Q3 2025 Banco Bradesco SA Earnings Call

Good morning, everyone. I am speaking straight from bescos headquarter, to present some details on the results for the third quarter of 2025. I think you've had the opportunity to read the results that were published last night. I think you had the opportunity to read it and just see a few things related to our results. So I'll start by saying that our recurring net income was 6.2 billion this quarter, that means that it was up 2.3% year on year. Our Roe was up 14th. What was up 1% in points? Posting 14.7%. So we had a very sound and consistent result considering

Everything that we've been saying to you in the past 7 quarters, you know, this was after our transformation plan. So basically here we're talking about profitability. So profitability maintains gradual growth and secure growth with operating consistency. All you have to do is look at all the lines revenues continue to grow in almost all lines.

And I, I and I, and I, I net a provision income, the insurance group, and other related companies. And the highlight goes to client need, the liquidity rates remain under control. The restructured portfolio comes down, as you will see further on, and our secured portfolio grows quarter on quarter, reaching almost 60%. Operating expenses are in line with expectations and very much contained. Expenses are under control, and I will elaborate further on that topic. We also anticipated our footprint adjustments, and the members are higher than expected. Once again, we were able to deliver a sound performance of the insurance group with ROAE over 21%. This slide.

Brings a bit more details. Our total revenue was 30 billion up by 13.1% year on year on year.

Total net interest income almost 9. I mean, almost 7 4%, growth fee income, almost 7% growth and the insurance group group 13% year on year that shows continued growth. So what what do we attribute this growth to? I mean, penetration in the customer base, I will

Business segments. We wouldn't be able to post constant growth in all of these Revenue lines as you can see from this life. And now moving on to our loan portfolio, the member was 1.34 billion again, consistent growth 9.6% year on year and now here without going into a lot of details but further on we will we will give you more specific details. So growth both in individuals and corporates are more related to secure lines. So you, you will also notice that the Highlight is with micro and SMS. So almost 25% growth year on year and this is a very well-managed portfolio with a lot of collateral because this is what will allow us to grow consistently over time. So the next law

Zooms into some specific credit lines. Because these are growth levers. So they have Flex. What can you? Can we tell you about this? I mean,

Very sound commercial Traction in all lines. If we didn't have a good customer base and penetration in that base, we wouldn't be able to grow this much. And the other element is the the credit modeling in the business unit that we created including, you know, portfolio management. Which you can see in the down in the bottom part of the slides with a lot of machine learning improved models, we hired more than 200 people to our Credit View, we did upscaling. And what we are noticing is that there is a constant evolution in all segments. Not only individuals and SMS, but also, the retail bank. I mean, the wholesale bank with all of the balances that this requires and now I would also like to highlight a few points.

I mean, Bradesco's loan ended the quarter with almost 102% among private banks. We are the largest; we lost in this commercial dispute to public banks, but...

Yes, our public portfolio.

15.4% share, I mean, Social Security. First of all, was 15.4% public 14.3% and private 7.5. What we were very conservative in terms of granting private loans, but then further on we can elaborate on this. But we put together a more restrictive credit policy at the very beginning because we didn't want to to run into many risks. So our policy is to work with the companies that we used to work. You know, in the past and for the employees of these companies that were, at least, you know, employed by the companies for a year. So, in the first case, the level of the delinquency for, for lack of payment was 12%. So this number is coming down operationally. Became the market is, you know, um, oiling the wheel. So on average, I'm not referring to any specific or

Organization. But on average, the delinquency level in this particular portfolio for these new cohorts is around 11% and ours is 3% only. So we didn't grow. I mean that portfolio decrease on the private side year on year.

And then here to date as well. But then when we look at the third quarter, the Central Bank, just released the numbers for this portfolio, for September. And then I think you can look at that. So, we are resuming growth on the private side. Our our policy is now a bit more open, but we are also growing on the public side.

Volume and and the expectation is to grow next quarter and to grow next year, consistently in all these lines. So security, public and private and look at our share so we don't have anything more to lose. We always have to gain more. So this is the Outlook and credit cards. If you look at the numbers, we grew substantially in the high income line. In terms of real estate, our share is about 20%. There are 3 or 4 Banks whose market share is slightly higher. But in the last quarter, I mean, this entire year in general, we preserved margins. Now we see opportunities with also, some modifications to accelerate real estate again. And Rural portfolio, the portfolio of the bank bank alone group 25%.

Very collateralized or secured estimates. We are growing consistently quarter on quarter and year on year at almost 25% year on year. And we released the plan; we insisted that we would struggle to remain in that leadership position. I'm talking about, you know, companies that have revenues or banks that have revenues up to $200 million a year, and we gain share with SMS as well. This is just to say that.

We will continue to grow. We will continue to grow our loan portfolio and as a reminder last year, we, we had a write-off of the restructure portfolio of almost 10 billion and large corporate. We didn't have that growth and if everything were to remain stable, if there were no write-offs and if large corporate portfolio, had not the client. Our loan portfolio would have grown even more. So we are, well, positioned. We have the desired clients. We have demand and we will continue to grow, and we expect to gain market, share in payroll loans, we will continue to grow real estate SMS because we gain market, share. So we are, we have a very good commercial traction and as a consequence, our total and I I grew almost 17% and the total

The the total knee. Net of provision.

Growth 14.4% earlier, but when we look at client Nee Nee, we grew 19%. But when we talk about client and II, natto Provisions, when you were balancing that portfolio, with cost of cost of risk, we group 18% reaching almost 10 billion. And the expectation is, is continued to grow. Now, speaking about expenses,

With LLP and we just had a, a press conference for journalists. And they asked us about this 500 million of variation on the cost of credit. You know, quarter on quarter, there are 2 cases that justify this first. There is a 1-off case in our wholesale bank because we made Provisions. I mean, obviously, I cannot, you know, give out names but if you look at the full publication,

And look at the provisions page, you will see that we have cost of credit for, for Mass retail and wholesale, but when you look at wholesale banking, it's about 200 million every quarter or 300 million. So, there are certain regularity and this 1 goes from 200 from 200 to 500 approximately. So it was a 1-off case. However, we could also, you know, rent Credit in the middle, which is also part of the wholesale banking. But once you offer a certain certain certain facilities, you also have to call Provisions beforehand. So this is natural seasonality. But if we were to exclude that and also what was added to that that John Deere Bank,

This would be perfect, so the coverage level that we did for them.

put us on a still in a very comfortable position and this was in 1-off case and so we decided to make the necessary provisions and just, you know, move on because we want to continue to grow

And given that that is Flats. The average cost is 3.2 rather than 3.3 therefore no.

