Q1 2020 Earnings Call

[music].

Good morning, and welcome to Intercorp financial services first quarter 2020 conference call.

All lines have been placed on mute to prevent any background noise.

After the presentation well open the floor for questions.

At that time instructions will be even after the procedure to follow if he would like to ask a question.

It is now my pleasure to tropical overthrow of high bar, how I advise corporate communication.

Sir please begin.

Thank you all good morning, everyone on today's call you go quarter financial services will discuss its first quarter 2020 on it.

We're very pleased to have we though you told me a pretty big for young <unk>, Chief Executive officer offering their corporate jobs is because we can look a cellphone chief financial officer, often difficult financial services. We said once I know my father, Chief Executive Officer, Delphine, <unk> I'm used to blow fill rate to chief Executive officer in 30.

They wouldn't be discussing the resold the what distributed by the company guests are they.

Maybe thoughtful a webcast presentation to accompany piece we sold if you then we see if a copy of the presentation or there is.

He was notably level on the company's what are your face up I'm happy to download a copy.

<unk> for any reason if you need any see Sicily. Please call. They buy from New York I too want to Photofix basics I see.

I would like to remind you that today's call. If we investors on I don't hold me before so from the immediate when do we take it.

Please be advised stepped forward looking statements may be made during this conference call. These might account for the future economic circumstances industry conditions, the company future performance or for Nigel we sold.

Such statements May RBC, several assumptions or factors that could change goes in October so too much really before the court expectations.

The company note all forward looking statements. Please refer to take whatever report issued yesterday.

It's not only patients will turn the corner, but let me step we've really pick up a young chief Executive officer, He said offering them for financial services for his presentation.

Good for you I know please go ahead Sir.

You are such that.

Thank you everyone.

Good morning, welcome to such a church quadrant people actually Jordan in school.

I would think that subject you preclinical and again, reaching that old Republic, which included a good so a bit you'd be specifically changed.

Each could you help the opportunity to you, but its purchase volume unsold lots to provide an update.

Let's take it.

Okay, that's contributed something which I do hope I'm, sorry, I'm, calling circumstances cultural will touch upon the mid metric with the government that's taken they see situation.

You mentioned you know a couple we'd all be called that leaves a couple of weeks ago Oh, They will get you to ensure that we're still huge driver you make that.

You could do you need a very good stuff you continue to be should equal dates.

Unfortunately, the number of people back to.

Continues to rise in the country continues under emergency state with numbers.

So far enough, although if you keep our big let me touch each has been extended for two weeks such as well.

The government or to go do you called them.

Okay.

One second only to date for go.

So they should put GBP could perhaps or did you get used to change.

Hi, good margins fight bargains tricky, but should be discussed like because they'll be ovens.

That's what you know the beach caught you by the banking system and I.

No. The good children, she doesn't look up.

But we should the government auctions there used to quite a bit we did the most aggressively in the region.

But sluggish macroeconomic fundamentals got didn't close enjoy.

Gross 30 years.

Well judging the bird <unk> <unk>.

Yes, good utilization and more importantly recovery once or twice you said.

No that's going to take some time for the country at the corner, which we called it.

<unk> personal platform is ready to take a unique role can be coffee the recovery brushes multiple you adopt those drugs.

To be got even more valuable than like <unk>.

Under the new normal, but you know lights up it was sold for the called the momentum that hockey bucket buttons.

You bet committed to execute our long term structure you don't among.

In the approval.

We continue providing high quality financial services to our costumers contribute to the country sustainable growth Baldry empowering well dubious puts you I'm not sure would be.

No.

Good luck I suffer.

You have followed suit.

Thank you because anything.

Good morning, everybody. He went home again either.

He said sort of workers, who felt for news rainy and cold.

Game play where do you think you all before sharing be Gaz de school in Cold you in yard Mel Watt Ark series B from where in that country, you anything you could be going from.

They sign.

I wouldn't be patients.

Which include Hi.

Well, we see great shouldn't be fix what could be so VP in films, she would take away could be.

Hi nights.

I see the record financial services.

Reach 145 million solid Walker, and I really reach 46% I frame, how you're going to be through can you get a bank in impacts I mean, that's me I mean, the needle or anything.

I think their bank that could be recruiting people once a year on year, mainly due to her your formation and I really want.

HM.

The new turning back to Gabi Green Bean, having regular snake didn't get very well.

Typing in three key banking indicators continued growth you, we could be bogot and market share.

That being said in person.

Yeah.

No.

Yes.

They shouldn't repeat which now we'll have some reports there year over year.

Yeah, he's going to hurt you something we chose Nick.

All badge.

176%.

In the core equity tier one ratio caffeine <unk> hundred 80 basis points year over year for certain instances like how you're thinking.

You can see needle want give you some affected by your garden.

Well you.

<unk> Green Blue Fin 48 cents into worker you once a year, mainly bleeding reinsurance business.

We continue to be the market eating or anything you could swing set in place.

Marketshare.

Yeah.

All you know you hopefully two thirds very.

For two weeks from 1%, it's moving to where no one parent I can certainly be just wants it.

I think their legal wondering what were also affected.

Being neutral for you.

He pen.

Right.

Which makes me stable at 1%, yes, you're under management, because we want there to walk you through the mark to market Despite real Nick.

Now then.

Well the pricing action on flights.

And.

Today, we I completely de Vinci moms lump that we cheese sets and finish by may well be grateful.

She needs much 15, Oh, we sit there not feared.

Our kids pharmacy in five years compared with it being should I be Walter.

He said he remains strong.

That's already been do they seem so you have there.

Thank you.

That's it locally.

Oh, you Scott you wouldn't be copied 19, I believe we try to make me feel there guys for me messages that we would like but keep in mind.

Fair, we start up in fact, we supposed to be I'm pregnant population. These response.

Thank you guaranteed the complete deal I appreciate.

Second most of the actions we have taken you can get back weak I think smoking Oh, yeah, I would people and I would correct.

It probably would be crazy I haven't seen people.

We have reinforced <unk> patent that will be too long, if our businesses nor does it say, yes second month become.

We believe our key solvency and liquidity because I have some men suffering the most finally, we see on what you need to fiber an extraordinary digital adoption by our customers under the new normal obligations supported by being debts and instead, we have like during the last year's B R. D.

Well, it's like cheap we actually a summary of the comprehensive government support program, which excludes either one of the most at risk, none or very truck and loss events.

Let me sorry, when compared to other countries.

He's willing to support has been increased order at least not they asked we felt that would be exchange won't be alone.

In the first week of there.

Gordon I know I support program, we see a duck sorry be it we've been very within Iran twice the pace of different being GDP is websites, we see economic seems blank led by both the need to that's going to meet into Central Bank.

Chuck to fit the cold it might be outbreak.

Included in there just to make choices for because people.

And make sure aiding us helping low income families in companies maybe gets back a bit program was the upgrade and we Easter and they'll be on solid Amy actually helping companies. It's fun there what you've got compared to other Guam disruption in there.

These program has been expanded 60 billion slowly we that's such a great no abrupt absorbing <unk> companies either exchange <unk> balance sheet.

Yes, that's more of these programs fiber basket indifferent to page <unk>.

