Q4 2024 Banco Bradesco SA Earnings Call
Sprint reveal for 'twenty kind of oxide.
Well cause to our total ankle stuck pedestrian meters for fiscal <unk>, our total loan portfolio.
And at that point, the review of our Crane relocation.
<unk> thousand 200 with Moody's.
Well the way beyond what we anticipated at our customer base grew by more than 2 million clients, 99% of our transactions.
Turning to the digital channel.
Everything gets in 'twenty 'twenty four in this house.
Our transformation.
Speaker Change: I would like to highlight I'm a British passenger.
Last year, we delivered.
Speaker Change: And the outcome of that better customer experience.
Speaker Change: A better customer experience and when you strip out with those clients, who don't use them when they don't.
Speaker Change: But.
Speaker Change: There was also an improving experience from our of course.
Speaker Change: Okay.
Speaker Change: Ruth you know payroll I didn't at all.
Increased 49% insurance sales, we also increased our coverage.
Speaker Change: By all means.
Speaker Change: Thousand reaching 39 1000 bank horizontally.
Speaker Change: Right.
Speaker Change: Well.
Speaker Change: Am I right.
Speaker Change: In each.
Speaker Change: Uh huh.
Speaker Change: The only minor houses we were the recipients out of Chile.
Speaker Change: We're buying them for money.
Speaker Change: Well they had before by the basket.
Speaker Change: In our business process that is what I said.
Speaker Change: The wholesale and retail make everybody talks about our net income and transformation.
Speaker Change: Very good.
Speaker Change: It's accelerated.
Speaker Change: I'll elaborate more on that and we also have two inorganic event.
Speaker Change: We can conclude it.
Speaker Change: <unk>.
Speaker Change: CLO <unk> capital.
Speaker Change: And we also had the acquisition of 50% up John Deere. After we got the approval from the Central Bank.
Speaker Change: Got it.
Speaker Change: Is it a picture of our high school expression of IL four and this is just a picture I have for you because this is another one.
Speaker Change: Okay.
Speaker Change: We're testing new models.
Speaker Change: With our Bradesco express when Theyre preparing several different municipalities around the country and then we go to the.
Speaker Change: Total revenue, which boosted.
Speaker Change: Growth of our net income our revenue was over 32 billion and we agree with 7.9 year on year in almost all lines in Brazil.
Speaker Change: NII was up by five 4% year on year.
Speaker Change: Fee and commission income by seven 9% year on year and our insurance companies.
Speaker Change: More than 16% 16, 6% year on year without requiring that income that was a quite relevant in another place the order.
Speaker Change: Third quarter.
Speaker Change: Revenue was 36 8 billion.
Speaker Change: 32.3 growing by five.
Speaker Change: Five 4% in the quarter in terms of revenues and this is happening thanks to the touch.
Speaker Change: Can we have the bank you know all of our business lines and associated what kind of things.
Speaker Change: Another important.
Speaker Change: Lever there.
Revenues, even in a presentation I think we do you should do the opposite we should start with the Leverages and then arrive at the final number, but we started with nothing and so our total loan portfolio.
Speaker Change: More than 980 billion growing almost 12% year on year and the average daily production.
Speaker Change: Impressive.
Speaker Change: I highlighted here the growth of individuals' pointing to me and I will give you more details.
Speaker Change: In a few moments of some of the lines and also we grew micro small and medium sized companies and that this portfolio is now 28% during the period and the highlight goes not only to middle market, but it also is just a small comment, though and I will elaborate further on the risk part of it.
Speaker Change: So if we break down the portfolio.
Speaker Change: You'll see are individuals on the left hand side.
Speaker Change: On the right hand side.
Speaker Change: Yeah.
Speaker Change: In fact, one in every period.
Speaker Change: We will find out here it sounds like with no ground.
Speaker Change: Now I would like to.
Speaker Change: Where do you draw your attention to a few items that matter.
Speaker Change: Okay Friday.
Speaker Change: Yeah.
Speaker Change: Sure.
Speaker Change: Great.
Speaker Change: 1%, but the major growth lever to reach that 5% for my wife Sue Hi.
Speaker Change: High income because high income personal growth.
Speaker Change: So I would like to highlight.
Speaker Change: Cool.
Speaker Change: We are in terms of risk adjusted return.
Speaker Change: And we're very mindful in terms of the quality and generation of all of our assets with new credit models your policies and also let's see.
Speaker Change: Oregon is good.
Speaker Change: Sure.
Speaker Change: Gross loans.
Speaker Change: Two by five he could have probably more with the capsid.
Speaker Change: But I would like to say that anyhow.
Speaker Change: Our transition is quite relevant in this regard.
Speaker Change: Oh gosh.
Speaker Change: Well those banks that have the government control they are a market leader as he payroll deductible loans.
Speaker Change: 20% market share.
Speaker Change: Sure it'll be in our private bank desk has a 14, 3% sure Pedro.
Speaker Change: Before we went.
Speaker Change: Public and private.
Speaker Change: Payroll deductible loans.
Speaker Change: On the right hand side, we have corporate Norway.
Speaker Change: We're not we're only 28% and high risk programs.
Speaker Change: We will have our feet on the ground. So if we look at the total publication is look at our working capital. We went from 131 billion to $1 7 billion and this is precisely.
Speaker Change: Coincides with our generation of apogee I, absolutely would allow for an M. P bolt in middle markets and all the rest.
Speaker Change: Middle business growing slightly above that.
Speaker Change: This is a combined right, but in terms of small size companies rose almost 20.
Speaker Change: When he's come out of the company.
Speaker Change: We are very careful in terms of our growth.
Speaker Change: Real estate.
Speaker Change: And collateralized.
Speaker Change: And in large corporates, we are using our origin nation for distribution, where it falls, you're optimizing our capital whenever a return.
Speaker Change: Yeah.
Speaker Change: All of these are good news and if you allow me to saying we need three combinations in order to deliver numbers like that the first combination is having a very sound customer base in Oh consumer sentiment and high penetration in the base. If we didn't have that we wouldn't be able to deliver it and secondly commercial trucks.
Speaker Change: With you very soon.
Speaker Change: Well orchestrated process.
Speaker Change: If it's about mix memorial in the physical and the digital world.
Speaker Change: The third pillar is our credit business unit it brought us new credit model with a lot of machine learning and improving every day.
Speaker Change: Our risk appetite and our portfolio.
Speaker Change: We have the right numbers for every.
Speaker Change: Every segment and every audience.
Speaker Change: It has to be very well too.
Speaker Change: Because.
Speaker Change: If we are totally integrated we can check them deliver what we are delivering today with phone control.
Speaker Change: Control.
Speaker Change: Well here I have another piece of information and that is that we certainly regulate our reeves.
Speaker Change: Risk appetite the entire time and when we saw that we were heading towards a more regulated policy, where we looked at that in the fourth quarter, we're not thinking about 'twenty or 'twenty, five, but we bought that beforehand.
Speaker Change: Sure.
Speaker Change: Is that 54% of our portfolio.
Speaker Change: Sure.
Speaker Change: In a very dynamic way up we are looking at several other periods, but I'm talking about the point, where it just shows the production or everything that is coming in.
Speaker Change: K P I would be much higher and this really shows the quality of what we are delivering.
Speaker Change: So and that's why we are not deliberate.
Speaker Change: Very high margin go along we are delivering controlled personal but even then.
Speaker Change: Every quarter, we posted.
Speaker Change: Growth in absolute terms in terms of client NII, our NII was five 4% year on year.
Speaker Change: Comment on the guidance later on.
Speaker Change: NII was 440 million barrels right quarter, I would like to highlight trading so good operations Laurence.
Speaker Change: Treasuries. The crisp team is responsible for that and then we had a growth of client NII and this is reflected in this item.
Speaker Change: We've been talking to you about which is the client NII net of provisions, which has to do with the bottom line impact.
Speaker Change: You could assume it's an hour growth of eight 7 billion.
Speaker Change: 77% year on year, and when we look at the entire year.
Speaker Change: 25, 8% and we continue on the same pace in <unk>.
Speaker Change: Vision in growth despite a more cautious.
Speaker Change: So the message here is that we continue to control our portfolio, we are reducing overnight delinquency with a very good coverage ratio all of those.
Speaker Change: All of the input.
Speaker Change: And at the loan loss provisions I would like to draw your attention that in this fourth quarter was 7.5 billion I mean.
