Yes, thank you. Thank you all for joining us today.

I extend my warm welcome to this investor call. Starting with slide 2.

Discount Group delivered strong Q3 results with net income of 1.13 billion shekels and ROE of 13.7%. Adjusted net income for one-offs amounted to 1.25 billion shekels, representing a ROE of 15.1%.

Banking operations in Israel, comprising of Discount Bank and Mercantile, recorded 890 million shekel and a ROE of 14.3%. Discount's cost efficiency ratio was 44% in Q3, while the cost-income ratio in the banking activity in Israel was slightly lower at 42.6%.

Total credit in the group grew by 3.4%, accompanied by a solid credit quality metrics, while net interest income, NII, remained flat Q-o-Q. In light of these results, the board decided to pay out 50% of Q3 net income.

Moving to slide 3. Despite two challenging years, Discount Bank has consistently shown double-digit ROE of 14% and stable net income.

These figures exhibit the strength of bank and the resilience of the Israeli economy. At slide 4.

On the left side, 2025 GDP is now expected to grow by 2.5%. That said, Bank of Israel expects 2026 GDP to rebound notably, with GDP growth at 4.7%.

On the right-hand side, the job market remained resilient throughout this time, maintaining a healthy unemployment rate of 3.4%. On slide 5, we summarize our credit portfolio growth and structure.

In the third quarter, it's continuing its strong growth across most segments, with a 3.4% growth rate quarter-on-quarter and a 8.9% year-over-year. The corporate segment continued to show notable strength, as credit grew by 5.6% quarter-on-quarter and 17.4% year-over-year.

SME credit grew 1.6% and 4.6%, respectively, while household credit grew at healthy 4.3% Q-on-Q, and mortgage grew by 2.2% Q-on-Q and 7.8% year-over-year.

Switching to slide 6, this slide represents our credit portfolio quality. A stable economic environment is reflected in the consistent NPL ratio of 0.70%.

The allowances ratio stands at 1.3% of total credit, with a strong coverage ratio of 191%. On the right-hand side, credit loss expenses climbed to 28 basis points in the third quarter.

The observed increase in provisions is mainly due to two isolated corporate incidents made at Mercantile Bank, amounting to approximately 50 million shekel. Excluding the Mercantile provisions, collective provisions amounted to almost 90% of all Q3 provisions, reflecting Discount's conservative stance on our credit portfolio.

However, a nine-month year-over-year comparison revealed a decline in overall provisions, as prior quarters exhibited comparatively lower provision levels. Moving to slide 7 to discuss revenues.

Total revenues increased by 0.9% Q-on-Q, while fee income grew by 2.5% Q-on-Q and 10.9% year-on-year, mainly from fees and commissions from financing activities. Net interest income, NII, slightly decreased by 0.2%, while CPI contribution remained stable.

Ongoing pressure on lending and deposit margins is persistently eroding the bank's net interest margin. At the right-hand side, the income from regular financing activities decreased by 1.1% Q-on-Q, despite a 3.4% expansion on our loan portfolio.

Finance income declined primarily driven by the narrowing of credit and deposit margins. I apologize, we had a problem with the line.

I will move to slide 8 to discuss expenses and cost-income ratio. Before we delve into this quarter figures, let's briefly review the bank's journey over the past decade, marked by significant improvement in its efficiency ratio, from 67% to 52% post-COVID and further to reduction to 45% following the divestiture of CAL.

While we have come a far way, we think we can still improve our cost efficiency notably in coming years, as we mentioned in our strategic plan announced earlier this year. Moving to slide 9.

Total expenses decreased by 3.8% quarter-on-quarter and by 1.2% year-over-year, and the cost-income improved to 44%. Salary expenses dropped 6% this quarter, as we continued to maintain expense discipline.

As previously communicated in the last quarter's report, the recently concluded wage agreement is expected to provide enhanced operational flexibility for management. Maintenance and depreciation expenses and other expenses are stable, with changes mostly attributed to non-recurring items.

Moving now to slide 10, you can observe our ample liquidity and diversified deposit base. On the left, you can see that 48% of our deposits are from our retail segments.

