Q1 2025 Grupo Supervielle SA Earnings Call
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Speaker Change: But we injected a slightly sequentially, reflecting softer demand from corporate clients.
Speaker Change: Temperature liquidity and cautious macro backdrop that said our market share remains stable and we are well position to reaccelerate and commercial lending as demand recovers.
Speaker Change: Yes.
Speaker Change: Turning to page six.
Speaker Change: <unk> reached a loans personal loans is two now.
Speaker Change: 29% quarter on quarter, a more than quadrupling versus the first quarter of last year.
Speaker Change: Loans, followed writing, 12% sequentially and growing nearly six fold year on year.
Speaker Change: In term credit cards rose, 5% quarter on quarter and nearly doubled year on year.
Speaker Change: On the commercial side knows declined 4% sequentially, mainly reflecting a declining dollar denominated loan demand in a context of strong volatility in anticipation of the lifting of FX contracts.
Speaker Change: Moving on to page seven.
Speaker Change: As anticipated our NPL ratio reached 2% this quarter, primarily reflecting rapid expansion in retail loans.
Speaker Change: While these marks a normalization from historically low levels. It remains in line with the industrial benchmarks and consistent with our risk pricing.
Speaker Change: The coverage ratio at 153% continues to reflect a prudent buffer.
Speaker Change: By segment delinquency in the retail portfolio increased to two 8%, while SME and corporate loans stood at one 3%.
Speaker Change: Importantly, all levels remained within our expected range.
Speaker Change: Cost of risk rose, two 5%, reflecting higher provision aligned with retail loan growth in line with our expected credit loss model.
Speaker Change: As these loans gain share we're actively refining our origination and collection models to sustain asset quality and protect returns.
Speaker Change: In our retail portfolio.
Speaker Change: Prioritize credit quality and long term relationship value.
Speaker Change: Currently 53% of loans to individuals.
Speaker Change: Are tied to payroll and pension account.
Speaker Change: Segments associated with lower risk and stronger retention.
Speaker Change: Notably 88% of personal loans and over half of credit card volume is sourced from these claims underscoring the strength of this channel.
Speaker Change: Additionally, 57% of retail loans extended to the open market are fully collateralized.
Speaker Change: Through car loans supporting disciplined growth and enhance great quality.
Speaker Change: With respect to commercial loans 25, 27% of this book is secured by <unk>, She will guarantee and three quarters of nonperforming exposures are collateralized.
Speaker Change: Our exposure remains well diversified with our top 10 corporate clients, representing just 8% of total loans.
Speaker Change: Moving to slide seven.
Speaker Change: <unk> related net financial income rose, 17% percent sequentially, reflecting the momentum in retail lending.
Speaker Change: Loan portfolio NIM improved 60 bps to 21, 3% in the Purion also benefiting from the growing share of higher yield products and the lower funding cost base.
Speaker Change: In contrast, a correction in bond valuations triggered by renewed FX volatility together with a more restrictive monetary policy resulted in a sharp decline in the investment portfolio net financial income.
Speaker Change: As a result total net financial income declined 12% quarter over quarter.
Speaker Change: These trends reflect the resilience of our client franchise and validates our strategic shift towards diversified sources of income.
Speaker Change: Now please turn to slide 10.
Speaker Change: In the context of a transition year, we're slightly adjusting our loan NPL and cost of risk targets for the full year.
Speaker Change: Starting with loans dollar denominated lending declined nearly 10% sequentially, while peso loans rose, 6% broadly in line with industry trends.
Speaker Change: For the full year, we now expect to deliver real loan growth between 50% to 60% contingent on monetary policy.
Speaker Change: This compares to our prior perspective of over 60% growth.
Speaker Change: Retail loans are expected to remain above 50% of the portfolio.
Speaker Change: In terms of funding peso deposits were up 12% sequentially, while dollar denominated deposits were practically flat.
Speaker Change: We continue to expect 40% growth in total deposits for the full year supported by a rising share of dollar balances and a strong traction in remunerated accounts, while peso deposits remained sensitive to monetary policy.
Speaker Change: On asset quality, we now expect the NPL ratio to range between $2 two to two 5% at year end.
Speaker Change: Up from our original expectation of 2% and two 2%.
Speaker Change: <unk> higher weight of retail loans.
Speaker Change: Net cost of risk expectation now.
Speaker Change: Now range between four to four 5% compared to our prior range of three 7% to 4% or higher share of retail loans.
