Banca Transilvania S.A. (TLV) Earnings Call Transcript & Summary

[Operator Instructions] Ladies and gentlemen, thank you for standing by. I am Sabrina, your [indiscernible] call operator. Welcome, and thank you for joining the Banca Transilvania conference call to present and discuss the 2022 Annual Preliminary Financial Results Conference Call. [Operator Instructions] The conference is being recorded. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Omer Tetik, CEO; Mr. George Calinescu, Deputy CEO, CFO; Ms. Luminita Runcan, Deputy CEO, CRO; and Ms. Diana Mazurchievici, Deputy Director, Head of ESG and Investor Relations. Mr. Tetik, [Operator Instructions]

Hello. Good afternoon, or good morning. Thank you for joining us for presentation of end of 2022 numbers. I guess for everyone, it was an interesting year with a lot of challenges out of, let's say, more swings than expectation modifications. But at the end of the year financially, commercially, as it happens for most of our other peers or also our customers, it has been, at least for the bottom line, a good year, still some of the challenges that are being carried over to 2023 or to the years ahead. We are sorry that besides maybe energy crisis inflation or other major economic issues assets, speaking a lot work and hope that will be a quick [indiscernible]. Our presentation is already at the website for in case you want to look at now or later. But I will actually use the opportunity also starting maybe the end of our presentation because 2022 was the 25th anniversary of BT listing at Luka stock Exchange. And indeed, it was an interesting journey for the first 25 years, but that the next 25 will be fleet as packaging and those with the team and it team that the whole BT family, our committed not to be supplant our shareholders, our customers, all stakeholders. And we are, as you may recall, we are one of the first 2 companies include in the feed sales growing equity index, the most traded sharing in the stock exchange and we have the best vector score an 8 out of ten. Thanks to our Investor Relations team led by Diana doing a great, great job there. I would try to give a short brief about Romanian economy, market development, definitely as part of the European Union and the Central Southeast European country, our economic trends for the inflation to interest rates and social care in these follows European general trends. Romania had a strong private consumption and had a good usage of European funds. Thus, we have seen that of in Romania, still the expectations of GDP growth are positive and not much of recession or taking to retain discussion for 2023 to which we also agree is that high incoming amounts of resilience and recovery funds and the strong corporate and investment growth that we have seen in takeout 2022, which continues also in 2023. Being [indiscernible] the investment level much desired, we have one of the most challenged hunting in terms of EU convergence. But on the other hand, when we look at Romania with the highest per capita [indiscernible] huge energy resource and also in our population, we see quite a big potential for the new bigger than what we so far. Fossil prices have been increasing quite strongly in the rest of the world, but still at a lower pace as the euro start, it was 12% as compared to our PM -- or even countries, sorry, which were at around 15%. And we have seen also Romanian consumers changing attitude than we were in the start expanding maybe let we started accessing consumer loans slightly decrease in fact. But on the other hand, both the high saving ratio of population, high liquidity position of the bank and higher transition of the banking from the financial sector helped us to, let's say, break the first impact of everything that happened during 2022. The banking sectors have seen strong growth in about 15% loan growth and mainly supported by the corporate lending. And this was a strong acceleration that we were all looking forward to see. Also, we have seen that the deposits start continued their growth, but at a slower pace, which impacted loan-to-deposit ratios of all banks slightly increasing, definitely housing and small company, they [indiscernible] into their savings when they have to pay higher [indiscernible] bank loan installments of higher supermarket shopping invoices. And the good thing is that this high saving ratio is especially as compared to the previous financial crisis in 2008, 2009, has remaining the Romanian economy in general to maintain a very low NPL ratio. And we have seen even in the last month of the year, NPL decreasing throughout the sector. This the [indiscernible] of the market and the, let's say, clarification of expectations, increasing of the sentiment, both on the companies and in household level -- we think that 2023 is more open to, let's say, positive surprises than the negative surprises. National Bank of Romania has been the main pillar of managing imbalances in the economy. They have been contractually increasing interest, but recent today, we sign also that the interest rate factor is above trend, if not only branded. But also a reversal of the rate, they