Q2 2023 Inter & Co Inc Earnings Call
Yes.
<unk> Alexandru Riccio senior Vice President of retail banking and Santiago still senior Vice President of finance and risks leaves.
[music].
Speaker Change: Please be advised that today's conference is being recorded and a replay will be available at the company's IR website.
Speaker Change: At this time all participants are in listen only mode. After the prepared remarks, there will be a question and answer session.
Okay.
Speaker Change: For this session. We ask you to write down your questions via the Q&A icon on your screen.
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Fix the turbo sugar 5000.
Einstein: Einstein AI.
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Speaker Change: Now everyone's with Einstein with Salesforce.
Speaker Change: Please note that there is an interpretation button at the bottom of your screen, where you can choose the language you want to hear English or Portuguese.
Speaker Change: Alright.
Speaker Change: Throughout this conference call, we will be presenting non <unk> financial information.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Hi.
Speaker Change: These are important financial measures for the company, but are not financial measures as defined by I F. R. S.
Speaker Change: Yeah.
Speaker Change: Any movie.
Speaker Change: Yeah.
Reconciliations of the company's non <unk> financial information, Judy I FRS financial information are available and enters earnings release and earnings presentation Appendix.
Speaker Change: To refine applebee's right here with you I've already put a horror movie on the server we have to just watch it so good.
Speaker Change: Thanks for taking all the states guys.
Today's discussion might include forward looking statements, which are not guarantees of future performance. Please refer to the forward looking statements disclosure in the company's earnings release and earnings presentation.
Speaker Change: Oh Trust me it will be great.
Speaker Change: At this time.
Speaker Change: Right.
Speaker Change: [music].
Speaker Change: I thought I did our swirl.
Speaker Change: Now, let me introduce the agenda for today.
Speaker Change: Oh, Allah, probably pizza Guy I'll get it.
Mr. Zwanziger Mennen will start the presentation sharing with you an overview of the vision and the main achievements of the quarter.
Speaker Change: The guy that money.
Speaker Change: The guide we have a bunch of assets.
Speaker Change: I'll take that one.
Speaker Change: To those affected.
Speaker Change: Then Mr. Alexander Riccio will cover the banking and transactional platform sections.
Speaker Change: Yes.
Speaker Change: Eric.
Speaker Change: Let me now.
Speaker Change: Mr. Santiago style will present, the financial performance section.
Speaker Change: Rob.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: And then Mr. As well Victor Mennen will make some closing remarks, and we will proceed to the Q&A session now I would like to yield the floor to Mr. Shuang Vitter minute, Sir the floor is yours.
Speaker Change: What the army whether they take me.
Speaker Change: Yes.
Speaker Change: Right.
Speaker Change: Sure.
Speaker Change: The crowd.
Speaker Change: Thank you operator.
Speaker Change: Thank you.
Speaker Change: Good afternoon, everyone and thank you for joining our earnings call.
Speaker Change: Uh huh.
Speaker Change: What happens.
Speaker Change: What does the Congo.
Speaker Change: This is a truly special quarter for several reasons.
Speaker Change: Gary.
Speaker Change: Oh Wow.
Speaker Change: On one hand, it's marks the one year anniversary of our U S listing.
Speaker Change: Yeah.
Speaker Change: Which is why we are broadcasting from NASDAQ.
Gary: Flattened the transfer.
Gary: Okay.
Speaker Change: New York studio.
Speaker Change: And more importantly, it is a quarter of records.
Gary: And then the crowd.
Speaker Change: Lately exit out the door.
Speaker Change: Representing an inflection point in our history.
Speaker Change: Hum.
Speaker Change: If you recall, what I said in the last Archer earnings call.
Jack Dorsey: Alright, Jack Dorsey.
Jack Dorsey: Alrighty, but that's it.
Speaker Change: I mentioned that our results were just a glimpse of our strong bench.
Jack Dorsey: Oh.
Speaker Change: Like you mentioned of Joy.
Jack Dorsey: Right.
Dave: Well Dave.
Jack Dorsey: Oh.
Speaker Change: <unk> is now a reality.
George: Hey, George.
Speaker Change: Reflected in the mood or records, we were able to print in a single partner.
George: I'm actually able to gas.
Speaker Change: Doesn't transport me straight to the ground, so I gotta be careful.
Speaker Change: Oh right.
Speaker Change: First we combined both top and bottom line record performance.
Speaker Change: Maybe then goes from Oh.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: We delivered our strongest operational results.
Speaker Change: Alright, I got you back with another.
Holly: Yeah, Hi, Holly.
Speaker Change: With record new active clients and activation.
Holly: Right.
Holly: Okay.
Holly: Oh right right right.
Speaker Change: Third we launched our seventh vertical which is layered.
Holly: So could you maybe.
Holly: You mean.
Holly: Now what third party.
Speaker Change: Improving the value proposition for our clients with the new rewards program called inter loop.
Speaker Change: Alright, I'm, telling you guys you've got to have our treasure hidden somewhere.
Speaker Change: And lastly, we launched our global at the first ever in the banking industry.
Speaker Change: Great tragedies.
Speaker Change: What do you want me to players.
Speaker Change: We have all of that I could not be more excited.
Speaker Change: We're searching for.
Speaker Change: Hi.
Speaker Change: I believe this shows are a huge part to deliver the best platform for all stakeholders.
Speaker Change: Yes.
Speaker Change: Right.
Right.
Speaker Change: Got it got it.
Speaker Change: Okay.
Speaker Change: Dirty rat.
Speaker Change: Yeah.
Speaker Change: On page six.
Speaker Change: Donna.
Speaker Change: We delivered an impressive combination of record figures.
Speaker Change: Got it.
Speaker Change: Got it alright.
Gary: Gary Princess maybe I could scare those who are trying to steal from me what does.
Speaker Change: From a financial sites.
Speaker Change: This is actually.
Speaker Change: Our gross revenue reached <unk>, one 9 billion has 33% higher than a year ago and it continues to be highly diversified.
Speaker Change: Hum.
What happened.
Speaker Change: Okay.
What is going on.
Speaker Change: Yeah.
Speaker Change: He is going to be working well I cannot hear you.
Speaker Change: Alright. This is starting to Freak me out.
Speaker Change: Great balance between fees and NII.
Speaker Change: Yeah, we go.
Speaker Change: The topline growth was combined we felt very disciplined cost control.
Speaker Change: [laughter].
Speaker Change: Which should enable us to deliver a record.
Speaker Change: Okay why don't we wanted it look different.
<unk>, 53%.
Speaker Change: I just wanted to clarify.
Speaker Change: We continue with our <unk> driven under Reed.
Speaker Change: Yeah.
Speaker Change: Oh.
You look good.
Speaker Change: Enabling us to have strong NIM expansion.
Matt: It's Matt.
Matt: Yeah No kidding.
Matt: Yeah, Yeah, yeah, Okay. So here's the deal I think in the scary bad debt.
Speaker Change: On the bottom line, we had our highest ever profitability.
Speaker Change: Both on pre and post tax basis.
Matt: Yeah.
Matt: My job now.
This is not just a few percentage points higher than the prior periods.
Matt: Youre not going to chase anything weird right.
Speaker Change: No worry.
Speaker Change: Oh, Yeah things in mind, we have a number of them are weird right Nate.
Speaker Change: Multiple times higher.
Speaker Change: Particularly on pretax basis reached 80, even ask.
Speaker Change: Right.
Speaker Change: Weird, but that sounds like a lot of work though.
Speaker Change: Yeah people chaotic I'm kidding.
When we look at the operations and innovations.
Speaker Change: I gotcha.
Speaker Change: Hum.
Speaker Change: <unk> to see also a series of remarkable milestone.
Speaker Change: Oh, yeah yeah.
Gary Princess: Gary This is awesome I, maybe a little bit weird.
Speaker Change: We had another acquired or adding 1 million active clients.
Speaker Change: Oh, Hey, guys I'm, just going to grab that real quick.
Speaker Change: And we reached a total of 28 million.
Speaker Change: Yes.
Speaker Change: Oh, Wow well come back later.
We continued improving our activation ratios by impressive 68 bps.
Speaker Change: Yeah, I'm not sure I'm, you know I'm trying to do both.
Speaker Change: These data we know it's the wet Oh, what does that mean, you Gary that Charlie.
Speaker Change: Surpassing 52%.
Speaker Change: Our highest level since 2021.
Speaker Change: What do you think.
Speaker Change: Just kind of Athene Hasnt got the South Bend.
Speaker Change: We continued innovating by launching interval.
Speaker Change: Right.
Speaker Change: Which we believe will drive strong engagement and activation.
Speaker Change: Gary.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Additionally, we started operating our global App.
Speaker Change: Yes.
Speaker Change: It's a little bit better, but it can be the skeleton for jumps.
Speaker Change: Now we have our super App working seamlessly across geographies same as Uber or Netflix.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: So I never happened because you now can you kind.
Speaker Change: Or is that just for that.
Speaker Change: Yeah.
Speaker Change: No I don't mind plenty I would have to be in front of them.
Speaker Change: Yeah.
Speaker Change: On page seven.
Speaker Change: So what you would expect it looks like when you hit that.
Speaker Change: Is that correct.
Speaker Change: As an engineer I'm, a build or buy hearts.
Speaker Change: Alright.
Speaker Change: And in that sense I'm very excited with the launch of our reliance problem called inter loop.
Erin.
Speaker Change: Okay.
Erin: Oh Wow a block.
Erin: Crap.
Speaker Change: I had the same excitement when we launched our destock count in 2015 and also when we launch into shop back in 2019.
Erin: What kind of block well I don't know.
Erin: Oh come on let's break it I got it.
Speaker Change: Hang on hang on how do we know we can draw it's free what's not to trust. Okay. All I'm, saying is that it might not.
Speaker Change: I'm fully convinced that we have all the elements to succeed in this.
Speaker Change: Good morning.
Speaker Change: Okay fine.
Speaker Change: This new journey such.
Speaker Change: I am giving it.
Speaker Change: Such as.
Speaker Change: Yeah.
Speaker Change: And atheism claims 200 billion highest transacting for Parker.
Speaker Change: Okay.
Speaker Change: I got it.
Speaker Change: It happened once you put that.
Speaker Change: I state of the art acknowledged platform.
