Q1 2020 Earnings Call
Good morning, everyone I wed like to welcome all Credicorp L.D. <unk> first quarter 2020 conference call.
We now have all of our speakers in conference.
Please be aware that each of your line should then I listen only mode.
Inclusion of today's presentation, we will open up the floors for questions.
That time instructions will be given as to the procedure just ball, though if he would like to ask a question.
With us today is Mr., Walter Bayly, Chief Executive Officer, Mr., John Frank ARX, <unk>, Deputy Chief Executive Officer, Mr., Alvaro Correa, Deputy Chief Executive Officer, Mr., Rinaldo Young Chief risk Officer, and Mr., Cesar Reos, Chief Financial Officer, Nowadays my pleasure to trend.
Conference over to credit Chief Financial Officer, Mr., Cesar Ribeiro, Mr. <unk> you may begin.
Thank you.
Good morning, welcome to Great goals Conference call well know what was sold for the first quarter 2020.
Thank you for attending today I hope, you'll find the inside of healthy I'm, saying well in the challenging environment generated by called each night.
We are experiencing an unprecedented fund all.
Despite these trying times, we will not be most things well for our him right. We did drive engagement on collaboration with all working.
Yes, Oh.
Sorry can you talk to roll it out Davis leads to respond that's needed.
I'm not an organization, we are taking on supporting our employees clients.
<unk>.
I want to talk about you already Cosby nowhere employees, we are focused on warranty that Oh, sorry employees remain healthy and continued toward the multimode conditions, our water more than 19000, Oneblade well you have received well take deep equipment and not working and secure in bio.
Additionally, incentives formats indicator for employees have branches currently really tight supply in serving over cells.
95% will fall what employees ideals, he's leaving our working most illegal.
Finally, we have implemented programs for employees, <unk>, PC emotional and financial instability Baltic ready quoted community.
I think customer centric organization, we are aware that many of our clients already experience you see music and doing.
More than 1.5 million <unk>, they are benefiting from initiatives to alleviate <unk> ratio of course.
Colombia will you.
Currently we are also barrel make sure to our operating units, including date on insurance remember around cost free cash management services Colby 19 tell like to ensure that gold rush.
Got it shouldn't be bushmen, so premium car insurance. Moreover.
You are taking a bonds bashful about what do you Doug trials.
We have managed to go into New York each of our financial services.
These mixes we try to basic services that show up big calling on these where we operate.
We take in preventing physical and cyber security make sure all goes on capacity management to ensure.
No we change across China.
Do you think.
We are actively managing liquidity on soybean seed to my deep I want to slowly financial condition in each field deal.
Finally.
Hobby lobby savings right now were 130 year skew story, we have demonstrated we continued to show clear commitment supporting our communities.
During these crises 160000 I'm bullish.
Since we benefit from BCBS donation drive, you'll Mitchell, which collected 126 million sold 100 million sold is from BCP. They need you sold is brought uneventful and seeking medium. So let's grow older Bunnies Oh, so can you be Moreover.
I don't like National emerging swore, including help rotation that was for lease on the Peruvian armed forces now how life insurance policies things Caledonia 5 million sole Islam I see people find that we've been working close coordination, we'd sell plaintiff, meaning those even.
Board to embrace these response.
Hi, Michelle Poole sheep cequent execution to all what they'll come banking. That's what this includes providing health services, Bobby sick patients to our health network and distributing Gordon in cash payments to our banking net oil.
We do anything south central funding.
Next slide please.
In these challenging context, our clients being able to rely on this strong relationships, we have b b and your PC thrown out where do you done networks during the locked down period volumes. Both in loan somebody told you how materially Greece in disciple how much.
Corporation unlocked enterprises define it like this would bring they've been see inquiries that short term funding needs in these things.
<unk> loan growth.
Great.
47% outpace this function for 12.3% boasted by multiple boxing these economic boosted BCP spoke on loan portfolio blow.
11.9, or same compared to 9.6% the mortgage banking.
[noise], possibly Tracy we obtained by default insurance segment has been maintained despite the month policies.
Cranberries weight, our wholesale deposits increased by almost 3.6 billion sold 80% of these funds water hub in demand deposits.
Oh, what we paid client deposits increased almost 3.6 billion solely.
Where we will.
<unk> proxy monthly for Bailey savings the policies was offset by a decreasing other types of.
These conflicts household is still being an opportunity core I want to clients Ben if he wrote about what do you get out of China Yaki welcome like hundred 80000, new users. So in January Heatwave, where do you anticipate the monthly amount transacted smoothies.
Hospital pull for one year. Moreover, our BCP do you thought to chime in how they use the material gain did shoot Oh Wow, what a distribution network due to an up tick in use during lunch.
So the angels papers or was the though sales. So can you be saving accounts inquiries from representing 2% vspro themselves to reflecting 27% see just one year. Additionally, digital channels sure well, what retail transexual well situated on 70%.
I wouldn't between saying there's was 48% last year. Finally, do you got a Chinese sure collections and it'd be paid wholesale banking was heatwave did 60% year compared to 32% last year.
In slide please.
So who's goberman hostage to keep it up to face these crises resi wouldn't be Scott route to weaken your screen. Good news shows the control Colby 19, contagion, you are going to like locked down they locked down duration, that's not dependent I spoke to date, it's expected to last piece. He seeks days until may.
Okay.
That's great but.
They do we see that song of the strongest month, Brooklyn, Let me put them into school all emerging markets and Hosman team is stable <unk> waking up all over the past few years the government Huh easy to no package me she wants to mitigate and you see you laid the calling me for the quibbling, both a proxy month.
<unk> 16, but a single GDP.
Yeah between them in nature of some of these might be good you did call related we'd be putting my brick well known me policies that have been car weed out for big huge.
The economy mantras, taking primary focus from continuing to meet economic damage due to low so ink on a de Vito gold.
We believe that these nations are moving in the right you rich as they grow by.
They provide support for company households that how software extreme doors in particular, the Gordon I started yet to be safe to government backed programs where people up there.
Liquidity program to provide 30 billion solace in funding with small and medium size. This company and they said pricing orphan no hi, bite eases punishing you chose to provide up to 4 billion solely financing for a small at Michaels farms. We will discuss these briefly in the next a slight.
And that decent national no load that powergen I've, just keep private savings and allow patients a p. leads to withdrawal.
25, but it seems to have that pension funds up to a total of twist totaling 900 Solus back did do seem to withdraw <unk> 2000 solace previously approved by the government finally, the Central Bank Huh go where its residents rate 200 basis points.
Boeing Ptwenty five quarter, saying I study, meaning.
Uh Huh provided liquidity for seeks and 12 months to rape operations for a total almost 17 billion sold it seems to beginning March.
Central Bank consoles implemented measures to meet <unk> exchange rate will achieve additionally.
