Banco Bradesco (BBD) 6 Nov 212021 Q3 Earnings call transcript

Good afternoon, ladies and gentlemen, and thank you for waiting. We would like to welcome everyone to Bradesco's Third Quarter 2021 Earnings Conference Call. This call is being broadcasted simultaneously thrill through Internet in the Investor Relations website, bradescori.com.br/en/. In that address, you can also find the presentation available for download. [Operator Instructions].

company. mention assumptions statements and of currently to me the based on let available and beliefs Banco the proceeding, that are forward-looking on information Before Bradesco's management they They relate depend involve circumstances or future. in may not that and risks, assumptions on to events and uncertainties future therefore, occur the may because those Bradesco factors affect the from future should general conditions, in economic differ also Investors expressed cause industry conditions to of statements. could Banco and forward-looking understand that and could results other operating such results materially

Market Now to I will Mr. Carlos turn Director. the conference Firetti, over Business Please Controller Relations proceed. and

Hello, quarter call XXXX everyone. for conference third our of Welcome results. our the to discussions

in de Executive Officer; have Oswaldo to our Rodrigues Officer, Leandro. CEO, call Chief Cano; our Lazari; Miranda; Fernandes; I Director Next Bitz President, now and We Curt participating the Octavio IRO, and our Zimmermann. André with turn Executive today CFO, Leandro the Executive Chief our us [indiscernible], de Executive Vice floor

very the you discuss third of Thank participating present to have the good in everyone. teleconference much, which third you interest our this significantly 'XX strong Vaccinations regarding in we hope Thank results. of the for afternoon, your the news engagement you We Q are COVID Q in well. pandemic. Firetti. Good highlights advanced had I with population. Brazilian

indicating are on we that the the trend, result, downward a path. a As showing disease right

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evolving model. allow. we established the a area role based We areas, have our the return is In our hybrid in as scheme Brazilian administrative a returned branches they play have to for work as an The essential in-person on XXX% post-pandemic at conditions work we different way health gradual population.

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progressed scenario and inflation Bank The both However, control and not not in high has and the entirely rates reforms has raised Central determination shown the favorable. to remains trying interest The still inflation. is of Brazil agenda for persistent.

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an provision net BRLX.X under Our Among to income performance control. 'XX. commission XX.X% highlight X.X% insurance fully the good The positive and we recoverage, the and expenses indicators, reaching previous remaining of billion, quarter in over increase recovery fee in the the of results. income the compared

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in of positive the and lines this later will the in to have the indicators consistent ratio the see of the our some good as both, income. a claims financial review improvement allowed conduct evolution guidance, the of written With you premiums of us and on presentation. These

these present to items main like results. the of We'd X. Page to Moving

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decline, The move another to trend the should portfolio renegotiation for Let's continue of upcoming Slide on periods. that a saw X. quarter

it delinquency. Although effective of represents observer levels. the provisions, the this anticipate of small the delinquency can in below provisions current highlight Xx level high We almost a which The portfolio delinquency. shown level this historical portfolio has is of increase,

important earlier. Slide from as I Moving renegotiated the on expectations. bps X. growth our Individuals portfolios according that, the sold among to XX loss up below our occurred, that XX-day the active days both index The XX delinquency creation view, to rose due the billion. the anticipation provisions quarter There was If did gone emphasize XX level period. expected mainly still explained bps. the our in is an below not we the over the we ratios and collection our the NPL onset I line of quarter, it's well NPL In have But portfolio efforts compensate coming also with mainly The creation have this as mentioned sales models, to for of BRLX prices the in of pre-pandemic ratio slides. teams. to provisions portfolio after previous within the management of in additional SMEs, was practice, hadn't

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let's on to Now Slide move XX.

