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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Ladies and gentlemen, welcome to Yapi Kredi First Quarter 2019 Earnings Conference Call on the 2nd of May 2019. [Operator Instructions] Today's speakers during this conference call are Mr. Gökhan Erün, CEO; Mr. Niccoló Ubertalli, Deputy CEO; Mr. Massimo Francese, CFO; Mr. Kürsad Keteci, Strategic Planning and IR EVP; and Ms. Hilal Varol, Head of IR and Strategic Analysis.
I'll leave the floor to Mr. Gökhan Erün. Sir, please go ahead.
Hello. Good afternoon, and thank you all for joining our first earnings call in 2019. Before going through details of our first quarter results, let me share with you some comments about the current operating environment.
First, economic activity displayed a slow pace in the first quarter due to tight financial conditions as expected. However, the strength is being recovered starting from the mid of March. Recently, earliest data has showed that rebalancing trend in the economy continues. We can obviously see that from -- in the production, for example, month on month figures. Last month was plus 1.3%. So there is a pick up on industrial production. And we are also seeing slight increase in intermediate good imports, which is also considered as improvement in the activity -- production activity at least.
In terms of inflation, we have seen decreasing trends up to now. And during the summertime, together with the base effect, improvements will be more visible. We left behind the election period and I believe that now the focus of all of us will be on the minimized of the vulnerability of the fundamentals of our economy. And considering the [ dovish ] policy of Fed and also the ECB, Turkey, will again positively differentiate itself within the emerging markets thanks to the action to restore the foreign investors' confidence via tight market policy and also fiscal measures taken. So at Yapi Kredi, we will continue to act in good faith with corporate approach in order to overcome this negative operating environment and actualize the further potential of the -- of our country.
Coming back to Yapi Kredi performance during 2019. As we promised, we are keeping solid and residence levels of liquidity, asset quality and capital fundamentals. In parallel, we have managed to keep the profitability levels with better than peers' yearly evolution despite tough operating environment.
Thanks to continuous improvement in fundamentals and profitability, our stock price increased by around 30%, even higher than that, year-to-date versus 5% increase in banking sector index. I would like to thank you, as all to -- as investors, for your confidence on our performance.
Before starting the representation, I would also like to thank the dedicated workforce of Yapi Kredi for their extensive efforts during this volatile environment and for showing, again, their commitment to the country and to our bank.
Now I am paging to -- I am going to Page 2. Moving to Page 2, we had a strong start to the year through strength in the preprovision profit along with a prudent asset quality approach. We posted, TRY 1.24 billion net profit in the first quarter with 15% quarter-on-quarter growth and maintained at the same levels of the first quarter of last year, which is higher growth than our peers so far.
Our RoTE is at 13.3%, improving around 190 basis points versus last quarter of last year. In terms of asset quality, we are keeping up with a very conservative approach. On top of the front-loaded provisioning last quarter, our cost of risk in the first quarter is at 2.2% level, excluding the FX impact. Together with the FX impact, it reached up to 2.5%. Another important figure to share is our preprovision profit. We posted TRY 3.2 billion of PPP, which -- this is 40% increase year-on-year. Which is again the highest amongst our peers so far. Thanks to our strong PPP performance, which is 5% of our gross loans we are able to manage asset quality rostering without impacting our bottom line or P&L results. We are going to give more details on asset quality in the coming pages.
So now I am page -- I am moving to Page 3. So as I mentioned at the start of the call, performance on the balance sheet supplementals became more important. Therefore, our focus remains on LDR, loan-to-deposit ratio, liquidity and capital. So just to give highlights on these topics. LDR decreased down 103% and TL to -- is 130% levels. [ Liquidity ] levels of the LDR achieved through improvement in especially retail deposits that I should tell that the retail deposit in the last quarters was very much achieved so I'm very much happy to share the results with you. And cautious also, foreign currency lending.
I would also like to add that if you consider merchant payables to our TL LDR, the TL LDR becomes 120. And also the total LDR goes down below 100, down to 98. Also, we are keeping our TL duration [ gap of ] 2 months' levels. And also foreign currency duration gap minus 50 days, around minus 50 -- 56 days.
Liquidity during first quarter, we have further improved liquidity levels thanks to our solid risk management rules, procedures, timely execution of the business decisions. Yapi Kredi was able to position itself in a positive way in this blurry environment. We have executed around TRY 2 billion of new funding. This is new funding, TRY 2 billion, year-to-date through a Tier 1 senior bond, senior unsecured -- securitizations, covered bonds and bilateral funding as well.
