Q3 2023 Banco Bradesco SA Earnings Call

Susan.

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Yeah.

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Well I've only got orders here.

These filings are not meaningful.

Finally to.

For this quarter.

Yeah.

It's a pleasure to have your wellbore.

And then there's a buyback.

Presenters.

At Amazon.

We're going to start the Q&A session.

If you want to.

And someday.

Okay.

Monica by that India trends and sort of I guess it is.

No.

Good presentation.

Great.

It's finished.

Audio preference directly.

We also remind you that EBIT.

The materials are available for download.

Our dog.

Strength was painful.

Mike.

I mean, it's early into Q1.

Related.

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Goodbye everybody.

So now with a.

Video.

No.

Oh, Hey.

<unk> with the highlights.

Number it sounds like there is so much smaller.

We're talking about North America.

So the aim is not only.

Mainly the decrease.

Dave.

We will talk about it but I just.

Net income result, like the mass.

Hello.

Okay.

Also with us operating with some drilling.

George.

11, which represents.

The level.

At present themselves as you can see it with them.

We have made progress.

This is up here's people do have spillover related to China.

Right.

So at least for me.

The one percentage point.

I appreciate that.

Thank you.

Oh creation within a certain deal.

That's really helpful. In most places.

Yes.

Provision expense is you got to do that one.

As you move into 2019.

Indicating.

Please go ahead.

It looks like corporate.

Yes.

Sure.

Uh huh.

Denominator.

The finishing business most of them.

As Ive indicated all of them.

Great.

Okay.

Okay.

In Asia, I mean, they call it.

The most recent.

So recently you know one of them.

Yes.

Print continues to show the level of former altogether.

Yes.

Solution to the banks.

It looks like it's following booking public safety, Brad distributions by the brands.

Okay.

Thanks, a lot weaker systemically important.

Okay.

How did you pick the Uveal melanoma.

And the other one.

So that's more of a fixed rate.

He is working on 24.

Can you just talk about what kind of change.

But again a bit.

Yes.

In combination with projected images.

No.

Gotcha.

Thank you.

It's always been an issue at even a position.

Analytics Kumar J D.

But at this point.

Companies pretty much all I assume lease portfolio. We also have actually that was my next.

We have more than three.

Data center.

Under this model.

Joe What's your projection.

It is.

They've got some minutes ago.

And all that's the organization to dislodge.

Okay.

We are going to have.

Right.

If you can join us.

Thanks, Mike.

Vacations and avoid a specialized two lawsuits.

So we're talking about guidance.

Those levels.

Yes.

Well you know what a typical.

With family.

For example.

Financials for example, where it's Glenn.

Our individual like how many times a month.

And what was it.

Good day.

It is worth the additional intelligence his opinion here.

Capable of giving your perfection.

It continues to evolve.

Logan, making them easier with Bradesco.

Already in the media.

In addition to all the products and services are already running it is now doing things.

Using what's that been working to prevent fraud in case of suspicious transaction messages.

It was done.

We are doing in digital gives us certainty about the possible following with that with claims, allowing greater autonomy, the better areas and for us much more business.

Awesome.

Okay.

He also sits on the.

Both solutions in this portion of the business.

Okay.

<unk> services.

Services in general.

Inventing and improving the way, we connect to our clients by launching a global solutions.

When he is.

Mr Mice multichannel my point.

Our client journeys showing tangible dish.

And in wholesale banking.

Yes.

Yeah.

Since the banking struggling global solution is Monday train of client needs.

We can always.

But he has the best solutions for financial management suggests like a cash management people will pay you for all of its current format.

Can you show us what a multilingual multi tenant and multi.

Right.

We closed the mine.

Oh boy.

Company.

And with the advantage of visualization across multiple companies.

You know what.

And congrats on the slide we show some numbers in detail.

She was appointed our strategy something we have discussed a lot with you he also Poland and Russia.

<unk> increased our.

Sure.

Explaining principality in the customer relationship.

Brian we have more than 4000 clients client relationship professionals and more of them.

In fact, this is one piece of that.

Sure.

Constantly.

On delivering a differentiated experience with them.

I'm around all of brokerage house, he hasn't historically 81 billion in assets under custody ended around one client.

In order to further he has assembled.

Neighborhood advantages, we are now charging or.

We are not charging any brokerage fee per trade was made sure I guess I don't know.

The other area participate absentia footprint.

Hmm.

With over 700 billion.

Assets under management, who oppose it doesn't net fundings for the year.

For me the industry trends.

Hum at Mandalay.

Recognition.

In the financial industry I want to highlight.

So one of the highlights.

Owned funds, which in addition to good returns plus the material growth.

More than 220 billion in the message.

We cannot forget that niche.

Did you focused on alternative funds.

Currently it hasn't been 34 billion in assets under management at the bank.

With you over.

These initiatives and our high income politically both in Brazil, and those sorts of things.

Our Huntington is.

A good example of it is just all of them.

Yeah.

National Digital account every loan in July two enjoyed convenience claims has already reached more than 100000.

Bank.

The other hand, the private bank operation also continues to expand.

5% increase in client asset and liability as we've I think the evolution.

On our real estate loan covenants.

But just the bank's operation is also transforming digital journey.

Agility autonomy and convenience clients globally.

Global private banking.

Includes our operations in Miami.

Man, Oh customer satisfaction NPS that's out there.

Yeah.

So what I mentioned.

There's no one that highlight our team's quality indication, but this is the fourth consecutive year. We have been named the Brazil's best wealth management, that's why it is.

Paula.

Also a lot of it.

Oh, the karnes area.

I should highlight two new novelties in the kind of language for some time now.

Okay and partnerships that create value in cintra, let if our clients.

Yeah, I mean, we have recently announced an exclusive partnership with Amazon and.

We like the Amazon effect.

Amazon cards issuers yourself that this partnership has already put us at excellent numbers.

A month and it is part of our strategy of associating with companies and brands of appraised value for client.

We have a complete portfolio.

The only one that covers all each of them.

But we also have just launched.

Laurie I'm, there and connect.

American Express who's waiting.

The best benefits and value of card and can deliver for the most demanding clients.

Yes.

It's all about precision.

And in the high income segment.

I want to be yet.

Individuals revenues.

That's a good thing.

Oh, it two digit growth in India.

Another important point just to think about our group business.

London.

Hi.

We are a leading bank in that area we can.

We evolved.

To deliver steady increments.

Last quarter I shared with you with the launch of our E I grow.

This quarter I'll highlight our $19 5 billion volume.

Which was 100% up compared to the peak.

Gotcha, Okay, great business.

1000 points.

If it's at a trough in Brazil. In addition to <unk> equity business I finally, I really can't think of another.

He has more than hundred, especially.

