Operator

Ladies and gentlemen, welcome to Isbank First Quarter 2026 Financial Results Audio Webcast. Today, our presenters will be, Ms. Ebru Ozsuca, Deputy Chief Executive; Mr. Mehmet Türk, CFO; Ms. Nilgun Osman, Head of IR and Sustainability. The presentation will be followed by a Q&A session. [Operator Instructions] Now I hand over to our presenters.

Ebru Ozsuca
Deputy Chief Executive

Good evening. Welcome to our first quarter earnings presentation. This is Ebru speaking. We appreciate you joining us today. Before we go into the details, I want to provide a high-level summary of the macro environment and our performance during the period. In March and April, after the rising geopolitical uncertainties and higher energy prices, year-end inflation and GDP growth expectations have slightly shifted. On the other hand, the monthly inflation in March became the lowest March figure recorded in the last 5 years, partly due to the support of the sliding scale system in easing the upward impact on energy prices. However, inflation in April, as announced yesterday, was realized higher than expectations, confirming short-term pressures mainly driven by the increased energy costs.

As a natural consequence of the global environment, there was some initial FX demand mainly coming from offshore participants, which put some pressure on FX reserves. Subsequently, as of April, foreign residents portfolio inflows resumed, which supported the recovery in Central Bank's reserve position. With the escalation of geopolitical tension, CBRT immediately suspended 1-week repo transactions and moved the effective funding rate to 40%, which is the upper band of the interest rate corridor. Given that