Super Independency outdoor rights ready to extensions for up to six months, we know they won't fly in grades wage.
Next is light.
[noise] callout from Cobiz 19, contagion, we eat the war experience.
Great economic hardship.
She sees the great depression improved economic indicators.
Such as electricity demand public investment reduced the significant decline at the into March and April.
On the government be clear, that's really not I teach basic on Oneq reopening both pieces from May through August 20, saving economic TV leasing poor economic sick book, we reduced staff. They will durations he made a bar that Florida stage Nonetheless.
<unk> do you see there will uncertainty regarding the might need to book GDP contraction that we'll be seeing in 2020 hours teammates, who just 2020 GDB may contract between 7% I'm 13th of saying, depending on the degree or economic recovery reduced during the second call to anything.
[music].
It's important to note that the government's sleeves economic response will help senior bank when did a nice seasonally down the line without these may choose the negative, but we should really be greater impact cheeks reactive up in the government backed liquidity program called 30 billion sold is written.
Same around 4% of GDP will help mainly is small and medium sized companies obtained race working copy Doug.
And continue to operate.
The coldest level these loans batteries between 80% 98% loans.
[noise] between 30000 solely a 10 million sold excludes terms.
36 months, we've got great beautiful talk to 12 months.
Five program enables batch and micro financing used to provide a small on micro businesses loans for up to 4 billion slowly we covenants levels between 90% 98%.
The amount represents about 99% the loan portfolio for its employees seasoning white.
Given that the Bible east constantly shifting there based on loans the financial ceasing has yet to be determined.
Oh, what is the names who just built along seemed to may experience anywhere from 4% construction slipped 2% expansion in that context, Mark like government loan support these costs.
Next slide please.
Now, let me explain where we.
Financially speaking to face these crisis.
Sequence everybody's on DC opinion financial group, we operate through its Aegion management as time goes.
I just provided the solely block for him to weather the storm of Colby gene in terms of our liquidity that regulator money towards the 30 day liquidity coverage ratio on actual undergrad BCP hussmann teen level, it's well above regulatory me Weber for management decisions, we use some more.
Order stream can indicate relying on liquidity coverage ratio of 15, 30, and 60 days, which is timed up I line. We basically three in this context, we maintain our high quality liquid assets.
They quickly.
Regarding copy does each of our troops easier to maintain adequate copied the level, which ensures that solvency us March 2020.
According who did you want BCB, what tweaked it up 11.9% indicates to me Bancorp the core equity tier one so much 2020 East 14.5 course.
Next slide use.
We are managing exposure.
At each bucket glass and clients at.
<unk> has impacted the financial assets, you know where investment portfolio. It's important to note that 90% of our investment portfolio is comprised of fixed income investments, which primarily consist of investment grade sobering balls. Moreover, only 11% he's going to see that are part of the trading.
Portfolio, such most value changes do not impact was sold like directly on baked equipment.
Regarding being regarding our loan portfolio, we would like to share some of our metrics for exposure by segment an economic sector.
This important to note the week how.
Widely disseminated a complete sense of short term liquidity D facilities to support.
Our clients on the Cobiz <unk> you can see now you'll see.
This dynamic and consisting approach will mitigate created floors.
47.6%, Oh, there's something loans of BCP stand alone and saving team for the same Oh, He's asking me peanut portfolio were paid on time.
In the second how much we offers keeps which consist of this reprogramming auctions that change injuries.
The chart change or so late 2008 group, we developed I know for decreasing facilities, which currencies two closings.
No. It doesn't see really sort of what you do see important highlights that I still pay <unk>. We had already written problem. They follow with loan portfolio shows 38, but the thing then you bankable 47, one important thing or BCP. It see me peanuts portfolio, 50% BCP individual sport.
Finally I.
I think complimentary nation for business clients, whereby PCB actually I do you look a little program what at BCP has being awarded significant share count function.
Thank you schooling seen the process of these boosting the spots.
We didn't do five BCBS kinda, along a spokeswoman economic sectors.
Hi, you suppose he called me 19, and by the way we used to be made that 20% lower wholesale portfolio.
25% <unk> retail portfolio.
If they meet P. Mi business is high you suppose indecent not least sees how you exposure <unk> those include retail vehicle reality state.
Ill, let tourism micro finance transport unrest.
Next slide please.
When analyzing crazy corporate four months, it's important to understand the drivers that will impact ready Corp. Russell through 20 Twond.
Sure.
The Muqrin vitamin I, just described coupled with a special interest pre and post resolution offer to clients and the market decline business like TV do they look Dom will impact our social team.
It's important to note that we are using AI apart with like the calling up by goes uncertainties, who they shouldn't be poor twisty made provisions we are using Josh mean, and adjusting our approach to determining expected losses in different circumstances, we have not applying our existing expected losses methods.
<unk> mechanical.
Finally, we are measuring expected losses based on recent <unk> unsupportable information.
Consequently in the first quarter be here, we have reduced the our best estimate which assumes a severe impact at the macroeconomic level, we'd be partially offset by red programming I see these by government mitigation measures. If it's important to note that I apart with local reporting it stand up.
Materially differ and that local regulation, there's reprogramming does not change glad you at least classification and need to do a ratio is recognized later on when losses, how do you.
Hi.
He wants to manage expenses, we are leasing victory seeking a salary increases adjusting body able to compensation of working to preserve our Todd.
We are also using the brakes on knocking strategic projects I'm looking to identify savings you know conflicts or short change the cruising business cheap.
Next slide please.
Going on on our first quarter 2020 financial highlights you. We see the response has been Oxford, Maine like Fort worth looking for patients.
Negatively impacted our souls and mainly money fist it toward the Gleason nonfinancial income.
Junior for a while looking probations on one off expensive all of which upset readability in the first quarter to <unk>.
<unk>.
[noise] [noise] Oh to explain V.C.B. is <unk> I will start.
By removing loans acid quality unable to lose some of the policies.
Despite the log down your into several capital K. Mart B.C.B.'s other S. daily loner, who 8.4 per saying year over year.
<unk> by retail banking, which group, 11% they buy consumer on credit cards, which increase 14% or more got you switches <unk>, 12%.
This is important to highlight the measuring Clark is M.P. yours, the loan portfolio group, 12% yoga year by boy, 4% or two a quarter in the current conflicts corporate Italian so <unk> liquidity Arctic higher sprint, which was mainly retain the banker liquid good policies.
Grogan retail loans this overrated due to Kobe much.
<unk> <unk> I said quality has remained stable we talk show wrapped provisions based on changes say macroeconomic as big stations, and then increasing the probability of default.
<unk> the costs of ways to increase 230 basis point here over the year to see <unk>.
Four point, 44% retained banking M.P.L. this ratios deteriorated courts it'll record the main v. <unk> on credit cards, but seems prohibition was posted a higher increase.
