Q2 2024 Grupo Supervielle SA Earnings Call
Yeah.
Good morning, everyone and when it comes in in a second or third time, because before I think Scott is just coming out of Chinese pressure in their own earnings conference call you can be costly.
Alright.
Speaker Change: With me and she can only people.
Speaker Change: If you want to ask a question she has a whole bunch of patients they need to be classes.
Speaker Change: Oh from any device.
Speaker Change: It will not be able to talk to each other.
Yeah.
Speaker Change: Also please make sure your first.
Speaker Change: Okay.
Speaker Change: Some of you or you would be able to talk about what somebody or something like that.
Speaker Change: In the fall.
Speaker Change: Yeah, the Q&A box in the School District Court speaking do enjoy fund would be but it's going to be in our field.
Speaker Change: And maybe I know, but yeah, I want to find that stuff.
Speaker Change: Also joining us is having kind of a thing.
Speaker Change: Chairman of the board.
Speaker Change: I'm supposed to study at.
Speaker Change: Oh, it will be available for the Q&A session.
Speaker Change: As a reminder, today's call he was going to pay for whether it be steady state.
Speaker Change: Based on current expectations and beliefs are subject to sell wherever they are.
Speaker Change: Okay.
Speaker Change: I was sort of your feeling for what it will take the.
Speaker Change: Section of our earnings release.
Speaker Change: Our recent filings with the FTC, we assume no obligation to update the revise any forward looking statements to reflect new or changed events.
Speaker Change: On the ECL. Please go ahead.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Thank you Anna good morning, everyone.
Speaker Change: And for joining us today.
Speaker Change: Please turn to slide three.
Speaker Change: For an overview of our quarterly results our strategic options on Friday.
Speaker Change: Because out of jobs.
Speaker Change: We deployed another subject.
Speaker Change: Solid loan growth.
Speaker Change: Our market share gains.
Speaker Change: It's important to remain healthy with a record low NPL ratio and coverage ratio over time.
Speaker Change: As a percent.
Speaker Change: Our robust capitalization with or without.
Speaker Change: So.
Speaker Change: Cole.
The.
Speaker Change: The ratio of 21%.
Speaker Change: Positioning us well to continue driving shrugging.
Speaker Change:
Speaker Change: We reported return on equity over 10% for the quarter and twitching.
Since the first half.
Speaker Change: Just your basic needs declined during the quarter, reflecting lower spreads following the sharp.
Speaker Change: Drop in interest rates or in New York into Europe the growth.
Speaker Change: Income across all.
Speaker Change: Banking asset management are now online.
Speaker Change: Brokerage operations also contributed to the quarter's solid performance. Furthermore.
Speaker Change: Efforts to enhance operating efficiencies.
Speaker Change: And pilot are staying closely connected to our customers continued to yield positive.
Speaker Change: Results.
Speaker Change: Let me spend a few minutes discussing the key drivers of our performance during the quarter.
Speaker Change: Digital adoption continues to play a key role the Muslim retooled Cosmos.
Speaker Change: Digital customers now make up 65% of our total customer base.
Speaker Change: 6% of transactions completed through Oh.
Speaker Change: From 40.
Speaker Change: 42%, a year ago, indicating strong water adoption, while lowering our cost to serve.
Speaker Change: We've also made significant strides in our corporate and middle market customers.
Customer segments.
Speaker Change: With the loan book loans that go into sequentially.
Speaker Change: By an impressive 42% in terms of keep focused on supporting export oriented value chain.
Speaker Change: We closed the quarter with AR balances of side deposits are more among corporate guidance, leading to increased transaction volumes as we advance on becoming the primary bank.
Speaker Change: Yours.
Speaker Change: Leading online brokerage platform in Argentina contributed.
Speaker Change: 19% of total fees for all key metrics showing a strong performance at these customers doubled year over year to a record high of five.
Speaker Change: So 500000 506000 tons in July.
Speaker Change: Assets under management grew 23% sequentially in real terms, keeping the $1 billion milestone while sustaining solid transaction.
Speaker Change: Lastly, we are advancing.
Speaker Change: Running digital adoption and penetration in our insurance and asset management business.
Speaker Change: We have broadened our digital insurance offering for both customers and recent estimates, resulting in a strong.
Speaker Change: More than 95, you are two big growth in car insurance and asset management.
Speaker Change: Our first efforts have helped us increase our mindshare to 5%.
Speaker Change: Yes.
Speaker Change: And I listen to customer experience key factor behind our product and service initiatives and.
Speaker Change: We are very pleased that we continued to achieve increases N P S across all sectors.
Speaker Change: Turning to slide four.
Speaker Change: Key economic highlights for the quarter include the approval and personalization.
Speaker Change: The legs of the bodies.
Speaker Change: Along with ongoing deregulation effort, achieving a physical servers.
Speaker Change: Plus 0.4% as of June <unk>.
Speaker Change: They shouldn't easy faster than expected.
Speaker Change: <unk> 'twenty 'twenty four protection snow hundreds and 27%.
Speaker Change: If I'm trying to reach 207%.
Speaker Change: The Central Bank with deregulation efforts affiliate in Huntsville.
Speaker Change: Okay.
Speaker Change: While the overall macroeconomic environment is improving some areas stupid wide attention intuitive.
Speaker Change: Wouldn't the system the ability with the central banks 17 billion of increase and maintaining pump export for ongoing before.
Speaker Change: Under this new environment, the financial industry seen early improving signs of recovery as loan demand growth.
Speaker Change: For sure sustainable growth the next milestone is lifting.
Speaker Change: The foreign exchange restrictions.
Speaker Change: Our financial results today reflect the actions we have taken over the past few years between new product offerings.
Speaker Change: On efficiency measures together with all this established under the name <unk>.
Speaker Change: Yeah.
Speaker Change: As a result, we have a solid foundation in place and are well positioned to benefit.
Speaker Change: Because demand.
Speaker Change: It continues to recover.
