Financial Data and Key Metrics Changes - Yancoal achieved a record production of 10.4 million tons of attributable saleable coal in Q4 2025, contributing to an annual total of 38.6 million tons, also a record for the company [4][5] - Cash operating costs were reported at AUD 93 per ton, within the guidance range of AUD 89-AUD 97 per ton [4][5] - The company’s cash balance increased by AUD 307 million over the quarter, reaching over AUD 2 billion with no debt [5][15] Business Line Data and Key Metrics Changes - Total ROM coal production increased by 20% compared to Q3 2025, reaching 18.9 million tons, while saleable coal production rose by 11% to 13.6 million tons [8][9] - The attributable share of saleable coal was 10.4 million tons, which includes an additional 3.75% interest in the Moolarben joint venture [9] Market Data and Key Metrics Changes - The average realized price for coal improved by 6% to AUD 148 per ton, driven by a 6% increase in thermal coal prices to AUD 138 per ton and a 4% increase in metallurgical coal prices to AUD 203 per ton [5][13] - International coal markets showed mixed performances, with Japan increasing coal imports by 16%, while China’s annual imports fell by 18% due to strong domestic production [11][12] Company Strategy and Development Direction - Yancoal aims to maintain operational momentum into 2026, with guidance on production, cash operating costs, and capital expenditure to be provided in the upcoming financial results [6] - The company emphasizes cost control and aims to deliver unit costs around the middle of the guidance range, reinforcing its position as a leading low-cost coal exporter [15][51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operational performance and the financial position, highlighting the importance of disciplined cost control and the ability to leverage improving coal prices [51] - The CEO noted that the company’s strong cash position allows for considerations of dividends and potential growth opportunities [5][15] Other Important Information - The total recordable injury frequency rate improved to 6.14, below the industry average of 7.45, indicating a commitment to safety performance [8] - The company plans to process additional ROM coal that could not be converted to saleable coal in Q4 2025 during the first quarter of 2026 [32] Q&A Session Summary Question: Current stockpiles and inventory levels - Management confirmed that sales and production are back to normal and matched, indicating a strong quarter for both production and sales [19] Question: Comments on New South Wales coal royalties - Management stated there have been no discussions regarding changes to coal royalties in New South Wales [20] Question: Production profile of Hunter Valley Operations - Management reported a strong fourth quarter for Hunter Valley Operations, with effective mitigation of wet weather impacts through prior capital investments [23][24] Question: Insights on coal market outlook - Management noted a slight recovery in coal prices towards the end of Q4, with expectations for demand to pick up post-Chinese New Year [26] Question: Dividend framework and cash balance implications - Management reiterated the dividend framework, indicating a review of the final position after the year-end to determine capacity for dividend allocation [35][36] Question: Free cash flow generation and capital management - Management discussed the strong cash flow generation and emphasized the importance of being cost-competitive while balancing growth opportunities [39][40] Question: U.S. coal import potential - Management clarified that Australia does not supply coal to mainland USA, as the U.S. is a significant coal producer itself [42] Question: Hypothetical scenarios regarding joint ventures - Management refrained from commenting on market hypotheticals, indicating it is too early to form views on potential changes [46]

Financial Data and Key Metrics Changes - Yancoal achieved a record production of 10.4 million tonnes of attributable saleable coal in Q4 2025, contributing to an annual total of 38.6 million tonnes, also a record [4][5] - Cash operating costs were reported at AUD 93 per tonne, within the guidance range of AUD 89-AUD 97 per tonne [4][5] - The company’s cash balance increased by AUD 307 million over the quarter, reaching over AUD 2 billion with no debt [5][15] Business Line Data and Key Metrics Changes - Total ROM coal production increased by 20% compared to Q3 2025, reaching 18.9 million tonnes, while saleable coal production rose by 11% to 13.6 million tonnes [8][9] - The attributable share of saleable coal was 10.4 million tonnes, which includes a 3.75% interest in the Moolarben Joint Venture acquired in October [9] Market Data and Key Metrics Changes - The average realized price for coal improved by 6% to