months. We actually are growing our customers. We've been growing organically. We've been recruiting new ones. That's bodes well for the second half of this year. Thank you very much for listening to me. Now the floor is yours. Let's have the questions and answers session. Let's start with the questions we've already received on email. Let's suggest we go this way. I would suggest our CFO, Maciej Reluga, starts with questions referring to our net interest income sensitivity. What is the sensitivity of the NIM to the move on the interest rate curve by 100 basis points? What will be the sensitivity of NII due to new NII soft limits? The first thing is that the governor of the NBP recently made a short statement on the interest rate cuts. Now that they should be expected in 2026. We also have a higher outlook for inflation in 2025 than before. The question is, what are the implications of this for the macro outlook for our NIMs and ROTEs? So Maciej, if you could answer these three questions. Maciej, are you there? Can you hear me? Yes, we can hear you. There's some echo, but you've heard the questions, right? When it comes to net interest margin and sensitivity of the net interest income, it's in the order of PLN 300 million-PLN 350 million, of course, assuming that we have a constant balance sheet. But looking at the statistics, what part of the loan portfolio is based on the fixed rate or a fixed rate that is hedged? It grows a few percentage points. In the middle of 2024, this gives us 40%. When it comes to the regulatory limit, NII floor. We've already seen the changed sensitivity. We are within the regulatory limits, so we don't have to do anything extra because of that. But depending on the market landscape, we are getting ready for the lower interest rate scenario. And that's about the first question. When it comes to the expected interest rate cuts, we expect it in 2025. If that's not materialized, then what we have already done should be enough to fit into the net interest income floor limits. And our sensitivity should be okay. We do not give you any guidance for NIMs or ROTAs. It would be too far as such going to outline the scenarios, what might happen with our key indicators. Thank you. Okay. So now maybe I will take over and I will answer questions about Swiss franc loans. The first question was about provisions that exceeded 100% coverage level. So do we expect any comments from the regulator about the optimal coverage level? So I have to say that we have never received any expectations from our regulators. Of course, our regulatory authorities monitor the situation in the banks, but we have never received any decisions taken at the external audit levels. We have never received any comments or suggestions in that matter. I don't know what the situation is in other banks, but we have never witnessed anything like that. Of course, in the second quarter, we topped up our provisions. We now exceeded 100% coverage level. We think that this reflects the situation on the market. This reflects the situation at court and behavior of our customers, both those that find settlements with us and those that go to court. What's the number of foreign currency mortgage loans granted historically, ever granted in Santander Bank Polska Group? In total, in Santander Bank Polska, we had 62,000 such agreements. I would have to double-check that, but I think that's the right figure. In Santander Consumer Bank, 27,000. What's the proportion of active lawsuits concerning loans that have already been repaid? Those that are at court. When it comes to our bank, this is about 7%. When it comes to inactive customers, about 7% of them went to court. In Santander Consumer Bank, I do not have the data. I would have to double-check, but I don't want to express my opinion. I would rather check that first before telling you. Okay. So now let's move on to the next group of questions. Long-term funding ratio. There are two questions. How much is it according to your estimates? And how do you plan to reach the required level? And what's the new long-term funding ratio at the end of June 2024? So I'd like to hand over those questions to Maciej. At the end of June, it was around 40%. So we are in line with the target, which was 38%. And in the future, well, it depends on many factors. First, how the mortgage loan portfolio grows, how our RWA grows together with our entire loan portfolio, because this affects the capital and dividends. So depending on that, we will need certain issues for TLAC, MREL, and this will impact long-term funding ratio. If it turns out at the end of the day that we will be below the level of 40% 2.5 years from now, we will have to issue additional issues. Okay. We have a question referring to IT. Do the IT systems of Polish banks, that is, both Santander Bank Polska and SCB, are connected with the Spanish parent company? Are there any plans to introduce a common IT platform? Are domestic banks vulnerable to an attack like the one carried out in Santander Group that resulted in the leak of customer data in Spain, Chile, or Uruguay? And it was combined with the leak of employee data. Did the problems