Is here because our portfolio is very good. This slide after long conversations with Cassio. He's already here and Andre and Andre likes to say, okay, this slide or this screen only comes with good news, I see a lot of good news here but I would also like to comment on a particular issue because I got a question about it. If you look at this at this number is down below, it goes from 7. It goes down from 7.0 to 7.7 and you know, stage, 1 growth and that is the portfolio with better quality. And this takes us to the restructure portfolio. There is a drop of almost 10 billion year on year, which is quite significant because if you go back to the early months of 2024 above 12 billion and even, you know, the long portfolio improved. Look at

What happened is that the number is dropping in terms of our total portfolio, and another positive number is the level of secured portfolio—almost 60% was the number that we reached. Therefore, we are doing a lot of things to come up with this kind of performance.

Delinquency is flat. There is a footnote here that says if I mean over 90 there is a slight deviation and this was also related to the John Deere bank, but I don't see any issue here because they they have other ways to find to finance their equipment and every business companies. This affects because we consolidate all the members but if you look at the portfolio it's absolutely under control. And this will certainly you know, help us make things, you know, go forward and generate more Revenue. Now she in commission income. If we do not have commercial attraction, if you and if we cannot deliver a better experience to our customers and good and adequate relationship, we could never post a good fee income. That grew almost 7% in the Highlight comes from credit cards almost 14% And Consortium management.

We grew 22.1% year on year. Well, this product comes from customers at different levels. I mean, mostly corporate customers. Our rates are about 15% of the select rate, so it's very attractive asset management. I mean, with these levels of growth, I mean, run is a highlight. It reached $1 trillion of assets under management. And if you look on the right side.

I I will draw your attention to loan operations. I mean, we are still traction and I will draw your attention to our investment banking, investment banking,

Shows, you know a drop of 29.9% because the Baseline of the previous quarter was a growth of 75. Therefore, if we look at ear to date this year,

24.1.

And this is not Divine work because, you know, this involves growth, you know, new teams, engage teams.

Certainly also this involves pipeline generation coming from all different segments of the banks like wholesale Middle Market, in addition to custody and brokerage Services which also posted growth year on year. Now, operating expenses before coming to that, I would like to mention an adjustment to our Footprints. We are moving even beyond what was anticipated for our footprint, this year.

It was 1,269 points, and a year ago, in 12 months, it was 1,600 points. That means that we are moving forward, which is quite positive, and we are doing that thanks to the talents of our team, with a lot of intelligence backing it up. This will be an ongoing trend. When we talk about the guidance, then for 2026, we will tell you what it is.

Hello. It would be 8.5% rather than 9.6%. But let me give you some additional information and this is also posted in our food publication. I think you can find it on page 21. That's when we talk about operating expenses. But so looking at operating expenses, this is where we consolidate everything admin expenses year to date and year on year.

Post-it negative growth, meaning that, you know, there was a decrease. But if you had the chance to look at, you know, every single line, you would see that some expenses grew and some others.

No decrease like Transportation decreases. But there is a line that refers to technology that technology in line. If it didn't have any quarterly variation, we would decrease admin expenses in the quarter.

Absolute growth was $140 million.

I would like to draw your attention to 1 particular figure. So when you look at our balance sheet, we we consolidate all of the associated companies. So when I take Leo, and Evo, the growth of admin expenses is higher than 20%. So here it goes up. 140 million bureaus. I can tell you that a good part of that.

Comes from these 2 companies because they are factors due to the equivalent. So expenses here are pretty much on the control. Now personal expenses, had no impact in the quarter when it comes to admin expenses. But then when I moved to personal expenses, Seattle posted growth of about 7% or slightly over 70% in terms of personal expenses. But if I am to exclude variable compensation, and I look at fixed compensation, which appears in the first line of operating expenses. You will also notice that personal expenses would fall to a number, probably below 3%. If if it were if we were not doing that equivalence with P therefore you have to take a snapshot and just think that we have consolidation that were also posted in the numbers. So I can certainly say to you that our expenses are very much under control shortly.

There was a higher impact. In this result, this is, in our view, a positive expense.

And there is another factor here because you have to adjust all your provisions when you have the collective bargaining agreement, which was higher than 100%. So, it's very hard to index these personal expenses. So, we see expenses absolutely under control going forward, right?

So now the insurance group as I had mentioned in the first Slide. The net income is consistent. We continue to bring very good look. Profitability when we look at year to date at 11.4% year-on-year 6.5% growth with an roae above 21%. As I mentioned with you and I attract your attention to the operating results that guarantee the consistency of the Insurance Groups, earnings with a total earnings growing

At this level year on year 13 percent operating results 10.2 Financial 18.3. So that's very consistent growth for the insurance group, and this is also not divine intervention. All of the customer segments and pretty much all lines have been growing delivering positive variations here on year, but not only here.

In our customer segments, but also in all distribution channels that the insurance group has with the Brokers digital channels and events pointed at that. Now, in our press conference and in the technical Provisions, reached the level 435 billion with growth of 10.5%. Now, moving towards the end of the presentation, our Capital, even with the growth of the loan portfolio.

Come on Equity, Crews, 30 bits to 11.4 and C1 grows forward 0.4 percentage points as you could see. Now, our guidance, I talked a little bit about this. Literally if you look at that, we should move.

in the year, when we closed the quarter to

Fall within the guidance.

About. So look, the loan portfolio, for example, from 4 to 8, we're growing at 9.6%. So if you go there,

To our earnings presentation of the fourth quarter of 2024. You'll see that we grew the portfolio quite well to $981 billion. If you look at the portfolio that's $1 trillion, 34 today and you put $16 billion.

billion of growth.

The Baseline takes us to 7.1. So I'd say that we will grow between 7 and 8% a little bit more maybe. But with consistent growth in here also knee Provisions in the upper levels of the interval and so on, for each 1 of the items, all of them lay in or falling in the higher end of our guidance. So we'll deliver the guidance at the end of this quarter.

Now, a quick

overview of our transformation process. We will have a more detailed view when we close the year, but we have been evolving very well in all of the aspects of individuals. In each 1 of the segments, brazco principal closed, September with 41 offices, in expanding still growing and I'll talk more about that. I talked about the foot footprint, exceeding expectations, we launched the global Solutions and enable the platform to 100% of wholesale clients for our cash.

Management. We have more than 11,000 people working with enterprise agility in our organization, and we are also advancing quite quickly. With everything we've been doing in it and the intensive use of Gen AI, our productivity in terms of development grew this year by 109%. We are looking forward to the next quarter.