AUD 148 per tonne, driven by a 6% increase in thermal coal prices and a 4% increase in metallurgical coal prices [5][13] - International coal market conditions were mixed, with Japan increasing coal imports by 16% while China’s annual imports fell by 18% [11][12] Company Strategy and Development Direction - Yancoal aims to maintain operational momentum into 2026, with guidance on production, cash operating costs, and capital expenditure to be provided in February 2026 [6] - The company emphasizes cost control and aims to deliver unit costs around the middle of the guidance range, reinforcing its position as a low-cost coal exporter [15][51] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operational performance and financial position, highlighting the importance of disciplined cost control and the ability to leverage improving coal prices [51] - The company remains focused on balancing cash flow generation with potential dividend considerations and growth opportunities [15][36] Other Important Information - The total recordable injury frequency rate improved to 6.14, below the industry average of 7.45, indicating a commitment to safety [8] - The company plans to process additional ROM coal that could not be converted to saleable coal in Q4 2025 during the first quarter of 2026 [32] Q&A Session Summary Question: How are current stockpiles and inventory levels looking? - Management confirmed that sales and production are back to normal and matched, indicating a strong quarter for both production and sales [19] Question: Any comments on the current royalty structure in New South Wales? - Management stated there have been no discussions regarding changes to coal royalties and are currently unaware of any revisions [20] Question: Can you comment on the production profile of Hunter Valley Operations? - Management noted a strong fourth quarter performance, with effective mitigation of wet weather impacts through prior capital investments [23] Question: What is the outlook for the coal market? - Management indicated a slight recovery in coal prices towards the end of Q4, with expectations for demand to pick up post-Chinese New Year [26] Question: What does the AUD 2 billion cash balance mean for dividends? - Management reiterated that the board will review the final position after the year-end to determine the capacity for dividend allocation, following a framework of 50% NPAT or free cash flow [35][36] Question: How should investors think about capital management given the free cash flow generation? - Management emphasized the importance of being cost-competitive and balancing free cash flow with growth opportunities and dividend considerations [39][40]

Financial Data and Key Metrics Changes - Yancoal achieved a record production of 10.4 million tons of attributable saleable coal in Q4 2025, contributing to an annual total of 38.6 million tons, also a company record [4][5] - Total ROM coal production increased by 20% compared to Q3 2025, reaching 18.9 million tons [7][8] - Average realized prices improved by 6% to AUD 148 per ton from the prior quarter [5][13] - The company ended the quarter with over AUD 2 billion in cash and no debt, reflecting a AUD 307 million increase in cash balance over the quarter [5][15] Business Line Data and Key Metrics Changes - Saleable coal production was 13.6 million tons, which is 11% more than Q3 2025 [8] - The attributable sales volume remained stable at 10.8 million tons, similar to Q3 2025 [10] Market Data and Key Metrics Changes - The average price on the API 5 index was 12% higher than in Q3, while the GC Newcastle index remained flat [10][12] - Japan's coal imports increased by 16%, while South Korea prioritized Indonesian and Colombian supplies over Australian coal [11] - Global demand for metallurgical coal declined, with a 7% decrease in seaborne metallurgical coal exports compared to 2024 [12][13] Company Strategy and Development Direction - Yancoal aims to maintain its position as a leading low-cost coal exporter, with expectations to deliver unit costs around the middle of the guidance range [5][15] - The company is considering dividends and potential growth opportunities due to its strong cash position [5][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about carrying operational momentum into 2026, with guidance on production and costs to be provided in February [5][6] - The company noted that while there were mixed performances in international coal markets, gains in coal price indices since the end of 2025 have sparked optimism among industry participants [13][15] Other Important Information - The total recordable injury frequency rate improved to 6.14, below the industry average of 7.45, indicating a commitment to safety [7] Q&A Session Summary Question: Current stockpiles and inventory levels - Sales