Our clients with consultants and advisors.

It's important.

For the bank in Brazil.

We'll continue to strengthen our structures and offers one of them was the dialogue as well.

Well.

Here are the details.

Quite topic, let.

And I think in London.

Yeah.

Another one 3%, reaching one 6 billion barrels for the quarter on the annual comparison, we had an 11% decrease.

Our credit provision expenses, all one 1 billion in delinquency ratios have already shown unimpressive bank clients and a young even for the quarter was lower.

Sure.

Maybe he loved our margins on the other hand market and now you're right.

Continued to show the evolution because it wasn't ready to positive in this quarter and we will continue to improve and be positive in the fourth.

Oh, you're talking 2025 of our data.

Insurance group continues to post excellent choice.

And we'll be ending the year with revenues.

Greater than 100 billion BRL and over 23%.

We show more details in the next slides I don't know what other countries, let's talk about our loan portfolio and corporate clients.

It was a one 8% mainly driven by large corporate debt.

It was up by three point to a person and SME segment posted a 1.1 contraction, but we are still very restricted for Friday origination to small companies.

Even the economic situation in this segment, which is experiencing higher delinquency ratios. We are set to increase origination in the segment in the fourth quarter, we are already increasing it and due to the credit policy adjustment our individuals' portfolio.

We're down by.

1%, even though credit origination wasn't growing in the third quarter when compared to previous quarters, and we will continue to increase credit origination in the fourth quarter.

Interest rates before we hit the man for LOE is improving and the lower rated segments such as.

Vehicles payroll deductible loans and real estate as well the daily average of total landing in this quarter was 14% higher.

Then the previous.

Border mean, 26% higher in individuals and 11% higher and corn prejudice.

Even considering that we grew during the quarter and we have not yet recovered in our portfolio, but at the same pace. It is a fact that lower origination and Laura lakes.

Or it's just squeezing the client NII. They believe that we will get to normalized origination levels throughout this quarter and throughout the year of 'twenty 'twenty four and at this time.

We are operating below the guidance range.

Oh, our reviews and reevaluation of credit models and policy is absolutely important to resolve the new credit vintages.

You bet.

That's it for me.

2% better.

Then the 2020, one vintages and we continue to monitor these delinquency ratios in the short right.

The volumes, the new vintages already accounted for 57% of the.

Individuals' portfolio in the retail banking segment.

For the quarter is a.

A L. L was 9.2 billion credit provision expense was $10, 9% lower than the previous quarters. This has lowered the cost of risk to four 2%.

This guidance range is it goes from $36 five to $39 5 billion barrels at this time, we are expecting to end the year close to the top as we indicated previously the spicy improvements to operating with a high level of cost of risk. Because this is a long tailed problem. The total credit provision balance basically.

Stable and quite robust.

At 59 billion bureaus.

494% of the loan portfolio, our coverage ratio for over 90 days fell to 155%. However, excluding a 100% provisioned lowered this ratio remained flat at 239 picks up as we have been saying, we see the reduction in the level of.

Coverage at something natural.

And the credit cycle and that in a moment when credit origination we still though our causes.

Cause that coverage ratio is certainly starting to improve with lower NPL and increased credit origination date speaking about NPL creation.

It was the highlight of the quarter there was improvement across all segments. If you reached 10 1 billion, which was a significant drop when compared to the previous quarter.

In terms of individuals' totaled $6 5 billion and good companies accounted for $3 5 billion of NPL creation is set to continue to improve over the next call. Please.

Use of our 90 days delinquency ratio was down by 10 basis points with the same level of improvement for individuals and large corporate and.

In the SME segment there was.

We're seeing in the ratio, but less than in recent quarters. Despite an unfavorable denominator effect due to the declining in the portfolio, we believe that SME delinquency.

At least stabilize in the fourth quarter as is.

The vintages have been posting much better performance that was short term delinquency you can see that there was an improvement across all segments.

30 basis points and total delinquencies were 20 basis points of individuals' 40, and that's amazing and 80 basis points in large corporates. This performance should continue to benefit longer delinquency in the coming quarters that's for sure.

Correct.

Total NII for this quarter stood at $15 9 billion market NII has turned positive showing an improvement of 1.3 billion barrels in compared to the same period of the previous year and it will continue to evolve during the fourth quarter and also throughout 2021 most of the client NII fell by $9.

Six in the annual comparison, reflecting lower volume of those eight six percentage points decrease in average spreads which stood at nine 1% due to that makes us lower spread and therefore at lower risk. We are below our total NII guidance range.

Great.

Commission income poses a challenge for selecting regulatory aspects into competition with new entrants that did you have regulatory cemeteries.

As the capital market reopened we posted excellent underwriting performance.

More than 100% in terms of asset management. The changes that we have made to our strategy are already beginning to produce some factors. We encourage you need them, but the trend is to continue to improve due to the expansion of new products in the high income segment.

Relation to guidance, we posted heading towards many of them got closer to the range. We had previously indicated we're off to a nice with total operating expenses were up eight 1% in the annual comparison, however, it personnel and admin expenses together grew by just two 6% the largest contribution to higher total.

Expenses came from other operating expenses line due to the low comparison base in 2022 in the fourth quarter. Other expenses comparison base will be normalized does reducing the total expenses lines annual growth.

The collectives.

Bargaining agreement of $4 58 per cent came into effect as of September so it impacted our personnel expenses and the final part of the quarter compared to the third quarter of 'twenty. Two that's fine showed a fall on 0.2% admin expenses in the same period.

Only grew one 4% as a result of our efficiency initiatives, we are promoting a far reaching review of our service model with a focus on reducing the cost to serve this involves adjusting our physical presence, which will continue in the coming quarters.

It has the strategy produced good digital as one of its main libraries figured I believe.

Income from insurance for the quarter was $4 6 billion barrels ear to date.

Is 25, 6% at the top of the Guy didn't match the quarters net income.

That is two point affordability billions, each one showing almost 24% of our row premiums continue growing reaching 28.2 billion barrels in the quarter and 79 billion an eight year to date numbers that period's results also benefited from improved operating efficiencies and acquisition cost.

In addition to financial income now turning to capital we posted a 55.

The increase in our tier one based on a ratio, reaching 13, 4% and 50 beds and total basis.

Wages achieved 16%, we continue to make food provisioning of interest on shareholders' equity of which has now reached $8 6 billion for the year, our liquidity position remains quite comfortable with LG are closing at 183%.

This is the end of the presentation. Thank you so much and once again, thank you for joining us and now I.

Well, joining because he I know Andrew Ritchie for our Q&A session citizen.

Yeah.

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Yeah.

Well I saw what can divulge Hello, I am back now.

Joining me is with Avianca.