In terms of liquidity, we have comfortable position, very comfortable, if I may say so. Our quarterly average total LCR at 152%, around 16% which is higher -- 2018. [ FC ] LCR is also at around 400 level. Our short-term foreign currency liquidity is around $11 million up to 1 month. Just to mention our upcoming runoffs are just $4 million in 2019 this year.
In terms of capital, we continue to generate internal capital by 41 basis points quarterly due to TL depreciation and also negative FX of the TL interest rate, especially on the last week of March, which is affecting minus 63 basis points. So that we had a -- coupled with the yearly flat increase from the operation and its component, which is affecting minus 20 basis points. Our CET1 ratio decreased by 42 basis points to 11%, which is still 250 basis points higher than the regulatory limits.
As all of you know, and you would recall I'm sure, that we are committed to keep minimum 200 basis points against our limits. This is -- I'm referring to the Capital Markets Day that we had last year in May. So when we look at Tier 1 evolution, there is 12.1% as of first quarter, thanks to a positive impact also issuance of the Tier 1. And also in terms of CAR, capital adequacy ratio, we reached to 15% in the first quarter with an improvement of 19 basis points.
Now I'm leaving the floor to Niccoló Ubertalli for the details of our first quarter results.
Thank you very much, Gökhan. Good afternoon, everybody, and I would move directly to Page 4. Page 4. So total loan growth above market, 5% year-to-date versus 3% in the private banks, driven mainly by TL loans. If we look at loan growth FX adjusted, slightly above market, 1% versus flat. In terms of the lower part of the slide, in terms of the total breakdown, there's no major changes compared to last quarter. Let's move to Page #5 where we have the deposits. In terms of deposits, we have a very strong quarter with a growth year-over-year of 29% of deposit versus 19% private bank. And year-to-date, 8% versus 6% private banks. This is also led by TL deposits growing year-over-year at 6%, which is 3x private banks. While year-to-date, with no decrease versus 5% decrease of private banks.
If we look at the deposit market share, we have grown totally 11 bps deposit market share. But more important, if we look at individual TL time deposit up 47. And even more important, individual TL demand deposits plus 89 basis points.
As you know, one of the pillars in our Capital Market Day was the restructuring of our deposit base toward smaller and more sticky deposits. Well, if you look at the chart on the right side, our demand deposits have grown 1 percentage point and our retail deposits have grown 3 percentage points. So we are moving in the direction we declared during the Capital Market Day, and we are happy with the results despite the difficult conditions.
Let's move now to Page #6 regarding revenues. On Page #6, we can see that our revenues are now at TRY 4.9 billion, 32% growth year-over-year and 9% growth quarter-over-quarter. In terms of core revenue margin, that is another piece of our Capital Market Day discussion, we are at 4.8%. That is down year over year but totally linked to CPI inflation. If we have similar CPI inflation, we would have been 21 bps above. But even with a 4.8% core revenue margin, this is above the Capital Market Day target that we put for the bank.
If we look at Page #7, in terms of NIM, NIM has gone up to 3.3%, 15 basis points year-over-year. And cumulative was 3.3%, it's down 75 basis points, but once again, if we had -- this is fully due to CPI linker's, the NIM would be high up 20 bps if we had the same inflation base. Let's look now on Page 8 at the spread. So we have been repricing very nicely our loans. If you see in fact, the spread on the loans are going up 100 basis points on TL and are normalized and going up in total. Our deposit cost as we were predicting last quarter has peaked during the last quarter and now it's going down during this quarter, and this has created a normalization of the spread exactly as we predicted during the last quarter. So the normalization is happening. And now we have a loan-to-deposit spread of 4.5%.
Now if we look on Page 9 at the fees. Fees is another part -- integral part of our strategy. We have been growing 29% our fees year-over-year. And not only that's been growing but we also are very well diversified those with very strong performance on transactional banking, money transfer up 69% year-over-year, bancassurance up 129% and payment system up 51%. So the fee base is strong, resilient and our strategy is paying off.