Into the next year as well. What we have here are our four topics without getting into the details of each one of the items of our mandala. But first principle, we should close the year with 300,000 clients, approximately 62 offices in almost 40 cities in Brazil. Prime has been evolving from its value proposition and will already have 3 million customers, maybe slightly a little more than that. We have more than 14 million customers that are fully digital who no longer use physical points of service.

They're also being supported by our brothers Co espresso.

Which crew and has more than 39,000 Bank correspondents throughout Brazil in every city of Brazil, and more than 5,600 municipalities in Brazil. In smees, we saw traction.

That we have right last quarter, I talked about the new app with expanded, the app for small and micro companies, they can hire, um, loans from pronoun. The procreate is directly on the app. It's a new very streamlined experience and obviously all of our segmentation process has been proven effective with growing penetration in this segment. And I would also like to point here at the bottom about our cultures so that they score. I am bradesco last year, we showed that we had the survey with 74% of participants.

With high engagement levels. This year, we had 84% of all of our employees being engaged in answering our survey, showing the evolution that we have and this aspect as well as all the other initiatives that we have in all of these different areas to pieces of information, to conclude my presentation, and to move on to the Q&A. I've been talking a lot about gen AI,

And now I said, "Oh, I'm not going to talk about this anymore. I keep talking about this at every firm that I go to and here on the earnings presentation. So let's get beer to talk to you." And I had a surprise when they brought me the video because they had an avatar. This is the last time you're going to see this, okay? Next quarter, I will bring a new one that will be a lot nicer than the one that's going to talk to you right now.

It's about a minute long. It's a very brief video. So let's have a look at it and I'll come back for the conclusion. So, please,

Digital transformation through Enterprise agility in the massive leverage of 10. AI is generating impressive results. Look at this,

I can highlight 4 fronts of progress to you first, is the increase in productivity, higher personalization.

risk management and

A new and a model with a drastic reduction of 95% in the time.

To create and then expressive increase in accuracy.

At the same time, we increase security with sophisticated Biometrics and we offer higher personalized experience.

And customer service has full engagement with 90% retention rate on BS chat and Innovation such as speaks by voice here. Besco geni goes beyond technology. It is a part of our transformation at the service of our customers and our business. So that's it. Thank you very much. Now it's back to you on the studio. Real life Marcelo, see you soon. That's a tough 1, right? But next, 1 will not be this Avatar. We're going to have another 1. So I'll head to my conclusions here. Restating, what I said at the beginning of the presentation about our commitment to increase profitability, we are getting close to the return on cost of equity, but step by step, as we said, since the beginning of our plan revenues is the main driver of profitability. Increased expenses under control credit portfolio with a balanced growth, always priority.

Prioritizing risk risk adjusted return.

Risk appetite, as I mentioned at the end of last year, remains moderate.

But the delinquency rates portfolios vintages are completely under control. So, we have a lot of traction in the ren Bank, change the bank, and we're confident that we will have a good quarter at the end of this year, and we will also have good quarters next year, 2026. So now I will invite you for the Q&A with my colleagues, Casiano, carpel, CFO and our colleague, Andre carvalo, IR director, so Andre over to you. Thank you. Thank you. Marcelo castillano. It's a pleasure to be here with you. Good morning, everyone. I'd like to remind you that our CEO of the insurance group eyevenue is participating, remotely, and for your questions, if you want to send a question,

Please send it to the email address in the S at bradesco.com.br or or none or Whatsapp number that is on the screen right now.

Or by pointing your cell phone camera to the QR code that was on your screen. First question,

Danielle VA. Safra Danielle, please go ahead.

Thank you, Andrea. Good morning, everyone. So, I'd like to talk a little bit about cost and this overview of the footprint that you accelerated a lot over the last 2 years. So closing a lot more service points that were expected both in 2024 and 25. I think you accelerated even beyond the target, so my doubt is about 2026. Should we expect the same face of closing or is the trend to going to change Focus to reap operating efficiency to move towards that goal of 40%.

8 down from 48 when you were announcing the strategic plan. And then a second question, still on the call.

You mentioned. Hello and a Lo growing 20% year on year even more. So when cost so we can imagine that this is the level that will be maintained going forward. Is there any 1-off situation that would cause you to accelerate cost in these 2 companies? Thank you. So we'll start with your second question. Thank you, Danielle.

What I have to say is, they do not grow in personal expenses, so it was on the other way around. I only mentioned that to say we have different Dynamics

but,

They have been growing in terms of volume Revenue earnings and they have been investing. So naturally when you increase customer base, you also increase cost of processing and this type of cost, it's natural to see an increase. The expectation is that it will grow indefinitely at a level of 20%. I don't see that but they are doing well, they're balanced, they're bringing returns. But when you we show the transformation plan, what I mentioned.

was that we have a plan to reach that level of efficiency, that's very important and we're pursuing that and having a very strong control of expenses

The opportunities came up and that's how we do it. That's not what we expect. We expect to have very well controlled expenses but once you consolidate you may look and see but shouldn't it be going down or you may see a deviation here and there. But as for the footprint, we talk about 1.6.

If we review in the last 12 months, the expectation going forward. If you look at 12 months would be to a smaller adjustment. Danielle, we're closing this number according to our transformation plan, but it should be below 1,000. That's the expectation for the next year.

so, just to

Add to what Marcelo said.

Once we anticipate, what the footprint adjustment? Of course, we have more Provisions for labor and that shows up in our Opex line, when we actually reduce the footprint adjustment, we should see a Slowdown.

Of the labor provisions and that should be clear from now on, I would also like to add to Danielle. We can't have to remember Investments, that's there. But the depreciation is strong Investments. We've been making naturally in technology for the bank overall, as a whole and the appreciation on the side. So there's a little bit of that in theory, they are offenders, but actually they are what boost the new level of efficiency at the bank, of course also competitiveness. Right Casiano.

What we're saying is that we had a more conservative guidance at the end of last year, but we will make it a point to make the investments required in terms of competitiveness. So, thank you. Danielle, moving on to the next question,

Good morning everyone. Thank you for taking my question. The first, I think you've already answered actually, and this high level of labor Provisions that we see this year is like building inventory. That may be normalized next year. So, I think this is already clear, that was a big offender of the results, but the other question would be in the credit quality, we see a slight increase in

Over 90 NPL for individuals. So I’d like to get some explanation about this a little bit. Maybe the John Deere side, if that's been done or if there's more to come, and provisions. Also, SME and Beal, that's quite curious. It's been going down, so congratulations. But I would also like to understand this a little bit more, maybe the relevance of government lines going up.

If you can give us an order of magnitude, if its 10:20 30% of the SME portfolios, how is the performance of these government lines is as they come out of the grace period. And if there's any major concentration that we should look at and at the end, what I'm trying to understand is if this increase in the cost of risk that we saw in this quarter,

Is a trend going forward or not? Thank you.