On the right-hand side, our Tier 1 capital ratio stands at 10.47%, well above the 9.2% Bank of Israel requirements. Our liquidity ratios are well above the regulatory requirements, presenting a solid LCR of 1.7% and NSFR of 11.6%.

Moving to slide 13, I will briefly touch on our main subsidiaries. Starting with Mercantile Bank that present a net income of 234 million shekels and ROE of 15.8%.

The cost-income ratio stand at 37.5%. Mercantile grew its loan book by 7.6% year-over-year by well-balanced portfolio.

CAL is writing a net loss of 88 million shekels. The loss in the third quarter is attributed to the expenses related to the VAT assessment ruling, totaling 137 million shekels net, and an increase in the phantom stock option provision of 35 million shekel after-tax impact.

As the VAT ruling loss recognized in the consolidated report as the previous quarter, CAL profit contribution amounted to 40 million shekel in this quarter. IDB New York Bank reported a net income of $24 million and ROE of 7%.

The bank grew its loan book by 12.9% year-over-year and deposit by 30.9% year-over-year. To summarize my overview, on slide 12, I would like to emphasize the main takeaways from this quarter results.

First, we delivered solid results with net income of 1.13 billion shekels and ROE of 13.7%. Second, our cost-income ratio dropped to 44%.

Credit continues to grow at a healthy rate of 3.4% quarter-on-quarter and 8.9% year-over-year. Core Tier 1 equity remained stable at 10.5%, which allow further expansion next year, stable asset quality metrics with NPL ratio of 0.7%.

The CAL sale is likely to boost our 2026 ROE by 1.2%, while stressing our Tier 1 ratio by 0.6%. Lastly, given our continued strong performance and the confidence we have in our ongoing profitability, we announced a dividend payout of 50% of net income, reflecting a gross dividend yield of 5%.

With this, I finished and would like to open to Q&A.

Hi there. Thanks for taking my questions.

I just have two questions, please. The first is on AUM, specifically for your small businesses section.

There was a notable jump in AUM quarter-on-quarter. Would you be able to give a bit more color on what is actually driving that AUM number, but then also what's driving the increase in the third quarter?

The second question is on mortgages. Again, it was a really solid quarter in terms of growth in volumes, but how should we be looking at that number in the context of the sector data, particularly like the declining of new home sales?

I guess my questions are what drove the higher mortgage volumes this quarter, and then how should we think about volumes going forward? Thank you.

I didn't get your first question, but I will answer about the mortgages question, and then maybe if you can repeat the first one. What's happening with mortgage, as you understand, the real estate sector in Israel is at the moment is it's not moving too much, but most of the mortgages that been sold this quarter the last quarter are one of the houses that were bought two years ago.

There's this model in Israel when you pay 20% in advance and 80% just when the house is finished. Most of the people that bought houses about two, three years ago, they took mortgages this year.

What you see now is movement of money of the houses that were bought couple of years ago. I didn't hear your question the first question, I didn't understand the question.

The first question was on assets under management, AUM, particularly in the small businesses segment. There was quite a notable jump in AUM quarter-on-quarter.

I just wanted to ask what actually drives that AUM number and what drove the increase quarter-on-quarter?

We don't see something special about the small businesses. It's part of our strategy, we really focus on that.

I can't say there's something unique in that. It's just our focus on this sector, if I got your questions right.

Perfect. Thank you.

Thank you.

Hi, thanks for taking my question. Sorry if this was asked already, but how do you see dividends going forward in relation to the Bank of Israel announcement on the easing of restrictions for dividends?

Sure. Of course, we had a discussion about it in our board, and what our thought and our decisions to be consistent in the way we pay dividends.

We thought it's better to keep the same level of dividend and not changing it every quarter. Therefore, we chosen to pay 50%, and we plan to do it of course to keep the same in the future.

Got it. Regarding expenses, aside from the divestment of CAL, do you see room for cost efficiencies in other areas?

Yes, of course. As it's part of our strategy to improve our efficiency, we doing it both in bank, and there's addition in Mercantile is also working on that.

We're also examining what can be done together, Discount with Mercantile. Of course, also in IDB New York, there's a new management team, and they're working on new strategies which will emphasize efficiency.

Great, got it. Thanks, that's it for me.