Covert us racial or D.C.B.S. stand alone hussy tweaked it.
100, <unk>, 18% compared to 105% in the last quarter of two tells him 19.
Well tell that policies grew 16 point of saying your gear over here late.
<unk> like <unk>, saving the policies, which group, 23%, 16% respectively.
You were in this quarter totally postage group April saying in the context of Kobe, 19, where corporate clients, who down on <unk> on both in the bees, what are some businesses to spend delays and maintain large it by classes in their accomplish.
Next slide please.
Now I would comment on B.C.B. is kind of lost <unk> P.N.L.P. abuse.
<unk> downward trend interest rate became is cheaper the negative impact of these driver on mean has been opposite by a more favorable finding a structure up the liability. My name is make sure where the executed in the last quarter of 2019, I knew less expensive short term funding has been taken.
These half allowed the 19 tourist margin to remain stable 4.7 per saying year over year higher probation whoever let the risk adjusted mean to drop the 1.5%.
Both core unknown core no financial Inco's decrease.
<unk>.
Alright.
The reduction of temper, saying quarterly reporting in books being called a net gain if they've transsexuals.
Reflects two weeks of locked down out of 12 weeks in the courtroom.
The decreasing business activity, including 43% drop.
<unk> the implementation of course free solutions to class and then increase in Digitalisation adoption, we generate greater than they got the same backing don't <unk> income next quarter.
The efficiency ratio deteriorated saving basis points <unk>, mainly due to handle this acceleration in income generation Y. expenses. Good in line with these finale and include 50 million solace in Kobe 19 related operating expenses.
Finally, B.C.P. includes a 100 media nondeductible to charge for Coby 19 donation in all that expenses overall B.C.B. school those holes are offset mainly by Probations I'm. The one off Kobe 19 donation.
Next slide please.
[noise] me back of quarterly performance was impacted by for what looking Probations.
<unk> me Vanco posted 7.3 per saying bro year over year low measures being obvious daily balances Mibancos portfolio is primary composure too small a micro businesses <unk> mode exposed for 40.
Suddenly button is used requires that <unk> to execute reprogramming such.
A soft March the operating you'd need cost for a program 22% of <unk>.
Regarding I says quality.
<unk> M.P.L.S. I was sort of what are you nationwide collection measures, taking greasing borders. Nonetheless, koby 19 forward looking probations have laid the costs of race increase 315 basis points ANSI created a 6.7 parsing Consequently <unk>.
M.P.L.
<unk> <unk>, it's 157% be sport, there compared to 138% the first quarter loss.
Mibancos mean increases 50 basis points, because he create a 15.2% <unk>. These was a table.
Interrupting me station in the funding instructor on the costs of funds. Additionally, champions teenage foreground speech recognition reduced known financially income finally due to higher costs of ways. We suggested me, so 240 basis bones year over year to see to eight or 9.5% Indian or to me.
<unk> registered I slice deterioration he needs efficiency racial year over year, which was mainly attributable to an increasingly bancos hit town <unk> Trentham relationship replied.
Administrative expenses were down discord, they're driven by the implementation of cost savings programs on Sunday Lazing executions finally.
Deductible charts for 10 million Folias or calling 19 donation has being reported in all their expenses over at all.
Banco performance was negative impact is mainly by provisions next slide please.
[noise] [noise] now.
Common on the main drivers hand will souls related to already insurance <unk> businesses.
[noise] these core.
Group of but see because 19 Kong improve year over year, you to mainly 20 improved making the underwriting bushel of the property and casualty businesses Antoine let's understand from improvement in the last basis.
<unk> was there was sold affect increasing niche claims for car insurance after seeing correlation degrees under where if you were reported cases during lost on.
They like business these days and increasing both of them into an incredible they're crazy like pro look after sales in Greece.
What are Ya channels health insurance on medical services reduced terribly policing activity I'm their poor report that lower claims building blocks.
All of them formation, resulting in the improvement of 6600 20 basis points year over year in the lowest wage.
Oh, what investment portfolio has good quality on east concentrated mainly in big <unk>.
In terms of liquidity on solvency, a seasonal maintains comfortable liquidity and they have to copy <unk>.
There are two one off koby 19 related charges that impact classical whistles do squat them first.
Financial relief natural for clients, we are reinforcing 50% of the car insurance premiums for the month. So March and April two individuals that are up to date in that payments. They impact. So much you saw round 8 million soldiers in premiums reimbursements seconds.
Equal donated 5 million solace life insurance policies <unk> service professionals policemen, and the rules armed forces, where diversity as opposed to the virus during the quarter in time.
In terms of pension funds business the negative contribution to <unk> is mainly a tree will tool to decrease in the profitability of research funds, giving market conditions.
Commissions, we've been negative effect. It next quarter give me that bench on some contribution to we'd be waived parade. Additionally assets under management, we've holes in the Golden mean degree or we drove class C.D. or something appealing. Some October warts, the Congress approved a low.
Which enables a feelings to withdraw up to 25% of their pension funds with a ceiling.
So result of D.C.C. material changes in the system, we estate <unk> before reserve tons profitability to be reduced by 11% this year.
<unk>.
No we comments on the driver's from performance, both investment banking well by national businesses.
<unk> posted it reduction or 9.6% waterboarding 5.1 per saying year old or yeah.
<unk> management.
<unk>, mostly affected by a mark markup, taking much I find important values outreach.
Attenuated withdrawals.
In that case of the asset management ice fly decreasing <unk> in the last two weeks of the cord. There you to withdraw from trucks functional funds, mainly a homebody prolonged.
Regarding some contribution based on the year over year on houses who's the rest shows are as follows.
In the World management businesses, there's life cold is mainly due to lower the posted balance on lower income from family also you seem to whoever's incoming Colombian <unk> you to the diversity vacation of the <unk>.
Asset management business, given that turned out the funds and distribution or third party <unk> like that.
<unk>.
In the corporate finance business.
<unk> <unk> situation for the execution of corporation, including those that were already then.
Within the first quarter 2020 pipeline.
Copied our market business was the most severely impacted by the reaction of the markets to the global crisis significantly affect in divorce <unk> in this context trading for Foley was we'd used by 60% to meet he gave will at Ti you get back too much you know these from the appropriate <unk>.
Portfolios of local and international <unk>.
From A. is being reduced of losses wherever the sales. These nice achieve higher than expected was souls inequities driven by an increase in the bowling straight like Weiss us market recorder the losses <unk> started to reverse in April.
Regarding all the businesses, where they do show less mainly from the Treasury basically you too and they got these exchange difference or the native but we'll see shows enforcing corrupt finally, it's warm made sure that although they loaned turning strategic Holy with us not generate that lost their C.D.N.L.
They aren't we are licensed losses were 77 meal solace I'll so much.
No says like.
No.
