Cezary Kocik : Good afternoon, everyone, and welcome to mBank Q2 2026 results conference. We are very pleased to have you with us today. It has been six months of our new strategy implementation behind us, so it is a good moment to look at it, if we are on track or not. I would like to start with a very strong message. mBank continued to gain momentum in the second quarter and further strengthen its market position. We increased market share across the board in loans and deposits of our retail and corporate segment. Our market share in mortgage loan increased to 9.1%, up by 0.7 percentage point year-on-year. This shows the strength of our franchise and the quality of our client relationship. The message I would like to send is following: we are growing at a healthy pace, building scale, and moving consistently towards our 2030 ambition of at least 10% market share in all key product categories. Organic growth is a real engine of value creation for mBank. Our financial performance is also firmly on track with our strategic objectives. We continue to deliver strong profitability, high efficiency, disciplined risk metrics, and robust capital levels. ROTCE remains above 21%, despite the higher corporate income tax for banks. Cost-to-income ratio is among the best in the sector. Cost of risk is well below our long-term assumptions, and capital buffers remain strong. We also do confirm our intention is to pay out 30% of the net profit generated in 2026 as a dividend. Based on the current criteria, mBank would be eligible to distribute up to 75% of net profit to shareholders. It confirms that our business model is resilient, backed by consistent execution, and we remain well-positioned to deliver attractive returns while funding future growth. What stands out on this slide is that our business volumes are gaining momentum. Loans grew by 13% year-on-year, driven by both retail and corporate banking, outpacing the sector and driving further improvements of our market shares. In retail segment, mortgages remained the key growth engine, supported by healthy demand and competitive offer. In corporate banking, lending growth reflected our industry expertise and the effectiveness of our unique hybrid service model, which strikes in the right balance of focusing on technology and client relationship. Deposit increased by over 20% year-on-year and outpaced the loan growth. The inflow was driven mainly by current and savings accounts, strengthening our funding profile and creating additional capacity for future expansion. In the first half of 2026, we achieved the highest ever net results of mBank. It increased by more than 20% year-on-year, despite declining interest rates and a substantially higher effective tax burden. Revenues remained growth-stable. Lower net interest income resulting to monetary easing was slightly offset by growing income and other revenue streams. Lower Swiss franc-related legal risk costs were also an important driver in supporting profitability and consequently, capital generation. Our capital position remains very strong. The inclusion of retained earnings increase our own funds and further strengthen already comfortable buffers. Capital metrics remain well above regulatory requirements, and our MREL position was further reinforced by the green senior non-preferred bond issuance in the amount of EUR 750 million. This gives us room to grow the business, absorb regulatory changes, and execute our strategic priorities without constraints. To conclude this section, I would like to underline that mBank is executing its strategy with consistency and discipline. We have restored business growth and gained market share, delivered strong profitability, reduced Swiss franc-related legal risk costs, and further strengthened our capital position. This progress is reflected in two important milestones. Total assets of mBank exceeded PLN 300 billion, and our client base surpassed 6 million. These milestones confirm the strength of our franchise, the trust of our clients, the proven ability of our platform to grow under different circumstances, and its potential for years ahead. Now, I hand over to Pascal, who will discuss the trends in the second quarter.
