Q3 2020 Credicorp Ltd Earnings Call
Good morning, everyone I would like to welcome all of you to Credicorp Limited third quarter 2020 conference call we'd.
We now have our speakers in conference.
Please be aware that each of your lines is an English only mode.
Conclusion of todays presentation, we will not be enough questions at that time instructions will be given as to the procedure to follow if you would like to ask a question.
With us today is Mr., Walter Bayly, Chief Executive Officer.
Mr. Gian Franco Ferrari Deputy Chief Executive Officer.
Mr Rinaldo, yes that chief risk officer.
And Mr., Cesar Ribeiro <unk> Chief Financial Officer.
Now what are you my pleasure to turn the conference I put your credit card Chief Financial Officer, Mr. sector, Yes, Mr. B.S. you may begin.
Thank you Neil.
Good morning.
<unk> Conference call <unk> earnings.
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She is our previous conference call at this time.
The situation into guidance.
Seasonably and economy continues to be the ubiquity.
Do you usually see scenario exceeded expectations.
[laughter] weekly didn't told possibly do you still see needs. He can lead you recent launch.
Finally, we remain vigilant keep track.
Second wave called <unk>.
He bought Allen.
They leave young economy experienced V shape recovery through all this is going to be told centric decline.
You can only come see us being equally well that the past few months. According to the latest on T. shirts that economic TV de Novos was only 10% below the figure reported for the same time last year. This compares favorably with the minus 40% would you still for the year on year comparison.
Okay.
These V shape recovery has also been so let's say, they're only going to only indicate goes as you can see the trucks.
Stay transactions same in dispatches equaled sales, possibly going to see needed to complete response <unk> legal market.
Moving to page.
To BCP.
Next slide please.
Oh no it.
Oh GDP posted keeps its steepest decline in the second quarter of 2020 is rapidly gaining tobey told him let me know.
Mark in consensus has gradually green you suspect patients they will GDP growth 2021.
<unk> is expected to lead the economic recovery lag time towards 2021, as we let me address its trauma brick going on there I mean high commodity prices.
Well there are many stimulus packages.
Our previous conference calls, we expect the GDP to draw between 11%, 18% 2020 and that deal we bounce in 2021.
Between 6% and Tim but I'll.
Oh, what listed <unk> latest estimate suggest that GDP weakened truck a one plus one.
On slide 19, 2020, we see bounce between 9% and 20% in 2021.
You do see important to note that these you diesel collections, what's where is unconstitutional changes are underway in the countries in which grade he called it right you believe Ya Li succeed.
Police body worn degenerate lakeshore, we take all piece on November eight in Chile. So we keep a senzaki population, which is favorable writing a new constitution.
Next slide please.
Policy fees train seen poor economic data piecemeal rate ended solutions <unk> dot dot for the financials.
Transsexuals, we'd get it caught us a b C. B cost exceeded recalled be 19 levels. Nonetheless gradient current transactions recovery I thought the slower pace.
During the C Corp, reactive to program continue to contribute to loan growth system wide.
According to that.
Bags no robust suite of 14.1 good thing.
Excuse me. This is yeah right up till July for attendance me journey.
This is yeah right I'm speaking privately to your line may have your name.
Excuse me. This is the operator Apple drilling privately for attendance purposes may I have your name.
You are now rejoining the main conference call.
According to its last monthly policies statement Central Bank, it's time to Reighty twist on liquidity injections to Wainshal teach ins second Congress is currently discussing initiatives in several key areas April pools has to be made by using a special committee showed that contemplates.
A complete overhaul of the pit William pension fund system.
These deals be console equally how much you really paki breed, even day school, but complex you do have to make sure. The commission has requested a decent on time.
Yes.
[laughter].
Earlier this week, a moshe what needs to be beach depressing the precedent he suspected 2% use legal defense on Monday November nine.
For.