and production are back to normal and matched, indicating a strong quarter [20] Question: Comments on New South Wales coal royalties - No discussions regarding changes to coal royalties have occurred, and the company is unaware of any changes [21] Question: Production profile of Hunter Valley Operations - Hunter Valley Operations had a strong fourth quarter, with effective management of wet weather impacts [24] Question: Insights on coal market outlook - Price recovery was noted towards the end of Q4, with expectations for a slight market pickup post-Chinese New Year [27] Question: Saleable production ratio decline - The lower ratio of saleable coal production to ROM coal production was due to an increase in ROM coal that could not be fully processed [29][31] Question: Dividend and capital management considerations - The company follows a dividend framework based on NPAT or free cash flow, with decisions to be made at the February board meeting [32][33] Question: Hypothetical scenario regarding U.S. coal imports - Australia has not historically supplied coal to the U.S. mainland, and the U.S. is unlikely to become a coal import market for Australia [38]

Financial Data and Key Metrics Changes - The company reported record quarterly production of just under 6,600 ounces for Q1 2026, a significant increase compared to the prior year and Q4 results [6][8] - Revenue for Q1 exceeded $25 million, with adjusted EBITDA over $13 million, demonstrating strong cash flow and margins [8][12] - The working capital ratio improved from 1.3 times to 1.7 times, with positive working capital of approximately $15 million [9][28] Business Line Data and Key Metrics Changes - The company is producing between 25,000 and 30,000 ounces in fiscal 2026, with Q1 being one of the lowest quarters expected [4][7] - Cash costs for Q1 were around $1,500 per ounce, within the guidance range of $1,400 to $1,600 per ounce [7][12] - The company has a ROM pad stockpile of over 22,000 ounces, averaging 1.2-1.3 grams per ton, which helps optimize mill feed [10] Market Data and Key Metrics Changes - The realized gold price in Q1 was $3,860 per ounce, which later increased to over $4,600 per ounce, indicating a strong gold price environment [8][12] - The company is positioned in the lowest quartile of the cash cost curve, with gross profits exceeding 50% [12] Company Strategy and Development Direction - The company plans to expand its plant over the next 18-24 months to increase production and fund underground development [3][4] - There is a focus on exploration, with a geophysics study completed and plans to drill approximately 40,000 to 60,000 meters this year [40][42] - The company is negotiating with the Tanzanian government to improve agreements and reduce investment risks [44][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational performance and the potential for increased production and profitability due to higher gold prices [26][42] - The company anticipates a steady descent in the mining project, with improved grade profiles expected in the coming quarters [32][37] - Management is optimistic about the exploration results and the potential for increased reserves and resources [40][42] Other Important Information - The company is investing in plant upgrades and expansion, utilizing free cash flow to enhance throughput and recovery rates [11][12] - The company has engaged marketing firms to attract high-net-worth investors and institutional interest [76][78] Q&A Session Summary Question: Potential bottlenecks during ramp-up and labor force impacts - Management indicated that labor costs are stable, with a slight increase in workforce expected but overall efficiency improvements anticipated [61] Question: Expectations for high-grade material mining - Management confirmed that head grades will increase with the installation of a thickener, allowing for better separation of higher-grade material [65] Question: Plant utilization rate increase and strip ratio plans - The increase in plant utilization from 88% to 90% is attributed to improved maintenance and spare parts management [68] - The strip ratio will fluctuate based on the mine plan and gold prices, with expectations of a lower strip ratio as stockpiles increase [70]