Speaker Change: Increasing our 400 million, but at the same cost of credit is that we are indicating a 3%.
Mike: Sure. It's Mike here again, you can look at and this is did you all do everything I've told you before I mean control portfolios.
Speaker Change: And we are investing in.
Mike: Flying Huh.
Mike: That gave us an adequate or a R and I can also give you more details later on about some aspect.
Mike: It's related to a product into another important item has to do without fee and commission income why is it growing.
Mike: So because of the traction because of the level.
Mike: Things that we have in the entire organization.
Mike: Year on year 13 between seven and seven point these numbers do.
Mike: We do not consider that additional share from CLO that we acquired.
Mike: Here you can draw the same conclusion, we're rowing.
Mike: I'll ask it anyway.
Mike: Almost all of the period.
Mike: As you can tell from flight center.
Mike: But as you said most of that.
Mike: It's certainly a consequence from the most of it.
Mike: Hi activity.
Mike: Wow here I'm, bringing that remember that I mentioned at the beginning when you when I reviewed our foot print we did.
Mike: We went way beyond our expectations.
Mike: <unk> thousand 385 hours a week.
Mike: And you're ending up some but even then we were able to grow our customer base by over.
Mike: Customers are on the ear expenses.
Mike: We have to do something important.
Well I remember.
Mike: So much like into income the additional share from cielo just wrong.
Mike: Seven 5% year on year and eight 1%.
Mike: The entire period for the entire world, but let's look at another indicator that we have here I think I've been bringing this for the last week.
Alex: Total number Alex.
Alex: The amount of expense was up 93%, but once we solve it.
Alex: <unk> allo part.
Alex: So this number the growth.
Alex: Hum.
Alex: Nine I mean cielo is delivering new solutions in this way will allow us to increase our share and had some ease in large corporate leave alloy allow little and.
Matt: Hello, Matt.
Matt: Banner, we are investing to grow the business, even with very good recharging. However.
Speaker Change: We did not have them.
Speaker Change: Daily management operation I mean, but we are a proven investment expenses. So when we conclude.
Speaker Change: Expenses are absolutely under control as you can tell from these other integrators and I would like to remind you of two other details number one we are in this transformation path, which is very robust with a lot of capex investment, but it was also OPEC is part of the story.
Speaker Change: Not only we're doing that we're making with them has happened, but the insurance company is also investing on capex.
Don: So and this is Don.
Don: These areas to grow as well and therefore my conclusion is that all of our expenses are under control.
Don: All of the lines that we can look at and now we're looking at the consolidated numbers. There is one or giving some thought if we can talk about that when we talk about the guidance now I'm talking about the insurance.
Don: Another quarter of good results. So if you look at total.
Don: Revenue of 121 billion and that's why you know we posted 13, 6% growth net income was $2 5 billion $9 1 billion.
Don: With a narrowing each with 21%.
Don: Sure.
Don: Well when we look at.
Don: The insurance operation in the guidance we see.
Don: <unk> quarter on quarter, it's supposed to.
Don: And I like to draw your attention.
Don: Provisions that went beyond 400 billion like almost 12% in the sea.
Don: Thank God for the insurance company, meaning that the insurance business as well.
Don: Distribution is different lines.
Don: All of our customer segments inside.
Don: Also in our external channels.
Don: Which are.
Don: <unk> operated by their insurance.
More free to speak up.
Don: Had a couple index mark to market.
Don: Yeah.
Don: We ended the year.
Don: So what's all going forward.
Don: And that turned out to your general your photos.
Don: We applied for something to.
Don: Okay cool alright, because between between the teams.
Basis points required by the Central bank for the system and operating well.
Don: Here, we have dividend also in the audience.
Don: And therefore.
Don: 'twenty 'twenty four we see the numbers and I'd like to remind you we love.
Don: That program, which was open.
Don: It will stretch until May seven 2025.
That's the program.
Don: The buyback of about 50 million shares that will be announced to be are going to come off.
Don: Cancellation of East Boston.
Don: Okay.
Don: Close to 1% Ulster Bank just for your information.
Don: Here, we have the Penguin.
Don: For 'twenty.
Don: For possible.
Don: I did not keeping you this complementary information off and a gain net of provisions almost like gaming.
Don: Formal guidance.
Don: I spoke to you before building and that's what matters is the bottom line instead of.
Don: Discussing where I make more of a margin than where I make plus type of margin. So cube.
Don: Is that correct.
Don: When this occurs.
Don: And we had a good day.
Don: Skiing.
Don: NII and net of provisions.
Don: Doing very well.
Don: Since the depression.
Don: Loan loss provisions are closer to some of the guidance game commissions will come closer to top up the guidance on operating expenses.
Don: But with us that's sufficient prescribing.
Don: Regarding consolidation.
Don: We have an.
Don: Insurance operation right.
Don: Close to the top of the guidance 75.
Don: So no.
Don: Sure.
Don: I'll talk about three or four days, a quick balance about our trustable.
Don: Okay.
Don: Of course, I cannot mention all of the indicators that we have a lot of them.
Don: Yes.
Don: Sure.
Don: Two housekeeping.
Don: Organizationally highlights you will remember we choose to leave us with you kind of control.
Don: Levels made some changes in the leadership team.
Don: Put together our transformation office with 800 people more and it's doing really well.
Don: The culture, we have been working in mandatory maintain culture, we did some surveys with high level of engagement.
Don: Oh.
Don: I mean, do we launch and taught me messages together without it.
Don: It just won't be windows.
Don: Today, you know.
Don: And then the phone to make them.
Don: We are talking with them about.
Don: A much more contemporary amendments, we have sopra disco again bradesco.
Don: Here for clients, we're much more focused on clients with all of the transformation we had product.
Don: Modifying it.
Don: So the organization, we have any power.
Don: With the prices have been surprised the agility.
Don: We have been decentralizing decision, making you always seem to effectively participate and decide fast.
Don: Have you seen a faster time to market.
Don: Okay.
Don: We are challenged.
Don: What does this mean.
Don: The transformation.
Don: Hello.
Don: We are attempting to get that kind of a launch plan.
Don: Yeah.
Don: Building on our plan and we are touching them or something.
Don: This is a big challenge, but we are just being sure of order deliveries because we have a lot of deliveries and it's already up to separately in Washington.
Don: Got it.
Don: Digital retail.
Don: Not all the Liberals mission, we delivered a new aquarium.
Don: Uh huh.
Don: Mr N P S.
Don: And you can see that on.
Don: Looming and it really will be the liver.
Totally new experience not just for wholesale.
Don: Right.
Don: If I could.
Don: You will see that it will be more news along this year.
Don: Hearing.
Don: Clearly, we have been working with outerwear.
Don: 10 a M.
Don: With 90% range.
How about when they talk about technology I'll come back to that and you say, okay bear with me.
Don: Yeah.
Don: And we have a decision tree, which is turned out on the water.
Don: It is working really well, but now we're implementing again.
Don: We have a better deal muscle sort of intensive E O N E.
Don: And Hyperscale.
Don: With the consequences.
Don: At the bottom more slot.
Don: We will show you this year, because we are ready to deliver on this value proposition, where you can really show the market. What we're building here, while we are delivering.
Don: The highlights of principal launching in November.
Don: 50000 clients and we are striving to expand.
Don: Payments your synergies.
Don: And the synergy with yellow again CLO.
Don: The best things that we have the deliverable on phone and up here I mean, putting the highlights for SME loans.
Don: This segment after we presented our plan with 100 weight.
Don: Two branches dedicated to enterprise.
Don: With 100.
Don: We're growing really well we have subtraction yeah.
Don: Right.
Don: Middle culprits.
Don: Really well we have.
Don: More platforms and more I am.
Don: The increase in market share in Michigan.
Don: My question again.
Don: Nicola.
Don: Ooh.
Don: The aggregate segment, if more minutes, so that we can take.
Don: We can see is this opportunity with our giant onto your bank partners.
Don: Terrific.
Don: It has been looking for something different.
Don: Its implementation.
Don: The.
Don: The creation of the portfolio minutes.
Don: We haven't.
Don: Use of conglomerate data improving our modeling we hired almost 200 professionals.
Don: We have improved our credit policy.
Don: We have in front of me.
Don: Sheen learning in here.
Don: Okay.
Don: They have the consequent.
Don: The portfolio group.
Don: But also because they have a commercial traction and penetration.
You see these market share gains moving on Smes and individuals over 90.
Don: If it got dropping.