Speaker Change: Now moving to slide five.
Speaker Change: We have been transitioning our observation away from Central Bank securities towards private sector. This is reflected in the increase in loan deposit ratio, which stood at 15, 9% at quarter end up from 32% at year end 2023.
Speaker Change: This reflects a drop in the shelf Central Bank securities over total assets from 28% from 40% at year end.
Speaker Change: While loans increased by 12 percentage points.
Speaker Change: 237.
Speaker Change: 77% up.
Speaker Change: These trends.
Speaker Change: As expected it to continue to do in the second half of the year in this context, we expect things to normalize to historical levels and.
Speaker Change: And if I grow.
Speaker Change: Overtime, even with lower yields as demand strengthens.
Speaker Change: As shown on slide six.
Speaker Change: Our strategic move towards company.
Speaker Change: Early in the recovery allow us to fund our loan portfolio.
Speaker Change: 36% sequentially in real terms. This resulted in total <unk>.
Speaker Change: Market share is 30 basis points sequentially.
Speaker Change: And 70 basis points year to date.
Speaker Change: Importantly, we gained share across all products.
Speaker Change: As of June as amusing corporate loans account for 65%, although the total loan portfolio, while retail loans.
Speaker Change: 35%.
Speaker Change: Before plateauing.
Speaker Change: We remain focused on servicing high potential ex U.
Speaker Change: Do you.
Speaker Change: Export oriented Petro change that leverage our exposure to high potential industry, including <unk>.
Speaker Change: Mining type of business.
And oil and gas.
Speaker Change: And with his own we're strategically focused on lowest risk into.
Speaker Change: Intuitive mortgages car loans payroll loans and credit cards.
Speaker Change: Looking ahead, we expect to continue scaling our mortgage loan product introduced earlier next year into Europe. We also planned to.
Speaker Change: To continue skating personal loans as well as Paolo leveraging our number two position in auto loan originations and some of them.
Speaker Change: We're well positioned in sectors that are leading the recovery.
Speaker Change: Focusing on the originated in short term loans to corporate and asset backed loans to individuals together with stringent credit policies, including.
Speaker Change: Portfolio limits according to the health of each industry to ensure and that's how much loan.
Industries discussed.
Speaker Change: This coupled with a.
Speaker Change: A strong capitalization position us well to continue.
Speaker Change: Driving <unk> growth as demand continues to recover.
Speaker Change: Now, let me turn the call to money out of please go ahead.
Speaker Change: Thank you, but the ACO.
Speaker Change: Hey, everyone.
Monette: Now, let's buy red thorough attention to slide seven let's take a deeper look a top performer for us that's helpful.
Speaker Change: I think I was quite.
Speaker Change: So looking towards your vessels achieved a 22% ROA.
Speaker Change: I'll take it moved up a bit.
Speaker Change: From 2061 vessels and every other rate of 10% in the first half of the year driven primarily by other places like that.
Speaker Change: Okay.
Speaker Change: That's like I said, I didn't count increased 9% driven by a higher yield.
Speaker Change: That's a portfolio and it was actually one of them has about 40 basis points cost of funds.
Speaker Change: All right.
Speaker Change: Great.
Speaker Change: In the second half of last year and declined sharply.
Speaker Change: But of course.
Right Mark.
Speaker Change: That's the income however declined 7% of people below that 272% accumulated inflation.
Speaker Change: Truck drive cost efficiencies contributed to a 9% year on year decline close.
Speaker Change: I wouldnt frame in more detail shortly.
Speaker Change: Furthermore, it's a ticket chip in loan or allocation towards.
Speaker Change: Corporate payroll customers.
Speaker Change: Let's do a 3% reduction in the lower dose the provincials he.
Speaker Change: He's supposed to do.
Speaker Change: Horizontal set at 255 per se.
Speaker Change: Places that estimates of hydro monetary assets in place. So that you can get periods alongside the 83% increase other than net losses attributable to higher turnover.
Speaker Change: Provisions created for strategic moves.
Speaker Change: Moving next to slide eight for the discussion of our loan portfolio.
Speaker Change: As Patricia noted we have continued to publish at a rapid pace towards collateral.
Speaker Change: Private sector loans.
Speaker Change: You can see.
Speaker Change: The Bar chart.
Speaker Change: At the same time, we have.
Speaker Change: Gained share across multiple products in both our commercial.
Speaker Change: Commercial and retail portfolios.
Speaker Change: With respect to waste paper prototypes of children that Friday over piped up.
Speaker Change: Corporate loans.
Speaker Change: Approximately two thirds of our total avoid it.
Speaker Change: So its portfolio short term until we know it panned out.
Speaker Change: Quite frankly, our share of the total corporate book by two percentage points.
Speaker Change: 554% followed by Overdrafts.
Speaker Change: 22% and foreign trade zone.
Speaker Change: 18%.
Speaker Change: Yeah.
Speaker Change: Retail loans, but.
Speaker Change: But it is hard.
At 432% of the pool, followed by mortgages.
Speaker Change: Knows.
Speaker Change: 27 of our southeast.
Speaker Change: Cargos at 14% of the total retail.
Speaker Change: What are we rank second carload okay.
As shown on slide nine.
Speaker Change: Our total deposit base remains stable sequentially.
Speaker Change: In real terms, although the mix changes like.
Speaker Change: Okay.
Speaker Change: It increased 4% above industry trends with that.
Speaker Change: <unk> share of our total deposits.
Speaker Change: Great for one five points.
Speaker Change: As shown on the talk to the right.
Speaker Change: That's what deposits posted a Atlantic when its a crime.
Speaker Change: But with a greater mix of lower cost savings and checking account deposits.
Speaker Change: Was it five days.
Speaker Change: Reflecting asset liability management following the sharp drop in the monetary policy interest effect.
Speaker Change: Moving next to slide 10.
Speaker Change: As anticipated in our prior calls lower in place for over a year from peso denominated government securities and loans.
