Q3 2025 Komercni Banka Earnings Call

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Speaker #4: Hello and good afternoon , ladies and gentlemen . Welcome from commercial . And thank you for sharing your time with us today . It is the 30th of October , 2025 , and we are going to discuss the results of Commercial Banca Group for the first nine months .

Jakub Černý: Hello, good afternoon, ladies and gentlemen. Welcome from Komerční banka, thank you for sharing your time with us. Today it is the 13 October 2025, and we are going to discuss the results of Komerční banka Group for the first 9 months and Q3 of 2025. Please note that this call is being recorded. Our speakers today will be Jan Juchelka, Chairman of the Board of Directors and CEO of Komerční banka; Etienne Loulergue, Chief Financial Officer; and Anne de Kouchkovsky, Chief Risk Officer. Standing by in case you have questions from them are Miroslav Hiršl, Head of Retail Banking; Kateřina Kuchařová, Head of Corporate and Investment Banking; and Margus Simson, Chief Digital Officer. As always, we will begin with the presentation of results, which will be followed by the questions and answer session.

Jakub Czerny: Hello and good afternoon, ladies and gentlemen. Welcome from Komerční banka and thank you for sharing your time with us today. It is 30th October 2025 and we are going to discuss the results of Komerční banka group for the first nine months and third quarter of 2025. Please note that this call is being recorded. Our speakers today will be Jan Juchelka, Chairman of the Board of Directors and CEO of Komerční banka, Jiří Perla, Chief Financial Officer, and Andrej Kuskowski, Chief Risk Officer. Standing by in case you have questions for them are Miroslav Hiršl, Head of Retail Banking, Kateřina Krutská, Head of Corporate and Investment Banking, and Margo Simson, Chief Digital Officer. As always, we will begin with the presentation of results, which will be followed by the question and answer session. During the presentation part, all participants will be on listen-only mode.

Speaker #4: And third quarter of 2025 . Please note that this call is being recorded . Our speakers today will be Jan Juchelka , chairman of the Board of Directors and CEO of Banca Irish , Chief Financial Officer and Andy Kushchyovsky , Chief Risk Officer .

Speaker #4: Standing by , in case you have questions from them , are . Miroslav Hirschel , head of retail banking . Katarina , head of corporate and investment banking , and Marcus Simpson , chief digital officer .

Speaker #4: As always , we will begin with the presentation of results , which will be followed by the questions and answer session . During the presentation part .

Speaker #4: All participants Now let me ask the CEO Jan Juchelka to begin the presentation . Thank you . All right . Hello . Good morning or good afternoon .

Jakub Černý: During the presentation part, all participants will be on listen only mode. We would appreciate if you could keep your microphones muted during that time. Now, let me ask the CEO, Jan Juchelka, to begin the presentation. Thank you.

Jakub Czerny: We would appreciate if you could keep your microphones muted during that time. Now let me ask the CEO Jan Juchelka to begin the presentation. Thank you.

Jan Juchelka: All right. Hello, good morning or good afternoon. Thank you for giving us the opportunity and sharing the time with us for the presentation of Komerční banka results for the first nine months and for the third quarter. Together with me there will be Jiří Perla speaking and Andrej Kuskowski speaking, either for financial performance or for quality of assets. We can jump directly into page number four, please. Komerční banka in the first nine months was growing nicely its loan book by 3.6% on year-over-year basis, with a strong driver coming from housing loans. Here we were achieving on year-over-year basis almost 50% growth and we are in nominal values. We are coming back to the record high numbers on that particular product.

Jan Juchelka: All right. Hello. Good morning or good afternoon. Thank you for giving us the opportunity and sharing the time with us for the presentation of Komerční banka results for the first 9 months and for Q3. Together with me there will be Jiří Šperl speaking and Anne de Kouchkovsky speaking, either for financial performance or for quality of assets. We can jump directly into page number 4, please. Komerční in first 9 months was growing nicely. Its loan book by 3.6% on year-over-year basis with a strong driver coming from housing loans. Here we were achieving on year-over-year basis almost 50% growth. We are in nominal values.

Speaker #4: Thank you for giving us the opportunity and sharing the time with us for the presentation of Banca results for the first nine months and for the third quarter .

Speaker #4: Together with me , there will be speaking and raczkowski speaking either for financial performance or for quality of assets . We can jump directly into page number .

Speaker #4: Number four , please . So in first nine months was growing nicely . It's its loan book by 3.6% on year over year basis basis with with a strong driver coming from housing loans .

Speaker #4: Here we were achieving on year over year basis almost 50% growth . And we are in nominal values . We are coming back to the record high numbers on that , on that particular particular product .

Jan Juchelka: We are coming back to the record high numbers on that particular product. Let me also reiterate for the fact that it is Modrá pyramida, the subsidiary which is completely and entirely in charge of this product. That we have in parallel with this strong business performance achieved super high productivity gain when joining together or merging together the two product lines. The historical product lines, one from the bank, one from Modrá itself. I will come back to it in a detail. Deposits were up only mildly by 0.1% on year-over-year basis. The Q3, though, injected 2.6% growth. What we are happy to see is that current accounts are growing by 3.2%.

Speaker #4: Let me also reiterate for the fact that it's modra piramida the subsidiary , which is completely and entirely in charge of this product , and that we have in parallel with this strong business performance achieved super high productivity gain when joining together or merging together .

Jan Juchelka: Let me also reiterate the fact that it's Modrá pyramida stavební spořitelna, the subsidiary which is completely and entirely in charge of this product and that we have in parallel with this strong business performance, achieved super high productivity gain when joining together or merging together the two product lines, the historical product lines, one from the bank, one from Modrá itself. I will come back to it in detail. Deposits were up only mildly by 0.1% on year-over-year basis. The third quarter though injected 2.6% growth. What we are happy to see is that current accounts are growing by 3.2%. We hope it's the beginning of a trend. It's not an ad hoc event. Other assets under management, which in our case is pension schemes, insurance schemes, Amundi products or private banking products, were growing by 6.6%. Inside this category the mutual funds were growing by almost 10%.

Speaker #4: The two product lines , the historical product lines , one from the bank , one from Modra itself . I will come back to it in in a detail .

Speaker #4: Deposits were up only mildly by 0.1% year over year basis . The third quarter , though , injected 2.6% growth . And what we are happy to see is that current accounts are growing by 3.2% .

Speaker #4: And we we hope it's the beginning of a trend . It's not it's not an ad hoc and ad hoc events . Other assets under management , which is in our case is pension schemes , insurance schemes .

Jan Juchelka: We hope it's a beginning of a trend. It's not an ad hoc event. Other assets under management, which in our case is pension schemes, insurance schemes, Amundi product or private banking product, were growing by 6.6%. Inside this category, the mutual funds were growing by almost 10%. The bank remained very strong on capital, 18.4%. Core Tier 1 was 17.6%. Loan-to-deposit ratio in very, I would say, safe territory, 82%. Both short-term and long-term indicators of liquidity being safely high above the required levels. Obviously, this is something what we will present in detail.

Speaker #4: Products or private banking products . We're growing by 6.6% inside this category . The mutual funds were growing by almost by almost 10% .

Speaker #4: The bank remained very strong on capital , so 18.4% tier one was 17.6 . Loan to deposit ratio in very I would say safe territory 8,282% .

Jan Juchelka: The bank remained very strong on capital. So 18.4%, quarter one was 17.6%. Loan to deposit ratio in very, I would say, safe territory, 82, 82%. Both short-term and long-term indicators of liquidity being safely high above the required levels obviously, and this is something we will present in detail. There was the asset quality playing important role in the composition of the net profit. The net profit was totaling at CZK 13.6 billion. On reported basis we are growing by 8.3%. If we take out the one-off effect of sale of our headquarter building exactly in the third quarter of 2024, on a recurring basis, the net profit would be growing at the level of 35.1%. Cost-to-income ratio, also thanks to very strict cost management, was landing at 46.4%. ROE 14.5% on standalone basis.

Speaker #4: Both short term and long term indicators of liquidity being safely high above the required . The required levels , obviously , and this is something what we will what we will present in detail .

Speaker #4: There was the asset quality playing important role in the composition of the net profit . The net profit was totaling at 13.6 billion crowns on reported basis is we are growing by 8.3% .

Jan Juchelka: There was the asset quality playing important role in the composition of the net profit. The net profit was totaling at CZK 13.6 billion. On reported basis, we are growing by 8.3%. If we take out the one-off effect of sale of our headquarter building exactly in Q3 2024, on a recurring basis, the net profit would be growing at the level of 35.1%. cost-to-income ratio also thanks to very strict cost management was landing at 46.4%. ROE 14.5% on standalone basis.

Speaker #4: If we take out the one off effect of sale of our headquarter building exactly in the third quarter of 2024 on a recurring basis , the net profit would would be growing at the level of 35.1% .

Speaker #4: Cost to income ratio . Also , thanks to very strict cost management . Was landing at 46.4% , ROE , 14.5% on standalone basis .

Speaker #4: What happened ? Also on the side of of our business and our our financial performance is that we are successfully approaching the very last .

Jan Juchelka: What happened also on the side of our business and our financial performance is that we are successfully approaching the very last stage of transferring clients from all to the new world. As of end of September, there was 1.46 million customers already in the new systems, out of which almost 300,000 were newly onboarded customers. Numbers which have never been seen before in the reality of Komerční banka, we successfully continue on that front. We are above 1.5 million and we are above 300,000 newly onboarded clients. On the corporate governance side, we have a new Chairperson of our Supervisory Board, Cécile Bartenieff, also recently appointed Head of Mobility and International Banking and Financial Services at Société Générale.

Jan Juchelka: What happened also on the side of our business and our financial performance is that we are successfully approaching the very last stage of transferring clients from old to the new world. As of end of September, there was 1.46 million customers already in the new systems. Out of which almost 300,000 were newly onboarded customers. Numbers which have never been seen before in the reality of KB. We successfully continue on that front. We are above 1.5 million, and we are above 300,000 newly onboarded clients.

Speaker #4: Stage of transferring clients from all to the New World . As of end of September , there was 1.46 million customers already in the new .

Speaker #4: In the new systems , out of which almost 300,000 were newly onboarded customers . So numbers which have never been seen before in the in the reality of CCB , we successfully continue on that front .

Speaker #4: We are above 1.5 million and we are above 300,000 . Newly onboarded , newly onboarded clients on the corporate governance side , we have a new chairperson of our supervisory board , Cecil Bartenev , also recently appointed head of mobility and International Banking and Financial Services , Societe Generale .

Jan Juchelka: On the corporate governance side, we have a new chairperson of our supervisory board, Cécile Bartenieff, also recently appointed head of mobility and international banking and financial services at Société Générale. We have announced a new CFO, Etienne Loulergue. To some extent, alumni of Komerční banka, because he used to serve as deputy to Jiří Šperl approximately 5 years ago. Will become the CFO of KB Group starting 15 December 2025. As we have Jiří Šperl at his probably last presentation of results today, I wanted to thank him warmly for his professional service and I am encouraging everyone around this call to enjoy Jiří's presentation today.

Speaker #4: And we will we have announced a new CFO , Etienne Lulach , to some extent , alumni of Banca , because he used to serve as a deputy to Risperdal approximately five years ago , will become the CFO of CCB Group of starting 15 of December of 2025 .

Jan Juchelka: We have announced a new CFO, Etienne Lulárd, to some extent alumni of Komerční banka because he used to serve as Deputy to Jiří Perla approximately five years ago, will become the CFO of KB Group starting 15th of December 2025. As we have Jiří Perla at his probably last presentation of results today, I wanted to thank him warmly for his professional service and I am encouraging everyone around this call to enjoy Jiří's presentation today. We were ranked number one cash management bank in Czech Republic by Euromoney survey which was conducted in the third quarter of this year. We can move to next page.

Speaker #4: And as we have Irish Pearl at his probably last presentation of results today , I wanted to thank him warmly for his professional service and I am encouraging everyone around this call to enjoy presentation today .

Speaker #4: We were ranked number one cash management bank in Czech Republic by Euromoney Survey , which was conducted in the third quarter of of this year .

Jan Juchelka: We were ranked number one cash management bank in Czech Republic by Euromoney survey, which was conducted in Q3 of this year. We can move to next page. As we are approaching the advanced stage or very final stage for retail banking of the transformation program, we wanted to refresh everybody's memory of how monumental a piece of work is behind us and where is it heading to. Let me say that the leitmotif of our transformation was simplification. The significant simplification of products and the client's proposition, including the same user's environment in the mobile phone, in the desktop solution and in the branch, i.e. relationship manager solution, is one of those aspects.

Speaker #4: We can move to next page . As we are approaching the advanced stage or very final stage for banking of the transformation program , we wanted to refresh everybody retail , everybody's memory of how monumental piece of work is behind us .

Jakub Czerny: As.

Jan Juchelka: We are approaching the advanced stage or very final stage for retail banking of the transformation program. We wanted to refresh everybody's memory of how monumental piece of work is behind us and where is it heading to. Let me say that the leitmotif of our transformation was simplification. The significant simplification of products and the client's proposition, including the same user environment in the mobile phone, in the desktop solution, and in the branch that is relationship manager solution, is one of those aspects, you know, probably that we have replaced. We have put in place a new core banking system. We have completely created the analytical layer above that. As I have already mentioned, these front-end solutions, including the application which is named KB+ app, is bringing a new customer's experience to either our existing customers or future customers.

Speaker #4: And where is it heading to . So let me say that the the leitmotif of our transformation was simplification . The significant simplification of products and , and the clients proposition , including the same uses environment in the mobile phone , in the desktop solution and in the branch , i.e. relationship manager solution is one of those aspects , you know , probably that we have replaced , we have put in place a new core banking system .

Jan Juchelka: You know probably that we have replaced, we have put in place a new core banking system. We have completely created the analytical layer above that. As I have already mentioned, these front-end solutions, including the application, which is named KB+, is bringing a new customer's experience to either our existing customers or future customers. When a person is equipped by Bank ID, which is a dedicated identity, digital identity provided by a joint venture, established by banks in Czech Republic, the onboarding takes less than 10 minutes. There is fully functional account immediately at hand to the new customer. The account is depending on the subscription plan, multi-currency.

Speaker #4: We have completely created the analytical layer above that , and as I have already mentioned , this front end solutions , including . The application which is named CCB plus , is bringing a new customers experience to either our existing customers or future customers .

Speaker #4: When a person is equipped by bank ID , which is a dedicated identity , digital identity provided by a joint venture established by banks in Czech Republic , the onboarding takes less than ten minutes and there is fully functional account immediately at hand to the new to the new customer .

Jan Juchelka: When a person is equipped by Bank ID, which is a dedicated digital identity provided by a joint venture established by banks in the Czech Republic, the onboarding takes less than 10 minutes and there is a fully functional account immediately at hand to the new customer. The account is, depending on the subscription plan, multi-currency. It's covering 15 currencies and it is holding also, I would say, dynamic exchange rate functionality inside. We are fully equipped with this mobile application by instant payments in Czech koruna, incoming and outgoing instant currency exchange with preferential rates for those who are paying for their subscriptions. We have term and saving deposits embedded, building saving embedded, domestic and international ATM withdrawals and deposits free of charge, travel and insurance, insurance of personal belongings and payment cards. We have a dedicated button for chat and video call.

