Banco Bradesco SA Q4 2025 Banco Bradesco SA Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Banco Bradesco SA Earnings Call
Speaker #1: The full year of 2025, today's February 6th, and my watch shows 10:31 a.m. I start this presentation saying that all of this material has been released last night after market closing, and I think you had access to it.
Marcelo de Araujo Noronha: The full year of 2025, today is 6 February, and my watch shows 10:31AM. I start this presentation saying that all of this material has been released last night after market closing, and I think you had access to it. I start with our recurring net income, BRL 6.5 billion, growing 20.6% year-over-year, and BRL 24.7 billion for the full year, 26.1% growth. However, you know, within ROAE of 15.2% exceeding our cost of capital for the first time in this quarter, and that's why we say that we will continue to grow our ROAE for the coming quarters and years to come. Here I have all of the operating highlights.
Marcelo de Araújo Noronha: The full year of 2025, today is 6 February, and my watch shows 10:31AM. I start this presentation saying that all of this material has been released last night after market closing, and I think you had access to it. I start with our recurring net income, BRL 6.5 billion, growing 20.6% year-over-year, and BRL 24.7 billion for the full year, 26.1% growth.
Speaker #1: And I start with our recurring net income, 6.5 billion BRL, growing 24.6% year on year, and 24.7 billion for the full year, 26.1% growth.
Marcelo de Araújo Noronha: However, you know, within ROAE of 15.2% exceeding our cost of capital for the first time in this quarter, and that's why we say that we will continue to grow our ROAE for the coming quarters and years to come. Here I have all of the operating highlights.
Speaker #1: And however, within ROAE of 15.2%, exceeding our cost of capital for the first time in this quarter. And that's why we say that we will continue to grow our ROAE for the coming quarters and years to come.
Speaker #1: Here, I have all of the operating highlights. I'm not going to go over each one of them because I will show—I will certainly change a little bit today's presentation, and I would like to bring you some elements related to our transformation plan that, in fact, was published February 7th of 2024, so less than two years ago.
Marcelo de Araujo Noronha: I'm not going to go over each one of them because I will certainly change a little bit today's presentation, and I would like to bring you some elements related to our transformation plan that, in fact, was published 7 February 2024, so less than two years ago. It will be two years as of tomorrow, so that's when we released the plan. I would just like to remind you of what we did back then. So we started with a diagnosis about Bradesco, about the Brazilian market, and also we drew up a worldwide benchmark with all of the relevant aspects like technology. Out of that diagnosis, we drew up a plan, knowing all of our strengths. The plan has; the bank has several strengths, and the organization as a whole, for that matter. Back then we said that we had 70 million clients.
Marcelo de Araújo Noronha: I'm not going to go over each one of them because I will certainly change a little bit today's presentation, and I would like to bring you some elements related to our transformation plan that, in fact, was published 7 February 2024, so less than two years ago. It will be two years as of tomorrow, so that's when we released the plan. I would just like to remind you of what we did back then.
Speaker #1: It will be two years as of tomorrow, so that's when we released the plan. And I would just like to remind you of what we did back then.
Marcelo de Araújo Noronha: So we started with a diagnosis about Bradesco, about the Brazilian market, and also we drew up a worldwide benchmark with all of the relevant aspects like technology. Out of that diagnosis, we drew up a plan, knowing all of our strengths. The plan has; the bank has several strengths, and the organization as a whole, for that matter. Back then we said that we had 70 million clients.
Speaker #1: So we started with a diagnosis about BRADESCO, about the Brazilian market, and also we drew up a worldwide benchmark with all of the relevant aspects like technology.
Speaker #1: Out of that diagnosis, we drew up a plan, knowing all of our strengths. The plan has—the bank has several strengths, and the organization as a whole, for that matter.
Speaker #1: Back then we said that we had 70 million clients. We also said that we were leaders in SMEs, SMEs understood as a segment defined by the central bank, because every bank has its own format.
Marcelo de Araujo Noronha: We also said that we were leaders in S&Es, S&Es understood as a segment defined by the central bank, because every bank has its own format. These are companies that grow up to BRL 300 million a year. We also said that there was high penetration in the high-income segment, and certainly we have the largest insurance group in Latin America, in addition to having a stake in many other companies. We also said that we will work on our strengths to create a new positioning with the clear goal to increase competitiveness in the short and long run. But it's important to remember that we put a deadline of up to 5 years. It wouldn't happen overnight, and it hasn't even been 2 years.
Marcelo de Araújo Noronha: We also said that we were leaders in S&Es, S&Es understood as a segment defined by the central bank, because every bank has its own format. These are companies that grow up to BRL 300 million a year. We also said that there was high penetration in the high-income segment, and certainly we have the largest insurance group in Latin America, in addition to having a stake in many other companies.
Speaker #1: These are companies that grow up to 300 million a year. We also said that there was high penetration in the high income segment. And certainly, we have the largest insurance group in Latin America, in addition to having a stake in many other companies.
Speaker #1: And we also said that we will work on our strengths to create a new positioning with the clear goal to increase run. But it's important to remember that we put a deadline of up to five years.
Marcelo de Araújo Noronha: We also said that we will work on our strengths to create a new positioning with the clear goal to increase competitiveness in the short and long run. But it's important to remember that we put a deadline of up to 5 years. It wouldn't happen overnight, and it hasn't even been 2 years.
Speaker #1: It wouldn't happen overnight. And it hasn't even been two years. When we presented the plan, we came up with this mandala, with all the main topics: the 10 main items, that were carefully looked at with more than 200 new initiatives.
Marcelo de Araujo Noronha: When we presented the plan, we came up with this mandala with all the main topics, the 10 main items that were carefully, you know, looked at with more than 200 new initiatives. I will go over some of them. I will not talk about all of them or all of that. Otherwise, we will be here for 2 hours, and you will be really tired. But our IR team and the transformation office, everybody is available to give you further clarification, especially those that want to, you know, to talk to investors to discuss, you know, some particular area of this mandala. And if you have additional questions, we are certainly at your disposal. So I'll briefly cover some of the most important highlights, and then I will go back to the core numbers and we wrap up the presentation. So then, after the presentation, we have the Q&A.
Marcelo de Araújo Noronha: When we presented the plan, we came up with this mandala with all the main topics, the 10 main items that were carefully, you know, looked at with more than 200 new initiatives. I will go over some of them. I will not talk about all of them or all of that. Otherwise, we will be here for 2 hours, and you will be really tired.
Speaker #1: I will go over some of them. I will not talk about all of them, or every single one. Otherwise, we would be here for two hours, and you would be really tired.
Speaker #1: But our IR team and the transformation office, everybody is available to give you further clarification, especially those that want to talk to investors to discuss some particular area of this mandala.
Marcelo de Araújo Noronha: But our IR team and the transformation office, everybody is available to give you further clarification, especially those that want to, you know, to talk to investors to discuss, you know, some particular area of this mandala.
Speaker #1: And if you have additional questions, we are certainly at your disposal. So I'll briefly cover some of the most important highlights, and then I'll go back to the core numbers, and we wrap up the presentation.
Marcelo de Araújo Noronha: And if you have additional questions, we are certainly at your disposal. So I'll briefly cover some of the most important highlights, and then I will go back to the core numbers and we wrap up the presentation. So then, after the presentation, we have the Q&A.
Speaker #1: So then, after the presentation, we have the Q&A. Well, we're starting with digital retail. We haven't been bringing a lot of elements for you, but after this period, at year end, we came up with 19 million clients, fully digital.
Marcelo de Araujo Noronha: Well, we're starting with digital retail. We haven't been bringing a lot of elements for you, but after this period, at year-end, we came up with 19 million clients fully digital. They are fully assisted through the digital channel with our BIA GenAI, with the level of resolution which is very high. So BIA is retaining 90% of all calls that come through digital retail. But it's also important to look at the engagement level, our efficiency in this client life cycle that allows us to move on. I mean, I'm not going to get into the details of every topic, but I would like to draw your attention to this item here down below. The direct cost to serve to all of these clients in the digital platform that was reduced by 40 times. This is an important number.
Marcelo de Araújo Noronha: Well, we're starting with digital retail. We haven't been bringing a lot of elements for you, but after this period, at year-end, we came up with 19 million clients fully digital. They are fully assisted through the digital channel with our BIA GenAI, with the level of resolution which is very high. So BIA is retaining 90% of all calls that come through digital retail.
Speaker #1: They are fully assisted through the digital channel, with our VIA GenAI, with the level of resolution which is very high. So VIA is retaining 90% of all calls that come through digital retail.
Speaker #1: But it's also important to look at the engagement level. Our efficiency in this client lifecycle that allows us to move on—I mean, I'm not going to get into the details of every topic, but I would like to draw your attention to this item here down below.
Marcelo de Araújo Noronha: But it's also important to look at the engagement level, our efficiency in this client life cycle that allows us to move on. I mean, I'm not going to get into the details of every topic, but I would like to draw your attention to this item here down below. The direct cost to serve to all of these clients in the digital platform that was reduced by 40 times. This is an important number.
Speaker #1: The direct cost to serve all of these clients, in the digital platform, was reduced by 40 times. This is an important number.
Speaker #1: And what we envision for 2026, vis-à-vis our digital retail, first, we go from 19 million to approximately 40 million clients between account holders and non-account holders.
Marcelo de Araujo Noronha: And what we envision for 2026 vis-à-vis our digital retail, first we go from 19 million to approximately 40 million clients between account holders and non-account holders. And certainly our objective, not only for 2026, but, you know, going forward, is to reduce the cost to serve and to continue growing our customer base. The second topic is affluent clients, and we are talking about principal and prime segments. We promoted an upgrade to more than 3.1 million clients with a new value proposition. And at the same time, we introduced a new position in this segment of clients, prime, end of the year, of 2.3 million clients. Well, we trained 3,500 managers. We focused on that training. But notice the level of accuracy for BIA clients. Accuracy was 93% at BIA customers. And then I go to principal.
Marcelo de Araújo Noronha: And what we envision for 2026 vis-à-vis our digital retail, first we go from 19 million to approximately 40 million clients between account holders and non-account holders. And certainly our objective, not only for 2026, but, you know, going forward, is to reduce the cost to serve and to continue growing our customer base. The second topic is affluent clients, and we are talking about principal and prime segments.
Speaker #1: And certainly, our objective, not only for 2026, but going forward, is to reduce the cost of serve, cost to serve, and to continue growing our customer base.
Speaker #1: The second topic is affluent clients, and we are talking about principal and prime segments. We promoted an upgrade to more than 3.1 million clients with a new value proposition.
Marcelo de Araújo Noronha: We promoted an upgrade to more than 3.1 million clients with a new value proposition. And at the same time, we introduced a new position in this segment of clients, prime, end of the year, of 2.3 million clients. Well, we trained 3,500 managers. We focused on that training. But notice the level of accuracy for BIA clients. Accuracy was 93% at BIA customers. And then I go to principal.
Speaker #1: And at the same time, we introduced a new position in this segment of clients, prime and at the year of 2.3 million clients. We trained 3.5 thousand managers, we focused on that training.
Speaker #1: But notice the level of accuracy for BSE engineers. 93% at BSE customers. And then I go to principal. You may recall that we launched principal.
Marcelo de Araujo Noronha: You may recall that we launched Principal in November 2024 with three offices, one in Faria Lima, another one in Campinas, and the other one in Leblon, in Rio. Then we started the expansion process. In fact, I invited sell-side and buy-side clients to look at our management model rather than just the business model. So we are just going through this phase in other segments. We launched the new segment in November 2024. By the end of last year, we had 62 offices in 36 municipalities, approximately 320,000 clients in this segment with this current level of NPS, a new value proposition. This created this new differential. What do we expect to see next year out of these two affluent segments? I mean, a new upgrade with more than 1.5 million clients reaching 4,700,000 clients.
Marcelo de Araújo Noronha: You may recall that we launched Principal in November 2024 with three offices, one in Faria Lima, another one in Campinas, and the other one in Leblon, in Rio. Then we started the expansion process. In fact, I invited sell-side and buy-side clients to look at our management model rather than just the business model. So we are just going through this phase in other segments.
Speaker #1: In November of 2024, we had three offices: one in Faria Lima, another in Campinas, and the other in Leblon, in Rio. And then we started the expansion process.
Speaker #1: In fact, I invited sales side and buy side clients to look at our management model rather than just the business model. So we are just going through this phase in other segments.
Speaker #1: So we launched a new segment in November of '24. We—by the end of last year, we had 62 offices in 36 municipalities, approximately 320,000 clients in this segment with this current level of NPS.
Marcelo de Araújo Noronha: We launched the new segment in November 2024. By the end of last year, we had 62 offices in 36 municipalities, approximately 320,000 clients in this segment with this current level of NPS, a new value proposition. This created this new differential. What do we expect to see next year out of these two affluent segments? I mean, a new upgrade with more than 1.5 million clients reaching 4,700,000 clients.
Speaker #1: A new value proposition. And this created this new differential. And what we see next year out of these two affluent segments? I mean, a new upgrade with more than 1.5 million clients, reaching 4 million 700,000 clients.
Speaker #1: And as for principal, we will open almost 50 additional offices in São Paulo, reaching 70 municipalities, and we will have of the year. But you might recall our target, because it's not something that almost 800,000 clients by the end we change overnight, because this is gradually built.
Marcelo de Araujo Noronha: As for principal, we will open almost 50 additional offices in São Paulo, reaching 70 municipalities, and we will have almost 800,000 clients by the end of the year. You might recall our target because it's not something that we change overnight because this is gradually built. We will expand our share of wallet, and this is what you see down below when it comes to the affluent segments. Next comes SMEs. As I said at the beginning, we were market leaders. We had approximately 14.3% of market share in SMEs, you know, of almost BRL 300 million a year. Notice what happened here. We've built a much more robust segment with a new digital model, with a new value proposition. Mostly, you know, digital and remote service, and also companies and business segment.
Marcelo de Araújo Noronha: As for principal, we will open almost 50 additional offices in São Paulo, reaching 70 municipalities, and we will have almost 800,000 clients by the end of the year. You might recall our target because it's not something that we change overnight because this is gradually built. We will expand our share of wallet, and this is what you see down below when it comes to the affluent segments.
Speaker #1: So, we will expand our share of wallet in this—this is what you see down below when it comes to the affluent segments. And next comes SMEs.
Marcelo de Araújo Noronha: Next comes SMEs. As I said at the beginning, we were market leaders. We had approximately 14.3% of market share in SMEs, you know, of almost BRL 300 million a year. Notice what happened here. We've built a much more robust segment with a new digital model, with a new value proposition. Mostly, you know, digital and remote service, and also companies and business segment.
Speaker #1: As I said at the beginning, we are market leaders; we had approximately 14.3% of market share in SMEs of almost 300 million a year.
Speaker #1: But notice what happened here: we built a much more robust segment with a new digital model, with a new value proposition. So mostly digital and remote service.
Speaker #1: And also, companies and the business segment. This is a segment where we will introduce 150 new branches during 2024. And we changed the segmentation of the business segment.
Marcelo de Araujo Noronha: This is a segment where we introduced 150 new branches during 2024, and we changed the segmentation of the business segment. The configuration of the management model for managers, we delivered a new internet banking, a new app for companies, and look at what happened to our NPS. These are numbers that were not disclosed before. We went from 56 to 74 points. So I like to say that nothing happens by divine order. It happens because, you know, we work hard in the background, and we execute based on the plan. But I would draw your attention to say that we have more than 5,000 managers in this segment, and we are present in 2,100 service points.
Marcelo de Araújo Noronha: This is a segment where we introduced 150 new branches during 2024, and we changed the segmentation of the business segment. The configuration of the management model for managers, we delivered a new internet banking, a new app for companies, and look at what happened to our NPS. These are numbers that were not disclosed before. We went from 56 to 74 points.
Speaker #1: The configuration of the management model for managers, we delivered a new internet banking, a new app for companies, and look at what happened to our NPS.
Speaker #1: These are numbers that were not disclosed before. We went from 56 to 74 points. So I like to say that nothing happens by divine order.
Marcelo de Araújo Noronha: So I like to say that nothing happens by divine order. It happens because, you know, we work hard in the background, and we execute based on the plan. But I would draw your attention to say that we have more than 5,000 managers in this segment, and we are present in 2,100 service points.
Speaker #1: It happens because we work hard in the background, and we execute based on the plan. But I will draw your attention to say that we have more than 5,000 managers in this segment, and we are present in 2.1 thousand service points.
Speaker #1: And this adds value to clients, regardless of having this level of evaluation and metrics. What a robust capacity to serve clients, because they can do self-service.
Marcelo de Araujo Noronha: And this adds value to clients, regardless of having this level of evaluation and metrics with a robust capacity to serve clients because they can do self-service and at the same time have a very good experience. But we can still serve these clients in the physical channels. But I would like to draw your attention to something that I said at the beginning. We had 14.3% share. We are leaders in this market, but look at what happened up to September 2025. We gained market share. We reached 16.6% market share, and we continue on the right track in terms of this segment. Our purpose, not only for 2026, but for, you know, a more distant future, is to increase our penetration in these segments.
Marcelo de Araújo Noronha: And this adds value to clients, regardless of having this level of evaluation and metrics with a robust capacity to serve clients because they can do self-service and at the same time have a very good experience. But we can still serve these clients in the physical channels. But I would like to draw your attention to something that I said at the beginning. We had 14.3% share.
Speaker #1: And at the same time, have a very good experience. But we can still serve these clients in the physical channel. What I would like to draw your attention to is something that I said at the beginning.
Speaker #1: We had 14.3% share. We are leaders in this market, but look at what happened up to September of 2025. We gained market share. We reached 16.6% market share.
Marcelo de Araújo Noronha: We are leaders in this market, but look at what happened up to September 2025. We gained market share. We reached 16.6% market share, and we continue on the right track in terms of this segment. Our purpose, not only for 2026, but for, you know, a more distant future, is to increase our penetration in these segments.
Speaker #1: And we continue on the right track in terms of this segment. Our purpose not only for 2026, but for a more distant future, is to increase our penetration in these segments.
Speaker #1: And we believe, as was stated in the diagnosis, that in this segment of up to 300,000 a year of SMEs, it's a segment that tends to increase its share in the financial system in the coming years.
Marcelo de Araujo Noronha: We believe, and this was stated in the diagnosis, that in this segment of up to 300,000 a year of SMEs, it's a segment that tends to increase its share in the financial system in the next coming years, up to 300 million a year. I mean, payments and cash, I'm not going to get into many details, but Bradesco Global Solutions with global cash, and obviously our goal is to increase the share of wallet and customer centricity through time. I mean, credit. We introduce a credit BU. Of course, I will talk about cause and effect because, as I said, things don't happen, you know, by divine chance. We introduce the credit BU at the beginning of our plan, and within this business unit, we introduce a portfolio management area.
Marcelo de Araújo Noronha: We believe, and this was stated in the diagnosis, that in this segment of up to 300,000 a year of SMEs, it's a segment that tends to increase its share in the financial system in the next coming years, up to 300 million a year. I mean, payments and cash, I'm not going to get into many details, but Bradesco Global Solutions with global cash, and obviously our goal is to increase the share of wallet and customer centricity through time. I mean, credit.
Speaker #1: Up to $300 million a year. And I mean, payments and cash, I'm not going to get into many details, but Bradesco Global Solutions with global cash, and obviously our goal is to increase the share of wallet and customer centricity through time.
Speaker #1: I mean, credit. We introduced a credit view. Of course, I will talk about cost and effect, because as I said, things don't happen by divine chance.
Marcelo de Araújo Noronha: We introduce a credit BU. Of course, I will talk about cause and effect because, as I said, things don't happen, you know, by divine chance. We introduce the credit BU at the beginning of our plan, and within this business unit, we introduce a portfolio management area.
Speaker #1: We introduced the credit view at the beginning of our plan, and within this business unit, we introduced a portfolio management area. They are working with different client segments.
Marcelo de Araujo Noronha: They are working with different client segments, and they are also operating in the live portfolio, be it, you know, in wholesale and retail, bank, customer finance, etc. So within this business unit, we also introduce a new pricing area to serve all segments and businesses, all the verticals I mentioned to you before, and all of that to generate more risk-adjusted return. And this is a very important part of our strategy. But when we put this together, I told André that we wouldn't get any lack of resources. There would be enough resources.
Marcelo de Araújo Noronha: They are working with different client segments, and they are also operating in the live portfolio, be it, you know, in wholesale and retail, bank, customer finance, etc. So within this business unit, we also introduce a new pricing area to serve all segments and businesses, all the verticals I mentioned to you before, and all of that to generate more risk-adjusted return.
Speaker #1: And they are also operating in the live portfolio, be it in wholesale and retail, bank, customer finance, etc. So within this business unit, we also introduced a new pricing area.
