Good afternoon, ladies and gentlemen. Welcome from Komerční banka and thank you for sharing your time with us today.

It is the 6th of February 2026, and we are going to discuss the results of Komerční banka Group for the fourth quarter and for the full year 2025. Please note that this call is being recorded.

Today, we have the entire Board of Directors together in one room, led by the Chairman and CEO of Komerční banka, Jan Juchelka. We also have Margus Simson, Chief Digital Officer; Miroslav Hiršl, Head of Retail Banking; Kateřina Kurucová, Head of Corporate and Investment Banking; [Nadege Kouchkovsky?]

, Chief Risk Officer; Jitka Haubová, Chief Operations Officer; and with them of course, Etienne Loulergue, Chief Financial Officer. As always, we will begin with the presentation of results, which will be followed by a questions and answer session.

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.

Thank you. Thank you, Jakub.

Hello, everyone. Thank you for sharing your time with us.

We very appreciate your attention you pay to Komerční. It's my pleasure, together with the top management team, to lead you through the presentation of Q4 2025 results and the full year 2025 results.

We can start with page number 4. Komerční in 2025 printed solid growth of financing of Czech economy across the board, all segments, with the emphasis on housing loans.

We grew by 6.8%. The fourth quarter contributed by 4.3%.

On the side of deposits, we grew almost by 6%, which we didn't find optimal. This is why in fourth quarter, we opened the gate a little bit for gaining a bit more deposits from the market in order to build solid foundations for 2026 commercial and business growth.

Assets under management outside the bank grew by 5.5%. For us, it's a combination of mutual funds made by Amundi, the private banking products, pension schemes, and insurance products from Komerční pojišťovna.

Here, we saw a little drop on the new sales and new origination for the investment products by Amundi. I will come back to it in a few minutes in a detail.

Balance sheet and capital remained very strong. We are sitting on 17.9% of capital, 17.1% is Core Tier 1.

Loans to deposits in safe territory of 83.1%, and both short-term and long-term indicators of liquidity remain far above the requested 100%, LCR for 159% and NSFR for 130%. Full year's results were translated into 18.1 billion Czech crowns net profit.

On reported basis, it's 4.7% growth. If we take out the extraordinary income stemming from the sale of the headquarter building last year at Wenceslas Square in Prague, we are showing 22.3% on year-over-year basis growth.

It represents 95.61 Czech crowns per share, and all this money will go back to shareholders as a Board of Directors advising the shareholders' meeting which will take place in April this year. Cost-to-income ratio of KB remained at 46.1%, return on equity at 14.2%.

Looking forwards, we are guiding the market for 2026 dividend guidance at 80% the payout ratio, and we feel we are fulfilling our promise that after the extraordinary period of time, which took three consecutive years, where we were giving back 100%, we will go lower, but we are still 15% above the traditional payout ratio, which used to be 65% before COVID. In the bank, there was one remarkable corporate governance-related event.

We are welcoming [Hervé de Kerdrel?] as a new Supervisory Board member since 1st January 2026.

[Hervé?] is a lifelong banker which is retired SG banker joining the team and enlarging the diversity of Supervisory Board.

In 2025, Komerční made a important step towards the new reality. We are closing our KB2025 transformation program, probably the largest transformation initiative in the Czech banking history for last 20 years, where we delivered the fully rebuilt digital platform from 21st century, replacing the core banking, the accounting, and payment systems and other relevant systems, and launching new client proposition and new application for the front office in branches, for internet banking, and for mobile banking.

Thanks to that, we are also able to learn a new disciplines how to acquire hundreds of thousands of new clients. In 2025, it was 135,000 new clients using our platform KB+.

The total number of KB Group customers overshooted 2.2 million, currently we are recording 2. 268 2,268,000 clients whom we are servicing in the entire group.

In 2025, we gained a couple of recognitions. On the Mastercard Bank of the Year, we were named as a Bank of the Year in Corporate Banking and Bank Without Barriers.

We can move to page number 5. Speaking about strategy, let me open this chapter with the statement that we have completely new, fully digital platform working 24/7 with multicurrency account in place, in which we are currently finding almost entire portfolio of our retail clients.

So 2025 was a year of finalization of huge maneuver of transferring clients from the old to the new system. We are gaining also the expertise how to onboard, how to activate, and how to cross-sell the new clients.

We will come back to it in detail through my colleague, Miroslav Hiršl, in a second. We have created an competitive advantage with higher digital sales penetration.

We are currently achieving 54-55% and heading to 60% of the total sales of our products in a digital way, improving customer satisfaction thanks to the very modern design of our new app and new interface in the internet banking and in the branches. The modern technology is done in the world where we have applicated the agile way of working for the software crafting and software coding, thanks to which we are able to come to the market much faster with new innovations.

We will show you the picture what might be those in 2026. We were very strict on working on costs.