These extinction yogurt and Golden it's important programs we.

Already so it seems there saying that they were getting <unk>.

We couldn't be more work very closely with that needs to five years. It seems like bank isn't very dented Pete in bank you build up to manage the Greg Gordon you make me she was needed. He I also feel team to go over me a challenging to distribute media companies be above mentioned financial aid.

On page, it's better to name, we actually I Beach family.

Turning mutual staking see beginning of the crisis.

It's fairly much we started taking actions to change that we believe what's going to be acetic pricing, even before being well there may be going to state of emergency on March 16.

Based on I'd be who's going to meet the program, we establish a graces committing the unique needs to closely multi dose eight strong involved BP stakeholders.

So so people who are operation beauty people like you.

Maybe I'll give you some channels seeking some deep.

Our communication stoppages that nothing itself.

We view up a weekend commercial flights.

Well Youre Nick.

Thank you credit facilities for again.

Yeah, I don't I said, moving we pulled me something agreed me. It's all these people see shows in eight Mitchell's football something.

Before I close would always take him on the close coordination we got a bogey.

Well it on board.

I mean, there, but one of the can focus eats up.

Some of the actions take it includes.

Thank you gentlemen, but lots of course is helpful.

Yeah that makes a pump optical mutational lungs in options for employee engagement.

We were able to pick median income Watson for most football soccer people I've been called which has made it really like I mean, that's Newport Beach to happen. So today, we are able to cooperate with 98 cents, a meaningful stops and 50% of how close they sort of working from home I wish him well, possibly use brunch <unk>.

Following bother me problems.

And as such we've used by 50% nuclease per branch well means even day, that's a loan social responsibility for utilization you mean, you might get we spoke on page one of the groups and see no actual copying taking more called samples.

Got it okay, I, usually I mean nations, taking what we needed to go and before we can kind of easily use it seems to be kept ideally keeps required.

Good for people in Gulf, If it's an issue home office for all area and we think that deployment of new budgets. That's good anyway, you can probably would be.

If it used to corporation strong we try to stop me can you brought that comes we'll be was going to really be under the current circumstances and faster together you can see good luck on Facebook and we have reinforced our operational stuff off 50 to block the volume of lungs.

Steadily in like the up and movie why my Akacias under our credit facilities problem.

We've got enough because that's not yet we talk the money for their contributions he was having a line in day. He stopped as we get richer keeping speech in Monique and reinforcing flush supply was bunch of 18.

Even but yes, I see the body shops in the government.

Money can get buttoning up on population.

I know you will know that music <unk> cyber security threats across regions would be would then we'd have to be there yet we do reinforcing our site side, because we think well now with IP networks, including the money told me. He felt stopped <unk>, where do you want on there by our cyber self support we have also been very astute mesabi casting whats going.

Yes, I know its own these new that's illegal lighting and building security broken culturally they use walking from home.

I would be can you should try me I'm picking a baby bonds and walk you think would only be golf the financial see people deems to operate at the top vehicle see there are some strange I needed to public I'm cheap, but also the Gulf nation, we are supporting the government and getting huge love the before a package if you live on their population.

Probably not quite nice on stores, we opened the not what's changed I mean, we got we travel around to find even 20 sites I mentioned, so oh right.

Oh, the so called any sheets, besides maybe but having said 87 something called Blanche people are working or never taken scheme. It's safe to say I don't have a great location or maybe probably we talked me good stuff to make a faster cheaper blank by 50% following socially responsible particles.

I think there over 18 hours have always a change we have increased operational some onetime their native content, a nice language, there, which equates without increasing philcox hit them.

We converted states people stubborn for these new role.

We also I do Pakistan for patient flow into the Leaseholds looking sure. We are properly popping a cold chain. So you can get sequel, Jostle occasionally you'll see that come true.

<unk>.

Finally, I'll begin by China's <unk> op income Bunking a lot to continue they are feeling that cost or what do you know <unk> that's easy in Spain.

We have to be sites, both a wonderful job and shipping we'd have to be a bit speech I landed login meaningful long forgotten news, we have to do what they would problems and how well we decided I think you have communications to which we have flows through our customers.

Well, that's something we outdoor lighting like how to get something you get done solution to be able to wiki globally financial aid has its something we thought he which when discussing them up.

Now, let's talk about maybe Gleeson told people see shows a strong income mainly for the call these mines and stuff.

Definitely we have taken several measures to maintain solid equally wages. After the love them. We travelled they exhibit a solid build up liquidity such up new sites sold its funding from things like buying a new build out finally from me, they're not somebody bought a location also we show how getting sweep and 4%.

At the end of life.

No they kind of getting 4.6% of the financial keeping up a whole.

We call that is waiting with stable funding ratios remained healthy.

In fact continued to increase a weekend both each day in patent game thinking basis points market share in big walk.

With respect to have probably people patients. We have also picking portland niches to stretching out of pocket.

Such off.

So you can be kept them fictional developing I think it means 75%. Some previously it was 55% displacing core equity tier one ratio and both have gotten valuation impact on cell phone companies I like the first quarter EM.

So let me outcome study facial racial fulghum any thoughts you accept be 55%.

These are both on topic I would show up at the end of March Watson and eat some 16 from one question compared to 14.2% I'll be speaking.

And.

Net income for so certainly why like that.

I could you give a one way so let's talk first thing.

Both of these ratios we've gladly Vicki you make me due to the we gauge will have yet to come to the medium hybrid. So I feel was bought by the end of facelift.

World, but we felt like VSOE strikes in August and if so those seats and are they need money go into bothered she's looking like we'd be happy if anybody.

On slide eight eventually it will go any gevo also kind of following a feature we actually took mortgage banking on one side that said, we would always listening into cold boxes for all of that 77 stop reviews portfolio, we still find by reducing if we keep officials.

We fell short dollar policy should increase our fashionable kunshan yep closely monitoring the livestream collection and was taking of they need to lighten insurance policy called this.

Yes, they do we stopped and backing up and finally, the market things one lump downs.

You bet for patients we can games in the first one thing we are stepping up I'll be shimon themselves hold on I mean, well you could even children's policies.

Got it often seek smoke guard that they needed to instead of buying.

If you don't see adult life will become I mean, there was no exposure to help ensure even tell the Nazis I catch begin life insurance business, Indiana.

There's a little continues to hold up solid south itself was talking about a note that ratio.

The other side they legal ownership publish I mean, I do people meet the every much anything I mean, it's homophobia thoughts of he said he will buy any that focus. Moreover, the communication will be glide each week and always services available raising transloads, we ignore what ILUVIEN.

There was a higher liquidity getting better when compared with <unk> called <unk> levels and so on copies and I think we'll see lunch as wed absolutely, but there won't be with this boy they won't even lots and lots of people fall you either the current policy.

Now, let me comment would be positive impact we at Kovich reduces the love bouncing samples of situation of banking DM bonds.

These people.

So from the lung in our efforts to boost the use of beach.

We have seen an acceleration of how big that indicate to us as shown in slide nine.

We just got to do so awful lot of 69% up from 57 cents in one year ago in fact wage 78% until the end of phase.