Speaker #1: To serve all segments and businesses, all the verticals I And all of that to generate more risk-adjusted return. And this is a very important part of our strategy.
Marcelo de Araújo Noronha: And this is a very important part of our strategy. But when we put this together, I told André that we wouldn't get any lack of resources. There would be enough resources.
Speaker #1: But when we put this together, I told Andre that we wouldn't get any lack of resources. There will be enough resources. So, to that end, we hired 250 professionals and gave them full technology support to enhance the model for all customer segments.
Marcelo de Araujo Noronha: So to that end, we hired 250 professionals, and we gave them full technology support to enhance the model for all customer segments, also to manage the portfolios and looking at the timeline of credits and loans that are not only decided on prediction models but mostly decided by human judgment, and they support all of that. The consequence is that this SME growth level is still the same that we have with payroll loans. If we hadn't put this together in the way it is, certainly we wouldn't be growing SMEs the way we've been growing today and the way we grew in 2025. What do we expect in terms of our objectives? I mean, this unit together with the client segment, we want more competitiveness in some lines and segments, but growth with quality and, moreover, a very strict, you know, risk-adjusted return.
Marcelo de Araújo Noronha: So to that end, we hired 250 professionals, and we gave them full technology support to enhance the model for all customer segments, also to manage the portfolios and looking at the timeline of credits and loans that are not only decided on prediction models but mostly decided by human judgment, and they support all of that. The consequence is that this SME growth level is still the same that we have with payroll loans.
Speaker #1: Also, to manage the portfolios and looking at the timeline of credit and loans that are not only decided on prediction models, but mostly decided by human judgment.
Speaker #1: And they support all of that. And the consequence is that this SME growth level is still the same that we have with payroll loans.
Speaker #1: And if we hadn't put this together in the way it is, certainly we wouldn't be growing SMEs. The way we've been growing today and the way we grew in 2025.
Marcelo de Araújo Noronha: If we hadn't put this together in the way it is, certainly we wouldn't be growing SMEs the way we've been growing today and the way we grew in 2025. What do we expect in terms of our objectives? I mean, this unit together with the client segment, we want more competitiveness in some lines and segments, but growth with quality and, moreover, a very strict, you know, risk-adjusted return.
Speaker #1: And what do we objective? I mean, this unit together with the client segment. We want more competitiveness in some lines and segments, but growth with quality and, moreover, a very strict risk rating.
Speaker #1: I mean, risk-adjusted return. We have also many other initiatives, maybe there is one that will take longer to deliver. But our clear objective is not only to have back office and front office, but moreover having an end-to-end experience that will really boost our productivity.
Marcelo de Araujo Noronha: We have also many other initiatives. Maybe there is one that will take longer to deliver, but our clear objective is not only to have back office and front office, but moreover, having an end-to-end experience that will really, you know, boost our productivity. I mean, model culture, in addition to the area led by Silvana, which is people; they are contributing with upskilling, reskilling, and despite everything we are doing, including new variable compensation, KPIs, etc., we conducted a new survey, a new engagement survey, 84% engagement when compared to 74% posted in the survey of 2024. And that's why we are focused on keeping a very engaged team and fully committed to everything we want to do with the capacity to change as well and adjust.
Marcelo de Araújo Noronha: We have also many other initiatives. Maybe there is one that will take longer to deliver, but our clear objective is not only to have back office and front office, but moreover, having an end-to-end experience that will really, you know, boost our productivity.
Speaker #1: I mean, model culture, in addition to the area led by Silvana, which is people, they are contributing with upskilling, reskilling, and despite everything we are doing, including new variable compensation, KPIs, etc., we conducted a new survey, a new engagement survey: 84% engagement when compared to 74% posted in the survey of 2024.
Marcelo de Araújo Noronha: I mean, model culture, in addition to the area led by Silvana, which is people; they are contributing with upskilling, reskilling, and despite everything we are doing, including new variable compensation, KPIs, etc., we conducted a new survey, a new engagement survey, 84% engagement when compared to 74% posted in the survey of 2024. And that's why we are focused on keeping a very engaged team and fully committed to everything we want to do with the capacity to change as well and adjust.
Speaker #1: And that's why we are focused on keeping a very engaged team, fully committed to everything we want to do, with the capacity to change as well and adjust.
Speaker #1: People are crucial. Competent teams—and teams that can certainly deliver and change as we go—are key so that we can deliver more competitiveness in the short and long run.
Marcelo de Araujo Noronha: People are crucial, competent teams, and teams that can certainly deliver and change as we go so that we can deliver more competitiveness in the short and long run. So organizational structure was the first thing I showed during the plan. So we reduced layers. We reduced the span of control. I mean, we increased the span of control, and we brought C-levels and directors to different areas. I talked about the credit area more recently, but we also promoted inorganic growth. I'm not going to get into the details, but in the insurance company as well with the hospitals. And what do we expect out of this organizational structure? To gain more efficiency and agility when it comes to decision-making. Technology. This is a chapter that I've been talking about all the time, investments in AI. For us, our culture is AI first. AI first.
Marcelo de Araújo Noronha: People are crucial, competent teams, and teams that can certainly deliver and change as we go so that we can deliver more competitiveness in the short and long run. So organizational structure was the first thing I showed during the plan. So we reduced layers. We reduced the span of control.
Speaker #1: So organizational structure was the first thing I showed. During the plan, so we reduced layers. We reduced the span of control. I mean, we increased the span of control.
Marcelo de Araújo Noronha: I mean, we increased the span of control, and we brought C-levels and directors to different areas. I talked about the credit area more recently, but we also promoted inorganic growth. I'm not going to get into the details, but in the insurance company as well with the hospitals. And what do we expect out of this organizational structure? To gain more efficiency and agility when it comes to decision-making.
Speaker #1: And we brought C-levels and directors to different areas. I talked about the credit area more recently, but we also promoted inorganic growth. I'm not going to get into the details, but in the insurance company as well, with the hospitals.
Speaker #1: And what do we expect out of this organizational structure? To gain more efficiency and agility when it comes to decision-making. Technology—this is a chapter that I've been talking about all the time.
Cassiano Ricardo Scarpelli: Technology. This is a chapter that I've been talking about all the time, investments in AI. For us, our culture is AI first. AI first.
Speaker #1: How the investments in AI. For us, our culture is AI first. AI first. AI is not just gen AI. It's machine learning for our mathematical models.
Marcelo de Araujo Noronha: AI is not just GenAI. It's machine learning for our mathematical models, but also multi-agent. We have been working with a number of initiatives on this slide. I spoke about BIA Clients with that level of retention using GenAI, but we have BIA Corp, BIA Tech, BIA Clients, and so on and so forth. So what happened in this two-year period? We gained productivity. We reduced lead time. The consequence was this that I mentioned before, with a base 100 of delivery for clients, internally for review processes, and gaining productivity off a regulatory point. We increased 2025 with 300. We grew our capacity by three times, less than two years. That's when we started this whole move. We invested and reinvested in cybersecurity. We improved our second and third lines of defense for cyber.
Cassiano Ricardo Scarpelli: AI is not just GenAI. It's machine learning for our mathematical models, but also multi-agent. We have been working with a number of initiatives on this slide. I spoke about BIA Clients with that level of retention using GenAI, but we have BIA Corp, BIA Tech, BIA Clients, and so on and so forth.
Speaker #1: But also multi-agents. We have been working with a number of initiatives on this slide. It took about via clients, but that's the level of retention using gen AI.
Speaker #1: But we have via corp, via tech, via clients. And so on and so forth. So what happened in these two-year period? We gained productivity.
Cassiano Ricardo Scarpelli: So what happened in this two-year period? We gained productivity. We reduced lead time. The consequence was this that I mentioned before, with a base 100 of delivery for clients, internally for review processes, and gaining productivity off a regulatory point.
Speaker #1: We reduced the lead time. And the consequence was this that I mentioned before. With a base 100 of deliveries of clients, internally for review processes, and gaining productivity from a regulatory point, we ended 2025 with 300.
Cassiano Ricardo Scarpelli: We increased 2025 with 300. We grew our capacity by three times, less than two years. That's when we started this whole move. We invested and reinvested in cybersecurity. We improved our second and third lines of defense for cyber.
Speaker #1: We grew our capacity by 3 times. Over less than two years. That's when we started this whole move. We invested in reinvested in cybersecurity.
Speaker #1: We improved our second and third lines of defense for cyber. And we expect greater productivity again. More and more intensive gen AI use, but more competitiveness, innovation, and time to market.
Marcelo de Araujo Noronha: We expect greater productivity gain, more and more intensive GenAI use, but more competitiveness, innovation in time to market. I'd like to mention some other things here because I'm going to get to the numbers in a minute, and we'll speak about guidance eventually. But we invested last year. We invested heavily in technology. Investments in technology grew in 2025 compared to 2024 by 22%. If you look at our guidance, which I will refer to in a minute, of those, about 8% of growth, approximately, about 3% or slightly over 3% come from the investments that we will continue to make. We will not give up on investing. I see technology as a big driver of our productivity and our ability to deliver a lot more time for you with hyper-personalization, which we have been doing. During the Q&A, we can speak more about that.
Cassiano Ricardo Scarpelli: We expect greater productivity gain, more and more intensive GenAI use, but more competitiveness, innovation in time to market. I'd like to mention some other things here because I'm going to get to the numbers in a minute, and we'll speak about guidance eventually. But we invested last year.
Speaker #1: And I'd like to mention some other things here. Because I'm going to get to the numbers in a minute, and we'll speak about guidance eventually.
Speaker #1: But we invested last year we invested heavily in technology. Investments in technology grew in 2025 compared to 2024 by 22%. And if you look at our guidance, which I will refer to in a minute, of those about 8% of growth approximately, 3 or slightly over 3% come from the investments that we will continue to make.
Cassiano Ricardo Scarpelli: We invested heavily in technology. Investments in technology grew in 2025 compared to 2024 by 22%. If you look at our guidance, which I will refer to in a minute, of those, about 8% of growth, approximately, about 3% or slightly over 3% come from the investments that we will continue to make.
Speaker #1: We will not give up on investing. I see technology as a big driver of our productivity and our ability to deliver a lot more technology with hyper-personalization.
Cassiano Ricardo Scarpelli: We will not give up on investing. I see technology as a big driver of our productivity and our ability to deliver a lot more time for you with hyper-personalization, which we have been doing. During the Q&A, we can speak more about that.
Speaker #1: Which we have been doing and during the Q&A we can speak more about that if you want. Synergies and innovations. We had a number of actions with CLO.
Marcelo de Araujo Noronha: We had a number of actions with Cielo, Tap on Phone, D+0 receivables discount, all embedded in our corporate app. In Bradesco Financiamentos, we also gained investment with new hiring, not just efficiency in the unit cost, but commercial efficiency at Bradesco Financiamentos. And what are the next steps? We expect, well, with the next steps to increase our share of wallet, increase growth, productivity, and innovation with different verticals that we have in our organization. And now speaking again about profitability to give you more numbers, I mentioned that before. And feel free because our team is ready to talk with you and explain this in much more detail.
Cassiano Ricardo Scarpelli: We had a number of actions with Cielo, Tap on Phone, D+0 receivables discount, all embedded in our corporate app. In Bradesco Financiamentos, we also gained investment with new hiring, not just efficiency in the unit cost, but commercial efficiency at Bradesco Financiamentos.
Speaker #1: Tap on phone, D+0 receivables discount, all embedded in our corporate app. In Bradesco Financiamentos, we also gained investment with new hirings. Not just efficiency in the unit cost, but commercial efficiency at Bradesco Financiamentos.
Speaker #1: And what are the next steps? We expect well, with the next steps to increase our share wallet, increase growth, productivity, and innovation. With different verticals that we have in our organization.
Cassiano Ricardo Scarpelli: And what are the next steps? We expect, well, with the next steps to increase our share of wallet, increase growth, productivity, and innovation with different verticals that we have in our organization. And now speaking again about profitability to give you more numbers, I mentioned that before. And feel free because our team is ready to talk with you and explain this in much more detail.
Speaker #1: Now, speaking again about profitability, to give you more numbers. I mentioned that before, and feel free, because our team is ready to talk with you and explain this in much more detail.
Speaker #1: If we look at the net income, no sell my team, this should be in the last slide. And not in the first. Because again, we speak here about cost and effect.
Marcelo de Araujo Noronha: If we look at the net income, I always tell my team, this should be in the last slide and not in the first because, again, we speak here about cost and effect, and this is the effect, the effect of what? The effect of a plan that is being executed, and that is showing our capacity, revealing and proving the strengths that we talked about, but strengths that were driven by actions of the plan. And we have a growing number, each quarter delivering always a little bit more and step by step. Step by step, we don't change the strategic plan overnight. You correct the course. You correct the tactic, but there is a strategic continuity and with execution discipline. And this is a colossal discipline. We are showing this with our whole team in the transformation office. We're growing in all revenues.
Cassiano Ricardo Scarpelli: If we look at the net income, I always tell my team, this should be in the last slide and not in the first because, again, we speak here about cost and effect, and this is the effect, the effect of what? The effect of a plan that is being executed, and that is showing our capacity, revealing and proving the strengths that we talked about, but strengths that were driven by actions of the plan.
Speaker #1: And this is the effect. It has to have worked. Of a plan that is being executed. And that is showing our capacity revealing and proving the strengths that we talked about.
Speaker #1: But strengths that were driven by actions of the plan. And we have a growing number of supporters delivering more resilience a bit more. And step by step, step by step, we don't change.
Cassiano Ricardo Scarpelli: And we have a growing number, each quarter delivering always a little bit more and step by step. Step by step, we don't change the strategic plan overnight. You correct the course. You correct the tactic, but there is a strategic continuity and with execution discipline. And this is a colossal discipline. We are showing this with our whole team in the transformation office. We're growing in all revenues.
Speaker #1: The strategic plan. Tonight, you correct the core. You correct the tactics. But there is a strategic continuity and with execution discipline. And this was, and that's, a colossal discipline.
Speaker #1: We are showing this with our whole team in the transformation office. Moving on. Total revenue. We're going in all revenues. In AI, we see here the growth.
Marcelo de Araujo Noronha: NII, we see here on the growth, NII and fee and commission income. When we remove the CLO tender offer, the growth is 5.5%. Insurance and pension plans are 16.1%, another robust quarterly growth expectation. But why is total revenue growing? Again, cost and effect. It's not by divine providence. It's by an increased penetration, credit traction in NII, a reduction of liabilities, cost better, liability management, and so on and so forth with all of the initiatives adopted. Looking at our loan portfolio, almost 11%. Growing on in December 2025. In the previous quarter, we were at 9.6%. Now 11%. The highlight goes to micro, small, medium-sized companies growing 21%, 23%. And that's when we're gaining share. But looking at all of the portfolios, we are growing in all of them. Again, why are we growing? We are growing because we have a client base.
Cassiano Ricardo Scarpelli: NII, we see here on the growth, NII and fee and commission income. When we remove the CLO tender offer, the growth is 5.5%. Insurance and pension plans are 16.1%, another robust quarterly growth expectation. But why is total revenue growing?
Speaker #1: In AI, in C, in commission income. When we remove the CLO tender offer, our growth is 5.5%. Insurance and patient plans are at 16.1%. Another robust point of growth.
Speaker #1: And a growth expectation. But why is total revenue growing? Again, cause and effect. It's not by divine providence. It's by an increased penetration—credit traction.
Cassiano Ricardo Scarpelli: Again, cost and effect. It's not by divine providence. It's by an increased penetration, credit traction in NII, a reduction of liabilities, cost better, liability management, and so on and so forth with all of the initiatives adopted. Looking at our loan portfolio, almost 11%. Growing on in December 2025. In the previous quarter, we were at 9.6%.
Speaker #1: In NIAI, a reduction of liabilities costs better liability management, and so on and so forth. We’ve all of the initiatives adopted. Looking at our loan portfolio, almost $1.1 billion in December 2024.
Speaker #1: In the previous quarter, we were at 9.6. And now 11. The highlight goes to micro, small, medium-sized companies growing 2023. And that's where we're getting share.
Cassiano Ricardo Scarpelli: Now 11%. The highlight goes to micro, small, medium-sized companies growing 21%, 23%. And that's when we're gaining share. But looking at all of the portfolios, we are growing in all of them. Again, why are we growing? We are growing because we have a client base.
Speaker #1: But looking at all of the portfolios, we are growing in all of them. Again, why are we growing? We are growing because we have a client base.
Speaker #1: We are growing because we have a high penetration in all client segments, in the verticals that we work in, and so on and so forth.
Marcelo de Araujo Noronha: We are growing because we have high penetration in all client segments in the verticals that we work in. And so on and so forth because we have an engaged team, a team that works supported by client management systems, GenAI, a better offering for clients. In a nutshell, it is these set of measures that we improved over this period. Looking at the portfolio and the loan quality indicators, they're all flat. Over 90 to NPL, totally easy. Over 15 days, if we look on the slide, it's absolutely flat. 10 million shares of this portfolio are captured in vermelf. We paid BRL 10.5 billion in 2025, BRL 20.5 billion, the reduction of problematic assets. Look at our stages. Stage 3 dropping quarter after quarter. Stage 1 increasing quarter after quarter with the evolution of the secured portfolio.
Cassiano Ricardo Scarpelli: We are growing because we have high penetration in all client segments in the verticals that we work in. And so on and so forth because we have an engaged team, a team that works supported by client management systems, GenAI, a better offering for clients. In a nutshell, it is these set of measures that we improved over this period.
Speaker #1: Because we have an engaged team that works supported by client management systems, Gen AI, and a better offering for clients. In a nutshell, it is the set of measures that we improved over this period.
Speaker #1: And looking at the portfolio and the loan quality indicators, they're all flat. Over 90-day NPL, totally easy. Over 15-day if we look on the slide, it's absolutely flat.
Cassiano Ricardo Scarpelli: Looking at the portfolio and the loan quality indicators, they're all flat. Over 90 to NPL, totally easy. Over 15 days, if we look on the slide, it's absolutely flat. 10 million shares of this portfolio are captured in vermelf.
Speaker #1: Our portfolio would be $10.5 billion in 2025, and $20.5 billion is the reduction of problematic assets. Look at our stages; Stage 3 is dropping quarter after quarter.
Cassiano Ricardo Scarpelli: We paid BRL 10.5 billion in 2025, BRL 20.5 billion, the reduction of problematic assets. Look at our stages. Stage 3 dropping quarter after quarter. Stage 1 increasing quarter after quarter with the evolution of the secured portfolio.
Speaker #1: Stage 1 increasing quarter after quarter, with the evolution secured of the portfolio. So we are totally at ease with our loan portfolio and with our ability to continue to originate even more.
Marcelo de Araujo Noronha: So we are totally at ease with our loan portfolio and with our ability to continue to originate even more, particularly with some levers. Net interest income, 14.9%, increased. The client NII, up 17.4%. Again, this is 17.4% just growth. And here, this hits the bottom line, BRL 4.8 to 10.3 billion, growing 22.6%. Cost of risk, absolutely under control and quiet. Market NII delivering our expectation, the expectation of our treasuries. Commission income grew at the proportion that I mentioned before, but please note that I should highlight three: credit income, 14.4% increased. And high interest income. Consórcio, muito tracionado, crescendo 17.3%. There is a lot of traction, growing 17.3%. Eu posso olhar aqui para a carteira, operações de crédito, também está bem tracionado. Loan operations, we have a lot of traction as well. Why is it not growing?
Cassiano Ricardo Scarpelli: So we are totally at ease with our loan portfolio and with our ability to continue to originate even more, particularly with some levers. Net interest income, 14.9%, increased. The client NII, up 17.4%. Again, this is 17.4% just growth. And here, this hits the bottom line, BRL 4.8 to 10.3 billion, growing 22.6%.
Speaker #1: Particularly with some levers. Net interest income, 14.9, increase. The client NIAI, 19.4%. Again, we see 17.4% of growth, and here this hits the bottom line—4.8 to 10.3 billion, growing 22.6%.
Speaker #1: Cost of risk absolutely under control and required, and market NII delivering our expectation. Expectation about treasury: grew at the proportion that I mentioned before, but please note that I should highlight three.
Cassiano Ricardo Scarpelli: Cost of risk, absolutely under control and quiet. Market NII delivering our expectation, the expectation of our treasuries. Commission income grew at the proportion that I mentioned before, but please note that I should highlight three: credit income, 14.4% increased. And high interest income.
Speaker #1: Credit income: 14.4% increase in high interest income. A lot of traction, growing 17.3%. Loan operations—we have a lot of traction on this one.