Thank you, Pedro. Those were good questions. So, thank you. It's a pleasure to see you. So, first.

And about individuals, delinquency, it was driven by John Deere.

So we don't see any other issues. Our portfolio is very safe and good vintages and you will see a good quarter on the fourth quarter in this aspect now for the wholesale bank. That's the case that we had. So going back actually to John Deere that you asked. Look, the capillaries is a lot greater and not have smaller or larger.

Funding depending on the size of the deal and the Agri business side. So it's natural. It's not breaking with any history of what we've seen in this recovery that comes over time. That's what we saw there. So that affected a little bit because of the consolidation, but it doesn't keep us up at night and it doesn't discourage us.

With the John Deere business and our growth and Agra business, both in the wholesale bank and directly at the retail companies and individuals as well. We are excited with this industry, of course, we're very cautious. We've been working with collateral always here in this type of line, we do not have any deviation in our portfolio for Rural credit.

It's there. So we decided to provision for that with a good coverage ratio. Now, I don't see any other issues here.

So, I see the cost of risk being very well balanced. If you were to remove that case of the wholesale bank and the deviation that we had from John Deere, it would have been flat leuk.

It would be flat. So, the order of magnitude for you about this case, I can't give you this specific number, but it's around 200 million, more or less.

200 million PRS that we had. So,

We're very comfortable with our portfolio.

As for SMS, why did it go down? Obviously, we have numerator denominator here that we are warming up. Well, but we're growing well with collateral, so we chose modalities and FTI fto. Remember that I said we had a share of around 18%. We were number 2 last year, the closing, I said that at the beginning of this year,

And I said that this year, we would be leader.

and with more than 20% market share and that was what led us to grow with quality because the models

They came into consideration those intervals. So that there may be occasionally a break with those thresholds that are accepted by fgi fto. So we are doing very well, delivering, very good quality, creating a huge culture of cost of risk in our company segments and our business, um, the companies of up to 50 million a year in Revenue. So, but portfolio is under control with no hiccups, of course, wholesale Banks, there may be here and there, something different, but

It is worth noting or remembering what I said in the presentation this corporate. That's the middle segment that starts at 50 million and goes geographically. It's a larger extension up to a billion and there depending on the expected loss or the modality we operate. You have a little bit more provision up front because of expected loss. It doesn't mean that the delinquency. Well, it didn't see the movement at stage 3 know because it's there on stage 1. It's good but you have that expected loss for that type of Target you're working on. But always with that.

Risk adjusted returns, and that goes for everything for SMS for the wholesale bank, for the vehicles, and everything for all of that. Thank you, Pedro.

Thank you, Pedro. Next question from Mario, Pier with Bank of America. The floor is yours.

Good morning.

And congrats on the results. I have 2 questions as well. My first question is mainly a provocation, you're saying that credit cohorts are performing. Well, NBL is under control but at the same time,

We are expecting a decrease in credit.

I would just like to understand why you were so cautious about credit.

Or because if you if you anticipate that things are performing well why are you you know making that move. The second question has to do with you know your Market margin and the increase in the sale rate. How do you expect knee performing?

You know, once you know, you expect rates to go down, I would like to start answering your question and then I will talk about that acceleration. Good morning, nice to see you. Okay, market and II, we did some very important work. I think it's the first time we acknowledge this year and important work done from our Treasury and the balance. I think we still maintain that 1 billion, bureaus of soft margin and I think we refer to that, you know, in previous occasions. So we do acknowledge that work and we understand that this will be globalized, until the end of the year making up that total of 1 billion bureaus. Well, certainly with the lower next year, we should see an improvement. And so right now, we are looking at the budget and we may bring you some news next year. But certainly, this is a good possibility.

For next year. Well, thank you. Mario for your question and your provocation.

We we should have a positive outlook in 2026 but starting in the second quarter. I mean, going forward after the second quarter of 2026 in terms of Alm. But as Cassio said, the other lines are performing well and to your point about deceleration, I would say that. If you take, if you look at the central bank's release, I think it was released yesterday and we were looking at it.

I, I talked about the private. Payroll loan, private payroll loan?

There was a dropped earlier today.

We also experienced a decreasing year-over-year trend. Now, it is beginning to go up, and it is picking up. We will just, you know, follow the market growth. That doesn't mean that we are decelerating. On the contrary, in the other portfolios, you know, the public and the insurance (inss) portfolio is still dropping, but it is picking up again in the public. The portfolio traction is good. We are growing, and we will gain market share.

The other 1 we are doing well with SMS. We are not decelerating, but of course that you have to deliver the right lines to the right clients, although the same thing the market dynamics, I mean, I'm referring to Central Bank data. I'm not

Releasing any privileged information. But if you look at autos,

In a year, we would grow slightly below market growth but in the quarter we surpassed the market growth so that means that we have a good risk appetite. I may even be let's say

I,

Let's let's say, I am getting credit with a little bit more risk, but the important thing is knee, net of Provisions. So you have, you know, risk adjusted return. That is adequate, perfect. Therefore, I can tell you that, we will be fighting for this market, and we will continue to grow. I am, by far not pessimistic. We are cautious because we don't want to venture into like lines that have higher risk. Now, we don't want to do that, so I want good clients with good ratings, control expected losses in segments, that eventually may bring us slightly lower margin, but at the end, it it gives us, you know, sustainable assets.

That's why we have a sound portfolio. I mean, the restructure portfolio is good, so so your provocation to your provocation. My answer is yes, we are cautious, but we are stepping on the accelerator, whatever we see opportunities for penetration, I mean

The regroup 25. I mean we we grew more than the financial system. So our appetite remains sound.

If we.

Didn't have I mean, any job in the large corporate portfolio, we would have grown more than 10% year on year.

Thank you. Thank you for your question. Next question comes from Thiago Batista with UBS.

Go on. Hello.

I had 2 questions. My first question. Going back to the Strategic plan. I mean, You released that. I mean in 2024 that has been almost a year and a half ago and back then you talked about 3 or 4 kpis, 1 was something about 2 and 2 and a half efficiency over 200 BPS and then you talked about cost of equity.

Sometime has passed. But can you tell me that considering your initial Diagnostics? How do you see the market more challenging, less challenging cost of capital cost of equity? Are you going to deliver numbers very close to what was anticipated?

I mean cost of capital in, I think I you were dressed that efficiency Maybe.

within 12 billion in mortgage, 120 of savings and

LCI.