The cost base was redefined. In 2025, we were super strict, even in the context of our NBI slightly lagging behind our original expectations, we took the measures on the cost side immediately.

We see that the new platform, combined with much simpler, much faster processes and much simpler organization, is bringing higher level of efficiency. We are keeping the bank strong on capital.

We will obviously continue with that, not only from the, let's say, strict supervision point of view, which is represented by Czech National Bank, but also by our strong conviction that the large and stable capital base is enabling us for the future to grow organically. We are recognized ESG leader, combining MSCI ESG rating, S&P Global CSA score, as well as FTSE4Good is keeping us among top 5% of players of that kind.

We continue financing also the energy transition in the country and other relevant programs. We are executing the program as a simpler, more agile, more efficient bank, well-positioned to deliver the organic growth down the road starting 2026.

Next page, please. At page number 7, I'm handing over to Margus Simson, the Chief Digital Officer.

Good afternoon from my side. Just looking into the things that we delivered during this last 5 to 6 years of transformation, then I would probably point out three the most important ones.

The first one, the new digital bank is completely cleaned up, completely simplified compared to the setup that we had in the past. Just taking a simple example: on the retail platform side or retail customer side, we had 600 products before in the legacy system; we have only a bit more than 30 in the new one.

Effectively bringing down 20 times the number of products, this is not only speeding up the kind of the way how fast we can develop things, but it also brings down the operational costs, operational complexity. It is helping to bring up our time to market from 18 months that we had rather before in the old system to rather to a couple of months in the new system.

The ability to innovate, the ability to deliver into the market is significantly changed thanks to that kind of complexity reduction that we have been going through. Simplification in every terms, the things that the customer sees, the things that happen inside the IT, is the biggest benefit of the transformation from that end.

When looking at the functionality, then obviously the new technology brought different opportunities as well. The multicurrency account, the very similar setup what, for example, Revolut has, this has been enabled only by the new solution being up and running.

The account customization, I believe one of the very unique opportunities that the customers tend to love, is that they can choose their own account numbers. This is something that seems trivial or seems like a little bit unnecessary development, but at the same time we see that the customers like when the services are really tailored rather towards their own needs and their own initiatives.

When we're looking from the security perspective, then previously we had our authentication tools separately and our mobile application separately. Now they're merged into one, which makes the usage for the customer significantly easier, but also make sure that we do not have the complexity also from that side burdening our customers and our selves.

When we are looking at the security options that are sitting in KB+, then just imagine the modern solutions that needs to be there in order to make sure that the customer's money is safe and we do have. With that one, handing over to Miroslav Hiršl to focus on the questions of what has been really changing on the business side, what has been delivered into results.

Thank you, Margus, and hello to everyone. Let me guide you by using a few highlights how all of that was explained so far is reflected in business life and business activity of the bank.

On the next slide, if I may. I'll start by commenting the number of users, by the way.

The first thing to say is our new bank is up and running. It's stable.

Today, there's more than 1.6 million active users. When I say even more, it is by additional 30 30,000 clients.

The number is basically increasing every week, every day, and even every time you click on a refresh button on the screen. It's moving forward.

It's not just only a number of users; it is also the number of new clients that are there on the platform. When you look at 2025 and 2024, we basically almost doubled our acquisition capacity compared to the usual years before, even though in the brackets you see another year that was pretty good.

I would stick to my doubling the acquisition capacity, which is quite a success. Another point I'd like to highlight goes to customer migration.

You heard it already, we finalized the migration of private individuals to the new platform. There are still a few left on the old one, but it will be lower and lower number, and it's not critical anymore for the activity of the bank.

If you would ask me, is it done? I would say yes, it's done for private individuals.

What is not yet done, but will be done soon, is other client segments, starting by small entrepreneurs, whom already more than 50% of clients has been migrated to the new platform, and we will finish the process by Christmas this year. Number three out of my fourth chapters is private banking clients.

Even though they are not so many, they are quite specific in many cases. We will start the migration with the first cluster next month, in a few weeks, and again, there's strong commitment and confidence on our side that we will be able to finalize the migration process until the year end.

There's one chapter more, and this is legal entities. This will take by a year longer, but it will not wait for 2027.

We will start the beginning of summer this year already, and we would like and will finalize the process in 2027 by the year end. Moving to the next slide, few more things to say.

The first one: it's true that we went through quite important and even sizable streamlining of the distribution network over the recent years. It was branches, number of branches, but not only that, it was number of front office people, and probably even more, number of managers, not just the number as such, but also the number of layers and the whole organization structure.

It is true that when you go through so significant changes, it creates certain friction in the organization and takes part of your energy away for the change itself. This was the first thing that was symptomatic for our distribution network.

The second one was, by the way, the focus of distribution network or front office people to migration as such, because it was taking approximately 20% of their capacity. Good news is that it's all done.