Don: New vintages.
Don: Good.
Don: With much better vintages compared to the pre pandemic.
Don: Okay. So no pushback, a little about technology about modernization.
Don: Yes.
Don: So the school.
Don: Executive we hired an excellent participation.
Don: And the management.
Don: Going to private facility, we ended the year with another.
Another 500.
Don: And we've.
Don: I don't have a dedicated team of more than 10000.
Don: We are in the process of trunk internalization.
Don: Senior people.
Don: We continue to migrate several applications.
Don: Knowledge that 79% and I spoke about earlier when I was thinking about this the bone mass market well.
Jamie: Well, Jamie I see yeah.
Don: Awesome.
Speaker Change: We have been seeing with more than 40000 something internally.
Speaker Change: 500 in ETF clients using it.
Speaker Change: Just a few months.
Speaker Change: 2020 for more than 20 million interactions happened with that.
Speaker Change: Level of principles shown up 90%.
Speaker Change: Now we can improve them even further.
Speaker Change: I forget there's kind of a blip there new experience.
Speaker Change: Biotech.
Speaker Change: It's called by attack, but actually pick up some.
Speaker Change: Anytime all application.
Speaker Change: With significant amount of efficiency and.
Speaker Change: And productivity gains.
Speaker Change: The vulnerable being modest.
Speaker Change: It would be new or legacy application Michelle.
Speaker Change: So basically what's happening.
Speaker Change: Yeah.
Speaker Change: On.
Speaker Change: I'm learning.
Speaker Change: Oh, yes.
Speaker Change: Yeah.
Speaker Change: I don't have that.
Speaker Change: It does.
Speaker Change: There are some organizations that work.
Speaker Change: They work really well with it.
Speaker Change: Right the stories.
Speaker Change: We are one of the words I used in the world.
Speaker Change: The use of my time with you.
Speaker Change: General.
Speaker Change: In order to modernize application.
Speaker Change: So big legacy systems to create models.
Speaker Change: Go ahead.
Speaker Change: In your two big models or modules.
Speaker Change: They're struggling.
Speaker Change: I have a squad, which is multi disciplinary team people who acted violently.
Speaker Change: You ask for example.
Speaker Change: Oh.
Speaker Change: So you always have a developer who's going to have any young multi agent UX for products for you and someone else so forth within the ability.
Speaker Change: It's up significantly.
Speaker Change: Yes.
Speaker Change: And you can go to.
Speaker Change: The diet a process of doing this.
Speaker Change: And modernization of systems, we acquired 100% of consumers come to me as a company from them or is it linked to the academia with more than 50 P. M.
Speaker Change: He had been awakening.
Speaker Change: Solve that problem.
Speaker Change: No problem solving through machine learning AI would be credit.
Speaker Change: And with the collection department with greater intelligence and the others.
Speaker Change: And maintained a 90% productivity in addition to the implementation of a value assurance.
Speaker Change: Our efficiency into that point.
Speaker Change: Staring with contracts and applications.
Speaker Change: Here, we're going to look at the macro stuff that's coming to the end of the presentation.
Speaker Change: Okay.
Speaker Change: We continue to reach you Oh, that's right.
Speaker Change: The volume of our culture.
Speaker Change: Principal will get to 500.
Yeah.
Speaker Change: And next we would like them.
Speaker Change: The expansion with more than that.
Speaker Change: 800000 clients in credit we have all of these processes we are investing.
Speaker Change: Company.
Speaker Change: Senior to internalize technology.
Speaker Change: Enterprises until weddings.
Speaker Change: It's all productivity game at the moment coming from attack.
Speaker Change: We increasingly tech deliveries.
Speaker Change: And his technical output in 'twenty.
Speaker Change: T to fiber.
Speaker Change: This is very gratifying because we have this conviction and it means that we are very satisfied with what we are delivering and Houston for 2025, So I think you'll probably not.
Speaker Change: Earnings and in all the material.
Speaker Change: We released today.
Speaker Change: Okay.
Speaker Change: We had a scenario the paperback Saturday they would.
Speaker Change: Give us 910% portfolio growth.
Felipe: Felipe who'll sell side.
Speaker Change: The sell side.
Speaker Change: There's the buy side in the past quicker than we thought.
Speaker Change: We're working with.
Speaker Change: We considered a base scenario 70%.
Speaker Change: And a more cautious scenario.
Speaker Change: 3% and that's what we're working with we wanted to be cautious.
Speaker Change: Because.
Speaker Change: I think that with a contractionary monetary policy.
Speaker Change: And with interest rates, we have today of course, there is an economic argument.
Speaker Change: But our NII and net of provisions has grown even more.
Speaker Change: Why is accruing them, because we have to carry over from 'twenty to 'twenty.
Speaker Change: Oh I'm sorry.
Speaker Change: Yes.
Speaker Change: Actually require a lot of comments regarding the realm.
Speaker Change: Well candidly speaking I am very much Luke.
Speaker Change: Optimistic regarding everything we are doing more.
Speaker Change: Unless optimistic about the macroeconomic scenario, we might have surprised.
Speaker Change: Optimistic.
Speaker Change: Now our guidance is what it was a little soft.
Speaker Change: And from the Middletown, not sitting idle.
Speaker Change: I cannot envision.
Speaker Change: And this is.
Speaker Change: We continue to grow profitability.
Speaker Change: Solid and safe and the way they've been willingly.
Speaker Change: Revenues, given our traction we continue to grow.
Speaker Change: A lot of traction in.
Speaker Change: Run the bank and we've got a lot to celebrate.
Speaker Change: I'd like to thank you.
Speaker Change: Your attention.
Speaker Change: And I'd like now to invite you to the question and answer session what.
Speaker Change: What happens after value.
Speaker Change: No.
Speaker Change: I mean, we are here.
Speaker Change: Thank you and myself.
Speaker Change: Yeah, no, it's a pleasure to be here.
Speaker Change: Good morning.
Speaker Change: Sonya that even conclusive insurance group.
Speaker Change: I'll be joining us.
Speaker Change: Both ways online if you want to ask questions you can ask questions in Portuguese and English.
Speaker Change: If you want to send a question you can send your question to this email on the screen basket or is that just because that conduct well use a whatsapp connection 11 974432380 point your camera to the QR code on the subject.
Speaker Change: First question from Vanessa Goodman, with Steve is to Memphis Bernardo.
Andrew: Good morning, Andrew.
Speaker Change: Fair enough.
Speaker Change: For taking a question.
Speaker Change: I have one question about the market and I had a good year.
Speaker Change: The treasury, the Powerpoint industries again with arbitration.
Speaker Change: Any change.
Speaker Change: Change in the hedge policy of the bank.
Speaker Change: Should we think about market NII demand.
Speaker Change: 20 to 25, considering high interest.
Speaker Change: Okay.
Speaker Change: I'll ask a question or two start answering your question.
Speaker Change: Okay.
Speaker Change: Good morning.
Speaker Change: See you.
Speaker Change: How are you.
Speaker Change: Well, it's a pretty massive.
Speaker Change: Depreciation is the main thing.
Speaker Change: Pass it.
Speaker Change: Well Peter.
Speaker Change: We don't have.
Speaker Change: Our production.
Speaker Change: Okay.
Speaker Change: We do a lot of operations.
Speaker Change: Jean in sandbox.
Speaker Change: Indeed.
Speaker Change: For arbitration.
Speaker Change: <unk>.
Speaker Change: In some specific operations.
Speaker Change: Let's move now.
Speaker Change: Yes.
Speaker Change: No.
Speaker Change: Thanks.
Speaker Change: For next year and next year.
Speaker Change: For 2025 actually.
Speaker Change: <unk> 25.
Speaker Change: You should be more cautious.
Speaker Change: Close to a new trial.
Speaker Change: Got it.
Speaker Change: Many of them.
Speaker Change: I think there are some.
Speaker Change: Additional comments.
Speaker Change: Guidance.
Speaker Change: So we are being more conservative for Docomo casciano commit to ask question.
Speaker Change: There's a lot.
Speaker Change: You see it in some months.
Speaker Change: We made money.
Speaker Change: As of the last.
Speaker Change: Trading.
Speaker Change: Of course, this is all going to happen in 2025.
Speaker Change: You might say Oh.
Speaker Change: <unk> gained seeks in this field.
Speaker Change: Yeah.
Speaker Change: You might be a little better.
Speaker Change: We are Hasan.
Speaker Change: Sure.
