Q2 2020 Xp Inc Earnings Call

Okay it worth so this short video is just to present some highlights. But let's go to the presentation. I will try to be as short as I can. So as fast as I can so we can go to the community. So going directly to our KP eyes and financials of the second quarter this year, we start with our assets and the custody as you can see on the left. We reached at the end of June 436 beaten highs of custody a 59% increase year-over-year and compared to the 360 off of the first quarter of this year almost 20% increase part of that was Market appreciation during the second quarter, but most relevant. I think we thought we saw the net Domani inflow picking up special in June because of our offer that we did in July end of June beginning of

July will you present that a guidance we had to be very conservative about this guidance considering we when we establish the guidance, we were in the middle of June first half of June and with the lawyers and and in the banks in the Sea Cape as we had an offer we had to be sure we were not going to uh, get numbers below the bottom of the range in terms of Manu Manu. We had a guidance between 10 to 12 billion - 4 Jun we hit more than 14 be the higher compared to even frequent numbers when we go to active client is no difference. We reached at the number of 2.4 million clients at the end of June off 81% increase year-over-year and uh, we also release that we had a press release when we talked about expert or main exams for the year and wage.

because of expert we get

Momentum in in the month that adds for happens. Usually we open more accounts in that specific month. And we said that we expected to deliver down 10% role of opening accounts in July because of expert compared to the monthly average of the first semester of twenty-twenty and that the end of day we actually uh, get results beyond our expectation more than 30% open an account in prison. July reaching the number of 187 South

removing

go to the next one. Yeah keeping the the KP eyes. When we look at the retail Equity daily trades also skyrocketing. You can see that by the wage be three numbers. It's what we call and we explain that a lot during our offering the Roadshow the acquisition process in Brazil. It's happening and you can see that in those dead. So in in the second quarter, we had an average of two point seven million baby trades and 187 per cent increase year over a year in in July Office Space Cats are very, you know, High feeder reaching almost three million our record effort for the month and our MPS is stable in a very high level around the 77 one, which is the highest of these

Going for the financials the total garage Revenue again above the top range. We got our record walk in all the numbers more than two billion has of gravity 2.041.

And mainly driven by retail and institutional business. I'm going to explain a little bit later. But when we look at the breakdown the main shift is that retail and institutional did really well in the second quarter at the expense of issues or Services as we had anticipated because the offers in the market they were harmed by the prices. We had April and May with not very good Market windows for offers, but we saw picking up in June and we now are at full speed for the second semester. I believed digital content despite having its own number in terms of relevance. It's always important to highlight that is our court. We started the company with education. So it's a very important part of our ecosystem.

move forward

speak rate. So ra ta Revenue growth of 69% year-over-year almost 1.5 billion the quarter mainly driven by Appleton features fifteen years and also Financial products that they grades looking at the last 12 months stable at one point four and when we compared to the first place you need to have in mind that it's a function of numerator the revenue of 1.5 in the second water for example, and the denominator and the denominator in the the water was the $366 billion the average of these number in the end number of the first quarter nineteen and because of the the market appreciation, of course, uh, the divorce rate should even go down but we have these high number of Revenue reaching almost 1.5.

Can move forward to the next slide?

Institutional Revenue same thing the market picked up. So the overall Equity trading volume in the market in the second quarter year-over-year Thursday around 9 % if we take out of that equation retail investors, just look at institutional. It should be close to 80% We had a 88% growth year-over-year a very health base of broke as well and use your services are already mention decline compared to second quarter last year of 25% but I am picking up.

Digital content already mention 42% increase forty six million. The relevance is more about the education concept that we have in our platform. In other avenues basically a function of our gross cash that went up because of the IPO and the cash generation and despite interest rates going down the results compare life here over a year presents the 78% growth figure.

And when we go to the last line the net income on Justin how you can come in margin the top of the range that we gave was $520 Million has for the second quarter. We had a 365 medium has of adjusted. Net income that number when I think about 1 year and a half ago may end up 2018 the whole year. We had an adjusted net income of 491 V for a 2018 one year and half later in life water. We have 15% above the entire net income adjusted net income that we have in 2018. This is to show how about financial this business can be it but I would like to highlight that despite all this growth in this short.

It's nothing compared to the opportunity. We have ahead of us before we look for the five banks. We are disrupting in the financial industry and we look at their quarterly. Net income a nice stable position not with these high Provisions because of the prizes. We're talking about more than 20 billion quarterly, maybe even come close to twenty-five million if we change that number and here we are talking about less than one. So that's just to give you a sense of the size of the opportunity that we still have ahead of us and the adjusted net worth.