Speaker Change: Block Nobody Donald.
Speaker Change: And food banking infrastructure behind.
Speaker Change: Oh, Oh Oh.
Speaker Change: I am sure that we moved this rep. This market in the same way that would be it would.
Speaker Change: Uh huh.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Oh Oh.
Speaker Change: These four banking a few years ago.
Speaker Change: Yeah.
Speaker Change: Laura lets go right.
Speaker Change: Yeah.
Speaker Change: You go in and find out what's going on.
Speaker Change: On page eight.
Speaker Change: In summary, this is a quarter of records the best one ever.
Speaker Change: Great.
Laura: Alright got it right here somewhat.
Laura: Oh.
It's a truly at an inflection point in our history.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: I told you this is Atlanta.
That enable us to start seeing the full potential of <unk>.
Speaker Change: I mean, you always wanted to kind of wait to break the block G. I am not even kind of humor you with that response, we just need to find a way out of this we are back.
Speaker Change: Despite still being a big one and to have a lot to deliver in the next few years I'm happy to report real operational excellence and profitability.
Speaker Change: Factoring go do it now.
Speaker Change: So we can try to let me parse it two ways.
Speaker Change: The Oregon.
Speaker Change: This innovative and profitable business model is gaining momentum as we can.
Speaker Change: Yeah.
Speaker Change: Oh, that's not a real door I don't know about and then we're going to get you some abnormal one.
Speaker Change: Continue to grow.
Speaker Change: Gain market share.
Speaker Change: Okay.
Speaker Change: Kipp innovate.
Speaker Change: Enhancing our Super App for our clients and lastly, expand our profitability for our shareholders.
Speaker Change: Alright.
Speaker Change: Happy.
Speaker Change: Thank you.
Speaker Change: Wait a minute.
Speaker Change: Yeah.
Speaker Change: We're starting the second half of this year.
Speaker Change: What is it.
Speaker Change: Very strong note.
Speaker Change: [laughter] I wanted to get a lot.
Speaker Change: With the momentum that enable us to continue delivering results over what was built so far.
Speaker Change: Thank you.
David.
Speaker Change: Thanks again for Houston.
Speaker Change: Oh he died.
Speaker Change: Thank you.
Speaker Change: Got it.
Speaker Change: Please go ahead.
Speaker Change: Right.
Speaker Change: Okay.
Speaker Change: So that was pretty good.
Speaker Change: Thank you Joel and good afternoon, everyone I'll start talking about our credit and funding capabilities.
Speaker Change: Good good.
Speaker Change: Wait a minute.
Speaker Change: I think is a great one.
Speaker Change: Well what does it do.
Speaker Change: See you.
Joel: Jumping each of our loans on page 10.
Speaker Change: Yes.
Speaker Change: For those that don't take it won't.
Joel: Gas through some important highlights our portfolio grew by 5% this quarter.
Speaker Change: We see nobody here, we should be able to.
Speaker Change: Got it.
Joel: Focused on high ROI products, such as epic GTS loans, which grew 26% and home equity, which grew nearly 10% in the quarter over quarter basis.
Speaker Change: Okay.
Speaker Change: [laughter] Oh.
Speaker Change: That's where I think I got a good idea, okay, we're going to pull the bait and switch.
Speaker Change: And then you need to actually go and you know who.
Joel: In credit cards, we grew 6%.
Oh wait wait wait and we want to sign up.
In payroll in real estate, we continued improving our pricing and materially increased the average yields.
Speaker Change: Oh, Oh wait maybe I'm screaming that should be aside enough right.
Speaker Change: Good morning.
Joel: The word that better describes this quarter in terms of credit underwriting is consistent.
Speaker Change: Let's see how this works.
Speaker Change: So let's go.
Speaker Change: Let's go to the bottom.
Speaker Change: Okay, we got out of there.
Joel: This discipline has enabled us to improve more and more the average yield of our portfolio.
Speaker Change: Yeah, I think we're just not far enough.
Speaker Change: What do we do.
Speaker Change: Yeah.
Speaker Change: Sure.
Joel: With 200 basis points increase in a single quarter.
Speaker Change: It's too easy.
Oh right.
Speaker Change: We have been doing a very easy jet job relating to our underwriting capabilities and are already seeing a strong results of it.
Speaker Change: Yeah.
Speaker Change: Right.
Speaker Change: What is it.
Speaker Change: Okay.
Speaker Change: Yeah, No kidding, Zane I'll start into a whole lot better.
Speaker Change: Now on page 11, we present, our asset quality metrics.
Speaker Change: They've adapted.
Zane: No. It's somewhat places don't have block that I broke and then things just started happening.
Speaker Change: Starting with the 15 to 90 day NPL, we saw an impressive decrease of 30 bips in a year over year comparison.
Speaker Change: Okay got it.
Zane: Now what's happening it must be out there.
Paul: Hey, Paul.
Speaker Change: On the 90 days metric, which had an impact of changes in growth rates. The ratio increased 30 bps on a quarterly basis in line with the general market trend.
Paul: Well I mean don't even worry about it.
Paul: Please.
Speaker Change: So I'll pick up the big about shape after what happened and I saw a party. They remember the third part is by Oh, Yeah, I want to go pick up I see it all of a sudden I called two really scary things that start up hours House now first I saw David the only thing we don't even have to worry about this atmos not even here any more peers, you're clearly the one breaking off.
Speaker Change: We're happy to report that newer cohorts are consistently improving as a result of our more assertive and data driven credit underwriting.
Speaker Change: As you can see that bought Atlanta chart.
Speaker Change: Finally, the NPL and stage III formation reached one 6% in line with the market trends and our past performance.
Speaker Change: Yeah.
Speaker Change: Oh, that's right yeah.
Speaker Change: No.
Speaker Change: Hmm.
Speaker Change:
Speaker Change: So I didn't hear that.
Speaker Change: Okay.
Speaker Change: Oh.
Speaker Change: On page 12, we see that our cost of risk reached six 5% in the quarter. The increase as mentioned in the prior page is mainly associated with older cohorts of credit cards. A site of cards are costs op risk is demonstrating a solid and stable.
Speaker Change: Is that a dominant.
Yeah, probably not seriously what looks like a big guy like it sounds like.
Speaker Change: It sounds.
Speaker Change: Like something.
Speaker Change: Up to us in any manner.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: What's going on.
Speaker Change: End of around the 1% since the fourth quarter of 2022.
Speaker Change: [laughter], Oh, Oh Oh.
Our coverage ratio remained constant at 130% by provisioning in line with the NPL trends.
Speaker Change: Oh.
Speaker Change: Yeah.
Speaker Change: Overall, we see that our asset quality metrics are following the macro trend with similar behavior when compared to peers.
Speaker Change: My old startup.
Speaker Change: No.
Speaker Change: And then just third you see different data telling me those jerks assortment for trying to take all your stuff.
Speaker Change: You are not here.
Speaker Change: On page 13, we can see the evolution of our funding base one of the key competitive advantages of our platform our deposits grew 29% year over year.
Speaker Change: Ooh, that's about a little more.
Maybe we should try this split out.
Speaker Change: What do you think is right there with her.
Speaker Change: Oh yeah.
Speaker Change: Reaching $33 5 billion reais in the highly fragmented base with more than 13 million clients trusting us with their deposits.
Speaker Change: I wonder if she's home.
Speaker Change: She had to date.
Speaker Change: No we're here.
Speaker Change: Oh yeah.
Speaker Change: We continued delivering best in class cost of funding reaching 63%.
Speaker Change: Got it.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Of CDI in the quarter.
Speaker Change: Oh yeah.
Speaker Change: Yes.
Speaker Change: [laughter].
Now.
Speaker Change: Let's move forward to the transactional platform session.
Speaker Change: Oh no.
Speaker Change: He is making.
We're glad to report our second consecutive order, adding 1 million new active clients.
Speaker Change: No.
Speaker Change: [laughter].
Speaker Change: Oh.
Speaker Change: Thanks.
Speaker Change: And with the lower CAC in over two years, our activation rate showed strong progress increasing 68 basis points, surpassing the trend that started last quarter.
Speaker Change: Alright.
Speaker Change: [laughter] Oh Wow.
[laughter].
Speaker Change: We achieved these results with big data and AI, which allowed us to advance towards much stronger understanding of our customer profiles behaviors and product preferences. In addition, we have advanced significantly India, personalization, which we present.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Oh yeah.
Speaker Change #100: He died one of US why don't you Dare to tell me I shouldn't have Keller.
Pat: Hi, Pat.
Pat: Pat.
Speaker Change #102: Well go to him on that one.
Speaker Change #103: Well, we couldn't always could Kim.
Speaker Change #104: Third although.
Early this year in our Investor day.
Speaker Change #105: I have one but I can make another node.
Speaker Change: As an example, we have more than doubled the number of at home screens when comparing to the end of the first quarter.
Speaker Change #106: Well I think you might enjoy it right, but it's better than anyone else actually.
Speaker Change #106: Alright.
Speaker Change #106: Yeah.
Speaker Change: In terms of the volumes on page 16, you can see that debit and credit cards as well as peaks reached 197 billion reais of GPP.
Speaker Change #106: Yes.
Speaker Change #106: Oh.
Speaker Change #107: We never left.
Speaker Change #108: Why don't you keep it pretty much you can say okay.
Speaker Change #108: Yeah.
Speaker Change: Which demonstrates our strong position in banking and in the daily lives of our customers.
Speaker Change #109: That's nice.
Speaker Change #109: Yes.
No.
Speaker Change #109: Uh huh.
Speaker Change: Interesting to note that credit cards continuous trials based debit transactions, providing us with a much higher interchange and profitability profile.
Speaker Change #109: No.
Speaker Change #110: Well nice job you've ever heard that obviously you are just trying to save money.
Speaker Change #109: Sure.
Speaker Change #111: Sorry about that.
Speaker Change: In a cohort basis as presented in the right chart, we can see the positive evolution in one increasing PPV across cohorts and to hire starting points, which is a strong evidence of better quality clients.
Speaker Change #111: Oh yeah.
You may see if you become a minion in mind.
Speaker Change #112: Oh well.
Speaker Change #113: Well, it's either that or you keep going until you say, yes.
Speaker Change #113: You go ready and yeah.
Speaker Change #113: Debbie.
