Commerzbank (CRZBF) 6 Nov 212021 Q3 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Commerzbank AG's conference call. Please note that this call is being transmitted as well as recorded by audio webcast, and will subsequently be made available for replay in the Internet. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions, following Manfred Knof's and Bettina Orlopp's presentation.

Let me now turn the floor over to our CEO, Manfred Knof. ahead. go Please

welcome quarter and earnings for call Good XXXX. to third of the morning our

We messages territory; or to two is the guidance XXXX. transformation have third key for fully exceed based for net lift is we and XXXX our profit on our quarter, good targets into performance track. and reach positive on and, progress our today. two, This One, in we confident are

strategic perspective look This Most will a our Let's I the touch which the important track business on as on key includes our program as model, in milestones. that X. page is in with at dimensions steps setup transformation a are of on minutes. redundancy well we from our major few

XXXX so developed cases, year third according well us In volume outperformance of the after very nine on largely €XXX pandemic. our tailwind improve X.X% example challenging for months and XXXX plan. less our private year. for our the for Thus, resilient even to Revenues exceed clients to our the the also has than very quarter million. with will and Furthermore, in the securities Good the customers. a KPIs ongoing in previous full-year be some is exceeded to Financially, especially provided Mittelstand Our increase German we business can some Especially, far loan book the better. navigated transformation by have basis. proven quarters. through with full-year remainder in guidance

to for and Last, for restructuring our months with provides a makes exceeds despite result and profit with Overall, full-year €X maintained after a for positive ratio further better of expecting the we of but further that our charges also development the are nine guide capital with confident that planned net result, us guidance, transformation. already at line positive at year. This transformation. in year. us the this to than the is be not has a stands operating As billion costs XX.X%, the end level developed least, the the headroom

to made service enables the can our first over basis to good innovation highlights with happy Three we Now, to is trade the at the meetings customer Private divisions, innovation for banking stage and let's take the finance corporate I'm client a we Customers finance Polo also strategic many progress have last and is such again look not third the trading of We've In churn. have penetration distributed This clients partner, the of from I Payment weeks, within fact Marco taking positive The trade had service feedback reflected quality self-evident corporates very example space. advisory of bank. launched on the of centralized the advisory A the market closed proof the quarter. centers XX%. is about a response bank the longstanding which recently in Commitment, that large are is positive skills, as the limit finance high in middle in a excellent which Commerzbank branches. With effectively technology. commitment and digital Germany get ledger of also in in transformation. of as our the with digitalization center. and excellence confirmed Germany further clients good a leading the launched transformation In

strategy. sustainability we address discussed I sustainability of convenient. the and dialogue, Corporate the On topics to most digital sustainability, For at XX% our place perfectly fits which would much green have for account signature, more banking the easier launched than Clients, mortgages highlight and took that to to we like in already important This new which that makes first our business. ambition September, of

of our of COX within the portfolio. concrete relevant and reduction One was Targets Initiative. for These sectors investment targets key the next messages Science-Based the define on be until loan guidelines based will that, we targets August, the will all

as Regarding example very focus. management have for deposits profitability, good a our picked I

Our strategy fruits. management due profitability deposits to bears pricing. deposit put Revenues before and from active to growth stabilized have

of the timeframe. in with in as Let's finalization good redundancy are And to departments FTEs requires move half due until of on to program leaner redundancy strategic the that And Core May, for very X, of framework already the added had gross already In short voluntary X,XXX are job employee the costs. we payroll. on we a redundancy also parallel, XXXX. with the very the off slide that representatives. on voluntary further all than program, This be for January in X. the already with has are is progress the redundancy XX,XXX results And program voluntary the time contracted our the and bank. FTEs In lower are detailed X,XXX we all going of our off we agreed cuts reduction. the insured kicked transformation setup XXXX. to In close the leave of now, to negotiated for we agreements achieved contracted another at period have program. exits X,XXX and program. more FTE a July, bank XX% A

with in redundancy will and we very I'm concluded agreements, restructuring. that XXXX, the into confident significant Looking further make detailed progress

highlights transformation the of let KPIs. us view in a our at development some operational Finally, take

we our XX% improve in reduced will ahead be going on In usual, yielding In can further have As the found of target keep on This efficiency is XX%. appendix. year-end our of to KPIs Clients, XX% full in the Corporate RWA the client agenda. stand from low of deployment. further bucket we measures further of table and QX, to top business capital the

some we face our from faster RWA Furthermore, However, streamlining adjustments. of proceeds international model headwinds planned. the will also network than

