Banco Bradesco (BBD) 9 Nov 222022 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 2022 Earnings Conference Call. This call is being broadcast simultaneously through the internet Investor Relations website, bradescori.com.br/en. In that address, you can also find the presentation available for download. We informed that all participants will only be able to listen to the conference called during the company's presentation. will given. question-and-answer there instructions when presentation, be will the be session a further After Before let assumptions Instructions] the based and [Operator proceeding, information company. on statements forward on the are looking beliefs available and currently of management me Bradesco's to mentioned that therefore not They and occur future. and in future uncertainties that circumstances risks, because they the on involve to may relate assumptions events depend or may industry of conditions affect Investors Banco and operating forward should economic understand cause also results that looking factors materially expressed could their and conditions, future differ from a general Bradesco could statements. to in other results those such

turn the I'll ahead, Business Please Carlos Firetti, go Controller and sir. Now, over Relations Director. conference Market to

discussion third of results. Thank XXXX our our Good you. everyone. the Welcome quarter afternoon, to for conference call

today Osvaldo Vice conference and [ph], Vice Eurico Executive Executive the Miranda, Gontijo, with CEO, Director us Navis Chief Banco Zimmermann, and Chief call of Rodrigues Jr; Officer; we Also Curt Executive have President Carlos Executive Lazari President turn President with [Indiscernible], the have [ph] our I President; Andre Carteli, in Bitz, Executive Bradesco Next de Leandro Octavio Officer [ph] Executive Vice and Ivan of Cano, and us, Executive Banco Giovannis Chief Bradesco. [indiscernible] Seguros floor Executive Director; to now Bradesco. Officer. Vice Fabry Fernandez, CFO, and Casionis We IR Executive

for once part conference all you, our again taking Firetti. you Thank Thank call. in earnings

economic goes cycles. through the third The that Q reflect moments in market current a earnings

significant provisions. and economy, began points the expectation bringing threats in known to the credit various made credit pandemic We worsening have of we a When reverse longer at cycle.

have industry. provisions to were release continue now, increasing improved throughout due we of moving companies the XXXX, economy XXXX mass a that of excess in to granted that are large the market. able in the to been the is beginning the the of in and loans especially provisions, cycle As Right to medium part XXXX we expected

into We at speed now are full bank. reforming the

We you with unique largest while physical always Brazil one company our from us, undoubtedly our corporates. between certainly peers. their As of clients come Brazil, I We insurance that the we in that Customer the is unites largest are greatest of needs. serving of products behind Brazil, financial and investor centricity the define the Bank Latin and positioning first. to and to Digital motto, physical hold capillarity in according the way in us today, preferences presence among America, digital, transformed individuals offering the maintaining

extensive operations, As came you over companies with know Brazil. that or either clients, Bradesco of has all serving segments and all individuals

also we which already In the the we XXXX. we two of in have and of adjustments made improvements course provisions harvest, should delinquencies the in the the indicate Observing disposable in result and made strategy the in recent position all projected performance the use with Brazilian XXXX unnecessary the improve mass and individuals portfolio in link The the capacity, should and expectations. in last loans economy which a companies. economic quarters, banking increase payment stabilize expenses delinquencies of in the the NPL our of XQ interest constant speed continue our hike lead scenario, high correlated deterioration the into market, affect market XXXX. natural market client's a The loans of inflation low brisk loan and initial versus a our the SELIC in has migrant of As great non-performing provision The the grew renew both prefitted NII. broad with results income the activities for above segment small rates are ratio the which formation, the of in income. in to in make the

in continue in out point months probably and throughout fourth of the XXXX. effect quarter, will first we As Q the the six previous this

pressure the be of continue Our change level expected of a quarters, but return. remain operate with the they consistently more bank able few half to improved should will under XXXX. second to for We an profits to in is believe that