Speaker Change: No we really have seen some more positive expectations.
Speaker Change: Patients in my second comment is we have lessons learned we have a great team coordinated by her bathroom vanities.
Speaker Change: And with Marina Bruno and know who he is.
Speaker Change: He is responsible Africa's rating.
Speaker Change: I have been told me.
Speaker Change: That we might have been even thought of yet.
Speaker Change: Neither will stop fraud and the next question from Gustavo Schroeder from Citibank.
Gustavo Schroeder: Good morning, Good morning, Marcelo question Andre It's very nice to talk to you again and congratulations on your transformation process.
Gustavo Schroeder: I think tomorrow.
Gustavo Schroeder: Marcelo will not vary.
Gustavo Schroeder: Conveyed a lot of it but I would like to talk about the structural part of a bank that refers to capital funding Bill look at C. C. T. One at 10, 9%.
Gustavo Schroeder: Slightly below the average among your peers.
Gustavo Schroeder: I understand that it's slightly above the minimum requirement.
Gustavo Schroeder: Notice.
Gustavo Schroeder: The reclassification and transforming that were made.
Gustavo Schroeder: Unitary node.
Gustavo Schroeder: Okay.
Gustavo Schroeder: L a.
Gustavo Schroeder: But not all.
Gustavo Schroeder: Curious available for sale to maintenance and you all have seen accelerating and then.
Gustavo Schroeder: The LTI line.
Our other income 15 results, we see another corridor.
Gustavo Schroeder: With negative results I mean accumulated in the law says.
Gustavo Schroeder: Do not impact the results.
Gustavo Schroeder: Do have an impact on the capital.
Gustavo Schroeder: So how comfortable are the bank what is the bank strategy.
Gustavo Schroeder: Cheap.
Gustavo Schroeder: To have that.
Gustavo Schroeder: That's C T.
Gustavo Schroeder: Returning to a higher level and I just wanted to understand how comfortable you are with a b.
Gustavo Schroeder: Cole capital as you say.
Gustavo Schroeder: Let yourself my Fabulous.
Gustavo Schroeder: You're right.
Gustavo Schroeder: Growth guidance is very mature, but if go it ranges from four to eight but with a better macro landscape.
Gustavo Schroeder: The portfolio range more up to that you know at the top of this range. So this is something interesting for us to do here.
Speaker Change: Thank you Gustavo I would also ask my colleagues to comment as well we are very comfortable with our capital or you saw that.
Gustavo Schroeder: That we know.
Speaker Change: 0.8, after 49 66.
Gustavo Schroeder: C T. One.
Gustavo Schroeder: It has a huge.
Gustavo Schroeder: Because I think it goes up to 8% if I'm not mistaken.
Gustavo Schroeder: Because it's the fad.
Gustavo Schroeder: We are not concerned with that and we said that from the very beginning because we ran several project shifts.
Gustavo Schroeder: The stress scenarios are optimistic scenario. Therefore, we do have room to grow with stable stability in our in terms of our capital. Therefore, I have no concern at all in terms of everything that we can do and we will continue to increase profitability and increase our and that didn't come in and our CTO will.
Gustavo Schroeder: Hi.
Gustavo Schroeder: With the iPhone.
Gustavo Schroeder: Yeah.
Gustavo Schroeder: Morning.
Gustavo Schroeder: Again, it's really unfortunate that we'd already in mind that our guidance yourself or are you, saying.
Gustavo Schroeder: You know.
Gustavo Schroeder: It has to do with the two ends of the Guy I almost carpathia very complicated in terms of our capital.
Gustavo Schroeder: You saw all of the move.
Gustavo Schroeder: That red flag.
Gustavo Schroeder: And all of our balance sheet to.
Gustavo Schroeder: So the 49th it takes we had a point for a drop in the Florida market.
Gustavo Schroeder: 31, 2024 of which is mark to market and you can see 49 66 on January 1st bring that capital back to 2.8, meaning being what's being denied.
Gustavo Schroeder: At the end of the year Atlanta that contemplates three important components.
We have oh.
Gustavo Schroeder: Oh, my gosh, it related to what scope.
Gustavo Schroeder: Right.
Gustavo Schroeder: Just the adjustments to shareholders' equity.
Gustavo Schroeder: The bulk of St.
Gustavo Schroeder: To adjust to the criteria from the central bank, they have minimum regulatory aspects as part of their room.
Gustavo Schroeder: We're pretty much in line, we just I just stay so you made adjustments to the central bank in that way.
Gustavo Schroeder: No that was split into four.
Gustavo Schroeder: The Central Bank regulations.
Gustavo Schroeder: Regulation, So we have zero zero zero.
Gustavo Schroeder: The negative impact the other negative impact.
Gustavo Schroeder: 20th refers to operating results as the operating results of that.
Gustavo Schroeder: In fact, it now and now and then on the other handle over half itself.
Gustavo Schroeder: So I don't have a practice that must be adjustment to that.
Gustavo Schroeder: Certain types.
Gustavo Schroeder: To market in our balance sheet and available for sale and negotiation liabilities and the new criteria all business models. They are classified.
Gustavo Schroeder: According to the business model of every six months.
Once you put everything together.
Gustavo Schroeder: We arrive at 12.8, which is higher than that.
$12 seven from the previous quarter, but even even.
Gustavo Schroeder: More than that when we look at our projection.
Gustavo Schroeder: Look at all the possibilities of our net income we have enough capital to fit it into the <unk>.
Gustavo Schroeder: Range of our guidance.
Gustavo Schroeder: In terms of capital it will be stable this year, even with the payment of IOC and growing the loan portfolio close to the ceiling of our guide anybody. So next question is from Daniele advice from bass from software.
Speaker Change: Hey, good morning, good morning, Mike.
Thank you for the opportunity.
Speaker Change: Asking your question.
Speaker Change: To revisit the guidance aspect about because you said that.
Speaker Change: And if you look at that.
Speaker Change: And when we highlight them.
Speaker Change: She keeps getting them.
Speaker Change: The client NII.
Speaker Change: Net of provision or maybe it doesn't grow so much when we look at the range, but he was a lower comparison base.
Speaker Change: 24, 25 is more pronounced.
Speaker Change: Pronounced benoit and et cetera.
Speaker Change: Got it.
Speaker Change: So according to our reading.
Speaker Change: So my mom used for that.
Speaker Change: Provisions.
Speaker Change: Lower assistant waves, we shouldn't look at it is there anything you would like to highlight in terms of provisions or whether it'll be naughty and those at the right level today or do you think that provisions are more collateralized.
Speaker Change: I just want to hear your comments thank.
Speaker Change: Thank you. Thank you Danielle and thank you for your question.
Speaker Change: What I have to say is that we will continue to grow with them, but also our gross margin.
Speaker Change: As I said, we have the carry over.
Speaker Change: 220, 25, or everything we produce and we piled up we accumulate.
Speaker Change: But if you look at the cost of our credit.
Speaker Change: Cost of risk.
Speaker Change: Vacation, it's too soon to keep cost of risk of around 3%. This is our expectation.
Speaker Change: We are.
Speaker Change: Very very comfortable with everything we are doing so in relation to credit.
Speaker Change: If we look at them.
Speaker Change: And in 'twenty 'twenty, four and let me say the following market I talked about.
Speaker Change: Payroll deductible loan market, if you look at that.
Speaker Change: Erode the individuals' ideas, we grew in favor of long so we have a higher share.
Speaker Change: With 14, 3%.
Speaker Change: Private banks.
Speaker Change: Got it.
Speaker Change: Also has to do with NII and sometimes they don't even look at it I'm not only preparing different that's weird hours tiers as well there was I N S. S cat, but also in terms of the public companies such throughout this period with the increase in interest rates and the long tail of the lungs.
Speaker Change: Every mine, which settle a lot of money.
Speaker Change: That was higher than previous years, leaving periods with yes.
Speaker Change: As much margin.
Speaker Change: And then.
Speaker Change: You hired a new payroll loans very minimal if any.
Laura Martin: Laura Martin.
Laura Martin: And this puts pressure on the gross margin, but there is no good.
Laura Martin: The risk adjusted return or are a all right. The second thing for individuals just crowding tomorrow, we are.
Laura Martin: With our feet on the ground and the majors right.
Laura Martin: So those of you who came from high income individuals through 14, 5% year on year and some buying this growth was five was effective ASP.
Laura Martin: You looked at our publication and looked at it in detail your fleet that I was personally alone also.