Speaker #4: The account is depending on the subscription plan , multi-currency . It's covering 15 currencies and it is holding also , I would say dynamic exchange exchange rate , exchange rate , functionality .

Jan Juchelka: It's covering 15 currencies, it's holding also, I would say dynamic exchange rate functionality inside. We are fully equipped with this mobile application by instant payments in Czech koruna, incoming and outgoing. Instant currency exchange with preferential rates for those who are paying for their subscriptions. We have terms and saving deposits embedded, building saving embedded, domestic and international ATM withdrawals and deposits free of charge. Travel and injury insurance of personal belongings and payment cards. We have a dedicated button for chat and video call. We have virtual assistant inside. We have debit and credit cards, overdrafts, mortgages, consumer loans, loan consolidation inside the solution.

Speaker #4: Inside we are fully equipped with this . With this mobile application by Instant payments in Czech koruna . In coming and outgoing instant currency exchange with preferential rates for those who are who are paying for their for their subscriptions .

Speaker #4: We have terms and saving deposits embedded building , saving embedded , domestic and international ATM withdrawals and deposits free of charge . Travel and injury insurance , insurance of personal belongings and payment cards .

Speaker #4: We have dedicated button for chat and video call . We have virtual and assistant inside . We have debit and credit cards , overdrafts , mortgages , consumer loans , loan consolidation .

Jan Juchelka: We have virtual assistant inside, we have debit and credit cards, overdrafts, mortgages, consumer loans, loan consolidation inside the solution. We have pension savings, mutual funds, and investment contracts inside the solution. We have periodic cash flow reviews inside the solution and we will chip in the online brokerage soon in 2026. All of this, because we were launching the new bank in April 2023, was built from scratch in fact as a greenfield solution. I'm very proud of everyone who contributed into this monumental piece of work in favor of our clients. How our clients are liking it. The net promoter score is at 38 positive points. The more they use the application, the higher the NPS score is recorded. It is the number one most downloaded banking application in the country.

Speaker #4: Inside the solution we have pension savings , mutual funds and investment contracts inside the solution , we have periodic cash flow reviews inside the solution , and we will chip in .

Jan Juchelka: We have pension savings, mutual funds, and investment contracts inside the solution. We have periodic cash flow reviews inside the solution, and we will chip in the online brokerage soon in 2026. All of this, because we were launching the new bank in April 2023, was built from scratch, in fact, as a greenfield solution, and I'm very proud of everyone who contributed into this monumental piece of work in favor of our clients. How our clients are liking it? The Net Promoter Score is at 38 positive points. More they use the application, higher the NPS score is recorded. It is number 1 most downloaded banking application in the country. We are currently beating also the international challengers and all our competitors.

Speaker #4: The online brokerage soon . In 2026 , all of this because we were launching the the new bank in April 2023 , was built from scratch .

Speaker #4: In fact , as a greenfield solution . And I'm very proud of everyone who contributed into into this into this monumental piece of work in favor of our clients .

Speaker #4: How our clients are liking it , the Net Promoter Score is at 38 positive points more . They use the application higher . The NPS score is recorded .

Speaker #4: It is number one . Most downloaded banking application in the in the country . We are currently beating . Also the the international challengers and all our competitors in App Store and Google Play .

Jan Juchelka: We are currently beating also the international challengers and all our competitors in App Store and Google Play. We are getting 4.3 or 4.5 respectively as feedback on the quality and satisfaction from the users. One of the less attractive indicators, but super important for us and even more important for our clients, is the vital process availability for KB+ customers, which is achieving 99.8%, and again something that is given or perceived as automatic. I would praise highly everyone who is in charge and who is behind this excellent process stability and availability for the customers. On the side of marketing, we brought to the market amongst the first banks the dedicated bracelet for kids and youngsters, where they can get the first impression and feelings about taking care of their own money without using a mobile phone, without using any other feature.

Speaker #4: We are getting we are getting 4.3 or 4.5 respectively . As a feedback on the quality and and satisfaction for from the users .

Jan Juchelka: In App Store and Google Play, we are getting 4.3 or 4.5 respectively as a feedback on the quality and satisfaction from the users. One of the less attractive indicators, but super important for us and even more important for our clients, is the vital process availability for KB+ customers, which is achieving 99.8%. Again, something what is given or perceived as automatic, I would praise highly everyone who is in charge and who is behind this excellent process stability and availability for the customers.

Speaker #4: One of the less attractive indicators , but super important for us and even more important for our clients , is the vital process availability for CCB plus customers , which is achieving 99.88% .

Speaker #4: And again , something what is given or or perceived as as automatic ? I would I would praise highly everyone who is in charge and who is behind this .

Speaker #4: Excellent process , stability and availability for the customers on the side of marketing we brought to the market . Amongst the first banks , the dedicated bracelet for kids and youngsters where they can get the first impression and feelings about taking care of their own money without using mobile phone , using any other , any other feature .

Jan Juchelka: On the side of marketing, we brought to the market amongst the first banks, the dedicated bracelets for kids and youngsters, where they can get the first impression and feelings about taking care of their own money, without using mobile phone, without using any other, any other feature. We went out with a series of excellent, if not even artistic, set of cards, of payment cards in cooperation with students of one of the famous artistic universities in Prague. Obviously, as we are staying the ice hockey bank of the Czech Republic, we are also coming out with a dedicated card, a payment card, which is dedicated to ice hockey and ice hockey in the, in combination with the Olympic Games.

Speaker #4: We went out with a series of of excellent , if not even artistic set of cards of payment cards in cooperation with students of one of the famous artistic universities in in , in Prague .

Jan Juchelka: We went out with a series of excellent, if not even artistic, set of cards, of payment cards in cooperation with students of one of the famous artistic universities in Prague. Obviously, as we are staying the Ice Hockey bank of the Czech Republic, we are also coming out with a dedicated payment card which is dedicated to ice hockey and ice hockey in combination with the Olympic Games. Next page is bringing us a bit closer to the numbers and graphs related to the transformation story. On the left-hand side upper part, you can see that we are sprinting to the finish line of transferring or migrating, if you wish, our retail clients from the old world to the new world. We are almost there.

Speaker #4: Obviously , as we are staying the ice hockey bank of the Czech Republic , we we are also coming out with a dedicated card .

Speaker #4: Payment card , which is dedicated to ice hockey and ice hockey in the in the Olympic , in combination with the Olympic Games .

Speaker #4: Next page is bringing us a bit a bit closer to the numbers and graphs related to the transformation story . So on the left hand side , upper part , you can see that we are sprinting to .

Jan Juchelka: Next page is bringing us a bit closer to the numbers and graphs related to the transformation story. On the left-hand side, upper part, you can see that we are sprinting to the finish line of transferring or migrating, if you wish, our retail clients from the old world to the new world. We are almost there. We are confident that we will be delivering what is the key indicator for that, which is 90% of the total number of our clients, whilst onboarding heavily new clients in the system. The predominant share of mobile banking in the new solution is sort of given. The numbers are very high.

Speaker #4: The finish line of transferring or migrating if you wish . Our retail clients from the old world to the New World , we are almost there .

Speaker #4: We are confident that we will be delivering with the key , the key indicator for that , which is 90% of of the total of the total number of of of our clients .

Jan Juchelka: We are confident that we will be delivering what is the key indicator for that, which is 90% of the total number of our clients whilst onboarding heavily new clients in the system. The predominant share of mobile banking indeed in the new solution is sort of given, so the numbers are very high. 84% of the total interactions with the bank are done from mobile, only 16% from the PC, and 1% from other channels. We are increasing the number of client interactions, so we have more often and more frequently our clients in the application, which is great news because it seems that it's designed as more like user friendly. The ergonomy of the solution is better, and we don't use it only as a service tool but also as a sales channel.

Speaker #4: Whilst onboarding heavily new clients in the in the system , the predominant share of mobile banking of mobile banking . Indeed , in the in the new solution is sort of given .

Speaker #4: So the the numbers are very high 84% of the total interactions with the bank are done from mobile . Only 16% from the from the PC , and one 1% from , from other from other channels .

Jan Juchelka: 84% of the total interactions with the bank are done from mobile, only 16% from the PC, and 1% from other channels. We are increasing number of clients interaction, so we have more often and more frequently our clients in the application, which is a great news because it seems that it's designed as more like user-friendly. The ergonomy of the solution is better, and we don't use it only as a service tool, but also as a sales channel.

Speaker #4: We are increasing number of clients interactions . So we have more often and more frequently our clients in the application which is which is a great news because it seems that it's designed as more like user friendly .

Speaker #4: The ergonomy of the solution is better , and we don't use it only as a service tool , but also as a sales channel .

Speaker #4: When speaking about sales in digital through a digital solution , let me bring your attention to the lower part of the the the lower graph at the left hand side where we have a school case , if I may say , from both the growth of digital sales and the productivity gain stemming from that .

Jan Juchelka: When speaking about sales through a digital solution, let me bring your attention to the lower part of the lower graph at the left-hand side where we have a school case, if I may say, from both the growth of digital sales and the productivity gain stemming from that. We have started back in 2020 somewhere around 16.5%. If we moved the X close to 2018, it was probably 14% of our capability of digital sales, which was growing and massively growing after the launch of new era of banking in 2023 to today's levels of 54%. In parallel with that, thanks to very hard work of our management in Retail Banking, but also in Operations and other parts of the bank, we were constantly pushing down the number of FTEs related to the same activities. Here you see the results as far as digital sales per product are concerned.

Jan Juchelka: When speaking about sales about a digital solution, let me bring your attention to the lower part of the lower graph at the left-hand side, where we have a school case, if I may say, from both the growth of digital sales and the productivity gain stemming from that. So we have started back in 2020 somewhere around 16.5. If we moved the X close to 2018, it was probably 14% of our capability of digital sales, which was growing and massively growing after the launch of new era of banking in 2023 to the today's levels of 54%.

Speaker #4: So we have started back in 2020 somewhere around 16.5 , if we if if we moved the the the X close to 2018 , it was probably 14% of our capability of digital sales , which was growing and massively growing .

Speaker #4: After the launch of of new era of Banking in 2023 to the today's levels of 54% , in parallel with that , thanks to very hard work of our management in retail banking , but also in the in operations and other parts of the bank , we were constantly pushing down the number of FTEs related to related to the same , to the same activities .

Jan Juchelka: In parallel with that, thanks to very hard work of our management in retail banking, but also in operations and other parts of the bank, we were constantly pushing down the number of FTEs related to the same activities. Here you see the results. As far as digital sales per product are concerned, you see that, for example, investment contracts are fully digitized by 100%, overdraft 65% or 66%, respectively, et cetera, et cetera, when reading from the right to the left. Starting recently, we are putting the target numbers for digital sales for each of those products individually. Not always we will be trying to achieve 100%, but what is probably more important that overall number of 54% will be further growing.

Speaker #4: So here you see the results as far as digital sales per product are concerned , you see that , for example , investment contracts are fully digitized by 100% overdraft , 65 or 66 .

Jan Juchelka: You see that, for example, investment contracts are fully digitized by 100%, overdraft, 65 or 66% respectively, etc. etc. When reading from the right to the left, starting recently, we are putting the target numbers for digital sales for each of those products individually. Not always we will be trying to achieve 100%. What is probably more important is that overall number of 54% will be further growing and it will be us deciding what is the targeted targeted level. Next page please. When speaking about the transformation, it's digital, it's simplification, but it's also searching for other efficiency gain and productivity gain inside the group. One of them, one of the cases was the complete adoption of KB Portarens 3, which is the network of tied agents originally acting below the name of Modrá.

Speaker #4: Respectively . Cetera . ET cetera . When reading from the right to the left . Starting recently , we are putting the target numbers .

Speaker #4: Up for for digital sales . For each of those products individually , not not always . We will be trying to achieve 100% .

Speaker #4: But what is probably more important that the overall number of 54% will be further growing and it will be us deciding what is the targeted targeted level .

Jan Juchelka: It will be us deciding what is the targeted level. Next page, please. When speaking about the transformation, it's digital, it's simplification, but it's also searching for other efficiency gain and productivity gain inside the KB Group. One of the cases was the complete adoption of KB Poradenství, which is the network of tight agents originally acting below the name of Modrá pyramida, where we were unifying the brands, where we were simplifying the product portfolio, where we were engaging with the agents and equipping them with the proper proposition, not only from Modrá pyramida, but from the entire KB Group. Harmonizing the IT environment for them in order to make them fully integrated into our system.

Speaker #4: Next page please . So when when speaking about the transformation , it's digital . It's simplification . But it's also searching for other efficiency gain and productivity gain inside inside the group .

Speaker #4: One of them one of the cases was the complete adoption of CCB , which is the network of tied agents originally acting below the name of mudra , where we were unifying the brand , where we were simplifying the product portfolio , where we were engaging with the with the agents and equipping them with the proper proposition , not only from Mudra , but from the entire CCB group harmonizing the IT environment for them in order to make them fully integrated into our into our system , centralizing the everything .

Jan Juchelka: We were unifying the brand, we were simplifying the product portfolio, we were engaging with the agents and equipping them with the proper proposition, not only from Modrá, but from the entire KB group. Harmonizing the IT environment for them in order to make them fully integrated into our system. Centralizing everything with this back office on that particular activity and bringing them to the campus of the headquarter of Komerční banka. We did it also with other companies. Everyone who is 100% owned went through the same process. Modrá on its own went through an incredible story for last couple of years when we were changing the systems, fully digitizing the customer journey, or almost fully digitizing because we don't have still digitized solution for the cadastral of real estate, but soon to be there. We have merged everything that was mortgages with Modrá pyramida stavební spořitelna.

Speaker #4: What is back office on that on that particular particular activity and bringing them to the campus of of the headquarter of of Komercni .

Jan Juchelka: Centralizing everything with this back office on that particular activity, and bringing them to the campus of the headquarter of Komerční. We did it also with other companies. Everyone who is 100% owned went through the same process. Modrá, on its own, went through an incredible story for the last couple of years when we were changing the systems, fully digitizing the customer journey, or almost fully digitizing because we don't have still digitized solution for the disaster of real estate. Soon to be there. We have merged everything what was mortgages with Modrá pyramida. Instead of having two product lines, we are having one product line.

Speaker #4: We did it also with other companies . Everyone who is 100% owned went through the same , the same process . Mudra on its own , went through an incredible story for the last couple of years .

Speaker #4: When we were changing the systems , fully digitizing the , the , the customer journey or almost fully digitizing because we don't have still digitized solution for the cadastre of of of real estate .

Speaker #4: But soon to be there . And we have we have merged everything . What was mortgages with mudra Piramida . So instead of having two product lines , we are having one product line .

Jan Juchelka: Instead of having two product lines, we are having one product line. The achieved productivity gain will be above 100% once the overall transformation is finalized. SG Equipment Finance Czech Republic and Slovakia was fully acquired by KB Group. You probably know that above our heads there was the disposal of SGAT International by Société Générale. As a result, we are 100% owner. The one group principle will be applied and we will unlock additional potential for both commercial and business activities as well as the synergies on the side of the back offices. We have picked up also Upvest. Why? Because it's a super successful platform for raising money and investing them into real estate development. These guys are able to subscribe high multiples of the previous year and they do it for a couple of consecutive years already.