Financial Data and Key Metrics Changes - The company reported record quarterly production of just under 6,600 ounces in Q1 2026, a significant increase compared to the prior year and Q4 results [6][8] - Full year production guidance remains between 25,000 and 30,000 ounces, with Q1 production expected to be among the lowest quarters of the year [7][12] - Cash costs for Q1 were approximately $1,500 per ounce, aligning with the guidance of $1,400 to $1,600 per ounce [7][12] - Revenue for Q1 exceeded $25 million, with adjusted EBITDA over $13 million, indicating strong cash flow and margins [8][12] - Working capital ratio improved from 1.3 times to 1.7 times, with positive working capital of about $15 million [9][12] Business Line Data and Key Metrics Changes - The company operates the Buckreef Gold Project in Tanzania, producing between 25,000 and 30,000 ounces in fiscal 2026 [4][6] - The ROM pad stockpile has grown to over 22,000 ounces, averaging 1.2-1.3 grams per ton, which optimizes mill feed consistency [10][12] - Significant investments were made in plant upgrades and expansions, including down payments on thickeners and elution plants [11][12] Market Data and Key Metrics Changes - The average gold price realized in Q1 was $3,860 per ounce, which later increased to over $4,600 per ounce, demonstrating strong leverage to gold prices [8][12] - The company is positioned in the lowest quartile of the cash cost curve, with gross profits exceeding 50% [12] Company Strategy and Development Direction - The company plans to expand the plant over the next 18-24 months to increase production and fund underground development [3][4] - Exploration efforts are ongoing, with a focus on prospective areas such as Stanford Bridge and Anfield, and a geophysics study has highlighted new targets [40][41] - The company is negotiating with the Tanzanian government to establish better agreements that enhance operational transparency and reduce investment risks [44][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational growth and the potential to exceed PEA metrics in terms of throughput and gold production [16][22] - The company anticipates a steady grade profile and increased production as new processing equipment is installed [32][37] - Management is optimistic about the financial outlook, expecting to generate higher cash flow and improve working capital ratios [28][51] Other Important Information - The company is investing in exploration with plans to drill approximately 40,000 to 60,000 meters throughout the year [40][42] - The company has engaged multiple marketing firms to attract high-net-worth investors and institutional interest [76][78] Q&A Session Summary Question: Can you walk me through potential bottlenecks during ramp-up and impacts on the labor force? - Management indicated that labor costs are stable, with a slight increase in workforce expected but overall efficiency improvements anticipated [61][62] Question: When should we expect high-grade material to be mined? - Management noted that head grades will increase as the thickener is installed, allowing for better separation of higher-grade material [65] Question: What brought the plant utilization rate from 88% to 90%? - The increase in utilization is attributed to improved preventative maintenance and better organization of processes [68][69]

Financial Data and Key Metrics Changes - The company reported record quarterly production of just under 6,600 ounces in Q1 2026, a significant increase compared to the prior year and Q4 results [6][8] - Revenue for Q1 reached over $25 million, with adjusted EBITDA exceeding $13 million, demonstrating strong cash flow and margins [8][12] - The working capital ratio improved from 1.3 times to 1.7 times, with positive working capital of approximately $15 million at the end of Q1 [9][27] Business Line Data and Key Metrics Changes - The Buckreef Gold Project in Tanzania is producing between 25,000 and 30,000 ounces in fiscal 2026, with Q1 production expected to be among the lowest quarters of the year [4][7] - Cash costs for Q1 were approximately $1,500 per ounce, aligning with the full-year guidance of $1,400 to $1,600 per ounce [7][12] Market Data and Key Metrics Changes - The company realized a gold price of $3,860 per ounce in Q1, which later increased to over $4,600 per ounce, indicating a strong gold price environment [8][12] - The gross profit margin is over 50%, positioning the company in the lowest quartile of the cash cost curve [12] Company Strategy and Development Direction - The company plans to expand the plant over the next 18-24 months to increase production and fund underground development, with an 18-year mine life projected [3][4] - The focus is on optimizing the existing plant and enhancing recovery rates through upgrades, including a super oxidation system and a new SAG mill [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational growth and the potential to exceed PEA metrics in terms of throughput and gold production [15][22] - The company is optimistic about increasing reserves and resources due to favorable gold prices and ongoing exploration efforts [21][25] Other Important Information - The company is actively negotiating with the Tanzanian government to establish better agreements that promote investment and operational transparency [44][46] - Exploration plans include drilling approximately 