A number of deals on pension funds withdrawals husby bleed she's the first war on November 2nd I know that would be less Pos you didn't base when there's the right to make withdrawals I gained at Fox.
She's a single program when he told me transpose began in October. These instruments, we try to know what you noticed husbands guidance teaches the rig ammonia Charlie trends, they're probably going to make to mitigate the impact of the day.
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Thanks Dick.
The government recently approved it he will soon see the program, we should run the private sector to field specific requirements can access these plus c. diff.
The program Ace was there if we cougar inform unemployment low.
Lastly, the Gordon in high school out they called me 19 government program, we choose the rig did that you do others I'm using me under this initiative. The bank I'm also reduce interest rates in exchange for a d. should not go there long called <unk> or very specific segments clients, we will continue to close.
The mortgage or developments on the economic policy and regulatory problems.
Great Dane greedy corporations.
Next slide please.
That's great color, we also see clear sign somebody up to date.
The reprogrammed portfolio cost is probably like there has been an up tick in demand for financial roles in D.V. looks like Additionally, they need [laughter] celebrating clogging migration to digital China. It was [noise], we truck handling a lot more to show the upswing in transactions over the past few years.
We have worked to support our clients a day adjusted new diagnostics, we huh I yoker desperate programming facilities to our clients to bolster the record date.
Probably hold you accountable city, all you want, but saying Oh, great. He quotes total loans and 11% Credicorp still time zones corresponding to the retained recruitment portfolio.
[noise] didn't you coordinate gene guarantee program target, mainly a subset of these for <unk> to be eligible loans have subject to term loan amount tops and the facilities have been solely to clients that have received more than government C. <unk> D. C. Mutations, we do not expect dating back to be highly seek needs.
But we continue to monitor our client needs to respond quickly to changes [noise] chip timber Mark a turning point in loan origination and sale so be sure around school retail micro find them loans, you know October yeah, what trends I think tweet.
Oh, what clients adoption do you got a Chinese which has which once these costs were indeed, they still they said they show me more transformational strategy continues to gain couldn't see that tranche.
All of these have created core.
Then you need school to foster a more inclusive the call.
Next slide please.
Going on to our third quarter financial highlights was sold.
Shows that the war to cease to be high now I'm Crazy Gordon you. Some devote to equally is important to note that there were several nonrecurring events this quarter.
How much of that was sold chose.
Quarter over year analyses the loan portfolio on the postpaid base grew more than 21% and 27% or two its bottom since respect.
Really mainly by loans from the government really from Boston isolating the effects of these programs, creating corporate structure the loan portfolio. So it worked out and bought a niche interesting Congress you girls increased 10.2% quarter over quarter, we couldn't see really to this great long term care.
Now, let's see so the year over year Bill Lucia adjusted interest English shows that the adjusted interest income decreased 8.3% driven by lower interest rate and a contraction is trucked or long, partially offset by your investment portfolio much.
[noise] White adjusted interest expenses totaled 19.3% due to funding the structural Denise age.
In this context adjusted net interest income constructed 4.3 of course thing I need to see tweet it.
4.5%.
She income increased 54% walked through the quarter in line with economic regulation, and increasing transactional activity and disgraceful fee waivers insurance underwriter whistles coordinate.
Everything mainly by an increase in claims quarter mortality related to COVID-19, the life business, which was partially offset by lower clean in the property and casualty business because we see improved this quarter as he tweeted a 3.84 per cent for what looking probably shown expenses cool compare.
To the previous quarter different slates and not what would be shown in the macroeconomic outlook and the fact that the probability of default huh falling in most segments driven by improvements in client behavior.
This quarter was marked by significant nonrecurring charges, we will explain to all their presentation <unk> totaled 185 million after taxes in this context Credicorp reported 105 million sold is mid teens.
Which represent a return over there with you 1.8% if we isolate nonrecurring charges. Adjusted net income this quarter was 289 million solid adjusted are only 4.9%.
I will now explain that were sold our main operating units next slide please.
