Good morning, everyone. My name is Paweł Bednarz. I am Head of the PR department. May I welcome you to the conference devoted to the presentation of Alior Bank results for the third quarter 2026. In the first part of the presentation, the Management board will comment on the financial results. In the second part, there will be a Q&A session. Now, I hand over to Piotr Żabski, the President of Alior Bank.
Good morning, everyone. May I welcome you to our results conference for the third quarter. Let us move on and present a few slides to you, a summary at the beginning, just to tell you in a few words what is the result of these financial data, and then a few words about business slides, the retail and the commercial division. Marcin will tell us about the risk later on, and Zdzisław about financial results.
Finally, you will be able to ask some questions, which you are cordially invited to. As I mentioned, a handful of figures to start with. If I were to sum up in one word the previous quarter, the third quarter, it has been a very good quarter. The one where we again delivered the promised parameters, the ones that we promised to ourselves and to investors. The first important figure is PLN 1.52 billion in revenue, which is last year's level. In spite of interest rates going down, we maintain a stable revenue level. Net profit, PLN 473 million. There was a considerable pressure regarding the profit result, touching upon the whole of the sector, higher taxes, and legal risks, for instance. What I would like to draw your attention to is the part on the right-hand side. As you remember, in our strategy, there are two pillars.
The first one are on the right-hand side. The increase of the scales of our operations. We are growing consistently as far as mortgage loans are concerned. They grew by 43%. New sales to retail customers generally rose by 15%. 7% was the rise in the relational retail customers, and we will tell you a bit more about that later. We now have 1.8 million of those customers. 20% growth of the mobile app users. That is one of the greatest in the market, which makes us very happy. For instance, what is also good is the growth in the commercial sector, and specifically the leasing sales. All in all, this is perceived by the market and appreciated very well. Another rating agency raised our rating level to an investment-level rating. That was by the Fitch Ratings.
Soon there will be Eurobonds issued, so that should be conducive to our plan.
As far as the costs are concerned, we are maintaining the cost discipline, which allows us to provide our results in a stable manner. I would like to draw your attention to two aspects. Marcin will tell you about that in greater detail. NPL went under 5%, which is the first time ever, and we assume that this will be a steady low level of NPL loans. So this is the first time it went below 5%. Just to remind you, the consequence of that is that we are now able to pay out 75% of our profits in the dividend, assuming, of course, the regulators' provisions. An important change is, and that is very crucial, it is a milestone in our bank. We promised in the strategy that we will make the NPL stable.
We will be able to pay out a greater level of dividend, and that has happened. What I would also like to draw your attention to is the figure at the bottom, 5.17% NIM. You have access to data, and that is one of the highest NIMs in the market. We will discuss that later on as well, but what we try to do is to sell at the levels that we are interested in. We do not get involved in all kinds of competitive deals. We are only interested in the kinds of sales which are profitable to us. In comparison with our banks, our NIM level is at a very high level, 5.17%. This may be at the cost of some sales, but as you can see on the right-hand side, the new sales levels are looking good.
The other parameters, according to the strategy, and harking back to what I mentioned at the beginning, we are providing what we promised. Further on, just a glance at the active side, assets grew by 11%. 70% of our assets right now are loans. The remaining part is other elements, about 70%. That is the basic activity. The performing loans of that is PLN 67 billion. 6% growth year-on-year. Deposits grow better than the loans. It is an 11% growth year-on-year. What I would like to draw your attention to is the bottom right-hand side, the two-digit growth in terms of assets under management of Alior TFI. In general, the investments that I can tell you about later, they contribute very much to our results. The remaining parameters like the NPL and others look quite well because the figures speak for themselves really.
What I would like you to note is two types of operating activities. Firstly, the retail customers, which is our largest business line, which is about two-thirds of our business portfolio. One-third is the corporate customers. On the left-hand side, the mortgage sales, third quarter slightly worse than the second one. There was a drop in the markets. We tried to maintain our levels, which means that we sold less, but these are still record sales levels for us. We grow our share in the market, and our share in mortgages is larger than our share in the sector as a whole. That makes us very happy. On the right-hand side, the other part of the loans section, the non-mortgage loans, which are installment and cash loans. We noticed stability of 4% growth year-on-year.