Even though there's still some migration to go through, it will just be part of business as usual, not taking much of our distribution capacity, which should allow us to spend even more time with our clients and to spend even more time on our business activity, which gives me a lot of optimism for the years to come. From the same basket, let me speak a bit about the increase of digital sales.

A few years ago, we were starting from quite modest, humble numbers. In 2025, we are already around 55% of all sales happening in digital way.

When I say digital, it's not just paperless, but it means it goes end-to-end digitally without any human being in the bank touching the process at all. It is true even for some quite significant products such as consumer loans, where we are already above 50% of all the tickets being processed super fast without any touch of a human being.

If I should close the story by the last element, it has to be client satisfaction, because what we were doing, we were not doing because of transformation per se or migration per se; we were doing it to make the bank better for the clients. You can see on the graph that we did and that the customer satisfaction measured by NPS is consistently increasing month-by-month.

Where we were starting at very humble levels, today we are already moving in the corridor between 25 35 and 40 points. We still believe in our ambition to get to 50, but we will need a few more quarters for doing so.

It is true that with every other migration wave finished, with clients getting used to the new environment, with new environment being very stable, we are quite convinced that this is going to happen. I would stop here, and I would give the floor to Etienne, our CFO.

Not yet. Not yet.

In fact, the the the word goes back to me not because of my function, but because this is the order how we how we agreed at the beginning. Let me say page number 10, just to summarize what was the what was this chapter of our transformation about.

We went out as streamlined organization with much lower level of number of managerial layers. We were turned down from the from 7 to 8 to the existing 4 to 5.

We have increased our span of control at the level of approximately 8.1, and we want to stay around 8 for the time to go. We have come we have came out as a as a team of people who knows how to run and deliver the complex transformation of that size, of that kind, using Agile at scale way of crafting the software and running the project across all the all the disciplines of of banking.

That, being combined with microservices architecture of our IT, is giving us the advantage of much faster time to market when launching new innovations, when launching new functionalities, when launching new products. The system is much more stable than the previous one.

We are We are We are seeing higher than 95% of operational stability and availability of the systems as we speak. The overall platform is obviously much better ready for working smarter in a smarter way with data and implement the AI functionalities in it in in a smoother way.

We are not abandoning our very strong culture of compliance and risk management, which was, by the way, one of the contributors also into our net profits in 2025. We have gained already in various parts of the bank very high productivity increase.

Let me name the housing loans production, which is back at record high levels delivered by approximately 50% of the staff than it was before, and further cost rationalization across across the bank. Let me move to next page, please.

Now we are inviting you back to the traditional pages of our presentation. We are very lucky, together with our main competitors, to make the banking business in the Czech Republic.

This is a growing economy. We expect in 2025 the growth the total growth of GDP was 2 2.5%.

2026, after the revision of our macroeconomic team, we believe it might go even higher to 2.7%. The industrial production is back to the growth, followed by already growing construction construction businesses.

Wages are beating the inflation, without any surprise, the households are the main engine of of this growth and large contributor in in the growth of of GDP. Thanks to that, also unemployment is is is down, this is one of the assumptions we are making that consumer lending, consumer loans produced by Komerční banka in 2026 should be one of the fastest-growing parts of our of our own book.

The inflation, as I mentioned, is is nowadays even even in for for January even below 2%. Czech National Bank Bank has not touched the two weeks repo rate, and they are remaining at they are keeping it at the existing 3.5%.

Czech koruna is slightly it's slightly stronger and stronger vis-a-vis both euro euro and dollar. The overall frame seems fine when you combine it with with the fact that the current government seemed to be pro-investment and pro-business, and and we see that there is also more and more decisions of our clients to follow this enthusiasm by private private investments.

Let me move to next page. Which is the business performance.

The loans are up by almost 7%, the main the main engine being mortgages. Komerční is back to the market, taking from the market anything what oscillates around 20% of the new production.

When you see the fourth quarter of '24 and the fourth quarter of '25, you see the you see also the the the fascinating growth by 82.2%. Having said that, and having repeated that, we are delivering it with one half of people than previously.

When When moving to consumer loans, we would love to have higher numbers in '25. It didn't happen, but we have our new format of consumer loan in KB+, which is fully digital from from beginning to the end.

We have 15 to 20% of the capacity of our branches back to sale and less to assist the clients with transfers and migration. We are orchestrating the branches, the digital, KB advisory services, third parties, and the KB Contact Center in in the best way to to approach the market with a with a real omnichannel omnichannel approach and simply speaking, to sell more in 2026.

When moving from retail to corporate, there was very dynamic very dynamic growth in the fourth quarter, very strong fourth quarter, promising fourth quarter. We believe that the rebound of Czech manufacturing industry, machinery industry, defense sector, and few more is bringing us back to faster growth of the the the faster growth of and and positive trajectory on that front.