Speaker Change: I agree with you it shows very well.
Laura Martin: So it's not the most attractive.
Laura Martin: That was really a higher income.
Laura Martin: Charleston mill or otherwise.
Laura Martin: Otherwise I'll keep their selection.
Laura Martin: So I will read them out.
Laura Martin: Prime clients they have.
Laura Martin: With me.
Laura Martin: So.
Laura Martin: Credit line.
Laura Martin: And then you have other credit lines.
Laura Martin: Yes.
Laura Martin: Secured loans.
Laura Martin: The margins are I wonder if he's doing it but lower in 'twenty to 'twenty four but then when we look at its support for the company.
Laura Martin: All right.
Laura Martin: Our focus on collateralized portfolio.
Laura Martin: Particularly based on your programs like Africa.
Laura Martin: Whereas under several different sizes of companies up to 300 million after a meal.
Laura Martin: Contemplate I mean 400 million at year crop credit, but at this point.
Laura Martin: And as far as the company up to 350 million a year.
Laura Martin: And then what happened here.
Laura Martin: It'll be transparent and you can look at their ranking.
Laura Martin: Bad periodically I mean, 'twenty 'twenty four with Bradesco ahead to higher auction.
Laura Martin: Therefore, we grew around 70% I'm talking about production.
Laura Martin: Compared to 'twenty to 'twenty three to seven.
Laura Martin: 717 billion give or take this.
Speaker Change: Yeah. When once you combine all the programs and with App July alone. We were the second largest producer of Gi in the Brazilian market.
Speaker Change: It was more than it was in September 31st 2024, I'm looking at the.
Speaker Change: On the other hand, when we looked at G O program being granted another organization, but it's not that one.
Speaker Change: Number one and we came in second.
Speaker Change: Very close number one and then we wouldn't be able to go global and total production here.
Speaker Change: Uh huh.
Speaker Change: We had $18 five pretty sure niches.
Speaker Change: Our production in the programs. So they are a area is really phenomenal and this is very good for clients and companies.
Speaker Change: The government.
For them their managers you can impart by the B M D as an antibody.
Speaker Change: There are several rules.
Speaker Change: So 18.5 production being from Bradesco.
Speaker Change: Think of that.
Speaker Change: Lately above us.
Speaker Change: The third at Bankshare Oh zinc.
Speaker Change: About 5% lower share when compared to one in terms of production we also.
Speaker Change: S N mean boost advised portfolios out there.
Speaker Change: Secured or collateralized I wish, but especially this one which has got them all right.
Speaker Change: Loans also collateralized and secured real estate loans Super cool locked at all.
Speaker Change: Mortgage loans.
Collateralized and it's an hour and it'll be it's about 50% 51%.
Speaker Change: Visit.
Speaker Change: Given the reality and that's my conclusion.
Speaker Change: We will not.
Speaker Change: Well, yes, I mean.
Speaker Change: I wish I enjoy the fact, let's see better margin to control along with Icontrol.
Speaker Change: So when I look at the level of activity because.
Speaker Change: Life is very dynamic and he's already in February the level.
Speaker Change: Yeah.
Speaker Change: Therefore, I think that our guidance is very cautious.
Speaker Change: We are looking at the macro scenario.
Speaker Change: Great.
Speaker Change: Sure Hi, Sophie.
Speaker Change: There are more for companies.
Speaker Change: There are a group of individuals that have a more difficult time to access credit.
Speaker Change: But that's the scenario.
Speaker Change: I don't see you know drop in March I think all I see anywhere else. Thank you.
Speaker Change: Danielle.
That's already in place at that client NII grows more than the portfolio.
Speaker Change: I told you if and when the Anika cycle butterfly and it's just an average so Jim this is Ed.
Speaker Change: Average comparison already gave is about 8%.
Roche for client NII battle reaches two digits once we add the efficiency measures and funding and.
Speaker Change: The funding.
Speaker Change: London sites schools and on top of that you know Marcelo just mentioned veteran graduates that can also help us to increase client NII throughout 'twenty, one 'twenty two.
Speaker Change: So yes cost of risk is about.
Speaker Change: Sam.
Speaker Change: This is pretty much around what Marcelo just how to think of it.
Thiago Batista: Next question, a little bass chunk next question by Thiago Batista with UBS.
Speaker Change: Don't you.
Thiago Batista: Good morning.
Speaker Change: Well, if you went to somebody I have a question.
Thiago Batista: Suffer.
Thiago Batista: Sure.
Thiago Batista: Ooh digital.
Thiago Batista: One would have thought.
Thiago Batista: That's one of our more too.
Thiago Batista: The channels to bring them.
Thiago Batista: How should I think of that downstream.
Thiago Batista: What about capital adequacy, the bank kept going with tenet.
Thiago Batista: Nine.
Thiago Batista: Centerpoint capital, which has put us a little.
Thiago Batista: Chuck.
Thiago Batista: All thing.
Thiago Batista: Lockdown or something like that.
Thiago Batista: Thanks Glenn.
Thiago Batista: We will look at the next.
Thiago Batista: 12 to 18 months looking forward.
Thiago Batista: Well. Thank you for the question it is a pleasure to have you.
Thiago Batista: Regarding the second topic, we're very comfortable.
Thiago Batista: We don't have any movement in the insurance group in that regard, we see profitability increase.
Thiago Batista: Stable comparable a good buffer regarding D. G O N E.
Thiago Batista: We'll bring you news value proposition of our digital.
Thiago Batista: He should be integrating magazine this new value proposition.
Thiago Batista: Along the year absolutely.
Thiago Batista: Five.
Thiago Batista: And to the beginning of the second half of theory, but we'll bring you more on this morning.
Thiago Batista: Okay.
Thiago Batista: We have a strategy for that and we in the process of executing and about capital I answered about Chicago.
Thiago Batista: Yeah.
Speaker Change: Question from him not Maloney with autonomous I just talked about.
Speaker Change: We cannot hear you.
Speaker Change: Oh, okay.
Speaker Change: But what they're going to.
Speaker Change: My question I'd like to go back to the.
Speaker Change: Yeah.
Speaker Change: Oh, sorry.
Speaker Change: In my mind.
Speaker Change: Moving twice.
Speaker Change: Yeah, I think it's a problem for a while you expand in NII.
Speaker Change: For its less so.
Speaker Change: Flat.
Speaker Change: Compared to the prior quarter.
Speaker Change: I think the even if we consider that to somebody else.
Speaker Change: Crackling Claudio mentioned, if somebody to Washington to loosen its almost see NII increase.
Speaker Change: Second question.
Speaker Change: An increase in expenses does not include restructuring costs.
Speaker Change: Can you give us an order of magnitude of what you expect for 2025.
Speaker Change: Thank you ran at such a pleasure to have you on board.
Speaker Change: Uh huh.
Speaker Change: Alright. Thanks.
Speaker Change: For the.
Speaker Change: The positive margin.
Speaker Change: Well.
Speaker Change: It tends to grow.
Speaker Change: What is that made up about.
Speaker Change: I N S F.
Speaker Change: Public.
Speaker Change: Payroll deductible loans.
Speaker Change: It was a month with a couple of times, but we refinance that with how you monetize it somebody might have a different index. It went for five 3%, but in absolute terms.
Speaker Change: Crewing.
Speaker Change: With a cost of risk, which is very stable well balanced.
Speaker Change: We will continue to grow.
Speaker Change: The margin for Quanta basketball should put us.
Speaker Change: England.
Speaker Change: I don't worry so much about the NII in the pro forma.
Speaker Change: But I focus on absolute consortium and this spring to growth.
Speaker Change: What we're going to deliver so rehab.
Speaker Change: It will deliver.
Speaker Change: Training courses.
Speaker Change: Neither perfusion.
Speaker Change: Well move forward.
Speaker Change: If we can reassess to intuitive.
Speaker Change: Gosh.
Speaker Change: Think that I mentioned in the past.
Speaker Change: Initial expectations or twin definitely need poorly crowding out.
Speaker Change: To review Board.
Speaker Change: A thousand points of service.
So in closing.
Speaker Change: The rest was and if it's possible.
Speaker Change: And the rest would be restructuring or renewal and we had almost no effect.
Speaker Change: 385, even more.
Speaker Change: Mike.
Speaker Change: That seems quite intense.
Speaker Change: 410 million of publish monthly.
Speaker Change: For.
Speaker Change: Expenses have been compared to what we are doing the transformation well that's much better.