We also have the CEO of the insurance company, we have initiated now the Q&A session questions can be asking either Portuguese or English answers, there will always be in Portugal, and theirs and you can also resort to the simultaneous translation feature.

Finding the black for our first question is from announced the Maloney from Autonomous you May proceed Sir.

Good morning.

It's nice to see you again and thank you for taking my questions you.

You had a very important derisking of the important issue.

Florida, I would just like to understand whether there's already places the bank in a position where you can resume growth as soon as the market improves and what does that mean in terms of client NII for next year and for the coming quarter. Thank you Hello hang onto a good morning, and good morning, everyone. It's a pleasure to be with you. Thank you for your question Yeah. We're now.

You are right you, we had to make some adjustments to our loan portfolio due to the delinquency levels, though we noticed especially coming from you know small and micro sized companies, but looking at the numbers.

We.

You may be sure that we already reached the peak of delinquency and from now on we will continue to grow I mean, we never cease to operate we continue to operate normally but the fact is that we were trying to work with safer portfolios with lower delinquency levels and we are now looking at the growth of more than.

Loans and payroll loans and rural loans.

The more riskier portfolio something had to be put on hold for a while and mainly also transactions involving small and micro sized company, but we've already experienced some growth, which you can notice from the presentation. There was an important origination growth both in terms of individuals and also pumping.

Yeah.

Therefore from now on I mean gross has been resumed is returning to normal all those throughout the fourth quarter. I think this should continue and the same thing goes for the year of 'twenty 'twenty four is oh, so natural that as there hasn't been any strong growth in the loan portfolio that it was a very modest growth of our loan portfolio.

And this is something that happened maybe across the board.

Amongst all financial organization, so client NII is a bit.

And it takes them.

Longer time to resume to that margin I mean based on the older. The operations that we were generation, but as I was saying we didn't stop to operate we are still operating with custom clients with a better score with a better risk profile and this gives us a certain.

You know comfort in terms of the results, but it will pick up with that and in addition to that there are also some other growth levers in terms of client NII and it's important to mention the underwriting performance that we had this third quarter that has been performing well it grew almost twice as much.

Therefore, the work we've been doing at Bradesco asset is already showing some significant results with more than 770 billion of assets under management.

And this is also posting positive results to our tour company. In addition to Bradesco financier mantle consortia and the insurance company, which remains an important lever and it is certainly contributing to the results of the bank all of these different levers as we move them they.

They are here too.

Improve our final results. In addition to all of our work in terms of cost control there for it.

Spectation going forward is to see the growth of this portfolio. Thank you.

Got it.

Okay.

Yes.

Oh, that's not possible alright next question.

Just from a variety of D. A.

Bank of America. Good point Emad you May proceed.

It's small.

Good day.

The opportunities going forward.

I'd like to focus.

On the guys from volume guidance.

If I do the guidance in August.

Mhm guidance.

And it was below the guidance and a separate one particularly.

And fees.

The growth in revenue you can open the line to understand why is it that you're below the guidance.

Particularly regarding credit you won't be sick. So we keep this program on them.

Why did you have the perception that the problems are greater than what you thought it all goes to and you'll have to make them more of a medical jumped into.

And whether you're going to maintain your guidance for the rest of it.

Yeah.

Thank you and good morning.

Hum.

Items, we are below.

And we are in the low rent just the kinds of frontier so locally to make.

Right.

Grunting, particularly for small and midsized enterprises.

Because like I said these are the loans that give us the best margins, but that's right and you can add.

On the surface sounds it suffers so that became a little tighter guidance wasn't for us.

But we have an expectation wholesale given the growing as the whole loans.

Unfortunately, the evolution of credit.

Thanks Angela.

Alright.

One is to really.

We should target.

Okay.

The lower range of the guidance, but we are working on it well.

Well.

I think if we can talk about this.

Oh, it does to the market and are your highest margin.

And this wasn't so its whatever.

Okay.

Under the bridge and this will be solved in 2020, we still have a large delinquency and Smes and also for individuals.

But are those where it has to make some necessary adjustments for that.

And when we make these adjustments we've made to be though below grade and we have to slow down we continue to operate them at all.

But with companies with a better risk rating embedded guarantees but.

We kind of hold you back those operations that have no guarantee.

Offer.

Oh gosh.

A credit and I hate to just better.

That's all he's going but we do need to maintain the loan book at a normal acceleration Q4 should show a credit acceleration in all lines full electric orbit individuals or even Smes at all and I missed this April.

It was necessary he was responsible on our part to make that adjustment tomorrow, so that we could control delinquency.

This is a little bit.

And the 90 day delinquency, we compete a reduction when we look at shorter delinquency. We can also see a reduction.

One.

Significant reduction English, what they're dealing with.

In all lines.

And it's probably doesn't play somebody's people devices. This.

Short term delinquency will become an over 90 day past due delinquencies.

Expectation is that this will improve.

Will improve all of the interest rate spread that is the way that we try to do them.

Two days ago, we ended the month of October.

The weekends E F E M.

Quincy choosing.

Are you seeing it.

We posted a lower delinquency.

In Q3, so our expectation is to continue to work hard too.

Chief at least the lower raw.

Range of the guidance as well.

What have you if I may I'd like to add a lot of Johan Sverdrup.

That's what happened.

Something important.

Yeah, Oh, yeah.

Yes insurance expenses guidance.

A L a L L O guidance.

Like I said, we do have a challenge and that's what I can make sure. It is important for them.

Crowded and you'll find.

The NII as a whole and you mentioned about this transition would be.

I just wanted to kind of.

M D N O for the first half we had a better expectation for Smes.

But that's equivalent came in October.

Well, it's like a mace event for hips and knees.

Paul Marciano.

They get more items in our balance sheet, such as insurance revenues East etcetera.

Perhaps.

One more.

In Q3 compared to the Guy that's true.

But other lines overall.

Going forward.

Almost all of them.

Got it.

And this is what we are pursuing and she was trying twenty-twenty phone lines.

All lines to increase the trade at NII.

And I I'm not voting.

And this news.

No we have to remember that we are striking with as well.

But our growth will be according to expectations in 2025. This is mohit.

Thank you and finally, a follow up question.

You would be able to with the changes in the total.

Oh, yeah, and you'll have to give you a confidence to okay alright.

Uh huh.

Okay.

Do you think there was.

The.

Delinquency.

Higher the next rate case.

I want to point internal changes that you promoted that.

It must be.

To contained the problems.

Well my view is there.

We are thankful that footprint all over Brazil.

We are present in all the states and municipalities that Brazil, actually and there are different situations in different municipalities.

In each one of these different cities, where we have claims.

I'm only impacted by a higher interest rate is actually the whole country is impacted by a higher interest rate others right.

Bypass local issues.