I wish tumor ice cream records consolidated performance.
Now.
Context, both market volatility I'm low prices by the end of March 2020 investment portfolio share or are being tour to 70, 515 grease to 20% from 19 per cent in December.
Loan portfolio boom.
11.4% year over here in <unk> imbalances saving 0.8% year over year <unk>, you know better daily bother to boost it maybe by P.C.P.
In terms of funding the postage group 15 point tripper, saying, primarily due to the Montana saving that policies, which group 20, 22.2% uncle, 13.9%, respectively, mainly at B.C.P.
Additionally, wholesale financing rule saving point paper thing their funding west provided to corporate medium size call in these countries.
Corresponding calls for 25 basis points.
Next slide please.
I suspect inhaling pretty coarse coarse agrees posted a significant increase of 268 basis going score two over a quarter, mainly due to Kobe 19 quote what looking probation, which were mainly concentrated in D.C.B.S. stand alone on me about it.
It is important to know that they change in economic as big patients affected all of our line of business, but mainly retail banking on microclimates additional.
32, 34 basis points of increasing the cost of raised once related to a deterioration. Okay specific business segments have P.C.B.S., then along mainly kissing me the me on credit cards.
Which was upset by I mean <unk>.
<unk> yeah.
Oh are nonperforming loans portfolios I spoke to grow that west significantly lower than the expansion singing probation, they've proceeded with that quote unquote subsidy or it's hot overworked declines to cope with these difficult times, which translated into an improvement in the corridor fledge Credicorp <unk> reach.
Five point 35, cussing remaining relatively stable year over year increase or 5.4% interest scene, which was driven by then increasing to his home loans I know degrees of 2.5 per same intersects with them or favor list.
<unk> <unk> <unk> intourist, earning offsets.
US missionary did decrease in need a V.C.B.S. on a little Oct quirky, we watch driven by a decrease in markets ways west offset by any <unk> often I knew pricing has tried the U.S. implemented to improve loan rates Simon risk adjusted need deteriorated one.
Hundred 97 basis points or to work it to see to eight two point, 33% dish was primarily driven by the whole nation equation implications.
Next slide.
Oh.
D, 18.8% gear over here reconstruction nonfinancial legal west mainly tribals, a little too noncore items.
<unk> gaze on their fake transaction book or I dropped after transaction on a T.V. in debunking businesses degrees during locked down.
<unk> only if they've transsexuals degrees Tempest, saying on 14 per same quarterly reports that perspective.
<unk>, mainly but B.C.B.S. stand alone them you buy.
The net gain them securities laws one.
120 million solace after the glow Cobiz 19, Chrysler generated a market downturn that impacted <unk>.
In terms of efficiency, the close to incorporation deteriorate at 100 basis points year over year, mainly due to.
The deterioration with my complaints most of the deterioration micro finance utilizing crucial uncle peed on a more personal expenses why <unk> <unk> <unk>.
<unk> also reported this like deterioration, which was three was about two car premium boshart reimbursement.
East West mitigate but then then increasing net earnings deviants the like business.
Next slide please.
Sure.
Dover sole or consolidated <unk> your credit score right <unk>.
Reflects the negative impact or B.C.B., which watching charmed attributable.
Two charges related to Kobe 19 to wrap half hour, but for Monday scored it we continue to reduce the ceiling roping loans they policy dumitru into a single.
<unk>, 11.4% or 15.3% on April tree per same year over year well respected.
Oh, what customers top ramping up the use of the channels and then you'll context and that's how much our d. that type ability says and I think competitive advantage.
Koby 19 or break negative impact however, so's primaries.
Decreasing nonfinancial link on an increasing forward looking probations on the existence of one on expenses, all look which opposite profitability in the first quarter of <unk> <unk>. Two phase described in terms of both liquidity and copy them, we reduce D.V. them all subsidiaries.
<unk>, Okay raping units copy debates.
Given the level of uncertainty regarding the global economic impact of Kobe 19, we are suspending guidance I saw today with hot.
So they <unk>. These phenomenon, we will provide guidance.
Next slide please.
Aren't aware of the level of uncertainty we are facing.
The same time, we feel confident about what cup ability to adopt our businesses and organizations in that changing environment in this context.
Really.
<unk> on a constant basis in B.C.B., we are focusing on engaging with customers to understand their situation pause, calling 19 on financial needs implementing preemptive up there all Kroger adjusting reece management measures can be signing medium term restructuring initiatives, who you're starting sales Cup I be it is.
Coupled with dynamic pricing I must say the rates in customer digital adoptions I'm, just thinking the new operating molded in Bolivia, we are engaging with customers adjusting waste management measures post or in the use of digital China.
Micro pine us we are working on engaging with customers facing new needs and risk executing refinancing initiatives implementing five program to provide fresh working copy that support our clients shorting liquidity needs.
<unk> out to the <unk>, making molded they've arising the use of data and analytics redefining the new remote operating molded finally, finalizing uncle <unk> <unk> <unk> <unk> <unk>.
Insurance on <unk>.
<unk>.
Restocking true themselves for <unk>, you get a couple abilities adjusting Pacific coast <unk>, managing the liquidity unprofitability of the financial investment portfolio Condit up expected controls.
Actively participating in banking system before.
Investment banking, though well management, we are focusing in developing business opportunity seeing what management, an asset management by offering a diversity pie protocol.
They they looking the corporate sinus pipeline, improving whereas <unk> by Reprioritising off the racial expenses on investments.
Finalizing the integration hopefully tresemme seem cool by the first half or to any training.
The finding or worse with more functions and technological rather phones to improve the customer experience on enabled fruit or future growth.
The corporate level to fulfill this trend thing over long term performance on competitiveness in the markets. We okay rate. It project has being lunch. This month to the <unk> <unk> <unk>, an integrated yeah, Gee more deeply I'm going system in our business planning on activities.
Take advantage of the new opportunities specific initiatives of gray <unk> out of being selected any more than to be accelerated.
<unk> these comments about our water performer I will like tool <unk>. Please.
Thank you Sir.
I'd like to ask a question. Please signal by pressing star one on your telephone keypad, if you're using a speaker phone. Please make sure your immune function as Tara.
Allow your signal to reach our equipment.
Voice, unless I don't mind well into account when your line is open.
State your name and company before passing your question.
Again Crestar one to ask a question me also ask that you. Please only ask one question at a time. After each question has been addressed by our speakers you will then be allowed to ask as many follow ups as needed but again. Please only ask one question at a time.
Thank you will pause for just a moment to allow everyone an opportunity to signal for question.
Oh, well take our first question color. Please go ahead.
Huh.
Hi Ya.
<unk> bunch of America.
Hi, good morning for Us all I'm. Good morning, everyone. Thank you for that he failed presentation on the fourth opportunities we're asking questions.