Speaker Change: Capturing some violence.
Speaker Change: That's what it is.
Speaker Change: Yeah.
Speaker Change: And the payment company.
Speaker Change: And are making important moves and topics and oh by accident insurance.
Speaker Change: Oh, so working on overtime.
Speaker Change: Uh huh.
Speaker Change: Yeah.
Speaker Change: Isolated Nathan the payments companies.
Speaker Change: 9%.
Speaker Change: Yes.
Speaker Change: Well.
Speaker Change: And productivity.
Speaker Change: We cannot stop working.
Speaker Change: The transformation to help.
A lot of confidence and what we may need a little things predictive he's.
Speaker Change: One of them with them.
Speaker Change: So you deliver the.
Speaker Change: The same technology.
Speaker Change: You can take the metallurgy.
Speaker Change: Then we put it in 'twenty 'twenty four is a lot of the classic. Thank you ran off.
Speaker Change: Next question from Matthew P.
Speaker Change: With bank of America.
Speaker Change: Islam.
Speaker Change: I mean, congratulations on doing so.
Speaker Change: Not only out of sea water.
Speaker Change: One of them.
Speaker Change: Well.
Speaker Change: So all of the banks, so far small school help me one more.
Speaker Change: And at this point.
Speaker Change: I'm more cautious and myself.
Speaker Change: On the granting more clients and products that are accurate television, but it's not going to get some beans.
Speaker Change: It seems that there's going to be intense competition.
Speaker Change: I think people don't want to be much closer.
Speaker Change: We want to very cautious.
Speaker Change: Momentum.
Speaker Change: It'll be a timely moment for you to grow your mark to market given that everyone.
Speaker Change: It is being very cautious.
Speaker Change: We would have room.
Speaker Change: This risk.
Speaker Change: My question is.
Speaker Change: A couple of major take on a little bit more risk and focus more on the mass market.
Speaker Change: I don't think too that's a good question.
Speaker Change: I'm going to ask a question.
Speaker Change: Sure.
Speaker Change: When I talk about mass my kids and footwear.
Speaker Change: We are talking about 1 million clients with this new value proposition, we are testing multiple industries.
Speaker Change: News and tissue penetration here, we grew to manage them.
Speaker Change: I mean, we have really cut insurance.
Speaker Change: And friends.
Speaker Change: And you also mentioned.
Speaker Change: Some more information with the new platforms, we gained a lot of the processing.
Speaker Change: Productivity.
Manish: Manish claimed experience.
Manish: Oh My gosh.
Manish: Okay.
Manish: Correspondent.
Manish: We grew more than 100% concepts around the country.
Manish: In granting payroll.
Manish: So we have a risk appetite, it's not that we're not working with methanol we arm.
Manish: But we used to see if.
Manish: The risks.
Manish: So we should do it.
Manish: Nothing can replace.
Manish: Good quality up as well this is something that we will not give up we will not give up on risk adjusted return, but we are working in Mexico.
Manish: With expenses should increase by 45%.
Manish: With those implementation in Memphis markets for that.
Manish: Got it.
Manish: So we are increasing penetration.
Manish: Good food and goods most I'll, let hilla.
Manish: Payroll deductible loans and products that we can work with.
Manish: Hum.
Manish: Gringos adequate risk migration.
Manish: Okay. So it's not that we are giving up and growing.
Manish: My kitchen senior mortgage with British links that restaurant.
Manish: You'll see the deliverables.
Manish: Yeah.
Manish: We didn't give up on bankruptcy, but the risk appetite.
Manish: Troy.
Manish: He has returned and did well.
Manish: On the table.
Manish: Okay.
Manish: Improvements in mismatch.
Manish: Post election, we worked with another political clusters by volatility class analytical methods with a moment ago, we strategize English.
Manish: English appetite, we get closer to my only.
Manish: At the highest volatility for the lost or the people who are more exposed.
Manish: The deterioration of the macro economy.
Manish: That's where we started jumping unless I do too.
Manish: In fact second improvement.
Manish: Thank you clay answered them all here of course.
Speaker Change: That's helpful. Fred.
Speaker Change: Lowest spread.
Speaker Change: Speaking, but likely more tilted towards pretty much in the last few quarters.
Speaker Change: A little more spread but there is a little more.
Speaker Change: Adjusted all of our offerings.
Speaker Change: And we have demand doesn't want to have a better price risk and risk is better pricing in these segments, but I do thank you for the question.
Speaker Change: Next question from federally Dookie with at all.
Federally Dookie: Good morning, and thank you for this opportunity.
Speaker Change: It relates to NII.
Speaker Change: Beach quantum 'twenty 'twenty four is rock handle NII.
Speaker Change: The guidance I'm worried that gauge by Microsoft He had to loan loss provision, but this has been among the most challenging but when you look at a 2025 guidance I'm, saying that the theater, saying that it will grow the portfolio.
Speaker Change: The Fe Tomorrow and help vessels.
Speaker Change: Help me understand it because you talked about the 8-K.
Speaker Change: But even with Brexit.
Speaker Change: The industry for a bedroom.
Speaker Change: In real estate and mortgages, how do I know that the new vintages are accumulating each slowest surprising or getting folgers connect and you wanted to also the nature of them, but theyre risky and this will be highly dependent on funding of Justice Lin song.
Speaker Change: Is this a correct observation or maybe it was in terms of pricing you might be more aggressive.
Speaker Change: I just wanted to be interested in a bit more comfortable when it comes to client NII given the industry challenges in recent history. Your bedroom and thank you for your question. It's a pleasure to see you Andrei I will start answering your questions and then both of US will have jumped out at me I would like to high <unk>.
Speaker Change: Right.
Speaker Change: Efficiency measures that we adopted when he comes to us even though you know.
Speaker Change: Managing our liability and this is reducing our cost of funding when there is increases in the selic rate, we make more money I mean this is a process that is ongoing so it's all we have to do.
Speaker Change: Salaried with the deterioration of the macro scenario, we compensate that with efficiency measures so that our client NII.
Speaker Change: In Peru, and we gained about two percentage points in the NII and the client NII segment. This is a very important point. The second important aspect that was even highlighted in the whole pawn bunker minutes is that the central bank in terms of banking law safety deceleration in la.
Speaker Change: With lower spreads and these are lines with longer duration, where the effects of the monetary policy.
Speaker Change: It has an initial aim in fact, so when you do your salary lines with lower spreads you showed a man goes along the lines of where it was at the better as friends. So naturally there is a change in the mix.
Speaker Change: Hello.
Speaker Change: She would recover spread so that $8 four number that you'll see that.
Speaker Change: That's where we see increases throughout 2020 like Pedro again.
Speaker Change: Morning.
Speaker Change: It's also important to society.
Speaker Change: But if.
Speaker Change: If I comment on your answer I mean personalization is something that has been our focus always has to do with.
Speaker Change: This component in addition to the inventory of 'twenty 'twenty, four which is quite healthy.
Speaker Change: We all have to pay for higher Roes.
Speaker Change: NII and funding is quite important as well and there are other important aspects.
Speaker Change: We are doing some important Oregon at 10 million of cash management and all of that has he brought good results.
Michelle: Just to set off by Michelle three pillar height.
Michelle: Hyper personalization is pricing and in some ways.
Michelle: Better retention in terms of Principality was their phone and.
Michelle: Good.
Michelle: The buildup in 2020 for us.
Michelle: All of these things combined allow us to reach better client NII level I would just like to add one more thing first of all we have to carryover right.
Michelle: For 2025 sensor there with it.
Michelle: I mean.
Michelle: And I am.
Michelle: Got to wait for NII once you lock in a sandal will continue to grow as we saw quarter on quarter.
Michelle: Or are these capacity production methods that we have in these different lines.
Michelle: Even if the spreads are lower.
Michelle: But the level of return.
Michelle: Great risk adjusted return.
Michelle: Meg or higher that was a much better level to be and portfolios with longer term like these programs. After G. I Joe there is stability.
Michelle: And went through a lot.
Michelle: Loss level is low and under control.
Michelle: I'll address that then our funding cost is coming down.
Michelle: Third point is you know that.
Michelle: We.
Michelle: Remarried some clients.
That have deposits with us.
Michelle: At a level that it's nice for the client and very positive for us.
Michelle: So there's a combination of deposits and demand deposits.
Michelle: They grew a lot cause here and this.
Michelle: Okay.