Speaker #4: And again the achieved gain will be Once the overall transformation is being is being finalized . Zgf as equipment finance Czech and Slovak Republic was fully acquired by KB Group .

Jan Juchelka: Again, the achieved productivity gain will be above 100% once the overall transformation is being finalized. SGEF, SG Equipment Finance, Czech and Slovak Republic, was fully acquired by KB Group. You probably know that above our heads, there was the disposal of SGEF International by Societe Generale. As a result, we are 100% owner. Again, the one group principle will be applied, and we will unlock additional potential for both commercial and business activities, as well as the synergies on the side of the back offices. We have picked up also Upvest. Why? Because it's a super successful platform for raising money and investing them into real estate development.

Speaker #4: You probably know that above our heads there was the disposal of ZF international by by by Societe Generale and as a result , we are 100% owner .

Speaker #4: So again the one group principle will be applied and we will we will unlock additional potential for both commercial and business activities as well as the synergies on the side of the of the back of the back offices .

Speaker #4: We have picked up also up west . Why ? Because it's it's super successful platform for raising money and invest and investing them into into into into real estate developments .

Speaker #4: These above 100% . , high multiples of of the previous year . And they do it for a couple of consecutive years already .

Jan Juchelka: These guys are able to subscribe, you know, high multiples of the previous year, and they do it for a couple of consecutive years already. We became 100% owner here. We can move to the next page. Here I am bringing you back to the reality of today. Czech Republic. Czech Republic is very stable country, from both economic and I hope we will confirm also from the political point of view. We are, like, couple of weeks after the general elections and the new government is to be established.

Speaker #4: And we became we became 100% owner here . So we can move to the next page . And here I'm bringing you back to the reality of , of of today .

Jan Juchelka: We became 100% owner here, so we can move to the next page. Here I'm bringing you back to the reality of today. Czech Republic is a very stable country from both economic and, I hope we will confirm also, from the political point of view. We are a couple of weeks after the general elections and the new government is to be established. When speaking about the new government, what we hear from the nominees or from the main representatives of the political movements and parties who won the elections, there should be a fiscal stimulus for Czech economy stemming from this new government. We will see how that will work. We very much see investment-oriented or public investment or infrastructure investment-oriented group of people preparing themselves to step into the government.

Speaker #4: So Czech Republic , Czech Republic is very stable country from both economic and I hope we will confirm also from the political point of view , we are like couple of weeks after the the general elections and the new government is to be to be established .

Speaker #4: When speaking about the new government , what we hear from the nominees or from the from the main representatives of the political movements and parties who won , who won the , the , the elections .

Jan Juchelka: When speaking about the new government, what we hear from the nominees or from the main representatives of the political movements and parties who won the elections, there should be a fiscal stimulus for Czech economy stemming from this new government. We will see how that will work. What we very much see, investment-oriented, or public investment or infrastructure investment-oriented, group of people preparing themselves to step into the government. If you combine that with the expected or already existing fiscal stimulus for German economy, the overall environment of making business in Czech Republic is being improved more or less as we speak.

Speaker #4: There should be a fiscal stimulus for Czech economy stemming from this new government . So we will see how that will work . But what we very much see investment oriented or public investment or infrastructure investment oriented group of people preparing themselves to to step into , into the government .

Speaker #4: If you combine that with the expected or already existing fiscal stimulus for German economy , the overall environment of making business in Czech Republic is being improved more or less , more or less as we speak .

Jan Juchelka: If you combine that with the expected or already existing fiscal stimulus for German economy, the overall environment of making business in Czech Republic is being improved more or less as we speak. In combination with that, the representatives of the winners of the general elections are also speaking about compressing the energy prices, which might help also with lower level of impulses towards inflation. Let's see. At least the first signals are, from let's say business perspective, pretty promising. The GDP was growing by 2.6% on a year-over-year basis. Industrial production was down. Combination of weakening Germany performance plus a bit of mess on the supply chain part and the impact of tariffs imposed by the United States is bringing a little bit down the industrial production, which is perfectly balanced by strongly growing construction output by 17.1% back in August 2025.

Speaker #4: In combination with that , the representatives of the of of the winners of the election of , of the general elections are also speaking about compressing the energy .

Jan Juchelka: In combination with that, the representatives of the winners of the election, of the general elections are also speaking about compressing the energy, the energy prices, which might help also with the lower level of impulses towards the inflation. Let's see, at least the first signals are from, let's say, business perspective, pretty promising. The GDP was growing by 2.6% on a year-over-year basis. Industrial production was down.

Speaker #4: The energy prices which might help also with lower level of impulses towards towards the inflation . So let's see . But at least the first signals are from , let's say , business perspective , pretty , pretty promising .

Speaker #4: The GDP was growing by 22. 6% on a year over year basis . Industrial production was down . Combination of weakening Germany performance plus a bit of mess on the supply chain parts and and the impact of tariffs imposed by the United States is bringing a little bit down the industrial production , which is perfectly balanced by strongly growing construction output by 17.1% back in August 2025 .

Jan Juchelka: A combination of weakening Germany performance, plus a bit of mess on the supply chain part, and the impact of tariffs imposed by the United States is bringing a little bit down the industrial production, which is perfectly balanced by strongly growing construction output by 17.1% back in August 2025. This is stemming from infrastructure investments and also pretty booming investments on the side of real estate, housing, but not only. Comes the unemployment rates remains very low. On the other side, the wages are growing and beating the inflation.

Speaker #4: This is stemming from infrastructure investments and also pretty , pretty booming investments on the side of of real estate housing , but not only the the the unemployment rates remains very low .

Jan Juchelka: This is stemming from infrastructure investments and also pretty booming investments on the side of real estate housing. Not only that, the unemployment rates remain very low. On the other side, the wages are growing and beating the inflation. So 7.8% nominal value nominal growth, but 5.3% real growth of wages in the country, which is also giving the answer of who is the main engine of the growth of GDP, which is the title remaining in hands of Czech households. The inflation, as I have mentioned, was at 2.3% level in September. Czech National Bank is remaining calm for the time being and it's keeping the repo rate at 3.5%, which is minus 50 bps on year-to-date basis but was not changed at the latest pricing session of the board of Czech National Bank. Czech koruna is strengthening vis-à-vis euro and even more vis-à-vis U.S. dollar.

Speaker #4: On the other side , the wages are growing and beating . The inflation . So 7.8% nominal value , nominal growth , but 5.3 real growth of of wages in the country , which is also giving the answer of who is the main engine of the growth of of GDP , which is which is which is the title remaining in hands of Czech households .

Jan Juchelka: 7.8% nominal growth, but 5.3% real growth of wages in the country, which is also giving the answer of who is the main engine of the growth of GDP, which is the title remaining in hands of Czech households. The inflation, as I have mentioned, was at 2.3% level in September. Czech National Bank is remaining calm for the time being, and it's keeping the repo rate at 3.5%, which is -50 basis points on year-to-date basis, but was not changed at the latest pricing session of the board of Czech National Bank. Czech koruna is strengthening vis-à-vis euro and even more vis-à-vis US dollar.

Speaker #4: The inflation , as I have mentioned , was at 2.3% level in September , Czech National Bank is remaining calm for the time being , and it's keeping the repo rate at 3.5% , which is -50 on year to date basis .

Speaker #4: But was not changed for at the latest . Pricing , pricing session of the board of Chernobyl . Czech koruna is strengthening vis a vis euro and even more vis a vis US dollar .

Speaker #4: Probably we can move to next page and this is already the business performance . So as as I have already mentioned , the gross loans were up by 3.6% .

Jan Juchelka: Probably we can move to next page. This is already the business performance. As I have already mentioned, the gross loans were up by 3.6%. Very strong dynamics related to mortgages and Modrá pyramida loans, so housing loans in general 55.2%. When you compare Q3 2024 versus Q3 2025, we believe that the fine-tuning of the capacity of processing the new requests combined with the fact that the dynamics of the market will remain strong will bring us to slightly higher market share. As KB Group, the rest of the segments were growing at approximately around 2%, 2.5%, 2.6%, 2.7%. I would say in general the businesses, the households were taking let's say appropriate part of their new financing from KB. When zooming on corporate financing or corporate loans, we are witnessing the growth of 2.7% Q3 versus Q3.

Jan Juchelka: Probably we can move to next page. This is already the business performance. As I have already mentioned, the gross loans were up by 3.6%. Very strong dynamics related to mortgages and Modrá pyramida loans, so housing loans in general. 55.2% when you compare Q3 2024 versus Q3 2025. We believe that the fine-tuning of the capacity of processing the new requests, combined with the fact that the dynamics of the market will remain strong, will bring us to slightly higher market share as KB Group. The rest of the segments were growing at around 2%, 2.5%, 2.6%, 2.7%.

Speaker #4: Very strong dynamics related to mortgages and mudra loans . So housing loans in general , 55.2% . When you when you compare Q3 24 versus Q2 Q3 25 , we believe that the fine tuning of the capacity of processing the new requests , combined with the fact that the dynamics of the market will remain strong , will will bring us to to slightly higher market share as as CCB Group .

Speaker #4: The rest , the rest of the of the of the segments were growing at approximately where growing at around 22.5 , 2.6 , 2.7% .

Speaker #4: So I would say in general , the businesses , the households were taking , let's say , appropriate part of of their , of their new financing from , from KB when zooming on corporate financing or corporate loans , we are we are we are witnessing the growth of 2.7% Q3 versus Q3 .

Jan Juchelka: I would say, in general, the businesses, the households were taking, let's say, appropriate part of their, of their new financing from KB. When zooming on corporate financing or corporate loans, we are witnessing the growth of 2.7% Q3 versus Q3. Inside that, these gap solutions were growing slightly higher than small businesses and corporates. Next, next page, please. All of this obviously was translated into KB being at and serving and servicing its clients with the main transformative transactions. You can see public sector represented by Elektrárna Dukovany.

Speaker #4: Inside that this gap solutions were growing slightly higher than than small businesses and and and corporates . So next next page please . All of this obviously was translated into CCB being at and serving and servicing its clients with the the of with the main transformative transactions .

Jan Juchelka: Inside that, these gap solutions were growing slightly higher than small businesses and corporates. Next page please. All of this obviously was translated into KB being at and serving and servicing its clients with the main transformative transactions. You can see public sector represented by Elektor Arnadukovany, also private sector represented by almost the entire rest of the transactions you see in front of you, with the exception of two which are municipal driven. Everything that is green here represents the format of green financing or green bonds. We can move to the next page, which is bringing us to deposits. It remains stable, plus 0.1%. I would say we would love to see that higher, and we took appropriate measures and established concrete tasks to get higher portion from deposits.

Speaker #4: You can see public sector represented by Dukovany . Also in also private sector represented by almost the entire rest of of the transactions you see in front of you with with the exception of , of two which are municipal driven , everything is green here represents to format of green financing or green green bonds .

Jan Juchelka: Also in, also private sector represented by almost the entire rest of the transactions you see in front of you with the exception of two, which are municipal driven. Everything what is green here represents the format of green financing or green bonds. We can move to the next page, which is bringing us to deposits. It remains stable, plus 0.1%. We would love to see that higher and we took appropriate measures and established concrete tasks to get higher portion from deposits.

Speaker #4: We can move to the next page which is bringing us to deposits . It remains stable plus 0.1% . I would say . I would say we would love to see that higher .

Speaker #4: And we took appropriate measures and established a concrete , concrete tasks to get to get higher portion from from deposits . When decomposing the the deposits on the side of by , by the by the category , we are happy to to see that the dynamics of growth of non-paid i.e. current accounts is is coming back to , let's say , better , better , better , better levels 3.2% , whereas the saving accounts are in , in , in competition mainly with investment solutions .

Jan Juchelka: When decomposing the deposits by the category, we are happy to see that the dynamics of growth of non-paid, i.e., current accounts, is coming back to, let's say, better levels, 3.2%. Whereas the saving accounts are in competition mainly with investment solutions. When speaking about investment solutions on the left-hand side, you see that overall we are growing by 6.6%. The assets under management in mutual funds by almost 10%, whereas the life insurance and pension schemes, 2.1% and 2.3% respectively. Next page is bringing us to financial performance, and it's my pleasure to hand over the word to Jiří Šperl. Thank you.

Jan Juchelka: When decomposing the deposits on the side of by the category, we are happy to see that the dynamics of growth of non paid, that is current accounts, is coming back to, let's say, better levels, 3.2%. Whereas the savings accounts are in competition mainly with investment solutions. When speaking about investment solutions on the leverage side, you see that overall we are growing by 6.6%. The assets under management in mutual funds by almost 10%, whereas the life insurance and pension schemes 2.1% and 2.3% respectively. Next page is bringing us to financial performance, and it's my pleasure to hand over the word to Jiří Perla. Thank you.

Speaker #4: When speaking about investment solutions on left hand side , you see that overall we were growing by 6.6% . The assets under management in mutual funds by almost 10% , whereas the life insurance and pension schemes , 2.2.1 and 2.3% respectively .

Speaker #4: So next page is bringing us to financial performance . And it's my pleasure to hand over the words to Irish . Thank you .

Speaker #5: Thank you very much , John . Indeed . Very good financial performance in Q3 and first nine months of the of the year .

Jiří Perla: Thank you very much Jan. Indeed, very good financial performance in Q3 and first nine months of the year. I love to repeat key figures once again. So KB Group generated almost CZK 13.6 billion net profit after tax, which is 8.3% more than one year ago. If we put aside the one-off coming from the sale of Václavská and Amniorská in head office of Václavská in Q3 last year, the growth would be even much higher, 35%. It's visible from the waterfall chart on the left-hand side that basically all categories contributed positively. That's true that highest year-on-year impact is coming from super positive cost of risk, that thanks to excellent asset quality of KB loan portfolio and also due to release of part of retail overlay provisions, switched from the creation of the provision in 2024 to net release in 2025, and the impact is massive.

Jiří Šperl: Thank you very much, Jan. Indeed, a very good financial performance in Q3 and first 9 months of the year. I love to repeat key figures once again. KB Group generated almost CZK 13.6 billion net profit after tax, which is 8.3% more than one year ago. If we put aside the one-off coming from the sale of Václavské náměstí in head office of Václavské náměstí in Q3 last year, the growth would be even much higher, 35%. It's visible from the waterfall chart on the left-hand side that basically all categories contributed positively. That's true that highest year-on-year impact is coming from super positive cost of risk.

Speaker #5: I love to repeat the key figures once again. So, CCB Group generated almost $13.6 billion net profit after tax, which is 8.3% more than one year ago.

Speaker #5: And if you put aside the one offer coming from the sale of amnesty in head office . At amnesty in Q3 last year , the gross would be even much higher .

Speaker #5: 35% . It's visible from the waterfall chart on the left hand side that basically all categories contributed positively . That's true . That highest year on year impact is coming from from super positive cost of risk that thanks to excellent asset quality of CCB , long portfolio and also due to release of part of retail overlay provisions , the switch from the creation of the provision in 2024 to release in 2025 , and the impact is massive .