with the CrowdStrike update affect the bank's operation last week? And how did they entail any additional costs? Well, let me tell you that we are very serious about security and cybersecurity of our employees and customers. And that's why any platforms that we have or that we share with our parent company, all these platforms are subject to special surveillance. Of course, they are always modified or we always seek consent of the regulators for doing that. It's not that our transactional banking platforms are the same as the ones used by our parent. We use the ICBS system, so we don't have the same platform as the ICBS platform from our parent. And for security reasons, we keep part of the data in Spain, but that's cybersecurity. That's about cybersecurity in the case of any hybrid attacks. If our data centers were threatened in Poland, so that's the first line of defense. But these are not transactional systems. These are just the systems for keeping data from transactional systems, but they are not used for transactions. But the question is, is the leak of data possible in other cases? Of course. As I've said, we made huge outlays to ensure security. We have the processes compliant with the top standards. I do believe that we won't see such a leak, but I don't want to provoke anybody. We meet all the standards, and we keep investing in security. Did the problems with the CrowdStrike update affect the bank's operation? Yes, we had some problems, but our processes actually worked very quickly, and our teams reacted swiftly. We did it in consultation with the group as well. We particularly saw problems in our communication center. Some laptops of our employees and workstations were affected. They had to be reactivated on site, and the systems had to be recovered physically. Very quickly, all the transactional systems and the bank's liquidity systems were very quickly recovered. There were no additional costs related to that. The only thing we did, we carried forward our release of the system to another date. Okay. Now maybe I'll ask Wojciech, our head of financial control, to discuss the effective tax rate, which is computed after having deducted the non-tax costs. It's usually around 90%, and this time only 50%. Why? Wojciech, could you answer that question? Of course, good morning, everybody. I do encourage you to take a look at the note 15 in the consolidated report. You will find there more details. For the bank, on a solid basis, the effective tax rate was 22.4%. And having stripped off the Swiss bank effect and the provisions, it was 20.6 or 21.6. So that's normalized. It's not maybe well, it's close to 19% on average. But this was also driven by some other costs, like Bank Guarantee Fund costs and other costs which were not tax-deductible. But what has happened at the consolidated basis in parallel to having stripped off the Swiss bank effect, the effective interest rate would be 14.6%. But this item, the technical assets created by our subsidiaries of Santander Consumer Bank, and this element drives down this effective rate so much. This is the requirement of IAS 39 on interim reporting. If the rate is not naturally high or distorted, and that's what was said in our company, in this case, they can create this technical asset to normalize that rate to some extent. So that's why Santander Consumer Bank did it. That's the whole comment. Okay. Thank you. The next question, of course, the next area of question are the credit spreads. What will be the change in the quantitative criteria for identifying a material increase in credit risk affecting the level of provisions? The second question is the outlook for the risk costs. Let me answer the first question related to reclassification to stage two. As I said during my presentation, this change is consistent with the practices applied on the Polish market, but also on the European market. And that's also recommended by the European regulator. After changes, the stage two of the bank accounts is the same as the median of the market. But the recommendation was to change it and to make the approach of the banks consistent. IFRS, in this aspect, leaves quite a lot of leeway to banks and how the criteria should be applied. So we think so we don't expect any additional reactions on the part of regulators to that. When it comes to the outlook on the cost of risk, we usually don't give any guidance here. I don't really remember whether we said anything about that at the event about our outlook for the cost of risk. We were saying what we put into our strategy, and recent quarters showed that the stabilization at the level of around 70. It says, "Okay." Of course, there are some customers that we actually take a look at in more detail because they're sending resistance. But I think the guidance is roughly 70 bps. Okay. Now, loans. The first question refers to the impact of the EU recovery funds that were unlocked for Poland, and that will be gradually dispersed. So the question is, can we see any impact of this situation on growth in our banks? And how can we, as a bank, benefit from this program? The second question is, the increase in the corporate