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is highlight Bradesco Expresso, has Another more XX,XXX which than partners.

which starts quarter Our fully network payroll such checking insurance manner accounts, Bitz our loans, digital products a as loans, in of number this deductible credit around variable digital costs, a cards and is wallets. to in operating addition with structured

billion lines policyholders insurance the now year-to-date. operations COVID-XX We the of COVID-XX lower the events Moving XX% It's and highlight billion the were worth third than pandemic. were previous significant Slide as Q BRLX.X The We of XX. Q the related all our can third excellent operations. impact in quarter, to a that to business expansion and effects growth of number the in insurance BRLX.X the reflecting in revenues all increase the saw that an Costs The see period approximately the noting can and of for recovery events results, almost in the group. to financial number in again investments. the even once related in was economic our the positive, of vaccination income reflecting in ratios also of reduction the on in had cases. very financial financial with

year. for compared on presents the is we it the performance CS that, would we have we again to XXXX, so learned increase previous despite Our robust in look based last LLL net the of still the point X observed not we line have effects in a income are what with guidance and even have basis the reviewing expansion as but X% the Like all Where in with rates. in far, what ahead. COVID-XX quarter, challenging, 'XX. scenario we seen

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our managed life profile our of our each On and the diversity hospitalizations operation. products based moment the have weak shows for care and dynamic capture to XX, of previous for on We in the history opportunity the of offering as wide health with channels did we related quarter, Slide of clients.

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Moving to XX. Slide

a channels, The compared in the exceeding grew greater the clients which our XX% mobile opening million We use same have The as transactions can quarter. of increase accounts. digital in the a to number see, volume offer of convenience. period XX% X.X you this financial of significant accounts previous also increased channel

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XX had is share you call clients in BIA more is of becoming first-level the last only, and helpline, products on BIA the an Fácil able increase Bradesco launched assist We this XX year knowledge represents XX. the services. mark products level which depending of on XX% to application a and robust XXX% we needs of than million total with information for and On Slide first The new questions responsible in know. with to WhatsApp remarkable center. technology currently adds the concerning year. for clients, responsible to and it's BIA services. of Currently, to the BIA Fone million assertive. and more pioneering of reached on compared and support clients number It's interactions XXX gradually support employee on Moving also alone, their interactions. manner, interaction support thus as

the We the will CRM, start and have and to always we soon clients. making squad according of BIA to proactive vacated be offers and expectations needs connected our

Slide Now to we XX. move

center, digital take and the customized intuitive journeys we clients at technology creation experience, department with transformation created the for services partnerships. of platforms consideration digital channels a pillars of and that Bradesco leveraged business Experience, of of of and strategy by our the Following people, into financial integrates

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more Experience, strives, to our more than In a involving X,XXX Bradesco journey we professionals. X,XXX total, relationship have the in to clients. with Just already this squad already you give flavor, our than professionals whole added

Just have Forwards, our [indiscernible] and an funds, developed to private some give also in acquiring environments. our to and addition and start-ups investments like equity of digital example, whole we and created

XX. Slide in drop year. to compared XXX,XXX cursory Ágora on in in by the the the XX% volatility mark-to-market increased in the markets to clients on to small quarter. that in saw increase natural due we in the funding volume Moving net The previous reflects and reached quarter the the

X.X this Next XXX% the impressive reached growth client by million represents target the clients for year, above in and new target year-end. an million This days XX is X the annual million comparison.

in very thus decision-making mission year, correspondent points. we service than a for with an services Bradesco platform in from solution its and clients comes million end people client it's and November. launched surpassed with for have week, And the entering accounts. with Espresso, the to more wallet It network an at their Bitz, entry-level innovative solutions marketplace It and bank also XX,XXX a this the also launch Next full comprehensive last of X.X and banks, X has a has separate reached products Bitz remarkable markets, autonomy is and the the and digital Next and role are provide totally with bank. extensive increasing the they Bradesco, million process. of important downloads. plays become banking in it

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to on embedded sustainability Moving has In in Slide purpose. XX. been Bradesco, our always

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So we to room grow. have

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so million we Having we thank I XX new Thank million X.X our believe you. we continue said definitely client you, ourselves And are our and put available for clients trends. now, that, the adding base. we'll to positive Q&A.

[Operator Instructions].

Our first question Binsfeld, Goldman comes Sachs. Tiago from

First, to I'd on final constructive regarding expectations you your XXXX. remarks like expand these for

So about asset that I And hear was then second curious reference peak should translate my I'll expected into Any of question can you how XXXX? quality. when to happen give us in terms in should later. ask that

to I'm more happy complement problem. my to No be that Okay. may necessary. any going here and answer feature be you colleagues will than

are that of First to We as believe new to we have models mode. are all, portfolios seen set. our credit that have able harvest. a believe we risk-on We better seasonal a well proven have on be we the

of still have position that and we see control, high much is very delinquency ratio. and a a pretty robust also under We provisions coverage our very

full even individuals increase very strong shall and more be mortgage companies to we and well. loans credit but show that, in also we the we and with economy, increased has our as as expected loans. been President have to on intend space, we So the in payroll but since to earlier, Besides on a increase are said going in large And is personal we trait also throttle. cards keep

as of retail whole to shall the that benefits bring a lot us. we a So believe

Okay.