So there's no change.

Changes made with no.

Very good.

And I'm, referring here to the mathematical model, where we.

Having some fine tuning, but we had changes in our credit policy in terms of the appetite to lead you to operate.

Three are possible.

It was not operating with this client operating with this client only if they can provide their game.

So there are number of variables I cannot really list them all here.

We basically had them adequately.

Yeah.

Tied to the geographically speaking.

According to the sector. So that we can we can have a great actress in defining the modems.

You mentioned, one variable or another.

We've kept the model now is very much directly to pricing.

Eric Toews geolocation.

No.

Can be more.

Correct.

In addition, we brought in any of your operation.

Oh and attachment.

Attachment b to curve, we brought many operations together lives into traditional Muslims in other words themselves will start like what is it that we need to adjust the model here and there where the muscle and that's something that we needed to adjust our credit policy and the credit modeling and this was solved and Lindsay.

What does have you kind of talked about and even the cohorts this year changed.

We've been thinking about the cohorts the.

Cohorts already reflected those policies basically touch on mix I don't think I don't quite get the pizza.

I remind them that we are on the right track.

Except as an ease that required more Joseph.

Two or three improving in October but the cohort.

Some peace of mind that they know.

Half the policy School Harrington.

Scenarios, we are envisioning for the rest of the year and next year.

We have the interest rates have to help the country growing again, we will try to origination again.

The old creation is good news.

When we had a reduction in almost 2 billion under contracts like.

This is very important to show that the right things with it and this was quite big.

Both in origination and credit policy.

That gives us comfort so that since July we have been improving.

Dan just mentioned.

Two Oh geez.

Perfect points makes sense if.

If there is one thing.

When perhaps we went wrong.

It was about maintaining them.

Oh tight more.

Mike.

Well longer trying to cycles.

I think that's perhaps the most the wrong timing towards just a dollar based company.

And we reflected a lot on the island, we adapted our processes and review the whole policy.

Pretty good.

Thank you thank you Mike.

Yeah.

Oh, I'm not surprised about that right now.

People Love Arthur with Goldman.

It doesn't affect Peter go ahead.

Hi, Good morning. Thank you taking my question I guess my question is your ability to improve profitability and sort of the current competitive environment.

Do you know.

A bit more cautious with law and the lower income segment and.

Batteries there with.

Low cost to serve and then now you're moving up to higher income, we haven't I mean competitors.

Advantages in another competitor is talking about.

The platforms.

Just wanted to think about.

How you fit into the sort of new competitive environment and you know when we look at the ROE on a consolidated basis, but your insurance are we had been fairly healthy in the mid twenties banking are we you know mid single digits sort of a bad how do you think about the ROE.

In particular.

I bet he didn't move the banking ROE and then with insurance next year.

Have some headwinds with lower rates without insurance or are we I don't know.

So that could also be a little bit of a challenge. Thank you.

Due to our people.

So.

So.

We've got some profitability in the competitive environment until we operating in growing or not growing low income.

Coty to trained loans for this population and constitutes or if there.

There are some important aspects here.

This ability.

Raising the profitability of our clients.

Competitive environment.

Thank you.

ESCO has an important geographic footprint with present in all municipalities yourself, Brazil as I mentioned before.

Have to adjust the dose and hoping to windows.

And the last two to three years wouldn't thing working towards to choose our cost to serve.

In the different geographic distribution of our branches.

Presentation, you could double the size of the adjustment we made in our head count and also in our physical structure of the physical branches of the bank.

The structure of the branches they're size, whether they should remain open on all items of different locations. It would be the ability to create those the GDP if that makes sense.

Municipality that city.

We are operating in.

These variables.

Obviously, we have presented.

We have a responsibility with all of these municipalities, but today.

We'll have changed their habits the way he claims were linked with the banks so strange.

Digital banks that don't even have branches, but these are all well positioned in the market. So it is necessary to do so.

What my necessary so.

So we'll make adjustments just because we've been making and will continue to make in 2024 months.

Okay.

We're working hard on this because it is important the physical Pos surf.

Quite high you know.

And we have to make a judgment.

January but this is a phone.

It will be fully implemented together with the next so that.

We can serve these clients to open checking accounts with Purdue has got to come to the desk and they want to strip them onto percent digitally as long as they want this.

Without the need for the clients who are going to.

The physical branch of the bank unless they need some kind of advice and so let's see what they say.

So these are very difficult to complete the sale there will be a lot smaller with all of the associated costs of armored cars.

Cards et cetera, all of the costs linked to our brick and mortar is known in Frankfurt.

That's number one of course, we still have an appetite to continue to grow an audience.

Income.

Because that's the characteristic of physical banks are characteristic of our bank.

Oh, it's operated where retail bank.

And we'll continue to operate in this winter with the adequate risk appetite.

One of these audience with the right pricing.

Prices will find according to geography like I said.

Just to find of course, according to the type of guarantee.

The final according to profitability relationship with the client Principality clients.

With all the bank, although but always with adequate price. So that's regarding low income.

Higher income like I said, everyone wants to operate in hiring a couple of them.

But we put the school, we believe we have a competitive in competitive advantages firstly, because we can say that the higher income audience.

Oh places of the country.

I have 1.300 million clients.

The higher income Bradesco prime not to mention the private bank, which is going crazy.

More than.

Oh, Hi income plans.

For Brazil.

What you don't have a manager is driving some of them.

Do you think you will know that when we have a checking account.

The Bank amendment or for this client.

That's going to become a lot more profitable we.

We can bring the claims he brings to accommodate.

Power management and of course, this client AUM I feel a lot more profitable.

So there won't be you were right just as an extremely competitive market.

The market, but we have a blue ocean with these higher income clients.

Also on the bank the corporation itself.

Oh gosh enjoys.

Better too.

Funds each of them being able to provide all products and services. We have an insurance company a consortium of the company and I said actually too.

So to US it's medicine companies.

We have.

Another theory bonuses and financial companies we have.

Okay.

Does that.

The means of theatres in higher income clients. In addition to car. So I can make sure we have a guy to get to a higher income be Amazon card.

So there's a lot of projects in our shops.

I'm going to offer to these clients always respecting our customer centric culture.

And just the right product at the right time.

The moment, a moment of those all of those subjects with.

Along with me.

Even better.

And these competitive landscape.

Like I said the insurance companies are coming white strong living.

We ended up with Areva we.

Contributing defensively in going forward.

And that's going well.

The bank will consequently be Oh long trade of course were not happy with Euro.

We are recording it is inadequate.

It is.

This is explained by the labor market in the past, but we are recovering the automobile insurance company was almost all of the other companies of our organization are important.

And for me the result.

But you were kind of looking forward.

Okay. So I mean with all the work.