Cassiano Ricardo Scarpelli: Consórcio, muito tracionado, crescendo 17.3%. There is a lot of traction, growing 17.3%. Eu posso olhar aqui para a carteira, operações de crédito, também está bem tracionado. Loan operations, we have a lot of traction as well. Why is it not growing?
Speaker #1: Why is it not growing? Because part of it is being deferred because of the 4,966. But look at what happens with capital markets: a 29.2% increase for year '25 compared to full year '24.
Marcelo de Araujo Noronha: Because part of it is being deferred because of 4,966. But look at what happened with capital markets. 29.2% increase, full year 2025 compared to full year 2024. This is not divine providence. Again, this is investments. We changed the structure with Bruno's team and the whole team. We created the agribusiness team. We changed our investment banking structure to broaden the team and capture a lot more in DCM, M&A, and other line items such as project finance. And the result is this level of growth. We have a DCM share that a lot of investors grow in. That we had in 2022. So we grew. We're doing well in the rankings. And we continue to grow. But there are two offenders here that do not help these things. But they are two offenders here that do not help these things. Weak checking accounts and collections.
Cassiano Ricardo Scarpelli: Because part of it is being deferred because of 4,966. But look at what happened with capital markets. 29.2% increase, full year 2025 compared to full year 2024. This is not divine providence. Again, this is investments. We changed the structure with Bruno's team and the whole team.
Speaker #1: This was not divine providence. Again, this is investment. We changed the structure with Bruno's team and the whole team. We created the agribusiness team.
Cassiano Ricardo Scarpelli: We created the agribusiness team. We changed our investment banking structure to broaden the team and capture a lot more in DCM, M&A, and other line items such as project finance. And the result is this level of growth. We have a DCM share that a lot of investors grow in. That we had in 2022. So we grew.
Speaker #1: We changed our investment banking structure to broaden the team and capture a lot more in DCM, M&A, and other line items such as project finance.
Speaker #1: And the result is this level of growth. We have a DCM share. That we had in 2022. So we grew. We're doing well in the rankings.
Cassiano Ricardo Scarpelli: We're doing well in the rankings. And we continue to grow. But there are two offenders here that do not help these things. But they are two offenders here that do not help these things. Weak checking accounts and collections.
Speaker #1: And we continue to grow. But they're two offenders here. That do not help these and things. Which are? Checking accounts collection. Normally, in this market, the results done.
Marcelo de Araujo Noronha: Normally, in this market, pull the results down. But overall, we are delivering and we're delivering well. Operating expenses increased 8.5%. I told you and I will repeat it. Investments in technology. We grew 22% our technology investments 2025 compared to 2024. And we will continue to invest in technology. But if we break our expenses down into personal and administrative, we're growing 5% in line with the average IPCA. PR is one of the factor on expenses. Without profit sharing payment, increase would be 2.5%. We continue to reduce our footprint. If we look at the complete period, 2,800 points. And if we exclude LOPR and CLO, as we have been doing in past quarters, growth of operating expenses would be 7.2%. But in the Q&A, if you want, you can ask and we can debate administrative expenses. But overall, growth is negative.
Cassiano Ricardo Scarpelli: Normally, in this market, pull the results down. But overall, we are delivering and we're delivering well. Operating expenses increased 8.5%. I told you and I will repeat it. Investments in technology. We grew 22% our technology investments 2025 compared to 2024. And we will continue to invest in technology.
Speaker #1: But overall, we are delivering, and we're delivering well. Operating expenses: 8.5% increase. I told you, and I will repeat it—investments in technology. We grew 22% our technology investments in 2025 compared to 2024.
Speaker #1: And we will continue to invest in technology. But if we break our expenses down into personnel and administrative, but we grew 5%. In line with the average IPCA.
Cassiano Ricardo Scarpelli: But if we break our expenses down into personal and administrative, we're growing 5% in line with the average IPCA. PR is one of the factor on expenses. Without profit sharing payment, increase would be 2.5%. We continue to reduce our footprint. If we look at the complete period, 2,800 points.
Speaker #1: We are one of the factoring expenses without profit sharing payment increase would be 2.5%. We continue to reduce our footprint. If we look at the company period, 2800 points.
Speaker #1: If we exclude LOR and CLO, as we have been doing in past quarters, growth of operating expenses would be 7.2%. But in the Q&A, if you want, you can ask and we can debate.
Cassiano Ricardo Scarpelli: And if we exclude LOPR and CLO, as we have been doing in past quarters, growth of operating expenses would be 7.2%. But in the Q&A, if you want, you can ask and we can debate administrative expenses. But overall, growth is negative.
Speaker #1: Administrative expenses, but overall, growth is negative. We have personnel expenses with this variable that I mentioned, the profit sharing program, and investments in technology.
Marcelo de Araujo Noronha: We have personnel expenses with this variable that I mentioned, the profit sharing program, and investments in technology, in transformation. For example, the implementation of the 59 Principal offices, almost 50 more will be added next year. So we continue to invest in reviewing our footprint, focusing on the necessary investments in each one of the departments to help us grow. Our insurance group, another strength of our organization, ROE 24.3%, but overall, 22%. Spoke about this already. We are growing in all lines with a lot of balance, client-based growth. I was checking this with Ivan earlier today. The results of insurance operations exceeding the guidance, 16.1%, and growth in operating results and not necessarily in financial results with technical provisions of 446%, growing more than 10% year-over-year. Moving to the end of my presentation, when we look at it, discipline of capital.
Cassiano Ricardo Scarpelli: We have personnel expenses with this variable that I mentioned, the profit sharing program, and investments in technology, in transformation. For example, the implementation of the 59 Principal offices, almost 50 more will be added next year. So we continue to invest in reviewing our footprint, focusing on the necessary investments in each one of the departments to help us grow.
Speaker #1: In transformation. For example, the whole implementation of the 59 principle offices. Almost 50 more will be added. So we continue to invest in reviewing our first three.
Speaker #1: The necessary investments in each one of the departments to help us grow. Our insurance program—another strength of our organization. ROE is 24.3%, but overall, we will see 2%.
Cassiano Ricardo Scarpelli: Our insurance group, another strength of our organization, ROE 24.3%, but overall, 22%. Spoke about this already. We are growing in all lines with a lot of balance, client-based growth. I was checking this with Ivan earlier today.
Speaker #1: Spoke about this already. We are growing in all lines with a lot of balance. Client-based growing. I was checking this with Eva earlier today.
Speaker #1: The results of insurance operations exceeded the guidelines, reaching 16.1%. We saw growth in operating results, though not necessarily in financial results. Technical provisions stood at 446%, growing more than 10% year on year.
Cassiano Ricardo Scarpelli: The results of insurance operations exceeding the guidance, 16.1%, and growth in operating results and not necessarily in financial results with technical provisions of 446%, growing more than 10% year-over-year. Moving to the end of my presentation, when we look at it, discipline of capital.
Speaker #1: Moving to the end of my presentation. When we look at this, capital discipline, we are on year-on-year growth. If we look at December 2024 compared to December 2025, to 13.2.
Marcelo de Araujo Noronha: A gente tem crescimento ano contra ano. If we look at December 2024 compared to December 2025, in Tier 1, 13.2%, and in the quarter there is a slight reduction of 20 basis points in common equity in Tier 1. But if we look at common equity growth, we also posted growth year-over-year, 0.7%. And this is something that I mentioned with all of you, with the sell side, with the buy side, that I spoke about, that we have to send us control. Lastly, our guidance, we delivered at the top of the guidance in practically all lines. And in the spend and loan portfolio, we were growing 9.6% in September and we ended up with 11%. Good because of our traction ability to execute. We start 2026 with even more traction. Insurance operations, 16.1% beyond the guidance.
Cassiano Ricardo Scarpelli: A gente tem crescimento ano contra ano. If we look at December 2024 compared to December 2025, in Tier 1, 13.2%, and in the quarter there is a slight reduction of 20 basis points in common equity in Tier 1. But if we look at common equity growth, we also posted growth year-over-year, 0.7%.
Speaker #1: And the quarterly slide reduction of 20 basis points. In common equity into year one, but if we look at common equity we also posted growth year on year.
Speaker #1: 0.7%. And this is something that I mentioned with all of you, with the sell side, with the buy side. But what I spoke about is that we have this under control.
Cassiano Ricardo Scarpelli: And this is something that I mentioned with all of you, with the sell side, with the buy side, that I spoke about, that we have to send us control. Lastly, our guidance, we delivered at the top of the guidance in practically all lines.
Speaker #1: And lastly, our guidance. Well, we delivered at the top of the guidance in practically all lines. In spend and loan portfolio, we were growing 9.6% in September and we ended up with 11%.
Cassiano Ricardo Scarpelli: And in the spend and loan portfolio, we were growing 9.6% in September and we ended up with 11%. Good because of our traction ability to execute. We start 2026 with even more traction. Insurance operations, 16.1% beyond the guidance.
Speaker #1: Good. Because of our traction ability to execute. We start 2026 with even more traction. Insurance operations, 16.1%. Beyond the guidance. And we have the guidance for 2026 listed here.
Marcelo de Araujo Noronha: We have the guidance for 2026 listed here. I am here, and I am ready to discuss this with you. Now I will sit down with my colleagues, André Carvalho, IR officer, and Cassiano first to start our Q&A. But I would like to say that a gentle comment. We have heard comments since last night when we released the results. Some positive comments regarding the 2025 numbers. I didn't hear anyone saying bad things, negative things. But the expectations were much higher for our 2026 guidance. Our share between 31 December 2024 and today is 36%. Increased 106%. Appreciated 106%. See, this is only in a nutshell. Part of the game of sell side, buy side, to have price adjustments. Now 29%, it's 27.5%. The middle of the guidance, it's up to you.
Cassiano Ricardo Scarpelli: We have the guidance for 2026 listed here. I am here, and I am ready to discuss this with you. Now I will sit down with my colleagues, André Carvalho, IR officer, and Cassiano first to start our Q&A. But I would like to say that a gentle comment. We have heard comments since last night when we released the results. Some positive comments regarding the 2025 numbers.
Speaker #1: I am here, and I am ready to discuss this with you. And now, I will sit down with my colleagues, Andre Carvalho, IR Officer, and Cassiano.
Speaker #1: First, to start our Q&A. But I would end my speech saying that we have heard comments last night when results. Some positive comments regarding the 2025 numbers.
Speaker #1: I didn't hear anyone saying bad things, negative things. But the expectations were much higher for our 2026 guidance. Our share between December 31st, 2024, and today is 36, had increased 106%.
Cassiano Ricardo Scarpelli: I didn't hear anyone saying bad things, negative things. But the expectations were much higher for our 2026 guidance. Our share between 31 December 2024 and today is 36%. Increased 106%. Appreciated 106%. See, this is only in a nutshell. Part of the game of sell side, buy side, to have price adjustments. Now 29%, it's 27.5%. The middle of the guidance, it's up to you.
Speaker #1: 106%. Appreciated It is only natural part of the game of south side buy side. You have price adjustments, not 29, it's 27.5. But the middle of the guidance, it's up to you.
Speaker #1: But we will not lose sight of our horizon. Because the shares have to be adjusted by 5%. No problem. Can you imagine today with the level of conviction that we have?
Marcelo de Araujo Noronha: But we will not lose sight of our horizon because the shares have to be adjusted by 5%. No problem. Can you imagine today with the level of conviction that we have, with the level of delivery that we have? I am super confident in our organization. I'm happy. I had a meeting just yesterday with our leadership team with the level of engagement we have in our company. So, André, over to you. Thank you very much for joining us in this call. Good morning, everyone. Thank you, Marcelo and Cassiano. I would like to let you know that Ivan, who is the CEO of our insurance company, is joining us remotely. To start the Q&A session, I would like to present three alternatives for questions. First, you can send your questions by email, investidores@bradesco.com.br. You can also send questions through WhatsApp, 1199974438238.
Cassiano Ricardo Scarpelli: But we will not lose sight of our horizon because the shares have to be adjusted by 5%. No problem. Can you imagine today with the level of conviction that we have, with the level of delivery that we have? I am super confident in our organization. I'm happy. I had a meeting just yesterday with our leadership team with the level of engagement we have in our company. So, André, over to you. Thank you very much for joining us in this call.
Speaker #1: With the level of delivery that we have? I am super confident. had a meeting yesterday with our The organization, I'm happy. I leadership team.
Speaker #1: With the level of engagement we have, not our company. So Andre over to you. Thank you very much for joining us. In this call, good morning everyone.
André Carvalho: Good morning, everyone. Thank you, Marcelo and Cassiano. I would like to let you know that Ivan, who is the CEO of our insurance company, is joining us remotely. To start the Q&A session, I would like to present three alternatives for questions. First, you can send your questions by email, investidores@bradesco.com.br. You can also send questions through WhatsApp, 1199974438238.
Speaker #1: to let you know Thank you, Marcelo and Cassiano. I would like that Ivan going to CEO of our insurance company is joining us remotely.
Speaker #1: To start the Q&A session, I would like to present three alternative questions. First, you can send your questions by email either to BOARDES@bradesco.com.br. You can also send questions through WhatsApp at (11) 99974-4382.
Speaker #1: And the third option is by pointing your camera at the QR code and then asking a question. The first question comes from Pedro Leducchi from Itaú BBA.
Marcelo de Araujo Noronha: The third option is by pointing your camera to the QR code and then ask a question. The first question comes from Pedro Leduc from Itaú BBA. Go ahead, Pedro. Good morning, Pedro. Good morning, everyone. Noronha, Cassiano, and André. Thank you for the presentation and congratulations on this wonderful year and your trajectory. My question is related to how you see the underlying business trends. So we could look at the NII guidance. Last, LLP. I mean, I think you're going to grow low two digits, slightly above the portfolio. I just want to understand what's behind it when we think about NII in isolation or LLP. I think these two things have to talk to one another. But to understand what is part of it so that I will have a good idea of your views about mix, spread, credit quality, as the year is just beginning.
André Carvalho: The third option is by pointing your camera to the QR code and then ask a question. The first question comes from Pedro Leduc from Itaú BBA. Go ahead, Pedro.
Speaker #1: Go ahead, Pedro. Good morning, Pedro.
Speaker #2: Good morning, good morning everyone. Noronha, Cassiano, and Andrea. Thank you for the presentation and congratulations on this wonderful year and your trajectory. My question is related to how you see the underlying business trends.
André Carvalho: Good morning, Pedro. Good morning, everyone. Noronha, Cassiano, and André. Thank you for the presentation and congratulations on this wonderful year and your trajectory. My question is related to how you see the underlying business trends.
Speaker #2: So we could look at the NII guidance last LLP. I mean, I think you're going to grow low to digits, slightly above the portfolio.
André Carvalho: So we could look at the NII guidance. Last, LLP. I mean, I think you're going to grow low two digits, slightly above the portfolio. I just want to understand what's behind it when we think about NII in isolation or LLP. I think these two things have to talk to one another. But to understand what is part of it so that I will have a good idea of your views about mix, spread, credit quality, as the year is just beginning.
Speaker #2: I just want to understand what's behind it when we think about NII in isolation. Or LLP, I think these two things have to talk to one another.
Speaker #2: But to understand what is part of it so that I will have a good idea of your views about make, spread, credit quality, as the year is just beginning.
Speaker #2: Okay, Pedro, I will start. Cassiano will start as well. It's good to see you again, Pedro. Our NII remains focused on our standard. I mean, we changed our make for 2025.
Marcelo de Araujo Noronha: Okay, Pedro. I will start. Cassiano will start as well. It's good to see you again, Pedro. Our NII remains focused on our standard. I mean, we changed our mix for 2025. I mean, secured products remain our main lever. Obviously, the quality of our credit BU allows us to work in any credit line, secured and unsecured. We're very comfortable with the quality of our portfolio and the way we are operating it. The average rate should be maintained until the end of the year. And our LLP should grow in line with our operation. These are the main drivers of our NII, and we will maintain it with a very high degree of engagement. Okay, I have a few things to add. It's important to say and highlight what you just said. Portfolio mix, spread level, always focusing on risk-adjusted return. This is the goal.
Marcelo de Araújo Noronha: Okay, Pedro. I will start. Cassiano will start as well. It's good to see you again, Pedro. Our NII remains focused on our standard. I mean, we changed our mix for 2025. I mean, secured products remain our main lever. Obviously, the quality of our credit BU allows us to work in any credit line, secured and unsecured. We're very comfortable with the quality of our portfolio and the way we are operating it.
Speaker #2: products. Remains our main lever. I mean, secure Obviously, the quality of our credit BU allows us to work in any credit line. Secured and unsecured, we're very comfortable with the quality of our portfolio and the way average rate should be we are operating it.
Speaker #2: Maintained until the end of the year. And our LLP should grow in line with our operation. These are the main drivers of our NII, and we will maintain it with a very high degree of engagement.
Marcelo de Araújo Noronha: The average rate should be maintained until the end of the year. And our LLP should grow in line with our operation. These are the main drivers of our NII, and we will maintain it with a very high degree of engagement. Okay, I have a few things to add. It's important to say and highlight what you just said. Portfolio mix, spread level, always focusing on risk-adjusted return. This is the goal.
Speaker #2: Okay, I have a few things to add. It's important to say and highlight what you just said. Portfolio mix, spread level, always focusing on.
Speaker #2: This could just sit return. This is the goal. And I also talked about pricing. The pricing area comes to reinstate that point. I mean, we have some very important levers that go through different segments.
Marcelo de Araujo Noronha: And I also talked about pricing. The pricing area comes to reinstate that point. I mean, we have some very important levers that go through different segments, like payroll loans. In all of its lines, I'm talking about public, INSS, and private. We have approximately slightly above 14% market share. But I would like to remind you that we have the lowest market share on the private side. So we have a lot of opportunities, and we already saw this level of growth. And I would just like to add that we are, I mean, we are placing our hiring offerings 24/7. And this is hyper-customized with microseconds that go and come and already respond, give us a response about the risk of the borrower, the company, and pricing, which is adjusted to risk. It's risk-adjusted pricing. Therefore, I'm saying that we will grow in payroll loans.
Marcelo de Araújo Noronha: And I also talked about pricing. The pricing area comes to reinstate that point. I mean, we have some very important levers that go through different segments, like payroll loans. In all of its lines, I'm talking about public, INSS, and private. We have approximately slightly above 14% market share. But I would like to remind you that we have the lowest market share on the private side.
Speaker #2: Like payroll loans, and all of its lines. I'm talking about public, INSS, and private we have approximately slightly above 14% market share. But I would like to remind you that we have the lowest market share on the private side.
Speaker #2: So we have a lot of opportunities, and we already saw this level of growth. And I would just like to add that we are placing our hiring offerings 24 by 7.
Marcelo de Araújo Noronha: So we have a lot of opportunities, and we already saw this level of growth. And I would just like to add that we are, I mean, we are placing our hiring offerings 24/7. And this is hyper-customized with microseconds that go and come and already respond, give us a response about the risk of the borrower, the company, and pricing, which is adjusted to risk. It's risk-adjusted pricing. Therefore, I'm saying that we will grow in payroll loans.
Speaker #2: And this is hyper-customized, with microseconds that go and come and are ready to respond. We give a response about the risk of the borrower, the company, and pricing, which is adjusted to risk.
Speaker #2: Is risk adjusted pricing? Therefore, I'm saying that we will grow in payroll loans. We see a lot of traction coming from the clients. INSS has its own challenges, market challenges.
Marcelo de Araujo Noronha: We see a lot of traction coming from the clients. INSS has its own challenges, market challenges. It's not only ours. In previous quarters, year-over-year, we were growing 5%. And now, in this past quarter, we grew 6.8%. This is payroll loan, SME. We are still growing. We will continue to grow in secure lines backed by receivables, the direct receivables, or some LEAN, etc. So we will grow with auto for companies and individuals. We are very optimistic in terms of future growth with the credit quality that it's absolutely under control. I do not see any deviations. We are not concerned with that because, certainly, you know that we did our homework when it comes to portfolio management and our modeling schemes. You also mentioned an important aspect. You talked about NII growing slightly above the portfolio.
Marcelo de Araújo Noronha: We see a lot of traction coming from the clients. INSS has its own challenges, market challenges. It's not only ours. In previous quarters, year-over-year, we were growing 5%. And now, in this past quarter, we grew 6.8%. This is payroll loan, SME. We are still growing. We will continue to grow in secure lines backed by receivables, the direct receivables, or some LEAN, etc.
Speaker #2: It's not only ours. But in previous quarters, year over year, we were going 5%, and now in this past quarter, we grew 6.8%. But this growing.
Speaker #2: And we will continue to grow in lines with secure lines backed by receivables, be it direct receivables, or some lean, etc. So we will grow with auto for companies and individuals.