here, with points Tiago. complement Let me some

we're to I see evolution NPLs rising of think going NPLs, of only terms In gradually.

pre-pandemic levels. still are We the below

sure, probably see mix we For change more mortgage, features the our is lower collateralized and payroll may the but in some think other with portfolio NPL we given loans, loans still is of normalization. these

risk, of will with we're the terms of have a major to without business portfolio a XXXX, We a good cost the less portfolio. going in probably In think of of or percentage the performance. line in of as expansion cost terms still more risk believe for we grow

been So now. in have us observing years the have loans performance this that very -- underwrite before that, the see quality, pandemics and the with and over are models that good allow even right able and to good translates we very performed we to our

line than second card question growth, card so clear. spending. very was below This well was but credit still very That fees. volumes My performed on credit this the lower be quarter, would

part I was are main interchange dynamics you the you line. of it this that if charge, So comment wondering you comment both for behaving? annuity In could hear. X on to be fees would how could if That the and those on particular, the nice

Tiago, we a business. in have good card we job very done think the credit

clients. segments volumes. the strong is of portfolio or been are think annual credit the I transaction based levels our volumes. are have cards where we products all we fees, in most new many features we products, charge products, don't in of diversified terms has we of all more kinds they Bradesco of evolving say for probably on And all can What for seeing terms a very recovery in

I fact generate, the one drivers annual But think it to going a fact, the overall volumes fact that and We growth the we platform be trend a of products, that will think fees. somehow think 'XX. are the the ahead. to have third 'XX. fee positive, When this quarter below XX% comparing think for we cases, still almost to overall nicely if fees, of we as growth to remain. total And going the reflects quarter we in growing We is I that's continue for the we and growing compare products fees also year-on-year they sustaining will look grows the driver new some you without to are be

next Our comes Scotiabank. Mollin, Jason from question

that government identify. uncertainty? year to risk outlook you allow a policies the the next case My an question the investment is it given you whether key in do employment? Is or it underpin to Where pretty environment about don't sounds some to see constructive talk way a on it's mean growth you given follow-up us scenario one. fees. to really Bradesco that to this Can for constructive for the companies scenario? for look as base the risks I don't Is like the Inflation? prior to XXXX, and items does see? -- What see

all Thanks are Jason. be guess has and as to. to no year It's the responded it's and question. is seems going as year that new I virus path first under the volatile to to a a new virus have knows whole all a to if risk itself. well we can one elections. way. a expect we the good to happen before be running vaccination, in population we pandemic the that Thanks, control, but presidential It going jeopardize the Brazilian very for very this or that a change be

course, We goes to the rates and enough. aware that interest help us indicating that on, have let's that the the shall some But Bank understand as not in increase inflation is is under it's very for way reason, inflation control. believe the that Of that we responsive. assume and in market of Central

course, inflation Of higher a high it and all interest those The companies growth in more here. the be rates recovery having to can or takes years. jeopardize to and much economy the cautious much, used more

additional beginning that that in cash any face believe in see may they kind of XXXX. throughout liquidity year difficult we in positions shall to their So they the order have of the

add those are that are for any they here But So that. the other prepared but see. colleagues my would may we say that main I risks,

Octavio following not least believe we very earlier, are at And getting and the of see that virtual We understand according strong. take we work, Central under the have GDP the to business the We is of on we very seize the Bank and X.X% agri before a said control year. that only behavior lived to to the as new population speech this set well that, we back finally that, is And besides to opportunities. manner. inflation

employment, more more clients business. see and shall we So more

that say and money maybe raising businesses the competition add you so -- that a the money not would risk term? in work are competition, where Do disciplined in or, returns think a you let's short putting priority to to Is outlook? not

funny. so something It's

Brazil, extremely Although always the few we have competition banks is very a high. fierce. It's in

imagine to impossible it's fiercer a So competition.

have that. bigger the from benefit shall On the pie other hand, share grows, as we also economy a we to

other end not So banks. the by we results of the ourselves losing day, to see do

get grown open see to with PIX GDP especially insurance with GDP. other banking, are we compete or very growing market contrary, have ones, banking on we any share. in as On only historically than to and either prepared, products more the grew not ourselves insurance, the well We the and

be we fine. shall So

angle answer. an additional on Yes. the And just

a far, client of wannabe lot focused competitors, on the mostly impacts, a lot we growing have seen So of base.