Speaker Change #114: Butterflies really really.
Oh, she looks completely moment.
Speaker Change: Yeah.
Speaker Change: With our clients transacting, almost 200 billion reais per quarter in their daily banking activities, the cross selling opportunities are notably higher.
Speaker Change #115: Got me Ann.
Speaker Change #115: Okay.
Speaker Change #115: Alright.
Speaker Change #116: Oh gosh.
Speaker Change #117: Never mind, I kind of I'd say you on blind. Thanks.
Speaker Change: As we keep enhancing communication channels and create new engagement solutions, such as inter loop. These opportunity can scale, even more in the future.
Speaker Change #116: Wow.
Speaker Change #116: Yes.
Speaker Change #116: I think Charlie you said that Ian Ian why him.
Speaker Change #118: Got it.
Speaker Change #119: Third party in the first place.
On E Commerce, we reached $2 7 million clients transacting during the quarter.
Speaker Change #120: Took all the stuff that I saw that.
Speaker Change #121: You know what.
Speaker Change #121: Yeah.
Speaker Change: Our momentum allowed us to continue growing our net take rate, which now stands at 9%.
Speaker Change #122: I think we should get in neck.
Speaker Change #123: No I can't.
Speaker Change #124: Can you give me a moment.
Speaker Change: Our highest level ever.
Speaker Change #125: I can follow.
Speaker Change: On insurance, we saw a 46% increase in active clients as.
Speaker Change #125: All right.
Speaker Change #126: I'm going to go and get your Daddy defined <unk> got it.
As we evolve with our Upselling and cross selling initiatives.
Speaker Change #127: Okay. My wife's came even going she's only been scared we're looking at all.
Speaker Change: And finally on investments, which reached $3 6 million clients.
Speaker Change #128: I got you know the paces and scary because smart people.
Speaker Change: We saw an impressive 66% year over year growth along with very strong and you see the increased 41% to 77 billion Reais.
Speaker Change #129: Thought I could do so I think you'll be fine you're the pants off they just don't get too caught up with you Tim.
Okay.
Speaker Change #129: Alright, so let's see.
Speaker Change: These products boost our ROE and consume no capital.
Speaker Change #130: I think I can use a special power to get a hold of it and see what the scary phone guys, maybe hearing Anthony three a M, but we'll find out.
Speaker Change: Yeah.
Speaker Change: As Rob mentioned in the beginning of the presentation. We are super excited with all the possibilities that inter loop is bringing as our server business vertical.
Speaker Change #130: Alright.
Speaker Change #130: C.
Speaker Change #130: Okay.
Speaker Change #130: Yeah.
Speaker Change #131: Hey, guys.
Speaker Change: We are using our robust banking structure as the backbone of this program the.
Speaker Change #131: I don't remember it stealing a phone.
Speaker Change #131: Hmm.
Speaker Change: The breadth of our platform dramatically facilitate the earn and burn opportunity keep opportunities with the marketplace being the most obvious synergy.
Speaker Change #131: Hello.
Speaker Change #131: Yes.
Speaker Change #132: Wants to know just and in Miami Dade County.
Speaker Change #132: Yes.
Speaker Change #132: Yeah.
Speaker Change: Their solutions are already built.
Speaker Change #132: Right.
Speaker Change #132: Ah 90.
Speaker Change: We just need to connect them.
Speaker Change #133: Call me today.
Rob: In that sense inter loop leverages, not only a strong potential of cross selling but also can create revenue streams, such as one earn versus bird spread.
Speaker Change #133: Good morning.
Speaker Change #133: No I don't want a paycheck.
Speaker Change #134: I can see you're fine.
Speaker Change #134: Okay.
Speaker Change #135: Wait a minute.
Speaker Change #136: Thank you.
Speaker Change #136: Yes.
Speaker Change #136: Not over there.
Rob: Chu breakage, three going to sales and for subscriptions and much more.
Speaker Change #136: Sure.
Speaker Change #136: Yeah.
Oh Wow.
Speaker Change #136: Okay.
Speaker Change: The idea is to connect all of our verticals with inter loop, creating through gamification experience.
Speaker Change #136: Exactly.
Speaker Change #136: Well I'm kind of close to you.
Speaker Change #137: Is there any way to make you I don't know.
Speaker Change: Yeah.
Speaker Change: Talking about our global solutions on page 19, we illustrate the evolution of these vertical.
Speaker Change #138: I thought you want your fans around you know whether that'd be nice.
Speaker Change #138: Alright.
Speaker Change: We're glad to see that it is performing at that base much stronger than we anticipated, reaching almost $1 9 million global clients and 220 million U S dollars in deposits and AUC.
Speaker Change #138: Yes.
Speaker Change #138: Yeah.
Speaker Change #138: No.
Speaker Change #138: Hello.
Speaker Change #138: What could you offer me right. So what do you mean by.
Speaker Change #138: [laughter].
Speaker Change #100: A strong adoption of these products is related shoe it seamless UX into our go to market strategy that's focused on.
Speaker Change #138: Yeah.
Speaker Change #138: What does that does that.
Speaker Change #138: Yes.
Speaker Change #138: Got it.
Speaker Change #138: Buggy.
Speaker Change #101: One Brazilians will travel abroad, and once you spend in the U S issued card Chew Brazilians, who want to invest on NASDAQ or nice treat people, who live abroad, and sand remittances worldwide, mainly imogen immigrants and for people who are.
Speaker Change #138: To deal with it.
Speaker Change #139: Come back Yeah, I won't buy.
Speaker Change #139: Hi.
Speaker Change #140: Much time to get my revenge.
Speaker Change #140: Yeah.
No room in here now scrap that's what we can say.
Speaker Change #141: So apparently are huge fans I mean I'm also flattered.
Speaker Change #102: To invest in real estate funds.
Speaker Change #103: We continue evolving to replicate our Brazilian law offering in the U S with minimal investment by taking advantage of our flexible and scalable technology.
Speaker Change #141: Great.
Speaker Change #141: Okay.
Speaker Change #141: Okay. Thank you. Thank you.
Speaker Change #142: You cannot really jumped over.
Speaker Change #142: Okay.
Speaker Change #143: Why is it here.
Speaker Change #144: Building, a new house I don't know why you didn't just go into hospital, but true I mean, he could've just dug into the hospital, but he's too much of a chicken Oh, let's.
Speaker Change #104: By now we already have deployed five of seven of our business verticals in the U S. All of them integrated into our global App.
Speaker Change #145: Let's just break down the shack doesn't have a room.
Speaker Change #146: Our own came back a little prouder.
Speaker Change #104: In terms of products, we have in place remittances store discounts gift cards debit cards mortgages and investments.
Speaker Change #147: Oh go get it.
Speaker Change #147: Yes, you bet.
Speaker Change #148: Core transformation like each leader Alright, I'm, what I'm trying to say.
Speaker Change #105: And as we move forward, we plan to add full week of food E Commerce platform.
Speaker Change #149: Oh, Oh Oh.
Speaker Change #149: Okay.
Speaker Change #150: No no no no.
Speaker Change #105: D M P L and credit card credit cards.
Speaker Change #151: We are here.
Speaker Change #152: Just like to remind them all so do you think about him off no not not.
Speaker Change #106: For mature nodes that were called in Reais and monetizing in U S dollars.
Speaker Change #152: Okay.
Speaker Change #152: All right.
Speaker Change #153: A bunch of promote Oh no no no don't please don't hold me to about anything but I'm at the very end, there just scary and Theyre just extra capacity better.
Speaker Change #107: Now certainly we will pass through the financial highlights of our quarter of records.
Speaker Change #107: Everyone.
Speaker Change #152: Okay.
Speaker Change #154: I've been waiting.
Shan: Thank you Shan the veteran and everyone now let me walk you through the financial performance section.
Speaker Change #155: Wait a moment what do you have something in mind C. What are you doing.
Dan: Hi, Dan.
Speaker Change #109: In the context of the quarter Records revenue is certainly one of them.
Dan: [laughter], Alright, Dan I'm coming back.
Speaker Change #112: We reached $1 9 billion or growth of one 2 billion of net revenue this quarter.
Dan: In a minute.
Dan: Hi.
Speaker Change #110: In terms of growth is interesting to notice the aspiration of 12% in net revenues in a single quarter Martin the strong momentum of our franchise.
Speaker Change #157: Tourists Minecraft. She does respond you dummy yeah, all right. Okay, you guys I'll, let Aaron I forget.
Speaker Change #157: Yeah, that's probably where you saw myself.
Speaker Change #111: Another important highlight is held by the NII and net fees blue side by side, both at double digit rates.
Speaker Change #157: Hello.
Speaker Change #157: I mean, it was already about 10 gig.
Speaker Change #158: Alright look I can't wait to both of you, but I guarantee you just curious that how about that.
Speaker Change #113: On page 22, because he outback evolution across cohorts.
Speaker Change #158: Hi.
Speaker Change #158: You know.
Speaker Change #113: As we already highlighted in prior quarters newer cohorts continue outperforming the older ones.
Speaker Change #159: Seven Oh, well, we Gotta go get Pierre sorry, since he's the ones that destroyed my house admitted into the hospital Ooh, Yeah, Yeah Yeah.
Speaker Change #114: In addition, when class.
Let's get to know our platform by using it we see even higher levels.
Speaker Change #160: It's the only what happened is that's true sorry, you're right.
Speaker Change #115: We believe that these trends will remain increasing at the new approach of planned activation and the App personalization continues moving forward.
Speaker Change #161: You know like.
Speaker Change #162: That gets me I'll tell you I have no qualms about that.
Speaker Change #162: No.
Speaker Change #163: We want people to go out his house most likely.
Speaker Change #115: On the right hand side, we can see a stable trend from a financial statement perspective, given the strong growth in new active clients.
Speaker Change #162: Right.
Speaker Change #162: Yeah.
Speaker Change #162: Yeah.
Speaker Change #164: Alright, once again, it wouldn't hurt us under my control.
Speaker Change #165: Even home, usually ranting about sheep and stuff, yes, here's yeah can we just go inside.
Speaker Change #116: Now, let's discuss our strong NIM evolution on page 23.
Speaker Change #117: Starting with a mean 1.0, which considers the full portfolio.
Oh I see.
