Good morning. Let me welcome very warmly at the wrap-up of the second quarter of this year and the first semester.

The presentation will be run by Bożena Graczyk, CFO in charge of investments, Rafał Benecki, CFO, and my name is Piotr Utrata, I'm the press spokesman. Bożena, let me hand it over to you.

Good morning, ladies and gentlemen. Indeed, I would like to start out by saying that we are, as ING Bank Śląski, very satisfied with Q2 and semester 1 performance for 2026.

Consistently, our business and financial data illustrate that we deliver on the beat of life strategy of ING. What is noteworthy is that in Q2, we obtained 101,000 new retail clients, which is the highest growth for 6 months, also 19,000 of companies, which is very good performance Q-to-Q.

We do believe that this is a result of combination of the attractiveness of our offer and very simple and intuitive digital processes. In this quarter, we offered to our clients subscription-based accounts, and we expand their functionality and value.

For the smallest companies, micro-companies, we produced a new digital way of opening an account with us, which was designed from the very basis to simplify and streamline the process. We are very much persuaded that this growth of consumer base shows that ING continues as number one choice, or one of number one choices, on the Polish market.

We also increased the credit portfolio by 9% year-on-year, and deposits grew by 3% Q-on-Q and 16% year-on-year. The second quarter shows record-breaking levels of sales of retail lending, 18% more year-on-year and 1% more Q-on-Q, which gives us 7.8 billion loan and closes with 15.5 billion of new credit exposures.

The retail credit offer increased 9% year-on-year to the tune of 2 billion Polish zlotys. On mortgage side, we have 5.8 billion zlotys volume, which means 19% of growth year-on-year.

This is also maintaining of a record-breaking level from Q1 and a very strong second position on the Polish market. As you can see from the value of mortgage lending, we are the second largest bank in this segment, and we have 72 billion zlotys of mortgage loans exposure.

What is also noteworthy is that in the previous quarter, we rolled out the digital mortgage, which is a remote process available from My ING app, which speeds up access to housing loan. That Q2 is also the first period where we fully integrate ING TFI, which is the second largest TFI on the Polish market.

Thanks to this consolidation and merger, the value of our investment products grew by 250% year-on-year and 133% Q-on-Q, reaching the skyrocketing level 72 billion, and our market share in TFI market measured by the value of capital funds is in excess of 15%. The value of commercial lending grew 7% year-on-year and 3% Q-on-Q.

Especially noteworthy are loans in wholesale banking, 15% year-on-year and 4% Q-on-Q. We embark on new major investments, which naturally promote the largest clients on the corporate side, but with ongoing processes and projects in the pipeline, also in lower corporate banking sector, we will increase our exposure.

Also, I wish to tell you that those year-on-year growths and Q-on-Q growths are very spectacular from our perspective. Nevertheless, we do not rest on our laurels.

We want to systematically grow, and to this end, I would like to show you the overall tendencies for 5 years. We were, on average, growing at the rate of 7%, whereas the market grew on 4% in loans.

On deposits, our average for 5 years is 10%, market average is 9%. What we want to bring to your attention is our strategy of developing deposit offer and growth of market shares.

To this end, I want to tell you that in the corporate sector, we grew from 10.2 to 10.5, and on deposit retail, from 11% we grew from 10.4 to 11%. Obtaining new customers and obtaining funds and opening up new accounts and deposit accounts is a response to the challenge to build banking relationship, which allows us to tap banking products at a larger scale.

This, of course, translates into all our results. At this stage, I would like to wrap up with the results and hand it over to Rafał for macroeconomic details.

Good morning, very warm welcome. In a nutshell, macroeconomics as it stands, I would say that we have ready-made data for Q2.

The impact of the energy shock related to the first stage of a war is limited: slightly higher fuel prices, slightly higher inflation, a slowdown on the revenue side, and consumption has slowed down. However, the other growth engine, that is investment, is going on quite well independently of geopolitics, which is also prompted by Resilience and Recovery Fund, structural funds.

If we want to look through the lens of sectors of the economy in Q2, the construction sped up to reach 0.5%, the industrial production also rebounded to some 5%. Retail, on the contrary, has slowed down.

Q2, all in all, shows growth to the tune of 3.8% and 3.4 for the whole year. If it wasn't for the second stage of a war in the Middle East, we would review our projections upward, but we have stage 2 of a war with Iran, we are conservatively assessing growth at the tune of 3.4%, bearing in mind the risk that might be involved.