don't see really cool. The government was mentioned a bank mentioned a couple of times that it will happen only the inflation will reach the benchmark interest rate levels. The 2 ecom funds from European Region, including the giant recovery program, but also other programs plus relevancies increasing from the product when we had to maintain a very good foreign exchange result amount and also keeps a very stable exchange rate. This is also one of the main target tonation Bank of Romania keeping the, let's say, valuation or depreciation of running level at minimum or 0 level so that they will also help the man companies to assess modernization investment capacity at lower cost. Then come back to BT itself. We -- as we said at the beginning of last year without moving that about on we said that we are here to land the idea to support [indiscernible] population, but we want to lead remaining economic growth is what we have done. At the end, our [indiscernible] loans increased by 30%. Our assets increased by 7%, supported also by the cost growth from customers by 13%, with a decreasing NPL ratio. The evading of NPL ratio, we have reached 2.4%, 244 basis points. And though our interest expense, cost of funding increased almost fivefold during the year. Our last current account-based customer relationships and increased favorability helped us to increase both net interest income by 23% and also net fee and commission income by 24%. This is another year that we are delivering above [indiscernible] increase in next year and commission income. Although last year, this time, I was mentioning that we know -- it will be difficult to deliver 20+ percent growth. We see that, I'd say, higher number of selling accounts, higher number of customer relationships and continuous lending activity help us to grow this part of income generation results. Our net profit is for the bank to get EUR 2.17 billion 78 million, which with 40 basis points cost of risk and 25% slatten 5% return on eternal equity. We have -- we do not consider ourselves at the best of our ship when it came to managing our cost, but inflation hit further adjustments and some unexpected, let's say, cost increase our cost-to-income ratio above our tension level, still at 49%. We consider that our cost-to-income ratio is a good practice in the European market. And that we come back to how to be challenge income structure. As you were mentioning, and you will see in the presentation, I guess it's from the Slide #13, there is a very strong correlation between our deposits or current account growth versus the net fee and commission income. And also, although we were hit as all the banking systems and financial sectors participant by the increased cost of funding, our lending activity helped us to maintain almost 200 basis points net interest margin. Our still 34% of our bottom line coming from mid-interest margin and supported by trading income and fee and commission income. In regards to the loans after the last financial experience households and SMEs, they prefer to be named even at the increased cost in local currency, so they're well placed -- and only 12% of our loans to households are in currency. And companies we have seen last year an increased preference towards foreign currency loans, which pushed the foreign currency total lending, slightly above 30%, but still you see that if you look at the business lines and the incoming funds that we can also consider we are naturally hedged because over a quarter of depo companies are in foreign currency and the remaining companies, IT, automotive, agriculture, they are selling their good product uncertainties at the foreign currency units. When it comes to risk to Monitor fiscal. I would say that our NPL cavitation is 15% as forever definition is quite strong. If you look at the 19 NPL ratio, including the mortgages relative coast 125%. And our NPL ratio decreased to 244 basis points with P90 NPL ratio, 150 points, which gave us this way sound solid 41 basis points cost of risk Definitely, we slower expectations of budget. And I would say that when you look at the presentation, you will see also distribution of the statin provision and total loan book and definitely our optimist prudential approach has helped to maintain a high capital ratio of 11.6% and at the end of year, definitely right about the main required loan -- last year, on the challenge of a many banks on the M requirements coming on to bad times and terms. But I think July the first, let's say, required level was 23.4%. We have managed to meet the criteria, and we will continue our efforts here. This is also one of the reasons swell discuss later in terms of profit capitalization and dividend. We will just planning to diversify our capital structure also by loan programs and maybe some of the [indiscernible]. -- in order to assure that meeting, I would say, sometimes very high potential standards of local and international regulatory purchases. Coming to sustainability. The efforts are being led by -- again, by the Chief Executive but also Diana here. I will let Diana to say a few words about BT's recognition sustainably. Please. Go Diana.