Speaker Change: We also expect NIM to continue to normalize in the 18% to 20% range.
Speaker Change: <unk> continues to ease leverage rather than increases and the mix shift toward Turner denominated loans and deposits.
Speaker Change: Turning to slide 11, we continue to expect fee income to grow by at least 10% in real terms in 2025.
Speaker Change: As discussed in our prior call, we anticipate fee income to be driven by higher net bank and brokerage fees, along with higher penetration of investment and insurance products across our client base.
Speaker Change: On the cost side operating expenses were down 12% sequentially and 17% year over year, reflecting our focus on driving driving real term reductions through workforce optimization and other initiatives.
Speaker Change: We expect this to further strengthen operating leverage as we continue to cut costs and drive revenue growth.
Speaker Change: As a result, we continue to expect our ROE to improve progressively reaching between 12 and 15% for the year, reflecting marching stabilization stronger fee contribution and the benefits of the structural efficiencies.
Speaker Change: We also maintained our yearend CET, one ratio expectations of 12% to 13% factor.
Speaker Change: Factoring loan growth and regulatory adjustments.
Speaker Change: In sum, we remain focused on disciplined execution balancing growth efficiency and capital preservation.
Speaker Change: We are closely monitoring the macro and regulatory landscape and are confident in our ability to navigate the evolving context and these emerging opportunities.
Speaker Change: Finally additional agents on our quarterly performance are available in the appendix of our earnings presentation.
Speaker Change: With that.
Speaker Change: Right.
Speaker Change: Thank you Mariana at this time, we'll be conducting a question and answer.
Speaker Change: As a reminder to ask a question you need to be connected.
Speaker Change: Uh huh.
Speaker Change: I will ask a question.
Speaker Change: Backhaul on pricing.
Speaker Change: Thank you.
Speaker Change: And you're right.
Speaker Change: Yes.
Speaker Change: We will ask you to limit your.
Speaker Change: That's one question.
Speaker Change: And then you've got right.
Speaker Change: Sure.
Speaker Change: One last one quick one for Frank.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: With bank of America.
Speaker Change: Right.
Speaker Change: Please go ahead thank.
Speaker Change: Thank you hi, good morning, Patricio Barco Madame on all your team.
Speaker Change: My question will be on asset quality.
Speaker Change: We noted the MPL ratio normalize to 2%.
Speaker Change: But at the same time, we also saw an important increase in provision charges and cost of risk.
Speaker Change: So can you elaborate if there is any travel corporate any which sector.
Speaker Change: For example, any color in the agriculture sector.
Speaker Change: And how should we think about the evolution of the cost of risk throughout the year.
Speaker Change: Especially as it was I think.
Speaker Change: <unk> <unk> two in the first quarter.
Speaker Change: But you are expecting to be the guidance for the full year.
Speaker Change: Between four to four 5%. Thank you.
Speaker Change: Uh huh.
Speaker Change: Thank you all my staff for your question.
Speaker Change: First of all.
Speaker Change: I have to say that.
Speaker Change: And he's.
Speaker Change: What we are seeing is a normalization of.
Speaker Change: Credit in the market.
Speaker Change: What do you see the npls are coming to the team.
Speaker Change: And all of our NAV level from INR levels previously.
Speaker Change: So.
Speaker Change: We are very comfortable with our with our risk controls.
Speaker Change: And the retail enterprises.
Speaker Change: Okay.
Speaker Change: Still no indemnity in there.
Speaker Change: Argentina and so.
Speaker Change: So these species and home organization, what this increase of NPL and you saw in the quarter. He is.
Speaker Change: As to the growth of the loan portfolio, particularly on the retail sector. Please.
Speaker Change: Want to answer more specific.
Speaker Change: Thank you all.
Speaker Change: On your question.
Speaker Change: Regarding the settlement.
Speaker Change: No.
Speaker Change: And also our portfolio is balancing market worse.
Speaker Change: Retail segment.
Speaker Change: So that's why we are all healthier and increasing npls.
Speaker Change: The cost of risk.
Speaker Change: Regarding our guidance for the full year.
Speaker Change: We are slightly increasing.
Anna: Thanks Anna.
Anna: Now in the range of two to two 2%.
Speaker Change: We are in.
Speaker Change: The range of 22 to two <unk>.
Anna: Hi.
Anna: And that's basically it.
Anna: Off of the compensation of the portfolio more towards retail.
Anna: So that's also what are the way to make the cost of risk also to range between four and four.