Pascal Ruhland : Thank you very much, Cezary, and also hello from my side. The key message from Q2 is clear: our strategy is working. We are growing, gaining scale, and converting that growth into record profitability, as Cezary already highlighted. This translated into the highest quarterly profit in the group's history. PLN 1.1 billion net profit and a return on tangible equity of almost 22%. For us, very important, this growth is supported by resilient fundamentals, a strong balance sheet, comfortable capital and liquidity buffers, and therefore, we have clear room to continue executing our strategy. With that overall picture in mind, let me now move to the P&L on slide 11 and explain what drove this performance, starting with revenues. Total income increased to PLN 3.1 billion, driven mainly by a recovery in net interest income. NII rose by around 3% quarter-on-quarter, supported by loan growth and disciplined deposit pricing. Net interest margin declined slightly to 3.47%, mainly reflecting the lower interest rate environment. Going forward, we expect net interest margin to remain broadly stable around 3.5%, assuming constant interest rates. Fees remain broadly stable, while trading and other income normalized from a very strong Q1 level. As a result, we are now updating our revenue guidance. We now expect 2026 revenues to exceed 2025 levels, supported by our balance sheet growth and fee income. Underlying costs increased by 8% quarter-on-quarter, reflecting IT investments, marketing activity, and also seasonal patterns. Efficiency remained excellent. Reported cost to income ratio was at 30% and normalized, the more important for us, cost to income ratio was below 33%. While we continue to invest in growth and in technology in the second half of the year, we expect cost to income to remain well below our strategic target of 35%. Cost of risk remained at low levels at 37 basis points, with asset quality very strong. Swiss franc legal risk costs stayed at low level, supported by a shrinking active portfolio and lower litigation inflows. As mentioned earlier, profit before tax and net profit reached the highest quarterly levels in our history. It's also noteworthy that the tax burden remains very high, with more than PLN 850 million in taxes paid in Q2 alone, including the banking tax. Even so, while we run a very efficient business model, profitability remains strong with an ROE around 18% and a return on tangible equity of close to 22%. Having covered the quarterly P&L, let us step back and look at the first half as a whole. The message remains fully consistent with Cezary's opening. mBank is growing profitably while absorbing higher sector burdens. I do not want to go through this chart line by line as we have already covered the key trends. What I would like to highlight is that this chart clearly shows the full potential of our business model as the Swiss franc-related legal risk becomes increasingly insignificant. From profitability, let me now move to the commercial engine behind it, new lending business. Mortgage sales reached a record PLN 10.7 billion in the first half, up 74% year-on-year, with Q2 significantly above Q1. Fixed rate mortgages remained important for our customers, representing over 60% of the new sales in June. Non-mortgage loan sales were also on record high, PLN 7.9 billion, up 15% year-on-year. Corporate lending accelerated as well, with new production up 16% year-on-year and 30% quarter-on-quarter. Growth was broad-based, supported by structured finance, overdraft lending, and strong activity in our large corporate client segment. We also see attractive growth opportunities in the smaller corporate customers, so K2 and K3, supported by our faster processes and stronger client coverage. Now there is a very important point to make on our operating leverage. Our growth is highly scalable because our largely digital processes in retail as well as in corporate, allows us to absorb this significantly higher volumes without a meaningful increase in FTEs. This strong new production is now clearly visible also in the loan portfolio on slide 14. Gross loans increased by nearly 13% year-on-year and 6% quarter-on-quarter. Corporate loans were the main engine quarter-on-quarter, while mortgages delivered the strongest year-on-year growth. Mortgage loans grew 18%, and non-mortgage loans grew 8% year-on-year. Our core retail book, excluding FX mortgages, expanded by 15%, with market share gains in household and PLN mortgage loans. The corporate loans increased 11%, translating into an 8.7% market share. Our market gains share are mainly driven by deepening the relationship of our existing plans. This is fully aligned with our strategy of appreciation. We grow by giving our customer groups the best offer, so more reasons to choose mBank again across both retail and corporate banking, where we already have strong starting positions, as we have very attractive client segments, including the youngest retail customer base in the market. After the loan book, let me now turn to the other side of the balance sheet, customer deposits and investment products, where the franchise momentum is equally visible. Total deposits reached PLN 248 billion, up 21% year-on-year, and almost 5% quarter-on-quarter. Retail growth was driven by current and saving accounts, confirming that the strength of our transactional franchise is working. Corporate deposits also grew strongly, while profitability of deposits remained very well managed. We gained market share in household deposits and maintained corporate deposit shares comfortably above our strategic target. Investment products also expanded, with PLN 18.3 billion in funds distributed through us. Regular investing is developing strongly. 