Very high 29.4% above the top range as well 28% that we had given the market during the offer and that's a function of em, the high growth rates that we just show it number to the operating leverage that our model idea an asset-light business model has phone number three a function of a lower effective tax rate. I know that's a a softball so that investors have asked a lot and we can go into Q&A but I'm going to advance your some part of the explanation basically in terms of the effective tax rate. What we have is several companies. We have Thirty companies in our group each of them with different tax brackets that goes from 0 to 45% the banks 45% The broker-dealer is 40 bath.

have company that 34

Other companies that to any two and all the cash from the IPO that is outside Brazil invested in Brazil it gets in its 50% the tax rate, but the way we recognize this accounting is already discounting these 15% of tax so you for accounting purposes. Do you recognize for example, a 100% Revenue you only recognize a 100. I mean units of Revenue you recognize eighty-five and for the phone no accountability. It represents a tax bracket of 0% So our effective tax rate as a Consolidated basis, it's going to be something between 0 and 45% in the middle. The midpoint would be 22.5 and it will vary from quarter-to-quarter depending on the revenue mix that we have a game.

Of course if we have more residents a text link level it's going to be lower. If we have more Revenue at the bank level. It's going to be it's going to be a higher tax effect in Texas. So it's going to be a mix we are going to see volatility in there. But that's what explains these low effective tax rate. It's

No, we already showed in the video recent developments. We have Lounge. It's in battle mode our credit card, but it's in place. It's here. You can see here. I have mine. I mean using it and we we have the expectation to roll out for clients in the fourth quarter to gather with the bulb digital bank account and and other services that we want to provide with our bank for our investor clients. We also are just adding the first semester the number of deals that our issue or Services area participated in this m c m and read 767 deals, totaling more than six billion in offers in the market and we are very confident that this segment is going to pick up birth.

That we have these open window in the market the fixed-fee. It's we are always thinking how to complement our ecosystem and what we can do we are agnostic again about the decision is the client decision. We are 100-percent client-centric company and we felt that our I say Network needed wage a second option in terms of how the client wants to pay for the service. We have the commission base model and now we introduced for the iPhone not the 60 business model as well. And at the end of the day is going to be the client Choice as it should always be an everything done with transparency for the client Bots.

end International fund

Glatt a form with these low interest rate environment is going really well. We have one in six billion already in our platform new funds as Bridgewater oak tree money - war and much more money more than $45 in our platform and we expect to keep growing that business in our ecosystem as well.

And lastly this is wide. I mean, we already talked about in the video. I'm not going to take longer here only to highlight that expert was something else this year. We as I said, we're caught by surprise regarding describes what to do with expert our 10th edition of our most important animal event. We were expecting to have fifty thousand people in crisis in some Paulo this year and we had to adapt and we did and the result was again Beyond expectation. We got less than 5 million people with high-quality Financial content for free the feedback that we got because of it. It's something else and it it gives off a lot of motivation to create new experience for our our next expert in 2021.

No, I think we go for the last Slide the closing remarks again. You're going to see me talking a lot about it. It's the same the same thing because we are in a long journey. So from quarter-to-quarter, we don't have

Much to have here. It's the return investment business. Despite all the grill still 90% of the Investments are made to 5 Banks wage is a long way to disrupt this business. If you look at the first semester, for example, it's impressive in low interest rate environment the poor person in Brazil life savings accounts hit new record in terms of Total Money. Almost One Premium has any specific months of net inflow off the 202 did have the government bonds same thing. So people will still have these huge gaps in terms of financial knowledge. It's improving. It's changing but it's a long journey.

That leads to the acquisition process Brazil the number of individuals in Victory. It's going up in a very high rate we have now more than 2.8 meeting already. It's growing but it's still a very underpayment traded market. So we believe it again. It's going to be a separate Trend. They're low penetration a percentage of the population the corporate banking. It's another markets that we have an optimist deal about it we want to do with people is not greater disruption in this market that we have done in the retail business. As you know, we have higher debit anger the CEO of dead former CEO of JPMorgan Brazil and that anger is going to leave all this effort across the company and we believe that we suck.

For network with the bank with the products that we can offer.