Anna: Four 5% instead of three months.
Anna: Two 4%.
Anna: Previously.
Anna: So that's not a.
Anna: We are not seeing a.
Anna: Yeah.
Anna: And any product on the rig.
Anna: Cultural sector.
Anna: Corporate side, if you will.
Anna: See the evolution of the M P at the conference.
Anna: Quite a stable compared to.
Anna: Arthur.
Anna: Yes.
Anna: We now have new homes are fine.
Anna: Okay.
Anna: In the last months of last year.
Anna: But we are seeing a good behavior on that.
Anna: Perfect.
Anna: Sorry.
Anna: Page five you can see the one year ago, we shop.
Anna: 64%.
Anna: For commercial loans and 36 farm retail loans are now this this quarter we have <unk>.
Anna: 52% for individual loans for proton launch.
Anna: 48 for commercial so that's thus the Franklin compositions explain the figures that you are seeing today.
Anna: Yes.
Anna: Nice to also compliment.
Anna: And while you look for instance for unsecured loans for individuals in terms of personal loans the bulk is.
Anna: Now on.
Anna: Payroll account orphan cheniere.
Anna: Sure.
Anna: We are very confident on that and also at <unk>.
Anna: If it is if it is an open market.
Anna: If on the bulk of the loans is car loans, which are basically secured by by the loan by the by the car health. So we're pretty comfortable on that also.
Anna: Perfect. Thank you. So just a follow up in terms of cost of risk because I believe it was around 5% of the cost of risk in the first quarter.
Anna: But you are guiding for the full year between 4% to four 5%.
Anna: The worst of the customer reach already happened in the first quarter and it should be improving throughout the rest of the year. As you were saying the bulk is in payroll loans pension years and in auto loans is that is that what.
Anna: What we should expect.
Anna: Yes, correct. The net cost of risk was $4 eight so it's slightly above the range for the full year. So we should see that cost of risk.
Anna: Bromine in following quarters.
Anna: Having a full year within that range, where we are we are working on the approved cost of rigs going for us. So yes, we are keeping.
Anna: The upfront.
Anna: Four 5% of concentrate but we are working on a new measures in order to give the numbers.
Anna: Perfect. Thank you very much.
Anna: Thank you our next call.
Anna: Our next.
Speaker Change: Next question will come from Brian Flores, with Citibank and now with R&M Brian Please.
Speaker Change: Please go ahead.
Speaker Change: Hi, Tim Good morning, I have a question on capital because.
Anna: You might have the lowest position among incumbents.
Anna: In the last 12 months have consume around 10 percentage points of tier one which comes to around 250 bps per quarter. So you were already a 250.
Anna: I mean 15.
Anna: Which means that to go to the 12% to 13% range Youre, saying by the end of the year, you will need to be consuming significantly less than you had so a question on on your risk appetite should we continue seeing.
Anna: The aggressive growth we have seen.
Anna: Should we expect you to defend the market share you have gains I know Patricia and the report you mentioned the 40 bps market share gain you had in the last months. So should we continue to see you I would say aggressively defending or pursuing more market share or should we see a bit more I would say.
Anna: Caution on origination and if you could expand on which segments that also would be great. Thank you.
Anna: First of all.
Anna: What's happening is that.
Anna: In the fourth quarter of last year.
Anna: We anticipated market growth that maybe there was a catch up in the first quarter of this year from from the rest of the banks. So this wasn't an anticipation.
Anna: Pat.
Anna: Our risk appetite has not changed it is as I said previously.
Anna: We are starting from very low levels of taps for corporations and individuals and disease.
Anna: We believe that is a great opportunity for our financial system looking forward.
Anna: With inflation continued to go down and also expected in the pump at some time also nominal rates to go down so that would be very positive for the credit side and regarding.
Anna: The portfolio mix in order to sustain what you mention.
Anna: The sustained capital 11, it's essential to also to gradually mixed.
Anna: Change the mix of the portfolio from from a.
Anna: Corporates to two individuals buckle recently mentioned.
Anna: Jeff mentioned the change that occurred from our first talk from the beginning of last year till now in terms of giving more way for retail loans and this should continue gradually to to increase the ratio of in the fall of retail loans in order to defend.
Anna: Our return on equity return on equity. Additionally.
Anna: Backhaul is also has implemented stringent measures in terms of cost controls that you can see in the you can continue to see these in the first quarter.
Anna: Also in personnel.
Anna: I mean to administer.