So,

Do you see any possibility of issuing more LCI after the transition? So how do you see the this this changing funding of real estate mortgage? I will start with your second question about mortgage loans. I mean, our portfolio has over 140 billion. Once you, you also add the corporate side, but the change was positive. It's an opportunity because it makes sense, it makes sense to reduce

The.

The savings. I mean, the reserve requirement of the savings account. We had preserved margin, as I mentioned during my presentation. That's why we stepped on the brakes a little bit, but, but on the other hand, we have the demand of the capacity to resume growth and we will resume growth. You this will be more noticeable by the end of the year because

we have enough capacity to grow more.

I also think this is positive for the system because there are 4 income that banks that have higher protagonist.

But when we look at the regulation it comes with some complexity. I know that you're familiar with it but starting in 2027 what we have to look at in terms of the release of the reserve requirement. And this new regulation is that they might be a decoupling in the long run because you remove that 15% of free resources. So in that vote, they say that every year this will be reviewed. So certainly there might be some degree of flexibility that will allow us to make adjustments. Otherwise there will be no appetite or maybe the incentives will be. You know, we will go in the opposite direction. I mean, we have an appetite to do it and this makes more loyal customers because they are more profitable. Of course, I mean, we have a lot to do the higher interest rates also,

Challenges mortgage loans.

So that's the first thing, second thing.

I think that here in terms of challenges and and then I want to add to my comments.

Said, are we getting there, right? In terms of cost of capital, that was a challenge. But when we presented the plan on February 8, 2024, we were talking about...

13% to 13.5% cost of capital. I think, if I'm not mistaken, that was the number, meaning we would have gone beyond that. That was a challenge, but we're getting very close with it, so it will come. I'm not promising anything, but it is right ahead of us. This is the first thing. The second thing is growing the customer base. Okay, we cleaned up inactive savings account holders, because it makes no sense to include non-active customers, and we don't want to bring in non-performing clients. Therefore, we are working and paying attention to that. We are looking at the profile of clients, clients that are more digital and so on. There are challenges.

And but this applies to the entire country when it comes to a massive clients which are, you know, struggling to make ends meet. But our growth level at besco principle. I didn't even refer to NPS to you but

Probably in our next earnings release presentation, we will.

Talk about the growth of the individuals portfolio and bring some more information. We are seeing a lot of good things happening with our principal segment primate SMS, wholesale banking

To deliver some KPIs that we will certainly.

Bring it to you when the right time comes.

Sorry, Thiago, I think I called you yudi.

I would add 2 things.

1 thing that probably looked like ancillary, but we, we have the engagement of our team. I am braids with this is part of our culture, Marcelo showed that 84% of our people, you know, answer the survey. And this is important because they are very much engaged in the bank's transformation, this at first seemed challenging, but I think this was 1 of our positive surprises. Obviously, the macro environment, you know, was based on that strategic plan, that that was a totally different plan. We didn't have high interest rates, the GDP was growing the, you know, cost of capital.

Was good. But despite all of that we continue to invest and an important part of that that we have to mention, in addition to people with technology we invested in technology you know, reskilling you know the different tribes, the concept of restructuring our infrastructure.

The upselling of the team as a whole and the Intensive use of geni.

That.

led to Greater productivity you know, together with other like Footprints and this new growth levels

Of course, this also involves higher efficiency, 800 BTS. We would get closer to 50 and 52. So the plan is a 4 year plan. We are heading towards the year year 2. So there are lots of challenges but we are on the right track and in our next earnings release we will talk more about the share. We are growing in areas where we trust.

we can increase penetration, SMA is a clear example and you might recall that I said that we wouldn't let go of our leadership position and we are doing so

And we are delivering better results.

But it sounds a few, we have a challenge to increase efficiency. Capital requirement is something that is a constant here. Because come here, end of 2026, there will be new requirements related to operating risk and other elements.

I think the number is 30 additional BPS or required Capital. So Capital need is something that is very peculiar to our industry. Thank you next question, good morning.

Thank you Andrea Thiago always asks good questions. So I will call, you know, you call me Thiago UBS. Yes I should have a sign. We saw a sign that you were on the line and then I got confused. So I apologize. Thiago again.

I would like to talk about our client and AI. It's one of the good surprises of the year.

The improvement in funding or something in spread we've been seeing in your lines, but very well with this 9% that you presented now. So I'd like to take your view and ask you, do you believe this 9% NIM is going to go up, or is it more likely to remain stable? If it's going to improve, what do you think will make your NIM improve? That's the second question, inspired by Thiago. I know it's hard to talk about medium to long-term ROE, but I think that the market believes that Bradesco will start generating returns above the cost of equity, and we see there's some expectation that this is going to improve.

This is the reality and the quarter. We understand as you said that there have been corporate cases that played kind of against it, but are we only improved 10 BPS quarter on quarter?

The insurance company is what, who brought most of the improvements. The banks are OE goes down quarter on quarter. So again, going back to thiago's question, what could we expect in terms of the agility of these Roe improvements? It's clear that it will continue to grow, but I'd like to understand from you. If you can, if you're comfortable bringing more medium or very long-term number to understand how you see the Improvement in profitability for the coming quarters. Thank you, Andrea. You can begin. And I'll conclude. So, start with the question, actually, what we see this year is that the revenues have been

Surprising every quarter with the commercial traction, proximity to customers and that has been allowing us not only to maintain the decision of the beginning of the year of preserving Investments, but also to accelerate the footprint adjustment and strengthen the balance sheet, we found the third quarter, the increase, not only on LLP but also the labor Provisions with a clear effort.

To strengthen the balance sheet.

On 1 of measures and we we were able to do that because the revenues were coming in very strongly. So here with delivered, the step-by-step, the improvements in profitability in the quarter. But we decided to

Advance, and we are having a very accelerated transformation plan. So, I think that.

Gives us more.

Confidence on the medium long term that we'll be able to go further in this process. So the idea here for Roi Improvement, we've been saying today is basically depends on Revenue basically and from now on it's going to be the efficiency ratio. That's going to be our focus. A combination of Revenue moving well and expenses still very much under control that leads the efficiency ratio to drop 10 percentage points.

In the next 3 years. 26. 27 and 28. So I think that's the main hourly driver that. It's still not priced.

But it's 1 of the very important aspects for us to highlight in this discussion. Now on Nim our Nim, go to 9%. Now, in September, we were promising this 9% for December, so we were able to deliver slightly early

And we are still expecting 9% in December, with some stability in the fourth quarter. That's the base scenario, and we have some variables that help us going forward. For example, the cost of funding, the funding margin, is still improving a little bit. This is not only due to the quick wins we saw in Q3, but also to cash management measures of funding and other things that are starting to help.

