Financial Data and Key Metrics Changes - The quarterly profit reached a record of $3.4 billion, making H1 2025 the best first half ever for the company, driven by strong revenue growth across global businesses [4][5] - The CET1 ratio ended the quarter at 13%, at the top end of the 12% to 13% operating range, reflecting a disciplined capital allocation strategy [5][44] - Earnings per share rose to more than $0.43, supported by strong profit generation and fewer shares following buybacks, with TNAV plus cash EPS increasing by 16% [28] Business Line Data and Key Metrics Changes - Retail and consumer, representing 70% of revenue, showed significant upside potential with a 3% increase in deposits and a 16% rise in digital sales [8][12] - Wealth management revenue grew by 14%, driven by record assets under management and strong commercial trends [33][23] - Payments revenue increased by 17%, with double-digit growth in NII and fees, supported by higher activity levels [33][26] Market Data and Key Metrics Changes - Customer activity drove revenue growth across all businesses, with double-digit growth in Wealth and Payments, and strong performance in Corporate and Investment Banking (CIB) [10][33] - The cost of risk improved year on year, with the NPL ratio falling to 2.91%, indicating robust credit quality trends [42][41] - Retail customer deposits grew by 10% year on year, now representing 62% of total funding [18] Company Strategy and Development Direction - The company is focused on transforming into a digital bank with branches, combining technology with personalized support [11] - The ongoing transformation aims to simplify and automate processes, which has already contributed to significant efficiency gains [7][8] - The strategic focus includes expanding partnerships and enhancing product offerings, particularly in the U.S. and Europe [15][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year profitability targets despite a more challenging environment than initially anticipated [50] - The company anticipates continued revenue growth, with NII expected to rise slightly in constant euros, excluding Argentina [51] - Cost of risk is expected to remain stable, supported by resilient labor markets [51] Other Important Information - The company announced an agreement to sell its business in Poland, with figures including Poland until the deal is completed [3] - A new buyback program of up to €1.7 billion was approved, with plans to distribute at least €10 billion to shareholders through buybacks for 2025 and 2026 [28][48] Q&A Session Summary Question: NII in the UK and top-up provisions in Brazil - Management acknowledged the UK as a work in progress, emphasizing ongoing transformation and profitability focus, with expectations for NII to be slightly up [56][58] - In Brazil, management indicated that the cost of risk is expected to normalize, with a focus on secure lending and a conservative approach to strengthen the balance sheet [64][66] Question: Direction of costs and capital generation - Management reiterated guidance for lower costs in current euros for 2025, with ongoing investments in transformation [70][72] - Capital generation is expected to improve in the second half, with excess capital above 13% to be distributed as share buybacks, subject to regulatory approvals [78] Question: Benefits of transformation and consumer segment performance - Management believes that the benefits of transformation are just beginning to be realized, with expectations for further improvements in cost-to-income ratios [81][83] - The consumer segment is experiencing challenges due to lower car registrations in Europe, but management is optimistic about future performance as volumes improve [90][92]