And it comes at lower rates.
Speaker Change: We don't put any threshold that you still got low besides just 43% for the crime.
Speaker Change: Net financial income was 203 for your business.
Speaker Change: The sharp decrease in interest rates I know what volume of interest bearing liabilities drove 35 point reduction quarter over quarter.
Speaker Change: Five years ago.
Speaker Change: Also recall that post acute care for higher yields on government securities.
Speaker Change: Just for people inflation rate.
Speaker Change: And generally.
Moving on to slide 11.
Speaker Change: Expenses declined 2% EMEA at eight.
Speaker Change: Two questions.
Primarily due to the efficiencies in personnel.
Speaker Change: Yeah.
Speaker Change: So I think cost as we've talked to at all times of reducing our costs.
Speaker Change: This appointment that performance was partly offset by increasing increased promotional activity, which will strengthen our position in a more dynamic environment.
Speaker Change: Efficiency improved suggest the nobles two 1% from almost 63% to go.
Speaker Change: Or is it going to basis. However, the efficiency ratio increased from 34% plus quarter, which benefited from a nonrecurring gain two peso about episodic and effective.
Speaker Change: Finally I E.
Speaker Change: Turning to slide 12.
Speaker Change: Last quarter.
Speaker Change: Tier one ratio of slightly over one.
Speaker Change: Mm 390 basis points sequentially.
Speaker Change: This performance reflects growth in risk weighted assets.
Speaker Change: From a loan growth in the quarter together with 20 video of a vessel.
I meant maybe naperville ACO vessel Chesterfield shape during the quarter.
Speaker Change: This was partially compensated by kept a gradual tick up in Q2 for us.
Speaker Change: Moving on to slide 13.
Speaker Change: Current contacts that was testing a respect for 'twenty two.
Speaker Change: My follow ups.
Speaker Change: I'm quite as demand continues to recover we now expect this alone.
Speaker Change: To sum up about 40% is real test with retail loans, increasing their share of total enrollment.
Speaker Change: Deposits are expected to continue growing above inflation, although at a faster pace with solar and it makes the deposits expected to gain share of total pardon me.
Rachel: It'll be a Rachel.
Speaker Change: It converts to levels at night with higher price environment.
Speaker Change: Probably the historical no reported this quarter.
Speaker Change: Net cost of risk.
Speaker Change: Tony.
Speaker Change: But in places, where we see them. We now expect expenses to decline in real terms as we continue to see the benefits from efficiency.
Speaker Change: It's kind of enhance coach of a branch.
Speaker Change: We maintain our expectation for the year at approximately 16%.
Speaker Change: It's a feature as we continued to shift to private sector rose from public Securities. We expect to see out of nowhere. It means pressure isn't that really the third quarter.
Absolutely.
Loan growth accelerates, we anticipate closing the year with a tier one ratio between 17% to 20%.
Speaker Change: Back to our previous expectation of 20% to 25%.
Speaker Change: Yeah, that's our prepared remarks.
Speaker Change: We are ready to open the floor for questions and other fees go ahead.
Speaker Change: Okay.
Speaker Change: Thank you Mike Yeah, No I think the timing of when they come back to the <unk> session.
Speaker Change: As a reminder, net but let's say you need to be connected to a desktop.
Speaker Change: What kind of expense ratio.
Tank.
Speaker Change: Cards.
Speaker Change: So yeah. Thank you I know.
Speaker Change: We don't touch.
Speaker Change: That's one question left.
Speaker Change: Yeah one.
Speaker Change: One moment please.
Speaker Change: Alright.
Speaker Change: <unk>.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Our strengths lie in terms comes from Brian Nowadays.
Brian: Hello, Good morning, Brian.
Brian: Yeah.
Brian: Hi, Tim Good morning, and thank you for the opportunity to ask questions here, but.
Speaker Change: How about question on your turnover tax situation right because you made a.
Speaker Change: Provision there I think it's 33 billion.
Speaker Change: And I wanted to ask you, how how should I mean, you're you're only expecting to do.
Speaker Change: To be paying going forward taxes, I just want to know.
Speaker Change: When would you have the final.
Speaker Change: Decision on these I need the provision needs to be adjusted by inflation going forward and this will be updated sequentially on your income statements.
Speaker Change: How should we think about this going forward. Thank you.
Speaker Change: The other piece.
Ray: Yes, Hello, Ray doesn't take you up with your question.
Ray: Regarding exploration.
Speaker Change: It's correctly the amount of 33 vessels.
Speaker Change: Sorry about that.
Speaker Change: That's the provision, but we prefer to maintain them.
Speaker Change:
Speaker Change: Because that is a.
Speaker Change: Ill turn it over.
Speaker Change: That's C G products.
Speaker Change: We're tired.
Speaker Change: On revenues are derived from Central Bank Securities.
Speaker Change: At least for the first place.
Speaker Change: And for my Repos.
Speaker Change: And then also.
Speaker Change: So those are a lot of provinces I think my wife seems to your website.
Speaker Change: And then the third.
Speaker Change: And it's important to highlight also that now ask us at the Central Bank.
Speaker Change: Each will delete them.
Speaker Change: So even a reverse now we migrate that would use.
Speaker Change: The Treasury notes short time with virtually no.
Speaker Change: We are not a green.
Speaker Change: Okay.
Speaker Change: That treasury notes are no doubt they are exempt from from defense.
So.
Speaker Change: That's known in North Texas.
Speaker Change: These are short term securities.
Speaker Change: Now with regard to the Central Bank.
Speaker Change: Deferred revenues.
Speaker Change: Last year.
Speaker Change: E R.
Speaker Change:
Speaker Change: We.
Speaker Change: Made a we made a claim with yourself.
Speaker Change: Just as it was also made by the other banks are willing to fight the association and also.
Speaker Change: And there was a few months.
Speaker Change: The Central Bank.
With that Ah.
Speaker Change: Supreme Court of Justice.