Let's move into costs. Once again, we have been growing well below inflation year-over-year at 18%, demonstrating that our IT investments are paying off and our strategy on cost containment is paying off. Cost income are down now at 34.9% and cumulative debt up 69 basis points, but yet to an extremely good level if you consider that the 34.9%, it does not consider the revenues as related to [ hedge ] ECL and collection. So it would be even lower than that. But on a homogeneous basis, 34.9% is a very strong result that the bank has been delivering and achieving once again. Let's look at Page 10, Digital. As you know, very important because it's one of the main drivers of our cost. We have Page 11, we have the digital. And on Page 11, you can see number of digital customers up at 5.68 million customers, up 200,000 customers with a penetration of digital products at 64%.
In terms of main products sold, we're at 34%, sold via digital channel is going up and we have already explained several times our big advantage we get on cost moving towards digital.
On the right side of the slide, you have the transaction per channels and we have the same trend continuing. We have branch transactions going down 10% while digital transaction's still going up 14% and ATM transactions going up 11%. Once again, a base for our sustainability of our cost performance.
Let's move on Page 12, cost of risk. Quarterly, our cost of risk has gone down from 4.48% to 2.19% and cumulatively down 37 basis points. This was due, as you know, by a conservative and prudential approach during the 4Q due to the volatility we were prudentially booking in advance and this is the difference.
On the cost of risk composition, it's self-explanatory. You can see how it's composed between stage 1, 2 and 3 and the collection.
Let's look more interesting on Page 13, the coverages. Overall coverage on the left side of the slide, 6.2% is the highest coverage among peers.
On stage 1, we have 0.6% coverage, the highest among peers. And on stage 3, we have 72% coverage, the highest among peers. In stage 2, we are at 11.2% overall. It's the second highest among peers, yet our volumes went up from 14.5% of total to 15.4%. So overall, Yapi Kredi portfolio is the highest coverage portfolio in the banking system. Now we look at Page 2 (sic) [ Page 13 ] in detail. We have 74% is due to significant increase of risk, 18% restructuring, 8% past due. I want to underline that all our restructuring are in stage 2 for Yapi Kredi. So the full restructuring are always good for us in stage 2. You don't have restructuring in stage 1 or stage 3. They are in stage 2. Page 14. As we did last quarter and we want to continue last quarter, [ we want to ] go into some detail on the energy loans and the real estate loans. So as we told you, the total loans on Page 2 are 15.4% for the bank with a coverage of 11%. While for energy loans, the [ funds ] go up at 42% and the cost is up 20% versus the average of the bank at 13% coverage.
If you look on the right side of the chart, on the top right side, the most risky parts, coal-fired and natural gas, at that stage the stage 2 ratio go up to 61%, that is 4x the total loan. And the coverage go up at 18.2%. So what we're trying to say is that the energy sector is more covered than the average portfolio. And within the energy sector, the riskiest part is -- at this stage even more covered with an 18.2% coverage with 61% bonds.
On the real estate, the same kind of picture. We have usual stage 2 loans is 15.4% as we state. For real estate, it's 22.9% and this coverage is at 13.9% versus 11.2%. Once again, conservatively covering the most risky portfolios. Let's now move to Page 15 in terms of capital. During our Capital Market Day, we positioned the bank stating that we want to be 200 basis points above in terms of CET1. And we are today at 240 basis points above. So we are well within our Capital Market Day guidance. And as Gökhan said, all our capital ratios are above 200 basis points.
So this second point that we'll underline, that Gökhan already stated at the beginning, the bank is still capital accretive, is still capital generating. Obviously, it was a tough quarter but this passed the base in terms of microeconomics, we were above our Capital Market Day target on CET1 with 240 basis points above our CET1 level. I would now very quickly go through the maintaining -- the guidance. The guidance is maintained. There may be some upside potential on the revenue side but it's early to say. But at this stage, we would confirm our guidance.
That said, I would leave the conclusion to our CEO, Gökhan.
Thank you, Niccolo. Thank you very much. Just to summarize what we said. Key takeaways. We prioritize the liquidity and we were very much active in the markets. So TRY 2 billion of funding -- new funding, which is a Tier 1, senior bonds, senior unsecured securitization, the other financials, et cetera. So we gained market share, especially at -- for the segments that we very much focus on, which is TL loans, individual fund and also demand deposit side.
Also, we delivered year-on-year improvement in revenue margins, net interest margins, loan-to-deposit spreads. It was part of the strategy just to focus on small tickets, widespread volume generation and also transaction and banking activities. And we continue to well manage also the cost structure, this is the -- one of the strongest arms of us. And sustain prudent and [ cautious ] provisioning actions on asset quality.
