Financial Data and Key Metrics Changes - First Business Bank reported a nearly 15% increase in pre-tax, pre-provision earnings over 2024, with a return on average tangible common equity exceeding 15% for the year [5][6] - Tangible book value per share grew 14% year-over-year, and earnings per share (EPS) increased by 14% over 2024, surpassing the long-term goal of 10% annual growth [5][6] - The net interest margin (NIM) declined by 15 basis points to 3.53%, primarily due to a non-accrual interest reversal, but remained stable at 3.64% for the full year [16][17] Business Line Data and Key Metrics Changes - The private wealth business generated a record $3.8 million in fee income, up 11% year-over-year, while service charges increased nearly 20% year-over-year [9] - Net interest income grew 10% for the full year, meeting the double-digit growth goal, attributed to robust loan and deposit growth [9][10] - Non-interest income was affected by lower SBA gains and a reclassification of partnership investment income, which was adjusted to reflect net benefits [18][19] Market Data and Key Metrics Changes - Loan balances grew by approximately $39 million, or 5% annualized during the fourth quarter, and $261 million, or 8% year-over-year [11] - Core deposit balances increased by 12% from both the linked and prior year quarters, primarily from interest-bearing and money market accounts [14] - The company expects loan growth to rebound to typical double-digit rates in 2026, driven by strong regional economic conditions in Southern Wisconsin [12][13] Company Strategy and Development Direction - The company aims to achieve double-digit growth by investing in talent, technology, and maintaining prudent underwriting practices [24] - Management emphasized the importance of organic growth over acquisitions, believing it provides better value for shareholders [72][73] - The focus remains on maintaining a strong and stable net interest margin while shifting the loan mix towards higher-yielding commercial and industrial (C&I) relationships [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong pipelines in commercial real estate and C&I lending, as well as potential benefits from changes in federal tax policy [13][72] - The company anticipates continued competitive pressure on deposit pricing but believes it can maintain margins due to a balanced interest rate strategy [17][70] - Management acknowledged isolated credit challenges but indicated overall asset quality remains strong, with no significant concerns outside of specific loans [14][33] Other Important Information - The company recorded net charge-offs of $2.5 million, primarily from previously reserved equipment finance loans [14] - The effective tax rate for 2025 was 16.8%, within the expected range, and the company plans to continue evaluating capital management tools to maximize shareholder returns [22] Q&A Session Summary Question: Details on the CRE relationship affecting MPAs - Management provided insights on appraisals and the loan-to-value ratio, indicating a 72% LTV across seven properties [30][31] Question: Expectations for credit costs in the coming year - Management clarified that recent charge-offs were primarily related to equipment finance, with no specific reserves needed for the CRE relationship [32][33] Question: Fee income growth guidance - Management confirmed a 10% growth expectation for overall fees, excluding certain non-recurring items [35][36] Question: Timeline for resolution of larger problem loans - Management indicated that resolution could take time but expects progress throughout the year [48][49] Question: Equipment finance portfolio balance and expectations - The equipment finance portfolio was reported at $20 million, down from $61 million, with expectations for stability moving forward [55][56] Question: Strategic goals and potential adjustments - Management discussed the achievement of strategic goals and the focus on maintaining or improving efficiency ratios [57][58] Question: Outlook for loan growth in 2026 - Management expressed confidence in achieving double-digit loan growth, supported by strong pipelines and improved team performance [80][82]

Core Insights - Real Matters reported a strong start to fiscal 2026 with double-digit year-over-year growth and a return to positive profitability in a typically slow quarter for the business [3] - The company onboarded eight new clients, including two top-100 lenders, and achieved profitability for the first time since Q1 2022 despite mortgage market volumes being approximately 70% lower than that time [2][5] Financial Performance - Consolidated revenue rose 14% year-over-year, while net revenue increased 19%, reflecting gains across all segments [2][5] - U.S. Appraisal revenue increased 12% year-over-year to $32.9 million, with refinance-related revenues rising 27% [7] - U.S. Title revenue jumped 76% to $4.4 million, driven by market share gains and a Tier-1 client launch, with net revenue increasing 110% to $2.8 million [8][9] Segment Analysis - U.S. Appraisal