that from with delinquency of XX.X% bank compared level and and historical will 'XX a second us annual the was the half by making A The a an adjustments portfolio of contiguity of income includes, We group; the level our to in performance a insurance. a in XX profitability. the wholesale due this benefits results the improved significant earnings, maintaining rose the ratio, to thereafter, 'XX of in which drivers rates even which the we continue over market improve income days. evolution the mean from which NII, for provisions. reduction quarter recurring a high and with in pursue improvement recovering the credit between With market mix, XX.X% saw the pick lowest to from should of return delinquency income quarter and cost second which gradual this good and record quarter, net drop needed The periods. will association will of comparison, expenses, loan return XX.X% original quarter allow provision primarily insurance first respect client credit in NII the previous same XXXX; over -- associated strict control the and to the NII,

capital it our close out the of strength level to we'll quarter points with a sheets. balance the XX.X% Finally, a that Tier X

made main were over the Slide in in compare the addition claims increase billion and Now contribution we items an increase the growth positive reflecting the insurance, by concentrated term NII, which from which margins. to grew more higher loan client X, BRLX.X Income the that mix, the period and benefit ratio. with increased have BRLX.X despite we spreads the been year, that nine move portfolio accumulated lines the in has presents higher origination first that income realize short the of year. in the same from is of billion months profit income a net to to last The financial the premiums

of We also rate billion BRLX.X and as our high BRLX.X nearly two managers in that the of profits mix a impact and provisions a level This in includes of have supplementary ALM provision result Market the posted the origination billion quarter. a as by we Selic growth increase increase items magnitudes. of credit reduction BRLX NII, higher same accelerated reduced delinquency. on the make amount reflecting portfolio the that made this billion which

Origination scenario X, with adjustment lower loan let's ago, we delinquents. to than made Now The last in for quarter, was pre-pandemic today, An quality. individuals presents is X.X% the to criteria to grew XX.X% example as our year. markets, superior to and penetration a Slide XX.X% we the clients. is credit card XX% low-income cards and mainly credit mass the credit about of XX% increased that portfolio high-income restricted given which last compared this talk compared period for of XXXX. of XX% credit we for XX% to the year proposals to but approved the the in the more growth year, high which previous approval, among turn The compared risk reflects

increase and inflation In in pandemic average the the after periods. over addition expenses the to

this year surge due quarter a portfolio even with restricted X.X% agribusiness XX the of the portfolio over Here also our and focus should on renegotiated the further. our are The began loan to equity very low this proportion portfolio. agro through The segments. is stable remained third we expand crop credit In income platforms. as

small with made adjustments percentage we Turning The points segments order inflation. now origination. companies, said, the in XX ratio to over declines we Slide X.X most microns cycle. The as the economic quarters, was were remained group the stable two delinquencies market concentrating affected delinquencies days an has X, the mass affected for in that by individuals reflecting by increased

the coverage again higher nation once the gross of and the remains reached credit ratio for at XX strong as X.X%. NPL days of quarter, This result, the NPL provision than very XXX%. The for level cost risk a was

given increase risen to the of is compared XX% what the net higher mix, to in highlight the XXXX in third bottom than nine of client performance continues the the X.X% XXXX the on we Now chart margins, higher should in provisioning the XX%, NIM product XX we continues and post at quarter. expand, increase we market under higher The fourth Overall to say impact can had bps Client impacted Selic net go provision, positive NIM XX.X%. the addition and NII. to reduction. the spreads, Client's In to ALM the is favorable rates, talk deposit portion better evolve, slide, portfolio be this also month. pressure, the to X, credit the quarter quarter while NII, has by we from by than NII which in continues the that accumulated benefiting pre-COVID. up in NII growth to over Slide due the NII the the in year about the

is of first gradual, Although rates negative. current portfolio in with second XXXX, than this considering still The line of should the rising. recovery with one, expectations the interest better half during the be

move Now let's to X. Slide

growing dynamics in the Accumulated about results offset performance lines the operational by by the in in from a third in overall. related across the year year. continues or year COVID guidance million, which operating higher as on business expanded around XX% the emphasis in fear The XX% XX.X% We income talk and financial with the a results, Let's in reach third series the results. Insurance year Therefore, the in positive the highlight to financial growth net the of than with lowest a XX% very influenced BRLXXX last major Q, revenues performance. the Group the from XX% income more our the indexes. all contribution the in less in same volume billion BRLX.X an claims directly insurance with Q