Jiří Šperl: That, thanks to excellent asset quality of KB's loan portfolio and also due to release of part of retail overlay provisions, switched from the creation of the provision in 2024 to net release in 2025. The impact is massive. It is around CZK 2.3 billion. It's also very much worth to mention that also the top line was growing in first 9 months by almost 13%, while costs went down by 4.3% and thus generating a very strong positive jaws. Also the quarter-over-quarter perspective, our trend is positive. That's right upper chart and growing, as seen there, i.e., quarter-over-quarter, plus 3.3%.

Speaker #5: It is around 2.3 billion crowns . It's also very much worth to mention that also , the top line was growing in first nine months by almost 30% , while costs went down by 4.3% and thus generating very strong positive positive .

Jiří Perla: It is around CZK 2.3 billion. It's also very much worth to mention that although the top line was growing in first nine months by almost 30% while costs went down by 4.3%, thus generating very strong positive jaws. Also, the quarter-over-quarter perspective, our trend is positive. That's right, upper chart and growing as seen there, that is quarter-over-quarter plus 3.3%. Naturally, the very good P&L result transposed also to the solid profitability indicators, ROE being at 16.5%, with, and this should be reminded as well, at the same time strong CET1 ratio at almost 18%, exactly 17.66%. This is bringing me to the balance sheet evolution. Yes, so the balance sheet shrinks a bit year-on-year by 2.3%, which is however almost solely due to the variable of repo operations with the clients.

Speaker #5: Joe's also , the quarter over quarter perspective , our trend is is positive . That's right . Upper chart and growing as seen there .

Speaker #5: I quarter over quarter plus 3.33% naturally the very good result transposed also to the solid profitability indicators . But also being at 16.5% with and this should be reminded as well .

Jiří Šperl: Naturally, the very good PNL result transpose also to the solid profitability indicators. Both being at 16.5% with, and this should be reminded as well. At the same time, strong CET1 ratio at almost 18%, exactly 17.66%. This is bringing me to the balance sheet evolution. Yes. The balance sheet shrinks a bit year on year by 2.3%, which is, however, almost solely due to the very volatile repo operations with the clients. If you compare the balances year over year, it would be roughly CZK 80 billion less in Q3 this year versus one year ago. This is basically explaining full variation.

Speaker #5: At the same time strong Cet1 ratio as almost 18 . Exactly 17.66% . This is bringing me to the to the balance sheet evolution .

Speaker #5: Yes . So the balance sheet shrinks a bit year on year by 2.3% . And which is however almost solely due to the very volatile repo operations with the with the clients .

Speaker #5: If we compare , there are balances year over year , it would be roughly 80 billion . Less in Q3 this year versus one year one year ago .

Jiří Perla: If we compare the balances year-over-year, it would be roughly CZK 80 billion less in Q3 this year versus one year ago. This is basically explaining full variation on the liability side. Still, there is now a covered bond worth exactly €750 million that was successfully issued in mid-October. Of course, you will see it in the balance sheet during the Q4 results presentation. On the asset side, there are basically no changes in trends, only to mention that the volumes of the government securities continue to decline a bit year-to-date as we are preferring for the time being investments into repo with the Czech National Bank and of course swapped into longer maturities following the long-term duration of our liabilities. Now let me go briefly through the main categories as usual.

Speaker #5: So this is basically explaining full , full variation on the liability side . Still , there is not a covered bond . Worse , roughly or exactly €750 million .

Jiří Šperl: On the liability side, still there is not a covered bond worth roughly or exactly EUR 750 million. That was successfully issued in mid-October. Of course, you will see it in the balance sheet during the Q4 results presentation. On the asset side, there are basically no changes in trends. Only to mention that the volumes of the JAVIs continue to decline a bit year to date. As we are preferring for the time being, investments into repo with the Czech National Bank, and of course, swapped into longer maturities following the long-term duration of our liabilities. Now let me go briefly through the main categories as usual. Also, I would say there are not too many surprises.

Speaker #5: That was successfully issued in the mid of October . And of course you will see it in the balance sheet during the Q4 results presentation .

Speaker #5: On the asset side, there are basically no changes in trends. Only to mention that the volumes of the guys continue to decline a bit year to date.

Speaker #5: As we are preparing for for the time being , investments into repo with the Czech national Bank and Afco swapped into longer , longer maturities following the the long term duration of of our liabilities .

Speaker #5: Now let me go briefly through the main categories . As usual . Also , I would say that there are not too many surprises .

Jiří Perla: Although I would say that there are not too many surprises, the positive trends do continue and will continue, including mainly positive generation. Let's start with the net interest income, so to say, despite the fact that NII was, I would say, severely hit by doubling of mandatory reserve requirement as of January 1, 2024, it is growing. It is growing at a solid pace by 3.3% year on year. It's basically the case for key categories, checkers. What I mean is income from the deposits and income from the loans, and both growing by roughly 4%. The drivers behind are, however, a bit different. NII loan deposit is positively influenced mainly by spread effect, by spreads supported by improved structure of the deposits, while the income from loans is driven solely by volumes and the spreads remain basically sluggish. Similar trends are visible also from the quarterly perspective.

Speaker #5: The positive trends do continue and will . Continue , including mainly positive generation generation . So let's start with the net interest income .

Jiří Šperl: The positive trends do continue and will continue, including mainly positive jaws generation. Let's start with the net interest income. Despite the fact that NII was severely hit by doubling of mandatory reserve requirement as of 1 January this year, it is growing. It is growing solid pace by 3.3% year on year. It's basically the case both for key categories chapters. What I mean is income from the deposits and income from the loans, both growing by roughly 4%. The drivers behind are however, a bit different. NII from deposit is positively influenced mainly by spread effect, by spreads, supported by improved structure of the deposits, while the income from loans is driven solely by volumes, the spreads remains basically flattish.

Speaker #5: So to say, despite the fact that NII was, I would say, severely hit by the doubling of the mandatory reserve requirement as of January 1st this year, it is growing.

Speaker #5: It is growing solid pace by 3.3% year on year , and it's basically the case both for key categories , chapters . What I mean is income from deposits and income from the loans , and both growing by roughly four 4% .

Speaker #5: The drivers behind , however , a bit a bit different . And I don't deposits is positively influenced mainly by by spread effect by spreads supported by improved structure of deposits .

Speaker #5: While the income from loans is driven solely by volumes and the spreads remain basically flattish, similar trends are visible also from the quarterly perspective.

Jiří Šperl: The similar trends are visible also from the quarterly perspective. That's right bottom chart. On quarterly perspective, NII is growing by +1.5%. NIM, the chart on upper left-hand side. On year-to-date basis, it is 1.70. It is flattish quarter over quarter, but positive year on year by 6 bps, which is a positive news after some time, after some time. On top of that, we are expecting that the trend of the rise is gonna continue also in Q4 this year, and I can touch it during the Q&A if needed. Let's move to the fees income. Income from fees and commissions is also growing by +3.4%. There are again, usual suspects in terms of growth, i.e.

Speaker #5: That's right . Bottom . Bottom chart on quarterly perspective , Nia is growing by plus 1.5% . Nim . The chart on the upper left hand side on year to date basis .

Jiří Perla: That's right, bottom chart on quarterly perspective, NII is growing by +1.5%. Name the chart on the upper left-hand side. On a year-to-date basis, it is 1.70. It is flattish quarter over quarter, but positive year on year by 6 bps, which is positive news after some time. After some time, on top of that, we are expecting that the trend of the rise is going to continue also in Q4 this year. I can touch it during the Q&A if needed. Let's move to the fees income. Income from fees and commissions is also growing by +3.4%. There are again usual suspects in terms of growth. That is mainly fees from cross selling and specialized financial services, both growing on nine months basis by 13 to 14%.

Speaker #5: It is 1.70 . It is flattish quarter over quarter , but positive year on year . By six bips , which is which is a positive news .

Speaker #5: After some time after sometime on top of that , we are expecting that the trend of the rise is going to continue . Also in in Q4 this year .

Speaker #5: And I can touch it during the Q&A if if needed . Let's move to the fees , income . So income from fees and commissions is also growing by plus 3.4% .

Speaker #5: And there are again usual suspects in terms of growth in mainly fees from cross-selling and specialized financial services, both growing on a nine-month basis by 13 to 14.

Jiří Šperl: mainly fees from cross-selling and specialized financial services, both growing on 9 months basis by 13% to 14%. In the area of the cross-sell fees, it is a reflection of both volume growth of non-bank assets under management, but also improved structure, which is still continuing improving. What I mean is that there is kind of maneuver from more money market type of mutual funds to more, more dynamic. Quarterly perspective, that's right, bottom chart is growing 1.3 quarter-over-quarter, and here almost solely supported by the cross-sell fees. At the same time, we also see a first signs of improvements on the deposit product fees, where the income from new packages/suites are classified. The mirror, of course, can be seen in the transactional fees.

Speaker #5: 14% . In the era of the cross selfies , it is an reflection of both volume growth of under management , but also improved structure , which is still continuing , improving .

Jiří Perla: In the area of the cross sell fees, it is a reflection of both volume growth of non-bank assets under management, but also improved structure, which is still continuing improving. What I mean is that there is kind of maneuver from more money market type of mutual funds to more dynamic. Quarterly perspective, that's right, bottom chart is growing 1.3% quarter over quarter, and here almost solely supported by the cross sell fees. At the same time, we also see first signs of improvements on the deposit product fees, where the income from new packages studies are classified. The mirror, of course, can be seen in the transactional fees, financial operations growing pretty dynamically year over year by 7.6% again on nine months basis. Here it is solely influenced by the capital markets activities and mainly boosted by interest rates hedging activities.

Speaker #5: And what I mean is that there is kind of maneuver from more money market type of of mutual funds to more , more dynamic quarterly perspective .

Speaker #5: That's right . Bottom chart . Is growing 1.3 quarter over quarter . And here almost solely supported by the cross-sell fees . At the same time , we also see a first signs of improvements on the deposit product fees , where the income from new packages studies are classified , the mirror can be seen in the transactional transactional fees , financial operations .

Jiří Šperl: Financial operations growing pretty dynamically year over year by 7.6%, again, on 9 months basis. Here it is solely influenced by the capital markets activities and mainly boosted by interest rates hedging activities. While the FX income from the payments is more or less steady. That's the blue part of the chart. The dynamics is even higher on a quarter over quarter basis, growing by strong 15.4%. Here both elements contributed strongly, including also the FX from the structural book, growing by a strong 10%.

Speaker #5: Yeah , growing pretty dynamically year over year by 7.6% . Again on nine months basis . And here it is solely influenced by the capital markets activities and mainly boosted by interest rates .

Speaker #5: Hedging activities . While the income from repayments is is more or less more or less flattish . That's the blue part of the of the chart .

Jiří Perla: While the FX income from the payments is more or less flattish. That's the blue part of the chart, the dynamics is even higher on a quarter over quarter basis, growing by strong 15.4%. Here both elements contributed strongly, including also the FX from the structural book, growing by a strong 10%. Here to say, the jump of or in FX income from the structural book was somehow expected due to the seasonality, seasonally strong FX convergence, as I was somehow indicating already three months ago. Finally, before passing words to OpEx, on nine months basis OpEx is declining strongly by 4.3% year on year, supported basically by all components except depreciation and amortization. Let's go briefly into the structure. Personal expenses, it's almost done or covered by the decrease by the increased efficiency of the bank and thus decrease the number of the employees.

Speaker #5: The the the dynamics is even higher on a quarter over quarter basis , growing by strong 15.4% . And here both elements contributed strongly , including also the effects from the structure book growing by strong 10% here to say the jump of or in FX income from the structural book was somehow expected due to the seasonality or seasonality .

Jiří Šperl: Here to say the jump of or in FX income from the structural book was somehow expected due to the seasonality or seasonally strong FX conversions, as I was somehow indicating already 3 months ago. Finally, before passing the word to Anne, OpEx. On 9 months basis, OpEx is declining strongly by 4.3% year-on-year, supported by basically by all components except depreciation and amortization. Let's go briefly into the structure. Personal expenses, it's almost done or covered by the increased efficiency of the bank, and thus decrease the number of the employees. Year-on-year, the number of FTEs is by almost 6% lower. First. Second, administrative costs, also declining by -4%.

Speaker #5: A strong FX convergence , as I was somehow indicating , or three months ago . And finally , here before passing words to on her opex .

Speaker #5: So on nine months basis , opex is declining strongly by 4.3% year on year , supported by basically by all components except depreciation and amortization .

Speaker #5: So let's go briefly into the structure . So personal expenses , it's almost done or covered by the decrease by the increased efficiency of the bank .

Speaker #5: And thus decrease the number of employees . So year on year the number of FTEs is by almost 6% lower first second administrative costs also declining by -4% .

Jiří Perla: Year on year, the number of FTEs is by almost 6% lower. First, second, administrative costs also declining by minus 4%. Here that is not the main, let's say, candidate or driver of the growth and of the decline. Basically, the savings go across all main categories, skipping regulatory funds. It was already commented in detail during the Q1 this year presentation and the exception is depreciation and amortization. Again, here, no surprise, it is still reflecting mainly investments into digitization and our transformation in more general sense. All in all, this led to the further improvement of cost-to-income ratio to the level, and here commenting nine months basis as well, sorry, of 46.1% while one year ago it was 49.2%. That's the output of the positive jaws.

Speaker #5: But here that is not the main . Let's say candidate or driver of the growth and of the decline . And basically the savings go across all main categories skipping regulatory funds .

Jiří Šperl: Here that is not the main, let's say, candidate or driver of the growth and of the decline. Basically the savings go across all main categories. Skipping regulatory funds, it was already commented in detail during the Q1 this year presentation. The exception is depreciation and amortization. Again, here, no surprise. It is reflecting main investments in digitization and our transformation in more general sense. All in all, this led to the further improvement of our cost-to-income ratio to the level, here commenting 9 months basis as well. Sorry. Of 46.1%, while 1 year ago it was 49.2%. That's the output of the positive jaws, as I was commenting briefly before.

Speaker #5: It was already commented in detail during the Q1 Q1 . This year presentation , and the exception is depreciation and amortization . And again here no surprise it is still reflecting mainly investments into in digitization and our transformation in more general and general sense .

Speaker #5: All in all, this leads to the further improvement of the cost-income ratio to the level. And here, I would like to comment on a nine-month basis as well.

Speaker #5: Sorry , of 46.1% . While one year ago it was for the for the 9.2 and that's the output of the positive growth .

Speaker #5: As I was commenting briefly before , having said that simply , the trends are further continuing even in this chapter and the good evidence is that the quarterly cost income ratio does the very bottom part of the chart , the the quarterly ratio in Q3 this year is the lowest , at least since since last last two years .

Jiří Perla: As I was commenting briefly before, having said that simply, the trends are further continuing even in this chapter and a good evidence is that the quarterly cost-to-income ratio, that's the very bottom part of the chart. The quarterly cost-to-income ratio in Q3 this year is the lowest at least since last two years. Now let me pass over to Ann who is going to comment. Quality of the assets and cost of risk. Thank you.