This year, the economy will to a large extent be growing thanks to public investments, and we see that the EU fund cycle is speeding up and moneys are disbursed, which translates into good construction performance and loan performance. What is going to be important is public investments, but private investments will also probably perform quite well.

Looking at industries and sectors, on the supply side, services perform very well. Industry is also doing well, but the very strong growth that we saw in June will not be repeated.

There is a structural change: contribution of the services sector will be growing. Industry will rebound, but not to the levels that we saw in the past.

It doesn't imply that we will be Estonia-like economy with the dominating services sector. Nevertheless, services are not to be looked down on.

Thanks to services, we weathered the stagnation period quite well recently, unlike our neighbors, and we are fairly optimistic as to the important share of the services sector in the overall economy. Industry, as I'm saying, will slightly rebound, but it is not to be expected that we will return to the picture as it was 5 or 10 years ago where manufacturing was so important.

The second factor is inflation, of course. After the first stage of a war, inflation reached the target level.

The readout of inflation in June was on target, 2.5%, and in fuels, it was even slightly below. The first stage of a war confirmed to us that the situation on the consumption side is not as good as it was in pandemics, and the energy shock, as I can show you on the slide, will have a selective impact on traveling, on recreation and leisure, tourism.

Other disinflation factors continue to exert their influence: imports from China. Here, Poland stands out in comparison to other countries as for the deflationary impact of exports from Asia.

The demand side and the domestic picture doesn't allow for inflation to grow much beyond, which is a very important forecast as the war still rages and will probably continue for a while. Looking at the motivations on the two sides of the conflict, it is likely to last a little bit longer.

Nevertheless, we think that the inflationary effect will be transitional. In 2027, inflation will hit the inflationary target, and we do not assume any increases or decreases of interest rates in Poland, whereas next year, some 50 basis points BPs are to be expected from the Polish central bank.

Now, for the moment, the Polish central bank was most gentle and not interventional. After July's press conference, the market was assessing, evaluating the possible reductions, but the rhetoric has changed.

Now the board announces that interest rates will not be changed, we are quite stable. This has bearing on the level of our currency.

Unlike Czechs who want to increase interest rates, unlike the Hungarians, we have a fairly neutral position, and this has negative bearing on our currency standing. In 2027, reductions are to be expected in terms of interest rates, but this year, no news.

For 5 years, we've been running a project, which is the third item in our toolkit of macroeconomic tools next to projections of models, Excel, and econometrics. We also employ qualitative analysis.

We run interviews with business representatives. We want to know what kind of ambitions drive them, and we have had 30 interviews.

I will tell you briefly what the results and conclusions are. We are trying to understand the situation of Polish businesses in the wake of competition from China and demographic problems.

In a nutshell, Polish companies seem very creative in going about those problems, but not creative enough in the area of innovation, crediting, leveraging, and international expansion. These are our conclusions.

In this graph, we are showing changes in employment. Recently, the growth in employment is mainly due to employing foreigners.

These are official data showing more and more foreigners on the Polish labor market. In our study, we've shown, however, that a large chunk of it is unregistered import of labor, estimated at even half a million.

There are dual conclusions to be drawn here. On the one hand, businesses tend to be creative in going about the shortage of labor, but on the other, the creativity shows as keeping the status quo, the model based on cheap labor, and there's not enough creativity and audacity in the realm of innovation and investment, which is shown in the graph: low level of automation expressed in terms of the count of robots per 10,000 of labor.

Please mind the changes, the new derivative, new robots. We are including a delta on delta, there are fewer new robots as of recently.

In 2022, there was a peak, and then we were back to a lower count of new robots installed, which is worrying. In this area, the creativity of the Polish business is not enough.

Thirdly, look at international expansion. We are talking a lot about the business needing to scale up, including internationally, at this stage of our economic development.

Looking at the FDI and in the area of absorbing FDI, we are on the par with our neighbors. However, in the area of international expansion, we are lagging behind our neighbors, including the Czechs and the Hungarians.

This would be a short summary of our research, which is to be continued. This is our message we are communicating to our clients.

We are doing some organic work to show room for improvement. Last but not least, just a few words because I'm conscious of time, we've analyzed the EU ETS reform, which is very important for our regulatory framework.