We have be -- terms is for they from of competitors. for competitors going understand think the that's And as but competition mostly lending in The little seen traditional probably on very many to the new in lending. still I scenario years. fuse,

very that flavor, have credit is fintech a just whole channels to give Jason, the we through our more financial interesting there digital given than you market.

to bigger in So digital and to the channels BRLX we It's just whole markets, all are of insurance billion the channels. that in we have. have course, add billion BRLXX we than And fintech that policies. traditional

Our Bank question comes next Mario Pierry, America. from of

Congratulations on the results.

Let me also, questions Leandro. X you ask

are start individuals with that closing -- staying and me and on leverage. on low your companies asset mentioned Let the remarks, of you to here topic quality,

service of the level figures earlier best However, Brazilian this some the of and near the year, consumer Bank contradict from Central that of saw that the is seems this all-time we investments highs. showing to

something the can number Central ask the why explain seeing and question. then my I'll just And So you're you one showing second then Why contradiction? Bank different? is

me really see we perception thing. let the our that this something we first, is Mario, are and Basically, from models the first not don't That's -- is consumers underwritten that looking clients see take loans us. have the what that credit to one. with overleveraged

have they imperfections, more some interesting are line in that used using the phone with the actually in terms is based but stats already [indiscernible], is what the to think Central leverage methodology leverage Bradesco the base income in Day in Bank that with increase ratio and of this is present survey. is we that that from some Central an clients. are calculating of I economists, observing shows calls the actually noting other We're so-called on from the of going methodology the by to had didn't Bank the individuals we see as the especially by thing, our that, pointed figures, chart do even taking Another our economists considering

figures I lot for the of get then lot investors. Central these from be will we was guess for of That a a do about investors Okay. next because that will we nowadays from a Bank very questions week look concern helpful.

is that the And leverage be second show can helpful. question... I will you it if not high, as think very So

just Mario, clarify Central our second going to the are order behind economists in question, figures. Bank all before share, going to we with to happy to have the more mathematics than to in be another you the meeting

pointing of a the leverage all increase part were is here I in growth long comes just lower that from of what Yes. additionally, on term. me, we the as mortgage somehow to have loan mortgage part and in risk And said, the top of also -- much people

transaction, it's not durations extended of the to to you ability Yes, right? overall And of the the by have of the So what we the X-year because see willingness installments, tremendously. day, and is end amount the the a repay. have clients consider

get but to a So this than to we happy we to. you take consideration wish afterwards have if well. into can dive as more deeper

on be will then rebounded second your than you you that to both relatively when improvement have As just but And ratio related insurance we No, stable. especially Slide Perfect. operationally, the seems right? It the like is quarter. much But still claim results, claims. your financial XX also is great. question faster last me to it they showed, with anticipated look seems is here, like income,

major the at between down, been I products? discuss that a have in like So imagine for -- not. I least this bit health right? trends Can claims in the had we you a about just this life you Because, discuss by auto have coming is life in bit quite this billion auto probably show, year. should dynamics As can well, BRLX.X little So number a but and would different decline your XXXX, product? claims COVID-related And upside think you again, year. figures next

decline Or that, I'm health that going then in in then in and come wondering in life see auto? to it going how Is be we're this first and claims? to helpful. discuss So if would you can

That's fine.

another I'd First item of add list. to like our all, in

premiums We dramatically. have grown our

So we and of good balance IGPM increase have sort we very controlling and IPCA. sale, between an finally we in some have have claims

know liabilities a we reason was seen And our represents we our and it's of good That's have totally we never that assets. IPCA and that together. before, IPCA IGPM You takes be have the and on the mean difference now very shall IGPM care why having something from seen abnormal. behavior. that I see this

the financial And as feature benefit. as is we company insurance comprised this sense, operational the well of shall one. always in The so

part are equation, they and they that we this of on So believe the are good matter.