Marcelo de Araújo Noronha: So we will grow with auto for companies and individuals. We are very optimistic in terms of future growth with the credit quality that it's absolutely under control. I do not see any deviations. We are not concerned with that because, certainly, you know that we did our homework when it comes to portfolio management and our modeling schemes. You also mentioned an important aspect. You talked about NII growing slightly above the portfolio.
Speaker #2: We are very optimistic in terms of future growth with the credit quality that is absolutely under control. I do not see any deviations. We are not concerned with that because certainly you know that we did our homework when it comes to portfolio management and our modeling scheme.
Speaker #2: And then you also mentioned an important aspect. You talked about NII growing slightly above the portfolio. Well, this has to do with the mix.
Speaker #2: We are, as it happened this quarter, on the positive side, but could also fluctuate on the negative, wholesale bank. We can fluctuate side because we do the turnover of the portfolio.
Marcelo de Araujo Noronha: Well, this has to do with the mix. We are a wholesale bank. We can fluctuate, as it happened this quarter, on the positive side, but could also fluctuate on the negative side because we do the turnover of the portfolio. Thank you. And the next question is from Mario Pierry with Bank of America. Good morning, guys. Congratulations on your results. We understand that a lot has been done in the first two years, but you still have a lot more to do going forward. But what you have already demonstrated is that you are on the right track. I have two questions. You had an additional expense of BRL 700 million. You spent that to restructure and the structure that is suggested for 2026. And this is almost twice as much in terms of provisions you posted last year.
Marcelo de Araújo Noronha: Well, this has to do with the mix. We are a wholesale bank. We can fluctuate, as it happened this quarter, on the positive side, but could also fluctuate on the negative side because we do the turnover of the portfolio.
Speaker #2: Thank you. And the next question is from Mario Pieri with Bank of America. Good morning, guys. Congratulations on your results. We understand that a lot has been done in the first two years, but you still have a lot more to do going forward.
André Carvalho: Thank you. And the next question is from Mario Pierry with Bank of America. Good morning, guys. Congratulations on your results. We understand that a lot has been done in the first two years, but you still have a lot more to do going forward.
Speaker #2: But what you have already demonstrated is that you are on the right track. I have two questions. You had an additional expense of 700 million BRLs you spent that to restructure and the structure that is suggested for 2026.
André Carvalho: But what you have already demonstrated is that you are on the right track. I have two questions. You had an additional expense of BRL 700 million. You spent that to restructure and the structure that is suggested for 2026. And this is almost twice as much in terms of provisions you posted last year.
Speaker #2: And this is almost twice as much in terms of provisions you posted last year. So could you please highlight where these restructuring will the number of branches?
Marcelo de Araujo Noronha: So could you please highlight where this restructuring will focus more, whether it has to do with the number of branches? And Noronha, we understand that we are getting a lot of questions from our clients. Your guidance says that you will grow expenses by 8%. At the top, you said that 3% relates to investments and technology. But this also means for the rest of the bank, it will grow or is growing 5% in line with inflation. And just like you said, you already reduced 2.8 points or 2,800 points in the past two years. So how come expenses are not growing below inflation? That's why, in the consensus, I was hoping for a number close to BRL 20 million rather than BRL 27.5 million. We thought that the bank's core expense should be growing below inflation. Thank you. Well, thank you for your questions.
André Carvalho: So could you please highlight where this restructuring will focus more, whether it has to do with the number of branches? And Noronha, we understand that we are getting a lot of questions from our clients. Your guidance says that you will grow expenses by 8%. At the top, you said that 3% relates to investments and technology.
Speaker #2: focus more, whether it has to do with And Noronha, we understand that we are getting a lot of questions from our clients. Your guidance says that you will grow expenses by 8% at the top.
Speaker #2: You said that 3% relates to investments and technology. This also means that, for the rest of the bank, it will grow, or is growing, 5% in line with inflation.
André Carvalho: But this also means for the rest of the bank, it will grow or is growing 5% in line with inflation. And just like you said, you already reduced 2.8 points or 2,800 points in the past two years. So how come expenses are not growing below
Speaker #2: And just like you said, you already reduced 2.8 points, or 2,800 points, in the past two years. So how come expenses are not growing below inflation?
Speaker #2: That's why in the consensus, I was hoping for a number close to 20 million rather than 27 and a half. We thought that the bank's core expense should be growing below inflation.
André Carvalho: inflation? That's why, in the consensus, I was hoping for a number close to BRL 20 million rather than BRL 27.5 million. We thought that the bank's core expense should be growing below inflation. Thank you.
Speaker #2: Thank you. Well, thank you for your questions. If you take a look at our admin expenses, and if you look at some of the lines in our full publication, you will see, okay, third-party services, maintenance, conservation, lease, all of these transportation, transportation of currencies.
Marcelo de Araújo Noronha: Well, thank you for your questions.
Marcelo de Araujo Noronha: If you look at our admin expenses and if you look at some of the lines in our full publication, you will see, okay, third-party services, maintenance, conservation, lease. All of these lines were down, and transportation, transportation of currency. So what are the detractors here? I'm just summarizing. There are some that are very positive. But technology, it grew 22%. And then when we look ahead, it will continue to grow. We will continue to invest to increase our competitiveness. Second, I mean, profit sharing. We increased profit and we paid out more. And the third detractor, I'm not going to refer to small lines. We had some changes on the advertising side, but we found three good opportunities at the end of the year and we decided to invest, like when we launched Principal. And that's when we did the coverage at the airports.
Marcelo de Araújo Noronha: If you look at our admin expenses and if you look at some of the lines in our full publication, you will see, okay, third-party services, maintenance, conservation, lease. All of these lines were down, and transportation, transportation of currency. So what are the detractors here? I'm just summarizing.
Speaker #2: So what are the detractors here? I'm just summarizing. There are some that are very positive. But technology, it grew 22%. And then when we look at it, it will continue to grow.
Marcelo de Araújo Noronha: There are some that are very positive. But technology, it grew 22%. And then when we look ahead, it will continue to grow. We will continue to invest to increase our competitiveness. Second, I mean, profit sharing. We increased profit and we paid out more. And the third detractor, I'm not going to refer to small lines.
Speaker #2: We will continue to invest to increase our competitiveness. Second, I mean, profit sharing, we increased profit and we paid out more. And the third detractor, I'm not going to refer to a small line.
Speaker #2: We had some changes on the advertising side, but we found three good opportunities at the end of the year, and we decided to invest.
Marcelo de Araújo Noronha: We had some changes on the advertising side, but we found three good opportunities at the end of the year and we decided to invest, like when we launched Principal. And that's when we did the coverage at the airports.
Speaker #2: Like when we launched principal, and that's when we did the coverage at the airport. It's out of what we expected to do at that time.
Marcelo de Araujo Noronha: It's out of what we expected to do at that time. And thirdly, there are other expenses that also go through some lawsuits. We have a very good provision coverage. We've been working a lot based on those root causes. And when you work in that root cause, you do not expand the incoming, but that is coming down with time. So I believe that these lines will be below 27, 28. And this is what you look at when you look at expenses or other expenses in addition to expenses with technology. And talking about investments in restructuring, I would tell you that, first of all, we continue to review the footprint. We were doing less than what we did, less than what we would do in 2025. And so we will do more than what we did last year.
Marcelo de Araújo Noronha: It's out of what we expected to do at that time. And thirdly, there are other expenses that also go through some lawsuits. We have a very good provision coverage. We've been working a lot based on those root causes. And when you work in that root cause, you do not expand the incoming, but that is coming down with time.
Speaker #2: And thirdly, there are other expenses that also go through some lawsuits. We have a very good provision coverage. We've been working a lot based on this root causes.
Speaker #2: And when you work in that root cause, you do not expand the incoming, but that is coming down with time. So I believe that these lines will be below 27, 28.
Marcelo de Araújo Noronha: So I believe that these lines will be below 27, 28. And this is what you look at when you look at expenses or other expenses in addition to expenses with technology. And talking about investments in restructuring, I would tell you that, first of all, we continue to review the footprint. We were doing less than what we did, less than what we would do in 2025. And so we will do more than what we did last year.
Speaker #2: And this is what you look at when you look at expenses or other expenses in addition to expenses with technology. And talking about investments in restructuring, I would tell you that first of all, we continue to review the footprint.
Speaker #2: We were doing less than what we did, less than what we would do in 2025. And so we will do more than what we did last year.
Speaker #2: But we will open as I said before about 50 offices earmarked for principal. But we are also refurbishing some physical stores with private. Meaning that we continue to invest in this transformation making footprint adjustments also increasing our capacity to invest more and reduce cost to serve in retail and digital.
Marcelo de Araujo Noronha: But we will open, as I said before, about 50 offices earmarked for Principal. But we are also refurbishing some physical stores with Prime, meaning that we continue to invest in this transformation, making footprint adjustments, also increasing our capacity to invest more and reduce cost to serve in retail and digital. So our cost is 40 times lower. Well, thank you for your question. There is one more thing I would like to add in addition to the 3% you mentioned in terms of technology investment. 5% is only related to human resources. Well, that's important to remember. In addition to profit sharing, you will see that our expenses are very much under control. Oh, there is one more thing because you said that it was twice as what it was last year. If you look at 2024, it's very close to the number that we posted in 2024.
Marcelo de Araújo Noronha: But we will open, as I said before, about 50 offices earmarked for Principal. But we are also refurbishing some physical stores with Prime, meaning that we continue to invest in this transformation, making footprint adjustments, also increasing our capacity to invest more and reduce cost to serve in retail and digital.
Speaker #2: And so our cost is 40 times lower. Well, thank you for your question. There is one more thing I would like to add in addition that to the 3% you mentioned in terms of technology investment.
Marcelo de Araújo Noronha: So our cost is 40 times lower. Well, thank you for your question.
Marcelo de Araújo Noronha: There is one more thing I would like to add in addition to the 3% you mentioned in terms of technology investment. 5% is only related to human resources.
Speaker #2: 5% is only related to human resources. important to remember. In Well, that's addition to profit sharing, you will see that our expenses are very much under control.
Marcelo de Araújo Noronha: Well, that's important to remember. In addition to profit sharing, you will see that our expenses are very much under control. Oh, there is one more thing because you said that it was twice as what it was last year. If you look at 2024, it's very close to the number that we posted in 2024.
Speaker #2: Oh, there is one more thing. Because you said that twice as what it was last year. If you look at 2024, it's very close to the number that we posted in 2024.
Speaker #2: Maybe the difference is about 100 million. 40% higher on average. Or greater on average. There is another point related to efficiency. Our efficiency ratio was down by 2.2% from 2.2% to 50%.
Marcelo de Araujo Noronha: Maybe the difference is about BRL 100 million, 40% higher on average or greater on average. There is another point related to efficiency. Our efficiency ratio was down by 2.2%, from 2.2% to 50%. So our ambition is to reach 40% by 2028, meaning that the trend is downwards in 2026. And this drop will be even more accentuated in 2028. When the top line grows a lot, it's just natural that some OPEX grow. You see growth with OPEX. And our top line growth will be almost 10% in 2026. Also, as you increase transactions, certainly the variable cost, I mean, is different, even with. Next question from Gustavo Schroder with Citi. Bom dia, André. Obrigado, Marcelo. Bom retorno. André, Marcelo, Cassiano, it's always good to see you. Parabéns aí pela retomada do role. Congratulations on resuming. Eu ia pensar pouquinho no ciclo.
Marcelo de Araújo Noronha: Maybe the difference is about BRL 100 million, 40% higher on average or greater on average. There is another point related to efficiency. Our efficiency ratio was down by 2.2%, from 2.2% to 50%. So our ambition is to reach 40% by 2028, meaning that the trend is downwards in 2026.
Speaker #2: So our ambition is to reach 40% by 2028. Meaning that the trend is downwards in 2026. And this drop will be even more accentuated in 2028.
Marcelo de Araújo Noronha: And this drop will be even more accentuated in 2028. When the top line grows a lot, it's just natural that some OPEX grow. You see growth with OPEX. And our top line growth will be almost 10% in 2026. Also, as you increase transactions, certainly the variable cost, I mean, is different, even with.
Speaker #2: When the top line grows a lot, it's just natural that some OPACs grow. You see growth with OPACs. And our top line growth will be almost 10% in 2026.
Speaker #2: Also, as you transactions, certainly the variable cost, I mean, is different. Even with. Next question. From Gustavo Schroeder with City.
André Carvalho: Next question from Gustavo Schroder with Citi. Bom dia, André. Obrigado, Marcelo. Bom retorno. André, Marcelo, Cassiano, it's always good to see you. Parabéns aí pela retomada do role. Congratulations on resuming. Eu ia pensar pouquinho no ciclo.
Speaker #3: Bom dia. Muito bom dia, André.
Speaker #2: Good
Speaker #2: morning. André,
Speaker #3: it's always good to see you. Parabéns aí pela retomada do role.
Speaker #2: Congratulations on resuming. Oh,
Speaker #3: E 10 com 12.
Speaker #2: e starting from 10 to 12 now
Speaker #2: over 15. Eu queria pensar pouquinho I'd like to
Speaker #3: no ciclo.
Speaker #2: think a little about the investment cycle more specifically.
Marcelo de Araujo Noronha: I would like to think a little about the investment cycle, more specifically, and linking with operating efficiency. E o índice de eficiência. É importante isso, Marcelo, também mostrar. Marcelo, you were very clear in showing. And I heard an interview you gave when you said that you won't stop investing, that the focus is to maintain competitiveness. Está pensando no futuro do banco. It means that you're thinking about the future of the bank in a sustained fashion. So let's understand. What part of the cycle would you say the bank is in, particularly in terms of technology investments or investments in new products or segments? Should we start thinking about the benefits coming from operating leverage, operating efficiency, and reducing efficiency ratio? Thinking that in 2026, revenue should continue to support this step-by-step ROE improvement so that in 2027 we'll start seeing the benefits of operating efficiency.
André Carvalho: I would like to think a little about the investment cycle, more specifically, and linking with operating efficiency. E o índice de eficiência. É importante isso, Marcelo, também mostrar. Marcelo, you were very clear in showing. And I heard an interview you gave when you said that you won't stop investing, that the focus is to maintain competitiveness. Está pensando no futuro do banco.
Speaker #3: Essa questão da eficiência operacional. E de
Speaker #2: And linking
Speaker #2: with operating efficiency.
Speaker #2: And efficiency. eficiência.
Speaker #3: Marcelo, você
Speaker #3: está bem claro em mostrar. Marcelo, you're
Speaker #2: very clear in showing. And I heard an interview you gave when you said that you won't stop investing, that the focus is to maintain competitiveness.
Speaker #3: Está pensando no futuro do banco.
Speaker #2: It means that you're thinking about the future of the bank in the sustained fashion. So let's understand what part of the cycle would you say the bank is
André Carvalho: It means that you're thinking about the future of the bank in a sustained fashion. So let's understand. What part of the cycle would you say the bank is in, particularly in terms of technology investments or investments in new products or segments?
Speaker #2: in? Particularly in terms of É tecnológico. technology investments or investments in new product segments?
Speaker #3: Eu deveria começar a pensar.
Speaker #2: Should we start thinking? Should we start thinking about the benefits coming from operating
André Carvalho: Should we start thinking about the benefits coming from operating leverage, operating efficiency, and reducing efficiency ratio? Thinking that in 2026, revenue should continue to support this step-by-step ROE improvement so that in 2027 we'll start seeing the benefits of operating efficiency.
Speaker #2: leverage? Operating efficiency and
Speaker #3: É mais para
Speaker #3: 2025.
Speaker #2: ratio. Thinking that in 2026, revenue should continue to support this step-by-step ROE improvement, so that in 2027 we'll start seeing the benefits of operating efficiency.
Speaker #2: Thank you. Thank you, Gustavo. Gustavo, I would say that we are in the middle of the cycle. We are not at the end of the cycle.
Marcelo de Araujo Noronha: Thank you. Thank you, Gustavo. Gustavo, eu diria que that we are in the middle of the cycle. We are not at the end of the cycle. If you look at our plan, we spoke about stretching this until 2028. Along that period, some things are quick wins. You capture the benefits in the short term. Other things you invest in, and you're going to reap the fruits later. But we'll continue to invest in the whole renovation of the bank. Look at some US banks and Asian banks and what they have been saying. In September, I was in Asia. I had an opportunity to talk with the CEOs of other Asian organizations, and to speak with peers of that region. And everyone is investing, again, in AI funds. We see opportunities to improve efficiency, and to gain competitiveness in our relationship with our clients.
Marcelo de Araújo Noronha: Thank you. Thank you, Gustavo. Gustavo, eu diria que that we are in the middle of the cycle. We are not at the end of the cycle. If you look at our plan, we spoke about stretching this until 2028. Along that period, some things are quick wins. You capture the benefits in the short term. Other things you invest in, and you're going to reap the fruits later. But we'll continue to invest in the whole renovation of the bank.
Speaker #2: If you look at our plan, we spoke about stretching this until 2028, and along that period, some things are quick wins. You capture the benefits in the short term.
Speaker #2: Other things you invest in, and you're going to reap the fruits later. But we'll continue to invest in the whole renovation of the bank.
Speaker #2: Look at some of the US banks. What in Asian banks, and what they have been saying—in September, I was in Asia. I had an opportunity to talk with the CEOs of other Asian organizations.
Marcelo de Araújo Noronha: Look at some US banks and Asian banks and what they have been saying. In September, I was in Asia. I had an opportunity to talk with the CEOs of other Asian organizations, and to speak with peers of that region. And everyone is investing, again, in AI funds. We see opportunities to improve efficiency, and to gain competitiveness in our relationship with our clients.
Speaker #2: And to speak with peers of that region. And everyone is investing, again, in AI funds. We see opportunities to improve efficiency and to gain competitiveness in our relationship with our clients.
Speaker #2: We will not stop investing. We want to improve our infrastructure, our architecture, constantly in terms of technology. So efficiency doesn't come only because we're going to invest less.
Marcelo de Araujo Noronha: We will not stop investing. We want to improve our infrastructure, our architecture, constantly in terms of technology. So efficiency doesn't come only because we're going to invest less. And I'm going to give you my opinion in the opinion of all world banks. I don't see anyone stopping investing in technology. Technology will require growing, constant investing over time. That's my opinion. But we are going to gain in other lines. For example, lawsuits, bets, and areas where we are going to have a reduction, but not only in 2026. So we have to have efficiency gains. And we will have these efficiency gains. But this will be driven to the top line. Gustavo, you can ask me if I don't deliver the top line, but I want to deliver the top line, increase penetration, continue to grow, and delivering ROEs even better than what we currently have.
Marcelo de Araújo Noronha: We will not stop investing. We want to improve our infrastructure, our architecture, constantly in terms of technology. So efficiency doesn't come only because we're going to invest less. And I'm going to give you my opinion in the opinion of all world banks. I don't see anyone stopping investing in technology. Technology will require growing, constant investing over time.
Speaker #2: And I'm going to give you my opinion in the opinion of all world banks. I don't see anyone stopping investing in technology. Technology will require growing constant investing over time.
Speaker #2: That's my opinion. But we are going to gain in other lines. For example, lawsuits, debts, and areas where we are going to have a reduction.
Marcelo de Araújo Noronha: That's my opinion. But we are going to gain in other lines. For example, lawsuits, bets, and areas where we are going to have a reduction, but not only in 2026. So we have to have efficiency gains. And we will have these efficiency gains.
Speaker #2: But not only in 2026. So, we have to have efficiency gains, and we will have these efficiency gains. But this will be triggered to the top line.
Marcelo de Araújo Noronha: But this will be driven to the top line. Gustavo, you can ask me if I don't deliver the top line, but I want to deliver the top line, increase penetration, continue to grow, and delivering ROEs even better than what we currently have.
Speaker #2: Gustavo, you can ask me if I don't deliver the top line. But I want to deliver the top line, increase penetration, continue to grow, and deliver ROEs even better than what we currently have.
Speaker #2: My colleague yesterday said, "An airplane will never fly backwards." We are not going to fly backwards. It was 15.2% in this quarter, and we expect it to increase.
Marcelo de Araujo Noronha: My colleague yesterday said, "An airplane will never fly backwards." We are not going to fly backwards. It was 15.2% in this quarter, and we expect it to increase if we can deliver more and more, which was the case of the loan book in the past quarter. We will do it. Thank you, Gustavo. Next question from Daniel Vaz with Safra. Daniel? Bom dia, André, Noronha. Tudo bem? How are you doing? Tudo bem, tudo ótimo. Primeiro, parabéns pela entrega desses do início do plano de saúde e da deliveries since the beginning of this strategic plan. I think it's really about adapting our business strategy. We can see how dedicated the management is in readapting the bank and improving the whole quality of the portfolio while still growing. My question is focused on Cielo. Cielo is a strategic asset of yours.