Speaker Change: Because it does.
Speaker Change: I'll take the morning worked out a bunch of different provinces and not interfere.
Speaker Change: But.
Speaker Change: So it's the process can be very long.
Speaker Change: The Supreme Court Hudson.
Speaker Change: Hasn't made any pronouncements it yet and we know these processes.
Speaker Change: They can take them.
Speaker Change: No.
Speaker Change: Finally, social.
Speaker Change: Related to that.
Speaker Change: Between this year when a virus that's when a government.
Speaker Change: Funds from taxes.
Speaker Change: The CDO Cyrus received in the Cobra participation over the other provinces and government.
Speaker Change: Yeah.
Speaker Change: From from.
Speaker Change: Reduce the share that you would've had.
Speaker Change: It seems that's one.
Speaker Change #100: They are.
Speaker Change: And major overhauls.
Speaker Change: Most of the stuff.
Speaker Change: So when the Supreme Court.
Speaker Change: It makes it a seasonal that's my room, maybe then they it would make a decision on these tools. So we are.
Speaker Change: We are positive on the outflow.
Speaker Change: Regardless of these skus.
Speaker Change #101: Although we have this provision to be concerned about.
Speaker Change #102: Right yes.
Speaker Change #103: The last part of your question is adjusted by inflation.
Speaker Change #103: Direct industry inflation back end royalties and taken on interest rates. So.
Speaker Change #103: That's what they did that.
Speaker Change #103: Yeah.
Speaker Change #103: We need to we would include it.
The interest rate.
Speaker Change #104: Perfect Super clear if I may just a quick follow up on on capital right. Because we have data as of May with the central Bank.
Speaker Change #104: And if I'm doing the calculation here in.
Speaker Change #105: June was negative right in terms of net income or or close to being there.
Speaker Change #106: I wanted to ask him capital because.
Speaker Change #107: Quarter over quarter, you're consuming and quite some beeps right sizing overly deep snow your guidance suggests.
Speaker Change #108: Other consumption because as you mentioned you were increasing the risk weighted assets just wanted to maybe open. This question in two parts first.
Speaker Change #109: And should we expect the third quarter to be and maybe negative in terms of net income contribution and then the second one is in terms of growth in risk weighted assets.
Speaker Change #110: What type of loans are you thinking on expanding.
Speaker Change #111: You see that be more on the heavy part, which is you know higher risk weight, where I'll be more balanced between <unk> and.
Speaker Change #111: I dunno mortgages and consumer just to just to think about this going forward. Thank you.
Speaker Change #111: Okay.
Speaker Change #111: Oh, Okay, yes first.
Speaker Change #111: Yeah.
Speaker Change #112: The company said tell me so it was positive.
Speaker Change #113: For the CET one ratio.
Speaker Change #112: Yeah.
Speaker Change #112: 10% positive earnings quarter, we either.
Speaker Change #112: Does it bother us at all.
Speaker Change #112: To work.
Speaker Change #112: The loan portfolio through.
Speaker Change #112: 40 or.
Speaker Change #112: I think the first time in real time with just one Florida of course in that case.
Speaker Change #112: Okay.
Speaker Change #112: That's it is higher and the capital that we haven't.
Speaker Change #114: And so that's why we are.
Speaker Change #114: You can see the consumption.
Speaker Change #115: The 90 basis points.
Speaker Change #115: One ratio.
Speaker Change #115: Looking forward as.
Speaker Change #115: As we continue to see broad in real time as well.
Speaker Change #115: We just started also to use that kept US now we're in the middle of the transition we are.
Speaker Change #115: Oh.
Speaker Change #115: Our early.
Speaker Change #116: With 10.
Speaker Change #116: Two a 15 person here, but kind of a problem from higher Roe.
Speaker Change #116: Are we in the first quarter.
Speaker Change #116: Most of the advertising.
Speaker Change #116: Each of them are coming.
Speaker Change #117: Having from Bureau.
Speaker Change #117: Hey.
Speaker Change #117: We would have it already know our capital numbers.
Speaker Change #117: And then you will start to.
Speaker Change #118: C P.
Speaker Change #118: P R.
Speaker Change #118: Risk weighted assets growing.
Speaker Change #118: That piece of it.
Speaker Change #118: Yeah for that.
Speaker Change #119: Florida, maybe it would be lower.
Speaker Change #119: Order, which was extremely high.
Speaker Change #119: Exciting.
Speaker Change #119: The interest rate was pretty sharp.
Speaker Change #119: We will continue to see.
Speaker Change #119: Clothing.
Speaker Change #119: The third and fourth quarter, that's why now we expect.
Speaker Change #119: Right.
Speaker Change #120: 20% of what you said nowhere.
Speaker Change #120: Nowhere lever, where we now are I'm regarding that type.
Speaker Change #120: So where we are planning to expand them.
Speaker Change #120: Ah.
Speaker Change #120: Through Q1 that didn't didn't wardrobe for being able to take on that one.
Speaker Change #120: The.
Speaker Change #121: So it was a strong Roe.
We saw in the second quarter was primarily from corporates and on their own demand from particularly from.
Speaker Change #121: The baidu chain of dynamic export oriented dynamic industries, such as oil and gas.
Speaker Change #122: I agree.
Speaker Change #122: And.
Speaker Change #123: The auto show.
Speaker Change #123: A rebound and 10.
Speaker Change #123: $10 into these mezz.
Speaker Change #123: Loans from unknowns, particularly kind of loans and personal loans for.
Speaker Change #124: Rich I read on payroll loans.
Speaker Change #124: However.
Speaker Change #125: We believe that the two thirds of the loan book is today.
Speaker Change #125: Corporate and one each in.
Speaker Change #126: So this means that with the change of monetary policy and the decrease in interest rates the means came down.
Speaker Change #126: Very strong.
Speaker Change #126: Yeah.
Speaker Change #126: In the quarter.