And that there can be you've gotten much we checked values have not use branches what goes back say with their and younger age who use biggest that channel. That's 80 any postponed and agent all before crashing in Russia has reached 42% up from 22 things one year ago intact Leach.

2% as of the interface.

We get that faith voice it seemed like recruiting please.

A.

<unk>, they have degrees and you're going to sleep new safety weakness.

Oh investments to be lucky that could they be during the last year definitely taking advantage of work for cracks too much.

Operations I haven't the crime peer companies.

We've seen a huge because even when they need be getting accounts being open. Both will you need was a small businesses seem to settle back down in specialty uniquely actually look down what's exciting I.

At the end of March 44% of New retail segment that was were open beat that.

I'm good same for 70% of weakness.

Compared to 24, and 38 extended one year ago respect.

Maybe just like like I can see show, we take estimates, which journey. One question couple of much above two plus if they want to get to before any thoughts wage he wants us to be able to eight.

These executives so he agreed in the London of retail clients and businesses, we Sabic squeeze made.

Most of which I can see well digital channels.

We talked openly fourth finds more news, we just have weakened saving accounts in business accounts, you have enabled us as much.

The second beans, but make no seems like Dan is leading the P to P payments teacher, among multiple bonds social lung Bose, it's already active eating.

Roughly 800000 fly is only three months for victims of reach you eat they bunk key accounts.

Uh huh.

Instead, we have opened 50000, new account in one week during Q O transit Parsabiv become solution for pay news you know there.

That lever the government financial aid for Felipe and have allowed us to collect their money funds are supposed to be Debbie I believe you've been having to go to bank branches.

We believe these speaking you I promise you need it to two factors on one side the extension of video and she doesn't accelerate acceleration will be done in on the other sites they need to happen I found to be able to we see the governance eight package in fact, it bodes for medium and small business just as went after we see that patients.

Some people.

On slide.

Now, let's product launch and look at the quantity but phones.

I would say it would be for tens of $145 walk, though in 286 million solid when excluding them. They got to do but something that was asking about the rule anything.

Now, let's look Watson I really explosive system called <unk>.

Also we operate said, what's obviously impacts from called my team.

Obama diesel areas of 621 million solace in say seems like it's actually idle eating beach, where swap due mainly to de leasing cost we reach rich people spoke extensively before that I spoke to the top line, which was affected by lower out anything they can be weekly.

Both he thinks they do they need variable logistic wants it seemed like walking journey to confuse the tax media solid expectantly negatively impacted by market transform their investment portfolio.

Excuse me that keeps you see in 84 million magazines that sodium and maybe you could say we don't any there you go would factor do they brought fips 44 inch ending I need and solid think walking expect.

Look I revenues were keeping the quarter, mainly like other income somebody's going to win then he won't which decreased 10% enough already basis like view, 0.7% on the eating.

I think Dave I suppose have readiness, what do you need to increase once I can't seem to warfare and 5% Cindy.

Even if it seemed like equaled 1.9, consenting to warfare and 10.3% when compared to the same quarter last year.

You should be racial about your best what's also keep by other income equally seen reach agreement then bases don't seem to support their body see a very low racial at 36 from 4% you get wants it.

He thereby efficiency ratio was 38.8, they're sending to work there.

Josh remain relatively stable ondeck want that indeed do.

For people to 3% versus last year.

The first measures of course them they knew what started to be implemented by the end of match.

We expect to see beginning facts in the niche warfare as we we fast <unk> three months impacts on the mission was we are adopting.

Mean at either decrease can you they can come to the workforce, but nuclease they need it saying bases points India.

We bought at risk adjusted mean show up some degree some sleep on 2% you being equal stuff, we previously mentioned.

Okay, Nice I'd say, we pick the police summer infant, 4% seem to walk one thing 1.66 thinking the year, mainly due to Quinn probably since we do a shop weekly influence watching like volumes over the last two weeks of much.

I'd be children segment gross we slept collection, we pay for lenders are forcing before but between April four Unfortunately, India. We don't need that's my degree to I'm going to 50 basis points can get walk I mean did we are mainly due to that you've got to be back students we named show.

Our wealth management segment actually on the management decreased five for one person going up working age is in 2.2% India in fees were down 8.5%.

<unk> Basi, Greece painful insights I think <unk>.

It wasn't he brings a mainly explained by doing that you've got to be investment book.

On slide 14 isolates went on income debate or even sales reach from doing inserting needle targets. It was 68 million sold its high yield bond deal you probably roughly.

Thank you you threw up before you something thats, a window, which has reduced the blockage of faulty needle told if you look at a GAAP. There's just up 22 wheel knocks on there I am sorry for the different accounting treatment on do you definitely portfolio.

Now that's how I look at each segment's performance NBP talking with the banking CEB segment on slide 16.

We are showing that focus on news already in fact, most of the key banking indicators.

Nation before I mean, we conducted means like being hockey I'd be lying in spoke a lot of guns degrees April two person due to walk through in April one, forcing the new mainly impacted by a reduction in fee income.

Due to some degree stuff starts actually valuable.

On slide 17, we can be both its speed up their gross using beach walk for 5.2%, reaching ideally growth of she seems are saying.

Allowing us to gain candidates and sports market shaping the workforce in 50 basis points market share in the last slugs monk, reaching a wake up so theme from Kent in person.

I'd be bumpy decreased 1.4% and walk up and it's probably if they scoreboard institution like before we move more pocket pension funding from the himself.

You have to bomb, which includes this funding as well as funding from National Bank.

Definitely moved on 40% during the quarter, though as we obtain vote. It does a good from defense My Bison sold it up with Oh Lucky Queen from say anything National Bank Dupont liquidity levels, we wouldn't be in south and adopt some.

I would love to cost of funds have already do 10 basis points and workforce in 30 basis points the yield down to 2.71st thing and we expect further improvements in coastal from gunning both from that redemption of the 200 million brought US no one bond make they.

And so no we're right on the Bolton some decent bump.

Locally Bolton Rachel at 100 people improper, saying you know that people not collateral behind where they falls on the person.

This way short, we feel we get relation becoming mom or even if I can call defeat them up a whole totally participation on wrapped up in new loans, we travel spatial fond du from Samsung. So we wouldn't be showing this way show also excluding those long for comparability purposes.

On slide 18.

Oh really loan growth has recently right after the locked down.

Down to 10% year over year, we've been loans rose, 4.3% in commercial loans Rose 7.4 person.

We continue to grow faster than the market weakness, but we were very case.

Cultures on commercial banking they tend to be because we've got four it's at the end of March when they called it outbreak stops it when we brought didn't manage the balance would be probably always if he previously at that site rather than growing them.

You have led to lucky creeping up both a long Rocketship study by two points you look walk, though we got fable Lockups you read them in a degree some commercial bank.

On Slide 19, let me review some cost loosens up the wrapping up and you go that I'm launch by the gold.

We will equal amounts of this problem, what 30 billion solid progress around sort of private 60000 comp.

There are four different labeling for Florida provided by the government, which go from basic our so called that we get caught boys, 98% called them smaller isn't.

No.

Last month grape nuts, and bolts and my view.

Instead of six month, they have lean to the amount which oh.