Our CEO is alluding to that quite frequently. This past spring, there were high hopes on a major change in the ETS system.

Western European leaders tended to say that the emissions rights were expensive and decarbonization was not going fast enough. The European Commission promised to reform the system.

We analyzed the reforms, but we saw that they were quite limited, too limited for the appetites. They are not changing the competitiveness of European business.

If anything, they might slow down the pace of growth in emission rights in the years to come. This would be all for my part.

Thanks, Rafał. To sum up the financials, the gross profit in Q2 amounted to 1.9 billion PLN.

We know that this is higher than the market expectation. As a result, our gross result in the first half year amounted to 3.2 billion, which was 15% growth year-on-year.

It is we believe a result of consistent growth of commercial activity and the positive phenomenon on our P&L. Our income grew 7% year-on-year, which is faster than the growth of operational costs, 6% year-on-year.

At the same time, we recorded 37% lower cost of risk. The result in this quarter saw a contribution of full consolidation, the provision results 107% higher, and the overestimation of our shares in TFI to the fair value, the one-off result amounting to 106 million PLN.

This overestimation to the fair value, especially in the minority package, is not a simple thing to do because according to the accounting principles, we were obliged to take and adjust the difference between the fair value and results by the control premium discount amounting to 18.7% vis-à-vis the pure transactional value. At this point, we need to explain our approach to estimating legal risk this quarter, and here our interest income was corrected by 12 million PLN in the wake of the ECJ consumer credit opinion.

For a long time, we haven't capitalized the commission, and we haven't taken the commission for a long time already. The 12 million PLN is a full effect of following the court's decision.

At the same time, in this quarter, we set up an additional 90 million provisions for legal risks. We are very cautious and proactive as a bank by nature.

Looking at the legal environment, we set up 20 million for unauthorized transaction provisions and 70 million PLN new provision set up for other legal risks we can see resulting from consumer protection related issues: the anti-trust office proceedings respectively, our bank and the sector, and the ECJ decisions. Also, when it comes to one-offs and tax consequences, we have a new effective tax rate.

We expect it to amount to 37.3% vis-à-vis 39% we estimated after Q1. As a result, our net result this quarter amounted to 1.2 billion PLN, which is year-on-year 5% higher.

Our net result 6 months into the year is over 2 billion, lower than last year, mainly due to higher corporate income tax rates. Our ROE adjusted by macro cash flow hedge amounts to 20%, which is in line with our strategy and above our long-term strategic objective.

To comment upon the net interest income, it's stable. This past quarter, it amounted to 2.3 billion PLN, which was at the same level roughly as in the previous quarter, but it was higher, 7% higher year-on-year.

Our net interest margin was 13 bps lower quarter-on-quarter at 3.07%. As you can see here, there's a pressure on asset profitability.

Our net interest income dropped by 17 bps quarter-on-quarter down to 4.59% is a natural result of asset repricing at lower market interest rates looking at the interest rates changes as of lately. As we mentioned before, growing pressure on margin in new production, which is a result of very tight competition on the Polish banking market.

In this quarter, our financing cost lowered by 2 bps to 1.63%, which is a result of a mix of strategic actions because we want to grow on the market on the deposit side, and it was also due to changing interest of basic resources created by our clients. As a result of what were the considerably bigger growth of deposits and assets of our clients, our LTD ratio this quarter lowered to 72.6%.

It's because deposits grew 7% and loans 3% quarter-on-quarter respectively. Please bear in mind that the market average is even lower than that; according to my data, it's 66%.

We are still keeping this indicator above the market average. Speaking of the commission income, there are many changes here after full consolidation of TFI.

The capital market tied commissions grew considerably in the past quarter up to 111 million PLN versus 53 million in the previous quarter, which is over 100% growth quarter-on-quarter and as much as 171% year-on-year. Also, please bear in mind that the FX results grew 13% quarter-on-quarter and 5% year-on-year as a result of higher transaction activity of our clients.

We are back to the trends of the past. We are also happy about our cards income, 17% growth quarter-on-quarter and 2% year-on-year as a result of higher activity of our clients.

The insurance result grew 3% quarter-on-quarter and 8% year-on-year. It's a seasonal effect in it.

You can see a slight reduction in commissions tied to financing. On the cost side, there are several things to mention.

Our operational costs, including banking tax in Q2, amounted to 1.3 billion PLN, which is 6% more year-on-year. Costs grew 7% year-on-year and 10% quarter-on-quarter.