I on our of plan three of would branch is initiatives to at two limited. that locations exactly closed the closures like churn topic end exit transformation. for highlight a and the so KPI PSPC, pricing far nevertheless exceeding have but year. Customer the already very not X XX We due In success and out list, exits to of the important this revenue of is

As can trend on for guidance want and customer see our good also be XX% churn QX, XXXX further Division. Better in of churn cautious expected. corporate figures again, reported than stay is we Clients the before here. lower adjust But we to quarters

this made at XX% our well of Looking milestones nearshoring have share we progress technology XX% in have applications further the on the reach to in capacity locations. IT track of ramp office, year. end also XX%. locations, increased that Already the QX, head further nearshoring sits of to and by In good on of cloud run of up operations we our XX% the from

interim the you to host transformation the well After full-year XXXX. Key to end completely of of to by with and towards Markets necessary target enhancement and will of cloud reason reach first implement are results event, that with to Our and we to on provide X this our Day on Ladies want we we at this be we of XXXX. year XXXX. to track plan Commerzbank March. targets an need update In is milestones is XX% committed XXXX, our Capital disclosure for the together Strategy of gentlemen, however the the postponed strategic half infrastructure the providers. our

me walk through the third financials now pass who Let you will Bettina the to of on quarter.

And Manfred. will you financials the morning we Q&A. from also, walk my you, move I good Thank through side. into before

slide start Let's with X. an overview on

strong A, million. quarter. a the We a C, we did result further level Manfred release three financial ratio I million buffer for already to improved stated, of franc the of of the third increase our operating increased €X.X at €XXX The €XX risk considering benefit that XX.X%. mainly a high and asset COVID-related to from adjustment. our nearly not we million and target; unchanged million. €XXX full-year in was remains is to by reflects managed line the our €XX more good had portfolio. €XXX overall factors. points. quality even top driven This strong of to The billion, basis million. result XXX performance result €XXX result than The B, reached revenues level capital legal As stress our of mortgages to million. billion operating MDA in by net net The of provisions want with Swiss €X cost low

year. charge result led billion more are Now months than of of to is billion €X covers €XX the excluding slide million revenues Operating let's QX, at And XXXX, Compared write X briefly look million has and an booked year-to-date to the lower. already lower. operating million. nine the are the €XXX the in first off one-time risk the in view. €X up result restructuring expenses, and €XXX This

amount Let's €X jump additional of the for €XX Federal these exceptional Higher Court million. provision to the an to million items. minus compensated X page Overall, million German only €XX revenue valuations of with have largely of by Justice This all overall XX of Slide with customers our additional in like provision court written covers fee and caused shows ruling terms providing the expenses group form. changes. on the cost ruling, the P&L. conditions items

gain stick finalize will a planning could year for annual income Further the negative. we the to million addition taxable expenses assets. a next our benefits majority reached is year. in as increase end have the until booked tax text three of and planning This restructuring process. already. we The charges mentioned, a and, digit The gain operating therefore, tax small an restructuring quarter from €XX XXXX As will the guidance fourth year in be the net result increase of will quarter, the year-to-date lead result of the booked likely good of of In million XXXX. a financial range my as to be

This let's securities and in increased income next and more Commission year. also commission been NII the by increased commission XX% increased cover in due will Now Germany transaction have to custody year-on-year. in NCI starting This slides business. last banking. mainly significantly the income. three net with Clients quarter. volumes to has income Corporate move Both securities where this compared trading is detail, by driven PSPC to strongly I

XX. We that cash from recovering have finance effects contributions and from trade management. slide the of leads somewhat negative and is pandemic higher seen to us the NII This better

than the effects a from quarter. deposits. deposits quarter, As was contribution stable, NII further excluding corporate from NII pricing. deposit the customers, quarter. fourth Also, benefit, expected, loan TLTRO better to roughly PSPC last was loans while In expect An increased on previous The level NII, offset as the we from current same from model from been the underlying the Germany, remain at up. is deposit income deposits also increased bit in the business NII the for due has pricing In underlying slightly to NII in level. progress the

with the so around constant churn NII and the low in interest the we slide next this year, plan. the we far and a This of the excluding seen outlook. current be interest we longer-term we to in have the benefits had presented trend level If we in assumed continues customers have TLTRO rate corresponding move year. revenues. our Let's expect development further limited XXXX, this February, to At at Strategy that our XXXX outlook euro rates in seen

implied reflecting volatile, rates However, market rising rates. while the quite increasingly being are forward