Each loan which relates to one local state and often they need them. So.

There are no gotten some four provincially wireless for the balance sheet portion of these loans.

We think the government announced the expansion of the broken up from 60 looks solid leap specific deals to be.

Office May 11.

There, where we never Whipple options that have already taken place caught up with a lot mountain 27 billion saw them or 91% of the or even Duncan problems.

Now we'd be extended nuclear bomb had to be able to a phase 3.1 billion. So august or blood samples to fund, which is slightly about market share in commercial banking all around 9%.

Most of the funds I relate to go up or midsize companies. We won 47 Inbetween 80 per se that on T. buckets, and one for one being one even 90% is that when feedback.

We have already been schools.

Oh.

Couple of today, it will most likely the bulls all that people want to be worth loves it myself easily.

Oh, it's likely to be we wanted to give you an update of the long. We've said this phone calls which have reached 40% of that goes on loan portfolio of device. So yes facing slightly below 33.4 of the two came up a whole.

We presented stand 0.9 deals fall this whole either the Bunking I'm getting 16 deals all it's called the football season.

That's fair that she was plus or something so you got a bunch of be able to watch out for a weaker portfolio is concerned loads. We schedule reached 45% of that we get booked for young all speak some 9 billion solid.

We always phone too long runs its roughly speaking 300000 slot in commercial banking, 24% of the commercial portfolio, because we were stable or or be used all its which going sponsors is too.

Leap more businesses themselves.

But most acute or what scope with a new sites companies he stem cell phones.

On slide 21, we wanted to give you a phrase of the may for for this exposed to probably my thinking.

11% of the portfolio is comprised of loans to small businesses.

Consumer loans themselves inflows things like workforce since you bluecore, possibly button alone band mortgages to self employed works for which we go through that to be the most of spoke about.

At same time tough I, just saw that photographs wages and consumer loan NPL coverage ratio above two kinds of person on the other fine you need to Facebook for there was a 55% of the total loan books and includes corporate midsized companies and consumer loans to the public sector is the heap leach.

Malls that sealy griping or make expose let me tell you we're seeing uncle nationally portfolio only around 3% of the commercial portfolio, either bunk east related to affect that sector, such a long they got to leasing some sports Oriental thing.

On slide 20 to 23000 as opposed to react shows the evolution of that stopped for leases or thoughts on exposure or expect that last.

Glenn shows that the risk profile of the bank has already seen.

Further devaluation before they're up we sold the called it would affect the loss up 70 basis points in the fall for a total bank labor and also both reported and core motion.

We need much stronger and couldn't God, we're tracking an increase of 60 basis points into Clarkson.

He said that we believe this up not that's left shows yet the puts and something that I'm grateful to do they do.

Lumping previously called the Beach walk there due to build schedule in schools and like I.

A large spots of this means that would be for them, but that's why it's coming for the up based on the forward looking Mogas Leach. After March included a GDP forecast with my moves by start, saying, Hey, we asked today.

Class B Oldham, Vice many times that would be for numbers for capacity their lives range from 90 Fives to mine will say people are saying approximately.

Oh, it's like any great fossil fleet.

They just don't seem to Walter in a hands on and then they can spoken to nearly two people, 4% inline with what they usually explain this cost roughly in weakened banking, reaching 5.5% they not 70 basis points than before and 130, they can come to the wheel in commercial banking comfortably reach.

To give up on one something.

50 basis points in the clock on a 90 basis points in big.

Maybe I called it out you raise your core they buy what I find what is so to speak on one side of things from the end of March I don't know hundred 31 cents and one year ago hobbled.

We take all that much Rachel handling 60%.

From 148, that's been one year ago in commercial banking called actuation at 81.6 person.

Down from 93% one do you have all where we had us heikki racial just due to the construction sector company.

On slide 24, we actually do the breakdown of the deal they get increasing expenses up. These first quarter you can see filling the breakdown what drives the yearly growth since 44% our first technology it faces, which do some simple thing, it's stupid things real a year of getting sort of higher I've seen back.

You get done for made sure we brought it in seconds valuable cost related to this strong growth because you got Oh.

Oh, that's being for sale universe.

I'll, let were exposed to view at a rate of three to four person.

Right got to be outbreak of Gabi, making sure we entered the lump that we started working on Monday.

This call cost saving the short them.

Somebody of a golf we grew its difficult to blow what's on such in my goal you often the case of can calculate that expensive invaluable insight you didnt.

On the other can we are taking when they should be good cost, including filing in salary increase leases renegotiation of old contracts, including rentals I speak on drugs and always willing on supply you.

Reduction of discretionary expenses, such as events I see.

And during the month of 18, we have already registered a decrease in golf.

Transportation they've since April 2019.

Exactly five we won't get to show, we really falls to the actions taken.

Okay.

Which is moving fleets over the 2018 headed for 55 cents anything like that said is difficult because you say show that Walter and.

With these factors that ratio also watch these people walk back then and eat get they call. If if if you want to racially like that.

Also the eighth do we have cool that's going to me on the Alexia One board.

Or optional redemption and he along conducting this nicole.

I think these in their distribution will be needed I always thought that that people have Rachel parents that four people went testing of being what they do in Korea, because if you want a waitress painful metaphor you bought back saying, let us he likes to say it really is well above the meeting the Glenn.

Yeah, My Thunder, probably pay but that's all insurance segment results.

Well liked and seven gross new Green April 9% on a whopping basis with growth in almost all business segments. We didn't get a we're making up the market me there and we'll see we'll go to 7.95 for market share.

The first Walker group, we recently April 9%, when it wasn't basis, but because it from 4% on a yearly basis.

They go through everything insurers will probably be before the court there in the near my wife regulated and rather than just increasing this wasn't about remains to be no year over year, maybe explain them active construction.

Exactly.

Through the first for services at the investment portfolio reached 11.8 billion, which we put aside the growth of 5.4, plus there's going to flow through and relatively flat dealing.

We talk from him back maybe the first walk or 130 kilometers, which represents a 4% disorder that when you look investment portfolio down handling system basis points, when a fourth and he can give any base.

On slide.

Well.

We can see instead it was named the pesos commitments that are consumed everything's on the west 35 million saw this.

I people focus isn't as good as compared to you before welfare, mainly explained by interest income generated by a higher I would love to buyers of system company investments. In addition to our reduction moves us exposure related to lower funding costs on both plain deposits and makes them a line of credit.

Let me, but if it seems like income decreased five mean that assortment of 17% of year over year, mainly up to know that nobody else in terms of financial investments in higher cost of gains or losses.

Net income from financial services, Oh, we need them a decrease of 8% when compared to that gave you walked through mainly explained by a base effect because they're both added actually comes in.

During the fourth walk, though I will conclude with probably come due to try and lots of markets or not to them they management and such working.

On a yearly basis and that she can come from financial services increased 10%, mainly explained by how you brokerage fees, which really good trading volumes is there like higher price volatility in client appetite from investment or rebalancing portfolio.

Then you go other income.

Rich I lost 85.8 medium I'd be pleased so far.

You saw this on a quarterly basis in a hands on it so it's really going so listen the yearly basis.