To mature with time Marcelo pointed at Global Solutions, we have other measures here in Cache that help other measures that help. And I am. For example, the restructure portfolio going down, once we reduce the the restructured, portfolio in particular, the problem assets,

In our loan portfolio, we increase the share that also yields interest, and that also improves our NIM. And as Marcelo said, whenever we have the opportunity with a good, we will go after it. We will accelerate, and that ends up helping us.

in our profitability and then it would be net. And I am, I will be bold here. I think Andrea gave you a good overview about this but so out there and tell you that

Knee is traction, and I am for this quarter. I have no expectation of variations.

Now next year depending on our mix that we're still discussing in the light of the plan and the budget and how traction we are, we may even surprise you, I would not rule it out. I'm not making any promises but I would not rule it out and when you talk about the ROI and the medium to the long term, of course here we're seeking to deliver our we and the cost of equity and then take another step. But when we have the diagnosis, what did we see, Brazil? Depending

On its positioning. We are an organization just like others other conglomerates here with about 80,000 employees capillarity, with a specific model of an Universal Bank. There are others with a different business model. So here in Brazil, we have a market that offers

long-term Roe between 15 to 20% depending on your position. And we see that

Sum of each organization, it's not only brazco but the market and I think that we have such a large Market that there's plenty of room for you to have a set of organizations as we always had in Brazil.

Dividing a share in different customer and business segments. Thank you for your questions.

Thank you. Next question.

Good morning. Congratulations on the earnings 2 questions.

The first about the corporate specific cases, we know that due to the secrecy and the protection, we cannot comment, but if you can give us some caller within whatever is possible this 354 million. Is it 1? 2 3, specific cases the largest 1. We imagine. How much does it represent of this hole and was it 100% provisioned? The idea is to understand what would have been a clean balance sheet. So to speak, even though losing is part of the, the credit business. But what would have been in between balance sheet? And also to understand if there is anything remaining, in terms of provisioning for those specific corporate cases for the fourth quarter? That's my first question. The second with the guidance you're running above the top of the guidance in Many Items, very good. But why not review it now for in the third quarter because that would

Give us some light to have the more better idea of the number for 25 and imagine what we'll see in 26 especially in insurance that you're running well above the top of the guidance. Thank you. Thank you. It's a pleasure to see you.

About that specific case that we have Incorporated. We provisioned significantly. We have no expectation of additional provisioning for this case, going forward for the next quarter, that's the answer. I have to use.

That case is.

What?

Gets a bigger deviation in our situation. They're smaller cases, specific cases.

As well as the.

Growth of the corporate portfolio that I, as I said, the Middle Market in here. So we do not expect to have any other Provisions for that.

And in terms of the guidance review, since we're seeing that we will fall within the guidance, the guidance is an interval. We see ourselves in the upper band of the guidance, but pretty much for all of those items I mentioned, the loan portfolio is between 7 and 8, maybe slightly closer to 7, but all of the others.

Within the upper band of the upper range of the guidance. That's why we decided not to review it because we will soon start to talk about the guidance for 2026. I don't know if you want to add know. That's exactly it. That's perfect. Well, thank you again. Have a great day.

Thank you. Next question from City.

Good morning. Good morning to you all.

Thank you for taking my question and congratulations for the results. Since you know, the presentation of the Strategic plan, I have 2 questions. And the first question is related to

Capital and tax credit. Maybe the question should be addressed to casciano.

I mean, there was an evolution of 11.4%. There is also the issue of profits, but looking at the explanatory notes, I think that it seemed to me that there

There were some changes in the tax credits, I would just like to understand is part of this Capital Improvement comes from the reversal of deferred or DTA of the for tax credit. And what is the bank's policy in terms of these assets, whether you have a plan to

Accelerate.

This going forward. The second question from Marcelo, it's been a while since we talked about C. You know, Marcelo talked about expenses of the yellow part and C. I remember that when you were presenting this strategic plan, C, especially SMEs, was a very important part of the plan. So, could you give us an update about Cielo's strategic plan, particularly after Q3?

Okay. Hi. Nice to see you. Well you're very familiar with our policy and part of our assumption to make better allocation of capital in our company. So this is a relevant aspect related to this change in the additional capital.

Also including you know tax losses that you saw in that explanatory note even though our tax credit increased, there was an improvement in some lines, we reduced the tax losses and and the tax credit from Lop had a traditional increase. So this mix of things is what let's do this positive effect. You know in the capital numbers as a whole certainly we are working towards further. Reductions we are very you know we know that there should be

Differences in the tax credit because of everything we are doing.

and I think this is part of the virtual,

Virtual cycle going forward. And this particular case of this quarter, it has to do with this change between, you know, tax credit.

From LLP DTA and this should have a lower effect. Once you you draw an average, that's why we had a specific difference adding to the answer. I would like to say that our common Equity that was 18.4, come December. I think it should be around the same level. So by the end of next year to be closer to 11, which is where we would like to keep this optimization process at. So, Gustavo is speaking about siero, well, we will refer to the balance next quarter as I said before about individuals and share but there is a whole set of initiatives.

Yellow to gain competitive.

We've been working with specific teams in both Banks and together with both on the wholesale side and SME, meaning that we have teams working together with the theology. There are several initiatives

That contemplates customer experience in the bank's Channel.

There was

a significant Improvement in logistics when it comes to delivering equipment and also adding new solutions to companies. We've also noticed the expansion of newcomers, which is much more fluid now. And this has to do with our commercial teams and the yellows teams. I will give you more information about it.

Later on.

In other events.

there is a timeline because this week, I was just reading or revisiting our timeline because there is a plan that we monitor

Very frequently. We look at our growth rates and we will also tell you about other initiatives of the bank. Next time we meet but we continue to work on our transformation plan and now we are very much connected more so than in other occasions we are working together and not only that we are delivering renewed experience to customers with a higher competitive experience. Everything integrated in the SME app. Thank you, Gustav. Next question from Bernardo Goodman with XP.

Good morning. Good morning. Thank you for taking my question and congrats on the bank's results.

My question is about private, payroll loan and your appetite, you said that you were very conservative on the onset of private and I but now you were resuming growth and delinquent or NPO is way below below the market. So what allowed you to do that? Can we say that the bank already has an scalable risk model for this new type of payroll loan now private

Thank you, Bernard. The the answer is, yes.

For open market and everything has to be in place because you would prove credit for companies and for employees of that company. So you should be certain that everything will be approved and the appetite has increased. We change policies, we are now, you know, increasing the pace. As I said before, we were declining here today and year on year, and now the members are increasing and certainly this quarter, there will be an acceleration particularly in terms of private payroll loans. And this is a great opportunity for those who who are so important in this market, but we will accelerate both inss and public portfolios. So in terms of payroll loan, we will show Google growth going forward and

It is yet to be seen. What will What impact this will have in the budget. But everything we're doing, we are doing with modeling and intelligence.