Nevertheless, to come back to what I said at the beginning, we are quite conscious in not prolonging certain contracts and installment loans because for us, they did not provide enough of the parameter structure for profitability purposes. There is a drop in installments, but a growth in cash loans, which is good because the cash loans provide better margins than the installment loans. As for the installment loans, we still can attract customers to this channel, and we do use them quite effectively. I think the change has been good as far as the structure of the non-mortgage loans are concerned. As far as the balance sheet is concerned, it grows at a slower pace than the sales, but it keeps growing. 7% growth year-on-year. What is at a faster pace is the loans for real estate. The consumer loans grow at a slightly lower pace.
As far as deposits are concerned, on the right-hand side, there is a 15% growth year-on-year. What makes us happy, almost each of the parts of these enjoys a considerable growth, especially the financial instruments, as you can see, and the investment funds. This translates directly into our promise, where we stated that the revenues of this type would provide the stability vis-à-vis the NPL. As for our strategy, we mentioned relationality very strongly. Alior Bank is viewed as a consumer finance bank, and we said that we also want to maintain the relationship very well. As you can see in the top right-hand side, you can see the growth of relational customers. We have our own definition, so perhaps it may be hard to compare with other banks in the market, but our customers must meet certain criteria to become relational customers.
This base of customers is growing. There is a 7% growth year-on-year. There are some reasons for that. Firstly, we are selling the transactional RORs very well, and the customers who started such an account with us start transacting with us. The last quarter has been very good in terms of sales. We have changed our offer, we have changed the segmentation, and this provided results. We now have 46% growth year-on-year. In the right-hand side, we can also see the use of the mobile channel. It is quite new. It has been in the market for the past year. It does not have all the functionalities as yet. We have had some problems with the stability, but now that chapter is closed, and we can say that the growth level is quite impressive.
It is one of the highest levels of dynamics in the market as far as the mobile app users are concerned, a 20% growth. These installment customers, which I mentioned previously, start using the app more and more. They have more and more reasons to do it, and they do it a month on average by logging into the app. These customers are then transferred to the top graph in a very active manner. This was part of our strategy, to use the leverage of the installment customers in order to provide them reasons to stay with us to become relational customers. So this flow to the upper graph is continuing. The customers are banking with us. You can see that on the right-hand side, 44%. The market shows slightly higher results, but that is a challenge for us.
That is how we perceive our potential, which we can use. The parameters in these slides, I am sure, will be even better. What I mentioned previously were investments. That is an important part for us. The balance grows in a two-digit way, 18% growth year-on-year. What I would like to draw your attention to are these lower figures on the right-hand side. 57% growth of IKE accounts, with 20% of the investment funds results, 177% growth in the sales of structured products. This supports our efforts to be very aggressive in terms of commission results. These commission results keep growing in a very stable way. We have seen a 54% growth year-on-year. Which is a considerable contribution of the brokerage house to the commission of the whole of the bank. I mentioned a few words already about the app. The app keeps changing.
We haven't had a month where new functions were not introduced. It is based on a new set of technologies. It's got a new layout. The customers can buy investments via the app. A number of changes have been introduced, which is appreciated by our customers. 4.7, 4.6 is the rating that we receive. As for the first stages of the functioning of the app, which is just a year and a bit, these are indeed good results, and we're happy that the customers are appreciating our efforts in this regard. Let us move on to the second leg of our business, which is the business customer. That is one third of our operations. The balance is quite stable, but the structure is changing. In the middle, you can see that the loans are going down. We still have the NPL pressure in the burgundy part.
Marcin will talk about that in greater detail, but the leasing part is growing. That's 16% year-on-year as regards the balance, and we're happy about that because of the NPL, it's difficult to grow, but we offset that by using the other part, which is leasing. The growth in leasing is quite impressive because it's much higher than would result from the growth in the sector as a whole. On the right-hand side, the deposits of business customers remains at a stable level with a 2% growth. We do not want to get into the kinds of relations which are not profitable for us. That is why perhaps the dynamic is not as vigorous. The whole of the business sector is under a lot of pressure, you realize that very well. That is because of the margins, of course. Moving on.