Marcelo de Araújo Noronha: My colleague yesterday said, "An airplane will never fly backwards." We are not going to fly backwards. It was 15.2% in this quarter, and we expect it to increase if we can deliver more and more, which was the case of the loan book in the past quarter. We will do it. Thank you, Gustavo. Next question from Daniel Vaz with Safra.
Speaker #2: If you can deliver more and more, which was the case of the loan book in the past quarter, we will do it. Thank you, Gustavo.
Speaker #2: Next question from Daniel Vass with Safra. Daniel? Good morning.
Speaker #4: Bom dia.
André Carvalho: Daniel? Bom dia, André, Noronha. Tudo bem? How are you doing? Tudo bem, tudo ótimo. Primeiro, parabéns pela entrega desses do início do plano de saúde e da deliveries since the beginning of this strategic plan.
Speaker #2: Good morning, André Noronha. Concerning how are you doing?
Speaker #4: Good.
Speaker #2: All good. Congratulations on the result, and the delivery since the beginning of the strategic plan. I think we can see how dedicated the management is in readapting the bank and improving the whole quality of the portfolio while still growing.
André Carvalho: I think it's really about adapting our business strategy. We can see how dedicated the management is in readapting the bank and improving the whole quality of the portfolio while still growing. My question is focused on Cielo. Cielo is a strategic asset of yours.
Speaker #2: My question is focused on CLO. CLO is to take assets of yours. You're talking about integrating CLO, particularly in SMEs. Integrating CLO even more.
Marcelo de Araujo Noronha: You're talking about integrating Cielo, particularly in FME. Integrating Cielo even more, which is already partially integrated. Você coloca a perspectiva Cielo contra a rede em termos de TPV no ano? Foi uma diferença muito grande. TPV, Cielo had a big difference compared to the network. So perhaps we're thinking about the big accounts, not FME. De trajetória que é importante. Eu queria ouvir primeiro você. An important difference in trajectory. So I'd like to hear from you. What is the strategy for the large accounts? Perhaps there's a lot of profitability, and you don't want to. É uma linha importante para o banco. Vocês avançaram muito bem ali com clientes de programas que advanced a lot, also in terms of governmental programs. And that's an important liquidity for the system. But the Cielo part, in terms of strategy, the strategy is not so clear to me in 2026, 2027.
André Carvalho: You're talking about integrating Cielo, particularly in FME. Integrating Cielo even more, which is already partially integrated. Você coloca a perspectiva Cielo contra a rede em termos de TPV no ano? Foi uma diferença muito grande. TPV, Cielo had a big difference compared to the network. So perhaps we're thinking about the big accounts, not FME.
Speaker #2: It's already partially integrated. In terms of CV, CLO had a big difference compared to the network. So perhaps we're thinking about the big accounts.
Speaker #2: Not
Speaker #4: An important difference in trajectory. So, I'd like to hear from you: what is the strategy for the large account?
André Carvalho: De trajetória que é importante. Eu queria ouvir primeiro você. An important difference in trajectory. So I'd like to hear from you. What is the strategy for the large accounts? Perhaps there's a lot of profitability, and you don't want to.
Speaker #2: Perhaps there's a loss of profitability and you don't want to change that. And in SMEs, you advance a lot. Also in terms of governmental programs.
André Carvalho: É uma linha importante para o banco. Vocês avançaram muito bem ali com clientes de programas que advanced a lot, also in terms of governmental programs. And that's an important liquidity for the system. But the Cielo part, in terms of strategy, the strategy is not so clear to me in 2026, 2027.
Speaker #2: Invest in important liquidity for the system. But the CLO part, in terms of strategy, the strategy is not so clear to me in 2026, 2027.
Speaker #2: I'd like to understand what is the integration stage you're at. Well, thank you, Daniel, for the questions. Number one, regarding CLO, CLO has also been undergoing a process of transformation, which is rather significant.
Marcelo de Araujo Noronha: I'd like to understand what is the integration stage you're at. Well, thank you, Daniel, for the question. Number one, regarding Cielo. Cielo has also been undergoing a process of transformation, which is rather significant. Over the air, we created separate teams for the two partners. Today, we have a connection at different sizes: the wholesale and the corporate retail. Nessa transformação, o que a gente trabalhou junto com eles num plano foi para a gente estar mais. And we worked with them in a plan so that we'll be a lot more connected in a verticalized way, talking about cash and talking about affiliates. More than having a segregated company where I would originate something and they would work with it. No, they have to improve logistics. They did. They had to deliver Tap on Phone. They did deliver.
André Carvalho: I'd like to understand what is the integration stage you're at.
Marcelo de Araújo Noronha: Well, thank you, Daniel, for the question. Number one, regarding Cielo. Cielo has also been undergoing a process of transformation, which is rather significant. Over the air, we created separate teams for the two partners.
Speaker #2: Over there, we created separate teams for the departments. Today, we have a connection at different sizes. And the corporate retail. We worked with them in a plan so that we'll be a lot more connected in a verticalized way.
Marcelo de Araújo Noronha: Today, we have a connection at different sizes: the wholesale and the corporate retail. Nessa transformação, o que a gente trabalhou junto com eles num plano foi para a gente estar mais. And we worked with them in a plan so that we'll be a lot more connected in a verticalized way, talking about cash and talking about affiliates.
Speaker #2: Talking about cash and talking about affiliates. More than having a segregated company where I would originate something and they would work with it. No, they have to improve logistics.
Marcelo de Araújo Noronha: More than having a segregated company where I would originate something and they would work with it. No, they have to improve logistics. They did. They had to deliver Tap on Phone. They did deliver.
Speaker #2: They did. They had to deliver tap-on-phone; they did deliver. They had to deliver a whole new pricing system for the Zero; they did. They needed to deliver a connection to our app; we delivered it together.
Marcelo de Araujo Noronha: They had to deliver a whole new pricing system for the zero. They did. They needed to deliver a connection to our app. We delivered it together. So all of that is done. But you're correct. I think that there were two or three cases. I don't remember. Two or three of large accounts. E a equipe do Stanley Lau foi muito importante. And the Stanley Lau team went to the limit, took it to the limit, and decided to give up the TPV, which was important, rather than losing profitability. A capacidade de crescer brutalmente até porque. We see an ability to grow and grow a lot because we're very accelerated in traction in SMEs. And we reduce attrition with our distribution channel. And this is an army of more than 5,000 manufacturers, in addition to all of the digital offering that we have.
Marcelo de Araújo Noronha: They had to deliver a whole new pricing system for the zero. They did. They needed to deliver a connection to our app. We delivered it together. So all of that is done. But you're correct. I think that there were two or three cases. I don't remember. Two or three of large accounts. E a equipe do Stanley Lau foi muito importante.
Speaker #2: So all of that is done. But you're correct. I think that there were two or three cases. I don't remember. Two or three, of large accounts.
Speaker #2: And the Stanilo team went to the limit. It took it to the limit and decided to give up the TPV, which was important rather than losing profitability.
Marcelo de Araújo Noronha: And the Stanley Lau team went to the limit, took it to the limit, and decided to give up the TPV, which was important, rather than losing profitability. A capacidade de crescer brutalmente até porque. We see an ability to grow and grow a lot because we're very accelerated in traction in SMEs. And we reduce attrition with our distribution channel. And this is an army of more than 5,000 manufacturers, in addition to all of the digital offering that we have.
Speaker #2: So we saw an ability to grow and grow a lot because we're very accelerated in traction. In SMEs, and we reduced attrition with our distribution channels.
Speaker #2: And this is an army of more than 5,000 managers in addition to all of the digital offerings that we have. So we are going to move forward.
Speaker #2: You have to show yourself that. But we are not going ing to throw away money with margins that are effectively very reduced. Regarding SMEs, our SMEs, we are growing not only in government lines, our expectation is to continue to grow with a very similar number that we had in 2025.
Marcelo de Araujo Noronha: So we are going to move forward. You rest assured of that. But we are not going to throw away money with margins that are effectively very reduced. Regarding SMEs, our SMEs, we are growing not only in government lines. Our expectation is to continue to grow. Número muito parecido com o que a gente fez em 2025. We're very similar in number that we had in 2025. Indeed, we haven't got the final number, okay, Daniel? The final number regarding government or total government programs. But we have enough. And the estimate is that we had 25% to 26% market share. We were the bank that operated the most government lines last year. We have an initial estimate, our own estimate, not market estimates. But let's wait for official data. But that's kind of that level. We have good traction.
Marcelo de Araújo Noronha: So we are going to move forward. You rest assured of that. But we are not going to throw away money with margins that are effectively very reduced. Regarding SMEs, our SMEs, we are growing not only in government lines. Our expectation is to continue to grow. Número muito parecido com o que a gente fez em 2025.
Speaker #2: Indeed, we haven't got the final number, okay? Daniel? The final number regarding government or total government programs. But we have enough investment is that we had 26 or 25 to 26% market share.
Marcelo de Araújo Noronha: We're very similar in number that we had in 2025. Indeed, we haven't got the final number, okay, Daniel? The final number regarding government or total government programs. But we have enough. And the estimate is that we had 25% to 26% market share.
Speaker #2: We put the bank that operated the most government lines last year. We our own estimate, not market have an initial estimate estimate. But let's wait for official data.
Marcelo de Araújo Noronha: We were the bank that operated the most government lines last year. We have an initial estimate, our own estimate, not market estimates. But let's wait for official data. But that's kind of that level. We have good traction.
Speaker #2: But that's kind of that level. We have good traction. But we can only do all that because of the kind of structuring we have.
Marcelo de Araujo Noronha: But we can only do all that because of the kind of structuring we have in the SMEs segment, and also because of our technology deliveries, our ability to hire through our digital channels, the whole modeling of the credit BU portfolio management. So we are not granting credit just because we have a government guarantee. We have a lot of criteria. And it's always about our risk-adjusted returns. We have a program to price each one of these government programs. So we have a lot of traction. We ended the year with high traction, and we believe that we will continue to deliver good results. And Marcelo, from you. This is one of the important pillars of technology this year. We created our app for business with totally different technology embedded to it. And this is a very important reinforcement for this.
Marcelo de Araújo Noronha: But we can only do all that because of the kind of structuring we have in the SMEs segment, and also because of our technology deliveries, our ability to hire through our digital channels, the whole modeling of the credit BU portfolio management.
Speaker #2: In the SMEs segment. And also because of our technology deliveries, our ability to hire, to our digital channels, the whole modeling of the credit VU for the management.
Speaker #2: So we are not granting credit just because we have government guarantee. We have a lot of criteria. And it's always about our risk-adjusted return.
Marcelo de Araújo Noronha: So we are not granting credit just because we have a government guarantee. We have a lot of criteria. And it's always about our risk-adjusted returns. We have a program to price each one of these government programs. So we have a lot of traction. We ended the year with high traction, and we believe that we will continue to deliver good results. And Marcelo, from you.
Speaker #2: We have a program to price each one of these government programs. So we have a lot of traction. We ended the year with high traction.
Speaker #2: And we believe that we will continue to deliver good results. And Masalo, come here. This is one of the important pillars of technology this year.
Marcelo de Araújo Noronha: This is one of the important pillars of technology this year. We created our app for business with totally different technology embedded to it. And this is a very important reinforcement for this.
Speaker #2: We created our app for business with a totally different technology embedded in it. And this is a very important reinforcement for this. Yeah, we're migrating 500,000 clients to this new experience that Cassiano just mentioned.
Marcelo de Araujo Noronha: Yeah, we're migrating 500,000 clients to this new experience that Cassiano just mentioned. So that's another important information. We are increasing our competitiveness with Cielo being integrated. Next question from Yuri Fernandes with J.P. Morgan. Obrigado, André. Bom dia, Noronha. Thank you, André. Good morning, Noronha. Cassiano, thank you. I mean, your long-term view. A visão de longo prazo, né? Your long-term view. I mean, I know sometimes it's not easy to invest in the future, but you are delivering improvements gradually. So thank you and congratulations for it. I mean, my question is about capital. I mean, CET1 is very close to 11. I think this quarter was 11.2. But for 2026, there might be some challenges. There are some prudential adjustments coming forward: 49.66, operating risk.
Marcelo de Araújo Noronha: Yeah, we're migrating 500,000 clients to this new experience that Cassiano just mentioned. So that's another important information. We are increasing our competitiveness with Cielo being integrated. Next question from Yuri Fernandes with J.P. Morgan. Obrigado, André. Bom dia, Noronha. Thank you, André. Good morning, Noronha. Cassiano, thank you. I mean, your long-term view. A visão de longo prazo, né? Your long-term view. I mean, I know sometimes it's not easy to invest in the future, but you are delivering improvements gradually. So thank you and congratulations for it. I mean, my question is about capital. I mean, CET1 is very close to 11. I think this quarter was 11.2. But for 2026, there might be some challenges. There are some prudential adjustments coming forward: 49.66, operating risk.
Speaker #2: So that's another important information. We are increasing our competitiveness with CLO being integrated. Next, Yuri Fernandez, would you be Morgan? Thank you. Thank you, Andrea.
Speaker #2: Good morning. Cassiano, thank you. I mean, you're a long-term view. You're a long-term view. I mean, I know sometimes it's not easy to invest in the future.
Speaker #2: But you are delivering improvements gradually, so thank you, and congratulations for it. I mean, my question is about capital. I mean, CT1 is very close to 11.
Speaker #2: I think this quarter was 11.2, but for 2026, there might be some challenges. There are some financial adjustments coming forward, 4,966, operating risk, so can you please elaborate a little bit about the capital outlook—whether CET1 should remain at 11 or maybe possibly it will be slightly lower and you would gradually increase it?
Marcelo de Araujo Noronha: So, can you please elaborate a little bit about the capital outlook, whether CET1 should remain at 11 or maybe possibly it will be slightly lower and you would gradually increase it? And in addition to that prudential adjustment, my other question has to do with your portfolio growth. I mean, you posted a very positive growth message. And like you said, the bank is well tractioned. But this 9.5% growth in the portfolio with retained profits, the retained profits in the middle of the guidance also might imply some capital consumption. So going back to my question, will it remain at 11 or it will go slightly above? So if you can tell me something else about CET1, I would appreciate it. Thank you. You were constantly provoking us about this topic, and I really enjoy your provocation. So thank you again for joining us today.
Marcelo de Araújo Noronha: So, can you please elaborate a little bit about the capital outlook, whether CET1 should remain at 11 or maybe possibly it will be slightly lower and you would gradually increase it? And in addition to that prudential adjustment, my other question has to do with your portfolio growth. I mean, you posted a very positive growth message. And like you said, the bank is well tractioned. But this 9.5% growth in the portfolio with retained profits, the retained profits in the middle of the guidance also might imply some capital consumption. So going back to my question, will it remain at 11 or it will go slightly above? So if you can tell me something else about CET1, I would appreciate it. Thank you. You were constantly provoking us about this topic, and I really enjoy your provocation. So thank you again for joining us today.
Speaker #2: And in addition to that potential adjustment, my question has to do with your portfolio growth. I mean, you posted a very positive growth message.
Speaker #2: And like you said, the bank is well traction. But this 9.5% growth in the portfolio with retained profit, the retained profits in the middle of the guidance also might imply some capital consumption.
Speaker #2: So, going back to my question, will we remain at 11 or will it go slightly above? If you can tell me something else about CT1, I would appreciate it.
Speaker #2: Thank you. You were constantly provoking us about this topic. And I really enjoy your provocations. So thank you again for joining us today. I would like Andrea to start answering your question and then I will follow through.
Marcelo de Araujo Noronha: I would like André to start answering your question, and then I will follow through. Thank you, Yuri. In terms of CET1 of around 11%, that's what we expect to have to about 2026. We are here talking about loan book growing at 9.5%, and we look at 9.2% in the first quarter going up vis-à-vis what it was in 2025. Interest on equity that was BRL 14.5 billion last year, it will go up this year for above BRL 15 million. Our capital absorbs that in the portfolio growth, increase in interest on equity. And here we also have DTA, like you said. CET1, it's around 11%. In the first quarter of the year, we know that we have the regulatory measures, operating risk, the 49.66 issue. Everything has been computed whenever we mentioned CET1 of around 11% for this year.
Marcelo de Araújo Noronha: I would like André to start answering your question, and then I will follow through. Thank you, Yuri. In terms of CET1 of around 11%, that's what we expect to have to about 2026. We are here talking about loan book growing at 9.5%, and we look at 9.2% in the first quarter going up vis-à-vis what it was in 2025. Interest on equity that was BRL 14.5 billion last year, it will go up this year for above BRL 15 million. Our capital absorbs that in the portfolio growth, increase in interest on equity. And here we also have DTA, like you said. CET1, it's around 11%. In the first quarter of the year, we know that we have the regulatory measures, operating risk, the 49.66 issue. Everything has been computed whenever we mentioned CET1 of around 11% for this year.
Speaker #2: Thank you, Yuri. In terms of CT1 of around 11%, that's what we expect to have about 2026. We are here talking about loan growth at 9.5%.
Speaker #2: And we look at full CT1 of 9.2% in the first quarter, going up vis-à-vis what it was in 2025. So, interest on equity that was R$14.5 billion last year, it will go up this year to above R$50 million.
Speaker #2: Our capital absorbs that portfolio growth, increase in interest on equity, and here we also have DTA, like you said. So CT1, it's around 11%.
Speaker #2: In the first quarter of the year, we know that we have the regulatory measures operating risk, the 4966 issue. So everything has been computed whenever we mention CT of around 11 for this year.
Speaker #2: There might be some fluctuations, but it will be around the 11 number. But our baseline is 11. But there might be some fluctuation, for the reasons already explained by Andrea.
Marcelo de Araujo Noronha: There might be some fluctuations, but it will be around the 11 number. But our baseline is 11. But there might be some fluctuations for the reasons already explained by André. But it will be around 11, and this is important. Yuri, I would just, I'm not going to repeat what they said because this is what we expect to see. But two years ago, we told you that we have a lot of discipline when it comes to capital. And every year, we review our DTA or tax credit horizon for 10 years, meaning that we are constantly monitoring that. And we also evaluate all of the opportunities, as you put it yourself. Therefore, we are constantly looking at that. And back then, we said that we would have enough capital. But look at our allocation in our loan portfolio, turnover on the wholesale bank.
Marcelo de Araújo Noronha: There might be some fluctuations, but it will be around the 11 number. But our baseline is 11. But there might be some fluctuations for the reasons already explained by André. But it will be around 11, and this is important. Yuri, I would just, I'm not going to repeat what they said because this is what we expect to see. But two years ago, we told you that we have a lot of discipline when it comes to capital. And every year, we review our DTA or tax credit horizon for 10 years, meaning that we are constantly monitoring that. And we also evaluate all of the opportunities, as you put it yourself. Therefore, we are constantly looking at that. And back then, we said that we would have enough capital. But look at our allocation in our loan portfolio, turnover on the wholesale bank.
Speaker #2: But it will be around 11, and this is important. I would just—I'm not going to repeat what they said because this is what we expect to see.
Speaker #2: But two years ago, we told you that we have a lot of discipline when it comes to capital. And every year, we review our DTA or tax credit horizon for 10 years.
Speaker #2: That means we are constantly monitoring that. And we also evaluate all of the opportunities, as you put it yourself. Therefore, we are constantly looking at that.
Speaker #2: And back then, we said that we would have enough capital. But look at our allocation in our loan portfolios. Turnover on the wholesale bank—therefore, everything we are doing is very well planned and coordinated.
Marcelo de Araujo Noronha: Therefore, everything we are doing is very well planned and coordinated. So I can even go further. I think we can surprise you more than anything else. Just in terms of our CET or common equity. And of course, net income will grow and our return as well. Obviously, 14.67 is a challenge, more for some banks than others. É ao longo de 10 anos, mas veja, você tem intersecção aqui. For the period of 10 years. But there is an intersection here, which is 26, 27, and 28. 28 are the heaviest years. After that, when the horizon may change. Therefore, we are very confident about everything we are doing and in terms of the capital that we are allocating. Well, thank you. Thank you for your provocation. Obrigado, Yuri. Thank you, Yuri. Next question from Marcos with Santander. Nair, go ahead. Oi, pessoal. Bom dia.
Marcelo de Araújo Noronha: Therefore, everything we are doing is very well planned and coordinated. So I can even go further. I think we can surprise you more than anything else. Just in terms of our CET or common equity. And of course, net income will grow and our return as well. Obviously, 14.67 is a challenge, more for some banks than others. É ao longo de 10 anos, mas veja, você tem intersecção aqui. For the period of 10 years. But there is an intersection here, which is 26, 27, and 28. 28 are the heaviest years. After that, when the horizon may change. Therefore, we are very confident about everything we are doing and in terms of the capital that we are allocating. Well, thank you. Thank you for your provocation. Obrigado, Yuri. Thank you, Yuri. Next question from Marcos with Santander. Nair, go ahead. Oi, pessoal. Bom dia.