I will just talk about your cleaning BCP stand alone quarterly results.
Quarter over quarter basis loan growth was driven mainly by the second tranche of the reactive approach.
Loans to these phase where these schools primary in the SMB business and you've seen the peanuts happens.
Is this scenario the total loan portfolio, we bought it seemed you segments grew 34%, while the total loan portfolio at BCP equaled, 4.5% you. We just literally aktiv a b C. D says truck sort of portfolio constructed 4.9% this quarter, mainly driven by wholesale banking what appliance we.
Pay liquidity facilities. These moves at the beginning of the crisis.
Well go what's that evolution with his truck total loan portfolio average daily balances constructed you do see important to know that loan will you need.
Banking is gaining traction and he says they did to reach pretty pathetic levels by year end.
It took a long time is structurally loan portfolio posted 24, 21.41, 0.9% growth respectively.
The bottom line this year.
BCP funding is structural costs improved to walk this month.
In the third quarter of 2020 total deposits grew 7% worked or what was that mainly driven by non interest bearing deposits and savings.
Which increased 11% and 8% respectively.
In the year over year evolution total deposits grew 30%.
What are your growth in the Aussie, it's west led by non interest bearing demand deposits and saving deposits, which is funded 66% or 38% respectively.
He's context, BCP has being able to live eight older socialism funding such as you into bonds right, both senior bonds, which mature this quarter. Additionally, BCP executed the liability management transaction do sport. This question.
He needed bonds maturing in 2020 seats have 2027 wait so 6.875% access 0.1.
Two 5%, respectively bought in that $850 million subordinated bond at 3.125 for the same data matures into any clarity on this call about 2025.
Next slide please.
Now I will comment on the evolution of payments behavior in retail banking at BCP I'm disgusted we broke it up for.
Just sort of war.
Paid claims at BCP with GE sit on improvement in their opinion behave honey Huh, we took when ondeck reactivation.
One time payments on these trucks are we too long you reached 94% at the end of September it's improving from 72% in doing.
Hi, Natalie Cecil statements performance shows that on time payments only structure. If we take loans do you differing by subsections indicates so it seemed he didn't pay minimum wage for businesses that Ben if he did cross reactive alone was he tweeted by 94% base <unk> 88.
Same for non been official guidance indicates hoping to be loves it payment ratio is higher for DC pay payroll.
Reduced that no one time payment rate, 97% compared to 91% for no pay us.
By the end of September 71% of the structure, we take before you reported no <unk> programming a seat doing.
During the same month Bcps reprogram retail portfolios, he tweeted up 23%, which is far below the figure of 58%, which is the first wave of policy.
I've got knowledge of the retail portfolio much reason for flight. The deal is that high uncertainty portfolio is comprised of both supply and stuff. How does he lead the grace period I have received at least one great plus he did the old that's how we'll be doing salt currently 18% the BCP.
Trucks are we to portfolio falls within these cuts.
Plus loans can you do into poor quarter. These yet we will have more information to assist the performance I'm pleased these false next slide please.
The improvement in Madrid, [laughter] Asians and client behavior Syndicate, those litigation expenses to drop this quarter Nonetheless.
It's quality began to deteriorate grace periods is tight and sounds like you were unable to service the ads b.
We see piece could be selling expenses decreased quarter over quarter due to improving and expectations for GDP growth.
2021, and 2022 and fine tuning of reasons for that.
Updating CLI information to create a bit of each other's client situations.
<unk> expenses for the individual segment reduced at the highest decreased due to significant provisioning in the second quarter will be here. This quarter there'll be some expenses were mainly concentrated in.
Yes, I mean PMIC men in the retail portfolio after delinquency levels rose among clients that benefited from more than one Sci.
Finally, wholesale banking provisional expenses increased over a small number of clients in the energy an airplane sectors. In this scenario this truck for cost of risk to tweak that a three point, 22% for the quarter and 5.33% year to date.