Thank you. The most important thing I would like to mention is that 2022 came with independent recognition for sustainability as workforce by [indiscernible]. We have received very good ratings from tax in terms of PT risk. -- and some [indiscernible], which cost us among the 50 position in the bank worldwide. Another recognition came in terms of our good traffic for sustainability reporting with gold level recognition for our 2021 sustainability report as well as leadership in climate financing granted by IFC. We will be presenting a lot of ESG data points in our sustainability report 2022. But in short, the bank's impact financing reached BRL 1.6 billion in 2022, fairly split between companies and a intermodal mortgages. I will stop here and invite to look after our seasonability report, which is going to be published on.

Thank you, Diana. We will be discussing maybe although investing more and more, probably, we will be discussing less about this position because we came already embedded in everything that we do. It's not a separate efforts, followed by a separate group of people or departments in BT, both our internal processes and customer-facing apps or interactions that digitizing very strongly. And I will say that although I'm definitely bad, I would say that we are the practice in terms of this transition in Romania. Beta continues to be the most popular financial app and the user numbers are growing exponentially. -- almost 80% of our customers were the [indiscernible] last year, we are now at 85% of our customers digitalize and from online account openings in incorporates to all kinds of payments financial-type personnel or company financial management in wayfactoing into different activities fully online. And we see appreciation of the customers by this can be similar due to the fact that we are increasing our number of customers at a pace more than 1,100 customers per day in Q2 2022. And we go back to the, let's say, inactive accounts, we're also trying to reactivate [indiscernible] that. We are also very, let's say, proud of the results of our group subsets. All of them have been delivering strong results in their segments within our expectations and deletive numbers, contributing both to the bottom line to the profitability to our cost, let's say, customers helping us to meet the customers' needs. But I cannot mention especially best asset management, which became in 2022, the leading assigned in Romania, in a data environment. And this is something along with the key partners the pecan which is a segment that we will continue to invest in leading out, let's say, acquiring 2 more leasing companies driving gain. We are one of the most significant players in the market. [indiscernible] has launched a new concept of high, very high and already in a number of interactions and customer flow is a couple of times higher than our initial plan that planning to expand it geographically in Romania, the concept of this year that we will have some definite investment done in terms of what the customer group. And we also continue in full pace the project of Idea Bank, where we will have the first fully distant time only online banks in Romania, license in Germania. One of key executive members, [indiscernible] the CEO India Bank now, and she will the project very successfully. We hope that at the end of this year, we will be launching our new mobile app and customer proposition debt. Thank you very much for listening, although I wanted to continue with you shortly to see the [indiscernible] or an minutes. So I would like to leave some time for Q&A or collect from the company or organized company will help us with logistics now.

[Operator Instructions] The first question is from the line of Thomas Unger with Erste Group.

My first question would be on your capital and decision to retain most of the result of most of the earnings of 2022, no dividend proposal. If you could just walk us through the decision process I appreciate it. The second question is on the capitalization, the cap ratios in Q4, including profit, excluding profit no matter they declined in Q4 alone? What is the explanation for that? I'd like to know that. And then on the P&L and the importance and significance of the net interest income, you mentioned that it grew strongly in Q4. What is your expectation going forward? You mentioned that the interest expenses are rising sharply. Do you assume the rising interest expenses to neutralize income growth in the coming quarters? And in which quarter that do you see the peak for the NII? And then lastly, if I could ask one more question on loan growth. What is your expectation for 2023. It slowed down visibly in the last quarter of 2022.