Yes.

a was higher Just little IGPM on more a than IPCA. in that. point bit half the first than XX%

line. while life that the forward. COVID. something improvements the don't to loss I from benefit the full going ahead. had substantial loss already on the on goes are But normalization normal pandemics. benefits trends a partially was a to related health, since that's insurance think we driver claims by came see to started have on as have a due benefit the offset should in going will a Claims costs procedures that we a of to of frequency improvement to some very the from that. also and the thing related terms the in The part good take pandemics but were COVID claims of see faster be of will that some the were the peaks We to We ratio on is we procedures think expect ratio, the in definitely that perform more think going we hit insurance health by increase the good time by, of holding people the we normalization, for

terms life, as We that and good other will health we And -- lines. new think normal be strong for and delivering Leandro the in a demand in are see terms after in of operations. in premiums, In pandemic quite said, we performance. the insurance products

In going reacting for is a fully base. XXXX. our auto each time. It's almost may see see Health life brief, can going stead take on And immediately. grow segment. That's to in recovering some we view to we

can tailwind clear. No, Perfect. your significant a This in that's to results very be XXXX. Yes.

Olavo UBS. from next question Our comes Arthuzo,

Actually, about question, the general to results. will the I the like topic. to had for just next little digital a the clients launched was recently of it color and the X question's of more shift Congratulations would some bit little because marketplace bank. I a have I bit

for available I are platform? And of cash at the could a if there back words, the wanted the of the of has the with us much average also of at this been you back many cash next maturity to how question share So marketplace. follow-up was dynamic marketplace? how in how is understand period sellers other In the

Well, your thank you question. very much for

more Ejnisman going he's have answer to than Renato We here line, be and to both on questions. the happy

So Renato, please.

Okay.

question. for you thank So your

So it's we launched this been and literally tremendous already yesterday, a level. success

before is competition. have a marketplace of a it that took number the considering what Black we essentially, decided So Friday. have we we to decision launch And a full differentiating to factors with

all, I Everything we is incredible believe, user experience. inside So our app. have very, first of XXX% a

anything or So another do. our like to the to as our store have go app clients don't competitors to leave that, of many

and one cash back aggressive payment X I soon be receive as different the on the as -- decided very things. to that is mean Secondly, back, approved. the cash we is has credit clients the

the by person a if as is account as payment So transaction, card credit have they was decide if cash the his or the increase cancel -- to cash receives product, sellers. if acquisition obviously, take back the or person thing we credit the to other return the soon the is decide back. third also, the then the on half. they that we'll on And number her of left definitely the that approves, on And card,

sellers launched, largest including So we have sellers. with vast we launched XX of a retailers some Brazil. in the we When of selection

marketplace And what of on Friday. demand of But what have good we So in the typical client demand almost was pretty we a suite terms did started there. of their we Black will Black Friday. XX% grow is about what we products you. have after features to to the purchases continue area. Christmas. Obviously, there on year, we we grow is other to Thank typical of e-commerce outside Black And And intend the next Friday.

Credit Marcelo from comes question next Our Suisse. Telles,

or reform with in -- of missed I But the I think so strong if apologize hit X it the the you around banks payout in you I the How strategy XX% should the still, phase but potential have for if understand like more as your expect your say, we I market. and client continue square and you're a of and year, outlook things about on I think we towards or results. And beginning be an course? first paying XXX be your let's question. approval potential in for to in from the your And the understand if of or can approved, reduction that higher you billion say, basis with this tax potential you optimistic from is give I guidance continue hand, on think extraordinary about BRLX.X definitely and And if dividend? how everyone, go XX% of understand year XXXX? bit points, probably question And the for with the for margin quarter. capital have repeat. And impact aggressive prevent very questions, a peers, to second we other or -- Q&A, little Hello, Can this terms market congratulations position, overall apologize coming just to NII potential dividends? soft then a That's the and are refund the the of light to it regards your would decline would we in in product -- Should extra including we next of year? -- say, capital probably maybe take, than up with I I can XX% of the that let's large for, you're the right, payout on you on to rates NII this comment your market? but of, the position? -- I -- of on negative And better tax was general, kind margin in I evolution how up be. in should think the more next should

second question it's guess Thank from much, so start Okay. I Marcelo. because your pretty I'm you to going straightforward. much

not the feel prevents doing that, business. it We position. we capital of us from Despite have a shall see very we all strong hikes affect that possible us that tax that way does in a

use see the Besides the to we that, we very XX% if started we have it where should price to around repurchase see you think of dividends, are going -- this are our levels, in the be to pay to be, our fast And decently they room we that is will get we that way We more the okay? year. shareholders. that we just historical can, the very to according shares programs have not as shall