117,000 corporate customers now invest regularly. Retail customers, not corporate customers. We have invested volumes up 52% year-on-year. This is exactly the behavior we want to encourage. Educating our customers, helping them starting small, and then building recurring investment habits over time. Overall, deposit investment products confirm deepening customer relationships and our franchise is becoming stronger. This provides a solid funding base for our profitable growth. Having now covered both loan and deposits, let me now connect this balance sheet growth to revenues and margins. Despite a significantly low interest rate environment, our total income remained resilient at PLN 6.2 billion, broadly unchanged. Net interest declined by 4% year-on-year reflecting lower market rates. Very important, it returned to growth in Q2, increasing by almost 3% versus Q1, supported by continuous loan and deposit growth. We expect net interest margin to increase in Q3 and Q4 slightly to above 3.5%. Net fee and commission income increased by 5.5% year-on-year, driven by higher client activity across several business areas. The year-on-year comparison should be viewed in the context of a one-off in Q2 2025 of about PLN 40 million, following the contract signed with UNIQA. On a quarterly basis, net fee and commission income remained broadly stable despite higher acquisition and promotional costs in Q2. The year-on-year stability of revenues was also supported by stronger trading result and higher dividend income. This last item includes a PLN 40 million dividend received from PSP, and that's the operator of BLIK. Overall, diversified revenues and strong volume growth show that we are converting the strategic momentum into resilient income, therefore, we now expect 2026 revenues to exceed 2025 levels. After revenues and margin, let me now turn to costs, here the message is very simple. We continue to invest further in our growth, that with strong discipline. The first half operating costs grew 10% year-on-year, fully in line with our low double-digit guidance. Despite investments in people, technology and marketing, Q2 cost to income ratio remained excellent at 30% reported and below 33% normalized, comfortably below our strategic ceiling of 35%. From efficiency, let me now move to risk costs and credit quality, which remain supportive of our growth story. In the first half 2026, impairment losses and fair value changes on loans amounted to PLN 240 million, down 19% year-on-year. As a result, the group cost of risk remained low at 34 basis points. In Q2, LLPs increased, with the cost of risk rising from 30-37 basis points. The increase of cost of risk was driven out of the corporate segment. However, it should be seen in the context of very low Q1, which was recorded and benefited from a sizable provision release. In Q2, credit losses were primarily related to a limited number of isolated cases, while the overall portfolio quality remained very sound. In retail banking, risk costs remained very low and even declined slightly despite continued loan portfolio growth, reflecting strong repayment discipline of our clients. Overall, cost of risk remains well below the through-the-cycle assumptions we are having. Obviously, we continue to monitor macro and geopolitical environment, the portfolio remains sound. Given the low provisioning in the first half of the year, we have now revised downwards our 2026 cost of risk guidance, we expect now around 55 basis points. This sound risk profile is also visible in the portfolio quality on slide 19. Loan quality remained strong in Q2, despite the pace of growth. The NPA ratio improved to 3.1%, supported by portfolio growth and continued NPA sales. Corporate NPAs improved, retail NPAs stayed stable, and the PLN mortgage portfolio continues to perform very well. Coverage levels remained prudent, with total coverage rising to 74.4%. We also have enhanced disclosure in response to investors' feedback, which we really appreciate. We added more details on Stage 2 loans and commercial real estate exposure, and you can find it in the presentation on slide 41. Let me now close the financial review with capital, which remains strong and is a key enabler of our growth story. At the end of June, CET1, Tier 1, total capital ratios remained comfortably above regulatory requirements. Even with strong loan growth and the related increase in RWAs, our capital position supports further business expansion and our ambition to return capital to shareholders over time. Looking ahead, we are working on additional capital optimization initiatives. This includes a potential AT1 domination transaction and another securitization transaction, which is expected to reduce RWAs by around PLN 2 billion. Now something very important. In Q2, we have applied for an adjustment of the scope of our internal credit risk models. We expect ECB and KNF approval in Q3. Once implemented, the change should lead to a significant reduction in RWA. Based on our current calculations, the impact should be in the mid-to-high PLN single-digit billion range and materialize by the end of Q1 2027. Of course, this will strengthen our capital position further and support profitable growth. Let me now summarize the key takeaways from the financial review. First, scale. Loans, deposits, investment products, all expanded. Second, returns. Record quarterly profit and a return on tangible equity of around 22%. Third, discipline. Efficiency, risk cost, and legacy risk all under control. Fourth, resilience. We have a strong capital and liquidity position, which enables us to grow further. Finally, let me translate these results and takeaways into our outlook for the rest of the year, and I will repeat what I was sending as outlook during the speech. We expect 2026 revenues to exceed 2025 levels. We expect net interest margin to remain broadly stable around 3.5%. We expect the cost-to-income ratio to remain well below our strategic target of 35%. Swiss franc legal risk is expected to stay insignificant. We expect the cost of risk for the full-year around 55 basis points, and most important, we expect volumes to keep outgrowing the markets, led by mortgages and financing for our strategic industries. Overall, mBank, we enter the second half of the year with profitable growth, strong capital, and a clear path to value creation. We are now looking forward to your questions.