Anna: Fences, and more Russia, and onshore being more let's say.
Anna: Hi discipline also on invest on the investment side for asphalt technology more focus.
Anna: And finally.
Anna: I believe that there is a challenge for the entire financial industry, which is expanding and leverage on our financial our financial industry and because of the leverage is very low and so we will be looking forward to expand our leverage two X two and all the work to sustain the written.
Anna: Turn on equity I hope I have given you.
Anna: Honestly I don't know if you want to make smart.
Anna: Great. So just to summarize we understand based on your presentation. As you mentioned names should continue coming down asset quality, perhaps or it's more pressure both within control.
Anna: So basically what youre, saying is perhaps a lower risk density helping the ratio.
Anna: But also more leverage also helping achieving better Liberals or are we just summarize this is a correct picture into in 'twenty five.
Anna: Yes, I think that is correct, yes, that's correct Brian.
Anna: A range of tier one capital ratio that we gave is consistent with the rest of the project chance of loan growth.
Anna: The other measures.
Anna: Thank you.
Anna: Thank you Brian Thank you Brian.
Anna: Question now.
Anna: Now from Carlo Amit.
Anna: HSBC.
Anna: Morning Pablo.
Anna: We're asking questions. Please go ahead.
Speaker Change: Thank you good morning, and as always thank you for the very detailed presentation.
Speaker Change: I have a question on the deposit side.
Speaker Change: You mentioned that you have a 12% increase quarter on quarter, but when I look at page 17 of your presentation I see that.
Speaker Change: That is mostly on the wholesale side.
Speaker Change: Now you expect 40% increase in deposits in real terms in the year. What makes you think that you're going to achieve that rate of growth and with all types of funding for funding do you think you can count on thank you.
Speaker Change: Let me give you briefly general answer then tackle with will complement basically.
Speaker Change: <unk>.
Speaker Change: It has been if you look if you would put context to what happened in the last few years in the financial AMC in Argentina.
Speaker Change: It was.
Speaker Change: Issue of disintermediation.
Speaker Change: Currently because Uh huh.
Speaker Change: We have impressive financial frame from impressive okay.
Speaker Change: The Central Bank.
Speaker Change: At that time.
Speaker Change: Sandra.
Speaker Change: <unk> taken deposits on in the banks and what happen is.
Speaker Change: A large chunk of our off more of the savings of the transaction.
Speaker Change: Funding Sony of enterprise and individuals that went into money market accounts. These money market accounts finally ended.
Speaker Change: And they continue to and are.
Speaker Change: They come to the banks.
Speaker Change: Remunerated accounts, which according to Bayesian.
Speaker Change: It.
Speaker Change: Amazing rules and these kind of only fund.
Speaker Change: <unk> Securities.
Speaker Change: So.
Speaker Change: The challenge is to increase cost of deposits and this is exactly what we are tackling Banco Superman is husky is I think the first bank really too to take seriously this issue and tackling nature of retail organic any possibility and I'm, making sure that the <unk>.
Speaker Change: It was on the enterprise a start deposit and in in.
Speaker Change: And in our bank.
Speaker Change: I'd like to.
Speaker Change: If you can explain why.
Quinton: So basically we launch early early April Quinton I wanted out of that particular day.
Speaker Change: Oriented account for the apparel customer also discuss you showing the presentation, we have a huge focus on the payroll accounts customers sector basically.
Speaker Change: We have excellent results in order to.
Speaker Change: And we see the balances of those customers basically they're all stable and also increase the balances I guess the previous months. So we launch but as you mentioned, we launched a very disruptive and different probe.
Speaker Change: For the market.
Speaker Change: <unk>.
Speaker Change: While the advanced grid basically in order to compete they did through the feed it with that so we have excellent result, us one months.
Speaker Change: Doug.
Speaker Change: And when we launch.
Speaker Change: I think it's a matter of digi.
Speaker Change: <unk> response for the.
Speaker Change: The challenge that we have for the year for the whole year in order to reach the goals that we.
Speaker Change: So I feel confident about that because we have a very.
Speaker Change: Huge I'm very current strategic plan in place.
Speaker Change: If I might on complement.
Speaker Change: The challenge and the goal that <unk> set or the bank is to pay the cost of these would not be raising that comes with reduction of expenses. So this is pure value creation for for the bank.
Speaker Change: In addition, let me tell you that if you look at international and experiences that have.
Speaker Change: <unk> already other plays like this in the market for instance, quintile arrive.
