Still focused on the cost measures, and we see that those elements that we embedded in the last quarter of 2025 and also this quarter, those initiatives offsetting the inflation. We see that the cost based is remaining flat, compare here on-year basis.

Asset quality remains strong, and I would say resilient risk profile of our exposures gives good feeling that we will continue also with a strong credit portfolio. At least as of now, we don't see any major issues happening, even taking in account the geopolitical environment, which is kind of very intense currently, but we don't see any negative signs as of now in our credit portfolio.

Robust capital base still remains with sufficient cushions, and that allows us to be generous on a payment from the capital to the shareholders. Yesterday, we paid off our dividends for 2025 of 50% of profit of last year, and we also are continuing our journey on preparing for the rest of this 70%, means 20% to be potentially paid out as a buybacks.

On a strategic milestone and innovation part, I would highlight that last quarter was important from the Tesonet announcement, and they announced that with a 28% of premium, they're targeting to acquire some shares from current shareholders, and also expecting to reach the level of close to 32% and potentially, in a longer run, controlling stake in Urteja Bank. Also, we strengthening our team.

Last period, Urteja was joined by few colleagues. Important to mention about our CTO, which is new position combining several functions which were separate before.

The product development and information technology divisions will be under one umbrella, and we see this strengthening of this area will be very important in our longer development of technology and products. Also, good news from the Moody's, who upgraded our long-term deposit to A3 from Baa1 and also made our perspective from neutral to positive.

Important development in Lithuania on Pillar 2 reform, we showed, I would say, quite a good resilience in this area compared to the peers. Some clients also migrating to other investment instruments like Pillar 3, and also, we recently launched our, as we called, Urteja ETF Select product, when we selected number of interesting ETFs for our clients that they can acquire without any fees.

Let's move a bit deeper to the Pillar 2 reform, which take place in Lithuania from the 1st of January. It's much the essence of reform that it gives a flexibility for the clients to withdraw their funds during the window of two years.

We see that this opportunity has been used quite intensely by some of our clients. About 40% of funds have been withdrawn from pensions.

It's a good opportunity for the clients to consider other saving and investment instruments. We see this trend that at least some of the clients not only going for the consumption needs, but also considering where to invest those money on their own or with their partners.

We will observe how the situation will develop further. From our side, the good news that Urteja's withdrawals are the lowest in the market at the range of 35%, while the average is close to 40%.

With that, as already mentioned, we see some dynamics towards the Pillar 3 pension contracts that has increased by 7% and now is getting closer to, in total, close to 50,000 of 50,000 clients. Also, we see positive trend on our deposit base, since some amount of cash has been placed in the current accounts.

Let's touch Tesonet's acquisitions of Urteja shares. We see as a very interesting development in our shareholder base.

Worth to remind that Tesonet bought on the 15th of March additional stake in Urteja Bank, and that concludes to the stake of close to 12%. That's the one step, and they're considering to acquire the stake up to close to 32%.

It could take approximately two to one years, as you can see on a lower part of a chart, that the permissions that are needed from the regulators are expected in the first quarter of 2027, then this transaction could be completed. They also gave intentions of acquiring the controlling stake of Urteja Bank, we will see how this evolves further.

The pricing is announced, it's 1.2 multiple to the book value per share. Probably most of the people knows who is Tesonet, but with this partnership, with this shareholding, we see that technological and also cybersecurity, overall web intelligence competences definitely could be strengthened in Urteja, and to make our bank stronger with this partnership with a new shareholder.

Shareholder structure, as you can see on the left-hand side, as the current one, and projected on the right side. We see that with this change, the concentration increases, Tesonet should have 31.7%, Invalda INVL 18.7%, EBRD stays as also one of key shareholders with 7.4%, and the rest, more than 42%, will be among other shareholders.

The concentration level will be slightly higher compared to the current situation. Just to focus a bit more on the Tesonet benefits that we're expecting to have is definitely important for us to strengthen our technological platform, on which we are working hardly to change our core banking system and applications and etc.

It's a lot of different systems will be replaced. This know-how in Tesonet is probably one of the best in a country and in the region.

Therefore, their expertise and discussions with them will give even more credibility for us to complete successfully all the endeavors that we have in this part. Especially not only rollouts with a new system, but to prepare for future growth using this technological infrastructure.