We have everything to disrupt these high concentrated Market as well. Same thing with the patient industry. Our insurance companies won't really well in terms of growth but it's it's nothing compared to the one trillion total addressable Market only open tension industry in Brazil. So a lot to do to transform the financial in Brazil our strong purpose. We believe that you have a strong purpose. If something else that give us the motivation and not only us but all the ecosystem that we can impact to keep doing the right thing. No shortcuts, but a long journey, I have to transform the financial market and improve people's lives in Brazil always having our core values with us. So often that I am the second quarter presentation and let's go for the Q&A. I'm sure you you have probably a lot of questions to do.

Thank you Bruno. So let's start the Q&A session once again for you to send the questions, please use the zoom to G&A that is in the screen. We already have some questions here Bruno. I'm going to I'm going to start with an l e. Can you dig a little further in the restructuring? You mentioned to leave the service effective tax rate. Is this sustainable going forward?

Okay, what time do they structure is what I explained? We we have cash in different companies in our group. We have three companies as I mentioned offshore and onshore, and because of the proceeds of the primary of the IPO and December last year, we kept most of these cash at least level jobs and and extinct has that effect. It's a 15% tax rate that in terms of the accountability. It says if zero because the revenue recognition is not part of Texas already and that brings the effective tax rate down if it's sustainable going forward. Yeah. It is sustainable. I wouldn't have the first semester of this year. Our effective tax rate was close to 17% in the group.

If we take the midpoint of 0 and 45 that I mentioned before we are talking about an effective tax rate of $22 and 5% off. So I would say that our tax rate should be between 20 to 25% But again, there is no activity there. It can be lower. It can be higher. It will be paid off the market condition the mix of Revenue where the revenue is in our companies in the group.

Again in the same subject, but he also I mean it's running well below the historical levels the the tax rates, currently. The net margin is above 29% so much much above also need to long-term guidance of eighteen to twenty-two percent. Are you planning to revise in Europe?

Yeah, you're correct. And we want to we want to think about it after one year at least because this guidance that we gave is not animal we decided not to give animal guidance is more a long-term guidance me to long-term guidance and by that we mean three to five years right and we we haven't had one. Yep. Yes. So we think it's the right thing to do is let's wait for 1 year and and then think if we should revise the guns, but you're correct. The actual margin adjusted net margin is much higher than what we gave as

I need to long-term guidance basically because of of these effects of the primary proceeds of the IPO, uh in uh, the X being level bring these lower effective tax rate that was not taken into account at the time of the guys.

So we should revise but after one year, that's what I'm trying to from 3 to what extent was the jump in the red Newt was people impacted by dehydrating during the quarter give the the volatility and what would be the revenues adjusting for this event? And also, it's trending now the third quarter when we don't see any more volatility as we we saw priorly and once when I one more which is the what is the outlook for two thousand wage one, I guess is Also regarding revenues.

Okay. Yeah, the the revenue the volatility happened. Basically, I mean in March, right March was when we had the circuit breaker and everything else then the volatility start to accommodate and we we keep seeing uh high volume trading despite the volatility, uh reducing over over over time when we look forward. It's hard to tell I mean, we we don't have too much volatility right now and we pray that the numbers of Bailey average trade that 2.9 Million in in July our record monthly record ever in our history. So I think there is much more to do with the acquisition process in Brazil been volatility itself. So the revenue vs. You are correct was impacted by that by the voluntarily military, but mostly by dead

These Acquisitions that we have in Brazil and we don't see that reducing the base going forward especially in environment with 2% off straight in Brazil and uh very under penetrated Market when we think about the stock market as well. I don't know if I missed any other points of wage for the future for the near future 2021 and so on in terms of the take rates. Yes. Yes and just putting together here matters be a question. And also if we have any ability to change things are about 1.4% when Market rates are around 2%

Okay.

Okay, the trim Revenue you the take rate I am always conservative when I talk about it because for real there is volatility bad depending on where the issue is when we have more effort. He's in in Futures and and even fixed income or financial products as we have had so far in this year that that tends to be a higher take rate at the end of the day, but it's also a function of other products that we keep adding. Let me give you one example credit. We are in bed a test. But when we have the revenue of credit card by adding new products that goes to retail because the clients that are using these products and and and providing these revenues a retail clients, right? And there is no AC attached to that Revenue. So it's going to be a revenue on top of the existing AC off.

When you think about that only by this Mass Revenue huge?