Thank you, Thomas, for your kind words. Coming back to maybe to the last 2 questions, more forward-looking. And I said, I will not be able to give you too much insight because this is the information we should share with all the shareholders [indiscernible] teleconference. But what I can tell is that in regard to the interest expenses rising sharply in the previous teleconference call also, we had mentioned that we in the Macao the first big just remitting the first banks increasing the deposit rate in the market. we were quite aware of the impact on our financial numbers, but core emerging markets, most of pulp management having and also board numbers standard experiences. We wanted to make sure that we liquidity position will not be affected. So we don't expect a similar growth from now on in terms of net interest expense. We have shown in a couple of weeks, you will see the budget proposals when we will notify for the [indiscernible] for the general shareholders meeting. So in terms of loan growth and in terms of financial performance, we are prudently optic further. We are assuming that Romania will continue slightly growing. -- still budgets, I would say, hosting strong loan growth and our liquidity position will be mentioned also the main salaried account plant in Romania and the main bank of SMEs most of encores gives us a huge pool of 0 interest bearing current accounts. This has been like our core deposits over 30%, sometimes close to 40% in our total liquidity position. So this will just assume to continue. That's why also I cannot tell you exact details which quarter it will peak or not, but what I can tell, and I hope that I'm not [indiscernible], but we see that it's probably in terms of the negative. And as also the benchmark index for retail loans, IRPC as being a 6-month gap [indiscernible] established. And now we see that the new rate will be out now [indiscernible] that's why we don't expect to decrease that. This is so far about before we inside. Hopefully, we can discuss more in detail after we announce our budget proposal and [indiscernible], which will be effort. In terms of capital ratio impact is partially the growth by growth restated assets, but also our -- and also, that has been a sale. -- we have been discussing about the reclassification of the previous portfolio, which we decided not to proceed it based on good as we able 8 months and different international IACs recommendations, debate. There are different facilities under discussion, different formats, even at Ecofin European Union levels, there are some proposals. We decided to see more clearly. There has been also some of the facilities due to [indiscernible] expiring in the at the end of the year, which impacted definitely our capital ratios. But dividend proposal is also more forward-looking, if I may say so. It had been I repeat a financially good year, but let's say the unknown impact of [indiscernible] crisis inflation, both [indiscernible]. There is also indeed a very strong recommendation from both local and entail opportunities. So it didn't create tension and also maybe lifting our loan growth that we want to pursue strongly. We have decided to oppose to our board of directives capitalization as part of the profit and delete to be put in the same earnings once I dominate it will be this year or early next year, whilst we have the comfort in terms of market trends, macroeconomic trends and numbers, then this is kind of a result, which can be distributed [indiscernible]. Also, every increasing annual requirements, as we have seen from many other banks as well to be set in the market, don't make sense as to kind of give up on free capital that we have generated from our internal resources and then going to the market and is not release volatilizing names over 10% in [indiscernible], although we see the interest rates are much lower. Still, we want to understand that we have unique old requirement. Economic conditions start improving. Our customer performance will be continuing strong times so far. And then we will hopefully come back to the shareholders its bank and how much of the [indiscernible]. This was definitely also position us in a good displace against the local and international activities. We are now good understand in Southeast Europe. We are not just a [indiscernible] bank, but mostly [indiscernible] banks got in Romania but also in this part of the region. We have our obligation to make a good example of ourselves.

The next question is from Laura Turiac of Alpha Bank Romania.

Hello, everyone. This is [indiscernible] from The next question is from Laura Turiac of Alpha Bank Romania. Context on your big results, I've got a few questions related to the OCI portfolio. I noticed that you have booked other reserves totaling EUR 2.6 billion even your equity position. And one Out of this, how much is related to the OCI assets? And if you could analyze how do you see -- how do you see this result going forward? And maybe -- or when do you expect a reversal of the current negative impact based on your estimates? And maybe if you could give us more details regarding the management strategy that you are going to apply in order to potentially mitigate the losses in the case.

Thank you Laura, land take also the impression that we have for last year, your questions will come to guidance guiding for us. But [indiscernible], coming back to the portfolio. I will start with your second question. The revaluation impact is the retinal hypothetical, let's say, impact because this -- it's an opportunity cost definitely because though most of the portfolio is being financed to all our investments are financed by customer funds and because of our 5 current accounts volumes "do it yourself" is not making -- on the other hand, because of a quite a low average ration every year a certain part of the success in part of the portfolio is expiring and being replenished at the rate, which we did also last year we will move onto this year. We don't have an active trading strategy. We don't consider ourselves an investment bank. So we have mostly get after investments that we cannot utilize the lending to customers we are using that. And as it seems alone the pressure on the saving that is lower. Romania has been very successful [indiscernible] the market in the last couple of months. So we don't expect, I'd say, another jump from here. It will cost [indiscernible] the last couple of months, we have been seeing a significant improvement in this position. As regards to OCI, I don't have a number we will update our presentation. I'll come back to you, but I don't want to have to be now with the numbers just out of my mind.

One more question, please. If you could disclose what is the average maturity of the OCI portfolio?

It's between 3 to 3.5 years.

The next question is from Robert Brzoza PKO BP Securities.

I'd like to ask about the provisioning outlook. I've noticed that you have slightly created additional macro overlays in the 4Q as evidenced by the rising Stage 1 provisioning. Does it mean that given that you had already accounted for some of the potential risks going forward, does it mean that the provisioning in '23 could be somewhat below the typical guidance of your discounts, which comes between 130, 140 bits. So that's my first question. A second question is on the risk-weighted asset development over the year. Am I correct to calculate that the increase in risk-weighted assets has been much lower compared to the increase in the loans outstanding. I mean have you made any special initiatives to lower the credit ratios, I mean, loans to risk asset ratios? Or what was the reason for that?