Speaker #2: So I can even go further. I think we can surprise you more than anything else, just in terms of our CT or common equity.
Speaker #2: And of course, net income will grow and our return as well. Obviously, 14.67 is a challenge. More for some banks than others. It is for the period of 10 years.
Speaker #2: But there is an intersection here. Which is 26, 27, and 28 are the heaviest years. But after that, when the horizon may change. Therefore, we are very confident about everything we are doing.
Speaker #2: And in terms of the capital that we are allocating—well, thank you. Thank you for your provocation. Thank you, Yuri. Next question, from Naidu Hills with Santander Bank.
Speaker #2: Nair, go ahead. Oi, pessoal, bom dia.
Speaker #1: Good morning. Okay, now you can hear me.
Speaker #2: Beleza, bom dia. Obrigada pela apresentação também.
Marcelo de Araujo Noronha: É o Marcos, não é? Good morning. Okay, now you can hear me. Beleza. Bom dia. Obrigada pela apresentação também pelos dados. Thank you for the presentation and for taking my questions. Eu queria explorar pouco mais o tema do consignado. I would just like to revisit the payroll loan. I think Noronha said something about it. But if you could elaborate a bit more about your appetite and expectations for payroll loans, and more specifically private payroll loans. And I know that on the public side, you gained some important and relevant market share. Well, we are very, very well positioned to grow. Gain market, of course. That depends on the competition, but I think we are well positioned to gain market share. Well, we gain market share on the public side.
Marcelo de Araújo Noronha: É o Marcos, não é? Good morning. Okay, now you can hear me. Beleza. Bom dia. Obrigada pela apresentação também pelos dados. Thank you for the presentation and for taking my questions. Eu queria explorar pouco mais o tema do consignado. I would just like to revisit the payroll loan. I think Noronha said something about it. But if you could elaborate a bit more about your appetite and expectations for payroll loans, and more specifically private payroll loans. And I know that on the public side, you gained some important and relevant market share. Well, we are very, very well positioned to grow. Gain market, of course. That depends on the competition, but I think we are well positioned to gain market share. Well, we gain market share on the public side.
Speaker #1: Thank you for the
Speaker #1: presentation and for taking the question.
Speaker #2: Eu queria falar pouco mais do tema
Speaker #2: do consignado.
Speaker #1: you to revisit the parallel in Noronha said something about it. But if you could elaborate a bit more about your appetite and expectations for payroll loans and more specifically private payroll loans.
Speaker #1: And I know that, on the public side, you gained some important and relevant market share. Well, we are very, very well positioned to grow.
Speaker #1: Gain market, of course, that depends on the competition. But I think we are well positioned to gain market share. Well, we gain market share on the public side.
Speaker #1: INS said that involves a lot of market discussions and things related to the management of INSs when it comes to payroll loans. But we are also very well positioned with INS efforts on the private side.
Marcelo de Araujo Noronha: INSS, that involves a lot of market discussions and things related to the management of INSS when it comes to payroll loans. But we are also very well positioned with INSS. But on the private side, we tend to increase our share. And as I said, we deploy models that are highly competitive 24/7. We are growing. We've seen that in the past quarter of 2025, the last quarter of last year. And we will see the same things happening throughout the year. Therefore, I'm very optimistic in terms of everything that we are doing to grow and to gain share. Thank you for your question. Next question from Renato Meloni with Autonomous. Bom dia, pessoal. Obrigada por todas as perguntas. Eu queria também enviar para meus colegas parabenizar também. I'd like to thank my colleagues and congratulate you on the deliveries. This plan was announced.
Marcelo de Araújo Noronha: INSS, that involves a lot of market discussions and things related to the management of INSS when it comes to payroll loans. But we are also very well positioned with INSS. But on the private side, we tend to increase our share. And as I said, we deploy models that are highly competitive 24/7. We are growing. We've seen that in the past quarter of 2025, the last quarter of last year. And we will see the same things happening throughout the year. Therefore, I'm very optimistic in terms of everything that we are doing to grow and to gain share. Thank you for your question. Next question from Renato Meloni with Autonomous. Bom dia, pessoal. Obrigada por todas as perguntas. Eu queria também enviar para meus colegas parabenizar também. I'd like to thank my colleagues and congratulate you on the deliveries. This plan was announced.
Speaker #1: We tend to increase our share. And, as I said, we deploy models that are highly competitive, 24 by 7. We are growing. We've seen that in the past quarter of 2025.
Speaker #1: The last quarter of last year. And we will see the same things happening throughout the year. Therefore, I'm very optimistic in terms of everything that we are doing to grow and to gain share.
Speaker #1: Thank you for your question. Question from Renato Meloni with Autónomos.
Speaker #3: Bom dia, pessoal. Obrigada por todas as perguntas, e queria também reconhecer os meus colegas e parabenizar também pelo longo alcance deste ano de acomodação, de ajuste, ou da incerteza em relação às eleições que pode trazer um viés mais conservador no presente.
Marcelo de Araujo Noronha: I think the results showed the whole work that was done. Over the years, you showed a lot of R&D expansion. When we look at the guidance at the mid-range, it will be similar to that of Q4. So I'd like to understand: do you expect 2026 to be a year of accommodation, settling, or the uncertainty regarding the elections may do you be more conservative in the guidance? Now, moving to 2027. If we have this scenario of accommodation, I think that in 2027, we bring the ROEs to more reasonable levels. What would be the levers in revenue to increase profitability? Thank you. Renato, thank you for the question. I'd say that I don't see a year of settling for us. I think it's part of our plan. Again, we will improve step by step because we'll continue to invest to increase competitiveness.
Marcelo de Araújo Noronha: I think the results showed the whole work that was done. Over the years, you showed a lot of R&D expansion. When we look at the guidance at the mid-range, it will be similar to that of Q4. So I'd like to understand: do you expect 2026 to be a year of accommodation, settling, or the uncertainty regarding the elections may do you be more conservative in the guidance? Now, moving to 2027. If we have this scenario of accommodation, I think that in 2027, we bring the ROEs to more reasonable levels. What would be the levers in revenue to increase profitability? Thank you. Renato, thank you for the question. I'd say that I don't see a year of settling for us. I think it's part of our plan. Again, we will improve step by step because we'll continue to invest to increase competitiveness.
Speaker #3: Now, moving to 2027. If we have this scenario of accommodation, I think that in 2027, we'll bring very reasonable, reasonable levels. What would be the levers in revenue to increase profitability?
Speaker #3: Thank
Speaker #3: you. Renato, thank you for the
Speaker #1: I'd say that I don't see a year of settling for us. I think it's part of our plan. Again, we will improve step by step.
Speaker #1: Because we'll continue to invest, to increase competitiveness. I don't want to be repetitive, but this is our mantra. We focus on this all the time.
Marcelo de Araujo Noronha: I don't want to be repetitive, but this is our mantra. We focus on this all the time. Regarding the ROE, yesterday we were laughing about this. An aircraft will not fly backwards. So there's no chance the world will last in 15%. Actually, André, you're my witness, and Cassiano as well. I said a year ago I'm more optimistic. I'm more pointing to the upper range of the guidance than focusing on the lower band of the guidance. Of course, this year I'm a little more optimistic. So what we actually saw, Renato, is that the market somehow started bringing the expectation of a net income to BRL 30 to 31 billion. And the role of IR is to correct the course. You don't have a 30 to 40% gap year-over-year. Because we continue to invest in our transformation. Remember that. I see a higher and growing ROE.
Marcelo de Araújo Noronha: I don't want to be repetitive, but this is our mantra. We focus on this all the time. Regarding the ROE, yesterday we were laughing about this. An aircraft will not fly backwards. So there's no chance the world will last in 15%. Actually, André, you're my witness, and Cassiano as well. I said a year ago I'm more optimistic. I'm more pointing to the upper range of the guidance than focusing on the lower band of the guidance. Of course, this year I'm a little more optimistic. So what we actually saw, Renato, is that the market somehow started bringing the expectation of a net income to BRL 30 to 31 billion. And the role of IR is to correct the course. You don't have a 30 to 40% gap year-over-year. Because we continue to invest in our transformation. Remember that. I see a higher and growing ROE.
Speaker #1: Regarding the ROE—again, internal joke. Yesterday, we were laughing about this. An aircraft will not fly backwards, so there's no chance the world will last in 15 years.
Speaker #1: Thank you, Andrea. You're my witness—Cassiano as well. I said a year ago, I'm more optimistic pointing to the upper ranks of the guidance than focusing on the lower band of the guidance.
Speaker #1: Of course, this year, I'm a little more optimistic. So what we actually saw, Renato, is that the market somehow started bringing the expectation of a net income to 30, 31 billion and the role of IR is to correct the course.
Speaker #1: You don't have a 30 or 40 percent leap year on year, because we continue to invest in our transformation—remember that. I see a higher and growing ROE.
Speaker #1: Indeed, you mentioned the macroeconomic aspect. It is true. We should have a little more volatility in the second half because of the elections that are on the natural.
Marcelo de Araujo Noronha: Indeed, you mentioned the macroeconomic aspect. It is true. We should have a little more volatility in the second half because of the elections. That is only natural. But I am optimistic regarding what we are doing, our ability to compete in terms of the expectation of our economists. We'll have the GDP growth and unemployment rates very balanced. So we have a lot of opportunity for growth. With the interest rate cuts, if they happen a little faster, this will help some companies regarding their costs if they're a little bit more leveraged. So, of course, the macroeconomic environment does have an influence for all players in the market. But I see us with a lot of opportunities to grow the ROE. And if we can deliver superior absolute results, just like the loan book that grew 11% when in September it was growing 9.6%, we'll do it.
Marcelo de Araújo Noronha: Indeed, you mentioned the macroeconomic aspect. It is true. We should have a little more volatility in the second half because of the elections. That is only natural. But I am optimistic regarding what we are doing, our ability to compete in terms of the expectation of our economists. We'll have the GDP growth and unemployment rates very balanced. So we have a lot of opportunity for growth. With the interest rate cuts, if they happen a little faster, this will help some companies regarding their costs if they're a little bit more leveraged. So, of course, the macroeconomic environment does have an influence for all players in the market. But I see us with a lot of opportunities to grow the ROE. And if we can deliver superior absolute results, just like the loan book that grew 11% when in September it was growing 9.6%, we'll do it.
Speaker #1: But I am optimistic regarding what we are doing. Our ability to compete in terms of the expectation of our economists will have the GDP growth and unemployment rate very balanced.
Speaker #1: So we have a lot of opportunity for growth. With the interest rate cuts, they happen a little faster and this will help some companies regarding their costs.
Speaker #1: If they're a little bit more leveraged, so of course, the macroeconomic environment does have an influence for all players in the market. But I see us with a lot of opportunities to grow the ROE and if we can deliver superior absolute results, just like the long book that grew 11% when in September it was growing 9.6%.
Speaker #1: We'll do it. We're not wasting time. We're not waiting space or losing space. And please remember, what I explained here, Renato. How well aligned increasing penetration I spoke about principle segment, SME, corporates doing well.
Marcelo de Araujo Noronha: We're not wasting time. We're not wasting space. And please remember what I explained here, Renato. We are well aligned. Increasing penetration. I spoke about Principal segment, SME, corporates doing well. The insurance company, I mean, they are delivering a lot. And there are several verticals. Earlier today in the press conference, even spoke about the continuity of growth in pension plans, active distribution there. So I see 2026 with optimism. I think that there is a structural issue in Brazil in terms of the fiscal aspect and the public debt. But if we're able to look at the public debt, regardless of the presidential candidate, if we improve that for 2027-28, we'll improve the market expectations. And he asked about the levers to increase profitability. Renato, I can say that it's almost everything: credit. We're growing it with the right drivers. O crédito público é de maior risco.
Marcelo de Araújo Noronha: We're not wasting time. We're not wasting space. And please remember what I explained here, Renato. We are well aligned. Increasing penetration. I spoke about Principal segment, SME, corporates doing well. The insurance company, I mean, they are delivering a lot. And there are several verticals. Earlier today in the press conference, even spoke about the continuity of growth in pension plans, active distribution there. So I see 2026 with optimism. I think that there is a structural issue in Brazil in terms of the fiscal aspect and the public debt. But if we're able to look at the public debt, regardless of the presidential candidate, if we improve that for 2027-28, we'll improve the market expectations. And he asked about the levers to increase profitability. Renato, I can say that it's almost everything: credit. We're growing it with the right drivers. O crédito público é de maior risco.
Speaker #1: The insurance company, I mean, they are delivering a lot. And there are several verticals earlier today in the press conference. Even spoke about the continuity of growth in pension plans, active distribution there.
Speaker #1: So, I see 2026 with optimism. I think that there is a structural issue in Brazil, in terms of fiscal aspects and the public debt.
Speaker #1: But if we're able to look at the public debt, regardless of the substantial candidates, if we improve that for 2027-28, we'll improve the market expectations.
Speaker #1: And yes, about the levers to increase profitability. Renato, I can say that it's almost everything credit. We're growing it. We're the right drivers. But we are not operating in the higher rates segment.
Speaker #1: For credit cards, mid-income and high-income, lower-income ROE capital is lower. Credit is a big driver. Liability management—the liability management we've been doing and the growth that we've been posting, and we've posted a lot of growth.
Marcelo de Araujo Noronha: Você viu no cartão de crédito. But we are not operating in the higher segment for credit card. Mas no conjunto, se a gente olha para a maior renda e lower income, o capital is lower. O crédito é uma alavanca importante. Credit is a big driver. O liability management, the liability management we've been doing and the growth that we've been posting. And we've posted a lot of growth. A própria receita de serviço que eu coloquei, o que é que é a alavanca principal naquelas linhas? Income, the main levers, and the detractor. Também é outra. The insurance group. As outras ligadas. And the payments, the consortium business, our consortium business at full speed, the ability for auto loans in our own channels and external channels, and so on and so forth. So I see a lot of opportunity because our organization is diversified.
Marcelo de Araújo Noronha: Você viu no cartão de crédito. But we are not operating in the higher segment for credit card. Mas no conjunto, se a gente olha para a maior renda e lower income, o capital is lower. O crédito é uma alavanca importante. Credit is a big driver. O liability management, the liability management we've been doing and the growth that we've been posting. And we've posted a lot of growth. A própria receita de serviço que eu coloquei, o que é que é a alavanca principal naquelas linhas? Income, the main levers, and the detractor. Também é outra. The insurance group. As outras ligadas. And the payments, the consortium business, our consortium business at full speed, the ability for auto loans in our own channels and external channels, and so on and so forth. So I see a lot of opportunity because our organization is diversified.
Speaker #1: See and commission income domain levers and the factors that's another line the insurance group. And the payments. And the other areas, payments, our consortium, business, at full speed, the ability for auto loans in our own channels and external channels.
Speaker #1: And so on and so forth. So I see a lot of opportunities, diversified, because our organization is—We have different revenue sources at different—review this, and this will increase our selling a lot.
Marcelo de Araujo Noronha: We have different revenue sources at different moments. This year, we will review the terms, and this will increase cross-selling a lot. We spoke about the Bradesco Expresso, distributing a lot, more consortia operations, insurance, payroll deductible loans, but also Bradesco Financiamentos, selling more insurance. So we have a number of opportunities for cross-selling. Our business app that will have Cielo soon having insurance, dental insurance. So it's all part of operating leverage for us. Thank you, Renato. Next question from Thiago Batista with UBS. Thiago? Bom dia, André, Noronha, Cassiano. Good morning, everyone. A minha pergunta aqui vai fazer paralelo com o que você acabou de comentar aqui sobre a boa performance da seguradora. Quite strong performance at the insurance group. O tamanho da seguradora sobre o lucro total do consolidado era ali 20%? The share of the insurance group was about 20%. Chegou a quase 50%.
Marcelo de Araújo Noronha: We have different revenue sources at different moments. This year, we will review the terms, and this will increase cross-selling a lot. We spoke about the Bradesco Expresso, distributing a lot, more consortia operations, insurance, payroll deductible loans, but also Bradesco Financiamentos, selling more insurance. So we have a number of opportunities for cross-selling. Our business app that will have Cielo soon having insurance, dental insurance. So it's all part of operating leverage for us. Thank you, Renato. Next question from Thiago Batista with UBS. Thiago? Bom dia, André, Noronha, Cassiano. Good morning, everyone. A minha pergunta aqui vai fazer paralelo com o que você acabou de comentar aqui sobre a boa performance da seguradora. Quite strong performance at the insurance group. O tamanho da seguradora sobre o lucro total do consolidado era ali 20%? The share of the insurance group was about 20%. Chegou a quase 50%.
Speaker #1: We spoke about the fiscal expresso, distributing a lot more consortia operations, insurers, payroll-deductible loans, but also the fiscal financiamentos. Selling more insurance. So we have a number of opportunities for cross-selling.
Speaker #1: Our business apps that will have CLO will soon have insurance dental insurance. So it's all part of operating levels for us. Thank you, Renato.
Speaker #1: The next question from Tiago Batista with UBS. Tiago, good morning. Andrea, good morning. Good morning, everyone.
Speaker #2: A minha pergunta aqui vai fazer um paralelo com o que você acabou de comentar aqui sobre a boa performance das...
Speaker #2: seguradoras. In recent
Speaker #1: Years, it was about 20%. We got to almost 50% in 2024. But in recent quarters, it became relevant again in the consolidated insurance group. This is due to an ROE.
Marcelo de Araujo Noronha: It got to almost 50% in 2023. Eu vi os primeiros drops em quarters, e it became relevant again. Mais ou menos o lucro consolidado 40% veio da seguradora. In consolidated. Obviamente, parte disso é o médio da seguradora. A much higher percentage came from the insurance group. This is due to an ROE. Mas parte também é o banco que custe baixo. Pergunta aqui sobre tópicos. Primeira, qual que é a relevância quando a gente pensa no médio da seguradora? When we think about the metrics, how much of the results come from the insurance group? A potência da seguradora está atrapalhando, entre aspas, the power of the organization do banco. The consumption of DTAs se a seguradora começa a cair either in 2026 or DTAs start dropping or not. Obrigado, Thiago. Thank you, Thiago. Não atrapalha o primeiro.
Marcelo de Araújo Noronha: It got to almost 50% in 2023. Eu vi os primeiros drops em quarters, e it became relevant again. Mais ou menos o lucro consolidado 40% veio da seguradora. In consolidated. Obviamente, parte disso é o médio da seguradora. A much higher percentage came from the insurance group. This is due to an ROE. Mas parte também é o banco que custe baixo. Pergunta aqui sobre tópicos. Primeira, qual que é a relevância quando a gente pensa no médio da seguradora? When we think about the metrics, how much of the results come from the insurance group? A potência da seguradora está atrapalhando, entre aspas, the power of the organization do banco. The consumption of DTAs se a seguradora começa a cair either in 2026 or DTAs start dropping or not. Obrigado, Thiago. Thank you, Thiago. Não atrapalha o primeiro.
Speaker #1: The power of the organization. But in 2026, will DTAs start dropping or not? Thank you, Tiago. For the insurance group, we're not getting in the way in terms of consumption of DTAs.
Speaker #1: And that is important to me. What we have been seeing in terms of DTAs is that this is a year when we will try to neutralize the nominal part.
Marcelo de Araujo Noronha: But the insurance group is not getting in the way in terms of consumption of DTAs, and that is important to mention. What we have been seeing in terms of DTAs is that this is a year when we will try to neutralize the nominal portion. We will see a reduction of DTAs in 2027-2028, and this is part of our plan stretching until 2028, as Marcelo mentioned. That is super important. Eu acho que and I think that we've had the best allocation possible in managing the cost of capital. It has to do with the tax credit. E qual vai ser a segunda parte da pergunta? Well, the insurance group also pays dividends to the controlling shareholders. So you see, the insurance group isso é strength to use. Not the other way around. It is diversified. It is the biggest insurance group in Latin America.
Marcelo de Araújo Noronha: But the insurance group is not getting in the way in terms of consumption of DTAs, and that is important to mention. What we have been seeing in terms of DTAs is that this is a year when we will try to neutralize the nominal portion. We will see a reduction of DTAs in 2027-2028, and this is part of our plan stretching until 2028, as Marcelo mentioned. That is super important. Eu acho que and I think that we've had the best allocation possible in managing the cost of capital. It has to do with the tax credit. E qual vai ser a segunda parte da pergunta? Well, the insurance group also pays dividends to the controlling shareholders. So you see, the insurance group isso é strength to use. Not the other way around. It is diversified. It is the biggest insurance group in Latin America.
