Financial Data and Key Metrics Changes - The company reported a strong income growth of 12%, with total income reaching GBP 16.4 billion, exceeding guidance of around GBP 16.3 billion [4] - Earnings per share grew 27% to GBP 0.68, and dividends per share increased 51% to GBP 0.325 [3] - The cost-income ratio improved to 48.6%, down 4.8 percentage points from the previous year [11] Business Line Data and Key Metrics Changes - Customer loans increased by 5.6% to GBP 392.7 billion, driven by growth in mortgages and unsecured lending [6] - Customer deposits rose by 2.4% to GBP 442 billion, with retail banking deposits increasing by 4% [8] - Assets under management (AUM) grew by nearly 20% to GBP 58.5 billion, with net flows up 44% [9] Market Data and Key Metrics Changes - The company added 1 million new customers during the year, indicating broad-based growth across its three business lines [2] - The net interest margin increased by 21 basis points to 234 basis points, primarily due to deposit growth and margin expansion [4] Company Strategy and Development Direction - The company aims to grow customer assets and liabilities at an annual rate greater than 4% from 2025 to 2028, while reducing the cost-income ratio to below 45% [34] - There is a focus on leveraging simplification and investing in AI to drive growth and improve customer experience [34] - The company plans to manage its balance sheet and risk effectively, with an emphasis on dynamic pricing and advanced data analytics [34] Management's Comments on Operating Environment and Future Outlook - Management expects moderate growth in the macro environment for 2026, with unemployment peaking at levels comfortable for lending risk appetite [11] - The guidance for loan impairment rates is set to be below 25 basis points, reflecting a normalization in impairments and growth in the loan book [75] - The company remains confident in its ability to generate capital and maintain a strong capital position, with a CET1 ratio of 14% [17] Other Important Information - The company successfully completed its 2025 funding plan with GBP 7.1 billion in benchmark issuance [16] - Credit ratings improved, with Fitch upgrading all rated entities and S&P raising the rating of NatWest Group PLC to A-minus [32] Q&A Session Summary Question: How do you think about risk appetite and quantum of RWAs that can be optimized? - Management highlighted the execution of SRT transactions and the potential for further transactions in 2026 and 2027 to optimize capital and risk profile [37][38] Question: How do you set the leverage buffer target in relation to the capital target or the RWA framework? - Management indicated that risk weights are expected to be the binding constraint moving forward, rather than leverage [51] Question: What is driving the higher impairment change guidance to 25 basis points? - Management explained that the guidance reflects a normalization in impairments and growth in the loan book, particularly in unsecured lending [75]

Core Viewpoint - AFL's long-term credit rating has been downgraded from AA- (negative outlook) to A+ (stable outlook) by Fitch Ratings, following a similar downgrade of the French government's rating [1][3]. Rating Summary - AFL's long-term rating is now A+ with a stable outlook, while its short-term rating remains unchanged at F1+ with a stable outlook [3]. - The downgrade is a direct result of Fitch Ratings' methodology linking the sovereign rating to AFL due to its business model focused on financing French local authorities [3]. Financial Situation - The downgrade does not indicate a deterioration in AFL's financial situation, which remains solid [4]. - AFL maintains a robust business model, high liquidity, and prudent financial policies [8]. Regulatory Impacts - Debt issued by AFL is classified as high-quality liquid assets (HQLA1) under the LCR Delegated Regulation, provided that loans to eligible RGLA exceed 90% of total outstanding loans [5]. - As of June 30, 2025, AFL's debt securities have a risk weighting of 30% for the calculation of risk-weighted assets under the standard approach [9]. Company Overview - AFL is a bank created by and for French local authorities, aiming to empower local governance and provide cost-efficient resources with transparency [11]. - The institution focuses on maximizing public spending rather than profit, supporting local authorities in addressing social, economic, and environmental challenges [11].

Core Insights - UBS Group AG is facing a significant challenge due to a $26 billion increase in capital requirements imposed by the Swiss government, prompting global investment banks to propose various transaction strategies to address this issue [2][5][6] Group 1: Potential Strategies - Options being considered range from a merger or acquisition with a non-Swiss bank to technical adjustments that could help UBS manage capital over the coming years [3][4] - UBS is currently not inclined towards drastic changes, preferring to engage in lobbying and public positioning as a bill progresses through the Swiss parliament [4][8] - The bank's chairman has criticized the new capital demands as "extreme," indicating that they could hinder UBS's competitiveness against global rivals [6][7] Group 2: Impact of Capital Requirements - The proposed capital requirements could lead to UBS's Common Equity Tier 1 (CET1) ratio rising to approximately 19% over the next decade, which is significantly higher than what peers operate with [10] - Higher capital requirements may enhance safety but could also reduce profitability, as they require the bank to account for risks in foreign subsidiaries against its parent bank's capital [9][10] Group 3: Business Adjustments - UBS may consider downsizing or divesting risky business units to improve compliance with the new capital rules, particularly focusing on its investment banking division [12][15] - The bank's core business in global wealth management holds about $166 billion in risk-weighted assets, managing over $4 trillion in client assets [12] - Specific riskier areas, such as lending to highly-indebted companies and prime brokerage, are potential targets for reduction [17] Group 4: Technical Solutions - UBS is exploring technical methods to optimize its balance sheet, including the use of Significant Risk Transfers to shift credit risk to outside investors [20][21] - The bank is also considering "upstreaming" excess capital from its foreign subsidiaries, with plans for approximately $5 billion in transfers over time [22][23] Group 5: Future Considerations - UBS executives are currently focused on maintaining performance and hope for favorable outcomes from Swiss parliamentarians regarding the capital requirements [37] - There is speculation about the potential for UBS to shift its headquarters to escape stringent Swiss regulations, although this option has become less likely in recent months [31][33] - The uncertainty surrounding regulatory changes has negatively impacted UBS's share price, even as the broader European banking sector has seen a 30% rally [30][37]

Core Viewpoint - Third Coast Bank has successfully originated a $200 million revolving commercial real estate loan, marking a significant achievement for the organization and enhancing its financial position through improved risk management and capital efficiency [1][7]. Group 1: Loan Details - The $200 million mortgage loan is secured by a portfolio of eleven Residential Master Planned Communities under development in the Houston, Dallas, and Austin metropolitan areas of Texas [2]. - EJF Capital LLC, a global alternative asset management firm with approximately $5.4 billion in assets under management as of December 31, 2024, arranged the securitization transaction related to the mortgage loan [2][10]. Group 2: Securitization Process - Following the loan origination, Third Coast Bank created participation interests in the mortgage loan, selling one to EJF CRT 2025-1 Depositor LLC, which then sold it to EJF CRT 2025-1 LLC [3]. - The Issuer pledged its participation interests to U.S. Bank Trust Company, National Association, and issued Asset-Backed Notes, including Class A-1 and Class M-1 Notes, with the Class A-1 Notes sold to the Bank [4]. Group 3: Financial Impact - The transactions are expected to reduce the Bank's risk-weighted assets and the ratio of loans for construction and land development to total capital, which is a measure used by regulators to assess loan concentration risk [6]. - The Company believes these transactions will enhance the diversity of the Bank's on-balance sheet loan portfolio [6]. Group 4: Leadership Commentary - Bart Caraway, President & CEO of Third Coast Bank, expressed pride in the team's efforts to complete the first securitization, highlighting its importance in strengthening the Bank's financial position and opening new opportunities for customer service [7].