I mentioned already the middle part of the balance. There are considerable changes there. The yellow part on the left part, the NPLs, went down by 23%, and the burgundy part grew because of that. We already had the breakthrough where the balance goes down, and we believe this will be a stable situation with the potential for growth. On the right-hand side, we also have a loan balance broken down into segments. The lower bars, namely the micro part, is still under a lot of NPL pressure. There, the loan policy does not support a lot of dynamics in sales. The mid parts, namely the SMEs and the large companies, are stable. Slightly better in the large sector. In leasing, this is where we've really pushed the accelerator pedal, and we grow strongly there.
The structure of this whole sector is improving vis-à-vis the NPLs and also going into the direction of more profitable products. As far as the new current accounts are concerned, there's been a 3% growth year-on-year. As for the leasing itself, there's been a good growth, better than the market levels. On the lower bar, you can see a diverse structure as regards the risk and profitability. What makes us happy is a good situation in terms of the vehicles above 3.5 tons. Machines and equipment is also on the rise. This activity in this field is quite satisfying. Finally, a few words about what happens apart from the business operations. We want to refresh our brand. That's what we said in the strategy. We want to attract new customers, younger customers.
Hence, we support, for instance, music festivals, music events, or the gaming sector, because that's where our future customers are. For instance, we've been present at the Inside Seaside event as one of the main sponsors. We receive a lot of good feedback because of that, and the structure of the customers that get in touch with us is improving thanks to activities like that. On the right-hand side, what I mentioned already, the change in the Fitch Ratings, which is very important for us in the context of the upcoming Eurobonds issue. My colleagues will tell you more about that. We now move on to the credit risk and finance.
Good morning, ladies and gentlemen. As Piotr mentioned, the market perception of the bank has changed. Another rating agency improved our rating to BBB- with stable outlook. Our capital indicators are on a very good level, TCR 17.45%. When it comes to capital position, what's very important, we have a lot of surplus capital to grow further. Moving on to liquidity ratios, both ratios are significantly above regulatory requirements. LCR at the end of Q3, 254%. NSFR at 155%. As it's been mentioned, we've kept our word, and we went down with NPL below 5%, and we closed Q3 at 4.97% of NPL. The cost of risk accrued for three quarters is at 0.61%, which is also in our strategy. As we are informing on our meetings, the cost of risk in mid- and long- term should not go above 0.8%.
When it comes to NPLs, the basket three in absolute terms is PLN 1 billion divided into business and individual customers. As you can see in the business customer section, we are going down to a single-digit ratio. At the end of Q3, NPLs in this segment were at 10.61%. When it comes to COR percentage segments, in business segments, we observed a negative value due to recovery from securities and from non-balance positions. Thank you. I give the floor to Zdzisław.
Thank you, Marcin. We'll now discuss financial results in more detail, starting with revenue and the most important part of our balance. As Piotr said, we are happy that revenues are resilient to decline in interest rates.
If you look at the left-hand side on our slide, and we will include the correction at the bottom of the bar, PLN -153 million as a result of the Court of Justice adjustment. If we added that, if you compare three quarters of 2025 and 2026, the results are quite comparable. On the right-hand side, we have the same information broken down into quarters. If you compare year-on-year, we have a small decrease, but this includes decline in interest rates. If you look at quarters two and three of this year, you should also include the correction of PLN 153 million to have a comparable revenue. In Q3, we have in gray PLN -40 million. This is also our reserve for legal risks.
If you include that, the revenue quarter-on-quarter are growing. Net profit, if you compare the accrual values, it is affected by higher tax rates. It is the biggest difference of PLN 100 million almost. We also corrected the adjustment of PLN 153 million. If we combined these two, we would arrive at PLN 1.340 billion profit, net profit after three quarters. If we move to the right-hand side, we will see the numbers broken down into the quarters. If you look at Q2 and Q3, if we correct it, if we adjusted Q2 by PLN 96 million, we would see that the profit in Q3 grew by PLN 10 million, which is equivalent to 2%. The difference between Q3 2026 and Q3 2025 results from income tax difference. Now we have details of our profit and loss statement. We have -1%, but the values are very comparable.
If you look at the commercial results and if you include all the reserves for legal risks, then we will arrive at a similar level if you compare Q3 2025 and Q3 2026. The interest rate result is a little better. We have fee and commissions income, very good results. Costs are increased by only 2%. General administrative expenses grew by 2%. Much higher costs of risks compared to Q3 2025. Tax was higher by 44%, which translated into PLN 473 million net profit. If you look at the cumulated comparison of year-on-year, we should add PLN 153 million adjustment due to the Court of Justice decision. Then if we added that, the results would be similar in 2025 and 2026. Cost to general administrative expenses is also at about 2%, which is below inflation. Cost of legal risk is higher, but in accrued terms, the difference is small.