To go up that's a confusion that a lot of people make when we think about the one point four people think about, uh, like a fee pay by phone not retail fine. That's not it that's not it's not even brokerage ma'am just to give you another number if we only look for a brokerage in that Revenue yield it took less than 30 basis-point. Okay. So if for example, we got this question from International investors about the trend of brokerage fees going to zero in the United States if that happened for example in this one point four already knew you would go down to one point one or even a little bit higher than that. If that brings another way of Revenue that is not in this map that I just explained. So at the end of the day the trend of the revenue yield it will depend on a function of how our dog

She grows because we can we can have as we had in the first quarter part of the AC left our base, but it was an AC without a choice thing or the correspondent Revenue because it was basically linked to Apple. Did you see market and not relevant for the revenue of the retail that by itself should increase the revenue as we have a new freeze the fashion industry that has a lower Revenue used as a product but it's a very good product that we are accepting on the accelerator to grow then that increases as a mix that should bring down the revenue here. So it's money factors that impact the revenue used at the end of the day the way we like to think about our business model that it doesn't matter what the product is dead.

But if we offer all the products, they are suitable for the client and they are the right product for the client to achieve his or her goals in the long-term effects. What's the most important thing for us? So the revenue will keep growing.

I have little doubt about it because of the total addressable Market because of our business model. But if the revenue is going down or up compared to this one point four months, it's hard to to say

From Christian Blue from autonomous research what drove the 300% year-over-year growth in the net income from financial instruments wage. That's financial instruments in there. We have several different instruments the mean relevance a lot of for example, the equity Market derivatives that retail clients want to project their their positions or or trading derivatives and also the stretcher notes known as koi in Brazil certificate operation instructor notes that it's a new product. We already have these products but this year it's a new product because of the bank. So as we have the bank we are able to issue those structure notes before that. We relied on partners and other banks that also issue and keep also selling structure notes from birth.

other banks in our platform

Because we are disinvestment ecosystem. So it's open for whoever wants to to to make a good use of it providing good products for our home appliance. But because of our bank we were able also to grow and and and we expect that line to keep growing a lot going forward because that's just a new product that we didn't have before. Also for institutional clients. It's the same thing because of the bank we can we can provide derivative products for institutional clients independent asset managers, for example, or corporate clients that went to make use of our secondary markets and our ability to because of the soul that we have to to provide life gives good prices for those clients to have their positions and and and match that with our retail client base as well.

Okay, some questions about competition is and also from Teisha boil. So basically the question is wrong.

How can you please share some ports on the competitive threats to your retail business from other platforms? What do you think? It's their strategy and going aggressively against the odds are not working what to expect in terms of departure as well.

Okay. Yeah, I know. I know this this topic has been a Hot Topic in the moment. The competition in the is a business. So I will I will take the opportunity to earn a question to see if you allow me to step back a little bit and explain the framework of the is a business in Brazil. And then I will I will provide what I believe to be the consequence of these competition tens find going forward because as we have said competition is going to intensify box and natural thing considering our leader position and all the the the success that he has had. It's it's a natural thing and uh, we believe I'm going to keep like that going for it. So number one, I would like to share with you some points as you know, experienced it started as a nice eight.

And has worked hard to develop this profession in Brazil. So the fact that other platforms want to mimic what she has been doing for years down the road in our view is a recognition that our model is in the right direction that number one number two, when we think about the potential of this profession is a profession going forward in Brazil taking into consideration. How many bank managers reduced to has the ongoing rejection of branched already announced by the banks in this low-interest-rate environment. It seems to us that the growth of the is a profession is far off from GM.

No.

3

when we look at the numbers of new I say it's coming to the market. I don't know if you follow those numbers, but

it's a clear recognition that the ifs or the new efface recognize XB as the best brand and platform to allow a 960 in this new Endeavor. And why am I saying that because for example in the last 12 months more than 80% of New Jersey have chosen to go to XP platform. Those are new I say it's coming to the market. We presented the number we are talking about more than 150 new is a Thursday. It's close to $200 per month coming to the markets a new profession that is still underpenetrated in Brazil. And I believe it's going to grow a lot wage those new. I have faith that come to the market.

Why do they choose what do you mean 80% the actual number in the last 12 months is 84% Why do they choose to go to x t and not other platforms off?

And again at the end of the day considering that we developed this this profession. We were down the road by ourselves for many many years. We have the ecosystem of the is a month. We have a company inside our company just to deliver the best service for those I say them to help them to succeed in their profession.

In considering the number of new is a choosing x p as their final destination for the long term as they decide to become an interpreter. It's a natural thing with other platforms that are not able to attract those new. I say that they want to come to our platform and try to convince some of our I have faced to my grades to their platform. Yes, some essays might believe our platform as they have in the past and it will happen in the future as well. But again, it's nothing nothing relevant to change or growth at it has not been because those other platforms they've been attacking our is a network. It's not a new thing. They've been there for more than two years attack.