Michelle: A result of what caused you to just said and also a result of our activities. So weird growing funding at a low cost and this also helps us.
Michelle: Turns of our leverage.
Michelle: And cost and the NII margin that you talked about therefore, we know that we will gradually grow and at the same time, the absolute value will be higher.
Michelle: I mean, this has to do with our bottom line and the bottom line is.
Michelle: Okay.
Michelle: NII net of provisions I mean, NII will come in absolute terms in N. I am. It's just the result of something that we are building you know along the way.
Michelle: So next question is from you deferred.
Speaker Change: Thank you and Brad.
Michelle: Everyone.
Michelle: Yeah.
Speaker Change: I would like you to elaborate on the other expense line.
Speaker Change: I mean, what if something goes wrong I think other analysts already asked about you know question credit across the risks that could be a bit challenging or maybe not but as you can imagine it was maybe they'll by J D.
Speaker Change: I just wanted to understand.
Speaker Change: It could be a bus or it could be an adjustment line.
Anticipate a more difficult year for some reason or maybe you would delay some of their investments just to deliver the bottom line or whether it's a bank is committed to their investments maybe if something goes wrong in a costume crowded or margin.
Speaker Change: You will continue to pursue.
Speaker Change: Expenses.
Speaker Change: <unk> is a trade off you know.
Speaker Change: For like long term.
Speaker Change: It's a pleasure to talk to you again.
Speaker Change: Well this is al.
Speaker Change: First of all decision I mean, if you were just.
Speaker Change: They're not exactly formulaic down they have processes and we have to look at it in a very dynamic way.
Speaker Change: It depends on Okay lets say theres, a new pandemic coming.
Speaker Change: Coming in some of your situation, but the macro scenario.
Speaker Change: Slightly worse than what we.
Speaker Change: And if I could send out E.
Speaker Change: While the law breathing a chunk of that scenario and I referred to last quarter. It was 70 30 and now we are working Marshfield.
Speaker Change: You are cautioned in my answer, but I repeat it again and more caution here, so, but I am not pessimistic on the countries I'm very optimistic I'm very optimistic with what we're doing here at all.
Speaker Change: I'm optimistic with the opportunities we see in the market.
Speaker Change: Zero.
Speaker Change: The government.
Speaker Change: You know what.
Speaker Change: And the other company for that.
Speaker Change: Yeah.
Speaker Change: And again I say that this is an opportunity for all of us to grow depending on how they implement Brad whether there is or there is no cap.
Speaker Change: The judge of that.
Speaker Change: There are I see great opportunities in these markets.
Speaker Change: And then when she decided that Marshall.
Speaker Change: Even with them cautious scenario.
Speaker Change: Our guidance is coming from there's far more cautious scenario.
Speaker Change: Really not.
Speaker Change: This sharp investing not even though and this will have.
Speaker Change: Thank you.
Speaker Change: In fact in the next coming quarters.
Speaker Change: It takes in 2020 seven you will see that you would see for yourselves.
Speaker Change: I would just add one more thing.
Speaker Change: Fox is basically something that could be broken down into two parts. One is the best one we want to preserve because there are you know.
Speaker Change: And in both games and I will hand, the mid and long range gives you and the other as long as their visit administered or other personnel expenses admin expenses.
Speaker Change: Well below inflation.
Speaker Change: 8% total control and here again, no assumed book much.
Speaker Change: Judy just a couple of different law school Crushers, we're just revealing more autonomy.
Speaker Change: Many of them.
Speaker Change: It's really more of as a service.
Speaker Change: Yes.
Speaker Change: Regardless of the market, but he got an error. Thank you you also have the whole technical problems going swaps colors from scholars and garments alone.
Speaker Change: Okay. Thank you very much so congratulations on the results. So two questions first on the implementation of Pi of Paris.
Speaker Change: You revisit the logic why you have such a big impact on securities and why is he seems to be like graphic to Bradesco, we have not seen it in other institutions is a big amount 8 billion reais. So we wouldn't put it down exactly why this.
Speaker Change: This happens.
Speaker Change: Earlier.
Speaker Change: Last year, you were mentioned in 2026 at the year, we will reach a normalized return is still the goal that you will get there in 2026 and how would you define normalized return. Thank you.
Speaker Change: Casinos schools.
Speaker Change: Casino I think you can start to have somebody else will.
Speaker Change: Well. Thank you Karl will talk to you here.
Speaker Change: Try to.
Speaker Change: Rephrased the previews in near future.
Speaker Change: To make it more clean and whatnot.
Speaker Change: Yes.
Speaker Change: So at the moment.
Speaker Change: But the organization, there's some competitors receive and he told me yesterday mentioned.
Speaker Change: Very similar.
Speaker Change: Yeah.
Speaker Change: Any movie made the first move.
Speaker Change: So moving to that was his cockpit us at all regarding operational.
Speaker Change: We all knew about.
Speaker Change: Yes.
Speaker Change: For 90 days.
Speaker Change: There's a possibility of adjustment.
Speaker Change: That's great.
Speaker Change: In terms of criteria, we kept the same level.
Speaker Change: A L L O.
Speaker Change: It was an advise my inbox and took the basic model.
Speaker Change: Oh, okay.
Speaker Change: Tropical ization.
Speaker Change: Yes.
Speaker Change: So think in terms of.
Speaker Change: L. L has a total of 2.900 billion.
Speaker Change: So we considered that.
Speaker Change: Of.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: It would lead to a reduction in our sales.
Speaker Change: Given the.
Speaker Change: Four basis point 27 with diluted alone.
Speaker Change: So we had a minus <unk> 20.
Speaker Change: D G to his scope reduction.
Speaker Change: Zero zero.
Speaker Change: Kevin given the legal I suppose.
Speaker Change: You can add it to convert coal credits hard 2 billion 900.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Got it.
Speaker Change: So what is the possibility of a few months ago.
Speaker Change: All securities.
Speaker Change: It had to do.
Speaker Change: So that renewables.
Speaker Change: Neil.
Speaker Change: Oh.
Speaker Change: When you call.
Speaker Change: How much time cosmos.
Speaker Change: So instruments.
Speaker Change: Classification.
Speaker Change: In a nutshell.
Speaker Change: Yep.
Speaker Change: So in general I founded 75.
Speaker Change: In food.
Speaker Change: <unk> you doing.
Speaker Change: 496.
Speaker Change: I am sorry.
Speaker Change: No.
Speaker Change: I think the other thing I'll forgive me.
Speaker Change: So you know.
Speaker Change: The same instruments that we included in our balance sheet.
Speaker Change: And I will compliment yeah.
Speaker Change: Dubai.
Speaker Change: B C.
Speaker Change: What are you going to pursue that.
Speaker Change: Liver and Io, we which is oh.
Speaker Change: Yeah.
Speaker Change: On the promise that but.
Speaker Change: And we want to be under promising and over delivering.
Speaker Change: And it seems probable that this will not be normalized by 2024 months ago.
Eduardo Nishu: Growing next question from Eduardo Nishu.
Speaker Change: Danielle.
Speaker Change: Well Gee when Jeff Gordon.
Speaker Change: Hum.
Speaker Change: If I can follow up on that southern California.
Speaker Change: Regarding scenario.
Speaker Change: The scenario has changed what makes it not always as she hit the one.
Speaker Change: Good morning, he was returned to shareholders.
Speaker Change: Pushes the capital decision that keep them ubiquitous sensing and your cost of.
Speaker Change: Capital.
Speaker Change: Growing up.
Speaker Change: Okay.
Speaker Change: So there's not much else.
Speaker Change: Christine Magee.
Speaker Change: Yeah, that's close to 16.
Speaker Change: What I'm, saying.
Speaker Change: And in 2020.
Speaker Change: Okay.
Speaker Change: Hello.
Speaker Change: Question is regarding <unk>.
Speaker Change: NII.
Speaker Change: Look about English.
Speaker Change: Jackie if you can watch frustrating I think that you mean you want to.
Speaker Change: Zero.
Speaker Change: The other one is a taboo.
Speaker Change: Having a negative okay.
Speaker Change: 20 to 25.
Speaker Change: I would like to do.
Speaker Change: Right.
Speaker Change: Regarding the exact line English crossing lasagna, knowing what you mean.
Speaker Change: Got it.
Speaker Change: How much more spending.
Speaker Change: Quick question on the line and go back to a normalized level.
Speaker Change: What would be the normalized.
Speaker Change: No wonder opinion, what about you.