Going forward, we will ensure the continuation of this performance while maintaining also our strong fundamentals. We are, as you are aware, we have now very much the customer centric approach, responsible growth and also sustainable revenue generation as through valuated services. With our strong branch, rich organizational culture, fully committed workforce and support of our shareholders, both controlling and [ in the credits ], we will seize the opportunities ahead of us and reach to greater achievements, which will also contribute to our country's economy.
I would like to take this occasion to extend my thanks to our stakeholders who have stood by us with trust and support and to our dedicated employees who contributed to the achievements of our bank. On behalf of our whole team, I would like to thank you all for joining our call.
And we can now take your questions.
[Operator Instructions] Our first question comes from Deniz Gasimli from Goldman Sachs.
I have 2 questions from my side. One regarding your cost of risk, the -- I mean, this CoR, net cost of risk's at 219 basis points versus your guidance of [ slightly ] higher basis points. So my question is -- does the first quarter maybe make you more comfortable that full year consolidated income or significant growth in higher basis points?
And just in terms of cost of risk, how much of this cost of risk, what was the contribution of -- if there was any contribution for provisioning for the [ OpEx ] exposure as some of your peers seek provision for the [ Otash ] loan, which was, I mean, the remaining portion of the [ Otash ] loan. Is there any mark-to-market adjustment in the provisioning line for that? That would be my first question.
And second would be on the margin trend. I mean this quarter we saw very strong improvement in Turkish lira spreads driven by the improvement in deposit costs but also an ongoing improvement in loan yields. I mean your loan yields have been expanding since beginning of 2018. A consistent message. If you could remind us what's driving this repricing on the loan yield side in a time when perhaps there is some pressure on loan yields and loan yields that are just flat in the sector? And are you confident that you could see further loan yield repricing in the future quarters?
And also as the -- I think what we're seeing now is an increase in Turkish lira deposit costs for the sector starting from the second quarter. Do you see that happening for Yapi Kredi as well? And if so, what's your view on Turkish lira loan deposit spreads if your deposit costs increase and whether you can offset this through a loan yield?
So starting with the first question about the cost of risk. We have a 2019 guidance to have a cost of risk at below 300. We believe that there could be an upside risk on that. When you refer to that one -- 2.19 is without any FX impact for the provision onset that we have in stage 1 and stage 2. When we refer to our 2019 guidelines, is the stated one. So you have to consider for the first quarter, 2.5%.
Regarding [ Otash ], we are considering [ Otash ] as a loan and the coverage that we have is something around 10%. We didn't increase this coverage during the first Q.
And for the second part of the question, Deniz, for the loan's repricing, it is not only repricing, actually, it's change of the mix where we are focusing more, as you know from the beginning of last year, we're focusing more on the small tickets -- smaller tickets which is basically the upper side of the senior sector and the lower side of the commercial side. And we are also positioning on our field accordingly, with the mix branch approach and to touch -- and with the proximity to the customers. So that's why this is the more lucrative part of this segment. That's why the margins on this segment, because of this mix, is -- were the higher margins. And also on top of this, on the individual side, we are seeing higher margins, on the individual segment as well. So these segments that we are focusing rather than focusing more on the very, very blue-chip where we have the very tight margin if any. So this was the first answer to your question, I think. And for the second part, for the TL deposit side, yes, especially starting from last week, we are seeing that the TL deposit rate's slightly going up. That we are seeing, unfortunately. And it might be the case that it might continue for some time and it might have a negative impact on our margins for the second quarter. But after the third quarter, we should be able to reprice everything as the duration gap we are having only 2 months for the TL. In fact we should be able to reprice everything accordingly. So that's why at the moment, for the second quarter, it will be hitting us maybe in some part of the third quarter but we will be repricing accordingly, and we will be seeing better margins by the end of the third quarter. This is what we believe in.
So just to confirm, you expect maybe weaker margins in the second quarter but some improvement in third quarter if I heard correctly.
Yes. Towards the end of the third quarter, we should be able to reprice everything so that on our balance sheet we should be able to perform better.
Our next question comes from Ovunc Gursoy from TEB/BNP.
I have a couple of questions. The first one is about the -- about your 2019 guidance. Do you -- would you revise enough the lines in your guidance because when I'm looking at your TRY loan -- loan growth, for example, it is already almost at your guided targets and -- for example, fees, you have beaten your guidance. So shall we expect any revision in your guidance?