way benefiting are We in would in deposits model at as be €XXX on rates than Or we to the than earn we our of in to reinvest additional on plan. the back at strategic from rates other we currently NII Based better we XXXX quarter, from deposits had that this compared XXXX. the the in originally end would more million good PSPC, words, slightly forward a assumed. can NII

from XXXX rates would XXXX, target the we offset increased years remaining to, pricing. partially, that and by headwinds still face in deposit at However, we least some

onwards year. again basis €XX the yesterday. We NII bank will in rates an The The lead Now rates bottomed let's The year. in cut the increased pandemic-induced mBank. that NII, roughly in NII million the rates increase roughly extrapolated. had linearly October per be than will central earlier, XXXX from is It our in out The yesterday in slowly. market look expectation points has will impact basis XXXX estimate on QX from fair planned. also rate rising at that expecting had higher to mBank. at more be but rates assumed are effect increase them Poland strategy, only can only current is to not higher but the we assume that points rising XX increases We we this and increase which XX support had October Polish were in in and

costs Let's carry slide on with on XX.

invest At maintained our operating million have continue this full-year cost We in around line time, €XXX so in to target. we our strict year. and digital far our with the spending expenses discipline, same are transformation,

loans the stable €XX quarter. confirms to million the lower the number risk also in so low and a our far of of stands even is year is in second the largely defaults resilience XX result cost on The in clearly This pandemic loan slide the improving result. than at clearly result we points. quarter. visible which risk expect result certainly of for risk that The low support government below loans, We year Let's low I'm the that even will risk be encouraging. a the and around the support quarter. book, or to XX in of more measures is run Also, very year move optimistic our the This Having start. with are €XXX basis ratings long TLA second There and companies the that, at significantly of will the guidance first This remains be affected. said million. a of until The yet. not the of is current improve fully higher we fourth will adversely full will our repayments some end can assuming out level. woods

the supply effects customers. to a Therefore, cover effects review, strain following of that in chain XXXX. our an increase in this higher next on and secondary the see also is energy like and prices We keep to in defaults secondary Based intend we on quarter. TLA pandemic direct and disruptions puts likely

continued quarter. Small-Business inflow with operating next €X Now Customers let and billion the let's in had slides. money the securities Private and around two carry We with new me on of the on segments and net start

We the third will the the uncertain the the markets during of So, that development more Germans lot quarter this time is at continued intact. which on slow to the in more the volumes trend. But outlook depend continue could as and the in securities has to near the quarter. in moved reduce this the trend invest for has finance to change not business In flat. in A do market, down a Mortgage expect a in of overall deposit to being. sideways we been steady do We pace pricing volume progress good business, quarter. have €XX of the made increasing again behavior in billion. significant volume We again planned. managed deposits The deposits expect subject increase a overall term. to consumer customer the while

contribution departing lost. to million of has and had, not to businesses performance contributed customers securities in XX. to this driven of based The X% in due the Overall, has good German both So much the anticipated, loan far, higher NII. PSPC by business million second reached customers on revenues positive number me Churn, to average, contributed. as the The also million, last is year-on-year, contributed year as terms well agreements lower of €XX brings customer result XXXX. quarter. than underlying operating business. and The €XX the deposit private to the the of we This significantly better revenue. exceed revenues of the model, expect performance streamlining from the been on €XXX than page and the PSPC an on

lose by So for also to far, we million. increased though underlying mortgages continue on €XXX level right of Swiss well, the MBank last nearly performed customers. to €XX provisions were with year, the revenues the even million franc has

not in we franc far so the Polish Supreme mortgages, has ruled As not do expect Court clarity the on term. Swiss near

continue and We reserves developments appropriate. closely to will adjust as monitor

from customers. deposit we to RWA points management, our volumes volumes corporate and business, this partly The XX loan on In maintained efficiency have average negative clients. the X%. two most In volume a with fully increased in basis been especially seen charge reducing thereby was priced, quarter. currently continued slightly in We the for ensuring quarter. no has XX Clients, active portfolio basis slides. our increase deposits, continued around impact Now, higher Corporate have at the The rates, Average RWA let's also profitability. for institutional move was next efficiency Corporate Clients we but points overall

up €XXX from interest so around year, has the added million. For pricing far to deposit income

manage clients, beyond rates to the corporate continue and introduce large our including We actively deposits we'll rates higher more for adjust and allowances. deposits

measures, expect contribution hold to XXXX to these million more in to we costs around to our million the €XXX from €XXX increase see With pricing offsetting these this from deposits. than year,