KB will be assisting its clients at the at the maximum, and we believe that here the the dynamism will will continue. When When speaking about corporate clients, we we need to to remind ourselves also the performance of SGEF, which became 100% subsidiary to KB, which is delivering 6.2% growth.

Let's move to next page. You see that Komerční was all over the place during 2025, during the fourth quarter of '25, assisting clients with financing or advisory in their transformative projects.

Miroslav spoke about NPS for retail clients. Let me say that our strong activity on corporate and investment banking side is bringing us back very high levels of Net Promoter Score in corporate and investment banking business.

Higher we go through the portfolio, we are drifting towards 80 positive points of of the feedback, of the satisfaction feedback by by corporate clients. We are very proud of it, but we are not complacent from that.

We will continue pushing the button on the side of corporate clients, mid mid-sized clients, municipalities, as we do today, and confirming our leading position in corporate financing. Let me go to next page.

Page number 16 is deposits. I need to confess it grew by a little bit suboptimal levels.

We we we wanted to grow more, and we opened the gates, in the fourth quarter to get to get more like long-term deposits mainly from retail to to build even stronger funding for our future commercial and business growth. Despite the fact we we were we were growing by by 5.8%, which is probably not a disappointing number, but our ambition was slightly higher.

When speaking about about deposits, what is probably the most important part of it is that the saving accounts and term deposits are growing by almost 30% in in that in the mix between between the paid and non-paid deposits. The non-paid deposits, i.e., current accounts, are are are are slightly down.

When going to from the balance sheet of the bank to to to to assets under management outside outside the bank, you know that we have this partnership with Amundi, where the sales of mutual funds was down by 14% on year-over-year basis between '25 and '24. We should keep in mind that, yes, on one hand, we are not we are not super satisfied with that; on the other hand, '24 was super strong, and we were sitting together with Amundi to get appropriate action plan in place and to to get it back to to growing trajectory.

Inside that, KB has collected more fees even from from that structure, thanks to thanks to the change or or or or transformation of composition of fees charged, to to the clients, mainly thanks to the fact that there was much less money market funds sold and much more equity, fixed income, and other funds sold to to our retail clients. Having said that, insurance was growing by double digit, 15.2% in total, life 15.3, non-life 15, both somehow being also or taking the benefit from the growing book of housing housing loans.

Not only that, you can see in our KB+ application that there is an an extra button for for the insurance product, which is bringing first fruits to to the P&L. Next page, please.

Here I'm handing over to Etienne Loulergue, our CFO. Thank you.

Thank you, Jan. I will guide you through the financial performance of Komerční banka for 2025.

So 2025, Komerční banka delivered again a very solid financial performance bottom line, with a net profit reaching more than 18 billion Czech crown on a full year basis. If we compare it to the reported 2024 net profit, which was 17.2 billion, it's a growth of more than 800 million Czech crown, representing 4.7%.

If we look at the full year 2024 excluding the exceptional positive one-off of the capital gain coming from the sale of the historical building of Václavské náměstí, we start from 14.7 billion Czech crown in 2024 recurring. Therefore, the growth year on year is plus 22% representing 3.3 billion Czech crown within 2025.

The main drivers for these growth are the following. First, we have the influence of the net cost of risk evolution in 2025, which represents year on year a positive evolution of 2.5 billion Czech crowns.

Second, and it is very important to highlight in 2025 performance, we have visible decrease of our operating expenses base by more than 700 million Czech crown on the full year basis, with two main components. Of course, we enjoyed the fact that we have a lower contribution to the Resolution Fund in 2025, and it helps for 380 million Czech crown.

More important than that, we were able to decrease our internal cost base by more than 360 million Czech crown with efforts which we will explain a little bit later. The third driver for growth is, of course, the growth of the net banking income overall driven by our commercial performance.

The overall growth of the net banking income is plus 70 million Czech crown, representing plus 0.2%. Within this net banking income, we have, of course, the first driver, which is the net interest income growing by more than 560 million Czech koruna, and unfortunately slightly compensated by a decrease in the overall net fees and commission and net profit from financial operations.

This more than 18.1 billion Czech crown of net profit in 2025 enables to deliver a return on average tangible equity at 16.1%, growing year on year by more than 70 basis point on reported basis, and if we compare to the recurring basis, it's even bigger with more than 300 basis points. You can see also that the return on average assets stands at 1.2%, which is also growing year on year by approximately 10 basis point.

On the bottom right part of the chart, you can see the evolution quarter over quarter with regular growth of the net banking income and a solid control of the operating expenses. We can move to the next slide, please.

Evolution of the balance sheet. We had a solid growth of the balance sheet and a sound growth of the balance sheet.