Speaker Change: Int direct in Spain. In 1999 was very successful also you have I don't know exactly and Chilean now in the last four years Banco Consortia is another successful example of what we are trying to do and we are well.
Speaker Change: We are very confident on that.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Can you tell us how much you are paying for the remunerated accounts and can you give us the starting point on how many salary accounts you have now and what would be a good outcome for you by the end of the year.
Speaker Change: We are paying 32% annually.
Speaker Change: Interest rate.
Speaker Change: Sure.
Speaker Change: As of today.
Speaker Change: Of our customer base are in this new product <unk> that we are.
Speaker Change: We are attracting the colorful.
Speaker Change: Art.
Speaker Change: We are launching.
Speaker Change: Through the our sales force and through all of the branches.
Speaker Change: Selling then then you approve for the customers and also for the SME segment also because.
Speaker Change: Yeah.
Speaker Change: We also because we don't say we launch also remunerated accounts for the SME segment not only.
Speaker Change: For Big Firewall services also for this for me. So we launch the these quintile I wanted to add that for the whole ecosystem for the company and for the employees.
Speaker Change: Basically we have kind of thought.
Speaker Change: They've got some I just said to the quinto.
Speaker Change: And we're looking for the another 50% and also we launch them very very intensive incentive for all our branches and so forth in order to sell these burn for the.
Speaker Change: Open market.
Speaker Change: Yeah.
Speaker Change: And one final clarification, when you say that household acceptance or this has clients that before did not have preliminary could account and therefore, they will be pure cash now.
Speaker Change: Now they keep.
Speaker Change: Yes, but now youre paying 32% only threat I mean, the initial impact should be <unk>.
Speaker Change: Interest expense should I understand that correctly.
Speaker Change: Okay.
Speaker Change: Higher interest expense.
Speaker Change: But at the same time, it's a high intensity as.
Speaker Change: As we said we will compensate this with cost reduction.
Speaker Change: That doesn't mean that there was another factor that I tried to explain before is that if.
Speaker Change: If you see the behavior of typically indeed, what.
Speaker Change: What they do with that transaction of monies is they they invest in money markets and this is.
Speaker Change: This is not the cost of deposits because these money market as I said, they come as remunerated accounts and it's not it's not.
Speaker Change: So what we're trying to change the behavior the money was getting out of the banks.
Speaker Change: All financial system and go into money market accounts to money market funds. So.
Speaker Change: This is this is a structural play and.
Speaker Change: We believe.
Speaker Change: Do you understand so it's so basically what we are.
Speaker Change: Please imbalances not only paying more of course of the people who are who are staying with us but also we are increasing the balance of our own clients because we are changing Debbie havier.
Speaker Change: I hope that's clear.
Speaker Change: Okay, Yeah, Carlos <unk> to be clear, we don't we don't we don't expect at all we don't have or will have more.
Speaker Change: Cost financial cost for this initiative, we will cover that at.
Speaker Change: These are of course.
Speaker Change: <unk> expense cuts.
Speaker Change: Very clear thank you.
Speaker Change: Yes.
Speaker Change: It's important to highlight that point of interest we pay on their on their balances on a savings account or payroll customers up to 1 million pesos of balance which is very competitive compared.
Speaker Change: With banks that don't pay anything on with also with Fintech.
Speaker Change: Uh huh.
Speaker Change: Hello.
Speaker Change: Also there is a cost.
Speaker Change: Yes.
Speaker Change: Because if they've got their own remains more balances we earn money on that parcel in fact lines.
Speaker Change: Great.
Speaker Change: Not that way so there's a ceiling I've mentioned.
Speaker Change: And there's a ceiling on what we remunerate, our 1 million pesos.
Speaker Change: Basically.
Speaker Change: We can send it.
Speaker Change: Excuse me above.
Speaker Change: About $1 million, we do not grant money rates. This is for the case of individuals in the case of of corporations.
Speaker Change: What's different is basically what we were before rebounding in rating they need to have a balance with.
Speaker Change: Up to a certain amount of 25 different countries.
Speaker Change: Julian.
Speaker Change: With no remuneration above that we remunerate, so it's a different it's a different restaurant.
Speaker Change: Right. Okay. So deliveries however, the rate is 18%, yes, it's different range.
Speaker Change: But again thank you.
Speaker Change: Thank you Paolo I assume we have a couple of questions here.
Speaker Change: And why.
Speaker Change: Yeah.