[noise] deterioration in its trajectory loans, when mainly concentrated in the consumer greeting card and you see meet payment.
Grace periods. He D. These are wireless SMB segment will expire not to rush in October and December respectively, such.
Such we anticipate overdue loans degrees in the D. These wells portfolio next quarter at Chico's Irene in the credit card and consumer set.
Well there you don't see this can it be me are expected to rise in the first quarter of 2021.
Pretty quotes provision level I know its quality this quarter led to MPL coverage ratio to heat up right go high 157% finally, bcps accumulated prohibitions, representing 7.8 was saying well the total is trucked <unk> portfolio.
Next slide please.
Going on to this piece was holes niche interest seems to initiate typically covert grew 10.2 same quarter over quarter recovering from zero interest rate longer.
Analysis of the adjusted net interest income we believe it'll go together shows for.
Adjusted interest seen couldn't decreased 8.2% due to a drop in market rate, which was partially offset by asking the investment portfolio management and second.
Adjusted expenses fell 27% due to a drop in interest rate funding opting usage in discounting adjusted net interest Cgfone pool, 2.5% year over year. In contrast need an instructor named decreased due to southern Copper's first b piece is structurally mean decreased.
23 basis points quarter over quarter. They got the team buckled lowered interest rate was partially offset by active investment portfolio management, which increased 10 transformation, while maintaining short chain liquidity positions and you'll see me say show up the construction cycle below me was marked by a significant increase.
So Rick do you alone on this like construction infrastructure loves and third did decrease of 19 basis points you need due to nonrecurring expenses related to liability management transaction couldn't do that in July.
We suggested means he tweeted about 1.6% this quarter in terms of Noam can actually go core items increased 38% quarter over quarter hunting hung with economic reactivation.
2% quarter over quarter growth posted in vehicle, what three they buy an upswing in truck sanctions and transactions and I do.
Activation fee waivers last port in line with our clients report.
We expected these are what trend to continue in coming months.
All he noncore items was driven mainly by your Spanish net gains from securities.
Next slide please.
Lastly, the P. since you raised the BCP improved quarter over quarter save it on short term cost control measures cost being applied including reducing nonessential expenses on body of work station there.
They're adjusting overreaching goal for the nonrecurring charges when do you start in the second and third quarter of this year, the adjusting efficiency ratio improved from seven.
39.9% 38.9 or same quarter report.
Especially during our Investor day BCBS transformation has tried to use have been seen we maintain or what else be ratio be called me. The most efficient banks in Latin America.
Both online BCP generated.
421 million profit contributions this quarter next slide please.
With regard to Michael Fine.
Let me explain the dynamics of my Broncos loan portfolio and the policies base. This quarter loan growth of me banquet was attributable to government release programs, namely gravity. It's.
Second place Sofia Diva is qualifying requirements for Michael on his movies.
I don't know how much more of the bango clients kind of tough to see.
By the end of September Mibanco Huh. This board more than 2.3 billion sold this year to date, and then react either I program yeah.
For me.
Loans rose, 15.1% year over year make sure in other states.
If we exclude government loans this truck toward portfolio have you been filled 3.4% year over year in September normally you nation, we move on structured portfolio began to recall that bolstered by new come base to support clients that Aristide, we'd be a word we used a couple of times.
God wouldn't be Broncos funding is trucked or demand and saving deposits grew 26% quarter over quarter, and 37% year over year diesel pollution Copel, we not increasing funding from the central bank to be no disbursements of government long lived the funding cost to fall 56 basis points.
Worked or would work toward I 98 basis point year over year.
Next slide please.
Claim payments have you been trending upward and the high certainty portfolio Huston seasonable diminish this quarter me bunkers, so greasy onetime payment on the draw the facility is needed, but it's clearly.
By the end of September the breakdown, whereas truck for the portfolio. What's this fall.
61% of loans, where reprogram an up to date.