It represent 4.1% additional year on year or 60.4 billion Czech crown, and we reached 1.6 trillion of Czech crowns of balance sheet at the end of 2025. On the asset side, the first driver for this growth is obviously the commercial loan performance, with a growth of 52 billion Czech crown, representing 6% for this part of the balance sheet.

On top of that, we grew also our cash and liquid instrument by 17 billion Czech crown, representing 4%. On the liability side, the growth was driven by the client deposits for 47 billion Czech crown year on year, representing 4%.

Additionally, we also grew our portfolio of securities issued with 17 billion Czech crown from an issuance of covered bonds that we achieved in the last quarter of 2025. The purpose of such an initiative is to diversify our sources of funding and secure satisfactory level of liquidity ratios.

I recall at this stage considering the balance sheet evolution, that we have a comfortable high-quality liquid asset portfolio on the asset side, representing more than 400 billion of Czech crowns or one-fourth of the balance sheet, which enables to sustain the liquidity coverage ratio at a flattish level, 159%, and the net stable funding ratio at 130%, also stable year on year. Now, if we move to the next slide to go in more details regarding the composition of the net banking income.

First, we have the net interest income, which is growing year on year by 2.2%, more than 560 million Czech crown, with definitely, as a first driver, the growth of the balance sheet. We have the growth of the loan books we mentioned just in the previous slide, contributing by plus 300 million Czech crown in the net interest income or plus 3%, and the growth of the deposit contributed with plus 185 million Czech crown in the net interest income or 2% for this specific category.

Important to highlight also, on the top left of the page, you can see that we maintained our net interest margin overall at a stable level, 1.72%, coming from 1.74% in 2024. This is a very positive achievement considering that in 2024 we had to suffer a decrease of this net interest margin by almost 20 basis points.

So 2025 stabilizing is a very satisfactory performance, and now the challenge is to continue the growth on volumes. If we move to the next page, on fees and commissions, the overall picture year on year is in decrease by 330 million Czech crown, representing 4.6%.

However, we have to remind that in the base of 2024, we benefited from some exceptional additional fees and commissions coming namely from the exceptional performance of asset management in 2024. We benefited from extra performance fees in this field, and we also benefited from very important transaction in the field of syndicated loans, generating also additional fees in 2024.

The exceptional fees that we had in 2024 represented slightly more than 300 million Czech koruna. If we exclude them and we compare to a recurring base, we are year on year more or less flattish in terms of fees and commissions.

Second point to highlight in the fees and commission, flattish factoring the fact that in 2025 we have performed this significant migration of our private individual clients to the new digital solutions and a new framework in term of fees, as the client now benefit from subscription plans. The structure of fee is changing, and we are much more consistent with market practice.

It influenced the transaction fees by minus 200 million Czech crown in 2025 compared to 2024, and now we are on a new base on which we count with growth thanks to additional volumes. You can see also on the bottom of the page the quarterly evolution of the fees and commission and their mix, and you can see a steady growth in the second half of 2025, with a nice rebound in the fourth quarter.

If we move to the next page, the third component of the net banking income is the net profit from the financial operations. In this front, we are growing nicely by more than 100 million Czech crown year on year, representing 2.8%.

The first driver is very sound, as it is our sales activity mostly for hedging instruments for our clients. The growth represents plus 130 million Czech crown or 8%.

On the front of net gains from foreign exchange operations, from payments, we are in terms of overall revenue flattish. However, we see a continuous growth of number of transactions and volumes, but we have also a slight pressure on the spreads.

You can see also on the bottom right of the page the evolution quarter over quarter of these two activities, and I would like to highlight that Q4 is kind of normal quarter compared to Q3, which was an historically high quarter, obviously the best of 2025 and probably one of the best historically speaking. Next slide, please.

Now moving to the cost part. Here, this is a remarkable achievement in 2025 with the reduction of the cost base.

It was made possible thanks to the transformation which was explained at the beginning of the presentation by my colleagues, where we have invested massively in the digital transformation, and now our digital solutions are up and running. We have also reorganized and refocused network in orderly manner, and now we benefit from these gains in productivity and efficiency.

It is visible in our operating expenses. The first driver of the operating expenses decrease is the personnel cost, with minus 5%, representing 450 million Czech crown year on year, and it is driven by a reduction in the number of average positions by approximately 6.5% year on year.

I would like also to highlight that we keep a very strong discipline on the other costs, and especially on the general administrative expenses, which were also decreased by 4%, representing almost 200 million Czech crown year on year. I recall once more the reduction in the Resolution Fund contribution, helping also to reduce the overall cost base.

The last element in the operating expenses that is important to comment, and it is growing, it is a depreciation part, growing by 7%, but we confirm that we have it completely under control, as it is our road map following all the investment we have capitalized in the previous years to deliver this massive digital transformation at the bank level. Reducing the operating expenses in such big scale enabled to deliver a significant positive jaws effect on the cost-to-income ratio, and we decreased by more than 2 points our cost-to-income ratio, which reached a level of 46.1% on a full year basis in 2025.