segment saw adjusted EBITDA rise 36% to $3.3 million, with a net revenue margin decline attributed to transaction volume distribution [7] - U.S. Title segment posted an adjusted EBITDA loss of $0.8 million, improving from a $1.8 million loss a year ago, with operating expenses rising 16% due to additional hires [9] - Canada segment revenue increased modestly to $9.2 million, supported by market share gains, while net revenue rose 3% to $1.8 million [10] Market Outlook - Management expressed cautious optimism regarding U.S. mortgage fundamentals, forecasting modest purchase growth and approximately 50% refinance upside [4][13] - There are about 13 million mortgages above 6%, indicating a longer-term refinance opportunity as the market normalizes [14] Operational Efficiency - The company has improved operating efficiencies over the past several years, which has enhanced leverage in its business model [15] - Management indicated that at similar volumes to 2020 and 2021, the company expects to perform better, with adjusted EBITDA potentially close to $100 million under the target operating model [15] Balance Sheet Strength - The company ended the quarter with no debt and $43.8 million in cash, with the increase attributed to collections timing and working capital changes [17]

Effectively executing on these focus areas will help us sustain our industry-leading growth while advancing the efficiency and effectiveness of our model. With that as context, let's review a few highlights of our business growth. In Q4, recruited assets were $14 billion, bringing our total for the year to $104 billion. Throughout the quarter, our pipelines continued to build and are near record levels. Recognizing that many opportunities are in the early and mid-stages, we expect the pull-through to improv ...

Financial Data and Key Metrics Changes - The company achieved record adjusted earnings per share (EPS) of $5.23 in Q4, representing a 23% increase from the previous year [6][12] - Total assets reached a record $2.4 trillion, driven by organic growth and higher equity markets, with organic net new assets of $23 billion, reflecting a 4% annualized growth rate [6][12] - For the full year, total organic net new assets were $147 billion, equating to an approximately 8% growth rate [12] Business Line Data and Key Metrics Changes - Commission and advisory fees net of payout were $453 million in Q4, up $27 million from Q3 [12] - Client cash revenue increased to $456 million, up $14 million from Q3, with client cash balances ending the quarter at $61 billion, up $5 billion sequentially [13] - Transaction revenue for Q4 was $75 million, an increase of $8 million from Q3, driven by increased trading volumes [14] Market Data and Key Metrics Changes - The company maintained a 97% asset retention rate for Q4 and over the last 12 months, indicating strong advisor experience and service delivery [8] - Recruited assets in Q4 totaled $14 billion, contributing to a total of $104 billion for the year [7] Company Strategy and Development Direction - The company aims to be the best firm in wealth management, focusing on client centricity, empowering employees, and improving operating leverage [7] - The acquisition of Commonwealth Financial Network is a significant strategic move, expected to enhance the company's offerings and advisor retention [9][10] - The company is investing in automation and efficiency improvements to enhance the advisor experience and drive operating leverage [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 90% retention rate for Commonwealth assets, citing the quality of advisors committed to stay [25][29] - The recruiting environment remains competitive, with a focus on improving organic growth as pipelines build [44] - Management anticipates that as recruiting activity normalizes, organic growth will pick up, positioning the company for sustained growth [44] Other Important Information - The company ended Q4 with corporate cash of $470 million and a leverage ratio of 1.95x, indicating a strong financial position [19] - Core G&A for Q4 was $536 million, with expectations for continued investment in business efficiencies and growth [16] Q&A Session Summary Question: Concerns about Commonwealth retention rates - Management reaffirmed confidence in achieving the 90% asset retention target, highlighting that advisors committed to stay are larger and higher producers [25][29] Question: Clarification on EBITDA contribution post-acquisition - Management explained that while assets have grown, interest rate cuts and cash sweep dynamics offset potential increases in EBITDA estimates [36] Question: Growth outlook and recruiting dynamics - Management noted that advisor movement remains tempered compared to historical levels, with a focus on transitioning back to regular recruiting as Commonwealth onboarding progresses [41][44] Question: Integration progress with Prudential - Management reported strong growth in Prudential's advisor headcount and positive outcomes from the partnership, indicating potential for further collaborations with other firms [84][86]