Remember again how under-penetrated in the payments platform business in Brazil is with 90% of the investment inside five big commercial Banks. Thursday is

so even even for those I things that decide to leave or platform.

Their sixes it's not obvious at all. If the decision to leave is not easy one and I will give you four main reasons because it's not an easy decision. If you are a nice a link to our preference number one because you don't know. I mean, you know that you will not take all the clients in the custody from our platform Thursday. We have a price reviews that you know with this historical numbers above.

number two

Usually this kind of negotiation of our competitors happened on controlling level of the office. It's not controlling Office of the US they want to take the office off. But this office has several essays that some of them decide not to leave with the controlling group of the office migrating to either existing I say offices that we have or create a new is a office and keep their attachment with x d player.

Number three this this migration is very cumbersome process because it can take time you're talking about different systems depending on the fact that the client has is not easy to transfer some assets. It's easier on your there is tax effect for the client negative. The client doesn't want to do it the app and the experience with the point is used it to is already ours. So you can lose at the end of the day on is a perspective. You can lose momentum if you decide to migrate

and number four

Yes, they know that his or her growth potential is much higher speed that that is exactly what has brought them. Here. Is this partnership between extra MB? I say that is showing this value that competitors are trying to mimic and and and to convert the IFA to leave. So in summary, when can I say besides to leave our platform as much more an individual decision of the is a than a decision to migrate to a platform that is going to be better for the client or that will help USA to accelerate the growth. That's not the case.

No, in terms of impact from these higher completion going forward. We we see basically two main developments in a practical way to think about our numbers going forward number once a margin compression that we should expect a margin compression. We are not going to stand still so long you can expect a higher investment from our part in the IFA Network that will fall. Okay, and we are doing already we are exposed for a living area some options, but what we can tell you in terms of our preliminary assumptions that we expect some margin compression of to home base points Heroes margin and one hundred basis points in adjusted net Market again, that's in the short term that will leave to birth.

margins in the long term and number two is that

Mine making these Investments that we are doing especially in a moment. Like the one we are leaving low interest rates environment. We are going to have at the end of the day. I have been that's worth much more helpful. I it's like we are decentralized the cash all over Brazil spread over over Brazil and remember with ninety percent of investments in those five games. So when I give you this margin compression number, I'm not taking into consideration the potential

Acceleration of the base of nephew money in both of those days because of this capitalization that is going on right now. So at the end of the day, I think we might even have a positive matter of fact depending on how this decentralization of the cash at the hand of the is a office spread all over the impacts the growth going forward.

Okay.

From another question here. Can you please help me think about the revenue potential and timing for the new product pipeline Landing cards digital banking service distribution and so on Thursday. Yeah, we we don't have a number yet to to give to the market in that sense.

I said we those are brand new business. You're going to see most of those businesses. In fact in the retail Revenue line, but we also have institutional institutional clients as I mentioned with the bank and financial products. It's another Revenue line that is it impacting institutional Revenue line, but we see a lot of potential because for example, I mentioned some okay, if you look at our our limit and has got off our structure notes as leverage for marginal own business that we don't have in Brazil in in scale. It's a brand new business in scale. We are we're a small at the end of this the second quarter. We had something close to $400 billion in our balance sheets. Basically not there is a log

Potential grow there as well and the credit card is just the starting we are going to open for the public and the 4th water and it's going to discover. So no question is going dead tribute in our Revenue, but we don't have a figure to share with you right now in terms of how much it will impact the reference going forward, Medina to do and also aliberto's repeat the same question about can you please share was about the net inflow the near future and also if the $14 off it is sustainable.

The future we're talking about the future. We have July, right? So it's only one moment what I can what I can share with you that July we get home health face as as in June and we believe that the worst because of the crisis is behind of us. It's the six point nine billion that we presented April has nothing it's behind of us. So we are seeing help phase of growth coming back. The is a network was the the part that was most affected by the crisis because we also did not have the tests the certification for new Ice Age cometh market and and the restrictions of the lockdown impacted more the I stayed in the XP direct Channel, but now it's resuming things are getting back to New Jersey.

And we believe that we're going to keep a health-based going for it.

Four second-half 2020 as Easter services resume activity in that boosters distribution revenues. It's fair to expect Revenue yield expansion.