Speaker Change #118: We encourage we see awards that do not a queen interest. Nonetheless, these tie in Portuguese we reached an impressive 81%, which is 70 basis points higher than the first quarter with each year.
Speaker Change #165: Oh.
Speaker Change #166: And you're not the only very big on this server now.
Speaker Change #166: Bob.
Speaker Change #167: I don't know.
Speaker Change #168: [laughter] shipped down Alright, alright.
Speaker Change #119: Regarding NIM 2.0.
Speaker Change #120: Zero because he is only interested in portfolio increase was even higher at 80 basis points by fire our best performance in several years.
Speaker Change #169: Given the aggressive sheep, Oh, Oh, Oh that wasn't scary because that's what you all myself with my background, who really powers.
Speaker Change #121: Well, we look at the evolution of NIM seems to it other than 'twenty two we can see four different states.
Speaker Change #169: Yeah.
Speaker Change #122: First the converged our rates too and if I could live with as we shifted from growth.
Speaker Change #169: Hi.
Speaker Change #169: Oh, that's right.
Speaker Change #169: Yeah.
Speaker Change #170: I'm, taking a lot of messaging.
Speaker Change #123: Growth with profitability.
Speaker Change #170: No no no.
Speaker Change #124: Second we actively reprise the legacy portfolio of mortgages and payrolls.
Speaker Change #170: Yeah.
Speaker Change #170: Yes.
Speaker Change #125: Third we're really changing the portfolio mix as we originate more or a high Roe product.
Speaker Change #171: Thank you.
Speaker Change #171: Great.
Speaker Change #171: I don't know what to do.
Speaker Change #172: Oh geez.
Speaker Change #126: Finally going forward, we expect to benefit from the recent launch of the compounded the scale up of new products and the increase of Cilic rates.
Speaker Change #172: Yeah.
Speaker Change #172: Okay.
Speaker Change #172: Yeah.
Speaker Change #172: Hmm.
Speaker Change #172: Thank you.
Speaker Change #127: Moving to the expense side on page four before we can see effectiveness of our cost control initiatives.
Speaker Change #172: No.
Speaker Change #172: Two months and then scary movie.
Speaker Change #172: No.
Speaker Change #128: Our expenses decreased for the second consecutive quarter, even knowing their leases.
Speaker Change #130: Our expenses decreased for the second consecutive quarter, even knowing their leases.
Speaker Change #173: And I'm not really sure.
Speaker Change #129: When we look of course lies.
Speaker Change #174: Get it out before.
Speaker Change #174: Oh.
Speaker Change #131: Very stable trend in all of them.
Speaker Change #174: Yes.
Ooh outweighed the euro of what's that's what's wrong route.
With this disciplined focus on expense management with teams see a strong opportunity to continue strong operational leverage.
Speaker Change #174: Right.
Speaker Change #175: Matter of fact, I get a free five he found when I joined and I can get the same great deals with new customers when I say.
Speaker Change #132: Which two phase 25, we.
Speaker Change #133: We can see as these results are also visible in the ratio of active plans per employee, which is a good proxy of our workforce productivity.
Speaker Change #134: It stands at $4 2000, with the most notable evolution in Singapore.
Speaker Change #176: How are you.
Speaker Change #176: Okay.
Speaker Change #176: Uh huh.
Speaker Change #176: [music].
Speaker Change #135: The cost to serve also has strong performance between 20% in a year over year basis standing today at plus <unk> five <unk>.
Speaker Change #176: The little Guy.
Speaker Change #176: That's it for me.
Speaker Change #176: Mhm.
Speaker Change #176: Great.
Speaker Change #176: Hi.
Speaker Change #136: I'd like to highlight the importance of operating at such low cost to serve.
Speaker Change #176: Rita.
Speaker Change #176: Yes.
Speaker Change #176: Oh boy.
Speaker Change #137: Gives us a unique competitive advantage vis vis in coming months.
Speaker Change #176: Group life.
Speaker Change #177: We have lots of now available at one right now.
Speaker Change #138: Moving to page 26.
Speaker Change #177: Yes.
See what Nubian Shield limited NASCAR you can collect.
Speaker Change #139: What is probably my preferred slide the left chart shows the impressive work that we're doing in terms of the operating interest side.
Speaker Change #177: Ooh.
Speaker Change #178: Oh, Oh, I think that's really the area.
Speaker Change #139: We're being able to increase revenue and decrease expenses at an accelerated pace, while delivering best in.
Speaker Change #179: Okay at this point Oh.
Speaker Change #180: And then just choose Youre fighting.
Speaker Change #181: Oh, Oh, Oh, Okay, I see we got a snake if that's all right.
Speaker Change #140: <unk> products to our customers.
Speaker Change #141: On the right hand side I would like to highlight a remarkable improvement in our efficiency ratio, which is also one of the most important our records or por drove records.
Speaker Change #182: Oh, no that's going to be dangerous.
Speaker Change #182: Okay.
Speaker Change #182: Okay.
Speaker Change #182: Oh yeah.
Speaker Change #142: We reached 53% they can take uncle secondly, more quarter with nearly 900 Bips improvement.
Speaker Change #182: Yeah.
Speaker Change #182: Hum.
Speaker Change #182: Yeah It was intense.
Speaker Change #182: Uh huh.
Speaker Change #143: As you can see we had a great performance in person.
Speaker Change #182: Oh.
Speaker Change #182: What.
Speaker Change #143: Expenses were decreasing trend in both lines.
Well I guess.
Speaker Change #182: Yeah.
Speaker Change #144: We call in our Investor day target of 30% efficiency were considerably ahead of schedule towards this metric.
Speaker Change #182: Yeah.
Speaker Change #182: Right.
Speaker Change #182: Lisa.
Speaker Change #182: Or the labor Oh.
Speaker Change #146: These results reinforce our strong commitment and discipline focus towards our five year business plan.
Speaker Change #182: Oh.
Oh.
Speaker Change #182: Yes.
Speaker Change #182: Part of it.
Speaker Change #145: Owing to capital on page 27, we recorded a 51 up 22, 8% in the quarter, which is the lowest capital consumption or a quarter since our IPO.
Speaker Change #183: Oh, Hey.
Speaker Change #183: Nice.
Speaker Change #183: Okay, well I think I know what I know.
Speaker Change #183: Okay.
Speaker Change #183: Okay.
Speaker Change #183: Right.
Speaker Change #183: Yeah.
Speaker Change #147: As mentioned in prior calls our capital is fully comprised of quality core equity without any hybrid capital instrument when we can.
Speaker Change #183: Okay.
Speaker Change #183: Right now that's really.
Speaker Change #184: Hi, Jimmy merits as far as why don't even maybe go out my friend.
Speaker Change #148: <unk> one levels remains nearly twice that or the median five large incumbent banks with Brazil.
Jimmy Merits: Oh, Oh Oh, okay.
Jimmy Merits: Uh huh.
Jimmy Merits: Hi.
Speaker Change #148: Yeah.
Speaker Change #149: And last but definitely not least.
Jimmy Merits: Oh.
Speaker Change #150: Another record for the quarter of records is profitability on page 28.
Jimmy Merits: Okay.
Jimmy Merits: Yeah.
Why don't worry.
Speaker Change #151: We accelerated our path to profitability delivered 64 million of net income and a 14 times, increasing that pretax basis to reach an EBIT of 80 million.
Yeah.
Jimmy Merits: That was gonna be orange or black, but yeah.
Speaker Change #186: Playground ground a playground.
Speaker Change #187: Yes. This is definitely not a playground for niches.
This is our highest popularity since our IPO back in 2018, and we couldn't be more excited about what's coming next.
Speaker Change #188: Yeah clearly.
Oh man.
Speaker Change #189: Larger powered or not.
Speaker Change #190: Not getting.
Speaker Change #151: Joel will share with you his closing remarks, Joe. Please go ahead.
Speaker Change #190: Hi.
Speaker Change #191: Well I think we've heard.
Speaker Change #191: It wasn't a big killed completely chelan cubic how much into where he said power still right. Yeah. He did it never mind.
Speaker Change #152: Thank you <unk> painters century for highlighting all of the important topics of our partner of records.
Speaker Change #192: All right I'm going to come over here.
Speaker Change #193: Jumping in.
Joel: Before moving to Q&A I would like to say that these results were possible because.
Speaker Change #192: Oh.
Tracy: Power's Tracy Oh dentures empowered.
Speaker Change #195: I'm going to come back and help you.
Joel: First.
Joe: We have a very disciplined and focused on increase our revenue scaling up the products in our platform.
Speaker Change #196: After I do these towers.
Speaker Change #196: Oh wait.
Joe: Second.
Speaker Change #196: Obstacles.
Speaker Change #154: We booked <unk>, our cost structure and third maintain our strong innovative DNA approach.
Speaker Change #196: Oh excuse me.
Speaker Change #197: Oh Wow.
Gautam: Oh, Hey, Gautam.
Gautam: Oh alright.
As you can see inter is that its inflection point delivering strong results still with the best yet to come.
Gautam: Alright.
Speaker Change #199: Supersede and we can go through how do we dashed okay.
I don't know.
Speaker Change #200: Uh huh.
Speaker Change #155: Thank you clients and investors are Europe, Violable Trust Bank.
Speaker Change #200: Okay.
Speaker Change #200: Okay.
Speaker Change #156: To our employees to make this incredible quarter of records possible.
Speaker Change #201: Oh gosh.
Speaker Change #201: Oh, gosh, well Dodge methodically.
Speaker Change #157: Like I already said, we're starting the second half of this year on a very strong note.
Speaker Change #201: Okay.
Speaker Change #201: Yeah.
Speaker Change #202: That almost oh.
Speaker Change #203: So scary every couple of months.
Speaker Change #157: Okay.
Speaker Change #203: Yes.
Speaker Change #157: Oh.
Speaker Change #204: Don't worry about that but focus on moving forward.
Speaker Change #158: We will now start the Q&A session. Thank you very much.
Speaker Change #204: Oh.
Speaker Change #158: Okay.
Speaker Change #208: Ooh wait what does that mean.
Speaker Change #159: We will now begin the question and answer session.
Speaker Change #205: We have to jump on the floor.
Speaker Change #160: Once again for this Q&A session. We ask you to write down your questions via the Q&A icon at the bottom of your screen.