We are doing well.

With vertical wells with the higher income segment, adjusting destruction and important announcement.

Probably to go with the related companies, but it's just going to show this because this glass and carbon.

All of the different levers, we can work with with all the school things out there to do it.

Going through our <unk> not only because it's so.

Of the increase in the loan book, but because of all of the products and services.

We can offer to these clients. Thank you for the question Peter.

It takes a topic that's very helpful. Just one quick follow up on the insurance Roe.

Fair to assume that it could be some pressure from a lower rate environment or how do you think about our interest rates for insurance in particular.

Uh huh.

The British goes all Sharon's in Pennsylvania, and is supposed to take a significant focus yet.

There's not new you know insurance companies really well the insurance group has been posting recovering results for this in this year.

Particularly as it has happened.

Of course, there were benefits of interest rate of the.

Our portfolio will be managed by the insurance group with interest rates and the G. P. Yeah, My PCA indicators.

And if anything even more of the financial results of the company.

So, although we do see a declining.

Right.

The other thing that Central Bank. This was company suddenly M D.

More than 100 billion Bureau in revenue.

So it's all about working the claims ratio.

Okay.

Boy you have to continue to work with the assets, we have English around group of people.

The pension plan.

And the private health care insurance insurance group. So, we'll just be intelligent and insurance company, yes, as it is for any company, but I understand that the insurance company has.

NASA managerial ability Ivan.

You talked to a beautiful.

Uh huh.

The reorganization of the insurance company with an update of systems assistance to interact with clients the physical plants, where most of the insurance group is doing really well because you have to give any insurance company will end with about 3 million items sold only.

Only over mobile.

So there's this whole framework in the insurance group.

We believe that.

Despite.

Lower interest rates.

P. J P M might be insurance group will continue to deliver significant and sustainable roe's overtime.

Thank you.

Our next question from Rafael <unk> with Citibank.

You May proceed.

Good morning, everyone I would like to revisit the topic of your cause they used to and I am So you had or is it going.

Second reduction in and I am in the quarter.

And you also showed that you've got.

No.

Oh my goodness.

Each component accounted for that drop would look at the mix it was quite relevant in.

They have here in one year I think it represented about a million and this half year alone 700 meeting I want to know whether this was just due to SME or there is any of the other elements that impacted the quarter's results and how should we expect the recovery maybe in the fourth.

Quarter, maybe this has been a very significant drop this quarter.

And maybe we could see some relevant recovery and I am or maybe this would be more gradual.

Rafael it's good to hear from you.

Profile and in fact.

Can you describe.

Our.

Our results in terms of the NII or N. I M. There was reduction on the average spreads that came down to 9.1.

And as you put it quite well this was mainly due to the mix.

Yes.

A reduction in business loans.

Two as amazing it's quite relevant in terms of putting together. This Brett just to give you an idea throughout the year you may notice that there was a drop of almost 10 million in that portfolio in this.

Has a major impact in the overall result, but.

This matter has been sold.

We have appetite to operate further and you know that.

Information of NII depends on your growth therefore.

It doesn't happen in the immediate month after that or.

In the subsequent quarters. So the portfolio has to evolve so as to see any improvement in NII.

The mix of the portfolio had an impact, especially in terms of SME, but we already saw some growth in loans.

So their numbers throughout this last quarter and in October.

And would you say that has been further progress we have to make.

Adjustments all the time.

We have to have the adequate pricing for every type of product so that at that margin we can see.

A significant recovery, but this is a gradual process Rafael.

We look at this.

Every month every operation.

To see that recovery on that line, but we know that it is possible for us to recover it because these transactions at this level of clients. It's just natural that spreads are naturally better. So what we have to do now is resumed these operations, but certainly with a good degree of caution.

And also having in mind the size alone there were giving to these clients.

We don't want to lose them and all of those days long transactions, usually come with other products and services in terms of the the client Principality in terms of collection loans credit cards and all of that.

Plays into having a more robust NII throughout the fourth quarter and also throw out 'twenty 'twenty four and therefore.

We have just to go after the improvement of the financial of this NII or N I M.

Thank you Rafael.

Our next question is.

From Danielle <unk> from Suntrust.

You May proceed Daniel finish module.

Thank you Fred and good morning, without doing any kind of general. Thank you for taking my question.

You already talked a lot about as a niche but in fact is finished.

This segment is worth elaborating a bit more because usually there is cause yourself.

Volatility, but the margins are usually higher than in 'twenty, and 2020 'twenty, one with a stone, Arizona recovery a Friday is not so easy you have to know how to operate.

In this universe of small and micro sized companies and I think that anvil hasn't yet gone back to normal do you think that this is more related to a movement in the industry do you see other sectors with worst delinquency or some that have better delinquency numbers, how do you see the health of all.

Of clients and how difficult it is to collect and what is the behavior of the new vintages and what do you expect going forward to 2020 four it well. Thank you Danielle good morning, and thank you for the question in fact this.

Segment of small and micro sized companies.

Good segment, but it's very complex to work with it.

Cause I mean, this is not a simple task, but we see that.

That the industry has even higher delinquency, depending on the segment and depending on the focus of every financial organization.

Weather is more located in the southeast are spread around the country. It's not very simple to operate in this segment and this segment is also affected as you well know.

By the economic cycle higher interest rates.

Yeah.

It's just related to growth.

These companies.

Face difficulties during the pandemic, some recovered better than others and some others, even cease to exist and so this industry as you put it yourself.

Complex industry to work with its difficult for us to develop.

I'm working with them. That's why we're always very cautious and that's why we are taking a very close look.

Don't go to small and micro sized companies. The managers are closer to the company's regional managers are being more selective as well.

I don't see any specific industry being more or less affected but when I look at mid size company that we call.

You know that.

With corporate one we see.

Stable NPL delinquency is stable and companies that grows more than 30 million.

So in these cases.

Delinquency is more stable.

No concern going forward I think the dome.

A cause for concern is with SME.

Every size companies no concern.

We would just do business as usual.

And the focus indeed is more with small and micro sized companies.

Without leaving aside individuals', that's always a very sensitive issue in terms of the loan book and the impact of interest rates, especially if you look at some portfolios like personal loans and credit cards. Therefore.

When you add all of these factors together.

You can then see our capacity to increase our.

Long runs, but we.

We are becoming more stringent in terms of keeping the controls in place, but we are very certain that delinquency is under control.

Got it.

Thank you Daniel.

Okay.

You're talking about.

Next question is from Thiago Batista with UBS go ahead Ted.

Yeah.

Okay.

I will.

Hum.

All right.

Yes.

Sorry, My Mic was alright, I don't remember who can pull.

My question is a follow up.

A question regarding the profitability of it.