I was gonna, saying were nonrecurring <unk> up to date loans and four points compared to the last quarter.
Finally, poor person, where well get you launch as mentioned previously the high uncertainty portfolio is comprised of planes that were still within the Grace period Hum, we see you've got at least one created a sealy D. Although the Hogan you stop these portfolios possible all seem to be up when you bundle of some type.
Payments in Greece, Maxes like Geez.
Tobey 19 environment continues to impact you bonkers provisional expenses, Rosie Probations was attributable both conditional probability of default rate or the claim reserve assessments. What update this was partially offset by any group EBITDA.
The economic case to be made so our forward looking guidance.
Expansion in publishing expenses Coke, we took on trucks shrinking as truck towards loan portfolio led the structural costs I'm pleased to see tweet a 6.1% on an annualized basis.
In terms of portfolio quality this truck toward NPL ratio rose to 9.3% just could work, though this was mainly attributable to an increase in Brooklyn, and see for some flight that.
February 29 at least some 15 days overdue delinquency among clients that did not use cannot showed really policy.
These conflicts mibanco NPL coverage ratio in Greece, and tweaked it a 206.5%.
No me.
Me Bungle accumulated for B show represented 19% of the Ttwocandida is truck product portfolio this quarter.
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Now, let's look at me about goals for poor.
Net interest income.
I mean were negatively impacted by the long mix.
But low margin government loans, rather than his trump probably loans drove growth. This negative effect wasserstein tweeted by Whitney tourists were themselves up that race busyness pipe and some clients with Easter in delinquency and decreasing interest rate.
We exclude the effect of government programs move I'm going to try to sort of need to tweak it 12%. This quarter no financial income begun to recover driven by an up tick in bancassurance policies have peace.
Operating expenses decreased 7.3% year over year, which was attributable to cost saving program. Nonetheless income decrease a passing phase leading to a deterioration in efficiency going forward. Additionally initiatives to improve efficiency include optimization optimizing the network centralizing.
Also sees an improve independent PBT.
<unk> relationship none that yours truly technology into bottom line me BAMKO generated a loss this quarter, which was mainly due to the contractual nature interesting and then increasing probably show expenses next.
Next slide please.
Now I will comment on the results of the short on businesses this quarter little bit, but see if it wasn't it didn't go what's nice about these due to higher net clings here.
<unk> IB on our intuitive, but not reported for these shows the lighting business, especially for the credit life and disability us would buy books, she calls which were heavily impacted by the increasing mortality due to cold at night.
Property and casualty business was sold to improve year over year due to a decrease in net claims, namely the card business you to mobility of restrictions.
That.
In the quarter over quarter on that.
Net premiums indeed, okay gosh, what the business would you still be quoted you to new sales something new with me.
Mainly in the car maybe color systems businesses.
So it feels insurance business improved year over year, driven by a dropping it cleans up after the month, we're old fashioned services to doing that.
The health provider business was used to a decrease in demand for services.
Due to coupons helium itself clinics and the fact that the clients pretty quick Lee appointments in the COVID-19 conflicts.
[noise], specifically regulatory copied the Cobra ratio increase.
From 1.3% December two times 2019 to 1.3% to 33%.
Sorry, 1.33, or so September 20, Twond, which was attributable to the earning utilization.
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Regarding the pension fund business assets under management remain relatively stable quarter over quarter been withdrawals under government mandate to see this was where rod really offset by the combined effect of an increasing monthly contributions on growth and profitability. It is important to me.
Note that the Bill pass on November 2nd which allows additional withdrawal really bad assets under management, what an estimated 3 billion sold.
[noise] knit team couldn't decrease quarter over quarter. They do try declined the profitability of the resource fund inline with a decreasing market profitability, a nonrecurring expenses related to see how do we draw and policy.
This was partially offset by not increasing piece of the fee essentially what at least at this quarter.
The year over year.
Analyses total fees decreased given that a significant number of feed beautiful India fielded based loans the jokes during the five day.