Speaker Change #205: Circles.
David: And David.
Speaker Change #207: Or what you saw nervous.
Speaker Change #209: Oh Wow.
Speaker Change #161: Your name will that'd be announced and you will be able to ask your questions live.
Speaker Change #210: Oh this is so cool.
Great.
At this point a request to activate your microphone will appear on your screen.
Speaker Change #210: Oh this is actually true.
Speaker Change #210: Yes.
Speaker Change #162: If you prefer not to open your microphone life. Please right no microphone at the end of your question and our operator will read your questions aloud.
Speaker Change #211: No that sounds like a sorry.
Speaker Change #211: Yeah.
Speaker Change #212: [laughter] Datagram I E.
Speaker Change #162: Okay.
Speaker Change #212: Yeah.
Yeah.
Greg Batista: Our first question comes from Greg I think you Batista from UBS.
Speaker Change #212: Yeah.
Speaker Change #212: Oh, Oh woe.
Speaker Change #212: Uh huh.
Speaker Change #212: So I don't think he says to Belgium.
Speaker Change #213: And I see we should use some of our powers.
Speaker Change #164: We are now opening the audience. So you can ask your question live.
Speaker Change #213: Right Yeah yeah.
Operator: Please go ahead Sir.
Matt: Hey, Matt.
Matt: I don't know nine.
Matt: Goodbye.
Matt: Aim right.
Matt: Lacks.
Speaker Change #214: There's little Baby Walmart.
Speaker Change #215: People give me up.
Operator: Hello.
Speaker Change #166: I don't hear me.
Speaker Change #216: I wanted to Oh.
unknown: Loud and clear Sir.
Speaker Change #217: Hey, I've got one chunky pencil, but already have kind of like him step, though kind of down.
unknown: Perfect.
Speaker Change #168: Thanks, guys for the opportunity.
Speaker Change #169: Very good earning so congratulations.
Speaker Change #218: Maybe you can find something for me I guess.
Speaker Change #170: I have two questions. The first one about the contact component.
Speaker Change #218: Ooh.
Speaker Change #171: It is fair to say that the vast majority of the conversion of the meta path to the low cost and deposits were already done and but we were not able to see yet the full impact of this change in the P&L.
Speaker Change #219: Oh geez.
Speaker Change #220: Looking at working together with them.
Right.
Speaker Change #221: Yeah, No no nothing Mcdonald's huh.
Speaker Change #221: Ooh.
Speaker Change #222: That's right.
Speaker Change #222: Okay. Okay.
Speaker Change #172: So on to see if the improvement in our profitability coming from this change will appear going forward and secondly.
Speaker Change #222: That's right.
Speaker Change #222: Alright.
Speaker Change #222: Yeah.
Speaker Change #222: Okay.
Speaker Change #222: Yeah.
Speaker Change #173: If I look for your Buck.
Speaker Change #222: Is that how that.
Speaker Change #222: What you saw in there.
Speaker Change #174: And they've been looking to the natural park.
Speaker Change #222: A couple here.
We saw some expansion this quarter to something close to 30 high promo.
Great.
Speaker Change #223: What does that mean, we get the best owner.
Speaker Change #224: Fair enough.
Speaker Change #175: But this is still about 10, 12% below the peak a that's a one or two one year ago My left.
Speaker Change #225: What are you Oh my Lord.
Speaker Change #225: Alright.
Speaker Change #225: Uh huh.
Speaker Change #226: Oh wait and watch.
Speaker Change #176: And if you look afford the shot to show about the another pocket by cohort.
Mojo Jojo: Mojo Jojo Ninja.
Speaker Change #228: Does that mean.
Speaker Change #177: We also are you starting to see that the new vintage a little bit of award for the average. So my question is.
Speaker Change #228: Right.
Speaker Change #228: Yeah.
Speaker Change #229: Oh look at all I mean, all I love it it's better than your tiny shed or whatever.
Speaker Change #178: At the new clients of into a little bit worse than the previous clients or the bank more conservative approach is.
Speaker Change #230: Neon sign in front of our house.
Speaker Change #231: Oh God.
Speaker Change #179: Is causing this is slightly lower in Metro park for the new clients.
Jamie: So Jamie.
Speaker Change #233: But that'll be really cool.
Speaker Change #179: Yeah.
Speaker Change #234: I can't let you.
Shanda: Hi, Thiago Israeli Shanda speaking. Thank you for the question and then I start with the Quanta component is one.
Speaker Change #235: But I wanted to have more stomach or is it smaller.
Jamie: Well, let's make it work.
Jamie: Got it.
Shanda: And 30 will take the second part so Quantico part of this part of a larger program as you know called the inter loop and so we launched this about two months ago.
Oh, Oh, Oh, where youll writer.
Jamie: Hmm.
Speaker Change #236: What was that noise nothing at all.
Jamie: Yes.
Speaker Change #237: And when it closes and he used to come in come on come on like what is that Oh My goodness.
Speaker Change #181: As our loyalty program and we're really seeing it as an opportunity to be our server business vertical. So it's a full rewards program and it connects our into our ecosystem and gives even more possibilities through to our clients right.
Speaker Change #237: Okay.
Speaker Change #238: No, but we got to make them a little less obvious up top.
Speaker Change #239: Oh, we have over.
Speaker Change #240: Alright, Alright, this is a little better than what I thought it was.
Speaker Change #182: So instead of being limited to receiving cash back and e-commerce investments and credit cards, which was the case before.
Speaker Change #241: There was a trade down here I trade, what we already be trained because in the Marcellus.
Speaker Change #242: Okay, nice and pretty good.
Speaker Change #241: Good.
Speaker Change #183: Clients can now earn points and have the freedom to choose how to burn disappoints.
Speaker Change #243: Oh wall really you really think that Walt can keep a ninja like me out of your base.
Speaker Change #184: Options to consume points now already range from like Cashback discounting either shop airline miles investments donations to multiple cherokees custodial donation spark is super knife, and we have a lot more to come.
Kevin.
Speaker Change #244: Oh, okay.
Speaker Change #245: Oh, Yeah, I guess well.
I loved you don't need to have we don't need a second war planes.
Speaker Change #246: Plain site, even more suspicious.
Speaker Change #247: Oh, Yeah, Yeah, food well why are we fruits over time.
Speaker Change #185: And so big key strategy with inter loop issue in the short term.
Speaker Change #247: Oh.
As it applies to your customers to retain engage and monetize further our existing base.
Ooh Ooh.
Speaker Change #247: And your first Ninja henchmen.
Speaker Change #248: Ooh terrific.
Speaker Change #185: And also to attract new customers with a more comprehensive offering that's flexible and suitable to a wider range of preferences and the mill in the long term. We believe that these have both been there the potential to be a business by itself. So as Ron mentioned in his remarks.
Speaker Change #249: It all goes.
Speaker Change #250: I'll take it easy.
Speaker Change #251: Over here over there.
Speaker Change #252: Oh my gosh, okay.
Speaker Change #253: Please go ahead.
Speaker Change #253: Oh.
Speaker Change #254: I only kokoda can we chose David pressure points.
Speaker Change #186: Our debt with our 28 million clients the full banking platform and the state of the art technology. It's a low hanging fruit that was demanded by our customers. So we're eager to pursue this this challenge there.
Speaker Change #254: Okay.
Speaker Change #254: Got it.
Speaker Change #254: Okay.
Speaker Change #254: Uh huh.
Speaker Change #254: Yes.
Speaker Change #254: Our run rate where does that go on.
Speaker Change #254: Yeah.
Speaker Change #254: Oh, yeah, yeah, a little bit.
Speaker Change #187: As we deep dive into quanta components.
Speaker Change #254: Yeah.
Speaker Change #188: It's one of the possibilities that we offered to our clients sure points in siding there Luke so clients.
Speaker Change #255: I'm not going to be sorry for trying to get my point.
Speaker Change #256: It's a bad one.
Speaker Change #257: [laughter] watermelon.
Speaker Change #258: One of them alone.
Speaker Change #189: Earn points given certain rules as a function of their transactional accounts balance so the way it works.
Speaker Change #259: Malone water below.
Speaker Change #259: Got it.
If the customers overnight deposits are invested on a C D and the C D yields or convert the beach in two points.
Stacy: So much Stacy I, just want to get that out of the way.
Stacy: Right.
Stacy: Right.
Stacy: Oh.
Stacy: Okay.
<unk> changes in their clients' experience besides receiving points and.
Speaker Change #261: Oh, Yeah, I like my story.
Speaker Change #261: Yeah.
Speaker Change #261: Arizona.
And the yields on the transactional account for entered on ethers per se perspective are optimized.
Speaker Change #261: That's about it.
Speaker Change #262: Do you want to go there.
Speaker Change #262: Yeah.
Jimmy Merits: Oh, My goodness Jimmy Jimmy.
Speaker Change #190: And finally on the <unk>.
Jimmy Merits: Perfect.
Jimmy Merits: One of them.
Speaker Change #191: On the implementation of the project, we did convert about 75% of the demand deposit balance.
Jimmy Merits: Got it got it got it.
Yeah.
Speaker Change #263: Oh first saying geez.
Speaker Change #264: T J hence.
This move happened mostly in June.
Speaker Change #265: Ooh Ooh.
Speaker Change #266: Well one of these looks cooler than the other.
Speaker Change #192: So we had about one third of the months of the revenue optimization, our debt the balance on reserve requirement optimized. So we still have a lot more to see in the third quarter and fourth quarter.
Speaker Change #266: [laughter].
Speaker Change #267: Look at this thing.
Speaker Change #268: Over here.
Speaker Change #269: Good thing is what I'm talking about.
Speaker Change #270: Yeah, you know you don't want either of those I mean, you.
Speaker Change #193: And down on Applecare afternoon, some doubt here.
Speaker Change #271: So you don't get it.
Speaker Change #272: Chicken, though I mean, it's pretty cute you get as many eggs as you want you got.
Speaker Change #194: So we're very happy with the performance of the Apple this quarter.
Speaker Change #195: Still more more to go but at the end of the AIDS a race between the numerator and denominator.
Plenty of eggs for your strong ninja bodies how's it going.
Speaker Change #273: No no.