XX% RWA RWA our Let's revenues second whereof and move RWA, or improvement driving to were €XX the slide billion than Underlying of XX. X% year-on-year are bit same the billion lower by better efficiency. time, from come around the a At €X quarter. year-on-year, in reduced credit

revenues, second groups also from revenues International improved line from the institutional are business international better Looking the lower mainly banking transaction also recovered the to finance year-on-year, corporate Mittelstand with our client management capital in improved compared better Cash transaction loads. year-on-year, revenues at strategy. benefited pandemic business. improved our banking. quarter, somewhat to All Trade pricing. deposit and from revenues quarter. including markets Compared improved increased from and lines. also second corporates

lower result With million. an low the and risk operating €XXX Corporate of result Clients cost, reached

the the minus €XXX and degree and share resulting stake move quarter. and and is development others valuations whose million volatile largely to to consolidation. others XX operating quite is at in Let's Others the low our CommerzVentures. price the consolidation lower months. nine of stands The This at in slide €XX loss by and hit million of driven results Marqeta, end first consolidation's from significant a a is operating after of at

full year. contributions as fourth equity to can holdings for the operating slightly should the improve least we receive that Assuming at in TLTRO a well as quarter, from this benefits result some negative

risk assets. driven were ratings risk, slightly to reduced collateral by Clients. market to by and move offset operational lower with risk improved slide Credit Let's partially and higher risk volumes, moderately the XX an reduced, RWA increased credit Corporate RWA. RWAs weighted Quarter-on-quarter and

will CETX increased formally We of QX. improved forward. But also from TRIM switch far The to the to underlying a well. the our the result a already model months, of slide had XX.X%. This restructuring The we billion cover of Swiss will XX. quarter. This franc reduce final but will increase, going To the due nine happen business the on volatility of already to is small and in will reduction, stable After change our is internal this up be It around charge this reflective €X.X the risk of implementation €X to billion. RWA this target with approach. RWA we quarter, on the from strategy operating reach financials have can fourth leads will our outlook developed no the quarter. booked have extraordinary quarter. capital, further an Revenues This combined the the booked included this in impact improved year. an cost for operational XXXX. so our exceed Based mortgages standardized figure. wrap Operational impact premise base burden there that used have the ratio XXXX of outlook

million have In result the €XXX level improved write-off expect we million. €XXX level Based at our current a quarter. on and in top guidance and the second one-time assuming addition, booked near the we adjustment a risk observations current year-end, below

attention. very are questions. Manfred And aforementioned, Thank net least, operating much the results. expect take very last, we and expect Given your I a but you around And now to CETX your not XX.X%. of ratio we happy for and positive

question very Izabel And Dobreva from Stanley. Morgan first from Instructions]. comes the [Operator

I please. have three

imply I accelerating, impacts are or the pressures mean and, to through in XX% Polish results negotiations I with around inflation revenue I take was unions, on from risk to question like nearshoring ask the updated very improving the the strategic so the business given which the see growth to updates Eastern a recent And seems away picture. line. a guidance the you of I actually from the year. the cost The to your course, Europe revenue wage improving guess don't business. outlook. So, would mBank And cost But encouraged and

the all to billion question, resume about of the €X is of to this these Then Or this that's So, cost on would is at track first or might cost mortgages. next about have when be income levers like change more this, inflation €XX.X be target likely on pressures It final for voluntary headlines my I the on suppose given question. working business the you and linked year start movement the towards There question profitable reach profitable to offset track ratio year? you're is thinking secondly, do my which And and stage? is that to pilot a regarding looks have So, be capital billion And the at be next scheme. then it for mBank €X.X timing the I of franc capital there increasing billion? and in already Swiss light return. year. appropriate my the a Does capital all to is what question one, target target this return, your the is you might already on previous settlements. thinking are at

here? what thoughts scheme? enter be you your are to into would voluntary So a open And

the also stuff huge you On embedded like already assure see our quite your we we following they up see specifically, that. salaries therefore, But first on cost and, Poland, that And have in adjusted and have inflation are plan. indeed, that we you in that. can a closely I and baseline, question,

an we next target March year. update the billion for stick $X.X And €X.X to from So, billion will anyhow are for year. have and guidance our our the , there rest, we take but we next

will will out offers. we capital consider I with Swiss we settlement first are team discussing the is There could results, you let's And look at in third when couldn't dividends think then already pay mortgages. XXXX? that. be XXXX that one, voluntary To return. you have two now on and franc and one. also definitely discuss very update the and we mBank banks know honest, Second, you

story a We to definitely The you must it have want end. We is are describe saga, the to it open honest. be very to or solution, then, all sensible wanted thing for ending. to however, be any

binding and which we also cetera. of to a claims court So, is everybody and also procedures, is which need then years the find solution for ending et