It's a beautiful to mark to market valuations and realized losses on he said he was broken sorry portfolio. During the second half of the Walker, mainly I start with one of the called <unk> magazine outbreak.

He was generated by you they look or what kind of where mind you said I mean.

Meaningfully.

Like 31, instead of the asset under management reached 18 billion. So I guess.

I want for instance person because enough already basis, but I wanted to take let's say the growth on a unit.

The quarterly reduction was mostly related to that made up as much and market valuations I was sort of the called this out.

Any money called if you.

Converts meet younger than creep, what maybe it seems like work on topic, we generated in such a funds asset sensitive, but actually came conventionals Japanese adding to it.

Finally, let's try to look I think on page has raised funding for what it's funky take four ways of beach and meaningful.

On slide 33.

I'm not so lighting died down I'd be fine, leaving the high level of funds nothing of the month become <unk>.

But we wanted to show with some strength that we didn't information that that goblins Macau, India. Swanson said, we are able to make very poor materialize in decline.

We need we'd be able to one thing probably medical stop he doesn't even include Co. contagion in lower gross and obviously latest something agree with me. This is if they sell a bunch of nature and flight to quality people.

We expect lower gross loan volumes due to the slowdown of going into the fighting Apollo's credit Sunbelt <unk>.

Moving to me I keep up they do problem.

We also expect lower revenues no, we're making progress and then come in me due to lower growth in next meeting I didn't show to the loading schedules impacts.

Cost of funds, we like need be goods farther out themselves have lower rates and the already in place for days along with no one bonds.

To that.

Hi, I'm, usually can cost of risk due to that became operational if they portfolio. They will most likely would get the local face to the got something they should be close deployed in the lower activity.

And that's why we thought of all the previously at both mentioned frames, we expect no what profits and that really.

Mainly coming from higher publishers, and you've got some investments already registers.

On slide 34, I want to close the presentation, we've at least some where you guys see messages.

Shares.

It wants to meet their needs and I really.

Are affected by Cablevision instead of bank in negative impact from investments I didn't actually we don't anything.

Checkpoint, we try to nearly as fast response to these friendship and situation and he's response has successfully guaranteed stick on do you need to follow pensions.

Fair most of the actions we have taken didn't get past week has been focused on testing our people and casting as well they found that problem that they have been facing under the current consensus.

Fourth we have reinforced our liquidity in fact I can see shown in all of our business. It you know back to chase the answer I think now become.

We believe our keeps all things equal you seem to take us at strong levels to say demand to them.

Finally, we see opportunities to further extend their deep and adoption by our customers under the new norm I can show she bought good baggy investment that we track deployed during the last two years to be I detect Watson.

Thank you very much now we welcome any questions you might shops.

Thank you at this time of we'll open the floor for your questions first we'll take your questions from the conference call and then the webcast question.

Yeah, I think when my Taski question based pressed to Starkey, Philip I don't want Keith I hear Touchtone phone now.

Questions will be taken in the order in which they are perceived.

If at any time, you would like to remote yourself from the question in queue just press the pound key I.

I guess Cascade question. Please press the star and one is now.

For the webcast keyworth simply click the question Mark button on your web cast player I popped up window will luckier than simply Pecker question in a box actually consent.

It will pause momentarily to compile a list of questioner.

On your first question comes from the line of Ernesto Gabilondo from Bank of America.

Your line is like please proceed with your question.

Probably the morning, originally family killer and good morning, and to the rest of the management team. Thanks for the opportunity and my first question is on the economic outlooks and you don't mention.

People always British pound charges Green line as far as Glen running much 13%, but what would be the progress let alone would it be but there will be construed to reinforce your doctor or your or your assumptions and how should we think about the economic growth next year.

And then my second question is on raw provision charges and of course to risk claims are certainly those co march or your provision charges for the quarter murder to go read my thing on when do you expect to have that being you know reverberations.

Then my last question I mean, it's on the reactive up around so my understanding is it requirements are ready accretive with you.

You can also provide a reactive approach around right. So how much do you estimate with it we don't see real program without your total loan portfolio I'm I'm just for you know how was the selection to assign the red pure programs for banks and of your estimated but could be.

But to your total no interest rate by the incorporation of the Ricky referenced thank you.

Great I missed it which we believe this into muscle use a question.

Oh I live in go on Bad just go to cuts we mentioned this featuring.

The lunch, which you started up money it starts with them like when do you do it.

No.

However, no I'm going to more than.

Nice thing among its Jim and this is evolving.

For a number of reaching two thirds because the company continues to be extended so every two weeks, we're getting them you can comment on the oldest <unk>.

Yeah.

The country's closed to go to jump.

Up to.

So it's good stuff to get where do you.

Yeah.

They have to eat up into the Central Bank took in two different things and.

Hmm and two other perception.

But so far diligence that was simply a bunch trim and I'm very proud of Domino's, presumably.

Those those parameters to can she looks interesting book the show is that this could be.

The government such extended family members, we continued to move.

The fact that the Golden State open because it's a positive news coverage when they show just how much we couldn't be more than ever go to cold stack up to be what do those companies merger conjecture based which im sure you didn't see Houston, but in that in the short term of the economy, we hope it.

I'm Lucky.

Something like that nobody.

We move to.

Mm.

Good day.

They could be an LTV.

But that the government programs, including the do though could exceed them five which I will try to for two who small company.

In the whole bullshit, okay, because at some liquidity is starting to promote.

So that the Golden them continues.

To be pulled me budge like 6 million people with 760, so lifts all boats for visible population lets them.

From the government progresses.

I feel says because it didn't build shoot habit that did it.

To that they'd have to come because I know because the monies that drilling but.

A couple thoughts we can do because he answered them definitely reach deposit people so that some on the beauty bloggers, who.

We will comment on things that maybe they like and blow through that we should start to read that you're not mode. So the impact of them feel more numbers do not that long.

This is going to buyback central bank, and maybe I missed your friends whereby to all the financial institutions, who.

Turning now to and I'd put it can be cookie guns for nothing to sequence.

R&D to tell you really pretty Pennsaid requires is coming on the show checking the structure will take place there's gonna do deserve that stupid to the public companies.

In terms of liquid football there are just the but then.

It's open for everyone today, which is that central bunk, that's an option.

In almost every week for loves.

Honestly they put it afterwards.

Good.

On an amount that they've been openings and speeches come from depending on the limited the gun. So for instance, they say, okay, we help food being sold at auction.

So the 80% buckets, so the bonds coming due this postures, Jim good though not to me that doesn't want to recharge they don't funds.

There's no one.

Lips with them.

Research and has a deep enough men to new customers about how you do have.

And that's really works. So so you have options every day for different buckets, and the bump, but given the posters and they do you get the from general basically new customers once a month due.

Do you.

We take the paperwork to the central them under the new book, So that alone so do they get from the Buck for the part that we've gotten too but.

We can move up like they've niche.

So the principal dissipate.

Thank you all be up to visit I do want.

There's no food should be vehicles could some customers or get drawn between for me go soon.

With me.

But.

You need to make sure that we have demonstrated that you could be running around people for the under which if it works and the probably the government's there's clearly been under stuff is improved but but think about how big a tough it still susceptibility to food food. This sympathetic to say we want to focus more so there's got to kill tumors I didn't catch up you've been struggling but somewhat cooked.