When we look at we thought two or three quarters about 11, 12% in the consolidated number issuance.

Insurance 25 miles.

You might have at least two you're doing your calculations I think they do.

The banking business is between five and 10, which.

Do you see other players even the wholesale having another we always not quite 2%.

Wow.

So that's just.

Okay. So no young your.

You're right.

Ooh.

Thanks.

Paul mentioned that they lose money in low maybe come to heal.

Looking from you what is the availability.

Business, especially with a focus on low income can really help the return, but not too with drugs.

Thank you Thiago for the question.

So it's really it's a very good observation.

When we look at the segments.

Initial Windsor strong financial sector and it's.

The profitability of the whole bank is doing quite well with like the costs are comparable.

Comparable profitability of D High income bank right.

Adding prime private is also doing well above cost of capital.

The insurance company, because even if he wants to do that.

But we have targeted.

Retail by five years.

As you can see the retail here for the screen or any other bank Tony Brito.

Retail was always just like providing goods.

But this segment.

That's going to go through a process.

The challenges.

Overtime.

So regulatory challenges everybody. The fact that we're opening checking accounts with no tariff cost to open a bank, having a brick and mortar.

In a certain way.

Great.

Additional challenges and we can say Oh, my goodness when they really wanted him to speak.

Two years ago.

What would you get a real sort of I O.

The cost of capital.

Oh God.

Our faith in us.

Michael It's a family of five.

The increase in interest rates.

Social benefits provided by the pandemic and then you've got the government AIDS.

And copies of the mine.

Okay.

Yeah. This is Barry come in New York.

Low income people why they don't have 2345.

Our cards in their wallet, Philippines interest because it's very easy for them to have access to try to either.

Putting checking accounts and mobile phone so asking for a card digitally driven home to go to a brick and mortar branches to a manager.

Be well.

Became very easy for somebody to get credit and this is a determining.

Determining factor for this longer cycle, we've been observing in addition to the team illustrates the Google a lot.

Right, having sometimes but that scenario in mind.

So we still aren't changed and this is based on spending on my personal opinion.

I was supposed to be profitable.

Profitability above the cost of capital. However, we have to have adequate coverage.

We have two legs.

Our audience, Besides Jesus always live programming.

Digital is fundamentally that personal lines. So that we can serve this client without a need to be physically present.

Bank range or anything of the physical structure of the people.

And if we do have a physical structure it should be very much geared.

And then two just.

You knew.

What's the geography.

How come you can pay your water bills electricity bills are below we cannot do that anymore and indeed, we can always be profitable. If we have a bank branch adjusts to serve this kind of transaction.

You'll find the presentation on the right side of the screen you can see.

The adjustments we've made.

Is it cost structure.

I.

Personnel structure.

We have as Rob just.

Transmitting sorry, well point out, but it will continue.

Continuing much more feverishly along.

Because we definitely have to which is a hot coffee.

Because it seems jug water.

This is the new normal as you observed yourself tango. So this is the new normal new disaster.

This adverse selection.

That's all we have to ensure that we and the whole market. That's a challenge for all in government and banks.

Make a judgment eliminated asymmetry.

Some more.

Mitigate us inventories. So that also is a retail bank we tend to have a return above the cost of care and this is possible.

He started out.

I feel should be growing 3%.

Percentage of GDP. This year would have an expectation that the country will be growing in the coming years, given everything that has been happening the tax reforms that it was coming.

The country continues to grow for several consecutive years, well have higher income moving to more people with incomes.

Oh boy.

For us to be more profitable.

In the retail segment. So there is an important challenge for all of us incumbent banks and especially for Bradesco.

Oh, we got goggle. Thank you Thiago. Our next question comes from Bernard Good Man.

Bernardo go into Europe, as well, but again I think it was.

Funding and thank you for taking my questions I have one question regarding credit.

Question two for England.

Uh huh.

Positive highlights.

But it's still tight.

But on the other hand, the coverage ratio shows another portfolio introduction getting too far below historical level. So my question is what is.

Please.

Did you change your mind.

Even with a lower M P.

Perhaps it will have to rebalance that equation.

If you'll allow me.

Deal volume that you're pretty too in terms of coverage ratio Farquhar.

Bernardo Indeed, the coverage ratio is reduced to <unk>.

Huntington.

Five now.

Yeah.

With 100% covered to be similar ratios of 240 was a small reduction but it is only natural Bernardo said at the end of a cycle.

So slightly higher delinquencies that will consume proficient attitude with precision exactly to use when we go through a different or tighter credit cycle before you go in a company or in the country. This is exactly what happened.

With the moment when we resume our portfolio drove an improvement in demand.

And the margin to do well and that's one of the big coverage percentage will be adjusted and movie he used.

Magical number for us.

Okay.

On stage, we cannot be below that magical number.

Ooh Ooh Ooh prevention.

According to what we expected because I F. R. Us will kick in in 2025. So we are very comfortable with the level of provisions. We have 15 nine almost 60 billion in provisions.

What percentage of the provisions for those operations that are 100%.

Provision for credit card provisioning above 90 days delinquent.

Great.

Wrapping.

Not as much as we would have liked but when we observe.

Our short term delinquency.

As rates are falling in a robust fashion of course that will have a reflection.

90 day Uh huh.

In an NPL 90 day NPL. So you can think of a bed.

Good thing that we are serving the doors as you don't bring up a point or two oh. Good direction. We don't have a magic number I'm, sorry, I do have to keep your shoes.

Sure.

Well no. It is no more no increase using just a L. L. D. A L. L. O. We have the provision that we have gives us comfort.

The correct coverage for the portfolio because we have to.

We've won the trophy.

No.

I'm going to stick with them alone book This will bring an increasing maybe although it's good a L L.

When it gets good operations that are coming in but with your I S. R. S. Sometimes.

Sometimes it takes a real danger.

It makes it lost it is with this model that we are working to define their professional and can make one thing.

To increase or even reduce it.

Oh and one specific comment.

One of the few banks.

There are two.

Specific clients delinquency, if it weren't for this effect.

And the additional part of credit that is considered delinquent.

Delinquency in Q3, if it wasn't for that the coverage ratio would have stayed stable.

A point that all types of motions regarding the origination of new loans.

This is what is going to lead to any meaningful.

Coverage ratio as we originate new loans.

It up really well with no delinquency will rebuild the coverage ratio joined us.

Thank you I think are very much again.

Our next question.

Hoss from Eduardo Rosman with BTG. Good morning, Rosemarie you May proceed.

Good morning, and good morning, everyone I have two questions. My first question.

Dividend payout the bank has maintained a very high dividend payout closer to 70%, but assuming that the.

<unk>.

Intends to expedite growth next year and profitability is still below anticipated levels.