And this is virtually if we went to succeed in this business but we were not very certain in terms of the processes in the past, there are some deliveries like data, there are some deliveries that were housebound and some others will only be delivered in 2026. But that's not a problem because this this doesn't change your appetite. On the contrary things will be better going forward but we see major growth opportunities. We will grow and we will gain. Share, I'm talking about everything. Not only, you know we are I'm talking about inss public and private profiles. Thank you Bernardo.

Next question.

Good morning. It's good to see you. Thank you for this opportunity. I have 2 questions first, about the

Individuals Mass. Retail you've been growing a lot in the high income.

As a write strategy for this year, I'd like to understand whether growing again and gaining relevance in the mass retail will be a relevant part of the strategy looking for the coming years. What indicators are you expecting to be comfortable again to take risks and grow in that segment? And the second question, just a follow-up about what you said regarding SMS. I'd like to understand if you see any limits being reached in the lines that were authorized with the government.

And whether you think you could continue to grow at the same pace that you presented in the last quarters. Thank you.

Okay, so what about the mass?

Individual's Mass retail. We have more than 14 million customers that are mostly or almost fully digital. And what are the challenges here? It is to have a very well adjusted models, because the cost of risk here is a lot higher than that. So, we know that and we are

investing testing and making things happen, but we've been working with this level of Engagement and the customer's life cycle.

To offer NBO, the next best offer, and this different segments that goes to high income. It's worth it for valid for both high income and this more digital segment as well. And we have been testing the channels with different alternatives and different value propositions.

Within our physical world as well, because you have clusters, that would be a lot more connected to the segments, due to the level of profitability. They have to offer, but they still have the need for physical in-person service. And we've been testing all of that with our brother disco expressive. So,

When you talk about a country with the size of Brazil, it's not trivial to think that everyone will adhere to fully digital. We have a, a lot of social levels and different profiles, different personas in this group of people. And we've been working with all of them to be, to be able to have the best cost of to serve, and the ability to continue growing with this public. But now, with the proper adequate safety, because here is smaller income levels and there's a certain degree of

A model with a lot more intelligence behind it. So everything about machine learning and AI, all of that to support what is managed and what is not managed, that is mostly digital, is being used here with a lot of talent by our teams. So we will continue to evolve, and at the right time, we will bring more elements about this mass retail segment for SMS. There may be a limitation of lines that will be determined for next year. I think we've been having a good year. I said that in another question that we had both with FTI and FTO. We are traction, we.

We are doing well, but there may be more limitations to the lines. However, we have to wait naturally for each one of these programs to be convinced. I can only answer.

I mean, I cannot tell you if it will be or it won't be yet. Thank you for your questions.

Thank you for that. Uh, the next question.

Comes from Carlos, Gomez Lopez from HSBC, Carlos.

Let's see. Hello, hi. Good to see you and thank you for taking my call. Um, so I have like everybody else, 2 questions. Uh, the first 1 is about, uh, funding that we haven't talked about. And in particular, we saw a big decline in demand, deposits and saving deposits. Uh,

Is that in your opinion related to the reduction in footprint and what do you think your current markets here is in those 2 lines in the month, the boxes and in 7 boxes. Uh and second, uh all Insurance, again, you continue to deliver very, very good results. Uh, and I'm going to ask once more about the sustainability of the result, specifically, in a health insurance, where your earnings are now twice the level that you have last year. Thank you.

Thank you, Call. You can start the subject.

Deposit. So I'll start talking about the deposit. We've been acting here very significantly this year to optimize the customers' resources, and one of the measures was to reduce our LCR, which was previously around 190%. We brought it down to 150%. The minimum regulatory requirement is 100, so we still have a lot of room to move, but we let go of expensive resources.

So specially in wholesale and that does lead to a reduction of funding, but that was a decision a strategic decision. We made

To continue to reduce our cost of funding to improve the funding margin and to optimize the customers' resources looking forward, I believe we have these cash management initiatives that translate into two important platforms: one for Financial Solutions for SMEs and another for wholesale companies that we call Global Solutions. Both of them are measures that can greatly improve the payment experience. They can also improve our performance in funding and become a structurally favorable measure.

For our funding margin, that starts to have an impact in 2026, and this impact will probably increase in the following years. So, funding is starting next year, counting on the cash management measures to help us.

I would just like to add a little bit if I met Carlos. Thank you for your question.

About the footprint, whether it has a relation with maybe the impact of the the the main deposit on savings. I, we believe it does not because most of our our customers are mostly digital. 14 million are already working remotely and we see that we continue to work and look at

Um, principality both on the men, deposits and savings. There was no drop in terms of the footprint reduction, it's quite the opposite. We see more opportunities working on the NBO for those customers to bring the best offer for the low medium and high income customers. So somehow, the footprint has this relationship to bring a reduction in those points that you mentioned Carlos. And there's another question about insurance, right?

If Ivan is with us, I believe his online.

Even do you want to answer that part of the question that he asked about the sustainability of those results?

Of the Insurance Group.

Thank you Marcelo.

in terms of the sustainability of the results of the Insurance Groups, we see

Looking retrospectively. We

will find in the last 3 quarters consistently.

And in a linear way, we see growth not only in our operations, but also in our results so there's no oscillation no variation even up or down and that makes us comfortable to look prospectively.

Also, and there are very positive light on the last quarter we had growth in House of 9%.

And this last quarter, we also saw growth in life insurance close to 10%.

and the pension plans with all of the challenges also grow specially vgbl and portability of pgbl,

As well as.

The products that we created adding the risk or the premium.

And that has been making a lot of difference for our growth.

Now in the business line and real estate and equipment, we grew close to 15%, and that makes us confident as well to look.

Forward and say that we should continue or maintain the same.

Level of growth.

Reaching the top of the guidance that we committed to at the beginning of the year. Now, in terms of the health,

Insurance, the underwriting discipline checking in the Improvement. In the clients, we increased about 75,000 met lives this quarter. And in October, we already see the same growth level.

And the same pace that we've been addressing.

And the recent periods Regional products developed specifically for the region.

From the health company, we also have updates.

Comfort in terms of the growth, considering that our product is...

a product that all Brazilians want to have,

Both for themselves and their families, the growth was mostly in operational lines.

And obviously, the posture, the stands adopted to fight abuse or fraud.

Makes us confident in this claims ratio, that the Brotherhood and the healthcare.