Finally, a corporation commission. He says do you live by waiting comprehensive pension system before it is very difficult to predict how this will impact.
Our business next slide please.
Regarding our investment banking and wealth management business [laughter] hotel assets under management posted an increase of 7.8% quarter over quarter, which was fully breach. They got good use by koby 19, even but being a better management in the first quarter.
Yes.
Regarding profit contribution curing income grew 13% October quarter. This increase was mainly driven by every covering our corporate finance business in line with economic reservations ideal cultures.
Within the pipeline where to execute in the third quarter, including went from 20 loans bomb changes.
Regarding nonrecurring Brussels, there were two charges this quarter for that.
It was a mark to Mark will do something that probably targeting basement. It used to be this led to unrealized losses 33 million Solis. These core to fix the significant unrealized gains. Thus worked cycle. There was no securing provision expense for the legal can you just see that it used to be for the month of scale.
Which bumps in the year to date unrealized gains on the aforementioned proprietary best.
Next slide please.
Now I will just summarize really cool to consolidate the perclot.
Pretty close loan portfolio grew 19.6% year over year Otherness daily balances.
And 21.3% in quarter and bought bolstered by loans on the Golden approach, if we isolate that type of government programs on the truckload loan portfolio grew.
1.8% year over year average daily balances I'm fail.
The real 0.3% importer in boxes and the analysis of the balance sheet. This Trump trick shows that pretty good interest, earning assets increased 28.5% year over year, driven by both the loan portfolio and the investment.
In the basement portfolio, we have optimized existing liquidity to returns while managing interest rate, we are maintaining a solid short term liquidity bulk.
Pretty good upsell optimize she's funding a structural by optimizing the deposit mix.
Paying off all that funding sources and executing on liability management is tried to talk to my the maturity profile and reduce the cost of the subordinated box. Consequently greatly corpses truck total funding costs totaled 40 basis points year to date to 2.0%.
Regarding on interest, earning assets there wasn't enough just not too long ago, but they're just good wins this quarter 64 million. So it's important to do.
Note that we have why are these business prior to the crisis unless such that Gordon estimate value has varied from nobody nisha <unk>. Some delays, we still see significant potential value down the road.
Which can be leveraged to credit the waste management and that improvement and efficiency a brother TV.
Next slide please.
Now to summarize the balloons Shaun Kelley main indicators.
Hi, we need goofing payments uneconomic reactivation provision expenses dropped quarter over quarter that heating up here in the second quarter. We expect these done what train to contain.
Asset quality deteriorated as Grace bugles, despite some signs from Maine, when able to separate that nonetheless, our Colgate US racial increase year over year to see tweeted up 169.9%.
Net interest income increased 10.2 per same quarter over quarter, Vietnam leases with adjusted net interesting bolt on year over year basis indicates that the adjusted interest seen decreased 8.3%, while adjusted interest expenses paid 19.3%. Consequently, adjusted net interest here.
Construct at 4.3 bus.
Credit cards net interest margin. This quarter was he tweeted up 4.45% NIM was negatively impacted by a decrease in this truck told me the cauldron in pro rata structurally long mix finally, nonrecurring charges related coupon thats changed on such.
Structurally me, what's he tweeted fourpoint, 46% for the quarter up 4.22% year to date. Finally, he suggested me I missed truck deliveries I just didn't mean, she traded of 1.6% one point, 87% respect.
Next slide please.
No no actually expanded 8.6% worked over quarter, driven mainly by the poor Greece.
54%, increasing fee income due to significant growth in transactional activity in BCP. Additionally, if pick transactions grew 3.8 go see worked over four role in these core idea was partially offset by your construction engineering securities related to the Mark from our production up.
Retarding basement or approximately 22% million sold it seemed that trading portfolio than it used to be an impairment charge of 23 million sold is that I've done what adjusting wants me to devalue a private it with the best.