loan portfolio was 5.5% quarter on quarter. That's the largest increase in six years. And what's the reason behind that? Has there been such a high rebound in the demand for loans? And I have also seen one more question. Will the increase in corporate loans in quarter two? Does the increase in corporate loans in quarter two result from higher investment activity? So I will start maybe answering those questions, and then Maciej will add his comments. Okay. So let's move back. Well, yes, of course, this is great news for the Polish economy that EU recovery funds have been unlocked. We all know that now the projects are being identified, and it has to be done quickly in order to use the funds. We do not have a lot of time to use the funds. So both the public and private side are active in order to use the recovery funds to the largest extent possible. This is good for the economy, and whatever is good for the economy is good for the bank and the banking sector. So we want to participate in that, not only in terms of bridging loans, but also financing additional needs that may arise in connection with those EU programs. We are very happy, and we are helping our customers in building their business plans. We will be also supporting them by financing those projects. I am very glad about the increase quarter-on-quarter. We have invested a lot in this business line last year. We invested both in the skills of our bankers, increasing customer service quality. In the financial report, we could see that we are the leader in terms of the skills of our bankers. First of all, we are growing on our existing customer base. We are providing our customers with both simple solutions such as overdrafts, but we are also financing our customers' trade activity. We work hand in hand with our customers to help them grow their business. We are also acquiring new customers. We've been acquiring more and more new customers who appreciate our processes, how quick they are, and how skilled our employees and bankers are. Okay. So this is about loans. The last question. When it comes to loans, there is one more question about consumer loans. And in the context of corporate loans, has there been any change in pricing and risk appetite? No, we have not changed anything. This growth that we are showing to you in quarter two, first of all, they prove that the growth in loans has been sustainable across all the lines. Consumer loans grew without changes in pricing. Corporate loans, starting from SMEs up to middle, medium companies and large corporates, we grew across all the lines in some areas in double digits. As you may remember, we were quite optimistic at the beginning of the year when we presented the results for 2023 when it comes to lending activity growth. And we could see some pipeline, some demand for loans, and it materialized in many areas. We outpaced the market because the National Bank of Poland showed that the market grew by a little bit more than 0%. And in our case, it's 7%. And we are expecting continuation of this trend depending on the macroeconomic situation. But we believe that the economy should change or shift from consumption to investments. And we are optimistic about that. And when it comes to loans, there was a question about the impact of 2% safe loan program. So 23% of mortgage loans were connected with that program, I believe. Yes, it's 23%. I checked that. Okay. So 23% of new sales came from the safe loan program. So let's move on. Okay. So what's left, actually? And the questions about costs. Okay. So Wojtek, could you answer those questions? Yes, of course. There was a question about our growth quarter on quarter by PLN 100 million. Half of that growth is due to the Bank Guarantee Fund. The rest is connected with other components. Please read note 13. You can see the details there. In general, apart from inflation and record low unemployment, we should also bear in mind about a growth in minimum salary. Maybe this does not affect bank employees, but it affects the costs of our service providers. For example, cleaning services, transportation, those costs are growing in line with what happens on the labor market. When it comes to the general comment on the cost, there was a question about the salary indexation that could be expected in the second half of the year. The second question from Marta, who also asked the question, "Can one-digit growth in staff costs be maintained?" Well, this growth is better than in the sector. It results from the variable component, mainly the bonus that is a significant component of our salary costs. And the indexation, the adjustment of salaries that was taken in quarter three, well, this year, the management board also analyzes the budget and analyzes the market situation. At that moment, the decision has not been taken yet, so we should be patient about that. Can the growth of staff costs be maintained? Well, as I said, this depends on the decision of the management board. And the general guidance on the cost is that, bearing in mind all the stimulants of the cost, we should bear in mind that our growth in costs results from the market situation that may