This know-how is very important. Also, Tesonet is well known on their client experience, how to build the best applications and other solutions that are needed for the clients.

I would say that Urteja historically have been a top-notch client service on the physical channels. Now with Tesonet, we're expecting to have the same higher experience level on our channels, having them modern and with really interesting solutions for our clients.

With that information, I will pass word to Tomas Varenbergas, who will continue on financial results.

Thank you, Vytautas. Good morning, everyone, and happy to walk you through our financial performance during the first quarter of this year.

To begin, we do see a good stabilization in our net interest income, and our net interest margin has now bottomed out. Looking to the base rates dynamics, we do believe that we are at a good position to improve in that metric.

Also, our cost of funding is also repricing downwards, so that additionally gives another reason on better development in net interest income. Net fees and commission income decreased year on year by 2%, basically mainly due to lower bonds origination activities in Baltic countries.

We do see a good pick-up in the pipeline, and we do believe that in the coming quarters, we can catch up in the fees growth. We continue cost discipline.

The measures that we took during the end of last year and during the first quarter, so that keeps our base cost, or recurring cost, flat year on year. We're still working on additional measures that long term will help us to be more cost efficient.

Given the strong macro situation in a country, our asset quality remains very good. Cost of risk is below 10 basis points, and it's still getting better quarter by quarter.

We have achieved net profit €15.4 million in Q1. We still provide also adjusted net profit, so that's exclude the one-offs.

That's the investments into our IT, core IT replatforming project. Without these one-offs, our net profit figure was €17.4 million and ROE close to 12%.

Moving to net interest income development. As I said, net interest margin bottomed out.

Given the recent development Euribor, it gives us additional potential. Just to also notice that our baseline budget is built on Euribor 2.15%, six-month Euribor is 2.15%, and the current level, which is 25 basis points higher, so that gives us additional room for improvement in development of interest revenues.

Cost of funding repricing nicely, and so given the lower term deposits rates and the clients migration from term deposits to the current accounts gives us also good development currently and it will give good development in the coming quarters. The asset yield decreased during the quarter, but basically, it's because our liquidity portfolio was invested into the low-risk fixed income securities.

The asset yield decreased, but mainly, we are happy on net interest margin, which has bottomed out. On a loan portfolio, during the last 12 months, loan book increased by 7%.

During the last quarter, growth was 1%. The beginning of a year was, I would say, slower and lower business activity, but towards to the end of a quarter, during the March, we do see a good demand for the credit.

Our loan origination levels came back to the numbers that we're happy to have. By looking to the March loan book growth, it's already noticeable higher than we had during the last quarter or even the last half of a year.

Important milestone, our mortgage book surpassed 30%. That's very well supports our strategic focus to the private clients.

With a growing mortgage part in our loan book puts the organization into more resilience and more diversified pattern. Let's move to the net fee and commission income.

Decreased by 2%, basically mainly due to lower bonds origination in Baltics. That's also some seasonal slowdown, also some changes in markets, but fundamentally nothing changed.

We do see a good build-up in the pipeline, and during the second quarter of upcoming quarters, we believe that we will catch up. Still good fees generation from the asset management, €2.5 million.

Looking forward, absolutely with withdrawals from the second pillar pension fund, the asset management contribution to our net fee and commission income should decrease. Let's move to operating expenses.

We're happy with management of our recurrent expenses. The initiatives that took place and initiatives that taking place, they are fully offset inflation, and we do have flat cost base change during the last year.

All the, I would say, key expense lines contributing, including the salaries, marketing, and buildings. We do have some uptick in the IT expenses, and basically, it's due to that we have moved our servers into the cloud-based solutions, so that costs us additionally, but it brings organization into more resilient and into more secure space.

Looking forward, with increase inflation, we could expect additional pressure, and the recurring cost base could slightly increase. Again, the measures that we already took, we do also some have restructuring costs, but in a longer term, the second half of a year or even beginning of the next year, we believe that decision that was made will be paid off.

Let's move to the asset quality. Given the macro situation in a country and the performance of our clients and the origination standards that we do have contributes very well.

Our cost of risk during the last quarter was 6 basis points. If you look to the last 12 months, it's 9 basis points, and if we see into the development during the last 1 and 1/2 years, we have a good improvement from cost of risk above 30 basis points to lower rate than 0.1%.