Speaker Change: And we have got security.
Speaker Change: We have talked myself, maybe wendell.
Speaker Change: With the two questions at the same time.
Speaker Change: Looking at margin dropped sharply.
Speaker Change: 19, 2% from 61.8.
Speaker Change: Hi.
Speaker Change: Sarah.
Speaker Change: Nine in Pakistan.
Speaker Change: What were the main drivers.
Speaker Change: You expect a recovery going forward.
Speaker Change: Then mostly coming from the NIM compression of net income.
Speaker Change: Ken.
Ken: Thank you.
Ken: Our 99 year on year.
Ken: Yeah.
Ken: Well, let me take on if we get to three five.
Speaker Change: Ladies and expectation.
Speaker Change: Uh huh.
Mariano: I will let Mariano to answer this question, but first.
Speaker Change: Like to say that in the first quarter.
Mariano: <unk> went.
Speaker Change: What happened on saw what affected the knee in the net interest margin as well.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: The deterioration of the prices of.
Speaker Change: The Securities Government Securities and this this has to do with.
Speaker Change: As you know there were uncertainties during the beauty doing.
Speaker Change: Particularly March.
Speaker Change: March.
Speaker Change: In April also.
Speaker Change: Related to the.
Speaker Change: The.
Speaker Change: Creation of reserves and the expectation of an IMF agreement. So this affected the prices and this effect what you see there.
Speaker Change: F. Afterwards, there was a change but this is not of course reflected in the cost in the first Q. It was a positive change but.
Speaker Change: So please you want to complement you.
Speaker Change: Sure.
Speaker Change:
Speaker Change: When you compare it to first call 24.
Speaker Change: Yeah.
Speaker Change: Also if you compare what are what are the main driver.
Speaker Change: Our team on the best.
Speaker Change: Yes.
Speaker Change: First year 24 was completely extraordinary.
Speaker Change: The name of <unk>.
Speaker Change: More than 60%.
Speaker Change: You know, it's not so sustained over 95, we saw that a decrease from quarter to quarter.
Speaker Change: Last year.
Speaker Change: Why we haven't starting now.
Speaker Change: As a result.
Speaker Change: From an investment portfolio about asking on environmental much higher interest rates are much higher.
Speaker Change: Then when you compare quarter on quarter, although at installation of <unk>.
Speaker Change: You will see is you'll see that the chart. We showed on page nine the decrease in <unk> on the investment portfolio.
Speaker Change: And that is related to mainly due to the volatility that we saw in the first quarter 'twenty five.
Speaker Change: With no results.
Speaker Change: The treasury positions.
Speaker Change: But the the loan portfolio remains flat.
Speaker Change: But it increased slightly.
Speaker Change: This also explains why we are migrating and we started doing that.
Speaker Change: Year ago migrating the asset composition from.
Speaker Change: Securities Securities too.
Speaker Change: Lots.
Speaker Change: So that's the those are the main drivers.
Speaker Change: I think it would have.
Speaker Change: Another question from deal here, how do you see the impact of the recent government measures. So I'll now declare.
Speaker Change: You'll see in the economy.
Speaker Change: Okay.
Speaker Change: And I think in Chile.
Speaker Change: When.
Speaker Change: Yet we need to see it.
Speaker Change: Because there are certain details, particularly on the fees.
Speaker Change: Okay.
Speaker Change: Aspects of these.
Speaker Change: The government intends to do that leads to buses from Congress.
Speaker Change: Because it implies.
Speaker Change: Taxes.
Speaker Change: Tax regulation.
Speaker Change: I mean, I think it's positive in defense.
Speaker Change: There will be yeah.
Speaker Change: They want to put incentives.
Speaker Change: Consumption and incentives of usages of our dollar debt.
Speaker Change: And today.
Speaker Change: If you read what they have in safety Apotex deposits. This is these are measures.
Speaker Change: To favor the tandem.
Speaker Change: Immediately come segment of the country.
Speaker Change: And and of course, I think it is very positive.
Speaker Change: At the same time it is possible it is possible.
Speaker Change: That they.
Speaker Change: There will be changes.
Speaker Change: In the regulations of the Central Bank.
Speaker Change: In terms of.
Speaker Change: As you know properly.
Speaker Change: Why.
Speaker Change: The money that is not 10.
Speaker Change: He is not given in loan in Youre in donor knowns to corporations.
Speaker Change: It basically is deposits at the central bank and with no interest.