The main driver here is personnel costs. On the one hand, it's due to the pay raise announced before; our wage pay fund grew by 5%, but on the other hand, it's another result of full consolidation of TFI costs, which is reflected in various items in the P&L, our personnel costs and costs included.

The consolidation also had a bearing on the management board costs. Apart from standard cost consolidation, as we mentioned before, we also have costs of TFI integration to be borne after the ownership change.

It's already visible this quarter, to be still visible in the next quarters. These are typical costs resulting from growing post-transaction costs.

We also have a new element here related to the depreciation of intangibles identified as a result of purchase price allocation, which is identification of customer relations spinned out from the transaction. They will stay a permanent element of P&L throughout the tenure of estimated relations identified in the process.

We also have higher marketing costs this quarter, 11 million PLN more. It's a result of our dedicated promotional campaigns around the assistant campaign and the mortgage campaign, and growing IT costs, indirectly a result of our technological demand, as well as higher technological costs related to integrating ING TFI.

If we could switch quickly to the cost of risk, Q2 of this year are very low cost of risk as compared to previous periods. In total, 41 million zloty of costs of risk incurred as compared to 193 million a year ago and 111 million a quarter ago.

The low cost of risk is aided by several factors. We have positive result on NPL sales, especially in retail sector.

Also, we updated our macroeconomical projections. Our models are very susceptible to any changes and fluctuations on the macroeconomic side.

After all the whirlwind situations related to the Middle East, we see the result of 26 million of provisions set aside for macroeconomic risk, also in retail sector. Hand-in-hand, what is also visible is that in this quarter, we have lower cost of risks in the corporate sector.

We see reduced inflow of new exposures into stage 3, and I do hope that tendency will prevail also for the future. As a result, our accumulated cost of risk was 33 bps, and this is much below the long-term average, which is to the tune of 65 bps, and as you know.

In result, the contribution of lower cost of risks to the positive financial result on the gross and net side is tangible and is marked. As for the quality of portfolio, the share of third stage credit was 3.82%, reduced by 12 bps and 3 bps year-on-year, which is, of course, the result of successful sales of NPLs on the one hand side, and on the other hand side, sales of the rest of our portfolio and result of activities on the balance sheet side.

The corporate portfolio was enhanced by 11 bps, which is due to the sales of NPLs and the new sales, which by definition will improve the results. The retail portfolio is very good; the NPL ratio was improved by 15 bps this quarter, which results from the sales of NPLs.

We are very happy to see very solid quality on the side of mortgage lending; it is 0.4%, most stable, and this is a very good figure. Also, spinning off of NPL meant that provisioning ratio in stage 3 could be reduced and is now at the level of 48%.

Very briefly on our liquidity ratio after Q2, this is 14.9%, which is reduced by 88% of BPs, and its impact on Tier 1. This is due to consolidation of ING TFI adjusted on risk-weighted assets.

This is related to the sales, but also the changes of the model. We keep improving our model in order to customize it to the real-day circumstances.

This brings me to the end of the presentation of results. Are there questions?

Yes, there are many questions online. Let me start with reconfirming.

There is a request: could you reconfirm the impact of the Court of Justice ruling on the interest rate performance?

12 billion, as I was saying, and this is a very conservative and adequate gauging looking at the implications of Court of Justice ruling.

A follow-up: could you please expand on it?

The provisioning for the application of the Court of Justice ruling means that you will be very cautious concerning the commissioning of transactions? The impact is very little, very meager, as you can see.

We have had in our portfolio certain loans offered by our branches where commissions were charged, and this is a very meager, very minute value as compared to the performance of the banking sector in this country. We are always cautious, and we always keep re-evaluating legal risks.

There may be some impact of the ruling in the future, some residual impact, but according to our guestimate in terms of the adjustment of interest result and the ruling, we have 100% of coverage of legal risk. This is related also with the consumer protection, both safeguarded by the Polish Anti-Trust Authority and the Court of Justice ruling.

Macro flow hedge impact on your interest result for this quarter?

If I could have the right slide. What is the value?

The value was not shown on the slide, but explicitly this impact of macro cash flow hedge on our interest result is not shown, but consistently we've been implementing our hedging policy. Macro cash flow hedge is an instrument that serves this purpose, and bearing in mind the actions that we have taken so far, the delta is positive quarter-on-quarter.