Financial Data and Key Metrics Changes - The company reported record adjusted earnings per share (EPS) of $5.23 for Q4 2025, an increase of 23% year-over-year [4][11] - Total assets reached a record $2.4 trillion, driven by organic growth and higher equity markets [4][11] - Organic net new assets for Q4 were $23 billion, representing a 4% annualized growth rate, while total organic net new assets for the year were $147 billion, or approximately 8% growth [4][11] Business Line Data and Key Metrics Changes - Recruited assets in Q4 amounted to $14 billion, bringing the total for the year to $104 billion [5] - The company maintained a 97% asset retention rate for Q4 and the last 12 months, reflecting strong advisor experience enhancements [6][7] - Commission advisory fees net of payout were $453 million, up $27 million from Q3 [11] Market Data and Key Metrics Changes - The company added approximately $13 billion in assets during Q4 in traditional markets, maintaining industry-leading capture rates of advisors in motion [6] - The mix of fixed-rate balances in the ICA portfolio ended the quarter at roughly 55%, within the target range of 50%-75% [12] Company Strategy and Development Direction - The company aims to be the best firm in wealth management, focusing on client centricity, empowering employees, and improving operating leverage [5] - The integration of Commonwealth Financial Network is a key strategic priority, with expectations of onboarding approximately 90% of client assets [8] - The company is investing in technology and operational efficiencies to enhance advisor experience and drive growth [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 90% asset retention target for Commonwealth, citing the quality of advisors committed to stay [27] - The recruiting environment remains competitive, with expectations for organic growth to improve as recruiting activity normalizes [41] - The company anticipates a gradual return to more normalized recruiting outcomes, driven by increased win rates in traditional markets [29] Other Important Information - The company ended Q4 with corporate cash of $470 million, down $99 million from Q3, and a leverage ratio of 1.95x [18] - Core G&A for Q4 was $536 million, with expectations for 2026 Core G&A growth of 4.5%-7% [15][16] Q&A Session All Questions and Answers Question: Concerns about Commonwealth retention rates - Management reassured that retention rates are based on committed assets, with over 80% of advisors signed to stay, indicating a strong group of larger, faster-growing advisors [25][28] Question: Clarification on EBITDA contribution post-acquisition - Management explained that while assets have increased, recent interest rate cuts and cash sweeps have offset some expected EBITDA growth, maintaining the estimate at $425 million [34] Question: Outlook on recruiting and organic growth - Management noted that recruiting activity is expected to normalize over the year, with pipelines building towards record levels, but the timing of conversions will depend on advisor decision-making processes [39][41] Question: Progress on Prudential integration - Management highlighted that Prudential's advisor headcount growth has accelerated, and the partnership is yielding positive results, positioning the company well for future collaborations [80][81]

Financial Data and Key Metrics Changes - SkyWest reported a net income of $91 million, or $2.21 per diluted share for Q4 2025, and a full year net income of $428 million, or $10.35 per diluted share, reflecting a 31% increase in pre-tax income for 2025 compared to the previous year [4][11] - Total Q4 revenue was $1 billion, down from $1.1 billion in Q3 2025, but up 8% from $944 million in Q4 2024 [9] - Pre-tax income for 2025 was $566 million, up 31% from 2024, with EBITDA reaching $982 million, an increase of over $100 million from 2024 [11][12] Business Line Data and Key Metrics Changes - Contract revenue for Q4 was $803 million, down from $844 million in Q3 2025, but up from $786 million in Q4 2024 [9] - Prorate and charter revenue was $167 million in Q4, flat with Q3 2025, and up from $126 million in Q4 2024 [10] - Leasing and other revenue increased to $54 million in Q4, up from $39 million in Q3 and $32 million in Q4 2024, driven by maintenance services provided to third parties [10] Market Data and Key Metrics Changes - SkyWest Airlines achieved over 250 days of 100% controllable completion in 2025, with over 2,500 daily scheduled departures [6] - The fourth quarter faced challenges due to a government shutdown and mandatory flight reductions, leading to more canceled flights than major partners [6][22] Company Strategy and Development Direction - SkyWest announced extensions on key flying agreements, including 40 E175s with United and 13 E175s with Delta, solidifying partnerships and ensuring ongoing revenue stability [5][18] - The company plans to acquire and finance 29 additional E175s by the end of 2028, with a total of