So, mBank proceed also how to on working fourth will insightful definitely that. is that. on an the quarter on And be one

Nicholas The next question Herman comes from from Citi.

me, from Three please.

two on mortgage. franc Swiss So, NII on follow-up a and

trends, into step up Significant dig German to Just please. in PSPC. NII

I about points the think your It's this but XXX I underlying XXX sustainable. there. basis moving I I'm struggling understand about quarter. by that that comments, from And just to parts appreciate can what quarter. last to points increased, only seems be by see. billion basis price deposit has €X

if moving behind and NII, So, some you step detail very the provide German helpful. could the parts on be up that'd PSPC

far that churn I I higher also if NII higher in holds, that million you million higher a if that as NII rates, guess – with originally would forward forward said from so about guess lower. the along €XXX guided, Very was would lower would to obviously, than you million implied imply €XXX Secondly, imply that churn hear. €XXX been versus that far big XX% in PSPC €XXX curve, has encouraging million It NII plan. – plan. that your compared that the to the imply that

expecting billion to guess also So, would that you I means therefore €X.X of then €X.X consensus. that in XXXX. billion compare NII just confirm be And to would

that confirm the I've to So just math there right. got

peers as in settling what when I to strong the look significantly that see as off quite the of take on lagging are to rates, I been mBank, on possible? risk to process just I why see, guess trying off Because Certainly, rhetoric teams at mBank. the table? not can courts owners this. guess, you encouraging quickly you of you the settle, at has from Finally, as versus, guess, when peers lower I conceptually, mBank accelerate not it and really the mBank get table just managing

expect first the NII and pricing. revenues the what slowly, already, is to that question, in for one, adding but Number deposit we the and the development are strong It's PSPC? you mentioned main drivers surely, more. The of

the €XX presentation it €XX,XXX see on are still have that the specials also above not You can we priced. which billion

is that So, something.

higher stable the volumes adding is and Second on NII. with loan the mortgages to business

effect end that, second QX, That's PSPC mortgage in to compared on that definitely bit little QX, a seasonal of happens smoother. the June if you we of quarter. a repayments in Additionally, in depressing development and that a early had is always take negative the always NII effect. NII clearly And is

churn rate what and XXXX. for the on we expect Second,

based the all, of fact we end what more of on we have NII we have forward the XXXX, the will our, First quarter. in that in rates seen

for additional for forward time more than at change we we which effects that. being, clearly stick depends €XXX in So, current revenues. our to it And in might the million we But the see. on But That rates the Eurozone. next to there very increases what know in month. assuming we time of that will that is the are conservative you an upside, implied XXXX, rate – stick where do stand expect in end, approach the being we not

the closed it this currently the of We cautious. On and in It's XXX. to branches. stay are very year we said said but we we churn still on it need closure also, I side, I Manfred what think promising see,

closed first year. the have XXX already We last

any of we seen first We the stay haven't But cautious. effect XXX.

third there be to an still indeed settlement. might we due there decrease out the upside we because So, one But And moment. in a would figured the stay cautious churn. that on in the be significant revenues

believes a is the that, there, We or do settlement very people be story. one, offer – have would What is a ending believe there who to have because out helpful are not which court because all voluntary offer it But solution. a solution would very then to is supportive clear, we that -win need the not take the way say to they in necessity, everybody in who that. we find any and to is not to then person procedures finding see beneficial go stay will settlement who not on and the the the court more court no like basically

target end also will settlement hopefully definitely offer, our an settlement target. attractive that's can have which And want would everybody we happen. would the decision and also So, that court they but clearly be did team offer the that. on and the mBank September. It working procedures. Unfortunately, Supreme a not by we ideal are That's of a to accept Court if seen management have

via to need we So, otherwise. clarify it

Thormann comes question HSBC. from Johannes next The from

questions Three please. some and follow-ups,

an will my on I'm but now which under you secondly, much the as new the can X,XXX, can the – being they personnel just with And drop Or all, your of you account costs Because you lowered the years of a trends year-on-year, this And still your that but, these so deposits is a price, your down how and all, from the fee? expect some can €XX,XXX ratio strongly say pay new retail price, requirement. side, impact last, [Technical by you AGB still QX? And XX%. AGB down for of you to many previous have was of more one-off churn? first in deposits, €XX to on has even least, your headcount now to there? request on see where another do my there deposits, negative I've had the in Difficulty] effects than from coming from back bit costs. are much above not the I flagged threshold old don't quarters of customer after despite billion step-up in struggling the which Secondly, how November, gone retail ignore threshold, or your rising see price can operating basically the your we Is you in whatever First coming? presentation the to yourself. there