Jiří Šperl: Having said that, simply the trends are further continuing even in this chapter. A good evidence is that the quarterly cost-income ratio, that's the very bottom part of the chart, that the quarterly cost-income ratio in Q3 this year is the lowest at least since last two years. Now let me let me pass word to Anne, who is gonna comment quality of the assets and cost of risk. Thank you.

Speaker #5: Now , let me let me pass to Anne , who is gonna comment quality of the assets and and cost of risk . Thank you .

Speaker #6: Thank you . Good afternoon to everyone . So as it was mentioned , the lone portfolio grew up by 3.6% . And this is in the context of a very stable credit risk profile .

Anne de Kouchkovsky: Thank you. Good afternoon to everyone. As it was mentioned, the loan portfolio grew up by 3.6%, and this is in the context of a very stable credit risk profile. This is attested in the several metrics. First of all, you see that Stage 2 is now below 10%. This is obviously driven by the release of the inflation overlay that was put on the retail in 2024. We decided to release in Q3 the parts related to the small business segment. We also have a very, I would say, stable NPL share at low level, which is at 1.8% this quarter.

Andrej Kuskowski: Thank you. Good afternoon to everyone. As it was mentioned, the loan portfolio grew up by 3.6%. This is in the context of a very stable credit risk profile. This is attested in several metrics. First of all, you see that stage two is now below 10%. This is obviously driven by the release of the inflation overlay that was put on the retail in 2024. We decided to release in Q3 the parts related to the small business segment. We also have very, I would say, stable NPL share at low level, which is at 1.8% this quarter. Together with this, NPL provision coverage ratios are very stable as well. It shows that the portfolio is well performing, well covered, and demonstrating the asset quality.

Speaker #6: So this is attested in the several metrics . So first of all , you see that stage two is now below 10% . So this is obviously driven by the release of the inflation overlay that was put on the retail in 2024 .

Speaker #6: So we decided to release in Q3 the part related to the small business segment . We also have very I would say stable NPL share at low level , which is at 1.8% this quarter .

Speaker #6: And together with this , NPR provision , coverage ratio , very stable as well . It shows that the portfolio is well , performing , well covered and demonstrating the asset quality .

Anne de Kouchkovsky: Together with this, NPL provision coverage ratios, very stable as well. It shows that the portfolio is well-performing, well covered, and demonstrating the asset quality. If I go in more, I would say, maybe brief, details in the segment, on SME and small business and consumer loans, it's a very resilient portfolio. Mortgage loans and large corporates, we are in the low, even zero default, area. If we can move to the next slide. Cost of risk, as it was mentioned, it's a release of cost of risk at CZK 328 million this quarter.

Speaker #6: If I go in more , I would say maybe brief details in the in the segment on SMEs and small business and consumer loans .

Andrej Kuskowski: If I go in more, I would say, maybe brief details in the segment on SME and small business and consumer loans, it's very resilient portfolio, and mortgage loans and large corporates, we are in the low, even zero default area. If we can move to the next slide, cost of risk, as it was mentioned, it's a release of cost of risk at CZK 328 million this quarter. I already mentioned, and it was also mentioned by Yevge, that it's very well driven by the release of this overlay that we had on the retail, but it's also driven by some successful recovery on the non-retail exposures, which led us to recover 100% of our exposure and consequently release the provisions.

Speaker #6: It's very resilient portfolio and mortgage loans and large corporates . We are in the low even zero default area . So if we can move to the next slide .

Speaker #6: Cost of risk as it was mentioned , it's release of cost of risk at 328 million Czech koruna . This quarter . I already mentioned .

Speaker #6: And it was also mentioned by that it's very well driven by the release of this overlay that we had on the on the retail , but it's also driven by some successful recovery on the non-retail exposures , which led us to recover 100% of our exposure and consequently release the provisions .

Anne de Kouchkovsky: I already mentioned, and it was also mentioned by Jiří that it's very well driven by the release of this overlay that we had it on the retail. It's also driven by some successful recovery on the non-retail exposures, which led us to recover 100% of our exposure and consequently release the provisions. All in all, we end for the nine months at cost of risk of -20 basis points. For the next quarter, we intend to continue to release the remaining part of the inflation overlay on the retail, which is still in place for consumer loans.

Speaker #6: So all in all , we end the for the nine months at cost of risk of -20 basis points . And for the next quarter , we intend to continue to release the remaining parts of the inflation overlay on the retail , which is still in place for consumer loans .

Andrej Kuskowski: All in all, we end for the nine months at cost of risk of -20 basis points, and for the next quarter, we intend to continue to release the remaining part of the inflation overlay on the retail, which is still in place for consumer loans that will be then released for the fourth quarter and will lead us to the minus low teens in the cost of risk for the full year, probably, as we do not expect, as attested by the portfolio quality, any big event before the year end. That's about it on my side.

Speaker #6: That will be then released for the fourth quarter . And we'll lead us to the minus low teens in the in the cost of risk for the full year , probably as we do not expect us attested by the portfolio quality any big event before the year end .

Anne de Kouchkovsky: That will be then released for the Q4 and will lead us to the -low teens in the cost of risk for the full year, probably. As we do not expect as attested by the portfolio quality any big event before the year-end. That's about it on my side.

Speaker #6: So, that's about it on my side.

Speaker #5: Yes . Thank you . Anne , and let me complete the presentation . This last two slides . First one focusing on the on the capital .

Jiří Perla: Yes, thank you Ann. Let me complete the presentation with last two slides. First one focusing on the capital. Capital remains very strong at 18.43%. There is a slight decline year to date mainly due to the slight negative impact on OCI related to the release of the provisions as commented by Ann, so called lack of provisions. Still, however, the capital request is safely in the upper part of our management buffer. Maybe better said, almost at the upper edge of the management buffer despite accruing 100% profit as a dividend and on the new methodology, i.e., Basel IV, Railcross is safely within regulatory limits at 28.8. This is bringing me to the full year outlook as usual. There are not too many changes in the macro, only two slight adjustments.

Jiří Šperl: Yes. Thank you, Anne. Let me complete the presentation with last two slides. First one focusing on the capital. Capital remains very strong at 18.43%. There is a slight decline year to date, mainly due to the slight negative impact on OCI related to the release of the provisions, as commented by Anne. So-called lack of provisions. Still, however, the capital adequacy is safely in the upper part of our management buffer. Maybe, better said, almost at the upper edge of the management buffer, despite accruing 100% profit as a dividend and on the new methodology of Basel IV. Also, MREL adequacy is safely within the regulatory limits at 28.8%.

Speaker #5: So capital remains very strong at 18.43% . There is a slight decline year to date , mainly due to the slight negative impact on OCI related to the release of the provisions .

Speaker #5: As commented by by an so-called lack of lack of provisions . Still , however , the capital adequacy is safely in the upper part of our management buffer .

Speaker #5: Maybe better , said almost at the upper edge of the management buffer . Despite accruing 100% profit as a dividend and on the new methodology i.e. Basel Basel for also the adequacy is safely within the regulatory limits .

Speaker #5: At 28.8 and this is bringing me to the to the full year outlook as as usual . So there are not too many changes in the macro .

Jiří Šperl: This is bringing me to the to the full year outlook as as usual. There are not too many changes in the macro. Only two slight adjustments. First, no cuts of repo rate is expected by the end of this year, which was the case 3 months ago in terms of outlook. Second, there is slightly positive adjustments in the economic growth from 1.9% to 2.1% this year, and also for next for the years to come. In terms of banking market growth, we keep fully the guidance, i.e., both lending and deposits at mid-single digit pace.

Speaker #5: Only two slides , adjustments . First , no cuts of repo rate is expected by the end of this year , which was the case three months ago .

Jiří Perla: First, no cuts of repo rate are expected by the end of this year, which was the case three months ago in terms of outlook. Second, there is a slightly positive adjustment in the economic growth from 1.9% to 2.1% this year and also for the years to come. In terms of banking market growth, we keep fully the guidance that is both lending and deposits at the mid single digit pace. In terms of growth of KB, we stick to the original guidance at lending side that is mid single digit. In terms of deposits, we have downgraded the guidance from mid single digit rather to low to mid single digit. At the same time, the structure of the deposits is expected to improve further. Revenues and OpEx are basically confirmed.

Speaker #5: In terms of outlook . And second , there is slightly positive adjustments in the economic growth from 1.9% to 2.1% this year and also for for next for the years to years to come .

Speaker #5: In terms of banking market growth , we keep fully the guidance , i.e. , both lending and deposits at mid-single digit pace in terms of growth of of CCB , we stick to the original guidance at landing site , i.e. mid-single digits in terms of deposits .

Jiří Šperl: In terms of growth of KB, we stick to the original guidance at lending side, i.e. mid-single digit. In terms of deposits, we a bit downgraded the guidance from mid-single digit rather to low to mid-single digit. At the same time, the structure of the deposits is expected to improve further. Revenues and OpEx are basically confirmed. Maybe one comment to the top line. Probably more precise would be to say lower edge of low to mid-single digit growth. OpEx as confirmed, i.e. mid-single digit decline, decrease. Finally, cost of risk guidance.

Speaker #5: We have a downgraded the guidance from mid-single digit to low to mid single digit , but at the same time , at the same time , the structure of the deposits is expected to to improve improve further revenues and opex are basically confirmed .

Speaker #5: Maybe one comment to the top line , probably more precise would be to say lower edge of low to mid single digit digit growth opex as confirmed , i.e. permit single mid-single digit decline .

Jiří Perla: Maybe one comment to the top line, probably more precise would be to say lower edge of low to mid single digit growth. OpEx as confirmed, i.e., impair mid single digit decline, decrease. Finally, cost-to-income guidance, Ann briefly touched that before, but it significantly improved from around zero three months ago to the level of Longines. That's it. Now, before passing water back to studio, let me use this opportunity to say also a couple of words on my side. First, thank you Jan for your kind words and thanks also to all you connected. Indeed, this is my last earnings call in a position of KB's CFO. I have to admit that it has been a great 10 years serving at this position and I truly appreciated every opportunity to meet with you and discuss the bank's performance and time to time also everything around.

Speaker #5: Decrease . And finally the cost of guidance on briefly touch that before . But it's significantly improved from around zero three months ago to the level of of low , low teens .

Jiří Šperl: Anne briefly touched that before, but it significantly improved from around 0, 3 months ago, to the level of low, low teens. Well, that's it. Now, before passing word back to studio, probably let me use this opportunity and to say also a couple of words on my side. First, thank you, Anne, for your kind words, and thanks also to all you connected. Indeed, this is my last earnings call in a position of KB's CFO. I have to admit that it has been a great 10 years serving at this position. I truly appreciated every opportunity to meet with you and discuss the bank's performance and time to time also everything around.

Speaker #5: Well , that's that's it . Now before passing quarter . Back to studio , probably let me use this opportunity . And to say also couple of couple of words on my side .

Speaker #5: First . Thank you , for your kind words . And thanks also for to all for you connected . Indeed . This is my last earnings call in a position of CCB CFO .

Speaker #5: I have to admit that it has been a great ten years serving at this this position , and I truly appreciate it . Every opportunity to meet with you and discuss the bank's performance and and thank you .

Speaker #5: Time . Also , everything around as John mentioned , Etienne will be stepping into the role . As my successor , starting mid December .

Jiří Perla: As Jan mentioned, Etienne will be stepping into the role as my successor starting mid December and I don't have any doubts he will consolidate takeover. He knows the bank perfectly well and has all the qualities needed to help lead Komerční banka towards its bright, bright future. Again, all the best in this exciting position. Thank you all once again, and now returning the word to Sturja.

Jiří Šperl: As Anne mentioned, Etienne will be stepping into the role as my successor starting mid-December. I don't have any doubts he will successfully take over. He knows the bank perfect well and has all the qualities needed to help lead KB towards a bright future. Again, all the best in this exciting position. Thank you all once again. Now returning the word to Studen.

Speaker #5: And I don't have any doubts he will successfully take over . He knows the bank perfect . Well and has all the qualities needed to help lead her CCB towards how to say that , it's a bright , bright future .

Speaker #5: So so again , all the best in this exciting position . Thank you all . Once again . And now returning the world to to studio .

Speaker #4: Okay . Thank you , thank you . I will just conclude the call very , very the the the presentation part of the call .

Jan Juchelka: Okay, thank you, thank you. I will just conclude the presentation part of the call very quickly. We can say that the combination of strong capital base, the already deliberate very strict management of costs, the fact that we are approaching the very final stage of the transformation, and we have fully functional, very stable, and attractive solution for our retail clients, combined also with the operating efficiency, further simplification, and scalability of the new digital platform, will create a good base for improvement in the commercial momentum of the bank. Further on, we believe that the cost of risk, which is in negative territory and is commented by many of you as a good contributor but not a sustainable contributor into the profitability, will turn into an enabler for further commercial and business growth in the next months and quarters.

Jan Juchelka: Okay. Thank you. Thank you, Jiri. I will just conclude the call, or the presentation part of the call very quickly. We can say that the combination of strong capital base, the already delivered very strict management of costs. The fact that we are approaching the very final stage of the transformation, and we have fully functional, very stable and attractive solution for our retail clients. Combined also with the operating efficiency. Further, let's say, simplification and scalability of the new digital platform, will create a good base for improvement in the commercial momentum of the bank further on.

Speaker #4: Very quickly . So we can say that the combination of strong capital base , the already delivered , very strict management of costs , the fact that we are approaching the very final stage of the transformation and we have fully functional , very stable and attractive solution for our retail clients combined also with the operating , operating efficiency .

Speaker #4: Further , further , further , let's say simplification and scalability of the new digital platform will create a good base for improvement in the commercial momentum of the bank .

Speaker #4: Further on , we believe that the cost of risk , which is in negative territory and is commenting by many of you as the good contributor , but not like sustainable contributor into the into the , into the profitability will turn into enabler for further commercial and business growth in the in the in the next , in the next months and quarters .

Jan Juchelka: We believe that the cost of risk, which is in negative territory, and it's commented by many of you as the good contributor, but not like sustainable contributor into the profitability, will turn into an enabler for further commercial and business growth in the next months and quarters. We will also free up additional energy and time of our bankers. They were super busy with assisting our clients with migrating from the old to the new world. They will now put all that energy on sales and servicing the clients in day-to-day reality.

Speaker #4: We will also free up additional energy and time of our bankers . They were super busy with assisting our clients with migrating from the old to the new world .

Jan Juchelka: We will also free up additional energy and time of our bankers. They were super busy with assisting our clients with migrating from the old to the new world. They will now put all that energy on sales and servicing the clients in day-to-day reality. This is what is somehow framing our hope and determination for the next steps, which will be driven by our activity and our full dedication to further grow the bank on the side of business and commercial and financial performance. Thank you very much. I'm giving back the words to Jakub Czerny and we are ready to answer your questions. Thank you.

Speaker #4: They will now put all their energy into sales and servicing, servicing the clients in day-to-day reality. This is what is somehow framing our hope for the next steps and our determination for the next steps.

Jan Juchelka: This is what is somehow framing our hope for the next and determination for the next steps, which will be driven by our activity and our, I would say, full dedication to further growth the bank on the side of business and commercial and financial performance. Thank you very much. I am giving back the word to Jakub Černý. We are ready to answer your questions. Thank you.