nearly 300 E175s expected in service by that time [14][20] - SkyWest aims to enhance service to underserved communities and capitalize on strong demand for its prorate product [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth possibilities in 2026, expecting mid-single-digit percentage growth in block hours compared to 2025 [16][18] - The effective tax rate for 2026 is anticipated to be approximately 24%, similar to 2025 [17] - Management acknowledged challenges in the third-party MRO network but remains committed to enhancing fleet flexibility and operational execution [23][24] Other Important Information - The company reduced its debt by $1 billion over the past three years, ending Q4 with $2.4 billion in debt, down from $2.7 billion at the end of 2024 [12][14] - Cash balance at the end of Q4 was $707 million, down from $753 million in Q3 2025 and $802 million in Q4 2024 [13] Q&A Session Summary Question: Impact of FAA cuts and government shutdown - Management acknowledged the significant impact of the government shutdown and flight cancellations, noting that they worked collaboratively with partners to mitigate effects [26][27] Question: Update on encumbered assets - Management reported approximately $1.5 billion in unencumbered assets, with expectations for this to increase as more E175s are paid off [29][31] Question: Aircraft order book and placement discussions - Management confirmed ongoing discussions with major partners regarding the placement of new aircraft, with most deliveries in 2027 and 2028 already spoken for [34] Question: Trends in aircraft utilization - Management noted positive trends in aircraft utilization, with expectations for increased utilization in the upcoming spring and summer [35][36] Question: E175 renewals and contract terms - Management indicated that the terms of the E175 renewals are economically similar to previous contracts, with some evolution due to changing market conditions [40][44] Question: Maintenance expenses and aircraft readiness - Management confirmed that maintenance expenses are consistent with previous levels, with 20 aircraft currently in heavy maintenance and expected to return to service soon [47][48] Question: Revenue model and growth opportunities - Management expressed optimism about the revenue model for parked aircraft and ongoing demand for services, with plans to capitalize on opportunities as they arise [75][76]

Financial Data and Key Metrics Changes - Alerus Financial reported a core return on assets (ROA) of 1.62% for Q4 2025, with an adjusted ROA of 1.35% and an adjusted efficiency ratio of 64.45% [3][4] - Net interest income increased by 4.7% over the prior quarter, reaching $45.2 million, while adjusted non-interest income grew by 8.3% [17][19] - The reported net interest margin (NIM) increased to 3.69%, with a core interest margin of 3.17%, reflecting a 12-basis point improvement from the previous quarter [18][19] Business Line Data and Key Metrics Changes - The retirement division generated total revenue of $17.3 million, a 4.6% increase over the prior quarter, driven by growth in asset and transaction-based fees [22] - The wealth management business saw revenues increase by 13.4% to $7.4 million, with end-of-quarter assets under management rising by 0.8% [23] - Core revenues from fee income businesses grew by 7% year-over-year, maintaining over 40% of total revenues [9][10] Market Data and Key Metrics Changes - Organic loan growth for 2025 would have been mid-single digits if not for strategic reductions in commercial real estate (CRE) and targeted loan sales [6] - The company experienced a 5% decline in deposits, primarily due to the calling in of broker deposits and other wholesale funding [20] - The deposit retention rate since the acquisition of Home Federal remains close to 95% [20] Company Strategy and Development Direction - Alerus aims to enhance its commercial banking operations and improve returns while focusing on long-term strategies, including a purposeful deleveraging plan [5][6] - The company is committed to organic growth and strategic hiring, particularly in the mid-market commercial and industrial (C&I) space [13] - Alerus plans to double the number of wealth management advisors and expand its national presence through partnerships and technology investments [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic position and momentum entering 2026, highlighting strong financial performance and integration capabilities [3][4] - The outlook for 2026 includes expectations for mid-single-digit loan growth and low single-digit deposit growth, with a projected net interest margin of 3.5%-3.6% [26][27] - Management noted that the economic environment appears favorable for businesses in 2026, with expectations of continued improvement in core businesses [68] Other Important Information - The tangible common equity ratio improved to 8.72%, providing a strong position for organic loan growth [25] - The company has approximately $2.8 billion in liquidity to support loan growth and other liquidity