40,000 to 60,000 meters in 2026, targeting new areas identified through geophysical studies [39][40] Q&A Session Summary Question: Can you walk me through potential bottlenecks during ramp-up and impacts on the labor force? - Management indicated that labor costs are stable, with a slight increase in workforce expected but overall efficiency improvements anticipated [62][64] Question: When should we expect high-grade material to be mined? - Management confirmed that head grades will increase as the thickener is installed, allowing for better separation of higher-grade material [65] Question: What brought the plant utilization rate from 88% to 90%? - The increase in utilization is attributed to improved preventative maintenance and better organization of processes [69][70] Question: What are the risks of completing TSF-3 on schedule? - Management assured that the construction of TSF-3 is on track, with a timeline of about five months for completion [74][76] Question: What initiatives are in place to promote TRX and its stock? - The company is engaging marketing firms to attract high-net-worth and institutional investors, focusing on maintaining a stable share count without discounts [76][78]

Financial Data and Key Metrics Changes - Core operating profit increased by 6% year-on-year and 2.5% quarter-on-quarter to INR 175.13 billion [2] - Profit before tax, excluding treasury, was INR 149.57 billion, down from INR 152.89 billion in Q3 of the previous year [3] - Profit after tax decreased to INR 113.18 billion from INR 117.92 billion in Q3 of last year [3] - Average deposits grew by 8.7% year-on-year and 1.8% sequentially [3] - Total provisions during the quarter were INR 25.56 billion, including an additional standard asset provision of INR 12.83 billion [3][6] Business Line Data and Key Metrics Changes - Domestic loan portfolio grew by 11.5% year-on-year and 4% sequentially [4] - Retail loan portfolio grew by 7.2% year-on-year and 1.9% sequentially, with the rural portfolio growing by 4.9% year-on-year [4] - Business banking portfolio grew by 22.8% year-on-year and 4.7% sequentially [4] - Credit card portfolio declined by 3.5% year-on-year and 6.7% sequentially due to high festive spends in the previous quarter [8] Market Data and Key Metrics Changes - Average LCR for the quarter was about 126% [4][6] - Net NPA ratio improved to 0.37% from 0.39% in the previous quarter [4] - Gross NPA additions were INR 53.56 billion, down from INR 60.85 billion in Q3 of last year [10] Company Strategy and Development Direction - The strategic focus remains on growing profit before tax through a customer-centric approach and enhancing delivery capabilities [2] - The bank aims to maintain a strong balance sheet, prudent provisioning, and healthy capital levels while delivering sustainable returns to shareholders [6] Management Comments on Operating Environment and Future Outlook - Management sees many opportunities for risk-calibrated, profitable growth and aims to grow market shares across key segments [6] - The bank is focused on bringing the agricultural priority sector credit portfolio into conformity with regulatory expectations [7] - Management expects net interest margins to remain range-bound, with some deposit repricing expected [27] Other Important Information - The capital position remains strong with a CET1 ratio of 16.46% and total capital adequacy ratio of 17.34% [6] - Operating expenses increased by 13.2% year-on-year, influenced by new labor code provisions [16] Q&A Session Summary Question: What is the size of the portfolio on which standard asset provisions were made? - The underlying portfolio is between INR 200-250 billion, and the bank will work to bring it into conformity with regulatory expectations [26] Question: How do you view margins from here on? - Margins are expected to remain steady, with some deposit repricing anticipated [27] Question: Is there any additional PSL cost due to the declassification of agri loans? - The cost of PSL compliance has been increasing, but no specific additional costs are expected from this regulatory observation [33] Question: What is the outlook for credit card growth? - The decline in the credit card portfolio is attributed to high festive spending in the previous quarter, but growth is expected to improve [35] Question: How is the business banking growth outlook? - Business banking growth is strong, with a year-on-year growth of 22%, and the bank is not holding back on this segment [55] Question: What is the thought process behind the two-year extension for the CEO? - The board decided on a two-year appointment, which is almost three years until the end of the renewed term [71]