Do you really for Libya's snow that does the mortgage business hours into something from Central bank on something far system.

Moving parts, which ended the year for the government's you have the governments to some some old Ocean Scott has come out of some trucks and buses and group on up to two in the house Princeton dependent on the buckets are undergoing through the deal given him the goal.

Sure no moves in that we've been told me a bit positions and they are and the impact of work you're doing those numbers.

Yeah, Okay, maybe just to the girlfriend, we ought to be fair, Eva and me shoes, and actually so far gene reconstitute medium solace no I was hoping to surf and 30 billion solid yeah nothing no. So.

I mean I've been very meeting, where we were seeing another thing that in fact, Oh gosh on our new small we estimate that something between 20 and 30 basis points in the Gulf apparently up and we know our I'm really no consumer Martin like you're finding that going parts or trend rate below one point Fenton DC.

[laughter] Vinnie I agree with people something that now that they're not producing over them and I can extend it no we need to understand how much more circumspect catch me. When he is how I guess I mean are fed move off funky things have been shown.

If we didn't know so you're not talking reporting to the first one that means that the means then can reach out to see vacancy.

And they don't have to that this would just to pick just sort of whats interrupt.

Let them of the business to the beach, but why do you could it be from question Mr. December and you can continue to do business. So would it would be group as you can imagine they might do most of us in terms of contribution to because there's more interesting obesity and diabetes, who.

To the God Bless you know so clients are they do not big Joseph.

Yeah. So I actually isn't it is very important to continue to look at the bond like I don't know like let's move on snow, we will use or more or.

All.

Racial things seem to cater excluding rep nothing rules governing Fortunately no because it's like this and he's them out there go since youre having.

And then they set the cost of risk and what we have seen these birds warfare.

And it's like I mean more times than they support centers of the polices and we are coming from home why because we are they said before we're making very up.

So basically we work on me so my scenario much worse.

And our you know with girls, the GBP or for around 1% girl, hoping that might be Maryland.

Around 3% to 4% so in that scenario that we got Ryersons change, we're very well.

So basically by changes in school of listen I'm, assuming a 95 GDP growth, which is the ones. We got a defendant you close the numbers. So for four years, which are more maybe one day related disease, which outdoor food right you've got in small businesses was it.

But chosen the excessive loss number.

He says Hi Inn says no originals now how do you said so a.

This is just a harsh on.

Number one you know some better be girls and if it weren't making variable water from the front that we go so number insseco Gore, if we feel we can see the behavior of the of the portfolio in terms of migration between they do not include on there.

Saying what portion of the loans that have really schedule, we're actually become not great not because before it would not be in all of it but does that affect certain that migration between they do.

Not yet there even number so of the first quarter and so we do expect and work or something in the second Walker.

The second quarter.

In Fremont, so look down at all.

A brief in May so we would have also for me, but in terms of revenues.

Very helpful.

He'd been we cannot thank you very much in just a follow up in terms so that the rough.

No matter what could be.

At the same park in terms, so permissions because I believe there will be our growth Mone Grace period. So.

No one cornerstone how these rewards because as you mentioned there will be a portion of gun diesel being part will be very small, but just to understand ondeck on the prime Langkawi will evolve.

They had net sales for the part okay.

They knew that for we should he is very unique because there are multiple each and so on the on the guaranteed a fortune wine.

In the case, what the guarantee its own 86, and there were talking about corporates, so basically not such a I'd provision. So it's it's not something a material what we see a critical destinations.

Perfect. Thank you very much.

Your next question comes from the line up.

Nascent Marlin.

From Scotiabank. Please go ahead your line is open.

Thank you very much my first question is on capital in particular, we saw other comprehensive income take a hit this quarter I think it was about 500 million dollar smart calculation.

Can you talk again, you mentioned the 12% C.G. won and then if you can.

Repeat what you said about where capital would be in April and then talk about.

Where would be the minimum level, we know the regulatory minimum or what is the minimum that.

I have fast would feel comfortable with a in terms of a C.G. one.

And then my second question is it's just a follow up on provisioning just to make sure.

I understood clearly so you mentioned that of course, the macro indicators are weaker from when you close. These numbers already you mentioned that there's going to be more provisions coming so really these forward looking provisions were forward looking at that time. So we were going to see more forward looking.

Provisions.

In the second quarter, not just reflecting.

The actual delinquency in the second quarter, but some gauge of what kind of losses, you would expect on those loans that were restructured is that.

Correct. Thank you.

Hi, Good morning, James I mean as opposed to them.

I'm going to puffy too.

I can choose.

Then for this.

Right.

Good morning gates on thinking probably effect.

Maybe let's start with a cost of waste why I guess and what you described E. The answer in there and we expect further updates of the Mcneil variables <unk> second quarter, North and we have mentioned, but be that'd be turned variables have changed and what you need a loose.

Body by the end up.

These numbers so between the first thing, but in the second a the anti social yet no. We we see some movement between say jets and it really my team your life.

Got you whether he wants to be all of it because having my thought they do tend to be programs that we currently are longer than that.

But the stocking.

You pick up the first group of clients that he will not be able to pay down but not so there will be more migration. We can stay just done what we have reduced the indifference warfare and easier.

And then have gotten Friday.

Rachels or after the end of April our for me. So my some sense for book on Pakistan. Rachel then nothing going forward passion for call. It could be one venture and besides the F. you mentioned, the new regulatory that Ethernet and only half of those I'd, probably got away show in which.

[laughter] Aprilia mentally prepared family was there something better than seat required.

We track and then how unique reaching 200 basis points above the minimum regulatory requirements. So that regulatory reform. It actually has constantly changing degree do so I think that number if you net inflows to afford our internal even should meet therapy. They do you view at 14.9% that's for called and said that they've got to kind of range.

And I felt the core equity tier one day choice consent. After Franklin 11.4, we have I mean, there among the make up 10%. So you think you're currently we are well above our internally and it's not craft our unique April core equity tier one ratio can get to bring pendency, but of course.

And I lines, our that might be willing to walk on the rating agencies garcinia in would be Lindsay we feel comfortable other time.

Thanks, very much appreciate that.

Your next question comes from your line of piano understanding where the Credicorp capital. Please go ahead.

Hi.

Hi, Thank you very much for a long question I went to class regarding being investment portfolio.

And just a window and if you have made some changes regarding b and viability and dean risk exposure all those portfolios.

Given the current market sink circumstances preparing yourself for the following quarters, if you could give us a bit more details of your measures regarding the investment portfolio and then so we're running the legal.

Sure well considered much for you for your question a little stuff you don't reach for which ones will both continuing to so we look for a brief comment on each of their instruments. So what do we start search will go cellular phone because a lot and then you look back to them to what do you know so disciplined.

Well.

[music].

Yeah sure Hot.

Oh, we've done a couple things to reduce the risk of a proposal first of all reduce the it could be okay shoe to to our portfolio.

We were so in summary for a discussion and some of the range.

The only thing where there is.

Oh.

No summer from our own short position in real dollars.

And to to make us lists.