We are good on our NPL, especially on late-stage NPLs, and we stand on 60 basis points of a total portfolio. In overall, we are happy on how our asset base is performing.

Of course, additional pressure could come up in case the macro situation would change given uncertainty that comes from the Middle East. In case Lithuanian macro situation growth trajectory would be reviewed, additional provisions from the change of the perimeters could take during the course of this year.

Far, everything is good in our asset or loan book. On the funding side, we do have a good development, especially on a cost side.

Two factors that currently is happening. The first is that the term deposits are repricing at lower rates, and the clients are migrating from the term deposits to the demand accounts given low rates environment.

Our total funding base didn't change much during the first quarter of a year. We do expect a little bit different situation during the second quarter given that the second pillar reform liquidity event took place the first weeks of April.

We are happy that Moody's upgraded Urteja's deposit ratings and changed outlook to positive one, and that was made also together with our senior unsecured debt rating outlook. Finally, our capital position.

We operated very strong capital ratios. That provides very solid base, or foundation, for future growth and capital distribution.

CET1 ratio at 18%, it's already by extracting or taking out the dividends that were paid out for the shareholders yesterday, but not including the first quarter profit of 2026. Dividends were paid out.

We are working on filling the application in order to apply and to get the permission from ECB to get approval for buying back shares in amount of 20% of 2025 year profit. That's all from my side.

I'm giving the word for Tautvydas to kick off with Q&A and closing remarks.

Thank you, Tomas. Yes, I will summarize briefly the key takeaways for the quarter before we jump into the Q&A session.

First, on net interest margin, we believe that NIM has now bottomed out, predominantly due to proactive management of funding costs on our side, but also in the last few weeks of March, Euribor rate has picked up. As we are the bank that predominantly lends on a variable rate, this change in the base rate will give us a nice additional tailwind and will help us to improve the top-line performance going forward.

Secondly, we remain very diligent with cost management. Various different initiatives helped us to offset inflationary pressures and allowed us to keep our operating expenses almost flat year over the year.

Third, on asset quality, it remains high. Our NPL ratios and cost of risk remained very low throughout the quarter.

Fourth, on financial strength, we're very happy that our capital base remains very solid and robust. We paid out dividend yesterday to our shareholders, and we are arranging a new share buyback program to distribute additional capital to our shareholders.

What's important is that we're maintaining enough flexibility and headroom to expand our lending activity, to sell, and will continue to invest in our business to make us more competitive in the markets. Finally, our shareholder structure is evolving.

During the quarter, Tesonet announced that they're increasing stake in the bank. They also communicated the intentions to eventually acquire a controlling stake in our bank.

It's important to note that this transaction in the last quarter was executed at 28% premium, which created a nice spillover effect, increasing our share price, which benefits the broader shareholder base. We're very happy about this strategic partnership and commitment from Tesonet Group.

With partner of that caliber, we believe that we can achieve more, and we can move faster in delivering our strategic agenda. This is it.

This concludes our prepared remarks. We will now move to the Q&A session.

I will ask everyone kindly to limit themselves to two questions per person. If you have additional questions or if any of your questions remained unanswered during today call, please feel free to email investor relations team, and we will get back to you as soon as possible.

The first couple of questions coming from Erste Bank: "Good morning, Tomas. The first question is: Do you see any material upside or downside risks to your 2026 outlook?

Is your financial guidance fully confirmed at this stage?"

Good morning, Tomas. I will take that question.

Yes, we do confirm the guidance at this stage. On upside or downside risks, well, on the upside, I would say that our loan book growth picks up, and Euribor dynamics, the uptick in the Euribor, gives us some upside potential, cuz our baseline Euribor, which is plugged in into our model, is 2.15%.

Currently, as Euribor is 30 basis points at a higher rate, in case it will stay at these levels or at higher levels, it gives us upside on revenue side. From a downside risks, well, uncertainty that could come up from the conflict in Middle East could bring what's not plugged in in our model, that come up from asset quality, from the provision side.

That's what we are closely monitoring and assessing, and what we'll do going through 2026.

Thank you. The next question is about the conflict in Middle East: "What impact do you expect from the conflict in Middle East on Lithuanian economy and on Urteja?