And the second one is, how do you see the loan demand going forward apart from this -- apart from CGF mechanism, how -- especially on the commercial and corporate side, how it evolves from your point of view?
And my last question will be about syndication loans. You have one in May. You have a [ role ]. Maybe you are now in the market, I don't know. But how do you see the syndicated loan markets, please?
I'll just answer on the guidance. We stated we are -- at this stage, we are confirming the guidance. Maybe with an upside potential on the revenues, but at this stage, we are confirming the guidance. I leave the other questions to our CEO.
So loan demand is not so strong, I should confirm. That's why we are confirming only the guidance that we are giving to you. Yes, there have been some tailwinds from the CGF side for the TL loan growth but maybe there might be another phase of the CGFs maybe in June. That we do not know at the moment. So if so, that might be an increase. But apart from this, we do not see strong loan growth either from the commercial side or the -- from the -- [ price ] the individual site as well. So I think -- so I answered the loan demand and also the CGF side. Most probably, it's not certain yet, but not in May. Most probably maybe in June.
For the syndication part, we are, yes, on the market. And our -- we'll be paying back our syndication. Redemption is on the 20th of May. We are on the market. So far we do not see any difficulty, even as we also communicated with the market, we would like to rollover less than what we have as TRY 1.35 billion, I think, as far as the redemption. We will be rolling less. Most probably it should be around 75% or so. So this is what we guided also when we are on the markets.
So what could be the size of this potential CGF you expect in June?
So we do not have anything concrete yet. It should be around TRY 20 billion, TRY 25 billion, I think, not more than that.
Our next question comes from Alan Webborn from Société Générale.
Are you now seeing the dollarization in your deposit base and do you think that is going to continue, I mean, it clearly with the short-term weakness again in the lira, it's hard to judge. But do you think that the sort of what you saw in the market in Q1 was quite exceptional and that the trend is now back towards foreign currency -- sorry, back towards local currency deposits. What's your feeling about the market trend and what do you expect to see from the point of view of Yapi? That was 1 question. And I guess, do you think that the yield or the cost of FX deposits was exceptionally low in the first quarter. That would be the one question I would have.
And the second one would be, clearly, you've been very successful in your mix in terms of loan yields. And obviously, there's some repricing in there. What -- do you think there's room to keep increasing pricing without causing a further reduction in -- particularly on the retail side. When does the sort of price sensitivity start to be negative because at the moment, everybody seems to think that you can just reprice and things will carry on. But do you get to a point where the sensitivity is such that you'll start impacting volumes, at least in the short term? I'd be interested in your view on that.
Alan, so first about dollarization. Yes, we see a dedollarization. So it's not a feeling actually, we are seeing that from the numbers, daily numbers. It [ started ] but not very heavily, I must admit. Slightly that the individuals especially turning to TL from the dollar side. But it's not heavy, so it is obvious, but it's not heavy -- so for the time being. So let's see how it evolves. And that's why you asked about the cost of fundings. [ Slight ] cost of funding, FX side, I think it should continue to be as well as we are heading. So if you ask me, it's still very expensive, by the way, because we are staying over LIBOR at the moment. But still, compared to previous years, yes, it is -- funding is cheaper.
And looking at loan yields and the business mix, yes we are very much working on that and the repricing is not [ ended ] yet. So this is how we see it. It's not the only the commercial loans as I mentioned, this is also the individual loans we are granting. This is kind of general-purpose loans or the car loans that we are landing and we are eager to land also because we have higher margins. That end, we will continue to land on those products.
So because -- so in terms of -- this is the need of the customer. So we cannot tell, so we are landing only on one product and we are not giving another product to the customer. So it is the need of the customer and when we are landing -- when we are working with the customers. So it is a total bunch of products. So it constitutes of the loan side as well as the demand deposit side or the time deposit side. We are serving full-fledged, that's why we do not see that it will be going down. No.
Our next question comes from [indiscernible] from UBS.
I have a question about the GAAP, which I see on interest income in your P&L and cash flow, which amounted to 16% this quarter. Could you please provide more color on factors which contributed to it, including the impact from CPI linker's? And would you be able to provide us this information for full year 2018 as well if possible?
Hello. Good afternoon to everyone. Regarding your question, for the when you compare the cash flow versus the P&L, now it is the famous comparison as we are all doing. And you're only able to see in the cash flow total interest income, which includes the marketable securities impact. And within the total, yes, there is 16% difference which is mainly coming from securities.