Speaker Change #126: And we believe it can continue however, the mix of homes will start to change and by the end of the Euro we expect.
Speaker Change #127: These real estate.
Speaker Change #127: It will start it will be a pickup of loan demand and therefore.
Speaker Change #128: There will be a lot happens between.
Speaker Change #129: Corporate loans and.
Speaker Change #129: And individual loans are around 50% each and these will help us to achieve our historical median level of 20%. So what is the way I'm looking forward to 2025.
Speaker Change #129: As pointed to a bunch of it is going to be much stronger in terms of revenue.
Speaker Change #129: Revenue generation.
Speaker Change #129: Perfect Super clear, thank you very much.
Speaker Change #129: Yeah.
Speaker Change #130: Thank you and I and our next question comes from Anthony spelled out no no bumps.
Speaker Change #130:
Speaker Change #131: Good morning. Good morning, Thank you hi, good morning, Patricio Marianne Moe and Alejandro.
Anthony: My first question is if you can have a rate a little bit more on.
Speaker Change #133: On the on doing positions the bank's executed with the Central Bank.
Speaker Change #134: Related to the boots.
Speaker Change #134: And what are the implications to the P&L and the balance sheet.
Speaker Change #135: And also on the other hand.
Speaker Change #135: I think there is a.
Speaker Change #135: From a position of the Central Bank.
Speaker Change #136: We drive boss. So I will also want to hear from you the timeline and the implications from the rent bumps.
Speaker Change #136: Yeah.
That's all thank you for your question.
Speaker Change #137: Regarding the challenges we had on part of our.
Speaker Change #136: Treasury notes portfolio.
Speaker Change #136: Because as of June 30 was around.
Speaker Change #136: Sure.
Speaker Change #136: 300 easier.
Speaker Change #138: You mean inflation linked bonds.
Speaker Change #138: Orman.
Speaker Change #138: Out of those three type of medium.
Speaker Change #138: So long.
Speaker Change #138: Maybe between 15% to 50%.
Speaker Change #139: He's got a 50% we have withheld shows remember that this adult children, even gone to you Brett.
Speaker Change #139: Liquidity.
Speaker Change #139: Hum.
Speaker Change #139: As you know, there's a lot of I.
Speaker Change #139: Close to.
Speaker Change #140: Bye bye.
Speaker Change #140: The top shows.
Speaker Change #140: Bryce.
Speaker Change #140: Are we at most of the time with you.
Speaker Change #140: Great.
Speaker Change #140: Are those little shows.
Speaker Change #140: Robotics.
Speaker Change #141: Out of this portfolio.
Speaker Change #140:
Speaker Change #140: Maturities of disposing wherever between at the end of year.
Speaker Change #140: We are now to the end of 2027.
Speaker Change #140: Most of the current ratio was.
Speaker Change #140: 526.
Speaker Change #142: But also these answers.
Speaker Change #143: Our first of all we're unhedged.
Speaker Change #143: Inflations.
Holding them to maturity, that's why part of our investment portfolio.
Speaker Change #143: So that's why we agreed to settle it.
Speaker Change #144: He goes.
Speaker Change #145: It wasn't.
Speaker Change #146: Our employee.
Speaker Change #147: We were winning.
Speaker Change #146: The short term.
Speaker Change #148: I mean, any I come back.
Speaker Change #148: We also.
Speaker Change #148: Believe but.
Speaker Change #148: So.
Speaker Change #149: So many government had a strong focus.
Speaker Change #150: Some consolidation and therefore.
Holding these treasury securities.
Speaker Change #151: With these policies are.
Speaker Change #152: I think it's we are we are at ease and.
Speaker Change #152: Comfortable and we believe that.
Speaker Change #152: This is gonna be reflected price physical governments.
Speaker Change #152: Governments choice.
Speaker Change #153: And yes, that's yes, yes.
Speaker Change #154: Oh, I'm, sorry, a little skeptical or repost exactly.
Speaker Change #154: And what potential fed.
Speaker Change #154: The government.
Speaker Change #155: Yes, absolutely.
Speaker Change #155: And from the Central Bank.
Speaker Change #155: The treasury, where they want to achieve.
Speaker Change #156: He says I have restaurants.
Speaker Change #156: By them.
Speaker Change #156: So that's it.
Speaker Change #158: He said the breakout room.
Speaker Change #158: It shows that greater compromise.
Speaker Change #158: For the government to.
Karl Duluth: Yeah Karl Duluth.
Speaker Change #160: Firstly I don't go for the interest you told them that I'm not being paid by.
Speaker Change #160: Creating a what if you kind of left.
Speaker Change #160: So.
Speaker Change #161: These contracts are with this government, we think that the risk from a reversal of the Starbucks.
Speaker Change #161: Lastly, just a short term notes.
Speaker Change #161: Got it for free.
Speaker Change #161: I think that the risk is very similar and also equally he's always guarantee.
Speaker Change #161: For a buck so.
Speaker Change #161: Basically.
Speaker Change #161: Yeah.
Speaker Change #162: Regarding this point.
Speaker Change #163: Okay no perfect understood. Thank you so much and then I would like to add a second question are these one is in terms of the.
Speaker Change #164: The loan demand, which seems to be finally materialize because of lower inflation lower rates.
Speaker Change #165: So can collaborating which are the industries you were starting to see these clear demand.
Speaker Change #166: And then just a follow up in terms of your ROE guidance.
Speaker Change #167: 10% for this year, so he's making the numbers this would imply a British roe's below that 10% in the second half.
Speaker Change #168: Is that correct and I think but you just said that you want to have a sustainable ROE in the medium term of around 20%. So I just wanted to double check those C U E.
Speaker Change #169: You want to ask.
Speaker Change #170: Second box there.
Speaker Change #171: Good luck.
Speaker Change #171: Okay.
Speaker Change #172: Let me answer the question regarding our OE.
Speaker Change #173: Got it.
That is correct.
Speaker Change #174: Expect a lower Roe.