I will now hand over to [Nadege Kouchkovsky?] , our Chief Risk Officer, for the asset quality and cost of risk.

Thank you, Etienne. I will start with the asset quality.

The fourth quarter is in prolongation to what was seen during the full year. As it was mentioned earlier, the portfolio of loan grew up to almost 7%, and this was in the context of a very stable and excellent quality of our loan portfolio.

This is seen in the Stage 2 and Stage 3. You see that the Stage 2 is dropping down, but this is mainly driven by the effect of the inflation reserve that was created some years back.

We commented in the previous quarter that the scenario of inflation not being realized, and we just saw the prospective figures, that we decided to release this reserve. This is creating this effect in share in Stage 2.

Despite from that, it was very low inflow of Stage 2. Same remark for Stage 3.

You see that here we are dropping to 1.6% share of the portfolio in non-performing loan, and this is also influenced by some write-off and successful resolution of big corporate client files that were non-performing and some sales of receivable. As far as the provision coverage of the non-performing loans is concerned, it's very stable, and I would say the variation is linked to this sales of receivable and resolution of corporate files.

Maybe more interesting is to see the effect on the cost of risk, if we can go to the next slide. For the fourth quarter, we are in net release of 130 million Czech koruna.

Here on the non-retail portfolio, once again, it's driven by the release of the inflation reserve and this successful resolution of client situation that I mentioned earlier. At the same time, we also decided to modify a bit some assumptions on our reserves and to keep reserve with more broader assumptions linked to this unstable situation, whether it's macroeconomic or geopolitical.

On the retail exposures, this is net creation here, but this is driven by also the adjustment in the reserve assumptions. This is I would say for the newly assumption created for the reserves for the coming years, we are here impacting more the small business exposures.

All in all, for the full year, it's net release of almost 1.5 billion Czech koruna, minus 16 bps, which is obviously very low point, but it was logical given all quarters evolutions. Here maybe one comment is that cost of risk is always seen as more through the cycle, some years might be obviously impacted by some exceptional resolution of long-dated situation with client.

This was the case this year. We also had the positive impact of the very high-quality portfolio, which led to very low inflow of problematic loans.

This is also linked to what was mentioned that we are growing with mortgage and big corporate loans, which are I would say the bulk of our exposures. We are less present in segments which naturally brings some cost of risk, and this is what we are going to develop for the coming years.

Again, on the non-retail side, it's mainly this effect of repayment and successful resolution and the adjustment of assumption of the overlay. On the retail, as I mentioned, it's intrinsically very low inflows of default and the adjustment of overlay.

I give you the floor back, Etienne.

Thank you, [Nadege?] .

I will comment on the capital adequacy ratio situation. We maintained a solid level of solvency ratio with 17.9% at the end of 2025, which is well above the overall capital requirement set by the regulation.

We are more than 130 basis point above this requirement. The composition of this capital adequacy ratio is very qualitative, with a Core Tier 1 ratio standing at 17.1%, and the Tier 2 instrument in our own funds represent 0.8%.

The main components of the evolution of this ratio are stable Core Equity Tier 1 part of the capital, stable level of Tier 2 instrument in 2025, stable in term of regulatory own funds, while on the denominator side, the risk-weighted assets grew by 2.4% in 2025 to reach a level of 580 billion Czech crown. Of course, we have maintained our provisioning for the dividend at 100% on the cumulative net profit of 2025.

This is a transition for the next slide. Being in this solid capital adequacy ratio situation, we confirm our intention to distribute 100% of the net profit 2025, as guided across 2025.

We will distribute the 18.1 billion Czech crown of total net profit for last year, and it represents an impact per share at 95.6 Czech crown. Now coming to the forecast for 2026.

Considering our ambition to grow further our loan book and contribute more to the funding of the Czech economy and grow our commercial footprint, we see an acceleration of our loan production in 2026, and therefore an acceleration also of our risk-weighted assets. As we of course want to stay always with a solid capital adequacy ratio, we consider that it is time to slightly reduce the payout policy.

Remember that we have distributed 100% of the net profit for three consecutive years, but always mentioning that it is kind of extraordinary situation. With an expectation to accelerate again on the credit side for 2026, we consider that it is prudent, but still very satisfactory, to guide a distribution of 80% of the net profit 2026.

Next slide, please. To comment on our outlook for the year 2026, of course in a central scenario.

First, the assumptions on which we based our scenario are the following. We foresee again solid growth of the Gross Domestic Product of the Czech Republic at 2.7%.

We also forecast a good control of the inflation, below 2%, and also a stability of overall of the interest rate environment, starting with the short-term rates, the two weeks repo at 3.5%. By the way, probably as you noticed, it was confirmed yesterday by the Czech National Bank in their public statement.