If you exclude securities impact, just on the loan part, the ratio becomes around 93% versus 100%. And this is just 7% of GAAP on a quarterly basis. But we can share with you the detailed calculation afterwards. But in the summary, we can't give this information.
Okay. But what about the full year [ 2019 ]. So this 7%, this is only for first quarter this year, right?
In terms of full year, the impact is somehow the same than the [ homogeneous ] comparison.
Our next question comes from Gabor Kemeny from Autonomous Research.
I have a question on your fee income, please. After an impressive growth in the first quarter, can you elaborate a bit more on the drivers and particularly, to what extent do you think the rising interchange fees have been driving your fee income?
And do you see any further room to introduce or raise fees where you had to charge less than the other banks earlier?
And perhaps a related question. Any color on what drove the drop in your assets under management in the first quarter relative to end of 2018?
Gabor, regarding your first question. When we look at the fee income drivers, easy to -- for everyone easy to follow on Page 9. It is mainly coming from our transactional banking activities [indiscernible].
And on the money transfer, we have around 17% year-on-year growth with a quarter growth of 24. And also bancassurance is growing by 129%. Therefore, the main driver is to be able to increase our transaction banking activities. Also together with the payment systems' strong fee growth generation.
For the upcoming period, based on our micro scenario assumptions in a decreasing [indiscernible] environment, you may see decrease coming from the payment system fees [indiscernible] landing pages fees, but these are going [ to trunk ] compared to market also from our part.
Gabor, just to remember, this was one of the pillars, as you remember well, of the Capital Market Day, the diversification of the fee. And you're seeing now the beginning of the result of the work we've done. So we're happy with it, and as we stated, we believe it is a resilient number. It is not -- there's no one offs on there.
And regarding the second question, assets under management change. When it was just specific to mutual funds, as you know, in the market, there was increase on the money market funds, especially from the TL part as we all you know. But as Yapi Kredi we were able to keep our customers in TL deposits and we did not need to increase the TL money market funds. And therefore compared to market fees were slow in the mutual funds that we choose to have it in our deposit base. But even by keeping them in our deposit base, we were able to decrease our cost of funding. It was an important success in the first quarter from our point of view.
[Operator Instructions] We have no further audio questions. Just because, we can now switch to written Q&A.
So hello, everyone. So there are a couple of questions, one from [ Pierre ]. It's, what is the size of your loans who have been extended or ended? On Page 13, you can see just 18% for our safety loans are restructured. As we have already mentioned, in 2018 we are seeing some shift from significant increase in Credit Suisse to Phase 2. These might continue accordingly.
And the second question is what is the net FX portfolio of the bank? We do not carry an FX position. So 0. Of course, we had just a small loan just to hedge our ECL.
What is the evolution of FX NPL deposits? As you can see on Page 5 where we shared with you the details, so as [indiscernible] and Niccolo mentioned, in this environment we have seen some dollarization on the market, now it's started to reverse. So we are seeing a slow shift to Turkish lira.
And one question is, within the details of the cleanup of the banking system some construction energy problems, so your company would you like to comment on that, the construct on energy?
So for this, the ministers announced that there will be 2 funds, 2 separate funds. One for the energy and one for the construction. But so far, we don't have the details yet. The Bank Association is also working on that, but once we have more color on that, we'll be sharing that with you.
So the capital ratio [indiscernible] [ 10% would be ] taken, 50 basis points -- around 50 basis points on the capital ratios. And the average maturity of the TRY 6.9 billion is around 3 years and 6 months of grace period. And so -- but most probably, you know all the details there are perfectly in line with the [ late ] regulation.
So one question is about the extra -- excess liquidity, I think, from [ Valentina ]. Excess liquidity, where we are utilizing it. We are utilizing it for many aspects. Also to create -- to achieve earlier funding where it's possible. And of course, the central bank is one of the sources that we utilize from time to time as we are being opportunistic there.
And just one last question. Where do you see price of state bank on your market share especially in credit scores?
Actually, as you can see from our resource we maintained our market share in terms of credit scores, and we are not seeing any significant [ matter ] from them and our main aim is yes, we will maintain our market share and leadership on credit scores.
We can conclude. And I thank you, again, also the team, that you participated. I thank you. Bye.
This concludes today's conference call. Thank you for your participation. You may now disconnect.