Insurance Group has reached this quarter. These are my comments. Thank you, Carlos for your question. Thank you Ivan. And that's a well noted

it's a premium insurance, very good, Andre

Thank you Andrea. Thank you Carlos. Next question from issue with j.

Good morning. Good morning. Andre and Marcelle, Luciano.

My question is about the credit cycle.

More focused on SME and individuals.

So I would like to hear your comments on these 2 lines. We saw a very good performers of SME. Both in terms of npl and and growth like 1 help the other. That's the effect. So the question is whether you still see room for further Improvement of SME delinquency and also looking on the individual segment, looking at your peers, despite the Improvement, your NPO is still higher when compared to your peers

But the question is whether you see room for improvement and at what phase of the this cleaning up, you find yourself and whether you think you're already going towards heading towards growth, I mean the cycle of 21 impact at both smes and individuals.

so,

did you?

Clean up the portfolio. Are you ready to grow more, or do you still feel that there is more room for improvement? The LIE further?

Receivables, you know, rural credit with.

guarantees or collateral. So the new cohorts

are showing good performance and this is what, what is bringing npl down? It could fall a little bit more, but the base scenario is, for a certain stability, given the economic stability that we anticipate going forward. So I think this is an important aspect when it comes to restructuring portfolio, as Marcelo indicated in 12 months, the Troublesome part of it was down by almost 12 billion bureaus and

That was an important clean up but it's still possible to proceed with it. Re de-risking of our credit portfolio. Thank you for your questions. I would just like to add to it under his head I still see SME.

It's

a line that we'll post decreased.

In npl, everything is under control. But if I look at individuals, if I look at

at a further Horizon of going towards 2026, it depends on, on the mix that you have. I said that in the year of the market grew more than, you know, in in vehicles. But in the quarter, we grew more than the market. But if you draw the mix,

You may even have.

A higher NPO. But eventually, I'm not saying it's there. But if you change the mix,

Like the auto and you grow more than payroll loan, for instance, right? So then, in this case, you could strike a balance in 2026, but always return will be adjusted to risk. It will be a risk-adjusted return. So, I don't see any problems with the linkage or NBL, but I see some decline with, you know, the SME portfolio still this quarter. Thank you. The issue comes from, too, from.

Thank you, Andre. Good morning. Thank you for taking my question. My question is, you've talked a little bit about growth and, you know, you're growing in some segments where you feel more comforted, particularly in secured lines. In the other segments, you're not growing, but you may...

Increase your risk appetite going forward, uh, Marcelo. If we go back, you know, after you became CEO, part of your strategic plan was to potentially increase market share and loans from 14% to maybe 15% to 19%. You know, since then your market share is still relatively stable. Just thinking, how important do you think it will be to increase your market share in order to keep improving profitability, or should the focus be more maybe on the segments that are more profitable where your overall market share?

Maybe matters less just, um, how should we think about your ability to gain market? Share from here and how important that will be for you to improve your profitability going forward? Thank you.

I said it was you start and then I'll follow suit.

Yeah, about the plan.

Go ahead. You start, when we announced that mission of increasing market share by 14% in that range of 15 to 19% that was February last year, that involved a 5 year plan, right? And in these 5 years, we have to take into account, the economic landscape back, then, interest rates were down. And what came next was increase. I mean, an increase in the Civic rate to 15%, and now we are seeing the deceleration of the Brazilian economy as a consequence of this monetary squeeze. So considering the economic landscape now is

Is appropriate to to to keep your risk appetite under control. I mean the financial situation of companies and families will improve with time. So naturally the risk appetite of Banks and companies will get better. And then if that happens, we can look for better market share at the time, we are very cautious but as Marcelo was saying, we our approach is very segmented when

We see that there is an opportunity to gain market share. We will certainly go after it. I mean, hiring and AR, because what we want is to increase our share. So in all the lines that we see opportunities, we will certainly grow market share. I mean, short-term is not the main goal. The main goal is to increase profitability consistently.

Something else or Tito? Thank you for your question.

Looking ahead. Our mission remains,

The 1 of gaining share in that interval that I showed you in the plan, right? But what do I see?

In a shorter period of time, we had good growth. If we didn't have, as I said during my presentation, the issue in the large corporate portfolio, we would have.

come down over 10% year-on-year, but

Where are where do we have more traction?

I mean, payroll loan of individuals, if it accounts for approximately, 15% of our total portfolio and we will gain share right there.

In the mortgage loan sector, you may have one bank or another that will gain a little bit more market share, but we will also gain share here in mortgage loans. I mean, on both sides—corporate and individual—while also keeping a significant amount of that, because I think we have close to 20% market share. Now, in the auto sector, we see opportunities there too. Obviously, if you look at the whole picture, there are different areas to consider. When you look at individuals, you have people with more appetite than we have to go after these clients, and the same thing goes for.

Corporate. But looking at rural clients, with some Polaroids, we do have good relationships and a good appetite to do. The same thing with individuals and entities on corporate Health, side of there are different categories, these lines of fgi and fgo, we perform well. So far this year, we still see that we have enough room to gain more share. I can even say that we are gaining share with SMS. Like, as I was showing you during my presentation, so there is room for us to grow in SMS with this working capital with collateral on the business side as well. Rural the same heavy and passenger vehicles, the same thing. So all of these lines are priority line and they are a good Focus for us.

The idea is that at the end of 2028, we will be in that interval that we presented when we introduced our transformation plan. But.

We're doing everything with the right choices. Adequate risk appetite, you know, portfolio management and growing in areas that can be traction and penetrated.

Most of it through digital and the physical world and we will just go forward because the idea is to gain more share, with risk, adjusted return. Again, I insist on that point. I was saying that we were growing above Market in the port of, but always with risk adjusted returns. Thank you, too.

We now conclude the Q&A session, the questions that cannot be answered.

At this time, our IR team will then answer your questions.

After the presentation and before I turn the floor over to Marcel for his final remarks, I would like to say that this presentation is available in the entire material related to this earnings. Release presentation is available in our IR website. First of all, I would like to thank you very much, Andrea. And all my colleagues that are always here with us in our studio, I would like to thank the entire team of besco, all of our employees and the ones that are constantly engaged every day. Looking at customer engagement looking,

And everything that happens in the bank including the insurance.

Companies on social.

The Consumer Finance area of the bank. And most of all, I would like to. Thank you. Sell side analysts, you're always interested in participating.

In this event.

Doing, I do apologize again for that Avatar.

Because we were asking for beer to do something and then they put my avatar but I promise the next time I won't have that Avatar again but let's move on. We are certain that next quarter we will certainly deliver great numbers. Thank you all and have a very nice week.