The biggest difference is of 31% due to income tax, which translates into the difference between the first three quarters of 2025 and 2026. So tax plus adjustment due to the Court of Justice decision. Net profit results are very good. Cost income is at 37.9%. COF is at 1.73%, and ROE is at close to 15%. The interest income, there is a growing trend, so the growth of our business is compensating for the decline in interest rates. In Q2 2026, we have this adjustment due to the Court of Justice decision. If we include that, we can see the increase in interest income. On the right-hand side, we have numbers broken down into income and expense. As you can see, we are adapting the expense to the market situation. The revenues, interest income is going up, especially on the loan part.
One of the most important parts, something we underline a lot, we are a sector leader when it comes to NIM, net interest margin. Last quarter, as we presented the results, we were at 4.5%. Going back to the adjustment, the dotted line shows what would happen if the adjustment hadn't happened. So we are at solid above 5%. So 5.11%-, 5.17%. I believe that by the end of the year, we can achieve around 5%, 5%+. As Piotr mentioned, we are trying on the one hand side by the development of our business, by selection of assets to make them profitable. On the other hand, by the correct cost management, which allows to which makes all these things translate into very solid net result.
If you look at L/D ratio, the number of relational clients who use our services, whose money is deposited in our accounts, means that the L/D ratio is going down. It is now at 75.5%. When it comes to cost-income ratio, I can see the chart. It tries to mimic a more advanced geometry, but the purple color, which is reported, it shows what was reported at the beginning of the year when the BFG fund were forced to deposit it there. Then we are going down faster in other quarters when there is no additional cost attached to BFG, and the yellow is the C/I normalized. It is a small growth, but I will discuss that in a minute. Commission income, as declared in the strategy, we are trying to make sure that this position reflects services we offer to our customers.
We want it to grow, and there is a space for it to grow. As you can see, year-on-year, we can see PLN 40 million and 6% growth. If you compare quarters two and three this year, we are also growing. Most important factors that influence the growth is the activity of our broker office and our activity in TFI management. We can see a lot of growth there, and also due to insurance activity, we have growth in quarter-on-quarter and year-on-year. Costs, the last slide, the last major component of our results statement. As declared, we keep our word, year-on-year growth is at only 2%, + PLN 26 million. If you deduct the BFG part and focus only on material and personal cost, you will see a very moderate growth, which follows the inflation.
If we look in quarter-on-quarter terms, the growth is a bit greater, 4%, but it is easy to explain. The greatest increase is in personal cost. We are close to the end of the year, so we are making reserves for variable costs. So our sales force is achieving good results, so we are making reserves for salaries. In material costs, our infrastructure is growing. Its cost of marketing, cost of our development projects, they all contribute to the increase in material costs. What can we expect by the end of the year? As declared, we sustain it. We will try to keep our costs in line to make sure that they do not go above inflation. Thank you very much, and over to Piotr.
To make a coda of our statements, we would like to draw your attention to the fact that our activity is in line with our strategy, something I want to underline. Secondly, business activity, increase in sales, keeping margin in check, keeping income in check, all of that is destroyed by the decline in interest rates, especially we are particularly happy in the KB sector. We are leaving historical problems behind. We are starting to grow on stable basis. The credit risks are going down, NPLs are going down as promised. The costs of functioning are in check, and all of this contributes to our balance sheet and our ability to generate a very good result with good C/I is visible, as you can see on the right-hand side of this slide, which makes us very happy. Let me finish by saying it was a good quarter.
We are not slowing down. We are looking forward to another quarter. There are challenges, but as you can see, we are handling these challenges quite well. I'd like to thank you, the whole Alior Bank team, for the last quarter, which was really good. This is where we'd like to finish when it comes to our message to you. I'm sure there will be a Q&A session, so we are at your service.
Thank you. We invite you to participate in this conference in active manner. First question, how should we treat the adjustments due to the Court of Justice results when it comes to defining the interest rates? Should the result be adjusted or should it be treated as something that will be corrected in next quarter?