that's first question. the So

clients pay to intend well. our we So

We are we is we well. dividends question being in is the the that are optimum first challenges are and to margin. especially what focused taxed, not going on as market market And taxes have and stock, best, opportunities personal order we to so wait repurchase definitions the on The right? according the to if see going define dividend much a the pay capital to to

clients the now that, but margin more for better as But much that of are anyone believe we than money we We shall clients, best was margin them clients. XXXX to opportunistic. that. them to year the and on focused and the improving more We than was markets. bank It the repay needs before, more have product we see makes understand with an we said our treasury. as with giving rendering be regarding services, to extraordinary our ability intend Therefore, because NII with

So it but comes there shall be from an clients. improvement,

Yes, Marcelo.

we in of that for beginning that have in it stick reduction saying and loan we reduction. We that of that number, helping was the been stronger can XXXX. We range the and higher also discussed the credit, another we book. comparing reduction. funding in business, say a said we for already number Selic. with good year, the new XXXX, since XX% from for a as this to the with from a higher NII a much loans have have the our the production between would trends We year, marketing but from trend see the positive in should know, XX% the directly spreads, we NII And that have you Leandro should part benefits of As pointed, clients the of market terms this from XXXX. But should continue margin

Leandro portion So very think -- much said, we overall, NII. the client the a is the than market NII as important more

very That's helpful.

your been digital to I'd If And almost the totally valuation monetize me question, hear test -- thoughts. of The is you more do has do potential about next a than the been box, of your how as what your IPO allow bank. And be the feel you big see and market know, opportunity you the And double we you the out it's depressed, that what how have to just to that? cap. are business? interested --

the a has this market interesting the guess answer. The but always is by Well, price given very the market. question, I is

more of So including as that industry, the for the bank, the good you of are digital getting ready that are more are and than more is fintech than part including that and transactions our XX% our credits representing nowadays More channels. the we more there. as could using we digital, more bank. whole see And

have So we much multiples. shall higher much,

I understand. Yes. Okay.

this the valuation of your that being -- is feel underappreciated part or you business currently? So is certainly there in

our agreements in our -- with are said wallets. than Imagine credit in as also institution that. concession. from has It's weakness Next concession support we as our Octavio better world, we beginning banks is digital us Digio, mean, clients of mean, and major just I fintech the and native altogether than Bitz I universe it. assessment XX about their understand and they are any more and to would operational and credit million question earlier, measurement, kings I with with order financial credit No strategy have say, this and

something from. our that is benefit this platforms digital So unique

Our next Itau question comes from BBA. Pedro Leduc,

challenging course, pick on I great. aware more of which with performance you the this to a for XXXX your next the are bit underpinning you macro enter relative year. positioning and And your momentum, course, a strong outlook. is wanted is brains a of And of optimism, very

lot you hear share the what about we you book of gaining Is this a double-digit picking avoid you've up market, ahead driving to to consumer? it is And add if processes? been gaining I better thinking growth, that talking keep would able Is do share? more again, growing you believe a imply this? fair end that when assumption? be next can't origination, is which risk avoid loan we do to So rates to having with digital year. And so, the more or competitive The how

Pedro, that. Leandro pillars speaking. Well, pretty much the X for

The first one economy that is grow. that we believe the shall

going have We X.X% forward.

have better their agri salaries portfolio a able their dreams. economy to shall as more our We And have a shall finance therefore, And being we business. the and whole. increase employees earning we with

We ones, tend to years, position. they companies in their that more also cash be believe big conservative -- volatile especially to the enhance

market a intend be share market the to by We as so grow it portfolio But inflation, matter to of one's take have the some the play. share that taking are We of we very that not going single a only believe that, well leaders be every get shall end too. the pie more or grows other. to And we it the also positioned we in to segment day, whole. besides it's

a say pie more picking little would a up. I economy inflation of So that and share, there's combination of growth, market bit

quality on if Very good. a bit. to Understood. were credit I question transport to And that

individual course, NPL. your Of portfolio

your with in NPLs. individual this comfortable industry the the The rose fine. definitely, mix but it, in ahead and side, XQ are of is already You it that's all on

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was this than nowadays lower I talking here much to table our just our Firetti that shows levels. exactly a you historical have that because is

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conservative market regarding than have been the of the to coverage. much rest We so

a we to NPL So very it's commit our to it our this but behavior record I send regarding on see expected coverage when and you formation. of ratio to historical levels. ours to track grow, good afterwards

Yes.