Speaker Change #196: Revenues, which has been growing very well, but to me this quarter and new active clients with $1 million per quarter, which also has been performing what so when we look at the underlying dynamics for the same ratio, we see a narrative clients and close to a record.
Speaker Change #274: Yes, the Dragon the Dragon.
Speaker Change #275: Thank you.
Speaker Change #276: But I don't think there's one well just because of that I am going to take the pain to myself by.
Speaker Change #275: Alright.
Speaker Change #275: Marty.
Speaker Change #275: Chicken.
Speaker Change #197: I mean do into which one is super important it means that the like the platform and the they continue selecting it and the new cohorts are stabbing at slightly higher points.
Speaker Change #275: Oh.
Marty: Oh come on a little bit.
Marty: Okay.
Speaker Change #278: Oh right right right.
Speaker Change #198: Which is a reflection of the profile of the clients on areas of claims we're bringing now at around 30 years old with slightly higher income than the than in prior quarters like the ones we had in 2020.
Oh, it's just the type of.
Alright, she Michigan into me to do that.
Speaker Change #279: Alright, alright, so let's talk Casey I know, they let you behind and now you're stuck with Ken that that Cherry bombs.
Speaker Change #199: And when they are going to be one and then we have a dynamics on a new products are having recently launched we are still to be penetrated in the in the existing clients and that will also drive our back higher. So overall, we will we look at it on a cohort basis with these underlying.
Speaker Change #279: Yeah.
Speaker Change #280: Alright, we gotta help each other and come out on top okay.
Speaker Change #281: Alright, guys you might want to come see this.
Speaker Change #281: No no you really want to see that.
Speaker Change #200: <unk>, which we think are flowing well and eventually when it when a desk with revenue we ended up growing more than the net new anti planned growth there going forward.
Speaker Change #281: Hi.
Speaker Change #288: Oh, where does that come from rate.
Speaker Change #282: Your baby at the time.
Speaker Change #283: Thank you.
Speaker Change #200: Okay.
Speaker Change #284: Yeah, the old man, maybe jail can't believe it.
Speaker Change #201: Nice quarter.
Speaker Change #202: Thank you.
Betty: Hi, My Dad's Betty.
Speaker Change #203: The next question comes from Mr. Eduardo from Mr. Yuri Fernandes from J P. Morgan.
Betty: Okay.
Speaker Change #286: Alright, that's it.
Speaker Change #287: Neal your babies to gain your second hands.
Speaker Change #204: Next we are now opening the audio so you can ask your question live. Please go ahead Sir.
Speaker Change #287: You bet.
Speaker Change #289: Oh wait.
Speaker Change #290: Well I can't see why would it would be great.
Speaker Change #205: Thank you congrats for to certain quarters, along with assured that since Yahoo. I had this first one regarding payrolls a women's rights the city apply to you we see a big increase on personal loans right. That's most Vegas D rules. The gross initial income for Newport News line is up maybe 40% quarter over quarter. So just checking the box.
Oh Wow.
Speaker Change #290: Yeah, Kevin Keyes, you got plenty of those that you know I'm, a little bit worried about that.
Speaker Change #290: Oh yeah.
Speaker Change #290: Oh, Jeez slashed and then.
Speaker Change #290: Oh.
Speaker Change #290: John it's pretty powerful the snow babies here okay.
Speaker Change #206: Here what drove these inquiries on payroll is basically the reprise seats is X.
Speaker Change #291: Don't forget we Gotta go off of surf gate.
Speaker Change #292: This triple over at Gabon come on them through reps, Alright, we gotta get past these.
Speaker Change #207: GTS Niques, how sustainable it is and you should see more room for higher yields or payroll and I can ask my second question here. Thank you rich.
Speaker Change #292: Uh huh.
Speaker Change #293: Got it good job good job yeah, okay, Okay, I should've seen that coming I.
Speaker Change #207: Thank you Yuri I can take that one so it's in our mix.
Speaker Change #294: I'm, just gonna easy way yeah.
Speaker Change #294: Alright.
Two factors one the loan mix more towards F. G D S and we added this quarter the breakdown of the data together with the breakdown of home equity in the loan breakdown to be able to see more clearly so the growth has been heavily skewed towards these two are OE products higher or we pull that.
Speaker Change #294: Yeah.
Speaker Change #295: Once the accurate.
Speaker Change #296: That's a baby you just thoughts on that.
Right.
Speaker Change #297: Oh Oh.
Speaker Change #297: Goodbye.
He is right there, but just kind of a quiet okay.
Speaker Change #298: He is quite varied.
Speaker Change #299: I should be able to get up to maybe still one and then.
Speaker Change #208: And then on rates in payroll loans were originating very diligently above one 7% the curve has been rolling balance of the spread.
Speaker Change #299: Yes.
Speaker Change #300: Oh, okay.
Speaker Change #301: Do you have this little thing.
Speaker Change #301: Yes.
Speaker Change #209: It has been increasing we're evaluating the universal originated in the second half of Selic moves, but so far.
Kevin Keyes: It's Kevin.
Speaker Change #303: You want me to carry it or did you mean or we call them I grabbed the baby Oh got it.
Speaker Change #210: And what's reflected in the second quarter is our.
Speaker Change #211: In origination rate that has stood above $1 seven a barrel under <unk>, we increased from four two to around $2, 1% to 115% the monthly rate and that is driving the world personal loans right.
Speaker Change #303: Religion.
Speaker Change #304: So that's the way he come on.
Speaker Change #304: Uh huh.
Speaker Change #304: No.
Speaker Change #305: But it doesn't matter how cute they are they're all different.
Speaker Change #305: Oh.
Speaker Change #305: Wonderful.
Speaker Change #211: Yeah.
Speaker Change #306: Oh, no no no I get out of here.
Speaker Change #306: Got it got it.
Speaker Change #306: Uh huh.
Speaker Change #307: They'd be safer.
Speaker Change #307: Okay, let's see.
Speaker Change #308: Oh he's done.
Speaker Change #309: Yes, where we have babies.
Our next question.
Speaker Change #309: Hi.
Speaker Change #212: I'm sorry, Sir go ahead.
Speaker Change #310: Oh, Oh my goodness.
Speaker Change #212: Second one you had a follow up.
Speaker Change #311: What does that up there all right.
Speaker Change #312: Yeah, Yeah, Yeah. So we got the word a stake and a chicken oh.
Speaker Change #213: Thank you I wasn't able to amuse myself. Thank you very much Santiago just wasn't going to need to have I guess when you're exiting some you had a loss this quarter on the equity income line.
Speaker Change #312: Yeah.
Speaker Change #313: Ooh alright, yeah, they must give the baby right.
Speaker Change #314: What did I Miss it nice job.
Santiago: And just checking what happened there and these laws and bring it towards our losses, but just some color on that thank you.
Speaker Change #314: Paul I figured maybe against the wall.
Speaker Change #315: Well at least it didn't get hit by the awarded.
Speaker Change #316: Hey, I've got this year again.
Speaker Change #316: Yeah, that's what I was thinking.
Speaker Change #215: Are you at Longview through here at yards will have a loss on the income from Grunenthal, which is is a one off yes.
Speaker Change #317: But you kind of give that to a baby whatever happened to being responsible parents. Yeah, you talked about Zane yeah, yeah, its an inch baby I see with great responsibility.
Speaker Change #216: Though we are very excited with the granite business. We've just changed the management the management to have a new CEO.
Speaker Change #317: Oh.
Speaker Change #317: So.
Yeah.
Speaker Change #217: Each of that came from Pfizer.
Speaker Change #318: You've gotta be peak range.
Speaker Change #318: Right.
Speaker Change #218: They're going to need to businesses with very important for us to have a full.
Speaker Change #318: Yeah.
Speaker Change #318: Or are you completely together.
Speaker Change #318: Okay.
Speaker Change #219: Our service platform for our business account, which is performing really really well. So I believe that it's going to we're going to be a great a great moment that for our business. Our garden also for <unk>.
Speaker Change #319: Oh, okay.
Speaker Change #319: Even thereafter.
Oh.
Oh.
Speaker Change #323: I got a bold step for my kids and kids like sticks right.
Speaker Change #220: The acquiring business going forward. Thank you very much.
Speaker Change #319: Okay, Greg that you put the word startup.
Speaker Change #320: It's practical and you can still find what they're looking at.
Greg: Yes, Mike.
[laughter] hedge man.
Speaker Change #221: Our next question comes from Mr. Eduardo Rosemont from BTG.
Greg: Yeah.
Speaker Change #322: Oh no.
Speaker Change #322: Alright.
Speaker Change #322: Any insight you can give me back.
We're now opening the audio so you can ask your questions live. Please go ahead.
Speaker Change #324: Cookie man.
Speaker Change #325: Oh nice.
Speaker Change #222: Hi, Hi, Hi, good afternoon, I have two questions here.
Speaker Change #326: Alright junior coming here I'll, Let me show you kind of hit stuff.
Speaker Change #223: First one is on asset quality.
Speaker Change #326: Hmm.
Speaker Change #224: When do you think we can expect to know to see a real improvement in npls and the cost of risk right I think.
Speaker Change #326: Oh.
Speaker Change #326: Yes.
Speaker Change #327: The second half two but no no no come on.
Speaker Change #225: If we look to our results all of the lines are moving in the right direction. So we're just missing. This one if we see cost of risk moving dollar I think that the arrow jump will become more clear and allow it to everyone and the second question has had some sort of a relationship as well has to do with Principality, we saw an old.
Speaker Change #328: Yeah, that's right I'll show you, what I can do loader that watches.
Speaker Change #328: Uh huh.
Speaker Change #329: Yeah, that's pretty much that's not here I can pick it up.
Speaker Change #329: Yeah.
Speaker Change #330: That's to introduce her to all pets display.
Speaker Change #331: Do you have any insight.
Speaker Change #332: Nobody can see if you could start it was when teacher.
Speaker Change #226: Most banks and retailers you know.
Speaker Change #333: So think about it.
Speaker Change #227: Space facing challenges with N P hours within the riskier individual lending sectors right.
Speaker Change #334: Let's see.
Speaker Change #334: So let's see so here.
Speaker Change #335: Very beautiful very cozy.
Speaker Change #228: You have up here, you know, which is which is new bank that are clearly stood out to know.
Speaker Change #336: Over here.
Alright and out there, we got little Bitty things like Australia.