Like my question is <unk> costs curious after more than doubling your provision of charges one quarter.
Respect the gloss encouraged 19, you think your coverage <unk> or your thing it will be more tangible next quarter and how much of this review some charges over quarter I, considering the clients applications.
Randomly wrong for I mean the reserve.
What level of your did you for all minus seven cool minus 15%.
<unk> I do have an interim do not follow.
Breakfast most mechanic Kelly, what I'd thing will be very careful to understand restaurant in terms of direct considering to rural school for a reason charges.
[noise], so I missed or or.
<unk>.
Yes definitely.
<unk>.
<unk>.
Dollar best estimate at the end of March or.
Yeah, we just estimated using also occur.
<unk>.
Brought his presentation so forward looking estimate.
Our numbers our baseline for the west are weighted average.
Appeal around five or 25 per cent.
We will.
Our production in the folder or.
Okay.
There are a lot of Oh there are in.
<unk>.
They talk about government sponsored by the garments.
<unk> better.
What will happen original plug a year.
This is going to be.
Yeah.
Okay.
And then my second question some longer all remote an important lesson Rachel.
Currently the appreciation, but also I think from some a little ones from companies I'm dissipating who have liquidity.
However, I would like to know your striking the short term are you going to focus the wrong, playing bass or you also going to provide credited to new clients also in color improved portfolios respect to be more selective.
Which ones will there be that ones are delivering the growth will be very careful. Thank you.
Well take our next question.
Color. Please go ahead.
Hi, This is Jason mowing from Scotiabank.
My My question is related to like seven after the show which are in mitigation I thought that was very helpful. The way you showed the most exposed to start with the most exposed to the less exposed showed me bronco and that to me. It's on your top in hotel on the bottom if you couldn't talk about giving us.
You can talk a little bit about the expected loss in those most expose them less exposed and I guess, if that average was I I. It wasn't that easy to hear about it that kind of previously is that kind of where you're coming out with your expected loss.
Most of risk in the quarter and also on the fly. It. If you can just give us some details on the reactive approach to program and you do mention that you have an important share.
For P.C.B. and me Bronco, if that is that's similar to your market share in those markets and how do those options really work.
Okay.
Oh well.
<unk> the stick them.
The pluses levels for for the.
We don't have a rough number you stand up for these.
<unk> estimation so.
Yeah, no the first quarter, we're basically computer under the impression bootstrapping the macro level.
We have worked very closely with all the segments in listing rate I generally bugging report.
I mean, we are not able to disarm could provide a specific level of a cricket.
<unk>.
I mean in terms of V. or.
Did you British our market share over your visual.
<unk>, it's somewhat or.
Marketer.
[noise], we'll take our next question.
Color. Please go ahead.
Yeah.
Color. Your line is life. Please ask your question.
During their response moving to the next question.
Hello.
Hi, According equity for Morgan Stanley, Thanks for taking a call questions.
Can you reminds of your sensitivity on a net interest margins two more minutes in gray is there a particular expectations that you have four names by the end of this year. Thank you I I guess, we we also would would would push it isn't it tells what are your expectation is for a reference right at the end of the year.
Thank you.
Oh.
Hi.
The reference rate is already the minimum historic a level up pulling the 25%.
And dangerous rate has already been passed who in the new transactions. So we would thing as big a significant changing reference rates during the year, even say that probably the marvelous hand going to be a sponsor capturing in the new transactions in the newly nation on a higher.
<unk>.
But I I will say a booking solace and all that is we are in in a low living in terms of reference rates on probably we are going to have some this bunch or margins, but based on.
Probability of the cold in a restaurant.
Sorry, I I really mean.
<unk>.
No I'm not sure I understood the point about probably give the full.
No years, what are you on trying to tell you is that reference rate. These whole rating you study called knows both solace and dollars. So they knew marginal rates are going to increase bayes phone.
The girl I really do you'll be pulled so they margins are going to increase it slightly base on these newer you nations.
Useful also comes here to the United Nations I'm going to be particular retail banking on their slower pace dung historically has been happening a due to the decrease their minds in the short time periods.
Right if I may I ask a second question. It can you talk about work you can do on the expense sides to try to provide some awful offset to the downturn and revenues and both in 2020 and 2021. Thank you.
Yes, we are already working in and I'm <unk> Nationals House I mentioned previously we have adjusting a variable compensation.
We are a free seeing a most of the company so big root probably with exception of the investment banking in terms of hiring.
And a salary increases some of these things are going to be naturally adjusted based on the level of activity is particular during the second quarter and Additionally, we are a working buried deep in it and that Barry discipline and wait you didn't do fighting expenses that are not a absoluteness is.
Oh, sorry in dish or 10, but we are maintaining investment developing cold Cup I believe is particularly in terms of digit data and and the intelligent decision making.
Thank you.
<unk> <unk> well, maybe maybe just a good morning, everyone who.
Other people were talking about pets went just mentioned.
We all are worried about the war would be working in in.
<unk>.
This is going a couple of really big.
<unk> crisis that demands on we eat all channels the <unk> dramatically <unk>, we were or.
Analysing <unk> and.
The main objective, there's not that we use expenses.
But to provide a better service told Lions club ultimately the whereas one dollar would be.
<unk> several branches should be <unk> down in the next couple of years.
Yeah.
Thank you.
[noise] well take our next question <unk>. Please go ahead.
Mm mm.
Hello, everyone. Thanks for.
<unk> questions.
<unk> I just want a a follow up on your <unk> you know the one of several hundred but <unk> <unk> in the corridor <unk> can you just.
The G.D.P.S. function.
<unk> case, either you know in into more of those for for adults.
Understand you know you say you expect either.
Minus 73 minus 30%.
G.D.P.D.C. or.
Outdoors, but into the model you know just to understand you know how much you know has allowed it'd be a factor they know that we're sorry. Thank you.
[noise], Yeah, only marches rolling stones.
Yes <unk>.
We use a weighted average four.
B over wrong, 5.3%.
Yeah.
Okay.
Alright.
That's very clear.
And and and for next year is there any.
It gives the liberation of the crisis I mean, how how how was the duration, let's say ticket chocolate or try to recovery wants to take into account you know for a ticket also came on mccormack.
A a world standpoint.
<unk> I can.
<unk> on that <unk>, we have used for the close of March I waited how they'd rush of the <unk> now we've seen that the G.D.P. is going to decrease more.
But we are they a significant optique in 2021.
In the turn of probably five 6%.
<unk> next year after I'd be <unk> Indies year in the range, probably between 7.5% to three living us basically scenarios for this year.
Okay. These things right really impacted because during the month demand for the last weeks, they locked down has being extended and D.C. impacts directly and GDP levels.
Let's start their thank you so much.
[noise] [noise] I'll take our next question color. Please go ahead.
[noise], Yeah I guess.