I mean, you're not building a lot of new capital. So what could we expect in terms of the pay out next year.

This would be my first question I would just like to understand.

These payout dynamics or whether you would be worth it to do some buyback and the second question is about cost of capital wasn't been talking a lot about cost of capital I think one of your competitors usually Pablo.

This shows how much they believe their cost of capital is.

Have you what is bradesco cost of capital today.

Considering the dynamics of interest rates going forward.

In terms of dividend payout this year, we already provisioned for that and.

I think the buyback.

An important alternative so much so that we just renewed our buyback program that was just about a week ago, so that would be a good alternative.

Even considering.

You know they shouldn't go like this.

The value of the shares.

So that buyback program is ready and renew when the times comes in for next year, even with.

Lower results in comparison to what we would like to have we will certainly try to remunerate our shareholders with.

Have a reasonable and adequate payout therefore, as I was saying.

It does make sense to tours or to buy back in terms of cost of capital maybe if you're ready can say something our cost of capital was very similar.

Two.

What the analyst culturally something ranging between 14 and 15%.

So all of them all the information.

I just have another follow up question now.

Thinking about next chair tribute you can now do you think that they pay out would be along the same levels do you think about.

That you will remain.

Having this high payouts to housing.

Benefits because I think this also has an impact on the tax range. Okay. If the ban is bad remain continues I think so we would probably try to use it and then have the full benefit.

Because this was serve our shareholders well, but there's still some steps that are necessary until we see what will happen. There was an important change in terms of interest on capital that was being discussed at the Senate level and that was an important adjustment that happened.

Because with that shareholders.

We'll be more comfortable but regardless of what may happen, our intention is always to.

Make full use of interest on capital I understand that the minimum would be 30%. According to the bylaws right yet.

Thank you.

Our next question is from UT Fernandes with JP Morgan Good morning, Judy the floor is yours.

Morning, Patti and good morning.

All I have.

A question related to your NII looking at liabilities on the liability side thinks we're performing well.

I mean, you had good funding in the quarter, but don't you think this was the pushback on your margin I mean demand deposits went down savings deposit also down in this scenario of high interest rates, but I just wanted to look at that liability line and buying whether this does not in fact II and then in terms of.

To me you close it.

You're supposed to be talking about this makes it the company is working.

And that very closely but there was a drop of 1% wind nah. It was down by five so the mix of semi it's very very tight.

Could you share with us.

Bottom thing related to that segment of companies below 30 million and I think that the mix of that semi.

Be a little bit different are you doing good morning, it's a pleasure to have you here with us. Thank you for your question in fact, I mean, if you if you look at the market as a whole.

So.

The funding cost.

The incumbent bank.

Our funding costs increased.

Due to the competition coming from new platforms smaller banks and other things there are a series of factors that at the end.

India benefited some and in other instances it increase the funding cause even because today, it's very easy for clients to choose where they want to invest their money and this.

Increases our funding cost, but anyhow.

Great.

The reduction in savings account or even demand deposits, it's quite natural.

Given the current situation of people I mean savings deposits are dropping not only of bradesco, but in any other.

Income to the bank.

There's a drop in savings deposits, it's across the board maybe also because people are now choosing to invest in other instruments, rather than savings account and also because families.

The use of that money because of high interest rates inflation. It shouldn't that's it's a cyclical phenomenon.

And it's very hard to avoid that and demand deposits.

It's pretty much along the same lines.

Demand deposits worth kind of inflated due to many.

Government programs and benefits that the government offered before.

That's why I talked a lot about principality the share of wallet of our clients, we talked a lot about that during the presentation because in fact this.

This is a challenge that we face every single day, when we go to work.

Yes.

We we have two towards the centrality of the clients renewing.

The share of wallet, because there that allows us to improve the liability margin we made important investments.

To make that possible I talked to you about you know wealth management more than 4000 prime clients and a lot of investment expertise.

There can be also grant loans to these people they take credit as well, but it's important that we bring to the Principality I'll say for the clients to our organization, we did some relevant work.

Totally recognize that Bradesco sa.

So.

This growth.

Well it has been quite significant.

We had more than 770 billion of assets under management and even private banking.

We increased the liability on the private banking side.

I believe that we are moving.

In the right direction to bring more investment from our side.

Even when I went out of our brokerage firm well with them.

Several levers that can be worked on or bring principality and in turn we will increase the liability.

I I E.

Do you know who funds management or T V or any other kind of investments in our trading transactions with clients using our own brokerage firms. We think this is the first step and it has proven to be right.

We are evolving in terms of the liabilities and we are also making important strides towards improving my it when we had interest rates of 2% a year like we had in my past maybe that liability NII wouldnt make a lot of difference, but just as importantly, if you want to grow your loan book, but with an interest rate.

That reached 14 per month and.

12 point something today that you know liability NII makes a lot of difference. So I think that's it in terms of the liability.

No I was thinking about SME portfolio and we have.

Talking about that extensively in fact, what we think is real.

You should know Bradesco has a very big.

Geographic footprint I'm, not talking about the third Amelia and upwards, but I'm talking about companies, whose revenue was way below that when you work with secured accounts with you know receivables discount et cetera. These are.

Our very profitable transactions.

Now when we look at the fee comparison at the Central Bank you see the size of the spread of these portfolios is a V. A portfolio from a mid sized companies. There's a huge difference which is natural because of the risk that these companies represent so the margin of this makes all types of clients.

With whom we've been working with in terms of small and micro sized companies as well.

That difference I don't know exactly what the percentages.

For a cheaper and.

Great.

They can give you more details on the numbers.

When we look at our SME portfolio.

Probably two thirds of that portfolio.

Our clients below 15 million and this particular portfolio.

It's a bit compensated by the mid sized company.

Company portfolio and do that at very fair I just have one last follow up.

Funding or what have you.

How much is it today I don't know whether you can break break it down I mean average funding or C. D I could sum up your ownership.

I think it.

All of the incumbent banks.

Struggled with it there was a worsening of the numbers, while we do not.

These specific numbers.

Our comments are more generic they clearly.

There was.

Oh God.

Yeah.

There was an increase in funding costs.

Yeah.

Part of it and if you look at the movements in our portfolio part of that has to do.

With a more focused.

Pork using some investment experts at first.

They looked at.

Funding that or they're in demand deposits fees, our investment funds.

<unk>.

And there's some minor adjustments.

This is probably something that is behind some of the moves you're going to be.

Okay. Thank you. Thank you very much thank you Judy.

Next question.

Yeah.

Is it something there.

Yeah.

Good morning, Thank you for taking my question.

My question goes back to the guide, but speaking more about doing.

So much different from.

From the guidance I'm trying to understand which C line.

So we can drive growth. So that you can meet the guidance in Q4 as well.