Thank you. There is another question: could you tell us more precisely what was the impact of TFI consolidation on bank results and bank income?

As for commissions income, this is more difficult to be calculated, if I may put it like this, because we, of course, before full consolidation of TFI, we were distributing TFI units and we had contribution of interest profit related to the distribution activity. Now this is all eliminated from the bottom line, and we do consolidate all the revenues, all the profit that we have from TFI in this respect.

What I can tell you right now off the top of my head is that the impact of consolidation on the commissions performance is to the tune of 50-ish, 50.5 million Polish zlotys for the whole quarter 2 of 2026. When it comes to consolidation on the operational cost side, generally speaking, I may tell you that this is more or less 1/2 of the costs that we were showing you in stand-alone NPL, which is to the tune of some 11 million zlotys of impact on personnel and 12 million on non-personnel costs.

This is to be followed, this is to be watched Q-on-Q. I don't want to show this explicit impact, the impact of consolidation of individual factors in our NPL.

Now,

there is a number of questions concerning the mortgage market situation. Let me read them one by one so that you can dwell on them: how do you manage the risk of earlier repayment of mortgages, bearing in mind all the intermediary costs?

What is the share of refinancing in the mortgage loans portfolio? How do you perform in new mortgages?

To take it one by one. We are number two bank on the market in terms of our offerings of mortgage products.

Of course, the sales in the banking sector is impacted by the higher values on refinancing. As I was describing the previous quarter, we are net beneficiary.

We refinance more than other banks refinance to us. We could see it in Q1, we could see it in Q2; in Q2, perhaps slightly less.

Why? Because the refinancing share in the sales of new lending is important, to the tune of 40% in our particular case for 2026.

This percentage of new originations comes from refinancing of mortgage products. Now, how we handle the refinancing risk: the first thing to be observed is that we want to make sure our offer is very competitive, attractive.

We want to keep our second position on the mortgage market, we consistently maintain the solid offer for fixed-rate and variable-rate products. Of course, price adjustment is very volatile, and nevertheless, we monitor the market situation and we try to adjust our offer in order to meet our strategic objectives.

The intermediary costs are a component of effective interest rates and are effectively accounted for in the maturity or life of product cycle, and you do not see any measurable results arising from earlier repayments of mortgage products.

Following on competition on lending margins in the context of the whole portfolio, BPO Securities, do you see any reduced pressure on your margins?

We don't see this. The Polish market is a very competitive market as it stands, no matter how you look at it.

We don't see any pressure that would be reduced.

There are also two questions about the reform of reference rates. I'll read out both: Can you see a risk that after the reform, the effective WIBOR-based loan rates without adjustment spread will be lower?

That's one question. The second one: Does bank use POLSTR as an indicator for companies and individual clients lending?

Let me start with the second question. We prepared a roadmap of implementing the new indicator.

It's part of the strategy. According to the most recent decisions on the duration of WIBOR as of June, and according to the roadmap, we are constantly preparing for offering products based on POLSTR.

No decisions taken yet, I'm not going to give you any dates and times, but we are working on it quite hard and will be ready to offer the products based on the new indicator according to the roadmap. Now, speaking of the previous question, the adjustment spread, that is, we think that the reference rate reform based on BMR should include equivalent of replacement of indicators.

Now the banking sector prepared comments to the draft regulatory adjustments, it's still too early to say whether the replacement will be with or without the adjustment spread. The gist of the reform according to BMR is full equivalence of replacement, and we do assume that it will be met in the case of the Polish reform.

The last questions for now: Is there any impact of the KNF's covered bonds on the policy of the bank?

As for covered bonds, as you could see, we are increasing the issuing of covered bonds, and the process will be continued, ensuring long-term, more stable source of financing. Please bear in mind that one of the objectives of the long-term financing indicator launched by KNF was promoting the issuing of covered bonds on the Polish market.

It's already happening for some time, and it's going to be continued. We've got our issuing programs, and will continue issuing the bonds.

When it comes to the altered definition of the long-term financing rate, we welcome it very much. It's a result of positive response to the comments from the banking sector, and it ensures very rational approach to long-term improvement of long-term financing structure vis-à-vis the value of mortgage loans.

We very much welcome this change.

Thank you very much. These will be all questions for today.

Thank you very much, and see you next quarter.