Speaker #1: We have seen a reduction of DTAs in 2027–28. And this is part of our plan, stretching until 2028, as Marcelo mentioned. And that is super important.
Speaker #1: And I think that we've had the best allocation possible in managing the cost of capital. And it has to do with credit. What was the second part, with the tax part of the question?
Speaker #1: The comment to make, periodically, the insurance group also pays dividends to the consolidation holders. So we declare it and they pay it. So you see, the insurance group is a strength to us.
Speaker #1: Other way around. It is not the diversified. It is the biggest insurance group in Latin America. We have a fraction in the banks' channels to distribute insurance.
Marcelo de Araujo Noronha: We have a huge traction in the banks' channels to distribute insurance, but we also have external distribution of insurance, reaching out to other clients which were not necessarily reached out by our internal channels. But we don't hope that the insurance group will do less. We want them to do more. We have an expectation of growing even more. This is what we are seeing. But the bank is investing a lot. We're investing in technology, 22% in 2025 over 2024. The bank is investing in technology. Considering BF consortium and so on and so forth, what I see is over time we should have 2/3 from the bank, 1/3 from the insurance group. But if this means that the insurance group will grow a lot more and have a bigger share, I'm happy. I want to deliver more. And this is our expectation.
Marcelo de Araújo Noronha: We have a huge traction in the banks' channels to distribute insurance, but we also have external distribution of insurance, reaching out to other clients which were not necessarily reached out by our internal channels. But we don't hope that the insurance group will do less. We want them to do more. We have an expectation of growing even more. This is what we are seeing. But the bank is investing a lot. We're investing in technology, 22% in 2025 over 2024. The bank is investing in technology. Considering BF consortium and so on and so forth, what I see is over time we should have 2/3 from the bank, 1/3 from the insurance group. But if this means that the insurance group will grow a lot more and have a bigger share, I'm happy. I want to deliver more. And this is our expectation.
Speaker #1: external But we also have distribution. We see other clients, which we're not necessarily reached out channels. But we don't hope that the by our internal insurance group will do less.
Speaker #1: We want them to do more. We have an expectation, and it is growing even more. This is what we are seeing. But the bank is investing in technology.
Speaker #1: 22% in 2025 over 2024. The bank is investing in technology. Sometimes we capture the value, considering the BF consortium, and so on and so forth.
Speaker #1: So what I the insurance group. But if this 2/3 from the bank, 1/3 from a lot more and have a bigger share, I'm happy.
Speaker #1: Deliver more. I want to, and this is our expectation. We are very pleased with the results there, and with the other related companies. So you'll see that we will be taking off in our ROE and absolute profit.
Marcelo de Araujo Noronha: We are very pleased with the results there and with the other related companies. So you'll see that we will be taking off in our ROE and absolute profit. Thank you. Next question from Matheus Guimarães with XP. Good morning. Bom dia, André. Bom dia, Cassiano e Noronha. Parabéns pelos resultados. Congrats on the results. E obrigado pela oportunidade de fazer a pergunta. Eu queria explorar pouquinho o tema de M&A. Eu acho que o Renato até trouxe o da SME topic. I think André talked about market share and that was relevant information. And historically this has been the bank's strength. But we've seen some competitors, even Newbank talking about SME. Of course, the concept of SME varies in terms of the size of the company. But what would we expect for 2026 in their portfolio?
Marcelo de Araújo Noronha: We are very pleased with the results there and with the other related companies. So you'll see that we will be taking off in our ROE and absolute profit. Thank you. Next question from Matheus Guimarães with XP. Good morning. Bom dia, André. Bom dia, Cassiano e Noronha. Parabéns pelos resultados. Congrats on the results. E obrigado pela oportunidade de fazer a pergunta. Eu queria explorar pouquinho o tema de M&A. Eu acho que o Renato até trouxe o da SME topic. I think André talked about market share and that was relevant information. And historically this has been the bank's strength. But we've seen some competitors, even Newbank talking about SME. Of course, the concept of SME varies in terms of the size of the company. But what would we expect for 2026 in their portfolio?
Speaker #1: Thank you. Next question from Matheus Guimarães.
Speaker #1: XP. Good
Speaker #3: morning. results. Thank you for taking my question. I would like to revisit the SME topic I think Andre has about market share and I was relevant information and historically this has been the bank's strength.
Speaker #3: I mean, SMEs, but we've seen some competitors, even new banks, talking about SMEs. Of course, the concept of SME varies in terms of the size of the company.
Speaker #3: But what should we expect for 2026 in that portfolio? This is very relevant, because this is a very important portfolio for you in terms of growth and even in terms of Matheus. Thank you for your question.
Marcelo de Araujo Noronha: Because given that this is a very relevant portfolio for you in terms of growth and even in terms of growth going forward. Matheus, thank you for your question. We are very pleased with our position. In restating our position, I must say that I've been working directly with Rocha. Rocha is the VP in charge of that area. But I've been working with all of my colleagues, Alexandre Panico, Mário Pescarolo, Marcelo, the entire corporate team or company team, and also wholesale bank with Bruno, etc., and the middle market team. But first of all, we always look at places, the central bank, in terms of assets, companies up to BRL 300 million a year. Because this allows us to draw a comparison. Competition in this area is very fierce. We always knew that. But our distribution strength é muito grande. We delivered a lot in digital channels.
Marcelo de Araújo Noronha: Because given that this is a very relevant portfolio for you in terms of growth and even in terms of growth going forward. Matheus, thank you for your question. We are very pleased with our position. In restating our position, I must say that I've been working directly with Rocha. Rocha is the VP in charge of that area. But I've been working with all of my colleagues, Alexandre Panico, Mário Pescarolo, Marcelo, the entire corporate team or company team, and also wholesale bank with Bruno, etc., and the middle market team. But first of all, we always look at places, the central bank, in terms of assets, companies up to BRL 300 million a year. Because this allows us to draw a comparison. Competition in this area is very fierce. We always knew that. But our distribution strength é muito grande. We delivered a lot in digital channels.
Speaker #3: We are very position, I must say that I've been working directly with Rocha. Rocha is the VP in charge of that area. But I've been working with all of my colleagues Alexandre Panico, Mario Pescarolo, Marcelo, the pleased with our entire corporate team or company team, and also wholesale bank with Bruno, etc., and the middle market team.
Speaker #3: But first of all, we always look at what places the central bank in terms of assets, companies up to $300 million a year. Because this allows us to draw a comparison.
Speaker #3: Competition in this area is very serious. We always knew that. But our distribution strength is very important. We delivered a lot in digital channels, and the entire government progress.
Speaker #3: Through digital channels, the journey is very efficient. We continue to increase. There is a place to put money that is precisely in SME—I mean micro, small, and mid-sized companies.
Marcelo de Araujo Noronha: The entire government progress through digital channels. A jornada é muito eficiente. We continue to invest. If there is a place to put money in SME, it is precisely SME, I mean micro, small, and mid-sized companies. The levers continue to be government lines. But also we provide funding to companies, vehicles, and other investments that have even founder guarantees, prepayments to suppliers. All of that is part of our journey. When you look at the digital needs with a new internet app, I mean a new app when we are migrating over 500,000 clients, the retention rate has been enormous and great growth opportunity. The commercial team in the back office is supported by GenAI and you too. We just deployed Salesforce back in 2024. So the company segment, and now we are expanding that to the entire business segment.
Marcelo de Araújo Noronha: The entire government progress through digital channels. A jornada é muito eficiente. We continue to invest. If there is a place to put money in SME, it is precisely SME, I mean micro, small, and mid-sized companies. The levers continue to be government lines. But also we provide funding to companies, vehicles, and other investments that have even founder guarantees, prepayments to suppliers. All of that is part of our journey. When you look at the digital needs with a new internet app, I mean a new app when we are migrating over 500,000 clients, the retention rate has been enormous and great growth opportunity. The commercial team in the back office is supported by GenAI and you too. We just deployed Salesforce back in 2024. So the company segment, and now we are expanding that to the entire business segment.
Speaker #3: Levers continue to be government lines, but also we provide funding to company vehicles and other investments that have even founder guarantees. Prepayment to suppliers—all of that is part of our journey.
Speaker #3: When you look at the digital need with a new internet app—I mean a new app—when we're at 500,000 clients, the retention rate has been enormous.
Speaker #3: And great growth opportunity. And the commercial team in the back office is supported by GenAI and U2. We just deployed Salesforce back in 2024.
Speaker #3: So the company is thinking, you know, we are expanding that to the entire business segment. And the previous platform we had, so we can manage this whole set of things much better, with more than 5,000 managers in 21 points of sale.
Marcelo de Araujo Noronha: And the previous platform we had, so we can manage this whole set of things much better with more than 5,000 managers in 21 points of sale. So I am very, very pleased with the results. So look at the level of market share we have and see all that we were able to deliver in terms of our loan portfolio. And that was not by chance, but rather because we implemented new tools, new segmentation, new tools to our clients, new experiences, and certainly with business units, models, and products that are much more suitable. Não só a gente reduziu o risco, not only we reduced the risk, but we increased penetration. And this is what we have to do. AI is here to help us. There are things that involve a lot of machine learning and other things involve GenAI.
Marcelo de Araújo Noronha: And the previous platform we had, so we can manage this whole set of things much better with more than 5,000 managers in 21 points of sale. So I am very, very pleased with the results. So look at the level of market share we have and see all that we were able to deliver in terms of our loan portfolio. And that was not by chance, but rather because we implemented new tools, new segmentation, new tools to our clients, new experiences, and certainly with business units, models, and products that are much more suitable. Não só a gente reduziu o risco, not only we reduced the risk, but we increased penetration. And this is what we have to do. AI is here to help us. There are things that involve a lot of machine learning and other things involve GenAI.
Speaker #3: I am very, very pleased with the results. So, look at the level of market share we have and see all that we were able to deliver in terms of our loan portfolio.
Speaker #3: And that was not by chance, but rather because we implemented new tools, new segmentation, new tools to our clients, new experiences, and certainly with business units, models, and products that are much more suitable.
Speaker #3: With SMEs, Matheus not only reduced the risk, but we increased penetration. And this is what we have to do. AI is here to help us.
Speaker #3: There are things that involve a lot of machine learning, and other things involve GenAI. So there are things that we do to manage our portfolio.
Speaker #3: Some predicted default models. And engagement to grow this means the client lifecycle or client totally connected to our analytics via CRM, which is also the—therefore, we are thinking of our position.
Marcelo de Araujo Noronha: So there are things that we do to manage our portfolio. Some predictive default models. And engagement to grow, this means the client lifecycle, a client totally connected to our analytics via CRM, which has also been revisited. Therefore, we are thinking of our position, I mean going from 16.6 to 17 or 16.4. That's not what changes the game. We have to continue to grow. And at the same time, reaching our fair share of everything that is important to us. And I'm very much aware of our potential and the growth that we can post for either corporate and individual. Thank you, Matheus. Next question from Carlos Gomez-Lopez. Now I'll turn into English. Thank you very much, and congratulations on your second year under the new management. I had two very brief questions.
Marcelo de Araújo Noronha: So there are things that we do to manage our portfolio. Some predictive default models. And engagement to grow, this means the client lifecycle, a client totally connected to our analytics via CRM, which has also been revisited. Therefore, we are thinking of our position, I mean going from 16.6 to 17 or 16.4. That's not what changes the game. We have to continue to grow. And at the same time, reaching our fair share of everything that is important to us. And I'm very much aware of our potential and the growth that we can post for either corporate and individual. Thank you, Matheus. Next question from Carlos Gomez-Lopez. Now I'll turn into English. Thank you very much, and congratulations on your second year under the new management. I had two very brief questions.
Speaker #3: I mean, going from 16.6 to 17 or 16.4 is that's not revisited. what changes the game. We have to continue to grow. And at the same time, reaching our fair share of everything that is important to us.
Speaker #3: Much aware of our potential and the growth that we can post for either corporate and individual. Thank you, Matheus. Next question from Carlos Gomes Lopes.
Speaker #3: Now I'll turn into
Speaker #3: English. Thank you very
Speaker #4: Much. And congratulations on your second year under the new management. I had two very brief questions. The first
Speaker #4: absence of cockroaches, as you call them, bad corporate cases. We haven't had any this quarter. In your guidance for the next year, do you expect corporate defaults to stay where And I'm very they are, or do you incorporate some deterioration?
Marcelo de Araujo Noronha: The first one is about the absence of cockroaches, as you call them, bad corporate cases. We haven't had any this quarter. In your guidance for next year, do you expect corporate defaults to stay where they are, or do you incorporate some deterioration? The second is, could you comment on what tax rate you expect for next year? Thank you. Hi, Carlos. The answer is no for the first question. Mas André, você começa respondendo assim. You can just start answering on the tax rate, and then I can add if necessary. Okay. The tax rate that we're working is between 16 and 21%, and 18.5 or 19 to calculate net income. And why is it that the tax rate was 20% in 2025 and it dropped a little bit? First of all, because we anticipate higher payment of interest on equity.
Marcelo de Araújo Noronha: The first one is about the absence of cockroaches, as you call them, bad corporate cases. We haven't had any this quarter. In your guidance for next year, do you expect corporate defaults to stay where they are, or do you incorporate some deterioration? The second is, could you comment on what tax rate you expect for next year? Thank you. Hi, Carlos. The answer is no for the first question. Mas André, você começa respondendo assim. You can just start answering on the tax rate, and then I can add if necessary. Okay. The tax rate that we're working is between 16 and 21%, and 18.5 or 19 to calculate net income. And why is it that the tax rate was 20% in 2025 and it dropped a little bit? First of all, because we anticipate higher payment of interest on equity.
Speaker #4: The second is, could you comment on what tax rate you expect for next year? Thank you.
Speaker #4: you. Hi, hi
Speaker #5: Carlos. The answer is no. For the first question, Matheus Andrea, você começa respondendo.
Speaker #4: But Andrea, you can just start—answer on the tax rate, and then I can add if necessary. Okay? The tax rate that we're working with is between 16% and 21%.
Speaker #4: And 18 and a half or 19 to calculate net income. And why is it that the tax rate was 20 in 2025 and it dropped a little bit?
Speaker #4: First of all, because we anticipate higher payment of interest on equity—like I said, $14.5 billion in 2025. So I'm saying between $15 and $16 billion in 2026.
Marcelo de Araujo Noronha: Like I said, BRL 14.5 billion in 2025. So I'm saying between BRL 15 and 16 billion in 2026. Certainly, this is a number that certainly depends on interest on equity to be announced by the government. It's not a fixed number. This is just the best estimate. But we anticipate growth in IOE so that we can take more advantage of the embedded benefit. And secondly, is what Marcelo said, part of our investments bring about competitive gains. And like consortium, we've been highlighting that almost every quarter. We could also talk about auto-financing that had posted a good performance in the past three months. We have several examples, even with BBI. All of the companies are posting very strong performance. And this helps reduce the rate, the tax rate. That doesn't mean that this is operating weakness, but on the contrary, this is very well distributed.
Marcelo de Araújo Noronha: Like I said, BRL 14.5 billion in 2025. So I'm saying between BRL 15 and 16 billion in 2026. Certainly, this is a number that certainly depends on interest on equity to be announced by the government. It's not a fixed number. This is just the best estimate. But we anticipate growth in IOE so that we can take more advantage of the embedded benefit. And secondly, is what Marcelo said, part of our investments bring about competitive gains. And like consortium, we've been highlighting that almost every quarter. We could also talk about auto-financing that had posted a good performance in the past three months. We have several examples, even with BBI. All of the companies are posting very strong performance. And this helps reduce the rate, the tax rate. That doesn't mean that this is operating weakness, but on the contrary, this is very well distributed.
Speaker #4: Certainly, this is a number that certainly depends on interest on equity. To be announced by the government. It's not a fixed number. This is just a best estimate.
Speaker #4: But we anticipate growth in IOE so that we can take more advantage of the embedded benefit. And secondly, it's what Marcelo said. Part of investments bring about competitive gains, like consortia—we've been highlighting that almost every quarter. We could also talk about out-of-financing that had posted a good performance in the past three months.
Speaker #4: We have several examples, even with BBI. All of the companies are posting very strong performance, and this helps reduce the tax rate.
Speaker #4: That doesn't mean that this is an operating weakness, but on the contrary, this is very well distributed. And this year in particular, the tax rate will drop a bit.
Speaker #4: I mean, depending on the company, the rate is different. The insurance business has a lower tax rate. Yeah, go ahead. I think this is the answer.
Marcelo de Araujo Noronha: This year in particular, the tax rate will drop a bit. I mean, depending on the company, the rate is different. The insurance business has a lower tax rate. Yeah, go ahead. I think this is the answer. We have no concerns when it comes to the wholesale bank. So thank you, Carlos. Next question comes from Tito Labarta from Goldman Sachs. Tito, good morning. Hi, good morning. Thanks, André. Good morning, Marcelo, Cassiano. How are you? Thank you. Good, good. How are you? Thank you for taking my question. You may have just answered it, but just wanted to make sure, right, because if we do ROE on a pretax basis, it's actually been a little bit more stable throughout the year, right? And I think on the guidance, our tax rate will be a little bit lower.
Marcelo de Araújo Noronha: This year in particular, the tax rate will drop a bit. I mean, depending on the company, the rate is different. The insurance business has a lower tax rate. Yeah, go ahead. I think this is the answer. We have no concerns when it comes to the wholesale bank. So thank you, Carlos. Next question comes from Tito Labarta from Goldman Sachs. Tito, good morning. Hi, good morning. Thanks, André. Good morning, Marcelo, Cassiano. How are you? Thank you. Good, good. How are you? Thank you for taking my question. You may have just answered it, but just wanted to make sure, right, because if we do ROE on a pretax basis, it's actually been a little bit more stable throughout the year, right? And I think on the guidance, our tax rate will be a little bit lower.
Speaker #4: And we have no concerns when it comes to the wholesale bank. So, thank you, Carlos.
Speaker #6: Next question comes from Tito Labarta from Goldman Sachs. Tito.
Speaker #6: Morning. Hi, good morning.
Speaker #7: Thanks, Andre. Good morning. Marcelo Castellano.
Speaker #7: Oh, thank you. Good, good. How are you? Thank you for taking my question. You may have just answered it, but I just wanted to make sure, because if we do ROE on a pre-tax basis, it's actually been a little bit more stable throughout the year.
Speaker #7: And I think, on the guidance, our tax rate will be a little bit lower, just because of the tax benefits you have. I think as your profitability generation improves, I would expect that tax rate to go up.
Marcelo de Araujo Noronha: Just because of the tax benefits you have, I think as your profitability generation improves, I would expect that tax rate to go up. And I think you mentioned the insurance tax rate is a bit lower. But just to understand in terms of the underlying sort of earnings potential of the business, do you think that keeps improving, or do you think this tax rate sort of remains low because of the tax benefits that you do have? Just to kind of think about excluding the tax rate, the ROE of the business, and how you see that continuing to evolve. Thank you. Primeiro comentário, Tito, em relação ao resultado operacional. Regarding the operational results of the group, the operational results of the group before taxes grew 27% in 2025. Very strong. Secondly, looking at 2026, the answer is no. Yes, we will post strong operational result growth.
Marcelo de Araújo Noronha: Just because of the tax benefits you have, I think as your profitability generation improves, I would expect that tax rate to go up. And I think you mentioned the insurance tax rate is a bit lower. But just to understand in terms of the underlying sort of earnings potential of the business, do you think that keeps improving, or do you think this tax rate sort of remains low because of the tax benefits that you do have? Just to kind of think about excluding the tax rate, the ROE of the business, and how you see that continuing to evolve. Thank you. Primeiro comentário, Tito, em relação ao resultado operacional. Regarding the operational results of the group, the operational results of the group before taxes grew 27% in 2025. Very strong. Secondly, looking at 2026, the answer is no. Yes, we will post strong operational result growth.
Speaker #7: And I think you mentioned the insurance tax rate is a bit lower. But just to understand, in terms of the underlying sort of earnings potential of the business, do you think that keeps improving, or do you think this tax rate sort of remains low because of the tax benefits that you do have?
Speaker #7: Just to kind of think about, excluding the tax rate—the ROE of the business—and how you see that, you.
Speaker #6: Tito, em relação ao primeiro comentário, resultado operacional.
Speaker #4: Regarding the operational result of the
Speaker #4: The operational result of the group before taxes grew 27%, continuing to evolve.
Speaker #4: 2025: very strong. Secondly, looking at 2026, the answer is we will post strong operational results. No, about a weaker—yes, we see operational growth and a lower tax rate.