I have just one one follow up again on the preview on this factor lost.
So you mentioned that you do the provisions, which it up your five other kind of five now you have or something close to.
<unk>. So it's possible to say that you need to do more provisions in next quieter or at least if you. If you need to this kind of provision today you need to do a huge amount of revisions again in the next few.
Oh, well basically based only on the micro Microcapclub females.
Me to do some extra for reasons.
We're about to happen.
There are lots of things going on the order start I'm, sorry, I'm, sorry, I mentioned on just aren't mentioned in terms of <unk> I mean.
HM government base unit.
<unk>.
Yeah.
<unk>.
Terms.
You can we would need to do in terms of these more c. or more dramatic.
Microenvironment.
Okay. Okay. Thank you.
Okay.
Well take our next question Calmer. Please go ahead.
[laughter].
[noise] [noise]. Thank you very much harder opportunity to make question. My question is related to understand and <unk>. How you know the ice you transformation program continuous in such an environment type thing.
<unk>.
<unk>, but at the same time, you'll have poor on the cost containment strategies. So just press understand if there is any change.
In the development of the program and in parallel with that.
To understand how much RPR transactions have been originated <unk> and how much continuous to be you know originated throughout peace Corps channels. Thank you very much.
[laughter].
Hmm, maybe maybe I can think that's cool think it Nicholson probably <unk>.
On the <unk> <unk>, although mentioned before we just.
<unk>, which maybe bank.
I probably saying.
Do you won't be mine Spike <unk>.
Investing on <unk>.
<unk>.
<unk>.
Publications remote.
School <unk>.
Mall.
Channels with all.
Oh.
<unk>.
Even though from functional across channels.
<unk>.
Well we used by.
<unk>.
<unk>.
<unk>.
Include so <unk>.
<unk> the trend of Oh clients.
<unk> call increase your monthly warm enough simple form <unk> <unk> <unk> the right thing.
Mm.
<unk> the bank.
<unk>.
<unk> Ooh Ooh <unk> <unk>.
Vision dental.
<unk>.
<unk>.
Thank you both channels on.
Wow.
<unk>.
Do both.
Equalizing whole whole or.
The glass on your whole blank.
No perfect just a follow up there <unk> from Citigroup, sorry for not being that introduced myself, but just to follow up to understand you know in terms of costs.
<unk>, Oh believe what would happen going forward, we keep transformation programs at U.C.D.'s accelerated or on the other hand to contend costs you use their you know any parts of the project that can be <unk>. Thank you.
Yep.
<unk>.
Go ahead go right right.
Go ahead of them.
As I mentioned before we are thinking a number of nations that are going to contain calls a focusing on variable compensation, reducing known a.
A <unk> initiatives I'm being very far from focus on developing D.V.D., we see that does the duration distracting you rape, but these crises the house. They last clearly that we need to go deeper <unk>. There are more focus so we are ready.
Thing cause.
Reducing the expenses, but radio erecting cause.
<unk> do a improve the <unk> you are going to see lace over at all costs, but we are going to go deeper on fonts there that they looping. These cup I believe there's no totally thinking in the year two 220 back into the future the crises.
How powerful are these tools and the clients really neat these tools to interact with US you know more efficient way.
That that is very clear I really appreciate that.
Just a final follow up there was that <unk>, how many branches are open nowadays and I know that you are in full locked dollar how many branches you expect to open <unk> pen and hard man you were on by the end of March. Thank you.
<unk> <unk>, let me out for <unk>.
But don't do.
You know bland blocks from states that in terms of lumber branches, when we feel for any burning <unk>, the blonde who wants to basically go open.
I believe to do a thin bloke branches easier on the gross yeah I've seen it on on the.
And then.
As of today, we haven't because it.
To ring shift with Bland my.
My <unk>.
It would be that by year, which will help a lower number runs it.
<unk>.
Well from the crisis.
Oh.
Okay.
The sense of our Bernstein's do we move 30% removes.
It is because of it right.
That is perfect. Thank you very much.
We'll take our next question color. Please go ahead.
[noise] Hello, I'm with one indexes catalyst I'm not from it says but.
I went to us about the evolution of your equity if we look at your consolidated shareholders equity it declined 11.6% and a quarter, we imagine that this because with evaluation of securities.
Can you give us an update as to how that has evolved after the end of March if you have recovered sound, what's already equipment those levels and also if you could <unk> the capitalization of previous that we see on page 42. So you have the tier one.
Seven point.
9% and they started to this 50 or one.
I can never would she's 10.3%, which is 1.6% lower Sunday C.E.T., one I know, there's an explanation about how they copy as soon as my <unk>.
<unk>.
[noise] [noise] 30, I take just one.
Decrease in any shareholders take with the Credicorp level is mainly due to to find out or <unk>. Maybe this is a significant amount he's how wrong 2.4 billion for a list that hospital ready being reduced their.
You know he's going to be paid today and the old in fact tour ease the eh decreasing on realized games, you don't realize gains decrees during a munch on how it's being recorded in a main two way in April.
And you happen to know the question that I I couldn't take notice so yes easily and these guys from before is that difference between the C.P.T. one.
T or what.
Okay.
<unk>.
<unk>.
Okay that thier, one is below to see if we want which is we can try that too since.
I don't hardly see it was a these moment so <unk> so.
Thank you.
Again to ask a question. Please press star one we'll take our next question color. Please go ahead.
Oh, Hi, My name is good I understand some pay cut that'd be bad.
I wanted to ask about <unk> feed from Columbia Declaration, if you could give me a deed.
Well, let me get separation and your future plans for them cranky very much.
[noise] [noise] Ah I can answer this one this is <unk> <unk>.
The effect the second part of the of course, we have no future blocks at this time.
This could focus on our interesting operations and businesses that we have.
There's a lot of work to go and there's a crime to change focus from.
<unk>, where we are focus for those.
We are clearly not at the end of the crisis Yep.
We do not feel doesn't inflection point, because we're extremely focus on what we have the our operations in Colombia have been working aggressively refinancing their customers and are doing a similar protocols to what we do domestically obviously with some differences.
That's all I can mention about it.
And <unk>.
I was mentioned have all been competitive.
Thank you very much on that okay.
Okay.
We'll take our next question color. Please go ahead.
Oh.
Yeah. Good morning, gentlemen, <unk> [noise]. Thanks for calling my first question it wasn't bar to your skips and we thought you call every programming of the loans.
I I I say that the you know these loans considered.
Basically performing a day.
In any way factor into your <unk> elevators.
Oh and also.
Seven years show for example, you reprogrammed.
50% of your P.C.D.
<unk> retail, but it looks like it's only really.
25 per cent of retail that's highly exposed so my question. It how're you.
Deciding.
What to reprogram or what not to reprogram that would be the first question. Thanks.
Yeah, basically in three months or do you show it.