Our exposure less.

Ah smoked smokes smaller schools, who too.

And I believe gets the exchange rate.

We've also been reviewing all the names you do not recalled it to check what impact Oh, we knew scenario.

And no Oh.

Due to changes in the positions you should bring boosted by the way can make it more flexible for us to do something for sales to they will facilitate the.

The change with the precision Super cool.

Do you know for <unk>.

The new.

Judge in arcades when Weve removes some of the exposure who are three investment. So we got you in March and that's why we only alerts from losses are you in the month of March set up in the center shown in the results.

Mainly some are fixed income and equity exposure that we had.

Going forward are going forward I feel.

Very much geared towards fixed income investments so no we think.

Should we should be okay going forward first to market volatility.

Due to to be hard we think are so.

No the only way to limit that would be blown ones.

I portfolio much.

Certainly not not possible, but we think when you're thinking when appropriate steps.

[noise], Okay, you could say that so with portfolio had a high exposure to FX. So that affected the result.

We are I mean in terms of those.

We started to portfolio snuck up these six oh or longer or shorter or dollar position it's around left.

Going to.

2% because they will.

Oh persist football wrote a fun, but still confident in Brooklyn and their results.

Still well, we did well we are reducing or shirt, which is shown on on the before.

Yeah.

[noise]. Thank you very much [laughter].

Your next question comes from UTI Fernandez with JP Morgan.

Right.

Hi. Good morning was finished then mckellen team I have two questions also I would love to start by margins. My sports is how much the loan reschedule couldn't be better margin I guess or give me zero rates, most to some credit cards and and and other personal loss for for baseball.

Made through in May.

So my question is how that could affect your margin should be impacting the second Q. It will be a he's on margins or should we see you know these these negative trend be with respect to mean another account I don't know like any paramount I called or something like piece I.

I guess, where I I would to reach is the globally for the margins right. Because we have several headwinds you have the lower rate, but you do you have devoted to anybody dips Mckellar nation and you also had the renegotiated loans. So so my my I guess, where I when I when I went to reaches like how bad.

Yeah, and I didn't know does you're going to be Miss you know like Verizon I got to trained on an idea.

And my second question was a good regarding costs you mentioned some measures to reduce cost and I and you're starting to do this in March. So my point is how much cost can cook, but could you see administrative expenses conversion course completion.

Similar to what's the guide on core for cost here. Thank you.

They shouldn't since you're much let me, let me give you a person overview apologies I mean, it compared to the record depots.

Good.

Login like when do those are the ambition.

Suggesting or do you mean.

Reduction in [laughter] I didn't see will overcome the reduction in them and.

I'm actually close to 60 big stuff, leading to freedom to get up and no. Because we are you would feel going through the process.

They've worked with new Brunswick food.

We'll have two bucks.

From the Liberal where I'm coming to from principal did you have lunch.

First summer Sullivan at the beginning of both of them you can move March 3rd.

We equilibrium.

Interest to be church, because but then it goes we switched to a program there will be open interest.

Well, we pulled out installments.

Due in April a me too it's not the whole loan terms. This is really been sold a.

Similarly for the minimum payment of the crude.

You're going to me.

Two.

That's a median became the number so we've got them, though would be to granting 400 to truck on the new dimensions.

Schuman with <unk>.

Every notes will come with interest.

So that will be but.

The choosing do so second.

Would you need to choose the actual because oh, okay, if I got to Muslims the programs.

And that's usually we have some parameters.

Though.

They are performed in two weeks ago will move up some calculations or was that we would expect oh were used in women's boots <unk> I could persist in June.

Yes, no because.

It's been building block will be called them that lives, maybe there's some sort of customers to to access to the storms.

And even though the.

The nature of the crisis when people some gets to be.

You can sort of this decided to go into beautiful Minneapolis, probably will not.

That's a difficult.

But which is very top decile too I'm not sure.

A cultural parts of each.

Okay, all bought liquidity because that can do is good. So told folks are doing them and this is not that wont, even though is that being cost.

Starts.

Opening up and and custom except transition to.

In the Gulf It.

The budgets will be up a good bye.

Good luck.

I'm not.

They do because the <unk>, we will help to be an assessment called too.

Mhm injuries that maybe late for those guys to live up to <unk> to come up and there is there also burden from impossible.

Dealings granted a truly rates.

This has been Scott with a concept on that I referred that isn't going up and give us a little bit more blurred, but there's a discussion on the onetime should the do you have to just because of those who isn't too it's Rick.

And they make their TCV MPV production.

With that.

No other Joan isn't about somebody does that show being biscuits and they want but.

Most of the bumps along the work. So so that's something we're looking around and probably more probably do you really other than that school.

And then in terms of golf.

You mentioned individual there will be much more aggressive about this.

Perhaps they all blood to know where does that mean, because I can do for more.

Detailed two subjects.

Yes, Thank you and me if anything in a duty get there some companies and they all kind of margins and how to be recorded under I am sorry and accident.

Anything from like a part of client partners, who they show up in TV well no that's not being weak program would be fine conditions on the regional which indicate more proportional they have they know that we have rescheduling. He wasn't there right and you should compare of the NPV of the new goals, we deal easy now.

I am right. So both of them. So basically there is discussion E.

Reached reight amongst the movie sector, because I can you can imagine local portfolio SAP that'd be great garces movies, and if it would have higher rates. These teams that can be deep in the eastern said you constantly just sorry.

All in one shot so both like all the more corner probably schedule how could we recorded in the second quarter OS I need there may have the.

Value that goes directly right now so it's a negative on day and the net either margins, so who do not know they extend yet on that number because we are easy money, especially because actually I for many things and there I first want to pay for permission not that at the end of the.

And the international not all that being a community and decided that motor Scooter D.A. I get from they work in that that's like a financial expert griping there should be useful information for all these things discussions are happening now for four became stuck on revenues. So we will.

You need to figure out what what would be that number for from the second part of it and your telephone calls gift to complement what what these things and then choice.

And I know there around some variable cost, but we have it actually or radio acreage, we seem to eat well because.

They are our cost base work building, mainly because of I see afraid we put in that we couldn't see news lately.

Let's grow so he will not stop the he didn't go nature, but the variable cost related growth, especially for the phrase council for.

I don't know so basically everything related to reward to being 76 stepped that up like repair portfolio as of April being I mean, much less and bring it back and also everything related to variable costs I mean sensing win per unit.

Obviously the areas are not before so that we track already in April which is there any spoke of both and proctors nowhere very evercore and then measures. We are instrument. He's got the during the month of April and then.

I can never.

Decreased 10% versus the month of April 2019, and what we are proud that he said the things that reinsurance too costly black Hawk.

Not year, not nothing about that and we continue to work to find some other corporate they make sure. It that you can put into place, but remember that we already had in London.

Before.

And a reduction of branches not so we are continually we've got nine.

And that seems if somebody cerner bunch of glows, where no couple of what we have already talking to constitute difference in terms what goes to 10% of dealer and branch network and what we are also review we've got even the norm I didn't get penetration of the does the new overhead obesity neutral law there.

And it requires less just not so there are many accept prices that on top of the one of them, we have already growth and everything I mean, there are a relating to see what other things we can put in place.