Speaker Change #229: And one of the reasons, you know, which is the strong principality with clients. You know you also have I know you have been showing you know there are a lot of clients have been toward that use in towards the number that's their primary choice. So what have you learned you know and and what can you, let's say use you know.
Speaker Change #337: Yeah. The first thing you need to know is to go for that.
Speaker Change #338: But I don't know.
Speaker Change #339: Oh My God. This is kind of suddenly do it now.
Speaker Change #339: Oh, Oh, Oh, I think we got the best ones Uncomplete. Thank you moving well right what do we what does that mean wait a minute.
Speaker Change #230: Two to be better prepared you know in the future. Once you have to resume growth on on these riskier lines again, thanks a lot.
Speaker Change #339: I don't know if I like that.
Speaker Change #340: Are we done.
Speaker Change #341: Oh, no no no no doubt.
Speaker Change #231: And Rosemont I'll take the first part that in OIBDA will take the second one so well nothing quite D. We're increasingly more optimistic as we've been doing the.
Speaker Change #341: Dragged out.
Speaker Change #342: No that's it.
Speaker Change #343: Yes, we.
We can leave it at all.
Speaker Change #343: Oh, that's it.
Speaker Change #343: Got it and the way forward.
Rosemont: The work behind the scenes there.
Speaker Change #343: Back here.
Speaker Change #343: Oh, that's not a big space in the graph.
Speaker Change #233: Very thoroughly and for several quarters and I would split I want one on non cards and card. So on currency view on non cards have you seen the disclosing the cost of risk remained flat at around 141%.
Speaker Change #344: This is all but one that I had so this is all that it gets right now.
Speaker Change #344: Alright.
Speaker Change #344: Alright, let me see.
Speaker Change #344: Cool.
Speaker Change #344: Wow.
Speaker Change #234: And this applies to our own 70% of the loan portfolios were known gods.
Speaker Change #344: Yes.
Speaker Change #344: What are you doing here.
Speaker Change #344: Ken.
Speaker Change #235: There haven't been any issues, which is what we expected. So that then that's great news on cards that we and our licensees and a cohort by cohort basis, and we added the disclosure last quarter. We have this one to be able to see how the cohorts perform and how they improve.
Speaker Change #344: Gasoline.
Speaker Change #344: Well it looks like it's fine yes.
Mike: Hi, Mike.
Mike: Yeah.
Mike: Yeah Yeah.
Mike: Yes.
Mike: Oh yeah.
Mike: What.
Mike: Secret.
Mike: Have you been given to the secret.
Speaker Change #236: In addition, we have implemented the maintenance strategies in the cards portfolio, which include increasing limits for high performing clients and we're using layman's oral players whose grade profile.
Speaker Change #346: Alright, I'll call you later bye.
Speaker Change #347: Oh, yeah old beds back.
Speaker Change #347: Got it.
Speaker Change #348: The Royal family.
Speaker Change #237: Curated and so overall, we think that with a better mix on origination and the great work that the risk management and co.
Speaker Change #348: Oh.
Speaker Change #349: I'm starting to think we're the ones that need rescuing yeah and I'm sorry.
Speaker Change #238: Election team is doing we expect second half of the year, we the trend improving relative to the first company you're going to if we look at June numbers and the dynamics were added to what we had at the beginning of the second quarter, we're already seeing that trends are improving.
Speaker Change #350: Oh I can work have you done that water down there, we got a drop in our <unk> snack.
Speaker Change #351: Oh, I don't know I'm, just going to use my grappling hook.
Speaker Change #351: Okay.
Speaker Change #351: Barry.
Speaker Change #351: Yes.
Speaker Change #351: Oh, yes.
Speaker Change #351: I think a few times it looks great right.
Speaker Change #238: Yeah.
Speaker Change #352: Good luck guys.
Speaker Change #238: Okay.
Speaker Change #352: Okay.
Speaker Change #239: Adhesion, albeit store I'm going to take the second one regarding principality.
Speaker Change #352: Wow.
Speaker Change #353: Got it.
Speaker Change #353: Hi.
Speaker Change #240: This is baidu is a metric that you have been proven so far so we've reached almost 70% principality on amongst our clients. So we're being prudent might first to be honest.
Speaker Change #353: We like that.
Speaker Change #353: All right, we got the Queen.
Speaker Change #353: Yeah.
Thank you.
Speaker Change #354: [music] Oh, we got around the world.
Speaker Change #241: Regarding the connection between Principality and Mpls.
Speaker Change #242: We don't see that as the main thing for us to to underwrite well to collect well and to have and therefore have a good mpls.
Speaker Change #355: Well I guess I'm not sure Oh no more.
Speaker Change #356: Ooh Ooh wait what.
Speaker Change #243: We do think that there are central Maine, as Sandy mentioned, the right credit modeling pleasant very very good collection process is the one that are going to drive the right mpls down the roads.
Speaker Change #357: Oh Wow.
Speaker Change #357: Okay.
Speaker Change #357: Yeah.
Speaker Change #358: Hold on.
Speaker Change #359: Ooh down every once you might hit us with a gentle breeze.
Sandy: And by having the clients using this with just the principle that you mentioned, who can also help together some information, but again its not a silver bullet.
Speaker Change #360: Oh, well, it's not like we're going to land.
Speaker Change #361: It would have been within the Green give me manner.
Speaker Change #361: No.
Speaker Change #245: What the mark to bring.
Speaker Change #361: Hey.
Speaker Change #361: Oh.
Speaker Change #246: More revenue streams use no other vertical them too.
Speaker Change #362: But what is it.
Speaker Change #363: So baby.
Speaker Change #363: So babies that did.
Speaker Change #246: To reduce the Npls, that's how we see principality versus mpls.
Speaker Change #364: Well, we don't know what is happening.
Speaker Change #365: Yeah, No I agree.
Speaker Change #246: That trend.
Speaker Change #365: Great.
Speaker Change #366: Go out with a floating babies.
Speaker Change #366: Uh huh.
Speaker Change #367: We don't actually.
Speaker Change #372: Oh hi.
Speaker Change #247: The next question.
Speaker Change #367: Hi.
Speaker Change #368: What's that.
Speaker Change #369: Oh, Thank you power level, it's all what I thought.
Speaker Change #248: The next question comes from Mr. Rafael Friday from Citi.
Speaker Change #369: Okay.
Speaker Change #370: I don't know if that's right.
Speaker Change #249: We are now opening the audio so you can ask your question life. Please go ahead Sir.
Speaker Change #370: Okay, Oh, sorry.
Speaker Change #370: Yes.
Speaker Change #371: Maybe two.
Speaker Change #371: Yeah.
Oh my goodness.
Hi, guys are without panel congrats on the strong results I have two questions. Here. One is related to how are you positioned poor or potentially the easing cycle micropump interest rates I saw that there was an increase.
Speaker Change #371: Okay.
Speaker Change #373: I'm going to try something different maybe you can talk to you maybe but I haven't heard you have abated.
Speaker Change #374: You're going to get the ball very notable.
Speaker Change #375: Did it work.
Speaker Change #376: Oh Wow.
Speaker Change #250: Of her own 3 billion has related to hedge.
Speaker Change #377: Oh really.
Speaker Change #378: Oh it was good to go.
Speaker Change #251: Interest rates or would like to understand a little bit off of the <unk>.
Speaker Change #378: Sorry.
Speaker Change #378: He's been like one of them.
Speaker Change #251: How these reflects your positioning and the second question is relates to expense.
Dan: Sure Dan.
Okay.
Dan: <unk>.
Speaker Change #252: They look or you had a huge declining E head count.
Dan: Oh.
Dan: Uh huh.
Oh my goodness.
Dan: Uh huh.
Speaker Change #253: Since the end of the left here, but when you look for personal expenses, specifically, we didn't see a reduction effect, we still see those expenses are going up so just like to understand if we both have the impact of the lower had coffee at it was I don't know their worst songs.
Dan: I'm going to need them.
Yeah.
Dan: Alright, almost got you really picked up.
Dan: So if we have any more to answer that maybe you didn't see.
Dan: Yeah.
Speaker Change #379: I do have a here nothing.
Speaker Change #380: Okay fine.
Speaker Change #380: Uh huh.
Speaker Change #254: Severance costs in the middle of this process or discipline, there's been a little bit how distributable. Thank you.
Ooh looks like matches that.
Speaker Change #380: Yeah.
Speaker Change #380: Yeah.
Speaker Change #380: Who is.
Speaker Change #255: Hi, Friday afternoon, I'll take that one but both of them so starting with the rates friend.
Speaker Change #380: Got it all right.
Speaker Change #381: Who do we decide do we really mean, maybe oh, what's that.
Speaker Change #256: And so that does to revise the strength of our balance sheet. We first we're highly levered to the C. D. One of 22, 8% and Additionally, we had a much higher funding base and while we have a long so in summary, while Larry D sensitive and we expect to benefit from a sleek error reduction.
Speaker Change #381: Oh here.
Speaker Change #381: Again, Oh, no not about yes.
Speaker Change #381: Yeah.
Well it might not happen. This time, we've learned a lot so oh.
Speaker Change #381: It does get run we like.
Speaker Change #382: All right.
Speaker Change #256: The impact the same more or less depending on the way that plays out but the impact for US is positive and we we see that as a one of the factors driving NIM expansion towards the second half.
Speaker Change #383: Oh, My Gosh, Oh nice job site.
Speaker Change #383: Yes.
Speaker Change #384: Oh, there you are.
Speaker Change #384: Yeah.
Speaker Change #385: Oh, yes, sorry.
Speaker Change #386: That's over here.
Speaker Change #386: Oh.
Speaker Change #257: In terms of EM.
Speaker Change #386: Okay.
Speaker Change #386: Yes.
Speaker Change #258: Personal loans grew a few dynamics playing out first we had it.
Speaker Change #386: That was great.
Speaker Change #386: Yeah.
Speaker Change #386: Yeah.
Speaker Change #259: Turn costs, so around half of the.
Speaker Change #386: Oh, well just fill in the mall.
Speaker Change #260: The reduction that we had in personnel.
Speaker Change #386: Okay.
Speaker Change #265: It was voluntary I had half plus an involuntary or company used.
Speaker Change #386: Yeah great.