Financial Data and Key Metrics Changes - Core operating profit increased by 6% year-on-year and 2.5% quarter-on-quarter to INR 175.13 billion [2] - Profit before tax, excluding treasury, was INR 149.57 billion, down from INR 152.89 billion in Q3 of the previous year [3] - Profit after tax decreased to INR 113.18 billion from INR 117.92 billion in Q3 of last year [3] - Average deposits grew by 8.7% year-on-year and 1.8% sequentially [3] - Total provisions during the quarter were INR 25.56 billion, including an additional standard asset provision of INR 12.83 billion [3][6] Business Line Data and Key Metrics Changes - Domestic loan portfolio grew by 11.5% year-on-year and 4% sequentially [4] - Retail loan portfolio grew by 7.2% year-on-year and 1.9% sequentially, with the rural portfolio growing by 4.9% year-on-year [4] - Business banking portfolio grew by 22.8% year-on-year and 4.7% sequentially [4] - Corporate portfolio grew by 5.6% year-on-year and 6.5% sequentially [4] - Credit card portfolio declined by 3.5% year-on-year and 6.7% sequentially [8] Market Data and Key Metrics Changes - Average LCR for the quarter was about 126% [3][6] - Net NPA ratio improved to 0.37% from 0.39% in the previous quarter [4] - Provisioning coverage ratio on non-performing loans was 75.4% [5] Company Strategy and Development Direction - The strategic focus remains on growing profit before tax through a customer-centric approach and enhancing delivery capabilities [2] - The bank aims to maintain a strong balance sheet, prudent provisioning, and healthy capital levels while delivering sustainable returns to shareholders [6] Management's Comments on Operating Environment and Future Outlook - Management sees many opportunities for risk-calibrated, profitable growth and aims to grow market shares across key segments [6] - The bank is focused on bringing the agricultural priority sector credit portfolio into conformity with regulatory expectations [7] - Management expects net interest margins to remain range-bound, with some deposit repricing still possible [27] Other Important Information - The bank's operating expenses increased by 13.2% year-on-year, influenced by new labor code provisions [16] - Dividend income from subsidiaries was INR 6.81 billion, compared to INR 5.09 billion in Q3 of last year [15] Q&A Session Summary Question: What is the size of the portfolio on which standard asset provisions were made? - The underlying portfolio is between INR 200-250 billion, and the bank will work to bring it into conformity with regulatory expectations [26] Question: How do you view margins from here on? - Margins are expected to remain steady, with some deposit repricing and the impact of repo rate cuts [27] Question: Is there any additional PSL cost due to the declassification of agri loans? - The cost of PSL compliance has been increasing, but no specific additional costs are expected at this time [33] Question: What is the outlook for credit card growth? - The decline in the credit card portfolio is seen as a one-off, and growth is expected to improve moving forward [35] Question: How is the bank managing operating expenses? - The bank aims to maximize profit before provisions and does not expect costs to rise at the same pace as before [50]

Financial Data and Key Metrics Changes - Core operating profit increased by 6% year-on-year and 2.5% quarter-on-quarter to INR 175.13 billion [2][3] - Profit before tax, excluding treasury, was INR 149.57 billion, down from INR 152.89 billion in Q3 of the previous year [3][17] - Profit after tax decreased to INR 113.18 billion from INR 117.92 billion year-on-year [3][17] - Average deposits grew by 8.7% year-on-year and 1.8% sequentially [3] - Total provisions during the quarter were INR 25.56 billion, including an additional standard asset provision of INR 12.83 billion [3][16] Business Line Data and Key Metrics Changes - Domestic loan portfolio grew by 11.5% year-on-year and 4% sequentially [4] - Retail loan portfolio increased by 7.2% year-on-year and 1.9% sequentially [4] - Business banking portfolio grew by 22.8% year-on-year and 4.7% sequentially [4] - The credit card portfolio declined by 3.5% year-on-year and 6.7% sequentially [8] Market Data and Key Metrics Changes - Average current and savings account deposits grew by 8.9% year-on-year and 1.5% sequentially [3] - The net NPA ratio improved to 0.37% from 0.39% quarter-on-quarter [4] - The capital position remained strong with a CET1 ratio of 16.46% and total capital adequacy ratio of 17.34% [5] Company Strategy and Development Direction - The strategic focus is on growing profit before tax through a customer-centric approach and enhancing delivery capabilities [2] - The bank aims to maintain a strong balance sheet, prudent provisioning, and healthy levels of capital while delivering sustainable returns [5] Management's Comments on Operating Environment and Future Outlook - Management sees many opportunities for