He was a good one hand, thank you for joining us.

Our funding of newspapers.

I know the fee is improving quarter on quarter.

And quarter by quarter.

What are we still guide, it's likely to lose a guy.

There'll be provided but we have an expectation.

To increase Lindbergh.

Fee income line, we took a number of things.

Courtney.

Having a substantial improvement as we shared with you.

Just my God knows in the wholesale bank and underwriting operations.

So the amount of the percentage of that group we have.

Quite a good pipeline for Q4 and also for 2025 tumor something separate or doesn't have a good expectation that companies will be renewing their debate to operations.

They have in the market.

New operations that we're also doing it as a neutral host.

Companies don't wait or better mic at the moment.

So.

But operations Army chairing.

These will need to adjust so there is a good or a different ways related to underwriting and so that's a good expectation that is materializing or getting things in ethane in particular and now at T Z O N E.

And we have more geared to the structured products through my phone.

And there was good expectation there also.

We shut in for their school flying.

Again.

All lines are growing you know, it's all loans, because improving the whole bit of my lendingtree.

Again operating.

In a normal range.

These are just some of the aspects that I believe that there are a number of mines.

It goes anywhere, but the scope of for sure.

So there are a number of companies many businesses of the bank.

Both bring him truth to the fee income.

It is clear thank you very much thank.

Thank you Wahid.

Oh.

Which might be a little weird to have one last question.

They took with T cells.

Good morning go ahead.

Friday.

Two quick questions.

<unk> robust Roes, India business lines, if you could elaborate on that.

Sure.

He probably equal in if he wants to add.

And my second question going quickly back to Smes and refrigeration.

Situation in small enterprise E G.

Do you see a crime.

An important tool.

You too.

Best coffee to serve and to better manage delinquency in the segment.

This well oiled leucadia.

Uh huh.

Got.

Good morning, Thank you for joining as well.

Well he was the classic I grow well you end up with this really well he's been following us for many many years and that grows over time.

As a flagship phone yourself also giving the origin of our bank.

But just go through.

Following the gross Oh, the agribusiness in Brazil, particularly in the countryside of so Paulo in.

The north of one of those so people always.

So in that business amongst the private bank.

I propose a leader isn't that great.

And you forget PNG, yes.

Oh, so lasers in different ways.

So for every business operations of our European to yes.

And that business is as a part of the Brazilian economy, which isn't the absolute driver.

The driver the Brazilian economy, and I'm sure today it hasn't been so for some years now must be somewhere and why we are giving special attention to deal flow.

Dream.

Well, particularly.

One is in India pre Covid trials frontier is doing well.

Well they are expanding.

Loved it.

They are growing the Amazon biome in other Brazilian vials.

Yeah.

Hey, Turan.

And the competition.

Moving for us.

Because I think this is one of the small business like with listeners.

It is a big thing in Brazil, with a volume of resources, which is huge.

So we specialize.

We had 955 branches that were trying to this is typically the whole team.

So he was trained in the last century.

Yes.

This is quite a bit and then you'll go needs particular vision chenier Susan.

Susan.

We're putting their crop.

And talking with economists engineers.

955 specializes in that.

For instance, all over Brazil and to have all of the cultural regions being served by specialized people sort of the need for bankruptcy claims. In addition, we have a constant presence in all the main agricultural trade shows in Brazil. This year.

We captured double of.

Last year, and delinquency and sometimes there's a very very small.

So there's the moment when.

The farmers they need to exchange their machine.

Got it.

And he put them into becoming larger and more sophisticated the combine or machines.

And Oh, that's driving the business.

Got you.

And another initiatives.

Hum.

So we had about five.

Thank you.

Pointless.

It's a three year kind of on the bus.

So much more.

And then we're looking to see is gilead the Midwest in the countryside, So Paulo.

Apart from a few platforms that we had to react to it.

Lars do about 14 two.

Yeah.

And in the mainland.

Agricultural production nuclear in Brazil, whatever the commodity they're growing well.

Putting the huge with a specialized.

With gluten central team of specialists all of these points.

Agronomist engineers.

So to give comfort to our armed with my answers in Sydney.

This is a little bit of the growth. We had in every business will continue to grow with these questions like I said, they're 14 14, plus firms will be opening another four.

Michelle grew even more because there are other areas.

There are posting a lot of agribusiness graph, that's all you in where they're changing the crops boyfriend.

Moving from livestock to soybean to corn.

These moves so that we can provide the right advice to our clients and for our business.

So Francesco will continue to focus on our grid business.

That will grow.

Even more.

When you go to Smes in the acquiring.

Part of your question to me because they have an acquiring company C. All of her partnership with Banco do Brasil.

Super well see all of you will remember three to four years ago.

Had these problems and difficulties in posting good room for more but they are just it isn't so T. L O now those things.

It was always much knocks.

But most importantly, it's what's yellow.

This offering a product at a wholesale bank needs to have.

Yellow we follow our Ludlow.

The company's debt.

Do you know what.

And then the acquiring business.

Today, It is working really well and have a good partnership with Banco do Brasil.

Problem.

Most banks.

You are live in the CLO and CLO gives us the advantage of Bradesco.

Bradesco Banco do Brasil basketballs.

That's true.

Absolutely.

I think the bottom line.

Bring losses as the Guy on my concern my Butt.

So when you can gain marketshare cannot be profitable, that's how we have to make choices.

So that we could have profitability in our business is with smaller companies, but if he is through its all on the table we have to look at CLO.

How important it is for all of us so where it goes.

I think through how we should look at that company.

In the portfolio.

Conservatives, but just go ahead and offer to our clients and us.

The wiring is.

Definitely very important for us to continue to crew and again maintaining that principle, how long. It is that we want to enjoy with one client cash management cards.

Ro.

That's how we can play up allegedly so it's all on the table for us to look at what he got it. Thank you very much excellent.

Oh.

With this we conclude the Q&A session.

The questions that have not been answered.

We will then be answered by our IR team before I turn the floor back to what I would like to remind you that in our Investor Relations website. You will also find find this presentation and all of the materials related to this earnings release call. In addition to other information, but I do thank you.

Okay.

Final remarks thank.

Do you think of the C. I don't think it was Friday. Thank you very much to the entire team and help us to boost together. Thank you so much for joining us. Thank you for your time.

I think we talked about.

Oh aspects related to the P&L of the bank there are still some challenges in your very precise in terms of your diagnosis. We will improve we will make an important improvement and I hope I was able to clarify your issues.

But just.

In case, you still have any pending issues in mind, please get in touch with those get in touch with anyone from our team because we really wanted to clarify any issue of that.

It's two penny. Thank you so much for your attention and for your kindness to join US today I wish you a very very good weekend. Thank you.

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