Speaker Change #174: 20%.
Speaker Change #174: Yeah.
Speaker Change #174: Now we are we would be.
Speaker Change #174: You don't see them separately.
Speaker Change #175: So I hope you're right, we're expecting more generally.
Speaker Change #175: Fourth quarter, just because we already leased or initial sports right.
Speaker Change #176: Have drugs.
Speaker Change #176: And these are reduced we feel kind of like a station or have you reduced very bus.
Speaker Change #176: Yoga.
Speaker Change #177: High inflation.
Speaker Change #178: Loan demand has weakened sharply from historical lows at scale.
Speaker Change #177: Okay.
Speaker Change #177: And no it'll be modest.
Speaker Change #177: Special that's supposed to GDP.
Speaker Change #177: So.
Speaker Change #177: The next two quarters.
Speaker Change #177: We would be very challenging with are always part of it is only 10% that's what we expect for.
Speaker Change #177: The other one where we have a tool.
Speaker Change #179: Uh huh.
Speaker Change #179: So when that.
Speaker Change #179: Right.
Speaker Change #179: Presentation from office.
Speaker Change #179: This central.
Speaker Change #179: Central Bank interest rate securities to loans are within that no growth and we also are rolling out towards the short term.
Speaker Change #179: But also from either portfolio, where greenbrier when it rolls out.
Speaker Change #180: Oh real car.
Speaker Change #181: We have a higher rules.
Speaker Change #181: We focus on growing on higher means photos when it started to recover ROE in return.
Speaker Change #182: Sportswear for Narwhal.
Speaker Change #182: 16%, but increasingly there.
Speaker Change #182: Longer term.
Speaker Change #182: N.
Speaker Change #183: Costar Shadow.
Speaker Change #183: Returns and also when it got we'll grow our brokerage Avi.
Speaker Change #183: Across all the segments.
Speaker Change #184: I mean I think exactly.
Speaker Change #185: Do you want to continue with Shaw of me so good morning.
Speaker Change #185:
Speaker Change #186: Industry has been the cause.
Speaker Change #187: Leading E.
Speaker Change #187: Leading the credit demand as you know, our oil and gas mining and accurate.
Speaker Change #187: But more recently, we've seen also an increase in durables.
Speaker Change #187: And.
Speaker Change #187: More consistently and construction.
Speaker Change #187: And sometimes it <unk>.
Trailing after lagging.
Speaker Change #187: These teachers, but he's also going to pick up as soon as you consolidate.
Speaker Change #187: The purchasing power.
Speaker Change #187: Salaries start going down a little bit above inflation.
Speaker Change #188: It's interesting to note that.
Speaker Change #188: Because in many of these industries.
Speaker Change #188: Utilization levels were very low the reaction is very quick because it has to do with more working capital.
Speaker Change #188: Our major investments and pick up.
Speaker Change #188: So this is why the reaction has been very quickly and it's picking up.
Speaker Change #188: It constitutes consistent and.
Speaker Change #188: And at the same time.
Speaker Change #188: On the funding side, what we see is that besides deposits have been going up because the activity level is greater typically sight deposits are a function of the working capital and the level of activity and because inflation has been going down.
Speaker Change #188: You have greater levels of site deposits, which was kind of.
Speaker Change #188: Even further moving forward in the cost of funds.
Speaker Change #188: No perfect. Thank you so much potential, but you don't know Alejandro.
Thank you Michael Thank you, let me I was.
Speaker Change #188: Next.
Michelle: Questions comes now Alamo, Michelle faced with they can be.
Speaker Change #190: I know what the morning catalogs.
Speaker Change #191: Hello, and good morning.
Speaker Change #192: Yeah Yeah.
Speaker Change #193: Well congratulations on on your loan growth you promised that he will be replacing.
Speaker Change #193: Replacement.
Speaker Change #193: Is this bedrooms and youre doing it.
Speaker Change #193: Yeah.
Speaker Change #194: And so I kind of a couple of questions. The first one can you confirm that the treasury securities.
Speaker Change #195: You said you have no <unk>.
Speaker Change #196: Waiting that's what you'll be assisted new Central Bank Securities pore pressure is that remains the same restaurant, you'll have not consumed any capital. Although obviously you have taken a bit more risks that come with the government.
Frank: This is Frank.
Speaker Change #198: And secondly can you tell us how the mortgage very soon is working because I know initially there were some problems you said, okay. Now can you and you already made would not normally be.
Speaker Change #198: Okay.
Speaker Change #199: Hello, Thank you for your questions.
Speaker Change #198:
Speaker Change #200: Regarding the U S and Burbank century, she already knows.
Speaker Change #200: No.
Speaker Change #201: No credit risk weighted assets.
Speaker Change #201: The calibration of that.
Speaker Change #201: Please wake up is to remember that.
Craig: Craig It's played out this accounted for approximately 70% of our total that's it so.
Speaker Change #204: They they don't have any any kept kind of requirement.
Speaker Change #204: Like luxury goods.
Speaker Change #206: To at least 30% of rational market.
Speaker Change #206: That kind of time requirement.
Speaker Change #206:
Speaker Change #206: Then.
Speaker Change #206: We got him or did you just said about the.
Speaker Change #207: What does that mean.
Speaker Change #207: That's correct, but then the.
Speaker Change #207: Market risk and operational risk that also applied to the central bank right. So that passing task alright, yes, yes.
Speaker Change #208: In terms of customer would come in.
Speaker Change #208: There are no differences between central bank at an interest rate.
Speaker Change #208: Okay.
Speaker Change #209: Okay, Alright, so you wouldnt made up by going from one to the other I mean, I know, what you're saying that the government is.
Speaker Change #210: It's the same epicentre amount, but actually historically, it's been quite different you are taking more risk.
Speaker Change #211: I mean would you.
Speaker Change #211: Finally, youre, putting your capital to work, but you have taken some arithmetic, meaning government securities.