It's an adjustment of future cash flows, and it's a one-time event. When it comes to Q3, there is no disturbance, no deductions. So it can be treated as a pure basis when it comes to projecting our interest rate income for future quarters.
Another question. Could you explain what was the reason for the negative value of other operational costs in Q3? What is the source of the negative result and the rights run rate? Is PLN 78.6 million related with the impact of the court decision, or is it a separate position?
It's a separate position, and the main factor that increased our operational cost in Q3 was the PLN 68 million reserve for SKD. It's a result of a larger number of cases coming into the bank.
Another question, what is currently the susceptibility of the income result? How affected they can be by 100% change in interest rates?
It's about PLN 190 million if it was a single time event.
Another question, what was the difference in the bond valuation in amortized cost vis-à-vis mark-to-market?
It's PLN 60 million.
Next question. In the coming time, are you going to optimize the structure of regulatory capital?
Of course, we will try to optimize our capital with another layers, but the amounts and how it will be distributed in time will depend on our growth rate, the generated profits and dividend paid, and consequently, the profits maintained in our assets.
Thank you. Next question. What are your expectations when it comes to the dividend in 2026?
According to what I mentioned at the beginning of the presentation, if we were to use the regulatory requirements, we would have the possibility to pay out 75%. But let us wait for the final recommendations of the regulatory authorities. We promised in our strategy that we will have the possibility of paying out 75%, and we now have that possibility, so let's wait for the decisions.
Thank you. Next question. What about the SKD reserves? Are they set up at the level of the portfolio or on the basis of individual assessment of each case? What is the possibility of covering the worst-case scenario?
The reserve is set up at the level of the portfolio, and to specify it reliably is perhaps too early at this stage. We are at the beginning of the road, with a view to obtaining the final ruling. It is difficult to assess at this stage to refer to the second part of your question, but the reserve at this stage is adequate to what we are observing right now as far as the number of cases flows in, and the court rulings are decided. Just one word of comment. If you look at the whole discussion about the SKD, the sanctions of free bank loan, it is very dynamic. The President of the Office of Competition and Consumer Protection lost any possibility to impact the new law. There was a decision made where the approach to the SKD issue has been changed.
The ownership of the issue is in different hands. There is a lot of dynamic in the matter. Picking up on what Zdzisław said, it would be extremely difficult to estimate the specific reliable amount at this stage.
Thank you. The next question, what was the main reason of the acceleration in the number of relation customers in the third quarter.
I mentioned that already. We created a new offer of savings accounts. We created a new segmentation. There wasn’t one specific event which impacted the acceleration. It was rather the accumulation of all number of activities. The change in the presentation of our products, the changes in the access to customers, new functionalities and the mobile channels. All these brought results. The segmentation certainly supported that. This new approach gave us a real boost.
Thank you. When do you expect the beginning of the recovery in the consumer and corporate loans sector?
As for consumer loans, 26% of growth in the cash loans is very good. So no need to rebuild anything. We just should continue that. As far as installment loans are concerned, we would like to see the profitability of the product at the right level. We are not going to enter into non-profitable types of cooperation.
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Well, the decision is about the Management board. It brings in changes regarding the method of calculating remuneration of the Board Members, but also it gives the Management Board Members the option mitigating these changes. That is what the resolution o f the General Meeting is
The colleagues in the Management Board were nominated as part of a competition. We came here b y leaving the previous jobs that we had. We brought in our professionalism, our knowledge, our skills. I want to ensure everyone that today it is not possible that our professionalism can change. Our intention has been and will be to increase the value of the bank, which you noticed in the course of the presentations, which we have seen. We have a business agenda. Events of this type will certainly not change our approach. We are in steady contact with the Supervisory Board. The Supervisory Board, as a very professional body wh ich has the aim of growing the bank, is dealing with this matter in a way which will not in any way b ring disturbances to the way the bank is functioning.
I will therefore stress that we have been and will be professional in our management activities with the aim to grow the bank.
Do you expect changes P2G?
Imposed by the KNF, the regulatory authority.
This is not our decision, but if you look at this particular payment structure, it seems from our simulations that there should be a reduction.
If there are no changes in the calendar, this should take place in November.
Thank you. Could you comment the approach of the bank to securitization and any possible plans in this regard?