We have given our reclining we've got.
Created on all those clients don't require some kind of support even the crisis.
That's what we were basically.
<unk>.
Some kind of short term facility, either a freaking or or both.
Or just keeps <unk>.
One in three months for the next one or two payments.
<unk>.
How we're trying to figure it is the next phase which will be.
Being contact with all those fine.
Unfortunately.
Oh.
Oh, how further reprogramming initiative.
<unk> barks out <unk>.
<unk>.
Two Fraser loans.
Right.
I'm in terms of of the fourth portfolio.
With I mean, that's that's the macro numbers in terms of default.
Everybody has to be to a certain degree it affected by <unk> <unk>, if I wasn't mentioned that we'd have been.
Reactive I'm perfectly for me.
These reprogramming here in the short them receipts I'm Freaking English.
Okay. Thanks, and then the follow up question.
You know you talked about your level of provisioning, which is correlated to your assumption of G.D.P. can fractional it sounds like it was 5.3%.
So, but but but you also have this event you lot that program that kicks in and helps you know whether the government takes.
80% to 98% of their risk so how how do you. So that two questions. There is first I didn't really understand the explanation how these auctions and work.
If there has multiple banks.
Ah involved and have obviously everybody wants to get part of this program doesn't mean that allocated based on market share or if you can we didn't explain that data. It would be helpful. And then the second question is <unk>.
With respect to your credit losses, something Howdy factor, obviously, you have your own models of Y'all have this government support which is fairly significant.
So how do you factor dollars.
You know those reports in in your credit you know credit metrics and that credit loss assumption.
Yeah.
They'll talk program.
<unk>.
Yeah.
Yeah.
I was going to explain the there.
Sorry.
<unk>.
The functional and I find <unk> is is that we've got enough listened to learn <unk> options.
Based on the on the property.
Berman.
<unk>.
<unk> <unk> <unk> <unk> <unk> <unk> on the bags and bags acoustic data in those talk shows and therefore, they get the the among the ones that <unk> the lowest rate for the French is goodbye. That's good yeah. The the amount often.
After that each bank.
Dump funder Ooh slide <unk> <unk>.
<unk>.
Then go away Douglas.
<unk>.
And remember.
Let me in terms of the group.
Yeah.
<unk> I mean, the option is based on what back okay.
<unk> clients.
Depending on the site called the loan as well Oh all right.
But I don't.
In their guy.
That's what they oversee appraisal we think it's about.
But of course.
We will see it or not.
Fit the girl, you'll notice estimation approach.
Following corridor, having computers that affect your thing.
And.
The number for the first quarter.
Okay, Gotcha and the the the the very last well well I didn't hear your responsibilities revolves around.
Low and that feel that you have I.D.
Well considering.
Performing long correct, they haven't really been.
No classified as and then daily anywhere in any way right.
<unk>.
Yeah.
Okay. Okay, I think is decorated in performing lungs.
Yeah, that's correct.
Our bayes.
Hold up affirming them.
Okay. Thank it.
Yeah.
Well take our last question.
Color. Please go ahead.
Mm.
I think is that I'm in <unk> Morgan cows are like a follow up admiring [noise].
I I understand why don't you may sound <unk> good couldn't move up the next to barter as your average price in loans that even the higher risk.
But it's too I I don't work.
Yeah like that Margaret should go up because you have like effective upgrading that's true <unk>. They didn't even go into with program you have to like wholesale likely growing more than a retail and also get little arranged to think like an angry <unk>. That's a good thing what negative for security and.
And finally, I I guess renegotiate at the most you are doing some really good facials for credit card in order for all the time of year old interest rate.
<unk>.
So if you are recyclable, what's written English created so my point is how how how can we see margins.
Regarding their renegotiation.
How big pressure on you.
Thank you.
[laughter].
Let let me go.
For farms and probably my my on his head was relating to I would say they stand up books, while you're in northern including.
But if you're not except they'd all be close you are right, but you know kept their rules he's going to sound very seeing margin. It's <unk> Rusty interest rate has being or Wang 1%, we'd cosby clans old 0.5%. So.
<unk> you are right you can see the rest you know how big they they.
Going to go down <unk> <unk> <unk> relating to the older parents, Okay portfolio, what is going on east that.
<unk> a loans.
They loans Cosby University nonsense, an interest rate drops euro I'm, probably we are going to make some kind of.
A impairment charge between song interest rate and zero for these experiments in particular by the other parts of their portfolio tend to be <unk> seemed learn to they will be you know rates, but U.S. band aid longer terms and the new to you nation that these going to be yeah.
A smaller done as being in the previous <unk> out of going through beauty you need you on a high year, we hire a spread.
Don't do role during these year, we should see these hospital.
Yeah, but you are right. If you can see there they picked up a.
If he noticed kept the rule.
The <unk> Dab it has to blend it is going to go down for these part though.
<unk> <unk> <unk>, a a portfolio.
No Super clear and I don't know, that's where I.
A final.
I know, it's just if I may Oh, yeah active rule is there any seniority on the data like Barry do like a client needs to pay.
Before they pain relievers line is off the bank.
[laughter].
They they they like the idea of reality you up here Louise to provide new fresh working copy does.
He then they tend not to read a oh pay pay I know that dates back to provide fresh working copy cat declines that's the name pension program.
If you combine all the <unk> very comprehensive packed that's you and a safety India 17, you offered that classmates Keith and freezing.
That you Perl by.
The reality, but they do have phrase working copy belt on down the road based on your specific circumstances, probably there's going to be unusual rescue knows his but more tailor made based on the performance in the total importers.
You know get rid Jones, thank you very much to.
<unk>.
Yeah, I I'm here.
[laughter] Yeah, Yeah, just to go in what sense her mentioned about the F. zero.
It's correct that the the idea is to provide first working new working copies huh. However, there <unk> the only limitation regarding.
They.
Previews.
<unk> functionalities, you know to breed thing in the great.
Indicating the classes didn't survive <unk>, if the client business survived on the road like witchcraft has seniority yellow, that's what I've done before or the attractive up there.
Collect these I don't know any kind of money I thought was that was remaining.
So so so how how it works is the <unk> 80, 219, 98% of the reactor you up or do loans is backed by the.
<unk>.
Then we have to collect.
Select whatever can be collected from the client yeah or not by B., Buss, who base <unk> financial institutions <unk> that was.
Which I was like a lot, though for a business loans about that or logo, we start show.
Okay. Thank you very much.
[laughter].
We do have one more question color. Please go ahead.
Yeah.
Often pretty to discuss.
Really the way.
Decide how much.
The the oxygen and how much you know to to allocate how much lending to do it you know 1% rate is based on your threat theft.
Of your clients right. So if you see the the client is very.
That position and and you know better taste and.
1% of even zero percent loan to them.