Leandro have coverage. very Just complementing strong a here, as said, we

We our are still of ahead XXX% competitors. at

increase still think next For year, low. too a -- will we little. are NPLs They we still

this I or more growth think be going stable But be as the think that's and expect is as our a can we cost to relatively cost conservative a percentage we provision believe mix, with risk of risk stable increase to our meaning relatively in the portfolio, portfolio. of the Overall, considering trend. we line in growth expenses contained. of a

Our next from question comes from Stag Lis [ph]. Capital Lissette

to curves. have during I doing yield how curve that and X% wonder negative since this well investment years the X% dramatic of is question in banks same bank to this? rates the the the one dramatic most been and about XX rate the my the with under I when coping short would you over curve because have business. Bradesco below because years. the XX relating going has a out. flattened is from works has I'm change May. happened that How X I've say seen yield yield has up I And normally, is steep in And it's drag a between It's --

And that's more the one one general. So question. is another

I and from May, this risk, must That's collapsed. to rates, inflation think pushed important I interest BRLX. Bank going understand up inflation BRLX the will which there. is mean I Central the real everyone Brazilian that inflation, the ghost is short the think inflation, X% from been is chasing growth, affect from I X% below has XXX% and mean dollar the coming currency since have been a temporary. not almost that it's has to to

been very doing is very, you and they at but the rates, currency X.XX. gives, Central and hasn't Normally, still up interest -- put the badly, X.XX, it all. think under at has I real helped when put the So Brazil rates, and Bank it up

So that's a more question. general

you Bradesco. yield to some And how what's ghosts. complaints it's the Central then about happening have question, my affecting the Brazil chasing First maybe can on curve comments Bank

for your you Thank questions.

NII, your of strong yield higher curve impact the I the this in we of move discussion understand case, your the this Regarding heard banks. very where the our portion of our this yield that general of point capture of results curve. the is market the probably In reduction in concerns on impact on

On the book. of loan the major other side, is banks actually I in for Brazilian from the think duration to the one like banks Europe, instance, -- the of difference

our faster. The of have repricing We much has a happened shorter duration. portfolio

So relatively put higher we at can reprice assets and loans and fast. rates

think is how the I that's other spread -- with the on we of the the credit believe funding. market And the actually this. we have the portion on we side from why side, client cope spread where are that margin -- saying the spreads. That's on we NII improving benefits

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it's understood the inflation. has Regarding to Central Central Bank, I that understand control move actually, Bank think mostly I to point, the your

appropriate probably going move. it's -- that's that And results. to think I the that's have

HSBC. Carlos Gomez, question Our comes from next

I your want estate, lending real and to market has ask estate considerably. specifically quite growing real about which the been to

real do concerned think insufficient the do finance way point the that also you we are the next [indiscernible] market? do funding to year. product? And at savings that you to mortgages? need extend the in Does the might nature might you change and You to change estate about second, mortgages accounts Or economy for from be what from the and of

We employment client not we of it Carlos, Brazilian. concern. do higher have We is Leandro a see as a rates, dream of as that speaking. of believe ours this

have the can to home. order they So more into their get financing, they mortgage own in shall

have And very, of a the very value. portfolio. pressure from source loan we the amount to very funding total when you good a is savings have far. of compare as We to so besides The loan no that, small

So we The that loan value. trend keep are key to good. is I mean, shall are going. with on positive we the the

any pressures the side this point? competition? margins Any And on at by other on pressures

X especially as well. have this competition. products important very end to of banks is catch up We us the segment. from the But sold. around have we since see cross lot the Economica this allow of by competition, leader a being trying Federal other Caixa that a in us are Well, product is to to mortgage day, the

is we aligned. much rates So the pretty have very a head very of industry, are a that and fast, the process effective

to be So it serving is anything of else. going clients understanding and

Since there closing to are no further invite questions, I like remarks. would the speakers for the

thank to very be much Well, for making you time with the us.

a very positive Q of a are the Take nice third and organization on are on your quarter fourth going have We proud whole day we keep of XXXX. We and hope results everyone. health. the care, in as the with for you

today. for much you participation. call conference Bradesco's Have for Thank conclude a day. does very That your good