Speaker Change:
Speaker Change: I believe that there will be a change on that side and that change in order to.
Speaker Change: To adapt more to international levels.
Speaker Change: And therefore provide them.
Speaker Change: Higher or better value proposition for St. Four forces are saving our savings in dollars. So this.
Speaker Change: These measures that you mentioned, we probably complement I think I expect it would be probably complement it also with a changing regulation.
Speaker Change: Bye.
Speaker Change: Remunerating our deposit.
Speaker Change: Somehow.
Speaker Change: This is my expectation.
Speaker Change: And we have another question.
Speaker Change: Brian Snider.
Speaker Change: Please go ahead.
Speaker Change: Hi team. Thank you for the follow up just a quick question. If you could remind us a return on the density of risk weights and particularly.
Speaker Change: I think Monsanto made a very interesting comment of course on I think the system is shifting from public securities, which we understand have a risk weight of zero two.
Speaker Change: In your case I would be more exposure on the retail side. So just can you remind us of the ranges.
Speaker Change: Risk density I think if I'm not mistaken it's anywhere between 50 to 150, but then on the retail side wherever you were focusing on maybe with guarantees this could be lower just to understand a bit more.
Speaker Change: On the technical side. Thank you.
Speaker Change: Yes, so what it basically.
Speaker Change: Especially securities.
Speaker Change: Oh Treasury.
Speaker Change: They don't have them.
Speaker Change: Capital requirements are east, Brazil is more related to market risk, but on those.
Speaker Change: Pressure is on the investment portfolio they don't have.
Speaker Change:
Speaker Change: Credit risk weighted assets.
Speaker Change: Capital requirements, it's not a completely zero.
Speaker Change: But of course, as we migrate to the loan portfolio.
Speaker Change: Yeah, there are higher capital requirements, because recently at that rate and also when you increase the <unk>.
Speaker Change: That's because they already are directly reaching assets not only changing the composition.
Speaker Change: At NTT.
Speaker Change: Okay.
Speaker Change: My role is 100% there are some.
Speaker Change: Exceptions, our waiver for third time.
Speaker Change: Yeah.
Speaker Change: For certain loans, mainly 20 V. The waters with could be lower to 75%.
Speaker Change: Ill turn it on.
Speaker Change: Mortgage loans.
Speaker Change: <unk> credits for consumption.
Speaker Change: I'm going to 275.
Speaker Change: One kind of on faith 50 is more related with nonperforming loans with certain.
Speaker Change: Secured nonperforming loans, but that is not at all.
Matthew: Matthew again.
Matthew: And by that.
Matthew: That's at least a brief.
Matthew: I don't know if I answered your question.
Matthew: Thank you very helpful.
Ryan: Thank you Ryan.
Ryan: So from a long haul myself with HSBC.
Ryan: I Love your thought of Yoga now yes.
Ryan: Thank you so much just to follow up on the capital question.
Ryan: The change in regulation, you referred to it in your presentation, I think you'd say, one 4%, but it's not clear to me that said reduction in copper.
Ryan: Capital ratio because of the tissue regulation or anchors because in.
Ryan: Some other banks have seen that the impact was favorable not the state, but also if you could clarify what the change of regulation is how much it affects you and going back to the target 12% to 13% by the end of the year.
Ryan: You continue to grow very fast what is the minimum that you would consider acceptable going into the following year and would it be reasonable to expect that at some point you will make up the market for more equity if the growth continues to be favorable.
Ryan: Yeah.
Ryan: Okay My.
Ryan: I lost the last part of your question, we are comfortable with that.
Ryan: With the capital levels and.
Ryan: Yeah.
Ryan: If.
Ryan: There is a huge win.
Ryan: Continue to see a huge demand.
Ryan: These in demand of loans.
Ryan: For 2026 and the market is.
Ryan: It is possible that we might we may tap the market.
Ryan: Or for capital D C D C.
Ryan: We are looking into these but it's not in our plans as of today, but do you want to complement on that.
Ryan: Sorry.
Speaker Change: Yes, sure Carlos regarding the first part of your question.
Ryan: It's correct that we said they are.
Speaker Change: A presentation.
Speaker Change: The changes in regulation or mainly for operational risk.
Speaker Change: What's also interesting.
Speaker Change: Appetite for credit risk.
Speaker Change: And what's important for us one of operational risk.
Speaker Change: That made the tier one ratio decreased by one 4%.
Speaker Change: And that is related to an increase in the risk weighted assets, it's not a higher reduction of or less capital.