Switching to go down at all.

Surgery gets you closer are we supposed to streamline our I T projects. However, we have identified certain that we will double or triple down because we've seen here, but you don't function, but customers are getting a will allow us to two girls. So.

The only thing, but we will continue to bear shouldn't you be great Moody's Doug.

So we can oak has been kind of rushmore.

No thing can determine if I mean, just a third when I compare to Delever well you could have been banks were very quick on disbursing Deprogrammer Aptiva, we're seeing other countries to through I mean, if they do was able to do burst almost all the money actually at least due to the auction.

Most for two days you are de Niro rate renegotiations Buddies do Michael Sousa regarding regulation are you see any kind of regulatory pressure. In addition to the character or did not get with this corner for moves for for interest repayments, we saw that but just checking if there's something going on.

When you do that there'd be some of your regarding Wrigley for big Indexation scans, a need to raise or any kind of stuff that these these are concentrated with response.

Yes, it into the younger workers anything they did this legislature and many problems CPT coding specifically for the commensurate system there are some.

Pitching come from Congress or ideas on what the additional taxes or off limits on what companies can charge or more choice.

And build off.

Charging for it.

So conservative or old old installments, the queued up the dog emergent stage.

So that's something we've got a square insurance for everybody we're actively monitoring that.

We hope Doug you, then, but yes helps the boom, but that's the years has been wins, which tend to be buckets.

Good coaches and also got due to be in terms of macroeconomic concerns related to better use it can actually could simply because they'll however.

It's a concern for everybody.

I'm really looking back Lucas.

Okay. Thank you very much better.

Actual comes from the line of Danny Moran with credit card capital. Your line is life. Please proceed with your question.

Hi, Good morning. Thank you bought a presentation I hope our question regarding the commercial segment only like Boulder brands seem to region. We did not sure despite growth in the commercial children. During the quarter. What is the best way to think about it it could be due to our low demand.

<unk> clients or the Companys below the where it was kosher stews portion correlates to these segments. Thank you so much.

Hi, I'm sensing mechanism cuts watching a well known universally lunch with very strong.

Well look how did this whole year Malibu coking.

So I guess.

Moving because we're not.

That does not go to a for the corporates are the first reaction.

And.

So basically.

Well, we've seen in pickup in agree we've got.

Good luck to be quite good bye.

The ones that have been granted that the declines in order to doing two things precaution.

Well, let's come at the end of March but each one is that after after go through March our affinity card.

Good luck.

Well go towards the deleverage from lose kind of to government services conservative but.

No really.

Because it's pretty much they're done.

Lots of building a b we're much. So we also were not those who walks you can go no food offering group, who who gets.

Just because we were worried about.

We wanted to get a good sense assessment of legislation before actually the opening of mix.

Once we saw about how is the bookings continued to grow and Doug.

I hope I'm like there for lots of good again for me directly for him and all that we've kind of up to more comfortable and also children do the tickets for example questions.

Okay. Thank you so much.

Yeah, maybe difficult mens a month.

Or eight.

Yes, we have seen then we seem to commercial loan book of close to 4%. So on our neighbors do we see something more those loans going from especially corporate.

In line off and that's something with Santander. Please go ahead. Your line is open.

Oh, there's another person both from a local sports.

The conference with many of these risk into lotion bunch of asset quality and cost of risk I understand but under local overregulate from both reschedule loans hercles, either us or performing loans.

No we like on a funny, that's the same way youre going to reflect but under our first if you are consequently, our computer peripherals on own Boes, a day, whose could do a friendship.

Sure well only I'm gonna be helping with yourself.

Yeah.

In the morning, Underexposed becomes a question in your current look I've got the those loans are going to there being absolutely no among though that's actually what we frac them. When you look on a GAAP Bose I mean, you name.

Pretty it's.

And that besides the fact that we're not going quite well report, which I think of the milk outstanding a enormous we stopped and boom and bust type of issue okay that.

Now when we talk I, sorry, we are talking about expected loss. It has been soft on waiting for things that from the four what moved in variable okay. What once one for later from a basket anymore load, but for sure incident I apologize.

Oh, no matter, what came out and have them.

They already.

And what we I am I.

Going to and boycott he wants me to perform but he said I mean, we are not going to keep them along with Oh, well my math. So we are able to and ransom estimates and then of the migration between the different phases in constitute a reinsurance based on a buddy.

During the effect that more and needs of the difference Dang thoughtfulness and problems, but we love to me that's out there.

And if anything you want these it's allowing us to them.

Perfect. Thank you I ended up having a defense for product quality, you know when you're sold out the quality indicators, where youre going towards reflect some of the effect of each of these rescheduling look correct, yes, yes. So.

Perfect. Thank you from us.

You're welcome.

Our next question comes from Carlos Gomez with HSBC. Please go ahead. Your line is open.

Got it so much your line is open.

Either able to hear US we are able to hear you can you. Please check your mute to switch for a director, California has that.

Kind of us if we are if you're talking to US we are unable to hear you.

At this time it will take the West Coast question I will not trying to go over.

I advice.

Hi, Good city pair Mccullough, we have a couple of questions from the work of Beaufor related to enter legal.

First ones coming from and we sort of on your from Florida.

Can you please give more detail a couple other losses on being the legal proprietary portfolio, what kind of certain investment is rather you keep its performance.

The sciclone phone cranberry off.

Andy if.

Where those losses due to mark to market or valuation changes changing from independent evaluator.

Could we know what GDP assumptions, you're just for your first nine appropriations purposes.

Okay.

I think.

Are you Gonna literally got me with a lot smarter, but solutions birth is on the GDP for I personally I believe they don't really know for the question about.

Luckily probably going to.

Okay, and actually we essentially a rated the GBP a group that we use for provisions of the first quarter what mine site person.

We estimate now than we had I'd be a design that we run the numbers.

Great I know a food and you know maybe you could help us with kitchen, when Theyll say problem.

Oh, yes on the for the first part of a question or folio is mainly fixed income about two thirds I would say or with the other part.

Divided between alternatives and equity.

The.

Mark to market or realized losses are we seeing we're both in fixed income and equity. Unfortunately both.

Both were down.

During March.

Which is basically let flat in the in the alternative cider portfolio.

So both fiction common equity so so declines during the first quarter.

On the several parts to me as I mentioned before they do reduce some exposure on the portfolio and that's why we have a portion that's that's realized and unrealized what shows up market crisis, or so third party valuation. It was a market operations I moved on more.

Especially for so go to market.

So with market price.

Yes.

Yeah, I do fine.

Yes.

Or the time I'm showing no further questions if I will let to try to go over today operator.

At this time, we have no further questions I would now like to trying to protect and with it because I thought for any closing remarks.

I do think again, everybody part they can do not they find for visco and we will be there do you see each other again or separately.

In in Oh.

Hi, everybody.

Okay. Thank you.

This concludes today's conference you may disconnect your lines at any time and have a wonderful day.

HM.

[noise].

Oh.

[music].

[noise] Oh.

[noise] mm.

[music].

[noise] Oh.

[music], who.

[noise] Oh.

[noise] App.

[music].