Joanna Filipkowska : Thank you very much, Pascal. Now we will start our Q&A session. The first question is to Marek Lusztyn. Congratulations on reducing NPL ratio. What was the main factor that contributed to this reduction?
Marek Lusztyn : Good afternoon, and thanks for noticing. The decrease in mBank NPL ratio from 3.4% in Q1 to 3.1% in Q2 was driven by several factors that include positive outcome of corporate individual cases. We have reclassified the commercial real estate client from not performing to non-default status. That is circa PLN 145 million. And it was further supported by the sale of non-performing loans. We have sold PLN 130 million of non-performing exposures in Q2, and that was also supported by continued dynamic growth of the credit portfolio that Pascal and Cezary were alluding to.
Joanna Filipkowska : Thank you. Now let's go to the questions about NII. What was the impact of the ECJ verdict on consumer loans on NII in the second quarter? And did mBank make additional provisions for legal risks relating to consumer loans in Q2?
Pascal Ruhland : I'm taking the question. In general, when we talk about this overall topic, it needs to be stated that since 2023, we have been one of the first banks who are not granting anymore those kind of loans. And luckily, if you look into the overall exposure of our balance sheet when we talk about those cash loans, we are very well-positioned, also due to the fact that at that point in time, we were fighting with the Swiss franc legal environment and therefore had not enough capital to really grant big portions in this direction. Secondly, we need to say that for us, the topic of SKD and related jurisprudence is very positive because mBank wins 90% of the concluded cases, and therefore, the provisions we have taken in are insignificant. What we have decided is the portfolio, which we are still in 2023 not anymore granting, which is still a legacy. We obviously from the 23rd of April, not charging it anymore, but as said, this is not a significant portion.
Joanna Filipkowska : What growth rate does the bank expect for its corporate loan portfolio, excluding reverse repo buy-sell back transactions, by the end of this year? What is the outlook for 2027, 2028?
Pascal Ruhland : On the growth rates in general, we expect to outperform the market. Therefore, it needs to be double-digit, as we expect that the market is growing in the corporate segment around 11% this year. For the years to come, we also expect to outperform the market. That means we also need there have higher growth rates than our competitors at the same pace.
Joanna Filipkowska : Regarding the proceeding related to the unauthorized transactions at one of the bank's conferences in 2025, management indicated that provisions of PLN 21 million had been established. What is the current balance of provisions recognized in relation to this proceeding?
Pascal Ruhland : Nothing has changed in that respect.
Joanna Filipkowska : The question about extraordinary Risk-Weighted Assets effects. I believe the extraordinary Risk-Weighted Assets effects are now over, or?
Pascal Ruhland : Correct. We are not guiding anything with the exception of the positive potential effect we are having, which I guided, which is an effect which we would expect by Q1 2027. We currently don't see anything, to the best of our knowledge today, which would be regulatory inflate our RWAs further.
Joanna Filipkowska : Thank you. What is the current share in the active portfolio cash loans which accrue interests on commission or insurance?