Speaker Change: Having risk risk weighted assets because it increases the capital requirement for operational risks.
Speaker Change:
Speaker Change: Okay.
Speaker Change: It is permanent.
Speaker Change: They they change is permanent although we are.
Speaker Change: Having a discussion with the central bank because it affected.
Speaker Change: Yeah.
Speaker Change: In a more punitive way.
Speaker Change: Thanks, Paul.
Speaker Change: Medium size and I.
Speaker Change: I would say Sherri is like a waiver for the smallest one.
Speaker Change: Yeah.
Speaker Change: Entities with systemic risk they can adopt a beta three.
Speaker Change: And then most beauty gave me the immediate where we are so we are at.
Speaker Change: Expecting.
Speaker Change: And director will review that and allow us to add up.
Speaker Change: Basal III if that doesn't change.
Speaker Change: Are they permanent but it should decrease over time because what.
Speaker Change: That regulation change is that we have to adjust for inflation on the past.
Speaker Change: Revenues.
Speaker Change: The base for the calculation of the operational risk and if you go back to yes, with very high inflation revenues are very high because they need to compensate for inflation. So.
Speaker Change: The operational risk weighted assets.
Speaker Change:
Speaker Change: Barry.
Speaker Change: The capital requirements of that should decrease over time and because inflation decreases in revenue.
Speaker Change: No that's very clear and again now.
Speaker Change: And I know youre comfortable today, but.
Speaker Change: What is the level at which you are not comfortable with 12%, 11% and 10% what is the absolute minimum that they would like to run the bank line.
Speaker Change: Whereas when we feel comfortable with an eight.
Speaker Change: 1%.
Speaker Change: Yeah.
Speaker Change: Tier one ratio on top of that as we always say, we cannot tier two which right now we don't have.
Speaker Change: We didn't need it in the past so in the last year, we didn't come in here to all of our hepatitis C. Two one.
Speaker Change: We called we call that.
Speaker Change: Tier two.
Speaker Change: Opportunity.
Speaker Change: We would we feel comfortable.
Speaker Change: With 11% or more.
Speaker Change: In fact that you might be.
Speaker Change: An efficient use of capital so again, it's 11% tier one of 11% total.
Speaker Change: We're targeting 11.
Speaker Change: 11% tier one.
Speaker Change: 11% tier one okay.
Speaker Change: I always remember that the minimum capital requirement is 8% and 10.
Speaker Change: 10, and a half if we want to pay dividend, although we are not paying dividends from the bank. We just received the events.
Speaker Change: The insurance and the asset monitor subsidiary.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Thank you Laura.
Speaker Change: We have reached the end of today's Q&A.
Speaker Change: Hillary.
Speaker Change: Let me turn in the Q&A box framing Nasional samples.
Speaker Change: Im sorry pardon me back in line.
Speaker Change: Thank you for taking my questions. The question is regarding the rule will fighting for 'twenty estimated for 2025 could you break down in terms of rate.
Speaker Change: Liabilities.
Speaker Change: What level of rate.
Speaker Change: Are you estimating an offset on the funding.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change:
Speaker Change: Let me tell you about there the reference interest rate from there.
Speaker Change: It's a starting point for price an asset which are they are very different regarding the segment.
Speaker Change: And the product.
Speaker Change: But we see that the reference.
Speaker Change: Right.
Speaker Change: Thanks, David.
Speaker Change: The next few months and then to degree completion decreases.
Speaker Change: Interest rates decreased spot.
Speaker Change: Particularly in our return of capital controls, we think we will see positive real interest rates.
Speaker Change: So the path that we see for inflation.
Speaker Change: Recent inflation.
Speaker Change: And an increasing interest rate a few months from now nothing yet so so that will lead to positive interest rates.
Speaker Change: The stated of course.
Speaker Change: Both loans are.
Speaker Change: Time deposits.
Speaker Change: Uh huh.
Speaker Change: We will price our R. R.
Speaker Change: At the time.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Hey, there's no yes, we have reached the end of today's Q&A session.
Speaker Change: Thank you for joining us today, we appreciate your interest in the company we look forward.
Speaker Change: Forward to meeting more of you opening how many weeks or months.
Speaker Change: And providing financial and business update.
Speaker Change: Right.
Speaker Change: Thanks Pat.
Speaker Change: You may now available funds for any questions you may have.
Speaker Change: I would say.
Speaker Change: Good.