Based on this assumption and our ambition to continue to grow our commercial books, we forecast for the loans to clients a growth in a range mid to high single digit in both segments, retail and corporate, probably slightly higher in retail thanks to the dynamism of the household consumption. On the front of client deposits, we also target to grow mid to high single digit, as it is consistent with the loan book.

On the net banking income, our ambition is to grow mid to high single digit, with a contribution of the main component, of course the net interest income first, but also growing again on net fees and commission and net profit from the financial operations. On the front of operating expenditures, after having decreased in 2025 compared to 2024, we count with coming back in slight growth of the OpEx in '26, but with low single-digit growth.

The combination of this low single-digit growth in OpEx and higher growth in the net banking income should enable to deliver again a positive jaws effect in 2026 for the cost-to-income ratio and decrease it in a range 43 to 44%. Regarding the net cost of risk in 2026, coming from the exceptional 2025, which was in net release, representing 16 basis point of net release overall, now in '26 we are cautious, and we expect to return to creation of loan loss provisioning.

However, in a range that is lower compared to the average level that we have observed through the cycle. Bottom line, the return on equity should stay in a very satisfactory level between 13 and 14%, considering again that the net cost of risk should come back in creation of provisions.

Of course, we commit to maintain a solid level of capital adequacy ratio, and we maintain our guidance to stay in a range 17.5 to 18.5% for our ratio, which is 100 basis points above the overall capital requirement set by the regulation. I hand over to Jan Juchelka for the final conclusion.

Thank you very much, Etienne. Thank you for giving us your attention.

There is a hard work behind us in 2025, especially on the side of cost management, on the side of crafting the finalization of the transformation program. We believe we are perfectly equipped for 2026 on both retail and corporate segments to attack the market with growing loan book and growing deposit base.

We believe that in the dialogue of Czech Banking Association, where KB is an important member, we will continue the constructive dialogue with the government, who presented pretty ambitious parts of public investments. We believe that private investments from our corporate clients will follow, and the consumption and investments of households will continue remaining strong.

This is the main assumptions on which we are building our conviction that 2026 should be another strong year of Komerční banka. Thank you very much.

I am chipping the word back to Jakub Černý for conducting the Q&A part. Thank you.

Thanks to all the speakers. 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 are connected through a telephone and would like to ask a question, I will invite you later on. Thank you.

Our first question comes from the line of Cihan Saraoglu from HSBC. Cihan, please go ahead.

Hello, thank you very much for the presentation. I have two quick questions.

One is with regards to how much inflation overlays you have left. Have you consumed all of those, released all of those in 2025?

The second one is with regards to competitive landscape in the deposit market. Particularly, I remember towards the first half of 2025, deposit competition was somewhat escalating, and then you commented that you were not too happy with the acceleration in your deposit book in terms of growth.

How do you see the competitive landscape, and how confident are you with regards to your deposit growth guidance? Thank you.

I will start with your question on the inflation reserves. Here, just maybe to remind, the models are backward-looking with some forward-looking coefficients, and what we put in reserve is more what we cannot capture with the models.

Then this is based on many assumptions, and as I explained, inflation being no more one of our concern, and we see that it's going to I would say the lower level than it used to be in the past, we considered changing the assumptions. Under the so-called pure inflation, we don't have any reserve, but we considered that the environment being still very unstable on other I would say geopolitical, macroeconomic concerns, we kept the reserves both in the corporate and on the small business for the retail part.

If I may continue with the deposits and the competition on that front. Yes, you are right.

The composition of our deposits was and remains, let's say, slightly different on the side of current accounts versus saving accounts or term deposits. If you wish, unpaid versus paid parts of the deposits.

It's visible here in the Czech Republic that we are opening advertising campaign with pretty attractive levels of rates for our retail clients. We see the tendency of our clients to either bring back fresh money, should they be already an existing client, or bringing money as a new client.

Slowly, but steadily, we believe that we will be building even stronger pillar of our deposits for further financing of Czech economy. As far as pricing is concerned, we are not the leader.

We are not proposing the highest-ever rates. Nonetheless, we know that it will not go forward without leaving some money on the table in favor of attracting fresh money into the bank.

If you wish, we slightly adjusted our approach to collection of new deposits. When speaking about deposits on the corporate side, we believe that smaller the company is, longer the deposits stay in the bank.

We are again, more or less as we speak, we are back to the market with very attractive rates for small businesses where we were lagging behind our traditional market shares, and we continue pushing on cross-sell of these clients using the deposits as an anchor product in the new platform.

Thank you very much. Thank you.

Thank you. Again, if you have a question, please use the raised hand button, or if you would like to ask a question via telephone, please unmute yourself pressing star and six.