Speaker #4: Which which will be , which will be driven by our our activity and . Our activity and our I would say full dedication to further growth .

Speaker #4: The bank on the side of on the side of business and commercial and financial financial performance . Thank you very much . I'm giving back the words to Jakob Cerny and we are ready to answer your questions .

Speaker #4: Thank you. Thank you to all the speakers. Let me add that we have also been joined by the Chief Operations Officer.

Jakub Černý: Thank you to all the speakers. Let me add that we have been also joined by Jitka Haubová, Chief Operations Officer. We have the complete board of directors with us today, and you can ask Jitka as well. It means that in the next part of today's meeting, we will be happy to answer your questions. Let me remind you that this meeting is being recorded. If you have a question, please click on the raised hand icon on the top bar of the screen, and then please wait to be called. If you have, if you are connected through a telephone, then please wait to be, I will invite you to ask your question later on. Our first question comes from the line of Máté Nemes from UBS.

Jakub Czerny: Thank you to all the speakers. Let me add that we have been also joined by Chief Operations Officer. We have the complete Board of Directors with us today and you can ask it as well. It means that in the next part of today's meeting we will be happy to answer your questions. Let me remind you that this meeting is being recorded and if you have a question please click on the raised hand icon on the top bar of the screen and then please wait to be called. If you are connected through a telephone then please wait to be invited to ask a question later on. Our first question comes from the line of Mate from UBS. Mate, please go ahead.

Speaker #4: So we have the complete Board of directors with us today . And you can ask it as well . It means that in the next part of today's meeting , we will be happy to answer your questions .

Speaker #4: Let me remind you that this meeting is being recorded . And if you have a question , please click on the raised hand icon on the top bar of the screen and then please wait .

Speaker #4: Wait to be to be called . If you have if you are connected through a telephone , then please wait to be . I will invite you to ask your question later .

Speaker #4: Later on. So our first question comes from the line of Martin Amis from UBS. Martin, please go ahead.

Jakub Černý: Máté, please go ahead.

Speaker #5: We cannot hear you at this .

Jiří Perla: We cannot hear you, Matis. Okay, can you hear me now? Yes, excellent.

Jiří Šperl: We cannot hear you, Máté. Máté.

Speaker #7: Can you hear me now ?

Speaker #5: Yes .

Speaker #7: Excellent . Perfect . So good afternoon . From my side as well . First of all , I wanted to say thank you to you for years of hard work , transparent commentary and help you provide it to to analysts and capital markets and will be missing you .

Máté Nemes: Can you hear me now?

Jiří Šperl: Yes.

Máté Nemes: Good afternoon from my side as well. First of all, I wanted to say thank you to Jiří Šperl for years of hard work, transparent commentary and help you provided to the analysts in the capital markets, and we'll be really missing you. My question would be on loan growth. It's good to see that there's acceleration quarter on quarter and also year on year in loan growth. I think you're being quite clear that that's a focus area for the H2 of the year. Jan Juchelka, to your comment about freeing up time for the bankers, certainly starting to be visible and sales volume of housing loans visibly picking up.

[Analyst]: Perfect. Good afternoon from my side as well. First of all, I wanted to say thank you to Jiří for your years of hard work, transparent commentary, and help you provided to analysts in the capital markets. We will be daily missing you. My question would be on loan growth. It's good to see that there's acceleration quarter on quarter and also year on year in loan growth. I think you're being quite clear that that's a focus area for the second half of the year. Jan, to your comment about freeing up time for the bankers, certainly starting to be visible and sales volume of housing loans visibly picking up. I'm wondering if you could give us perhaps some flavor of what you're seeing in the last quarter of the year and expectations also going into 2026.

Speaker #7: My question would be on loan growth . It's good to see that there's acceleration quarter on quarter and also year on year in loan growth .

Speaker #7: I think you're being quite clear that that's that's a focus area for the second half of the year . John , to your comments about freeing up time for the bankers , certainly starting to be visible and sales volume of housing loans visibly picking up .

Speaker #7: I'm wondering if you could give us perhaps some flavour of what you're seeing in the last quarter of the year . And expectations also going into 2026 , can we expect this momentum to continue and maybe also see a much awaited recovery in business loan volumes ?

Máté Nemes: I'm wondering if you could give us perhaps some flavor of what you're seeing in the last quarter of the year and expectations also going into 2026. Can we expect this momentum to continue and maybe also see a much awaited recovery in business loan volumes? I think, Jan, last quarter, you were quite positive about potential infrastructure projects and lending towards that. When can we see that in the numbers? Thank you.

[Analyst]: Can we expect this momentum to continue and maybe also see a much-awaited recovery in business loan volumes? I think Jan, last quarter you were quite positive about potential infrastructure projects and lending towards that. When can we see that in the numbers? Thank you.

Speaker #7: I think Jan , last quarter you you were quite positive about potential infrastructure projects and lending towards that . When can we see that in the numbers ?

Speaker #7: Thank you .

Speaker #5: I can probably start, and then my colleagues, heads of business lines, will complete me. So, a couple of comments on the first nine months of the year.

Jiří Perla: I can probably start and then my colleagues, Heads of Business Lines, will complete me. A couple of comments. First nine months of the year, I would say that the retail loans were growing relatively strong. It's mainly the case of mortgage loans. I gave it to you that there is a space for improvement in the area of consumer loans, that's one thing. In terms of corporate loans, the growth was a bit subdued. At the same time, we are expecting by the end of the year a relatively dynamic move. Why? Because the pipeline is relatively rich and strong, and I'm sure Kateřina is going to comment on that. In terms of 2026, you know, we are providing the detailed guidance at the end of the year results, so i.e., end of January next year.

Jiří Šperl: I can probably start, my colleagues, heads of business lines will complete me. A couple of comments on first nine months of the year. I would say that the retail loans were growing relatively strong. It's mainly the case of mortgage loans. I gave you that there is a space for improvement in the area of consumer loans. That's one thing. In terms of corporate loans, the growth was a bit subdued, at the same time, we are expecting by the end of the year a relatively dynamic move. Why? The pipeline is relatively rich and strong.

Speaker #5: I would say that the retail loans were growing relatively , relatively strong . It's mainly case of mortgage loans . So I agree with you that there is a space for improvement in the era of of consumer loans .

Speaker #5: That's one thing in terms of corporate loans , to say , to say the growth was a bit a bit subdued , but at the same time , we are expecting by the end of the year , relatively dynamic , dynamic , dynamic move .

Speaker #5: Why ? Because because the pipeline is is relatively relatively the and strong . And I'm sure . For Katerina is going to comment comment on that in terms of 2026 , you know , we are providing the detailed guidance at the end of or at the end of the year results .

Jiří Šperl: I'm sure Kateřina is gonna comment on that. In terms of 2026, you know, we are providing the detailed guidance at the end of the year results through IE end of January next year. I can indicate that the strategy of KB is very much growing and it will be very much the case for retail as currently all of your tools are available. Retail is gonna to be the market shares growing mid to high single digits.

Speaker #5: So I have end of January next year , but I can indicate that the strategy of CCB is , is very much growing and and it will be very much the case for retail as currently all tools are available .

Jiří Perla: I can indicate that the strategy of Komerční banka is very much growing, and it will be very much the case for retail as currently all tools are available. Retail is going to beat the market, market shares growing mid to high single digits. In terms of corporate, it will be more about sticking to the market shares, at the same time gaining a bit, but definitely not as dynamic as for retail in 2026. Now I'm passing forward to my colleagues who will probably go into deeper details or complement me. Thank you.

Speaker #5: So retail is gonna to beat market market shares growing mid to mid to high single digits in terms of corporate . It will be more about the the sticking to the market shares .

Jiří Šperl: In terms of corporate, it will be more about the sticking to the market shares, at the same time gaining a bit, but definitely not as dynamic as retail in 2026. Now I'm passing forward to my colleagues who will probably go into deeper details or complement to me. Thank you.

Speaker #5: At the same time gaining a bit . But definitely not as dynamic as as retail in 2026 . Now I'm passing forward to to to my colleagues who will probably go into deeper details or complement to me .

Speaker #5: Thank you .

Speaker #6: So , if I might add a few words on the corporate not to repeat what was already said , we do see strong pipeline .

Kateřina Kuchařová: If I might add a few words on the corporate, not to repeat what was already said. We do see strong pipeline. We are actually seeing acceleration in the lending business for the SMEs. We are pretty confident towards the year end. In terms of the large corporates, it's kind of a little shaky market because we are seeing a strong and very lively bond market, which is nice on the fee side, also for us. It also has a negative impact because some of the loans are being refinanced by the bonds issued by the big groups. Also there is a strong pressure on the margins arising from the high appetite on the bond side.

[Company Representative]: If I might add a few words on the corporate, not to repeat what was already said, we do see strong pipeline. We are actually seeing acceleration in the lending business for the SMEs. We are pretty confident towards the year end in terms of the large corporates. It's kind of a little shame because we are seeing strong and very lively bond market, which is nice on the fee side also for us. It also has a negative impact because some of the loans are being refinanced by the bonds issued by the big groups. There is a strong pressure on the margins arising from the high appetite on the bond side.

Speaker #6: We are actually seeing acceleration in the lending business for the SMEs . So we are pretty confident towards the year end in terms of the large corporates .

Speaker #6: It's it's kind of a little shaky market because we are seeing strong and very lively bond market , which is nice on the fee side .

Speaker #6: Also for us. But it also has a negative impact because some of the loans are being refinanced by the bonds issued by the big groups.

Speaker #6: And also there is a strong pressure on the margins arising from the high appetite for the bond side . So on the large clients , we are optimistic more towards the next year because , as you mentioned yourself , there is still quite a huge infrastructure project .

Kateřina Kuchařová: On the large clients, we are optimistic more towards the next year, because as you mentioned yourself, there is still quite a huge infrastructure project loading up in Czech Republic, and we are confident to be participating in those. That should be definitely very nice contributor to the large segment of our clients in terms of both volumes and profitability.

[Company Representative]: On the large clients, we are optimistic more towards the next year because, as you mentioned yourself, there is still quite a huge infrastructure project loading up in Czech Republic and we are confident to be participating in those. That should be definitely very nice contributor to the large segment of our clients in terms of both volumes and profitability.

Speaker #6: Loading up in Czech Republic and we are confident to be participating in those . And that should be definitely very nice contributor to the large segment of our clients in terms of both volumes and profitability .

Speaker #4: I will probably add one sentence . You probably saw the pages with the tombstones that we were the instrumental bank when financing the preparation of the new nuclear project of the of the of the country under the name of Edu two , together with other banks .

Jan Juchelka: I will probably add one sentence. You probably saw the pages with the tombstones that we were the instrumental bank when financing the preparation of the new nuclear project of the country under the name of EDU2 together with other banks. We were, let's say, the main driving force there. There will be more to come on the side of the energy sector. You might recall that there were two large transactions. One of them concluded at the beginning of the year where the state was taking over part of the storage capacities and transmission of gas, whereas ČEZ, as the majority state-owned company, was taking over GasNet, which is the regional distribution of gas, etc. We are around these transactions. We will be continuing with that.

Jan Juchelka: I will probably add one sentence. You probably saw the pages with the tombstones that we were the instrumental bank when financing the preparation of the new nuclear project of the country under the name of Edu 2, together with other banks. We were, let's say, the main driving force there. There will be more to come. On the side of energy sector, you might recall that there were two large transactions.

Speaker #4: But we were , let's say the main , the main driving force there . There will be more to come on the side of energy sector .

Speaker #4: You might recall that there were two large transactions . One of them concluded beginning of the year , where state was taking over part of the stores storage capacities and the transmission of gas , whereas chess , as the state owned , majority state owned company , was taking over , taking over gas net , which is a distribution of regional distribution of gas , etc.

Jan Juchelka: One of them concluded, beginning of the year, where state was taking over part of the stores, storage capacities and transmission of gas, whereas ČEZ as the state-owned, majority state-owned company was taking over GasNet, which is a distribution of regional distribution of gas, etc. We are around these transactions. We will be continuing with that. What is slightly delayed on that front is the transport related infrastructure project, which partly maybe also because of the elections were a little bit, are a little bit lagging behind the original schedule and original calendar.

Speaker #4: . So we we are around this transactions . We will be we will be continuing with that . What is slightly delayed on that front is the transfer transport related infrastructure projects , which partly maybe also because of the elections were a little bit a little bit lagging behind the original schedule .

Jan Juchelka: What is slightly delayed on that front is the transport-related infrastructure project, which partly, maybe also because of the elections, was a little bit lagging behind the original schedule and original calendar. The rhetoric of the new representation, or the majority in the Parliament at least, is that they will continue intensively on that front and we want to be.

Speaker #4: And the original calendar . The rhetorics of the new representation of the majority in the Parliament , at least , is that they will continue intensively on that on that front .

Jan Juchelka: The rhetorics of the new representation or the majority in the parliament at least, is that they will continue intensively on that, on that front, and we want to be part of it as well.

Speaker #4: And we want to be part of it as well .

Jakub Czerny: Part of it as well.

Speaker #7: Thank you . That's very helpful . Can I have a follow up ? Perhaps , as you mentioned , the new forming government , can you can you share your thoughts on the probabilities around a more effective banking tax ?

[Analyst]: Thank you, that's very helpful. Can I have a follow up? Perhaps as you mentioned, the new forming government. Can you share your thoughts on probabilities around a more effective banking tax?

Máté Nemes: Thank you. That's very helpful. Okay, can I have a follow-up, perhaps, as you mentioned, the new forming government. Can you share your thoughts on probabilities around a more effective banking tax?

Speaker #4: Yeah , with strong disclaimer that we we don't have the the crystal ball and we don't see the future . The reality is that we don't we don't evidence any strong push on that front .

Jan Juchelka: Yeah, with strong disclaimer that we don't have the crystal ball and we don't see the future. The reality is that we don't evidence any strong push on that front or any traces of planning or projecting that into the budgetary exercise or in the preparation of the budget. The Czech Banking Association is obviously acting preventively and trying to get the right feeling about that because rightly you are picking up one of the potential risks for the entire market. For the time being, we don't see anything happening.

Jan Juchelka: Yeah. With strong disclaimer that we don't have the crystal ball and we don't see the future. The reality is that we don't evidence any strong push on that front and or any traces of planning or projecting that into the budgetary exercise or in the preparation of the budget. The Czech Banking Association is obviously acting preventively and trying to get the right feeling about around that, because rightly, you are picking up one of the potential risks for the entire, for the entire market. For the time being, we don't see anything happening.

Speaker #4: And or any traces of planning or projecting that into the , into the , into the budgetary exercise or in the preparation of the budget .

Speaker #4: So the Czech banking Association is obviously acting preventively and trying to get to get the the right feeling about around that , because rightly you are picking up one of the potential risks for the entire for the entire market for the time being , we don't see anything happening .

Speaker #7: Very clear . Thank you very much .

[Analyst]: Very clear. Thank you very much.

Máté Nemes: Very clear. Thank you very much.

Speaker #4: Thank you . Our next question comes from the line of David Taranto from Bank of America Securities . David , please go ahead .