Speaker Change: From a strategy and implement that how does he see implement regarding the ultra yes, we do.
Speaker Change: From like Crazy.
Speaker Change: Uh huh.
Speaker Change: They do some hedging you'll come up with that.
Speaker Change: Another possibility.
Speaker Change: That's a passage I want to put a gun to her.
Speaker Change: Let me see you. Thank you for the question, it's a pleasure to see you here I'll start answering the first part of.
Speaker Change: The question for me and for another Alaska concerned.
Correct.
Speaker Change: Oh his regrets.
Speaker Change: Oh.
Speaker Change: And the cost of capital because you have a correct.
Speaker Change: When we deliver at the top when you whenever you had a different.
Speaker Change: Cost of capital.
Speaker Change: I guess my follow Galliano screws. It up so we don't we don't do them say.
Speaker Change: But if we don't match on the table.
Speaker Change: Okay.
Speaker Change: Capital was around 14%, if we get all of the variables that we have today.
Speaker Change: Is this a bigger challenge.
Speaker Change: We will get there.
Speaker Change: And it is what I said.
Speaker Change: Earlier.
Speaker Change: No.
Speaker Change: Oh, no promise anything, but we will deliver.
Speaker Change: Other promising and over delivering food at the right time, and we are advancing step by step every single thing that we were going to be delivered everything we've heard that in the <unk>.
Speaker Change: We are reaching that.
Speaker Change: Okay.
Speaker Change: Thank you Michelle and thank you Nishu.
Speaker Change: Lots of people are cyclical.
Speaker Change: I think that you raised in an appointment.
Speaker Change: Market and are you I used to have.
Speaker Change: That's because the NII.
Speaker Change: Or can you give a guy.
Speaker Change: There are a number here.
Speaker Change: Okay.
Speaker Change: And as regards the neutrality clause.
Speaker Change: We see between New Zealand.
Speaker Change: Okay My last one.
Speaker Change: Screen.
Speaker Change: Remember my son in Spirit.
Speaker Change: So we're having to put in the west with training.
Speaker Change: Thank you.
Speaker Change: In Q4, so we are working a lot.
Speaker Change: Scalage.
Speaker Change: Yeah.
Speaker Change: We do.
Speaker Change: <unk> policy is open.
Speaker Change: That has picked up a documented but we do.
Speaker Change: Right.
Speaker Change: Absolutely.
Speaker Change: And we think this kind of work.
Speaker Change: This December diminishment.
Speaker Change: So we have clarity on that.
We are much more neutral to market fluctuations.
Speaker Change: We are now in the hiking cycle.
Speaker Change: We know what the hype cycle, it's going to be felt.
Speaker Change: So overall.
Speaker Change: And Atlanta.
Speaker Change: Analyzed and that type of stuff, we don't have a.
Speaker Change: Policy, we've had good wrap up policies.
Speaker Change: Yeah.
Speaker Change: The operations, making.
Speaker Change: Kind of a H O the protection or an operation against somewhat.
Speaker Change: Hello.
Speaker Change: Got it.
Speaker Change: I understand that is a good one.
Speaker Change: Yeah.
Speaker Change: Yeah, Hi.
Speaker Change: Although we might bring them, while they're working and myself and a few.
Speaker Change: Sure.
Speaker Change: Well you will have to see what it's going to be the new normal.
Speaker Change: They stayed there for a lot of time.
Speaker Change: We utilize them.
Speaker Change: It wasn't any one person.
Speaker Change: No. It was the whole point of what happened there.
Speaker Change: Okay.
Speaker Change: However neutrality.
Speaker Change: Excellent Treasury results, how much of that is an indicator.
Speaker Change: A much more normalized markets NII and NIM. This year, when we have an interest rate hike.
Speaker Change: So the level of 2024.
Speaker Change: For Us machine.
Speaker Change: I think that this is going to cut C I noticed.
Speaker Change: So this would be a reference before you bought them.
Speaker Change: We're gonna lifestyle condition, but thank you for the question and I'll turn it to English and the next question comes from to the law BARDA from Goldman Sachs Stifel.
Speaker Change: Hi, Good morning, guys. Thank you for the call and taking my question I guess, just a couple of clarification just to make sure I understood. One is on the restructuring charges right. I mean, you had 443 million this year.
Speaker Change: $70 million in 2023 do you expect to have any more this year just want to understand how nonrecurring. These are or when do you think these restructuring charges.
Speaker Change: <unk> go away and then second question and sorry to ask again on capital I, just want to make sure that I understood. The 60 bps increase from the resolution 496, six I was.
Speaker Change: Is it clear what what drove the increase was that the reclassification of securities or just if you could just walk me through why there was an increase but I think expectations, where it would be a bit more negative. So just to make sure I'm clear. Thank you.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: So again.
Speaker Change:
Speaker Change: Hello.
Speaker Change: So to answer your first question the Proteasome.
Speaker Change: But I have put us some provisions for restructuring.
Speaker Change: Like you comment.
Speaker Change: God its focus.
Speaker Change: English Vishal mentioned I had was on the footprint in the review of our footprint not only there, but particularly there.
Speaker Change: But we've been doing as I said are much higher than that.
Speaker Change: Uh huh.
Speaker Change: Long it will last for me I mean, its it transformation, we said that our transformation will go from 'twenty to 'twenty four 'twenty 'twenty eight it's not that it would start now and it ends in 'twenty anyway, I mean, we've been deliberately and lots of things that you will continue to deliver that we've continued to reinvent see.
Speaker Change: We have a lot of investors and there are a lot of things to do in 'twenty to 'twenty five we still have a lot of them.
Speaker Change: During 'twenty.
Speaker Change: Okay.
Speaker Change: As you go on that journey.
Speaker Change: Got it.
Speaker Change: Also capturing efficiency.
Speaker Change: Everybody.
Speaker Change: Just like I said it wasn't me.
I talked about technologies, we're increasing productivity and efficiency and we manage to do that this year new technology for them.
Speaker Change: Matt.
Speaker Change: Therefore, we will continue to pursue that and certainly where we were.
Speaker Change: Further benefits as the years go by $26 27, and so on and I think, especially I know you kind of talk about that 60 basis points. When he talked about capital growth with a 49 67. Thank you nice to meet you.
Speaker Change: Yeah.
Speaker Change: Sure.
Speaker Change: Let me try to basically zero 60 it comes from.
Speaker Change: That's what I said on the previous answers the reclassification of securities for our various cost model for every operation.
Speaker Change: Operation of your model.
Speaker Change: That has allowed us to get to that theory.
Speaker Change: But as a reminder, within that number I had two negative.
Speaker Change: Zero 20 comes round not risking zero-zero seven comes from the legislation of the adjustment.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Loan loss provisions, so we had a 12 point.
12 point will have meaningful data.
Speaker Change: December 30 <unk>.
Speaker Change: And so.
Speaker Change: First our you'll see I S ratio, we're suggesting.
Speaker Change: There are some upfront of the adjusted definitely it comes from.
Laura Martin: Martin stomach Martin I'll put in March.
Speaker Change: <unk>.
Speaker Change: This is something.
Speaker Change: Regulated according to 496 to six in the U I F. R. Because that's where there's positive getting friends who comes five sounds like Keith I'd also so now we conclude our Q&A session consume a fish bowl there unless I keep getting the questions that were not answered in our IR team will shortly answer.
Speaker Change: So the answer them right. After the presentation is available in our IR website. This presentation other earnings.
Marcelo: Other presentations, so now I'll turn the floor to Marcelo to Computershare augmentation, Thank everyone's I think about California.
Marcelo: And thank you all of you who works with us. Thank you.
Marcelo: Some analysts and some of them I'll spend our time with us.
Marcelo: And joined US in this earnings release call for the fourth quarter of 2024.
Marcelo: So we are certainly open to talk to sell side by side.
Any other investor in that.
Marcelo: For further clarification.
Marcelo: And once again I must say.
Marcelo: We are pursuing a very cautious, but we remain optimistic in terms of what you're doing and what could be the next person comes out scenario for myself. So I wish you a very weekend. Thank you.
Marcelo: Yeah.
Marcelo: Okay.
Marcelo: Hum.
Marcelo: Right.
Marcelo:
Marcelo: Hum.
Marcelo: Okay.
Marcelo: Yeah.
Marcelo: Oh.
Marcelo: Okay.
Marcelo: [music].
Marcelo: Okay.
Marcelo: Yeah.