back something the so reasons two honestly in yes, to seen our in people collective is a also employees last third apparently, – based are because, a we is, for the our have tariff of bargaining has into costs that three. speaking, the costs, round we or personnel so-called indeed. that There one automatically we target last First booking to we increase operating that. time that good on compensation is number round, always cost side. did Number robo rise. months. or increased nine for some job Platform are leaving who currently provision results the That's and the – is one seen give One two that have main And operating great also have the playing on clearly lag a for one.

you know, the our every very cross But putting decision who's of and also clearly and someone, service it's also the costs profitability on target agreements else an of get a as client will it's do bilateral client. relationship, every you client provide. costs, a the for and, therefore, as And And retail by relationship, accounts services with €XX deposits, the selling client. client with we on each we we billion. each that. based on Secondly, at on individual we if and providing to we definitely the the paid of a look have is But that we kind out deposits end, want to anybody have have

procedure experience, and So, clients with accounts. many attractive be every keeping you're then is long-term each understand discussions is oriented. They're this deposits otherwise – if also specifically and it alternative, also Securities accept an just business your it. will hopefully and on and, our client

by decision. AGBs. one May for models. That Clearly, The interrupted on introductions new by we which comdirect also the assumed the third by and plan X Court was for X Commerzbank churn The of Federal kind because we then August. of price model price

are now out. We

I sat clients. clearly that. the on asking services retail discussion little bit for have with, on And discussions our with the by to provide that's need that the we point the consent we pricing. get The paid And by we clients. are have same as to have deposit promising. and it's story second the a We for step you do We rather clients is There will feedback will step. but be

my the understanding, follow-up One tariff on In starting action a strike for and negotiations Clients. just wage increase. Corporate are just called on Verdi

tariff modeled to Or you have results? the already the tariff So is in come increase from upcoming more in negotiations? some there

I round. The to is was one which the referring from last

moment, in agree basically also it's until yeah. collective years years, years clearly result And and our of at for you have bargaining the And the of there certain a bargaining, for we the have future. certain sort you but forecast, which our new think underway is two plans I collective embedded that's the three ago.

Schmitt from comes Metzler. The from next question Jochen

a positive clarification a you others for you Just and slightly financial operating expected consolidation. say that on Did result XXXX? year

we slightly negative. Honestly, said

so far zero. So, we guided

€XXX very little a we Now depends. – it million bit given above that are much

equity to we sure how we the very tough benefits always are We on much predict that TLTRO get investments. It's see.

So therefore, there might be negative result. a slightly

next comes from question The Riccardo Rovere Mediobanca. from

Two or three, if I may.

is clarification got The I of it first kind right. a one if

NII in excluding XXXX with TLTRO indicated You line roughly to expected XXXX. be benefits

which could that of would and €XXX formal have if would to the slapped of I And rates cope quite guidance. – competition I Poland, growing in of rates, this guidance? with in million that, it, how that part you erode for that are of XXXX higher understood all kind nicely wanted if higher I with can if First the volumes you ask imagine a correctly long-term cashed is the be fact price XXXX all,

booked? an the Germany? the have, is, Are I still happened, if still, the be expect certainly keep a are have for not at in what what the question assume you say, upside to in is those to can better in of second in had in year-end should last both The DTAs where DTAs? correctly, quantify repricing to understand you, Should coming So have thing the that of of case, the that could element group sides assess in the I And probability you it equations? And you understood go result up but I position we deposits? let's the years? would be which all DTA test to Can rates taxes in result Euro wanted if the ask at reassessment and let's central positive of possible improvement the is I you XXXX. area, your on the end to

right? XXXX, the not rate if And continue Poland side mean in in Eurozone, Clients, then in Corporate On benefit. there beneficial. are benefits. the we say are tough that, the to pricing? and revenues, increases for for can we back yes, of NII. now lose increase, long, is it that A, other will a are now rate land, further And for If do continue we difficult. line side story long, which increases to is see say – not the sure, definitely see if of churn, in any all land. and that. private With is exit also And churn question. long way depends, we story go we rates, is – the relates respect Euro on comes the rate we of it, would would we But It Euro I or we would up closure the we rates if sat how would locations that see in our What's the Poland the and But other sure would have as side. to client sharp probably in deposit There be X.XX%. much excluding roughly TLTRO we churn a our will will to that there

and definitely you do long So, price. said think pricing. would mainly on of in It's clearly And Clearly, our you It's deposit size. guidance Yeah, that in net see. there, I which Germany. DTAs, territory positive about it to lot positive million on supports we'll as this expect you income I also accounting, a and lead a as digit that income. three adjust also negative could but third, would the amount our have will be tax rates, on the we you that are