We still have a question from Marta Czajkowska from Santander. Marta, please go ahead.

Yes, hi. Thank you for presentation.

I have a few questions. First, you mentioned that there was a pressure on credit margins in the fourth quarter.

Can you just elaborate on that, which credit lines are more exposed to that pressure and whether you expect this to continue? The other question is on the 2026 outlook.

Where do you see the potential for growth for NII? Is this coming only from loan growth, the mix of the loan growth or the margin expansion?

Also on the fee income, where do you see the prospects for higher growth to support the revenue streams? On the cost side, if I may, you mentioned you expect slower growth.

If you could elaborate on the potential for cost savings in 2026. Thank you very much.

I will start with the outlook. You are right that we expect growth of the net interest income.

Our assumption is based on growth of the volumes, not only loans, deposit as well, even though indeed we have higher growth on the paid deposit than on the non-paid deposit. Even paid deposit are we are able to generate margins additional on them.

We expect growth from deposit and loans volumes. If we focus more on the loan portfolio, it's also a question of mix indeed.

We forecast to accelerate on consumer loans, for example, where we didn't grow so much in 2025, and we have a much higher expectation in 2026. Definitely on this type of loan, we have better margins.

In the field of fees, we expect to grow in different categories of them. I will mention, of course, the cross-selling fees, where we expect a rebound in asset management fees definitely, but also transactional fees, as after having achieved the migration to the new subscription plans, now we expect to grow thanks to volume growth.

Regarding costs, we have mentioned that in 2026, we expect rather an increase compared to 2025, but in a low single digit. We don't expect to decrease further the OpEx in 2026 compared to 2025, but to be back slightly in growth under a very good control, of course.

This growth is driven by an increase in the depreciation that is expected, and again fully under control because we have a road map of the putting in use of all the investment we have achieved in the recent years. On top of that, a slight increase of the other component of the operating expenses, both staff and general administrative expenses, but in a very low single digit in both cases.

Coming back to the pressure on margins on credits, it is true that the market is very competitive, and we saw it in Q4. We can say that, for example, on mortgages, which is market growing very fast, we are also facing intense competition, and we saw a pressure of a few basis points on the margin on mortgages.

However, as this product remain a core product to anchor the long-term relationship with the clients, and with this product we are able to generate cross-sell, especially on fees, but also by securing some stable deposit on the balance sheet, we truly believe that it is worth accepting a slight decrease on the spread on mortgages, but securing additional revenues aside. If I may, just few additional words to Etienne.

You probably know that in the field of consumer loans, in the field of small businesses, we are somehow lagging behind our natural market share. We believe that we have the means to fill the gap here and to be much more active on providing consumer loans to Czech households and providing the appropriate financing to small businesses.

We have acquisitive ambitions on that front, we want to grow. This is one of the main sources of NII down the road, especially when you take into account that households will be continue their strong economic activity also in 2026 and on.

We believe that those are also two subsegments where the margins are still achieving pretty nice numbers. Let me also remind that on the side of mortgages, we are currently collecting anything around 20% of new production from the market.

Again, I will never miss the opportunity to say that we do it with one half of people than there used to be. There is still, obviously, a margin, lower than on consumer loans.

We see that oscillating between 60 and 80 bps for 2025 hands. Here, the volumes will be, let's say, prevailing and creating also the perfect base for cross-sell to clients which are taking long-term mortgage from KB.

Thank you.

Thank you very much for that explanation. Just one follow-up on your dividend policy going forward post-2026.

Could the market expect continuation of 80% payout ratio in the following years as well?

We feel super responsible in front of the shareholders. When speaking about shareholders, obviously there is one which collects 60% of the ownership, but there is anything between 70 to 80,000 institutional and private individuals which are representing the 40%.

We are simply guiding our dividend payout through the filter of do we have better a use for the excess of capital or not. If not, we are giving it back to the shareholders.

When we see our forward-looking predictions, we will always keep as much capital as needed for securing our organic growth, and the rest will be for investors. Should that be 80% on the long term, it's pretty too early to say.

We rather stay on the safe side and guide the market only for the ongoing year. We will do our best to keep it at satisfactory levels.

Clear. Thank you very much.

Thank you. Again, you can either use the raise hand button on your screen or you can unmute yourself and ask your question directly if you wish so.

We don't seem to have any further questions at this point, I'm handing back to the CEO for a concluding remark, please.

All right. Again, thank you very much for this numerous presence in our conf call.

We very appreciate your attention paid to Komerční. We are looking forward to come back to you at latest with the next first quarter presentation.

In the meantime, we entirely stay at your disposal for potential questions should you have any. Thank you very much at the team of Investor Relations and all my colleagues here to help with the presentation and answering your questions.

Thank you, and have a good rest of the day.

Thank you all. This has concluded our call today.

You can now disconnect.