risk-calibrated, profitable growth and aims to grow market shares across key segments [5] - The bank is focused on bringing the agricultural priority sector credit portfolio into conformity with regulatory expectations [6][7] Other Important Information - The bank's operating expenses increased by 13.2% year-on-year, influenced by new labor code provisions [16] - Non-interest income, excluding treasury, grew by 12.4% year-on-year [15] Q&A Session Summary Question: What is the size of the portfolio on which standard asset provisions were made? - The underlying portfolio is estimated to be between INR 200-250 billion, and the bank will work to bring it into conformity with regulatory expectations [25] Question: How do you view your margins from here on? - Margins are expected to remain range-bound, with some deposit repricing still left to help hold up margins [26] Question: Is there any additional PSL cost due to the declassification of agri loans? - The cost of PSL compliance has been increasing, but no specific additional costs are being called out at this time [32] Question: What is the outlook for growth in business banking? - Business banking growth is expected to continue, with a year-on-year growth of 22% in the current quarter [53] Question: What is the current LCR? - The LCR for the quarter is reported at 126% [84] Question: How should stakeholders interpret the two-year extension for the CEO? - The board decided on a two-year appointment, which is almost three years until the end of the renewed term [70]

Financial Performance - The company reported a strong fourth quarter with EPS growth of 14% year over year, supported by record quarterly fee and total revenue [7][17] - For the full year, EPS was $10.30, up 19% year over year, with total revenue reaching approximately $14 billion, a 7% increase from the prior year [7][18] - Pre-tax margin improved to approximately 31% in Q4 and 29% for the full year, up from 28% in 2024, indicating positive operating leverage [7][19] Business Line Performance - Investment services surpassed $50 trillion in Assets Under Custody and Administration (AUCA) for the first time, with servicing fee revenue growing by 8% year over year [8][20] - Investment management revenue reached a record with management fees increasing 15% year over year, driven by higher average market levels and net inflows of $85 billion [10][22] - State Street Markets saw solid growth in FX trading services and securities finance, with FX trading revenue up 13% year over year [12][22] Market Data - The company achieved record AUCA of $53.8 trillion, a 16% increase year over year, driven by higher market levels and positive client flows [20] - The private markets business demonstrated strong growth of 12% in 2025, now representing approximately 10% of servicing fees [21] Company Strategy and Industry Competition - The company is focused on leveraging AI-enabled capabilities and enhancing client engagement through strategic initiatives in private markets, wealth services, and digital assets [6][15] - A partnership with Apex Fintech Solutions aims to strengthen market position in wealth services, while the digital asset platform is designed to bridge traditional and digital finance [9][10] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism for 2026, highlighting a focus on technology-led innovation and transformation to enhance operations and client service [15][30] - The company anticipates fee revenue growth of 4%-6% in 2026, driven by servicing and management fees, with expectations for net interest income to increase in low single digits [29][30] Other Important Information - The company returned over $2.1 billion in capital to shareholders in 2025, with a total payout ratio of approximately 80% [14][28] - Productivity savings of $500 million were achieved in 2025, enabling reinvestment in strategic growth initiatives [13][27] Q&A Session Summary Question: Insights on operating leverage and AI's impact - Management discussed balancing investments for growth while maintaining operating leverage, emphasizing that AI will play a larger role in enhancing efficiency and margins in the future [32][36] Question: Digital asset strategy and client interest - Management clarified that the focus is on digitalizing transactions rather than cryptocurrencies, with tokenized money market funds being a key area of interest [44][45] Question: Net interest income (NII) expectations - Management indicated that while Q4 NII was strong, some seasonal factors may moderate expectations for 2026, but net interest margin is expected to grow [54][56] Question: Balance sheet optimization and growth - Management confirmed that balance sheet optimization efforts are ongoing, with expectations for stable deposits and a focus on high-quality lending relationships [62][66]