Thank you very much. I wanted to say yes, we hear one but in time, we also have the questions. Coming back to the first question in terms of cost of it. Again, I don't want to show the numbers that we will be budgeting as we repeat each time our business model working with all types of all profiles of customers micro, small companies, down to accommodate cost of risk around 150 basis points plus minus, but we never this is not a target that we are trying to accomplish, and we are glad that we have been always at a lower level. That's why [indiscernible] next mainly to come, I guess, on the average, you will be less than 100 basis points, if I can give you some guidance. You will see also in the presentation that we have been in the last couple of years with all the [indiscernible] being below 80 basis points. I think it's quite comfortable for us to say that it will be remaining somewhat better. On your -- on your second question, coming back to [indiscernible] telling me to mention that definitely quarter-to-quarter, there are changes. This is also every quarter, we are looking at our macroeconomic model and revising the numbers. So there has been some, let's say, volatility maybe, but it was never impacting our postpushing into negative case. As I said, we think that in the next 5 years, our cost profit will be below 100 points on [indiscernible], most we closed last 5 periods of 75 to 80 basis points. Coming back to your second question, it's a bit of also competitive information to give more detail on how we are optimizing our risk-weighted assets. But we did some optimization and some structures also working with [indiscernible] charters to decrease it. It's out of the resort, which we consider work today. But I cannot also claim that this will be done in an expedited manner that late trend to continue for even from now.

The next question is from Han Le Phuong with Concorde.

Just a couple of questions from [indiscernible]. 2 of them are actually follow-up questions. So the first one would be on the outlook. I think you used the [indiscernible] already. But during this slide, then that [indiscernible] would still improve in 2023 as well. And I was wondering if you could share like the magnitude would be something similar that we saw from 2021 to 2022 or maybe less, maybe more that we should expect -- my second follow-up question would be on dividend. So it's clear that you are not proposing cash dividend. But I was wondering like would you reconsider like at the end of the year or maybe it's more about 2024, if you would consider maybe if the regulation allows you to say that we would say from 2022 profits? And then my first question would be on cost. So what is your cost outlook actually. You have quite a high base was growing by 77%. I was wondering if this is what the number that we should expect in '23 as well? Or maybe I know that there was -- there were some one-offs last year.

Actually, just before the call, I was reading your report on us. So it's -- in terms of net interest margin, definitely, [indiscernible] very competitive market. Now all the banks lateline after quite a slow number of with customers. That's why we consider that, although we managed to increase the net debt margin up over 40 basis points last year. It will not -- we will not be able to increase from here, but we don't expect it to decrease neither because, as I said, some of the , there are positive things kicking in, including the benchmark interest rates and repricing at best rates compared to last 2 quarters. especially [indiscernible]. But also once we do our annual bond issuance and some other transactions, that will put some negative pressure on the net interest margin. So again, I tried to refrain telling you now the number that we are going to propose for the shareholder duty, but we don't see any significant issue in maintaining our profitability and our net interest income growth as per the loan growth. We will continue our loan growth as well. I remember last question in regards to the cost, there is one thing, which in the presentation, you may see, if I recall that there was a one-off related to our giving acquisition and integration which impacted actually both on the other income and other expenses, if you deducted our operational expense -- OpEx expenses growing less than 20%. And we don't expect the growth to be that much one year. We have renegotiated our [indiscernible] negotiating -- sorry, present [indiscernible]. Our labor agreement. We don't do any restructuring. I don't -- because we grow our business with the team. But on the other hand, we don't expect higher than inflation growth there. Also, we started taking certain measures in order to control cost growth in general. There is even a project [indiscernible] the bank starting this year. That's why we have I mean 2022 took us out of maybe our complacence a bit. We were very strong on the cost control and cost income ratio, as you know well. We will continue our attention. We'll maintain our attention there. You had one more question, sorry, I don't recall...

It was on dividends, whether you would consider like later this year or...

It was in term. So in regards to given the time that capitalization will be deflate in terms of free shares. So it will be from our point of view, cash equivalent. As regards to a possible dividend distribution, I would refrain from giving you a time line now. I can -- I can assure that it cannot be earlier than the period, but if things will suddenly just opportunities improve, we will not try to [indiscernible] cash payouts. So I guess, we can have a better guidance on this when we have the half-year call up and finish after we announce our June numbers. Let's take 2 more questions. And for the rest of the questions, we will definitely try to -- you can always reach us to Investor Relations or updating Diana, thank you.