Susan in your Master here, well, clearly I'm going to be the master and engine now just me so okay.
Speaker Change #261: And in Asia to that as we recorded positive profitability. We started provisioning. According to accounting rules, the long term incentive plans and compensation and for the for the teams for both things together.
Speaker Change #386: Uh huh.
Speaker Change #386: Great.
Speaker Change #387: One guy.
Speaker Change #388: Wait wait wait.
Speaker Change #389: Okay I got to tell you call our parents swoop soup or you got it right.
Speaker Change #390: You don't even more powers.
Speaker Change #262: Made them the.
Speaker Change #263: The number on persona expenses go up by around 9%.
Speaker Change #391: I mean, I did get rid of them. So did you died in the middle of that and plus.
Speaker Change #264: Okay. Thank you.
Speaker Change #392: The creatures.
Speaker Change #392: Yeah.
Speaker Change #393: Oh, yeah, yeah, but we could just also have to take it from you I mean I know the only give me like that they didn't need the money don't don't I'm can't drop I'm actually not letting me I'll give them to you like all right well you know what guys I say we got.
Speaker Change #266: The next question comes from Mr. Pedro Leduc from <unk> BBA.
Speaker Change #267: Now opening the audio so you can ask your question live. Please go ahead Sir.
Speaker Change #268: Thank you so much our first son, great job again on efficiency now if you could talk a little bit more on <unk>.
Speaker Change #392: Oh.
Matt: Hi, Matt.
Speaker Change #269: Cost savings from study found.
Speaker Change #270: Our growth projects will cost further core that you've come to optimize maybe some learnings of it.
Matt: [music].
Thanks.
Matt: Yes.
Speaker Change #271: Can start to draw some dynamics here for the next few quarters and not to worry modest maybe you pushed something forward to 2024 or most of it is really here to stay that'd be great.
Matt: Hum.
Matt: [laughter].
Matt:
Matt: Okay.
Speaker Change #272: Thank you.
Matt: Yeah.
Speaker Change #273: Thanks, Luke so M y.
Speaker Change #274: On expenses, we were quite an aggressive both in person and personnel. So.
Matt: Yeah.
Speaker Change #275: We closed the hearing for both 1000 at least last year, we used 300 head galvanize 400 in the second quarter now we expect to stay roughly at this level for some time, we want to see and therefore responding with limit of employees, we have some information about what they.
Matt: Yeah.
Matt: [noise].
Speaker Change #276: We can improve in the future, but for now I want to close at this level for some time, but he has already been an interesting are for that that the orientation has suggested pretty well on non personnel expenses and laser mix of variable expenses, many of which are a vendor for providers like Mastercard sales force.
Matt: Right.
Matt: Mhm.
Speaker Change #277: And in our U S et cetera, those are contracts that are not that fast to them to winning oshie eight or it takes sometime to alere operational Lewis My we're working with them as well and then there's a large collection of expenses that are being monitored by our expense Committee that meets every Friday morning, and individual but b the personally.
Yeah.
Matt:
[music].
Speaker Change #278: And that has and many improvements to having steel in the second half overall, if you remember we wanted to have at least 10 percentage points of operating leverage in the year with west going from 70 to 60, we're at 53, while we see a dental this ratio for the second half is to stay.
Matt: Yeah.
Matt:
Speaker Change #279: As close to a 50% as we can and so the majority of the of the improvement wasn't and we there is a few more percentage points to come but theyre not in the 900 basis points a magnitude that we had in the first one the second quarter.
Matt: Okay.
Matt: Okay.
Matt: [music].
Speaker Change #278: Yeah.
Speaker Change #278: Yeah.
Matt: Yeah.
Matt: Uh huh.
Matt: [music].
Speaker Change #280: The next question comes from MS Nihon Agarwalla from HSBC.
Speaker Change #281: Ma'am, we're now opening the audio so you can ask your questions live. Please go ahead.
Speaker Change #282: Hi, everyone. Thank you so much for taking my question congratulations on the good quarter.
Matt: Okay.
Speaker Change #283: Just quickly following up on the cost side.
Speaker Change #284: Regarding the cat <unk>.
Matt: [music].
Speaker Change #285: It's run down on a positive note and we saw a big reduction in the marketing expenses could you. Please elaborate on what Asia Pacific Niihau recapture that in the market again, and how sustainable do you see Robert in the coming quarters. Thank you so much.
Matt: Okay.
Matt: Yeah.
Matt: [music].
IME Hydrometra: IME Hydrometra speaking.
Matt: Yeah.
Matt: [music].
Speaker Change #287: Thank you for the comments are we do see.
Matt: Yeah.
Speaker Change #288: An opportunity to keep improving our marketing costs for acquisition.
Speaker Change #289: Only that we believed that the competition is this is as slowing down has that slowed down a lot and also not only regarding competition, but we have been improved in our powder form since then so new products products, new features and their form.
Matt: [music].
Matt: Okay.
Matt: Oh.
Speaker Change #290: We are gaining new clients with more engagement and new clients at a cheaper than we used to do before so the transfer CAC is very good.
Matt: [music].
Matt: Okay.
Speaker Change #291: We believe depths again, we don't think it will have.
Speaker Change #292: Fans of wealth platforms.
Matt: Oh.
Speaker Change #293: The winner of this digital banking business.
Speaker Change #293: Business and we believe that's where I have.
Speaker Change #293: And get a read capturing all of the benefits of this this this position that I just mentioned to you again the best App.
Matt: Yeah.
Matt: Yeah.
Matt: Hmm.
Speaker Change #295: The right pricing the right products and is this what is really driving our low cost and high engagement.
Matt:
Matt: Yes.
Speaker Change #294: Since the the mid <unk>.
Matt:
Speaker Change #294: Last year and this trend should continue going forward.
Matt: Yeah.
Matt: [music].
Speaker Change #296: The next question comes from Mr. Tito <unk> from Goldman Sachs.
Speaker Change #297: We are now opening the audio so you can ask your question lives.
Yeah.
Matt: Right.
Speaker Change #298: Please go ahead Sir.
Matt: Yeah.
Speaker Change #299: Hi, good afternoon, thanks for the call and taking my question and congrats on the strong results.
Speaker Change #300: Question I loan growth rate you know good growth this quarter, but just thinking about the outlook going forward with rates coming down you mentioned asset quality, perhaps maybe some positive signs there is there room to accelerate loan growth from here, which segments, which feel most comfortable.
Matt: Okay.
Matt: Yeah.
Speaker Change #301: Growing in and then.
Speaker Change #301: Just kind of related to that you know you know good improvement on the margin, but you know as you continue to grow the loan portfolio and if there's any more repricing.
Matt: Okay.
Matt: Okay.
Speaker Change #301: How high or how much more can the margin improve from here.
Matt: Okay.
Matt: Okay.
Matt: Okay.
Yeah.
Matt: Okay.
Speaker Change #302: I did though thanks for the question so on loan growth, we reported a five 4% and this quarter, which is an annualized <unk> of about 20% we think.
Matt: Yeah.
Matt: Okay.
Matt: Okay.
Matt: [music].
Matt: Yeah.
Speaker Change #303: At the very least we would like to have this level of growth if not more.
Matt: [noise].
Speaker Change #304: Actually like to how the second half.
Speaker Change #305: So sort of a 30% annualize them to blend 10% annualized.
Speaker Change #306: But we want to that very meaningful in terms of AAM use or capital allocation. So we have been prioritizing higher wheat products, and which are mainly but not exclusively M. G. T S loans and home equity within there, we're well positioned to them too.
Matt: Okay.
Matt: Okay.
Matt: Yeah.
To accelerate on place on payroll loans.
Speaker Change #307: In real estate loans as well as whether it is amiss.
Speaker Change #308: Increasing the rates will help on the demand side on the portability side.
Speaker Change #309: It is something that there was a tougher with the with assembly affecting <unk> 75, and then we have the scaling up of new products. No. We have lounged overdraft, we have loans buy now pay later and those upfronts are doing the baby steps, but we have.
Matt: Okay.
A great potential to penetrate our client base with him as well and we think that overall the.
Matt: Okay.
Speaker Change #310: These together with maintaining them the Cairo disciplined and will be a driving force for for the NIM to stay in the high single digit as we have reported this quarter.
Speaker Change #311: The conference call has now concluded.
Speaker Change #312: Centers IR area is at your disposal to answer any additional questions. Thank you for attending today's presentation have a good day.
Matt: [noise].
Matt: Yeah.
Matt: Yeah.
Matt: [noise].
Matt: Yeah.
Matt: Okay.
Matt: [noise].
Matt: Okay.
Matt: [noise].
Matt: Okay.
Matt: Yes.
Matt: [music].
Matt: Yes.
Matt: Okay.
Matt:
Matt: Yeah.
Matt: Oh.
Matt: Okay.
Okay.
Matt: Yeah.
Matt: Yeah.
Matt: [music].
Matt: Sure.
Matt: Okay.
Matt: Yes.
Matt: Okay.
Matt: Alright.
Matt: Yeah.
Matt: Oh.
Matt: Okay.
Matt: Okay.
Matt: Okay.
Matt: Yeah.
Matt: Yeah.
Matt: [noise].
Matt: Yeah.
Matt: Yes.
Matt: [noise].
Matt: Okay.
Matt: [noise].
Matt: Okay.
Matt: Okay.
Matt: Yeah.
Matt: [noise].
Matt: Yes.
Matt: [noise].
Matt: Yeah.
Matt: [noise].
Matt: Yeah.
Matt: [noise].
Matt: Yes.
Matt: Okay.
Matt: [noise].
Matt: Yes.
Matt: [noise].
Matt: Okay.
Matt: [noise].
Matt: Yeah.
Matt: [noise].
Matt: Yes.
Matt: Okay.
Matt: Okay.
Matt: [music].
Matt: Sure.
Matt: [music].
Matt: Yeah.
Matt: Yeah.
Matt: Okay.
Matt: [music].
Matt: Yeah.
Matt: Yeah.
Matt: Yeah.
Matt: Yeah.
Matt: Yeah.
Matt: Okay.
Matt: Okay.
Matt: Okay.
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Matt: Okay.
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Matt: Yeah.
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Matt: Yeah.
Matt: [noise].
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Matt: Yes.
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Matt: Mhm.
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Matt: [noise].