Right now we don't have such plans. We do, however, look carefully at the balance sheet and the capital requirements, so perhaps this will be possible in the future.
What are your expectations regarding interest rates, and how do you assess the possibilities of the interest margin and interest margin result in the next two to three quarters when interest rates remain stable?
First of all, we expect the maintenance of the current level of interest rates in the subsequent quarters. That is our working assumption. As regards the interest margin reduction, from the business standpoint, they should focus on, say, 5% or maybe a little more. But we are planning the considerable bonds issue. This will increase our balance sheet and will certainly impact. It will slightly water down this interest margin.
Can you share with us the statistics of the free credit sanction rulings in the third quarter of 2026? What percentage of the cases has been won by the bank?
Well, the statistic has deteriorated slightly, but we still win more cases than we lose. That is the general market trend.
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The next question. What could you say about the additional cost of risk in the business sector in this quarter?
There's been a few factors involved. The current loan policy, which impacts the general level of the portfolio by improving its parameters. We also had considerable recovery from guarantees and recovery from receivables, which were already written off. So this recovery brought in a positive adjustment.
The next question. What was the reason for the drop in the installment loans in each and every quarter of this year? Is Alior Bank currently a leader of the installment loans, as was envisaged in the strategy?
I already explained that and let me repeat. We decided not to extend certain contracts because we considered that the profitability was not sufficient. This is our conscious policy. We are going to renegotiate certain contracts for the next periods, and we will see how it develops. Our intention is not to sell at any cost where we do not get the margins. The proof of that is our net interest margin, which is the highest in this sector. We would want to maintain as high a profitability level as possible.
Thank you. How does the bank assess the chances of the strategy for PLN 7 billion revenues next year?
That is a good question. We conducted our internal analysis. If our income was cleared up from the one-off events like the CJEU ruling, for instance, the legal risk in general. Also, what we assumed in the strategy was that the interest rate drop would be later. The interest rates went quicker and further down than we assumed. Our projection for next year is at the level of 96% as far as the implementation of the strategy is concerned. There were two events which we did not foresee in the strategy. The legal risk and the scale of it, and a greater change on the micro side in the negative direction. If we did not have these events, we would be right on target. We gave you the nominal values.
In the banking sector, the interest rates level and the trajectory of them going down or up has a considerable impact on revenues generated. This is the question that you can ask to any bank. If you look at the position where we were when we announced the strategy, and if we assume that the trajectories which were envisaged there would be maintained, then we would have the result that we envisaged. But considering the current situation, we can be confident in achieving the level of revenue that we have declared.
The bank strategy mentions an increase of insurance policies non-connected policies to grow sevenfold by 2027 vis-à-vis 2024. What is the current level of the premium compared to the comparable period in 2024?
The non-connected policies is growing, but we have some problems in terms of the products themselves, and that is why the speed of the increase is not as we would wish. However, let me note that the insurance premium level on our side has grown by a few dozen percent higher than we envisaged in the strategy. So where the product is not what it was expected to be is being set off by other types of insurance, and the general result is positive.
What was the share in the new sale of mortgage loans breaking down into the changeable and fixed interest rate?
There's a lot of dynamic in that area. Right now, we have a mix of the fixed and the variable rate, but in most cases, we have a fixed interest rate. But as for the share of those types of interest rate, we would have to go back to you with that.
Do we have another question? Yes. Can you see or do you expect in 2027 a positive impact of AI on operational cost?
It's very complex matter because we've started with our strategy. We've modified our strategy to include AI strategy, with a permission from the Supervisory Board to increase expense on that. But as you can see in the sector, there are no spectacular implementations that would dramatically reverse trends in the market. Right now, we have over 20 AI solutions operating in Alior Bank. We are scaling them up. But you should also consider that in order to scale up AI in a bank, it's not the same as in other sectors. The strict rules that we must follow and to build the platform for scaling requires a lot of expense and time. So we can see benefits. There's over 20 solutions right now. We are working to scale them, and the forecasts for coming years do include benefits from this technology. Certainly, in next year, they will occur.
We are at 76% on the fixed rate.
More questions? I think we've exhausted the pool of questions. If there are any further questions, please contact Investor Relations office or the Press office on behalf of the Managing Board t hank you very much. Have a good day.