Pascal Ruhland : That's a statistic we're not providing.
Joanna Filipkowska : Okay.
Marek Lusztyn : Just what Pascal said, that we stopped charge fees in 2023, bearing in mind maturity of the cash loans, it's a not significant part.
Joanna Filipkowska : What caused the decline in CET1 capital during the quarter?
Marek Lusztyn : Okay, I'll take this one. That's basically driven by growth of the business because as you can see, the TREA has increased by nearly PLN 9 billion in Q2. That increase is primarily driven by the credit risk, mainly due to the business development of K2, K1 and the mortgage lending segments, as well as in the subsidiaries, combined with a decrease from the relief we are getting from securitization. Here the impact is fully business-driven, not regulatory effects.
Joanna Filipkowska : Thank you. How have spreads in the corporate lending developed in the last two quarters, and where do you see them in following quarters?
Pascal Ruhland : The spreads in general have compressed. We see that not just in corporates, but in general in the lending activity in the Polish market, and we cannot exclude ourselves here. We also see that there is a bottoming out effect in the spreads, if we look into our latest prints.
Joanna Filipkowska : The question from Jaromir Szortyka. It appears that UniCredit may increase its stake in Commerzbank to nearly 50%, becoming a major shareholder of the group. Do you see any areas where UniCredit could support mBank's future growth?
Cezary Kocik : On that we will not comment at this moment. We are waiting what will happen.
Joanna Filipkowska : Okay. Some questions about our AT1 capital.
Pascal Ruhland : Yeah. Our AT1 capital, as you know, the bucket we can fill is 1.5%, and if you take the growth we are currently pursuing and our existing issuance, obviously this bucket becomes automatically smaller if you are not going into the market in order to fill it up again. It is nevertheless currently assumed to be a sub-benchmark transaction, something between EUR 200 million and EUR 300 million.
Joanna Filipkowska : Just a moment. I am looking for the questions that we have not answered yet, because a lot of them have been covered during the presentation.
Marek Lusztyn : There is one more, that reads, if our MREL ratio includes the recent EUR 750 million senior non-preferred.
Pascal Ruhland : Yes.
Marek Lusztyn : The answer is yes.
Joanna Filipkowska : I don't think I can see more questions. Maybe, Pascal, you would like to repeat your guidance on our revenues and net interest margin, because also there is such a question.
Marek Lusztyn : Also there is one more that is on capital, so maybe before we go to the guidance and summary, I'll answer also on this one because there is a question. What is the pro forma CET1 ratio, including Q2 profit? Q2 profit after the dividend will transpose to up to 50 basis points of CET1.
Pascal Ruhland : To make that very concrete, as Marek was saying it, we're planning for 30% dividend of our net profit. We never exclude this part, the 30%, into our capital trajectory. Also in Poland, we need to have approval for including the net profit of every single quarter into our core capital, this makes it then necessary to just include it every time with a quarter delay, you can call it. Retrospective, we include it every time. Your question in terms of the development of the core capital between two quarters has also to do with that we retrospective adapt the net profit which was received in Q1 and visible today into our capital ratios. Coming once more to the guidance. We expect now revenues to outperform 2025 levels. That would also then just be possible if the second half of the year is stronger than the first half. We see momentum in NII and also in net fee commission income. You saw, and that was very important for us to stress, that NII has been increased between Q1 and Q2 based on our successful volume gains. This is also related to the net interest margin expectation we are having. We've seen that the net interest margin has now bottomed out. We expect for the next two quarters slight increase of the net interest margin. Therefore, we're guiding it around 3.5%, under the assumption that there is no further interest rate cut.
Joanna Filipkowska : Thank you very much, gentlemen. I think we covered all the questions. If not, please contact investor relations. We will be happy to answer all the additional questions. Thank you very much again for your attendance or, and questions, and see you again in three months.
Pascal Ruhland : See you very soon.
Cezary Kocik : Thank you very much.
Pascal Ruhland : Thank you.