change. We monitor the costs regularly, and we should expect continuation of our cost discipline. Okay. I can see two more questions. What's your opinion about the run rate in the payment holidays? That's the first question. And the second question, the growth in business loans, do you think it's the beginning of a trend? Let me start with the so-called payment holidays. I keep repeating that the state interferes in a contractual relationship. Payment holidays is something different. This is the interference of the public authority into a contractual relationship whereby it's decided that one of the parties to the contract is not getting the remuneration due to them. And that's the definition of that. If we look at the run rate for the program, we relied when SMEs in cost, we relied on the headway for the previous edition of the program and for those who were entitled to avail of it. This is not even 11%. The actual estimated is 14.9%. This uncertainty is gone that the customers who did not meet the requirements of the act still applied for the aid under the program. But now the customer awareness is higher, and those who are not entitled do not file for this type of product. So the requests we receive are from those who meet the criteria of the program. We do not expect any additional provisions for that purpose. Maciej, could you add to that? The provision is approximately PLN 135 million, and we take into account what is expected by the end of 2024. We took into account the run rates for the target group during the previous program, and the headway against the total loans is in the order of 15%. The CEO said that in recent days that was 11%, but probably will reach that level of 15%. So the whole provision for that effect, they will be concerned. The changes will be possible if there were any drastic changes in customer behaviors in the second half of the year, which we do not expect. Business loans, we've already answered that question. Could it be the start of a longer trend? Yes. We want this trend to last for long. Last year, we were completely in flat market. We outpaced the market by roughly 10%. The whole market now has started to move, but we are outpacing it at least by twice. So we have the appetite to win new customers. And we will continue acting in sync with that trend while the prospects for the Polish economy are positive. And we will be, of course, growing in a very safe way. Have we skipped any question? Agnieszka, if you could take a look and check. There was one question referring to deposits and the share of term deposits in total deposits. How do we see it in the context of the potential interest rate cuts? Of course, there are different scenarios, but it's reasonable to assume that this ratio will behave in a stable way in the quarters to come. Yes. There were three questions from the internet. One refers to the investment. Was it the growth in corporate loans in quarter two? Was driven by the growth in investment loans? And there were two other questions. TCR in SCB was 44%. Is there any idea to optimize the capital structure? And the next one, what do you think the new regulations like CRR and CRD will have on the RWAs and capital ratios? And these are all the questions that we received. Maciej, if you could answer about the capital ratios. Sure, I would have to check, but some loans that we sanctioned were investment loans, and that was part of the loans that accounted for the growth. But we will have that checked in detail and provide you with the answer in writing. And Maciej, if you could answer the question on capital ratios, CRD, CRR, Wojtek, probably at this stage, we will not share our preliminary estimates when it comes to the impact of these new regulations. When it comes to capital surplus, well, it will not result in any special pressure. I think that MREL part is more sensitive. Yes, but we are still analyzing the impact, and we are considering the mitigants. So sharing the information at this early stage is not really sensible. On top of that, SCB capital ratio, well, the best way would be to do it through dividend payment. The business model of SCB is that they have relatively high NIM, but relatively high NPL. The NPL has to be below 5% to be able to pay dividends, and that's quite a challenge. That aspect will require further analysis and considerations. Let me add that we have taken into account the specific situation with the very high solvency ratios. The bank is showing a loss for the first half of the year because of the Swiss franc issue. This is difficult to say how things will develop at the end of the year. One of the arguments that this bank does not require any resolution or recovery plans to be kicked off is that the capital base is very high. As long as the situation is not clarified when it comes to Swiss francs, this high capital buffer has its advantage. Okay. I can't see any more questions. Okay. Then we can sum it up. Thank you very much for your questions. The ones that we have not answered in full, of course, we will provide you with the answers in writing. We wish you a nice afternoon and a good day. Thank you very much. Goodbye.