Both of them that Boston than to do that because that would save potentially the client on and set state you from recordings N.T.L., even though you may sacrifice interesting, but right. So that's how you. That's how you decide how much you know how much the dial up a battle down there <unk> that that.
Correct.
That that's good that's girlfriend funds correct. The the objective for regarding direct you up a real problem.
To to provide.
Most of the benefits do outline obviously does this profile apologized <unk> more working or.
Plugging W.L.C.D.D. extorting or your rates on on these shows eh improve.
Windfall file of the of for for a phone.
But so far.
We expect is that they're back you up at all times already.
Oh over two thirds something program.
I was already being the auction, while we're expect you to satisfy.
The model almost all all all the time.
Okay and to say the same goes for F.I.E.
That's the micro businesses is that the same mechanics that banks participated in the auction.
Obviously, the low limits may be different.
Essentially the same idea at the same <unk>. The same operate you know it works the same way was an X.D. right.
Okay.
<unk> more to Mike the micro finally.
You may be aware, that's high correlation with a formality the micro business. So that they think about planes over Michael find nothing else didn't qualify for a few up you go up and then not formality. So the <unk> the the target basically.
Oh <unk> inform upright.
280 point last month ago, it looks like if I'm dropping the disclosers correctly, but you you guys have essentially.
<unk> <unk>.
<unk>.
I agree that right is that correct.
Huh.
No more on the form.
And it.
<unk>.
Under normal circumstances, you definitely happen because you have already some funding or they relocate like Monday posted some savings that we paid low rate. So enormous technical terms is what you smell is lower interest rate yeah mine's games, because you cannot.
Hum.
What the young names your needs that due to the change of recent <unk> claims to read you need loans, we why their margins.
In order to reflect higher probability so before.
<unk>.
See <unk>.
Because you already have funding very close to.
Yeah.
Okay.
Right there alone higher Thankfully, then we would've otherwise.
Everyone else is the banking system right.
Yes.
Okay understood. Okay. Thank you.
Okay.
[laughter].
Well take our next question of color. Please go ahead.
[noise] [noise] think year old everyone, sorry for you know <unk>, but I I have a follow up so let's just give an example here. It's there is there 40 million loan.
Yeah.
And you land on additional thing from you know government landing line.
Faults and there was only 40 million in collateral.
Who get the 40 me then you or the line that goes to the treatment and my second question. If I may also from off when I.
When you do not.
<unk> on the renegotiated line for two months do you recall organized <unk> mine are you, arguing that border.
<unk> zero or do you <unk> powder loan and you stop recording nice seeing seeing that you from duck really matter, where you're thinking she was not a.
[noise] [noise] [noise] <unk>.
[laughter].
Sure.
<unk>.
Yeah go ahead.
Yes, I take the second question, what we are doing conceptually indicates folksy really interest rate is to originate anew long.
They the older you Stockmans I'm older you need a new program indicates a V.C.B. is <unk> <unk> <unk>. The most of the case field is about babies how balloon. It on what you are going to do in this sick one quarter east to recognize some kind of him.
<unk> between 30 meters rate I'm, just zero rate that you are going to charge. These recognition when he's going to be or.
Through the time, but also didn't it.
Because you are who had the into problem no one I I'm a specific lost one time, but I lowered into it. It was read that these two euros. So it I I don't know <unk>.
<unk> held very much. So you don't have to keep in in the second Q. it's clear.
The other one about the collaborate.
Yep.
<unk>.
Yeah, <unk> that they're collateral wants to Lynch before.
That'd be let alone.
That's about to graduate school level I'm not sure who.
<unk>, but there there are so outfits that can be.
Big enough for cholesterol, a as a way of collecting then you you will share on my body, possibly.
Right regarding green.
Oh, <unk> <unk> <unk> <unk> <unk> I I believe it's three months.
After that and you have to.
Oh collecting for both on so.
<unk>.
[noise] very clear thank you very much.
Yeah.
We won't be taking our last question now.
Older. Please god.
[noise] Hello petals don't once again I'm from H.B.C.
<unk>.
<unk> Oh sets up you expect within a month was pets, releasing <unk> at the end of the month however for.
Anybody who follows then then I'm just went through unfortunately continue to see an increase in cases of an increasingly that's what is your realistic expectation on <unk>.
We will be east and have you already.
You're 7% to 11%.
Expectation Unfortunately decline thank you.
Yes, well we are not.
<unk>.
Sorry, what we are assuming for parties that economy now he's working or wrong 45, 50%. We the unique <unk> really is going to go or 70%.
<unk> up to 100%.
But it's a difficult twisty made these how it is going to be to come back Oh say specific on T.V.D.'s not only based on regulation, but based on behavior of the coastal my lifting can gruesome or restore.
So when we are talking about these these uncle Rachel A.G.D.P.S. big stations.
We are considering the in the first case <unk> reopening.
That's probably lose the schedule I'm in the most basic <unk> 13 for the same that these are more throughout the world or lasik.
Reopening process, but <unk> the the range is Barry White I'm times being moving.
The base decisions staking in terms of extended instinctual, if they look down on methodology of the Opinium Dick on them.
[noise] alright, thank you very much.
Thank you now I'd like to turn the conference back to Mr. Walter Bailey, Chief Executive Officer for closing remarks.
[noise], it's like you're wanting to all of you.
<unk> unprecedented pads.
Some of us have gone through several domestic and international crisis.
We'll have been somewhat different.
The key aspects to understand better better understand the current.
Forwardlooking scenarios and what makes this terrorist situation.
My mind out of the followed by one is that Phil dramatic starting from Sir.
Right.
Second.
Extremely difficult to predict that's that's I was saying that will help up production after acquiring.
Sports was not necessarily be at a straight line, but perhaps setbacks along the way.
<unk> that capacity of the government <unk>, probably pills in public works qualities has limitations.
And last but that please.
This <unk> all sectors of the economy.
The spring so for a balance sheets.
<unk> it's tremendous.
And it gives us the resources not only for whether this crisis, but two birds four minutes earlier.
Thus, allowing us to capture opportunities and it both crisis America.
Alright, conservative nature and balance sheets trends.
<unk>.
Portion portion of the impact you know or the port the folder.
That line of action, that's boring could be affected over and over.
<unk>.
Our life of action in the month Cox.
[noise] that's mentioned by says are also going forwards.
Maybe with our strategies projects and initiatives <unk> Christmas to prioritize.
Then you'll sit nervous.
They're still working for all this.
To finalize comes banks are so holders for your support.
Unfortunately are extremely excited cool to all.
<unk>, who chop once again demonstrated to Memphis commitment for customers and institutions.
Thank you very much for this cold and we look forward to meeting with nukes. During the months ahead, Thank you and goodbye.
Thank you ladies and gentlemen, that's come quits today's presentation you may now disconnect.
Ah.
[music].