In terms of the deficiency the cost to income ratio see tweeted.
45.9% year to date adjusting for nonrecurring events, the adjusted efficiency ratio to trade at a 44.5% year to date the year over year deterioration, all 160 basis point swing.
West mainly driven by micro finance I know about half of the stroke was a three well towards to the consolidation of buckle.
<unk>.
The short and cost control measures have included 'cause using non essential expenses body able to compensation and the food people face to face China.
Teams are challenging the leanings of our operating mortgage talked in my physical distribution network support functions organization on I T architect.
Next slide please.
But the profitability level pretty close to adjusted net income and adjusted our OE. He tweeted about 737 million total it until person points was that the lease this quarter.
This quarter to say without nonrecurring charges with a book to for a total of 185 million sold its up their taxes, if we exclude nonrecurring charges. Our adjusted net income for this quarter was 289 million sold it was just over 25 it a shade with he was he tweets that 4.9%.
Oh, Nick would you to one live at school, both BCP Army banquet remain above where he doesn't that touches she treated up 11.5 on 16.5 respect US nation, you know what last conference call, our quoting cooks to one ratio sort of calculate it did they move yet got by counting on that.
Cash used in 18 competes in the past it was not miss its hard to these calls they see show because low kind of an IRS 19, compugen will always be very CBD, but even that temporary differences not relevant in the current environment, we want to draw your attention to these point now, let's look at how what else.
Next slide please.
In this environment, we can offer a clear picture of the medium term, we expect <unk> GDP to grow between like per se.
At 12% in 2021, yeah.
So low mortgage origination our commercial activity is accelerating by December of this year, we expect to return to pre funding levels in the vehicle segments, I'm cheap, 75%, 85% pre pandemic live it in they see me Michael financing.
Regarding mean, they've got the theme of the board and the progress of me to let alone why he was trucked currently would benefit from a decrease in the funding cost I know the management of the investment portfolio.
He's on property and casualty premium shouldn't continues to increase but we'd be partially offset by like claims.
Provision expenses are expected to continue to follow a downward trend next quarter until 2021, we will continue to control expenses and 2020 and not fine tuning BCBS operating mode is to determine as trucks every measure for the medium term micro finance may assures her underway took him.
The branch knew what an improved pro TV deal to sell the sports finally, we state our I really to return to the high teens by the second semester of 2022.
With these comments I would like to open the queue and eight please.
Thank you very much ladies.
Ladies and gentlemen at this time, we would like to open the floor for questions.
If you would like to ask a question. Please sit now by pressing star one on your telephone keypad now [laughter]. If you are using a speaker phone. Please make sure your mute button its function.
To allow your signal to Recalculate man [noise].
The gang press Star one to ask a question.
Well pause for just an element to allow everyone the opportunity for questions.
We also ask that you. Please only ask one question at a time after each question has been addressed by your speakers you.
[laughter] many.
But again please.
[music].
Okay.
Yes.
That's right.
San Francisco.
No.
[noise] Johnson <unk> Johnson.
Well of course.
[laughter].
[laughter] overview.
How much.
They make.
Okay.
[laughter].
[laughter].
Oh.
Yeah.
[laughter] present screen presence here.
Will be enough to cover that booked out for you.
Just want to know if you have already created enough for reinsurance if you can probably tell I'm sorry, there seem okay.
And then my final question is on Insulins Raving [laughter].
What affected by higher claims in life insurance due to the Gulf 19, So I would like to see your expectations for the insurance revenues in the next quarters. Thanks.
[noise] [noise] Ah thank you on that call it.
Regarding the questions on provisions as we speak that Weve seen a quite an improvement in the levels of revisions to these took work as compared to second quarter. We expect it to have a number closer to what do we need and in the first quarter.
On the positive trends both in the macro environment as well as in the performance of our clients well.
Make us feel quite positive to work a little no provision for the next quarter. We will we don't have like Wi Sys number today, but we see that Doug.