The Graham Autonomous from from next Research. comes Stuart question

please. I well, or had two as three

to dividend first question is the question. The back

you you pay a of full small would year, capital. profitable the are not plenty even dividend? If why You've for got

last paid years. to a keen you'd pay dividend Surely, You've first of only a at the in dividend opportunity. very two XX be the

the on you your the Euro was gross second on are one And well? so on NII, at currently first Is top? so guidance, charging. deposit billion to €X to the income is €X shifts assuming includes deposit your benefit least of What receive? which from €X.X that guidance, Poland's rates, So Or curve the question chart over billion then, XX. as is that the or that's rate billion? billion that you or €XXX question four Poland just net Within €XXX Then question. €X.X the years, million my within back to that kind final charging million of on

the are pay On are state. to yes, would to that it keen dividend mean dividends we normal a returning because question, absolutely we

are assure transformation because capital key like that we aware in that results we think that because the that required a our prove you, that show the I also can that's are I we But not positive say need that some but the needed is And will normal is year are and case one stable create dividends and the reflect to the quarters, only are have able debate we own. will which But we is for in carefully moment, definitely However, fully paying a thing. to phase. able for to to on we to bank, show it that. belonging we in still we to full

Secondly, the included. Yes. deposit charging is

price developing, now the are originally So, months. €XXX Euro But adjustment in planned. rate. might we rates to Euro be depending developing the it rate, models the one, is a clearly it of things basically related than than the part that million, how that depends refer is of we also on higher are to. And on the the more just next how last And the

like that will develop Polish onwards So, say for but of That it's that of today. kind not not increase, XX separate also mBank. And we million surprise, the a one we calculated can NII assume yet increase. you we basis was from an increase as is including this to the And yesterday, it the that. it accordingly, see XXXX because for expect the €XX increase benefit of point have first because that, of already

clear be to on the question second Just then.

is you've So, obviously, positive rates, gone. €X after XXX points, charging of got and then plus billion basis four the deposit so years

€X.X billion billion net, €XXX of deposit €X you the is that it's minus the gross So, right? million charging gives

need to points billion still Are start increase depends – to increase little is in €X would Yeah. We you a well, Okay, deduct assuming we – see bit backup, But XXX have would total? it right? on sorry. the the for probably still deposit pricing. That we where one we with. there, referring in basis

The next from question from Hugo KBW. comes Cruz

a Just clarifications. few

underlying So, difference? explain was your you reported I for €XX couldn't the bit if first XQ on what different from So, that. NII, noticed the could is the number a I've million. by understand

extra Second, QX anything guiding you And think for on the the Polish you And loan in not TRIM, for guidance I anything said provisions, the was effect for for that year to RWAs? from issue. FX in third, material profit on there is are XQ? assume any this TRIM your

actually do benefit? that there. would mean be that not So, arguably, expect too DTA would you early a little And bit in just any to provisions smaller If amount does below can, the of this anything view a QX? you be it's to Or take book great.

is fees, question. transaction on Yeah, the the by paid end will the good securitization as first consolidated securities of In the and of we at following year interest spot a last first that the quarter. third two main reason as The consolidation, is be the was executed reported paid. quarters, cost have the that reported

third had the quarter, and we, to QX NCI between So leading the reverse therefore, QX bookings from in NII quarter. this swing significant and

for for NII we reason quarters. the therefore securitization adjusted securitization. and the that. of NII, shown in NCI, And in the have show is whole underlying all NII cost the in That's to the So, now fully in underlying the trend three

XX.X% Second, the end The material was can guidance last year. not are completely now or is XX.X% And effect. around we extra, expect for own anything also And is sure the question, a this scribblings. in. I capital yeah. guidance of fourth my read do not ratio anymore TRIM not on and the profit on with the for tiny on honestly RWAs, the quarter. very speaking, in we why It very

would which normal that quarters or would the offering something bookings, But like that for last we definitely the a something in would included. big, settlement big have in if so I we not say, guidance. book be So, our would be seen provision

one, So, would a Material the included the for not is differentiation included. is provisioning guidance. offer, be normal like in settlement

think rate the run that similar normal something would is how XQ, provisioning be you of and follow-up, should to the about? to XQ Just