Speaker Change #211: Yeah.
Speaker Change #212: What are the risks from the periphery.
You can go to waste.
Speaker Change #213: Same episodes are bang on doors.
Speaker Change #214: I wouldn't call that within.
Speaker Change #215: He's been in the past.
With what it was a close either.
Speaker Change #216: Differentiation, we're very cautious to go from the Central bank to the Treasury and Nicaragua.
Speaker Change #215: Yeah.
Speaker Change #215: Okay.
Speaker Change #217: M D because.
Speaker Change #217: Remember that although.
Speaker Change #217: That's it.
Speaker Change #217: Our treasury notes.
Speaker Change #217: We need to guarantee.
Speaker Change #217: From the temporary box hopefully that's amazing.
Speaker Change #217: But also.
Sean: Alex This is Sean.
Alex: Thank you.
Speaker Change #220: They can be complex and I remember that.
Speaker Change #220: We have.
Even though inflation is going down we've just seen the high inflation countries.
Speaker Change #220: And hopefully it's going to go to go down steel.
Speaker Change #220: So we hold these treasuries.
Speaker Change #220: And with that purpose.
Speaker Change #220: To make sure that.
Speaker Change #220: The D R.
Speaker Change #220: Okay.
Okay.
Speaker Change #220: Yeah.
Speaker Change #221: Good morning, Gabon regarding your question on mortgages, we are originated.
Speaker Change #222: There's a huge refresh demand as you know and so part of it was the first Friday in fact.
Speaker Change #222: To come out with a product offering on mortgages just to give you a little bit of color there and right now our average ticket size is up around 50000 officials dollars.
Speaker Change #222: And and and it's growing very consistently.
Key to sustain this growth on a longer term is.
Speaker Change #222: Regulation regarding a securitization, which is still pending and that's one of the things that we're working on.
Speaker Change #222: To be able to make sure that we could continue to grow.
Speaker Change #222: And also manage your exposure to mortgages and the consumption of capital that they would require.
Speaker Change #222: Thank you Alejandro and again these are old loans lift because you anticipate that unit.
Speaker Change #223: You said your average is 50000, so how much does not go into that how much are you already 19.
Speaker Change #223: Vermont weekend disappointed that.
Speaker Change #224: At this point levels are very low because we have a huge pipeline and there are many bureaucratic steps that have to take place and you have to have note. The Republic. It's you have to have also.
Speaker Change #224: The right valuation and this is a machine that has stopped for around four years and it's starting to move out again, but right now we.
We are converting these initial.
Speaker Change #224: Requests for information and we are growing at a rate of roughly more recently that sort of range of roughly 50 mortgages.
Speaker Change #224: But this should be going up pretty soon.
Speaker Change #225: Okay. So at this point.
Speaker Change #226: My point is I mean, you see material to your balance sheet, but there's just nothing at the moment.
Is it starting to move but remember we carry mortgages from the previous period and that's why when you look at our asset composition. The representation of mortgages is higher but you are right about the vintage the new vintage of mortgages is right now very small that is correct.
Speaker Change #227: Thank you and if I can ask one last question I know that in regards to the view that.
Speaker Change #227: Kevin.
Economic policies.
Kevin: Being able to but I imagine you have to have a lot of testing what would have been if there has to be another large valuation, let's say 30 or.
Kevin: 40% into coverage.
Okay.
Kevin: Yes.
Kevin: See if it as you put yourself cargos that smell of a director with debt.
Speaker Change #229: Our ministry of economy, all of a sudden for bankruptcy economy, but in a hypothetical case that extensive evaluation will take place.
Speaker Change #229: We'll see a significant pass through or that'd be valuation input inflation, you would probably have and that would create.
Speaker Change #230: I see.
Speaker Change #231: Areas of adjustments and relative prices.
Speaker Change #231: So you would probably also see an increase in rates following suit.
Speaker Change #231: And that will have an impact on the activity.
Speaker Change #231: But as I said.
Speaker Change #231: Central Bank and.
Speaker Change #231: Misread.
Speaker Change #231: So everything from voice that situations.
Speaker Change #232: And do you expect interest rates will remain at the level they are.
Speaker Change #232: Today or to go to the real rates and the second question.
Speaker Change #233: My My view is that there are several.
Speaker Change #234: And credits.
Do you model that.
Speaker Change #234: Our first thing for rates to go up.
Speaker Change #234: The same time, you've seen a problem being in effect.
Uh huh.
The Argentine states.
Speaker Change #234: With approvals.
Speaker Change #234: From.
Speaker Change #234: The financial sector. So is it going to be a combination of treating this pressure because of tighter a man.
Speaker Change #234: On a trade policy and the crowd again effect as the entrepreneur space.
Speaker Change #234: It creates less the models for credit in the market.
Speaker Change #234: But again the biggest pay rates to go up from the current level so to stay with that.
Speaker Change #235: I would expect there's a bit of I guess right now, but they will go up.
Speaker Change #235: In real terms.
Speaker Change #236: Thanks, so much.
Speaker Change #237: Thank you Cosmos.
Speaker Change #238: Another time, you've left some money on that sense with that.
Speaker Change #239: Maybe not a lot.
Speaker Change #239: Kind of.
Speaker Change #240: Thank goodness.
Speaker Change #239: Yeah.
Speaker Change #239: Martina.
Speaker Change #241: Yeah, I'm, sorry, we lost you I'm sorry.
Speaker Change #241: Hi.
Speaker Change #241: Can you hear me now yeah.
Speaker Change #241: Okay.
Speaker Change #242: So in the second quarter recently observed that significantly umbrella and weeks blend deposits, which led to an increase in the loan to deposit ratio. How do you expect deposit still evolving the second half of the yen and one patents do you see as the main drivers for our growth.
Speaker Change #242: Okay.
Speaker Change #242: Yeah, Hey, Ryan Yeah. Thank you for your Fletcher.
Speaker Change #243: For for the upcoming quarters.