Oh that perspective by itself it is but it will depend because we memory is always a function of

the denominator in the narrator. So you're talking about the numerator but it depends it's the denominator grows with that is not dead around you right up front. You see that is not yeah bring in Revenue right up front. Then the impact should reduce a little bit. So it just depends if you say that. Okay. I'm going to be very conservative in your AC projection going forward. I'll say I should expect the revenue. Do not you say I'm going to be really aggressive about your life. Is she going forward? Maybe the red meat to go now? So a little bit it's a function of numerator and denominator.

One thing that I'm I get in common, but I think it's important to my life before we we kept hiring new people into our our company, but of course because of the the coffee crisis even the challenge of awarding we reduced a little bit the base and now with everything that we saw in regarding to describe as we didn't know how it would work for Oreck Steam and the with the benefits of what happened and how our our people engaged to make the impossible possible during this pandemic.

We we are confident about the future and what we can deliver and opportunities ahead of us. So we decided to resume at full speed our projects and and and hiring people so we might see sg&a going up a little bit in the short term. But again, it's it's something that will pay off really soon as long as we keep adding you read new lines and new businesses in our equity.

Another one else. So from here, what is the trend in terms of commission expenses that you can share with us?

Commissions commission's are already very very high. They there is the trending commissions expenses is basically a function of which products is it's a mixture of products more than anything else. So I don't see you're going to see because of the investment that we are doing the is a network you're going to see that life combine the commission incentives everything together growing over time. And and that's where the margin compression comes from. That's what I talked about two hundred thousand points that we roughly estimate yet to be seen taking only these effects of Investments. We're we're making in the IFA Network as a whole month, but I wouldn't say that it's a pressure for specific conditions there because they are already very very very high, you know, and and and people that if you want to pay off

100% of commission like this everything for the same state with nothing you can do that. But at the end of the day, I mean it's not going to be problems there. You know, I don't know. I cannot see any numbers from any competitor showing the health of their is a business hours is is help. It's a partnership a long-term partnership with our ICS because again, they are introducing we are here to to make history to really make a history in a strong purpose. That's a huge difference when we look at other factors in the market. We are here to really transform the financial Market, you know doing the right position for the client side by side when we announce this fixed fee for our I see network. The feedback was impressed all word. Looks like you know, thanking Thanking us for that initiative wage.

That they would have both options to to share with the client and and I believe that the commission base is going to be by far the largest one because at the end of the day depending on on one investment, the club has the fixed fee is more expensive than the commission-based. So if you have a commission, they with transparency and with suitability and do the right thing for the club the long term, it's the best model. I have no question about it. But again, it's going to be a decision of the client and the I see network. They looked at it and said great news. We are with you. Let's go for it so long. It's a long-term partnership.

Do you have any estimated impacts in experience numbers considering the future Lounge of the XP Bank?

No, as I said, we we are not giving specific numbers because of the bank but the bank is it's another to that we have in our system that allow us to provide products that before the bank we could not so the credit card is one of them the structure notes issued by Baauer Bank decline. It's another one of them the derivatives with institutional clients and corporate clients its counterpart. It's a lot of them. So there are several products their money that we have had revenue from those products that we didn't have before the bank existing.

No question here where we will be where you'll be in 2025 how big are projects for XP for the next five years. And what is the company's market share Target know we don't have a market share targets. It's hard to say where we are going to be 20-25 because when you make that question, I like to go back to a 2015 and make that same question. And and I remember I am I am here since 2012 and in 2015. I remember, you know, thinking about the long-term and probably uh, despite the the the the dream big part of our culture and in fact, probably I wouldn't say we would be where we are right now again, I think that when we think when we talk about the long term

We can do anything. It's it's the second value that we have make the impossible possible drink be there is nothing possible and off the most important thing is for us to keep our culture to keep our DNA intact, you know to be really not not only hard worker wage. But to have this Obsession about doing the right thing for the client during the best thing if we look at competitor doing a better thing than us. We we have we met we are not ashamed of say, okay, you're right. We were wrong. Let's do it or you have a better thing. Let's let's match we are we are about the client in the long run and how long has built this unique ecosystem very still.

We are very very small part of the whole financial industry in Brazil that is highly concentrated in those five nights. So when I think about it, but I would say that in 2025 and I don't know. I don't know. I don't want to give here a guy's but we can do much more. What I would tell you is the following we can do in the next five years, which more than we have done the last twenty years. That's what I do.

Well, thank you. Thank you all for joining us in this conference. Call our investor relations continue to be completely available for you to discuss any matter of the month for the results in any other subject that you wanted to raise with us. Thank you, and have a good night. Thank you very much.

In the next call, bye-bye.

I'll tell album.