€XX I between What have provisioning, seen have you everything seen? think million. million We to €XXX

extrapolation the dependent assumptions starts be base very honest, how why also possible. is now because provisioning But that summer. always make very past current an And increased over we future. the the provisioning. this a everything we and, seen weeks And to really coming many we increase. always show the claims our of for take our That experiences that's in much is and claims processes on also developing, on slowdown an So in the court is are how then and included the have the

quarters seen tough it's would we anything what past the but have So, be in to absorbable. say,

next The from question comes Jun Yang Barclays. from

here. as inflation just to the understand got Difficulty]. the I'd bit economic about One like recent three chain your [Technical events and clients a impact on How it macro. more such on I've supply disruption. does

QX kind question is outlook. of your The second about

positive a talking results. set about three-year of You're

understand, want Difficulty] that that [Technical approach, last nine Difficulty] I to of just are think kind I you positive. already [Technical months

of pages I see kind XX the will from you're Difficulty] then, implying Q-on-Q. €XXX X% [Technical [indiscernible] your actually long-term security showing [indiscernible] So can where buyer be and guidance that billion,

the loans. understand, to revenue that securities trying mainly Just those or from and coming that [Technical Difficulty] is effect what's

on question level high revenue. a on just Lastly,

XXXX. of thinking I through XXXX most headwind debate you're in Difficulty] the Given what the pricing [Technical expect change of you're because if only you revenue restructuring this revenue program come Difficulty] the doing? from about Do [Technical have to

there. happening to try Just understand the progress

really speaking, we understand your Honestly question. difficulties had to

the you us the need and et repeat first in if that macro I how disturbed. think the one And the understood it about that one, third I to Trying the – cetera. probably second least was because effects you first the somehow got line ask for embedded and we plans, correctly, at was the I one.

secondary see So, But basically effects the Private effects and biggest top clients. level see the we in result because our that's segment. segments. level we did do not expect because primary the Corporate within we in really corporate basically, we the what do adjustment our with – might some effects keep some we risk in see And therefore, why Clients Clients we the adjustment shifts top

could time the long result, do the by And the already the on And a XXXX. either for was we to revenue basically which in we we have we biggest still, €XXX think or we have for below transformation? quite fourth XXXX what would speaking, we when for three for being, even in have far on Honestly seem a question so do adjustment the level risk that question that's quarter, is expected why So partly. just preserve, given that the also of anything impact which kept is loan that provision a expect for last top guidance happen the year-to-date million, loss I million quarters. the quarter €XX

of it. but I closure plans, because, Clients the the the come also think But, Corporate locations yet churn haven't A of but the bit also on yes, on additional XXXX closure you to where see the the the one would attached side, not of will clearly side, the locations little on and the but effects exit cost gone, likely year be will entirely. will Corporate on be the Private And have Clients our it side. most the expect the we then definitely Private We side. second Clients to see definitely the in revenues Clients

now the that to as be clients churn to probably leaving lower the question, On it B, take we in the in tomorrow on to will trend the A, revenues at dependent you attached we then the or is, low, very But second Private clients come lower. how otherwise, have we repeat, XXXX. effects to Client are it's moment, call. side, so need the continues currently much more on reacting, another if see, attempt And and, is make expect the our

again one. it the me on second Let try

The second one straightforward. is, hopefully,

your net in which guidance So, the nine is a result, already you on achieved positive year full months.

understand more showing loan, page decline conservatism you color PSPC this try my X% in been to what QX? the building in – give to can for one XX maybe is And that thinking, QX. volume thing Q-on-Q is So, you're I'm where security roughly

on the that Just is trying understand, one of concern revenue site? to the

this with very third in line quarter with also costs. to revenues, respect quarter, but expect much The fourth we

a big because the of the clearly B, of be the it's in government we ending out will always quarter, long will see difference the effects quarter yellow likely fourth think piece cetera. measures, A. I most et the some

the we not million do So, for quarter. results expect fourth risk €XX

between is quarter the So, clearly result. difference third fourth big the and risk

jump in you Thanks questions. today. successful Bettina with day. bye-bye today much would and for thank will all wish and your I a very myself again. joining you And Yeah, us I And us being say for