Speaker Change #244: We see deposits growing reaffirms.
Speaker Change #244: Although we see loans growing at that time.
Speaker Change #244: Okay.
Speaker Change #246: So that's the way it is.
Speaker Change #246: That would make that loan to deposit ratio to increase by week, both sides of the equation growing.
Regarding the sources.
Speaker Change #246: All of this growth.
Speaker Change #246: Right.
Speaker Change #247: We expect it to.
Speaker Change #247: Growth from all the protocols you need less corporation also as activity rebounds.
Speaker Change #247: Russ.
Speaker Change #247: All sectors.
Speaker Change #248: Remember now that you have seen is for recovering activity bodies.
Barry: Barry are you friends across sectors.
Speaker Change #250: From a functionality.
Speaker Change #251: With that brief.
Speaker Change #251: Chris.
Speaker Change #252: We obviously increase.
Chris: Uh huh.
Chris: From current accounts and savings accounts.
Chris: We're also working on several strategic.
Speaker Change #254: So did you really have to I'll start.
Audit scope.
Speaker Change #254: Yeah, I would say that I didn't know that because that's going to be a strong focus.
Speaker Change #255: Nah six seven projects.
Speaker Change #256: Pardon me.
Speaker Change #256: Basically.
Speaker Change #257: Oh, well, we expect that.
Speaker Change #257: We're on track.
Speaker Change #257: Time deposits because when it comes down naturally shaving starts to grow in the country, both can be kind of accounts savings accounts.
Speaker Change #257: So.
Speaker Change #257: We are pretty well.
Speaker Change #258: All of us to come back.
Speaker Change #258: It's a very healthy.
Speaker Change #258: Oh I see.
Speaker Change #259: Right. Thank you very much.
Speaker Change #260: Thank you Mehdi M L.
my Mommy: Our next question comes from my Mommy now came from all of them.
Adam: Good morning, Adam.
Adam: Hello, Good morning, everyone.
Speaker Change #263: My questions have been asked for.
Speaker Change #264: Follow up on asset quality.
Speaker Change #265: They have very strong corporate shifting around or above 200%. So as the environment normalizes, what would be a rational level coverage to converge to and also what would be like.
Speaker Change #266: <unk> NPL them to assume going forward I know today is very behaved, but you scaled portfolio.
Speaker Change #266: Do you expect it to trend.
Speaker Change #268: I didn't know if you want.
Speaker Change #268: Sure. Thank.
Speaker Change #268: Thank you Armando for your questions.
Speaker Change #268: Jonathan.
Speaker Change #270: Regarding our coverage is through that knowing he's very excited to have all 300%.
Speaker Change #270: Because.
Speaker Change #271: E M. P. L ratio as a result, when you have touched lows.
Alicia: Yes Alicia.
Alicia: A lot of different performing portfolio, because it looks like from the smallest.
Alicia: Fortunately.
Speaker Change #273: That's what probably show the performing portfolio.
Speaker Change #273: That's creating that creates a very high to cooperate.
Speaker Change #273: Yes, so when whenever he is present government because that will be a growing maybe.
Speaker Change #274: Oh great.
Speaker Change #274: Yes.
Speaker Change #275: And the pace of the growth in nominal terms.
Speaker Change #275: In real terms and also that they would say yes.
Speaker Change #276: When they return to normal or is it let's say a 2% will depend on the mix of the portfolio.
Speaker Change #276: He has returned to a person and that's collaborations.
Speaker Change #276: It will go down.
Speaker Change #277: Uh huh.
Speaker Change #278: Maybe I can give you a very wide range, but just do you have any true up.
Speaker Change #277: Great.
Speaker Change #277: Thanks.
Speaker Change #277: B we continue.
Speaker Change #277: Continue to see such high levels of Congress about.
Speaker Change #277: Okay.
Speaker Change #277: Very clear thank you.
Robert: Thank you Robert.
Brian: And I only have a new question coming from Gaiam funny correct Brian.
Brian: Yeah just.
Speaker Change #280: Just wanted to make a follow up.
Speaker Change #281: And you made a very.
Speaker Change #282: Testing one right to me.
Speaker Change #283: The second half would be you would tell when I read that is.
Speaker Change #284: 10%, though lower than just a middle term you should go back to 15, and then eventually all the way to 20% I know this is a difficult question, but.
Speaker Change #284: The unexpected timeline.
Speaker Change #284: Or maybe a desire of assembling.
Speaker Change #285: When and how should this happen and just to you know grow our heads around this thank you.
Brian: Hey, Yes, Brian.
Thank you our expectation.
Speaker Change #286: And within that context.
Brian: We have now.
Speaker Change #287: It's all changed your thoughts on it.
Speaker Change #287: Regulations.
Speaker Change #287: We expect our OE to vote, we don't Oh versus sending the ex Florida.
Speaker Change #287: And then pick up gradually to do have a percentage for the year totaled five but.
Speaker Change #287: With an increasing trend and reaching maybe that run rate of 12% and thorough way.
Speaker Change #287: Okay.
Speaker Change #288: Oh, the last quarter of spending five I've met four P M.
Speaker Change #289: That would be on our side.
Speaker Change #289: Right.
Speaker Change #290: No I know, it's a difficult question, but I really appreciate it.
Speaker Change #290: In helping us here. Thank you.
Speaker Change #291: And what kind of a fine.
Speaker Change #291: [noise].
Speaker Change #292: Okay, ladies and gentlemen, we have reached the end of Q.
Speaker Change #291: Q&A.
Speaker Change #293: Thank you for telling me up for me.
Speaker Change #294: We have reshaped our company for what.
Speaker Change #295: People that I'm.
Speaker Change #295: I'm, providing hang on.
Speaker Change #295: Next maintain really need that they know its lifetime.
Speaker Change #295: Absolutely.
Speaker Change #295: Yeah.
Speaker Change #297: Uh huh.
Speaker Change #295: Yeah.