Marcelo de Araujo Noronha: It's not about a weaker operational and a lower tax rate. It is all well distributed with insurance, very strong consortium, very strong Bradesco Financiamentos, very strong. It's a very big group with several companies. When we consolidate it all, we see a small reduction of the income tax rate. Let me stress this, Tito. We spoke about this in the other question. The insurance group has a smaller tax rate. If you go to other affiliates as well, for example, in payments, it's the same thing. We consolidate it all. Sometimes in one channel, for example, the complete connection of Bradesco Financiamentos with this one single channel for checking account holders or not checking account holders. So I have it's a different situation sometimes.
Marcelo de Araújo Noronha: It's not about a weaker operational and a lower tax rate. It is all well distributed with insurance, very strong consortium, very strong Bradesco Financiamentos, very strong. It's a very big group with several companies. When we consolidate it all, we see a small reduction of the income tax rate. Let me stress this, Tito. We spoke about this in the other question. The insurance group has a smaller tax rate. If you go to other affiliates as well, for example, in payments, it's the same thing. We consolidate it all. Sometimes in one channel, for example, the complete connection of Bradesco Financiamentos with this one single channel for checking account holders or not checking account holders. So I have it's a different situation sometimes.
Speaker #4: It is all well distributed with insurance, very strong consortium, very strong risk of financiamentos, very strong. It's a very big group with several companies.
Speaker #4: consolidate it When we all, we see a small reduction of the income tax rate. Let me stress this, Tito. We spoke about this in the other question.
Speaker #4: It has a smaller tax rate. If you go to other affiliates as well, for example, in payments, it's the same thing. The insurance group consolidates it all.
Speaker #4: And channel, for example, the complete sometimes in one connection of Bradesco with this one single channel for checking account holders or Financiamentos holders. So I have—it's a different situation sometimes.
Speaker #4: It's not because of the tax rate, but there are other companies that have different tax rates, which is the case of CLO. You see, there is a mix of tax rates.
Marcelo de Araujo Noronha: It's not the case of the tax rate, but there are other companies that have different tax rates, which is the case of CLO. You see, there is a mix of tax rates. You should not forget that sometimes in the end of a period, there are some fiscal aspects of certain law here and there. For example, the insurance group benefited from that in the past quarter. They benefited from one law that affected the tax rate. So this is kind of what explains it. Nothing different, as André mentioned. Thank you very much, Tito. Next question from Eduardo Nishio with Genial. Nishio, it's always a pleasure to see you. Good morning. Oh, your microphone is muted, Nishio. Ainda está, Nishio. Still muted? No. No, we can't hear you. Still no sound. Vamos passar e voltar. Let's move on and then come back.
Marcelo de Araújo Noronha: It's not the case of the tax rate, but there are other companies that have different tax rates, which is the case of CLO. You see, there is a mix of tax rates. You should not forget that sometimes in the end of a period, there are some fiscal aspects of certain law here and there. For example, the insurance group benefited from that in the past quarter. They benefited from one law that affected the tax rate. So this is kind of what explains it. Nothing different, as André mentioned. Thank you very much, Tito. Next question from Eduardo Nishio with Genial. Nishio, it's always a pleasure to see you. Good morning. Oh, your microphone is muted, Nishio. Ainda está, Nishio. Still muted? No. No, we can't hear you. Still no sound. Vamos passar e voltar. Let's move on and then come back.
Speaker #4: And you should not forget that sometimes, at the end of a period, there are some fiscal aspects. For example, the insurance group benefited from certain laws here and there.
Speaker #4: from that in the past quarter. They benefited from one law that affected the tax rate. So this is kind of what explains it.
Speaker #4: Nothing different, as Andrea mentioned. Thank you very much, Tito. Next question from Eduardo Nishi with Genial. Nishi, good morning. Are your microphone muted, Nishi?
Speaker #4: Still muted. No, we can't hear you. Still no sound. Let's move on, then.
Speaker #7: Hi, everyone.
Speaker #7: Congratulations on the great results, and thank you for the opportunity to ask questions. I know you have discussed at some length credit growth and some expectations for payroll loans and secured loans, but I was hoping you could maybe elaborate a bit more on each of the different segments and how they fit into the loan portfolio guidance of 8.5% to 10.5%. Kind of where you're expecting better growth, maybe where you're expecting some weaker growth, and where there could be some upside.
Marcelo de Araujo Noronha: Question comes from Andrew Geraghty from Morgan Stanley. Andrew. Hi everyone. Congratulations on the great results, and thank you for the opportunity to ask questions. I know you have discussed at some length credit growth and some expectations for payroll loans, secured loans. But I was hoping you could maybe elaborate a bit more on each of the different segments and how they fit into the loan portfolio guidance of 8.5 to 10.5, kind of where you're expecting better growth, maybe where you're expecting some weaker growth, and where there could be some upside by segment if possible. Okay. Thank you. Na verdade, como Marcelo comentou, well, actually, as Marcelo mentioned, we started 2026 stronger than we started 2025. We had a positive surprise in credit in Q4 2025. So we started the year already with a lot of traction. So we see a continuity of that movement.
Marcelo de Araújo Noronha: Question comes from Andrew Geraghty from Morgan Stanley. Andrew. Hi everyone. Congratulations on the great results, and thank you for the opportunity to ask questions. I know you have discussed at some length credit growth and some expectations for payroll loans, secured loans. But I was hoping you could maybe elaborate a bit more on each of the different segments and how they fit into the loan portfolio guidance of 8.5 to 10.5, kind of where you're expecting better growth, maybe where you're expecting some weaker growth, and where there could be some upside by segment if possible. Okay. Thank you. Na verdade, como Marcelo comentou, well, actually, as Marcelo mentioned, we started 2026 stronger than we started 2025. We had a positive surprise in credit in Q4 2025. So we started the year already with a lot of traction. So we see a continuity of that movement.
Speaker #7: if By segment, if
Speaker #7: if possible. Well,
Speaker #4: 2026 is stronger than we started 2025. We had a positive surprise in credit, as mentioned—we start in Q4 2025. So we start the year already with a lot of traction.
Speaker #4: Movement. So what do we see? A continuity of that. We see, in terms of trends, very strong SMEs, followed by individuals, and actually, as Marcelo—then wholesale.
Marcelo de Araujo Noronha: So what do we see in terms of trends? Very strong SMEs, followed by individuals, and then wholesale, wholesale competing with the capital market funding, as Marcelo mentioned, sometimes very high tickets making a difference in Q4, positive difference for us. That doesn't happen always, though. I think that the expectation, the prospects for the segments would be this: SMEs, individuals, wholesale. We have traction across all fronts, and we're ready to capture all opportunities. Right, but Andrew, there are some different situations when you speak about the Prime segment. In principle, we have relationship products such as investments, the credit card with a value proposition that is unique for these clients, totally different experiences for these clients. The same goes for Prime, which is different than the relationship for INSS retirees. For that audience, we offer deductible loans. And when we get to Prime, in principle, mortgages.
Marcelo de Araújo Noronha: So what do we see in terms of trends? Very strong SMEs, followed by individuals, and then wholesale, wholesale competing with the capital market funding, as Marcelo mentioned, sometimes very high tickets making a difference in Q4, positive difference for us. That doesn't happen always, though. I think that the expectation, the prospects for the segments would be this: SMEs, individuals, wholesale. We have traction across all fronts, and we're ready to capture all opportunities. Right, but Andrew, there are some different situations when you speak about the Prime segment. In principle, we have relationship products such as investments, the credit card with a value proposition that is unique for these clients, totally different experiences for these clients. The same goes for Prime, which is different than the relationship for INSS retirees. For that audience, we offer deductible loans. And when we get to Prime, in principle, mortgages.
Speaker #4: Wholesale competing with the capital markets funding, as Marcelo mentioned—sometimes very high tickets make a difference in Q4, a positive difference for us. That doesn't happen always, though.
Speaker #4: But I think that the expectation—the prospects—for the segments would be this: SMEs, individuals, wholesale. We have traction across all fronts, and we're ready to capture all opportunities.
Speaker #4: Right, but Andrew, there are some different situations when we speak about the F1. In principle, we have relationship products, such as investment, the credit card, with a value proposition.
Speaker #4: That is unique for these clients. Totally different experiences, prime, which is different in relationship for INSS retirees. For that audience, we offer deductible loans.
Speaker #4: And when we get to prime and principal, mortgages, so we have these mixes of products that sustain these segments. And this is just to mention a few, mind you.
Marcelo de Araujo Noronha: So we have these mixes of products that sustain these segments. This is just to mention a few, mind you. In terms of companies, legal entities, we have a huge mix of products growing in small and medium-sized enterprises, in different lines, by the way, increasing our penetration there. With the wholesale bank, we are recycling the portfolio, more we call OPD book, origination for distribution, which is the case. When the capital market spread was very crushed, we can compromise risk-adjusted returns. So we don't work looking at that. So it is better to distribute than effectively keeping it in our books. We have a set of fees, which are also important for us in different lines of business. There's also cash management. It is a super important platform for small and medium-sized enterprises, as well as for the wholesale.
Marcelo de Araújo Noronha: So we have these mixes of products that sustain these segments. This is just to mention a few, mind you. In terms of companies, legal entities, we have a huge mix of products growing in small and medium-sized enterprises, in different lines, by the way, increasing our penetration there. With the wholesale bank, we are recycling the portfolio, more we call OPD book, origination for distribution, which is the case. When the capital market spread was very crushed, we can compromise risk-adjusted returns. So we don't work looking at that. So it is better to distribute than effectively keeping it in our books. We have a set of fees, which are also important for us in different lines of business. There's also cash management. It is a super important platform for small and medium-sized enterprises, as well as for the wholesale.
Speaker #4: And in terms of companies, legal entities, we have a huge mix of products—growing in small and medium-sized enterprises, in different lines, by the way, increasing our penetration there.
Speaker #4: And with the wholesale bank, we are recycling the portfolio and what we call the OPD book—origination for distribution. This was the case when the capital market spread was very crushed.
Speaker #4: We can compromise risk-adjusted return, so we don't work looking at that. So it is better to distribute than effectively keeping it in our books.
Speaker #4: And we have a set of fees which are also important for us, in different lines of business. And there's also cash management. It is a super important platform for small and medium-sized enterprises, as well as for the platform, which over the year will bring us important improvements. That is another key point to improve profitability.
Marcelo de Araujo Noronha: We'll have a new technology platform, which over the year will bring us important improvements. That is another key point to improve profitability. Let's see if Nishio is back. We still cannot hear you. Not yet. Tirando o fone, será que melhora? Maybe if you remove your headset, maybe it will be better. We cannot hear. A gente está recebendo uma pergunta aqui sobre massificado. Receiving a question about mass income. É isso. Falar pouquinho sobre a perspectiva do massificado, então. Okay. Tell me a little bit about the mass income portfolio. Vai, Nishio. Vamos falar pouquinho sobre massificado? Se alguma coisa a gente complementa depois. If you need any more information, I can add. Okay. Mass income is probably one of the major transformations of our banking cycle since the beginning of our track record, our history. I think we are bringing some good news.
Marcelo de Araújo Noronha: We'll have a new technology platform, which over the year will bring us important improvements. That is another key point to improve profitability. Let's see if Nishio is back. We still cannot hear you. Not yet. Tirando o fone, será que melhora? Maybe if you remove your headset, maybe it will be better. We cannot hear. A gente está recebendo uma pergunta aqui sobre massificado. Receiving a question about mass income. É isso. Falar pouquinho sobre a perspectiva do massificado, então. Okay. Tell me a little bit about the mass income portfolio. Vai, Nishio. Vamos falar pouquinho sobre massificado? Se alguma coisa a gente complementa depois. If you need any more information, I can add. Okay. Mass income is probably one of the major transformations of our banking cycle since the beginning of our track record, our history. I think we are bringing some good news.
Speaker #4: And let's see if Nishi was—
Speaker #1: . Which Issue essentially
Speaker #1: . Which Issue
Speaker #2: We cannot hear . You
Speaker #2: . .
Speaker #1: No .
Speaker #2: yet Not .
Speaker #1: Via .
Speaker #2: Maybe if you remove your headset, it will be better. We cannot hear.
Speaker #1: Aqui sobre. We are.
Speaker #2: Receiving a question: math income.
Speaker #1: Nice , nice .
Speaker #2: Okay, tell me a little bit about the income proposal.
Speaker #1: When you show a wholesale...
Speaker #1: When you show a wholesale...
Speaker #1: so
Speaker #2: If you need any more information, we have a new technology.
Speaker #1: Add .
Speaker #2: Okay. Income is, Math, probably one of the major transformations of our banking cycle.
Speaker #1: Since .
Speaker #2: Beginning with the track record of our history, I think we are bringing some good news. I think Marcelo mentioned it quite well.
Speaker #2: Well, 90 million clients are already fully digital in the retail, mass, with a totally different value. But again, it's a much easier proposition.
Marcelo de Araujo Noronha: I think Marcelo mentioned it quite well. 19 million clients are already fully digital in the mass retail with a totally different value proposition. But again, it's much easier to operate. Not only they use via GenAI, but there is a specialist that can help with a customized sale, which changes that paradigm of having an individual physically present in a branch. The second relevant aspect is the engagement, our capacity to serve that client with GenAI tools and integration tools that are very important to boost sales. And I think this has been a major evolution. We anticipate 45 million. So throughout the year, we will be fully digital. This will be our mass retail bank. This is a very important aspect. And today, 6 February, we already have 25 million digital clients because every week the numbers are growing with zero resistance, zero friction with clients.
Marcelo de Araújo Noronha: I think Marcelo mentioned it quite well. 19 million clients are already fully digital in the mass retail with a totally different value proposition. But again, it's much easier to operate. Not only they use via GenAI, but there is a specialist that can help with a customized sale, which changes that paradigm of having an individual physically present in a branch. The second relevant aspect is the engagement, our capacity to serve that client with GenAI tools and integration tools that are very important to boost sales. And I think this has been a major evolution. We anticipate 45 million. So throughout the year, we will be fully digital. This will be our mass retail bank. This is a very important aspect. And today, 6 February, we already have 25 million digital clients because every week the numbers are growing with zero resistance, zero friction with clients.
Speaker #2: Operate to not only are they used via JNI, but there is a specialist that can help. Customized a mail. We have that paradigm of having an individual physically present at the branch.
Speaker #2: The second relevant aspect is engagement. Ours is the capacity to serve that client with Gen AI integration, at a very important time, with tools important to sales.
Speaker #2: Boost. And I think this has majorly been an evolution. We anticipate 45 million. So, throughout the year, we will be fully digital.
Speaker #2: be our mass retail bank . This is a very This will important aspect . And today , February 6th , we already have 25 million digital clients because week every know , you , the numbers are growing with zero resistance , zero with clients .
Speaker #2: And this friction has been a very pleasing experience, a very good experience. And behind all of that, all of that is supported by a very good technological platform for individuals.
Marcelo de Araujo Noronha: This has been a very pleasing experience, very good experience. Behind all that, all of that is supported by a very good technological platform for individuals. This will encompass all the individuals. I think we've been telling you about that in the past quarters. This will certainly grow or help us decrease cost to serve, which has been significantly reduced. This has an important correlation to our footprint adjustment. Well, Nishio, thank you very much for joining us. I know you had a slight problem with the sound. But thank you. We are always available to talk to you and also to welcome you here at the bank. The same thing goes for our IR team. I think Cassiano gave you a good backdrop. Well, you saw more than 40 million at the end of 2026, starting with 19 million.
Marcelo de Araújo Noronha: This has been a very pleasing experience, very good experience. Behind all that, all of that is supported by a very good technological platform for individuals. This will encompass all the individuals. I think we've been telling you about that in the past quarters. This will certainly grow or help us decrease cost to serve, which has been significantly reduced. This has an important correlation to our footprint adjustment. Well, Nishio, thank you very much for joining us. I know you had a slight problem with the sound. But thank you. We are always available to talk to you and also to welcome you here at the bank. The same thing goes for our IR team. I think Cassiano gave you a good backdrop. Well, you saw more than 40 million at the end of 2026, starting with 19 million.
Speaker #2: This will encompass all the individuals. And I think we've been telling you about that in the past quarters.
Speaker #1: this . And
Speaker #2: Will certainly grow or help us decrease cost to serve, which has been significant, and this reduction has an important correlation to our footprint and every adjustment.
Speaker #2: Thank you. Well, thank you for joining us. I know you had a great problem with sound, but as always, thank you. Always available to talk to you.
Speaker #2: And also to welcome you here at the bank. And the same thing goes to the IR team. I think our Cassiano, for good, gave you a backdrop.
Speaker #2: saw more than the end of 26 . You know , starting Well , engagement is improving increasing and and certainly we to are able to reduce direct costs But to serve by 40 folds .
Marcelo de Araujo Noronha: But engagement is increasing and improving. Certainly, we are able to reduce direct cost to serve by 40-fold. We are very committed to what we're doing. There are a few people that look at the physical space, the physical world. We are testing different models all the time with our Bradesco Expresso so that we can address these topics. This is a challenge. In fact, I said that I went to Asia last September, and I heard comments from some banks. They have the same challenges we have when it comes to footprint adjustments, cost to serve, and consumers. Therefore, Nishio, we are sticking to our plan, and we will bring this year, and in particular in the second half, more information about this digital retail. Thank you. Thank you, Nishio. With that, we conclude the Q&A session.
Marcelo de Araújo Noronha: But engagement is increasing and improving. Certainly, we are able to reduce direct cost to serve by 40-fold. We are very committed to what we're doing. There are a few people that look at the physical space, the physical world. We are testing different models all the time with our Bradesco Expresso so that we can address these topics. This is a challenge. In fact, I said that I went to Asia last September, and I heard comments from some banks. They have the same challenges we have when it comes to footprint adjustments, cost to serve, and consumers. Therefore, Nishio, we are sticking to our plan, and we will bring this year, and in particular in the second half, more information about this digital retail. Thank you. Thank you, Nishio. With that, we conclude the Q&A session.
Speaker #2: We are very committed to what we are doing, and are still people that — there is space, the physical — we are physically testing the world and models all the time with our brothers.
Speaker #2: With espresso , can address so that topics . And challenge . said this is a In fact , that I went to Asia last September we I from some heard have comments the same challenges .
Speaker #2: We I banks . when it comes They to footprint different adjustments serve and have Cost we are our plan sticking to and will we to bring and in particular in the this year second half , information about these this digital retail .
Speaker #2: And thank you . Thank you . Nishio . And with that we conclude the session . Questions that couldn't be more right now .
Speaker #2: answered by answered our our be our IR .
Marcelo de Araujo Noronha: Questions that couldn't be answered right now will be answered by our IR team. Before I turn the floor to Marcelo to his final comments, I must say that this presentation and the full material of this release is available in our IR website. Well, thank you, André. Thank you, Cassiano. I extend this thanks to all of our team who helped us in this video conference. Thank you, our audience, for your interest and for the time that you spent with us. It's what I said. I mean, this is the summary of our transformation: 8 quarters in a row delivering good numbers with the focus that I said, without losing sight of the plan that we set up for ourselves, step by step, but delivering improved ROE and improved absolute net income with a very engaged team, with clients, and with the Bradesco team.
Marcelo de Araújo Noronha: Questions that couldn't be answered right now will be answered by our IR team. Before I turn the floor to Marcelo to his final comments, I must say that this presentation and the full material of this release is available in our IR website. Well, thank you, André. Thank you, Cassiano. I extend this thanks to all of our team who helped us in this video conference. Thank you, our audience, for your interest and for the time that you spent with us. It's what I said. I mean, this is the summary of our transformation: 8 quarters in a row delivering good numbers with the focus that I said, without losing sight of the plan that we set up for ourselves, step by step, but delivering improved ROE and improved absolute net income with a very engaged team, with clients, and with the Bradesco team.
Speaker #1: Team .
Speaker #2: And before I turn the floor to Marcelo for his comments, I must say that finally, the full material of this is available in the release on our website. You— you.
Speaker #2: Cassiano and our I presentation and to all of our well , You know , in thank IR Our And thank you . for your audience , interest and for this time the spent us is what I said .
Speaker #2: I mean, this is the summary that I have for you regarding our transformation, Andrea. Eight quarters in, thank you. We are delivering good numbers, with the focus that I mentioned, without losing sight of the plan that we set up step by step.
Speaker #2: But delivering improved and ROE improved absolute, with a very engaged team with clients and with the British. Thank you, team. And our entire team is here to give you not only details about, again, the earnings presentation, but also about our transformation program.
Marcelo de Araujo Noronha: Thank you once again. Our team is entirely available to give you more details, not only about this earnings presentation, but also about our transformation program. Thank you all very much, and thank you for joining us.
Marcelo de Araújo Noronha: Thank you once again. Our team is entirely available to give you more details, not only about this earnings presentation, but also about our transformation program. Thank you all very much, and thank you for joining us.