Jakub Černý: Thank you. Our next question comes from the line of David Taranto from Bank of America Securities. David, please go ahead.

Jakub Czerny: Thank you. Our next question comes from the line of David Taranto from Bank of America Securities. David, please go ahead.

Speaker #8: Good afternoon . Thanks for the presentation and taking my question . I have a quick one . Are there any regulatory headwinds or tailwinds on the capital side or the next year ?

[Analyst]: Good afternoon.

David Taranto: Good afternoon. Thanks for the presentation and taking my question. I have a quick one. Are there any regulatory headwinds or tailwinds on the capital side over the next year? Anything that could affect the board's appetite to sustain the 100% payout aside from the internal capital generation?

Jan Juchelka: Thanks for the presentation and taking my question.

[Analyst]: I have a quick one. Are there any regulatory headwinds or tailwinds?

Speaker #8: Anything that could affect the board's appetite to sustain the 100% payout, aside from the internal capital generation?

Jan Juchelka: On the capital side over the next year, anything that could affect the Board's appetite to sustain the 100% payout, aside from.

Jakub Czerny: The internal capital generation?

Speaker #5: Should I take it down or you will ? Okay . Well . Well , there was a there was a big methodology change starting this year .

Jan Juchelka: Should I take it, Jan or you will? Okay. Well,

Jiří Perla: Should I take it down or you will?

Jan Juchelka: Well.

Jiří Šperl: Well, there was a big methodology change starting this year, I mean, implementation of Basel IV. Probably you noticed that, at the end of the day, the impact of Basel IV for KB was basically neutral. Having said that, almost all components of that have been incorporated even before. For the time being, we are not expecting any regulatory changes. With the same disclaimer, like Jan was mentioning before, we do not have a crystal ball. Currently nothing is on the table. Maybe here to mention that Basel IV was implemented starting from 2025, but not fully.

Jiří Perla: There was a big methodology change starting this year. I mean implementation of Basel IV. Probably you notice that at the end of the day, the impact of Basel IV for Komerční banka was basically neutral. Having said that, almost all components of that have been incorporated even before. For the time being we are not expecting any regulatory changes. With the same disclaimer like Jan was mentioning before, we do not have crystal ball, but concurrently, nothing is on the table. Maybe here to mention that Basel IV was implemented starting from 2025, but not fully. That is, it was related to credit risk and operational risk. Still the capital needs for market risk is coming and you will see that at the beginning of next year. I can just indicate that the impact will be rather positive.

Speaker #5: I mean , implementation of of Basel , Basel for probably you notice that at the end of the day , the impact of Basel four for CCB was basically neutral .

Speaker #5: So having said that , almost all components of that have been incorporated , even , even before , for the time being , we are not expecting any , any regulatory changes .

Speaker #5: But with the same disclaimer , like Jan was mentioning before , we do not have a crystal ball , but currently nothing , nothing is nothing is on the on the table .

Speaker #5: Maybe here to mention that Basel four was implemented starting from 2025 , but not not fully . I it was related to to credit risk and operational risk .

Jiří Šperl: i.e., it was related to credit risk and operational risk. Still, the capital needs for the market risk is coming. You will see that at the beginning of next year. I can just indicate that the impact will be rather positive. Thank you.

Speaker #5: But still the capital needs for the market risk is coming and you will see that at the beginning of of next year . I can just indicate that the impact will be rather positive .

Speaker #5: Thank you .

Speaker #8: Thank you , thanks .

Jakub Czerny: Thank you.

[Analyst]: Thank you.

David Taranto: Thank you. Thanks.

Jakub Czerny: Thank you. The next question comes from the line called MC. I'd like to ask you to introduce yourself and then ask your question.

Speaker #4: Thank you. So the next question comes from the line called MC. I would like to ask you to introduce yourself and then proceed with your question.

Jakub Černý: Thank you. The next question comes from the line called MC. I'd like to ask you to introduce yourself and then ask your question.

Speaker #5: That's Mastercard . Now .

Speaker #6: Yes . Sorry . No it's .

Jiří Perla: That's MasterCard now.

Jiří Šperl: That's Mastercard, no?

[Company Representative]: Yes, sorry. No, it's Master Record Kabobdika from Ipoperma. Sorry for that. I have two questions.

Speaker #9: From Irma . Sorry for that . So I have two questions .

Marta Zajkowska-Bodek: Yes. Sorry. No, it's Marta Zajkowska-Bodek from Ipopema Securities. Sorry for that. I have two questions.

Speaker #4: Sorry . Sorry , Martha , could you unmute yourself ? Sorry .

Jiří Perla: We can undo.

Jiří Šperl: We cannot hear you. Sorry.

Jakub Czerny: Sorry, Marta, could you unmute yourself? Sorry.

Jakub Černý: Sorry, Marta. Could you unmute yourself? Sorry.

Speaker #9: Yes , I think that it's . Do you hear me ?

[Company Representative]: Yes, I think that it's. Do you hear me now?

Marta Zajkowska-Bodek: Yes. Do you hear me now?

Speaker #4: Now ? We can hear you now . Yes .

Speaker #9: Okay. So first of all, thank you for your transparency and your hard work. And to two questions from my side.

Jiří Šperl: We can hear you now, yes.

Jakub Czerny: We can hear you now. Yes.

[Company Representative]: Okay, so first of all thank you, Eugene, for your transparency and your hard work and two questions from my side. First, on the deposit market and the situation right now. Could you please discuss this? I mean, we hear from the competitors that there is increased competition on this market and Komerční banka itself lowered its outlook for deposit growth this year. Could you please discuss this development in the context also of potential pressure on the margin? The second question is on the cost of risk. Could you please disclose how much of the management overlay related to the retail segment you still have on your book to be released in the fourth quarter? Just related to that, would you say that the 2026 outlook would still be below through the cycle level in terms of cost of risk? Thank you very much.

Marta Zajkowska-Bodek: Okay. First of all, thank you, Jiří, for your transparency and your hard work. Two questions from my side. First, on the deposit market and the situation right now. Could you please discuss this? I mean, we hear from the competitors that there is increased competition on this market, and KB itself lowered its outlook for deposit growth this year. Could you please discuss this development in the context also of potential pressure on the margin? The second question is on the cost of risk.

Speaker #9: First , on the deposit market and the situation right now , could you please discuss this ? I mean , you we hear from the competitors that there is increased competition on this market and CCB itself lowered its its outlook for deposit growth this year .

Speaker #9: And could you please discuss this development in the context also of potential pressure on the margin . And the second question is on the cost of risk .

Speaker #9: Could you please disclose how much of the management overlays related to retail segment do you still have on your books to be released in the fourth ?

Marta Zajkowska-Bodek: Could you please disclose how much of the management overlays related to retail segment do you still have on your book to be released in Q4? Just related to that, would you say that 2026 outlook would still be below the through-the-cycle level in terms of cost of risk? Thank you very much.

Speaker #9: In the fourth quarter ? And just related to that , would you say that 2026 outlook would still be below the through the cycle level in terms of cost of risk ?

Speaker #9: Thank you very much .

Speaker #5: If I may , I will start I will start again about the about the the deposits . And again , no doubts . My colleagues will will complement .

Jiří Perla: If I may, I will start. I will start again about the deposits and again no doubts my colleagues will compliment. That's true that the growth of deposits in the first nine months or even year over year was rather subdued. We are partially commenting on that like three months ago and by the way it was the case both for retail and corporate. One of the reasons on the retail side was that the branch network was heavily, heavily migrating according to the plans succeeded. We are getting, or the migration is going to be completed by the end of the year. I'm talking about individuals, but of course it was both not negligible capacities on the right side for corporate and that's probably what you are referring to.

Jiří Šperl: If I may, I will start again about the deposits. Again, no doubts my colleagues will complement. That's true that the growth of deposits in first 9 months or even year over year was rather subdued. We are partially commenting on that like 3 months ago. By the way, it was the case both for retail and corporate. One of the reasons on the retail side, sorry, was that the branch network was heavily migrating according to the plans succeeded. We are getting, or the migration is gonna be completed by the end of the year.

Speaker #5: So that's true that the growth of deposits in the first nine months, or even year over year, was rather subdued.

Speaker #5: We are partially commenting on that like three months ago and by the way , it was the case both for for retail and , and corporate and one of the reasons on the corporate , on the retail side was that the branch network was heavily , heavily migrating according to the plans and succeeded .

Speaker #5: We are getting or the migration is going to be completed by the end of the year . I'm talking about individuals , but of course it was about not negligible capacities on on that side for for corporate .

Jiří Šperl: I'm talking about individuals, but of course, it was about not negligible capacities on the other side. For corporate, and that's probably what you are referring to. There was in H1, specifically, very fierce competition on the market. Our inter-interpretation at that time was that this was linked to the fact that not all incorporated the impact of the doubling of obligatory reserves as of January this year into the client rates pricing. Now, it seems it is gonna be normalized. I believe that at the end of Q3, we can see all the first fruits of the change. The Q3 dynamics is much higher.

Speaker #5: And that's probably what you are referring to . There was interest of of the year . Specifically very fierce competition on the market .

Jiří Perla: There was in the first half of the year specifically very fierce competition of the market and our interpretation at the time was that this was linked to the fact that not all incorporated the impact of the doubling of obligatory reserves as of January this year into the client rates. Client rates, pricing. Now it seems it is going to be normalized and I believe that at the end of Q3 we can see all the first fruits of the change. The Q3 dynamics is much higher, on top of my head that is around 2.2-2.6% where key segments are growing and to be frank we expected that this trend is going to continue. Maybe to mention here one more point. This was also visible in the market shares for the last three months.

Speaker #5: And our interpretation at that time was that . This was linked to the fact that not all the incorporated , the impact of the doubling of obligatory reserves .

Speaker #5: As of January this year into the client , client rates , client rates , pricing . Now , it seems it is going to be normalized and I believe that at the end of Q3 , we can see over the first fruits of the of the change , the Q3 dynamics is much higher on top of my head .

Speaker #5: It is around 22. 6% where both key segments are are growing and to be frank , we expect that that this trend is going continue maybe to to mention here one more point .

Jiří Šperl: On top of my head, it is around 2 to 0.6%, where both key segments are growing. To be frank, we expected that this trend is gonna continue. Maybe to mention here one more point. This was also visible in the market market shares for last 3 months. I don't have in front of me September ones. They should be available by the way today, August, July and June, KB was gaining market shares in terms of deposits. Now I'll let my colleagues to comment further. Thank you.

Speaker #5: This was also visible in the in the market market shares for last three months . So I don't have in front of me September 1st .

Jiří Perla: I don't have in front of me September 1st, they should be available by the way today, but August, July and June KB was gaining market shares in terms of deposits and now I let my colleagues comment further. Thank you.

Speaker #5: They should be available by the by the way to today . But but August July and June CCB was gaining market share . So in terms of in terms of deposits and now I let my colleagues to to to comment further .

Speaker #5: Thank you . On retail side , I don't have much to add . Maybe to give you a few details . from inside the structure of the deposits .

Jan Juchelka: On retail side I don't have much to it, maybe to give you a few details from inside the structure of the deposits. We are doing pretty well on unpaid deposits, current account balances, and you saw it in the presentation recently. We stabilized the development of term deposits, so we are now like flattish to slow growth again. We are doing really, really well on saving accounts, and I have to admit that some time ago we probably slightly underestimated the role saving accounts play in collection of deposits. It was all fixed, and now we can see basically week by week how well we accumulate deposits on saving accounts. I have a few more bullets to shoot to make it even faster.

Miroslav Hiršl: Well, on retail side, I don't have much to add. Maybe to give you a few details from inside the structure of the deposits. We are doing pretty well on unpaid deposits, current account balances, you saw it in the presentation. Recently, we stabilized the development of term deposits, so we are now like flattish to slow growth again. We are doing really, really well on saving accounts. I have to admit that some time ago, we probably slightly underestimated the role saving accounts play in collection of deposits. It was all fixed. Now we can see basically week by week how well we accumulate deposits on saving accounts. We have a few more bullets to shoot to make it even faster. I'm rather on optimistic side for deposit development on retail.

Speaker #5: We are doing pretty well on an unpaid deposits . Current account balances . And you saw it in the presentation recently . We stabilized the development of term deposits .

Speaker #5: So we are . now like flattish .

Speaker #4: To .

Speaker #5: Slow growth . Again , we are doing really , really well saving accounts . And I have to admit that some time ago we probably slightly underestimated the role saving accounts play in collection of deposits .

Speaker #5: It was all fixed and now we can see basically we week by week how well we accumulate deposits on saving accounts . And we have a few more bullets to shoot to make it even faster .

Speaker #5: So I'm rather on optimistic side for deposit development on retail .

Jan Juchelka: I'm rather on optimistic side for deposit development on retail, but probably in more general terms, what we see, what is happening on the deposits, we can probably confirm what you heard from the other players, that the hunt for the deposits is more visible on the market. Plus, the clients have changed their management of spurred money, if I may say. They do search for returns. By definition, we are in the Czech Republic, they are searching the safe returns, if I may say so. Saving accounts highly probably will be the field where the whole battle will be happening at the highest intensity. There was also one sub question on overlays and cost of risk until the year end. I don't know, Ann, if you want to react on that.

Speaker #4: But probably in more in more general terms , would we see what is happening on deposits ? We can probably confirm what you heard from the other players that the hunt for the deposits is more visible on the market , plus the clients are have changed their management of of spurt money , if I may say they they do search for returns by definition , we are in the Czech Republic .

Miroslav Hiršl: Probably in more general terms, what is happening on the deposits, we can probably confirm what you heard from the other players. That the hunt for the deposits is more visible on the market. Plus the clients here have changed their management of spared money. If I may say, they do search for returns. By definition, we are in the Czech Republic, they are searching the safe returns, if I may say. Saving accounts highly probably will be the field where the whole battle will be happening at the highest intensity. There was also 1 sub-question on overlays and cost of risk until the year-end.

Speaker #4: They are searching the the safe the safe returns , if I may say so . Saving , saving accounts highly probably will be will be the the field where the whole battle will be will be happening , will be happening at the highest intensity .

Speaker #4: There was also one subquestion on overlays of and cost of risk until the year end . I don't know an if you want to , if you want to react on that .

Miroslav Hiršl: I don't know, Anne, if you want to react on that?

Speaker #6: Yes . So your question was the remaining part on the retail right . So I don't know if the amounts were mentioned earlier , but yes , it was , it was mentioned earlier .

Andrej Kuskowski: Yes, your question was the remaining part on the retail. Right. I don't know if the amounts were mentioned earlier, but yes, it was mentioned earlier. We have remaining CZK 100 million, if I'm not mistaken. Jiří, please help me because I'm still struggling a bit between Euros and Czech koruna. Sorry, as I just joined two months ago and as I said it is on the consumer lending and we intend to release and then we have still an overlay on corporate which is in a bigger, bigger amount. This is under discussion because it was created as well on inflation assumptions that are not today really relevant. Still, given the very unstable environment we are living now in, we intend to keep overlay on the corporate part.