Do recent yield movements and revised market expectations for ECB rates support your positive outlook for net interest margin?" I can take this question.

Yes, the crisis in Middle East is affecting our economy negatively. The increase in fuel prices feeding through the inflation, which is never good when it's a supply-driven inflation effect.

Secondly, transportation and logistics is a very big part of our economy, accounting to roughly 10% of GDP, so that sector could also be negatively affected. It's very important to note that this crisis is a little bit different from the one in 2022 and 2023, because electricity prices and other utility prices are not affected to that extent.

Yes, the impact in the economy will be net negative, but it's not going to be as severe as in 2022 and 2023. I think the economy is ready to weather this mild shock.

We're in a better place. GDP has been growing very steadily, consumer confidence in the country is very high, and we have excess liquidity in the system on the back of the Pillar 2 pension reform.

We'll continue to monitor the situation carefully. Then on the question about yield movements, I think Tomas answered this question.

We are the bank that predominantly lends on a variable rate, any increase in the base rate is net positive for us. Moving on to the third question: "Regarding the strong loan demand observed in March, which products were the main growth drivers, and what do you expect for loan growth in Q2?"

I will take that question. Actually, our key segments performed pretty well.

Mortgage demands are very high. Corporates also picked up.

A little bit different story with consumer lending: at the beginning of April, some early repayments took place due to the Pillar 2 reform in a country. Actually, we have expected even larger repayments, in overall, well, even consumer lending segment performing and picking up in a growth at a faster pace than we had in January or February.

On a loan growth in Q2, we'd expect that the first half of this year growth rate could come into 4% or 5% area.

The next question comes from Swedbank: "Good morning, Andrej." The question is: "Could you please elaborate on the Tesonet's increase in the stake?

What's the endgame here? To make Urteja a digital bank?

Do you have any plans to expand abroad?"

Hi Andrej, good question, I will take this. Willing to have this take once the approvals are achieved, and we will see announcements from their side.

I would say how we communicate with the new shareholder, or shareholder who increased the position, that they are also committed to our strategy with how bank is now focused on developing the brand and proposition for the clients. With the focus for the retail, it's fully aligns with the Tesonet considerations where potential growth is, and where we can unlock some new potential.

As we see, we have a strong profitable franchise of Urteja in Lithuania, and that's a good base for additional growth opportunities. We will see together where we can unlock them and how we can go forward.

Talking about abroad, current focus is still remains on Lithuania. When we see good solutions working for our clients that could be replicated in other markets, definitely we will consider that, and Tesonet's experience in this area, being global player, could be paramount in Urteja's future development, not only in its native country.

Great. The second question from Andrej is about the branch network and what is the endgame regarding this matter.

Maybe I'll take this question. Our strategy remains unchanged: we want to be a phygital bank.

We continue to invest in both our technology stack, as well as physical branches. We want our customers to have the best access, be it digital or phygital, for banking services.

Now, also worth mentioning that contrary to common misbelief, our physical branches are not big cost overhead for us. It's less than 15% of total opex, and it's very effective sales channel.

Looking ahead, we will maintain the largest branch network in the country. Having said that, it doesn't mean that we're not going to close certain individual branches.

We always review our footprint, want to balance the client accessibility, as well as managing our costs. Nothing's changing in a short term.

The next question is from Enlight: "Good morning, Vytautas." The question is about the IT: "Could you please give an update on your core banking system upgrade?"

Thank you for the question. This year, as we call, is the year of a technological transformation, and organization is fully focused from different angles: from IT colleagues, product development, and the rest of teams that are involved in this project.

More than 200 people are directly operating with this project. We're running successfully forwards, and the preparation is coming to the phase when we will start our friends and family testing.

Everything goes intensively, but according to the plan, and our last strengthening of the team are also very important for success of the project, because, as I mentioned earlier, we're focused not only for the rollout itself, but how to prepare organization in the future. Definitely, the new CTO, also the head of organizational transformation, who has joined recently, and also strengthening our IT team is very critical not only successfully launch this year the new systems, but also, from the day one, to operate them properly and to be prepared to adapt in the new technological environment.

Far, everything goes well, and we'll update you later where we are in this project, and thank you.

Thank you, Vytautas. At this stage, I don't see any additional questions.

Want to thank you for dialing in today and for your continued interest in Urteja Bank. With that, goodbye.