So the next question is from Simon Nellis of Citibank. Yes, I guess my first question -- actually, maybe before my question, just a comment on the dividend. I found it strange that during the covid pandemic, you were one of the few banks that did pay a dividend in the region. And now everyone else seems to be paying dividends and you walk. So it's quite strange. So I'd be interested in knowing if that's just mostly due to pressure from the regulator or really because of things that you see going on in the bank Yes. My other question would be on Moldova. Just if you could give us an update on that business and that court case that hasn't been settled and any impact from the government crisis. And yes, just on your loan growth, what kind of loan growth are you looking for this year? It sounds like part of the reason why you're paying dividends is a still quite happy on the outlook for lender and where would that income from.

Simon, thank you. I have to admit that in 2020, we had our conversations with investors, analysts with the market before recommendations of authorities [indiscernible] in, and we gained some guidance. So that gave us, let's say, an open deal done, although [indiscernible], if I may say so, by paying given indeed. So I would say without loading the rush things. This helps to our investors, and we have good arguments also in terms of this capitalization coming back now, I mean, definitely, we want to preserve part of the capital. That's why we are increasing our capital base for loan growth. But one of the reasons is also annual requirements. One of the reasons that, let's say, instability in the market. We don't -- we also have more or less one of the -- I guess I read in one of your analysis, you will mention there are more of a more good, bad news. We don't know which ones are bad, which is a good base. That's why we want to be sure that the bank continues its, let's say, business growth, lending growth, has good capacity to cover if there will be the nonperforming loan ratio is growth. But we don't have a drastic scenario. I mean, as I said, we are optimistic. I'm not able to give you the percentage now. But our growth will be very much in line with ours in 2022, but previously prefunding growth in [indiscernible], but it depends also on many different factors. We will be -- we are planning to call both to GM notification for GM and the budget proposal latest mid-March. Then we can definitely make more details to on shareholders and investors have as to this information.

Okay. And Moldova?

It's not that I'm trying to ignore [indiscernible] they had a very good performance. So I would like to host national appreciation in terms from the management of BT -- so I call it what they did there. But on the other hand, as regards to the [indiscernible], there a total finance, no movement, no news. We are posting to, let's say, have an open, transparent discussion with the authorities there in order to put these in an online, let's say, personal interpretation, but I would refrain from that -- the thing is that I say. Now as the term bank in Moldova, Victoria Bank continues banks in business lending business. But definitely, we don't do -- even half of what we have done there, we are not investing that aggressive. We are not pushing them to, let's say, transforming the bank business time that much because we want to understand also how we stay. On the land itself, as you always say, retardant doesn't have much of a contribution to the bottom line of BT Group. That's why this is something that we now actively follow and once things will clear out, considering that the issue has not reached the court, yes, that hasn't been any court hearing yet. We continue our business, but not at the speed which would have done if we would have the more comfortable financial economy and so on...

The last question is from Alexandros Boulougouris of Wood.

Quick question on my side regarding the quick fix, do you know -- could you tell us -- give us a color of what the impact will be from the evolution of the quick fix in January 2023 -- that's my first question. And my second, just to clarify a bit on what you said previously, you reclassified some of the bonds to help collect in [indiscernible], if I recall correctly. And now you reclassified back to OCI, these bonds that were had to collect, and this resulted in the loss in the OCI and the reserves in the fourth quarter because of the classification, correct?

I think over, let's say, movements, they are reflected in the numbers that we have presented. So it's not on top of that. That's -- is one of the maybe reasons that we gave up on that is for that this moment in the comfortable sector position, we don't want to be [indiscernible] And coming back to your first question, the impact we estimate the impact is slightly about 2.5%, still giving us a very comfortable capital position.

So 2.5% of your capital, you may not RWA.

2.5 percentage points decrease in nature.

Ladies and gentlemen, there are no further questions at this time. I would now turn the conference over to management for any closing comments. Thank you.

Thank you very much. Thank you for joining us. I hope we managed to clarify some of your questions. But if there are more we do not state contacting our Investor Relations team, Diana, will try to answer you in time in an open minute. I'm sorry that we couldn't give much of forward guidance. This is related, as I said, to the blackout period that we are in now in terms of the budget proposal. But I repeat that we are very positive to Romania, and we are also aware of the role that we have in Romania. So we are budgeting growth, prudential growth and strong profit project also for 2023. Thank you very much.

Ladies and gentlemen, the conference has now concluded, and you may disconnect your telephone. Thank you for calling, and have a good afternoon.