Anne de Kouchkovsky: Yes. Your question was the remaining part on the retail, right? I don't know if the amounts were mentioned earlier, but yes, it was mentioned earlier. We have remaining CZK 100 million, if I'm not mistaken. Jiří, please help me because I'm still struggling a bit between euros and Czech koruna. Sorry, as I just joined 2 months ago. As I said, it is on the consumer lending, and we intend to release. Then we have still an overlay on corporate, which is in a bigger amount. This is under discussion because it was created as well on inflation assumption that are not today really relevant.

Speaker #6: So we have remaining 100 million Czech koruna, if I'm not mistaken. Please help me because I'm still struggling a bit between Euros and Czech.

Speaker #6: Sorry , as I just joined two months ago and as I said , it is on the consumer lending and we intend to release and then we have still an overlay on corporate , which is in a bigger , bigger amount .

Speaker #6: This is under discussion because it was created as well on inflation assumption that are not today really relevant , but still , given the very unstable environment , we are living now in , we we intend to keep overlay on the corporate part , but I cannot really comment because it's really under discussion on the I would say which amount , but it should be more or less the the same as we have today .

Anne de Kouchkovsky: Still, given the very unstable environment we are living now in, we will intend to keep overlay on the corporate part. I cannot really comment because it's really under discussion on the, I would say, which amount, but it should be more or less the same as we have today, but on different assumptions, broader assumptions, like more international geopolitical instability, terrorist threats, and not only inflation.

Andrej Kuskowski: I cannot really comment because it's really under discussion on the, I would say, which amount, but it should be more or less the same as we have today but on different assumptions, broader assumptions like more international geopolitical instability, tariff threats, not only inflation.

Speaker #6: But on different assumption , broader assumptions , like more international , geopolitical and stability , tariff threats , not only inflation .

Speaker #5: Exactly as on on was commenting on that . Maybe let me compliment by two three sentences , because one of the questions was for the years to come , of course it is not sustainable to to be in net .

Jiří Perla: Exactly. As Jan was commenting on that, maybe let me complement by two, three sentences because one of the questions was the years to come. Of course, it is not sustainable to be in part era sustainably. Starting from 2026, we are getting back to normal cost of risk, that is relocation. Some of you might remember that according to a risk appetite statement, some are calling that like through recital cost of risk. We are targeting 25 bps. It's very likely will not be the case for next year. If I should indicate, you should expect, say, high teens in terms of bps.

Miroslav Hiršl: Exactly. As Anne was commenting on that, maybe let me complement by two, three sentences, because one of the question was for the years to come. Of course, it is not sustainable to be in necessarily so part era sustainably. Starting from 2026, we are getting back to normal cost of risk, i.e., revocation. Some of you might remember that according to a risk appetite statement, or some are calling that like a through-the-cycle cost of risk. We are targeting 25 basis points, it's very likely will not be the case for next year.

Speaker #5: Necessarily part era sustainably . So starting from 2026 , we are getting back to to normal cost of risk , i.e. rather creation .

Speaker #5: Some of you might remember that that according to the risk statement or some are calling that like recycle cost of risk , we are targeting 25 basis points , but it's very , very likely will not be the case for for next year .

Speaker #5: If I should should indicate you should expect a , let's say high teens in terms of of of Bips .

Miroslav Hiršl: If I should indicate, you should rather expect, let's say, high teens, in terms of pips.

Speaker #6: Compliment , as it was mentioned by my colleagues from business , we want to push on some segments that are by definition , creating more cost of risk , which is small business .

Andrej Kuskowski: As it was mentioned by my colleagues from business, we want to push on some segments that are by definition creating more cost of risk, which is small business. I mean SMEs in the corporate and consumer lending in the retail. That's why we expect to go back more in our limits that are in the risk appetite of the bank.

Anne de Kouchkovsky: Complement. As it was mentioned by my colleagues from business, we want to push on some segments that are by definition creating more cost of risk, which is small business, I mean, SMEs in the corporate and consumer lending in the retail. That's why we expect to go back more in our limits that are in the risk appetite of the bank.

Speaker #6: I mean , SMEs in the corporate and consumer lending , in the in the retail . So that's why we expect to go back more in our limits that are in the risk appetite of the bank .

Speaker #9: Okay . Thank you very much .

[Company Representative]: Okay, thank you very much.

Marta Zajkowska-Bodek: Okay. Thank you very much.

Speaker #4: Thank you . So we don't seem to have further questions asked through the platform . So now I would like to invite participants who are connected through a telephone if you wish to ask a question via telephone , please unmute yourself .

Jakub Czerny: Thank you. We don't seem to have further questions asked through the platform. I would like to invite participants who are connected through a telephone. If you wish to ask a question via telephone, please unmute yourself by pressing star and six and then ask your question. Of course, if anyone is interested to ask a question through the platform, please use the Raise 10 button. Marta, you have a follow-up?

Jakub Černý: Thank you. We don't seem to have further questions asked through the platform. Now I would like to invite participants who are connected through a telephone. If you wish to ask a question via telephone, please unmute yourself pressing star and six and then ask your question. Of course, if anyone is interested to ask a question through the platform, please use the raise hand button. Marta Zajkowska-Bodek, you have a follow-up.

Speaker #4: Pressing star and six, and then ask your question. Of course, if anyone is interested in asking a question through the platform, please use the Raise Hand button.

Speaker #4: So , Martha , you have a follow up .

Speaker #9: Yes , please . If if you could discuss the outlook for remaining part of the year for NII and if you could be kind enough to to tell us if there is any change in , in that for 2026 and forward .

[Company Representative]: Yes, please. If you could discuss the outlook for remaining part of the year for NII, and if you could be kind enough to tell us if there is any change in that for 2026 going forward.

Marta Zajkowska-Bodek: Yes, please. If you could discuss the outlook for remaining part of the year for NII, and if you could be kind enough to tell us if there is any change in that for 2026 going forward.

Speaker #5: Yes , I was talking to to to the well , maybe again I was probably let's start with the main , main drivers , which are first growing of the of the client client base .

Jiří Perla: Yes, I was talking to Muta. Maybe again I will start probably. Let's start with the main drivers which are first growing of the client base. Further growing of the client base. Of course, critical will be to make them active first. Second, material increase of the digital sales. Third, one I would mention would be the continuing change in the structure of our deposits in favor of current accounts. At the same time, let me be very clear that we are not aggressive in that regard. Of course, five years ago the current accounts portion in the total deposit was 80%. Now we are closer to 50% and are using very conservative assumptions. On top of that, we are expecting continuing growth of the volumes basically in line with the dynamics visible in Q3 and it is relevant both for loans and deposits.

Jakub Černý: Yes. I was talking to mute. Well,

Jiří Šperl: Again, I will start, probably let's start with the main drivers, which are the first growing of the client base. Further growing of the client base. Of course, critical will be to make them first, make them active first. Second, material increase of the digital sales. Third one I would mention would be the continuing change in the structure of our deposits in favor of current accounts. At the same time, let me be very clear that we are not aggressive in that regard. Of course, 5 years ago it was current accounts portion in the total deposits was 80%.

Speaker #5: Further growing of the client base . Of course critical will be to make them make them active first , second . Material increase increase of the digital digital sales .

Speaker #5: Third one I would mention would be in the continuing change in the structure of our deposits in favor of of current current accounts .

Speaker #5: At the same time , let me be very clear that we are not aggressive in that , in that regard , of course , five years ago it was current accounts portion in the total assets was 80% .

Speaker #5: Now we are closer to to 50 and are rather using very , very conservative . Conservative assumptions . On top of that , we are expecting continuing growth of of the volumes basically in line with the with the dynamics visible in in Q3 .

Jiří Šperl: Now we are closer to 50 and are using very conservative assumptions. On top of that, we are expecting continuing growth of the volumes. Basically in line with the dynamics visible in Q3. It is relevant both for loans and deposits. Probably the last point to mention is slight improvements of NIM. If I'm seeing a slight compared to compared to, let's say year over year, it will be around, let's say 5 basis points ±.

Speaker #5: And it is relevant both for loans and and deposits and probably last point to mention is slight improvements of . Name . If I'm saying a slight compared to compared to let's say year over year , it will be around , let's say five basis points plus , plus minus , plus , plus , minus and the main drivers here will be already mentioned , mentioned , improved structure of of the of the deposits .

Jiří Perla: Probably last point to mention is slight improvements of NIM. If I'm saying slight compared to, let's say, year over year it will be around, let's say, 5 basis points plus minus, plus, plus, minus. The main drivers here will be already mentioned improved structure of the deposits. For 2026 the story is a bit similar, that is the main driver of the growth in the area of. Not interesting will be volumes, as I was mentioning before, a very dynamic growth of both loans and deposits. Also, we will see there, let's say, outputs or results of the improved structure of deposits because it is in the P&L for the time being only partially, so in 2026 we should see more visible impact.

Jiří Šperl: The main drivers here will be already mentioned improved structure of the deposits. For 2026, the story is similar. I.e., the main driver of the growth in the area of net interest income will be volumes. As I was mentioning before, a very dynamic growth of both loans and deposits. Also we will see there, let's say outputs or results of the improved structure of deposits. Because it is in the PNL for the time being only partially.

Speaker #5: That's for for 2026 . For 2026 . The story is a bit a bit similar i.e. the main driver of the growth in the era of net interest income will be will be .

Speaker #5: In volumes . As I was mentioning before . So a very dynamic growth of both loans and deposits and also we will see there , let's say outputs or results of of the improved structure of , of deposits , because it is in the end of , for , for the time being , only , only partially .

Speaker #5: So in 2026 we should see we should see more visible impact . So in terms of NBA , we are expecting we are expecting made to high single digit .

Jiří Šperl: In 2026, we should see the more visible impact. In terms of NBI, we are expecting mid to high single digit. Of course, the main driver of that, at least in absolute terms, will be income from net interest income. Yeah. I'm not sure. Did it help or? Okay. Jim says.

Jiří Perla: In terms of NBI, we are expecting mid to high single digit and of course the main driver of that, at least in absolute terms, will be income from interest income. I'm not sure that. Did it help or. Okay, seems.

Speaker #5: And of course the the main main driver of that at least in the in in her absolute terms will be income from her net interest income .

Speaker #5: Yeah . I'm not sure that . Did it help or . Okay . James . Yes .

Speaker #9: Yes . Thank you very much . Thank you .

[Company Representative]: Yes, yes, thank you very much. Thank you.

Marta Zajkowska-Bodek: Yes. Thank you very much. Thank you.

Speaker #4: So let's let's wait a few moments . If anyone . has another question , either through the platform or directly asking their telephone .

Jakub Czerny: It seems so, yes. Let's wait a few moments. If anyone has another question either through the platform or directly asking via telephone, it does not seem so. I would like to hand back to Jan for a concluding remark.

Jakub Černý: Seems so. Yes. Let's wait a few moments. If anyone has another question, either through the platform or directly asking via telephone. Does not seem so. I would like to hand back to Jan for a concluding remark.

Speaker #5: Does not .

Speaker #4: Seam so. So, I would like to hand it back to Jan for a concluding remark. All right. Thank you, everyone, for being with us today.

Jan Juchelka: All right, thank you everyone for being with us today. It was a big pleasure for us to share with you our views on not only the results, but some of the key aspects of making banking business in the Czech Republic in the context of the macroeconomic reality. We do believe that going forward towards 2026 there might be new impulses for the entire market and we want to play a significant role as we have done until now, obviously. Thank you again for very precise questions. You somehow spotted the main aspects or points of our interest, or not only interest, but of our activities. We will definitely hunt for a higher volume style on both on the side of financing, as I will just repeat the words of Ann, mainly in those categories where we are lagging behind our natural market share.

Jan Juchelka: All right. Thank you everyone for being with us today. It was a big pleasure for us to share with you our views on not only the results, but some of the key aspects of making banking business in the Czech Republic in the context of the macroeconomic reality. We do believe that going forward towards 2026, there might be new impulses for the entire market, and we want to play a significant role, as we have done until now. Obviously, thank you again for very precise questions. You somehow spotted, you know, the main aspects or points of our interest or of not only interest, but of our activities.

Jan Juchelka: We will definitely hunt for higher volumes on both on the side of financing, as I will just repeat the words of Anne. Mainly in those categories where we are lagging behind our natural market share. It's more like consumer lending and financing the small businesses and mid-caps. On the side of hunt for deposits, we will definitely continue making our improved propositions for the clients and work on the appropriate on the appropriate balance between paid and unpaid deposits. Speaking about all the means, how to get there is mainly I would say favorable starting point on the side of cost of risk.

Jan Juchelka: It's more like consumer lending and financing the small businesses and mid caps. On the side of hunt for deposits, we will definitely continue making our improved propositions for the clients and work.

Jakub Czerny: On.

Jan Juchelka: The appropriate balance between paid and unpaid deposits. Speaking about all the means, how to get there is mainly, I would say, favorable starting point on the side of cost of risk. The normalization Ann is mentioning is simply stemming from the fact that we are constantly flying below our line of risk appetite statement. We have space to grow and the space to grow is mainly in the categories I have already mentioned. Let me also reiterate on the fact that we have made very hard work and series of unpopular decisions on the side of cost management during 2025. Some of the effects will be visible a bit later than in the third quarter. I need to thank all of my colleagues who have implemented the necessary measures on keeping the positive jaws in place.

Jan Juchelka: The normalization Anne is mentioning is simply stemming from the fact that we are constantly flying below our line of risk appetite statement. We have space to grow, and the space to grow is mainly in the categories I have already mentioned. Let me also reiterate on the fact that we have made very hard work and series of unpopular decisions on the side of cost management in during 2025. Some of the effects will be visible a bit later than in the Q3. I need to thank all of my colleagues who have implemented the necessary measures on keeping the positive choice in place.

Jan Juchelka: We feel strong on that, on that discipline, and we will continue working on it further on. We are very much looking forward to meeting you a quarter from now. At your, at your request, any time in between you would be interested in knowing more about Komerční banka. Thank you very much for paying attention to our bank and, we are super, committed, and, we are looking forward to speak to you soon. Thank you.

Jan Juchelka: We feel strong on that discipline and we will continue working on it, working on it further on. We are very much looking forward to meeting you a quarter from now or at your request, anytime in between. You would be interested in knowing more about Komerční banka. Thank you very much for paying attention to our bank. We are super committed and we are looking forward to speak to you soon. Thank you.

[Company Representative]: Thank you very much.

Marta Zajkowska-Bodek: Thank you very much.

Jakub Czerny: Thank you.

Jiří Šperl: Thank you.

Jan Juchelka: This has concluded our call today.

Jan Juchelka: Bye.

Jiří Šperl: This is concluding our call today. You can now disconnect.

Jakub Czerny: You can now disconnect.

[Company Representative]: Thank you.

Jakub Czerny: Thank you. Thank you.

Marta Zajkowska-Bodek: Thank you.

Jiří Šperl: Thank you.

Jan Juchelka: Thank you. Bye-bye.

Andrej Kuskowski: Bye.

Jiří Perla: Thank you. Bye. Bye.

Marta Zajkowska-Bodek: Bye-bye.

Jiří Šperl: Thank you. Bye-bye.

[Company Representative]: This meeting is no longer being transcribed.

Operator: This meeting is no longer being transcribed.