events [25] - Alerus is focused on maintaining a diversified revenue engine across banking, wealth, and retirement sectors [14] Q&A Session Summary Question: Balancing dynamics for 2026 regarding loan and deposit growth - Management aims for a loan-to-deposit ratio around 95%-96%, acknowledging potential increases during seasonal outflows [33] Question: Insights on expenses and technology investments - Guidance includes team additions and variable costs related to new technology platforms [35][36] Question: Loan growth expectations and credit trimming - A significant portion of loan runoff was intentional, focusing on improving the risk profile by reducing marginal credits [40] Question: Non-performing assets and resolution expectations - Management expects resolution of several non-performing assets in the first half of the year [72] Question: Tax rate expectations for 2026 - The anticipated tax rate for 2026 is 24% [73]

Financial Data and Key Metrics Changes - Hexcel achieved full-year sales of $1.894 billion, adjusted EPS of $1.76, and free cash flow of $157 million for 2025 [11][12] - In Q4 2025, sales were $492 million, up 3.7% from 2024, indicating a positive trend in commercial orders [12] - Gross margin for Q4 2025 was 24.6%, down from 25% in Q4 2024, primarily due to sales mix [23] Business Line Data and Key Metrics Changes - Commercial aerospace sales in Q4 were $299.5 million, a 7.6% increase compared to 2024, driven by growth in A320, 787, and 737 volumes [13] - Defense, space, and other segments saw sales of $191.8 million in Q4, down 1.9% from the same period in 2024, impacted by the divestment of the Austrian industrial business [14] Market Data and Key Metrics Changes - The backlog for commercial aircraft has exceeded 17,000, with a delivery shortfall of at least 5,300 aircraft, highlighting the supply-demand imbalance [4][5] - Aircraft production in 2025 was 1,503, about 87% of pre-pandemic levels, with expectations to fully recover to pre-pandemic levels in 2026 [8][21] Company Strategy and Development Direction - Hexcel is focused on developing advanced material solutions for next-generation aircraft, positioning itself to benefit from increased commercial aircraft production and defense funding [5][10] - The company initiated a $350 million accelerated share repurchase program, reflecting confidence in long-term growth [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a sustained ramp-up in commercial aircraft production rates and strong long-term demand in defense markets due to increasing budgets [4][10] - For 2026, Hexcel expects sales in the range of $2.0 billion to $2.1 billion, with adjusted EPS between $2.10 and $2.30, driven by increased operating leverage and disciplined cost control [21][22] Other Important Information - Hexcel announced a 6% increase in the quarterly dividend to $0.18 per share, reflecting a positive outlook on long-term growth [18] - The company closed a facility in Belgium and divested non-core businesses to streamline operations [14][15] Q&A Session Summary Question: Can you provide more detail on the growth expectations for commercial aerospace in 2026? - Management indicated that commercial aerospace growth is expected to be low to mid double digits, with specific assumptions for the A350 at about 80 units delivered in 2026, up from 57 in 2025 [38][39] Question: What are the expectations for incremental margins going forward? - Management expects mid-30s incremental margins, driven by operating leverage as production rates increase [66][67] Question: How will the company manage costs and hiring in 2026? - The company plans to maintain a low headcount initially, with selective hiring based on evidence of increasing production rates, particularly for the A350 [59][60] Question: What is the outlook for defense and space sales in 2026? - Defense sales are expected to grow low to mid single digits, while commercial aerospace is projected to grow low to mid double digits [85]

Financial Data and Key Metrics Changes - Hexcel achieved full-year sales of $1.894 billion, adjusted EPS of $1.76, and free cash flow of $157 million for 2025 [11] - In Q4 2025, sales were $492 million, up 3.7% from 2024, indicating a positive trend in commercial orders [12] - Gross margin for Q4 2025 was 24.6%, down from 25% in Q4 2024, primarily due to sales mix [23] Business Line Data and Key Metrics Changes - Commercial aerospace sales in Q4 were $299.5 million, a 7.6% increase compared to 2024, driven by growth in A320, 787, and 737 volumes [13] - Defense, space, and other segments saw sales of $191.8 million in Q4, down 1.9% from the same period in 2024, impacted by the divestment of the Austrian industrial business [14] Market Data and Key Metrics Changes - The backlog for commercial aircraft has exceeded 17,000, with a delivery shortfall of at least 5,300 aircraft, highlighting the supply-demand imbalance [4] - Aircraft production in 2025 was 1,503, about 87% of pre-pandemic levels, with expectations to fully recover to pre-pandemic levels in 2026 [8] Company Strategy and Development Direction - Hexcel is focused on developing advanced material solutions for next-generation aircraft, positioning itself to benefit from increased commercial aircraft production and defense funding [5][10] - The company initiated a $350 million Accelerated Share Repurchase program, reflecting confidence in long-term growth [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a sustained ramp-up in commercial aircraft production rates, with positive catalysts across major programs [6][20] - For 2026, Hexcel expects sales in the range of $2.0 billion to $2.1 billion, with adjusted EPS between $2.10 and $2.30, driven by increased operating leverage and disciplined cost control [21] Other Important Information - The board declared a quarterly dividend of $0.18 per share, a 6% increase, reflecting a positive outlook on long-term growth [18] - The company closed a facility in Belgium and divested non-core businesses to streamline operations [14][16] Q&A Session Summary Question: Can you provide more detail on the growth assumptions for commercial aerospace in 2026? - Management indicated that commercial aerospace growth is expected to be low to mid double digits, with specific assumptions for A350 deliveries at about 80 units in 2026, up from 57 in 2025 [38][39] Question: What is the outlook for incremental margins? - Management expects mid-30s incremental margins, driven by operating leverage as production rates increase [68][69] Question: Will there be further cash going into buybacks in 2026? - The priority is to reduce leverage back to the target range, but after achieving that, continued share repurchase will be considered [71]

Financial Data and Key Metrics Changes - The company reported a statutory profit after tax of GBP 4.8 billion, with a return on tangible equity of 12.9% or 14.8% excluding the motor provision [18][20] - Net income for the full year was GBP 18.3 billion, up 7% compared to 2024, driven by growth in net interest income (NII) and other income (OOI), which increased by 6% and 9% respectively [18][20] - The tangible net asset value per share increased to 57 pence, up 4.6 pence in 2025 [35] Business Line Data and Key Metrics Changes - Retail banking saw growth in mortgages, credit cards, and European retail, with mortgages up GBP 10.8 billion or 3% to GBP 323 billion [25][22] - Commercial Banking lending increased by GBP 2.7 billion, with strategic areas like infrastructure and project finance showing encouraging progress [26] - Other operating income was GBP 6.1 billion, up 9% year-on-year, with retail OOI growing by 12% and insurance, pensions, and investments by 11% [29][30] Market Data and Key Metrics Changes - Total deposits increased by GBP 13.8 billion or 3% in 2025, with retail deposits up GBP 5.5 billion and commercial deposits up GBP 8.5 billion [22][27] - The structural hedge notional stood at GBP 244 billion at year-end, with hedge income around GBP 5.5 billion, expected to increase to circa GBP 7 billion in 2026 [28] Company Strategy and Development Direction - The company is entering the final phase of its 5-year strategic plan, focusing on faster-growing sectors such as housing, pensions, investments, and infrastructure [4][5] - The acquisition of Schroders Personal Wealth is aimed at enhancing the company's wealth offering and deepening relationships with mass affluent customers [7][8] - The company is committed to improving operating leverage and reducing the cost-income ratio to below 50% by 2026 [11][31] Management's Comments on Operating Environment and Future Outlook - The management is optimistic about the UK economy, forecasting resilient but slower growth, with interest rates gradually falling in 2026 [4] - The company upgraded its return on tangible equity target for 2026 to greater than 16%, reflecting confidence in future performance [40][39] - Management emphasized the importance of cost discipline and strategic execution in driving shareholder distributions and financial performance [2][39] Other Important Information - The company announced a 15% increase in the ordinary dividend and a share buyback of up to GBP 1.75 billion [2][18] - Cumulative cost savings of approximately GBP 1.9 billion have been realized since 2021, supporting ongoing strategic investments [10][31] Q&A Session Summary Question: Insights on deposit performance and expectations for 2026 - The company noted strong deposit growth in 2025, with expectations for continued healthy performance in 2026, despite some seasonal variations [44][47] Question: Clarification on cost growth and management - The management indicated that cost discipline remains critical, with a projected cost base of less than GBP 9.9 billion for 2026, reflecting limited absolute cost growth [49][50] Question: Guidance on net interest income (NII) and capital distribution - The company expects NII to grow to GBP 14.9 billion in 2026, with steady growth anticipated throughout the year, and plans to review capital distributions on a half-yearly basis [56][62]