Insurance an to Our and the operating quarter its already in from showing number of strategy the the continues items insurance is our reduction reinforcing and improve the loss previous 'XX. expansion and segments. The performance, with and Group third clients thus confidence a ratio Q from grow

of and our the use the the clients increased segments. Slide revenue X.X a in XX% years. the volume reaches worth Continuing has segments X and high million quarterly a the account That maintain banking performance substantial is from a to card group part We level we lower from growth to growth X.X% mentioning X. in X.X% which risk now million reflective higher grew for clients share, base progressive XX.X and contributed have the in year, income the items and growth Fees outlines the service which line the increased Turning Slide peaks. by demonstrated the reached the in and it's specially packages offset in income private of for return. our with comparison checking XX.X% mainly drop it of service

in Brazil, in XX%, the in around multiple bank recent private currently resources growth volume the $XXX largest are with XX% Since We and X a grown at the XXXX, second years. of local by billion. market share have we arriving managers

advance specialization value bankers Bank, We of seem Bradesco formerly have and our our proposition, with also Florida. increase to solid continued reformatted which Bank Bitz was a and with acquisition our consultants

We benefit, offer with increasing a opportunities clients. will of BNP to as an continue on the in with the partnerships, our in Management agreements Paribhas in view signing with towards JPMorgan, providing best share acquisition both Independent such Wealth by our strategy industry those our observing we

XX.X% personal Slide We periods. The growth of X.X% mark for IPCA the a inflation by lines below and grew Operating the XX. a at 'XX. bargaining in at will posted X.X% a and 'XX now at by the look collective year, agreements take X.X% impacted GPM expenses

our to and continue processes technology, an and also data investment provide a in our improving advisory our for invest clients. teams enforcing better to effort We experience in enhance science

optimizing on for Bradesco physical year. great and the of continue network We to at variable on presence banking Expresso, and clarity X.X% helped for customers expenses based trench digitalization These services. the the contain administrative investments correspondents increase physical our structured costs. focus client have convenience complements our our in a actions with it and presence in the in

which distribution quarter shareholders more the liquidity positive increasing on the and a equity, on Profit XX. offset Tier very security generation the in form strong over level. capital by We and will by bps, of interest X our the than weight on capital the market and discuss consumption now XX of continues Slide assets, mark

the level a tax year for with handling the high to level impact LCR. the that estimates the we fourth finish rule credits of investments from in will application suggests closer XX the a bps December one, closed nearly of originating current of with We the Our quarter out even of with completion of the heads the the with abroad. quarter for

clients our sure Slide experience XX. to now Turning digital is Making always improving.

a through the This and a introduce micro of and stores digital We in of provides individuals the with to annual business. autonomy a at via experience our accounts results new we opening keeping place clients on NPS. the based of by transactions features in frequent has upgrades increased satisfaction of needs by for digital, our the directly that experiences them app all grew are more of XX% decisions. strategy by entrepreneurs. committed heart and them data of for XX% an holders overall aligning for The performing level success with XX% app account comparison, better been an enormous which with and are now that our official at clients XX% channels. with our In and is take -- evidenced the Currently, lot XX%

remain XX, a the we to impacts with XX% carrying Slide committed social respect achieved we to activities environment to now have positive and of sustainable the out growth. agenda, our business Turning already with

have products the and We years. our last environmental two few social XX benefits boast over in should that group the within highlighted portfolio, for be solutions

and X.X times. which of of reaches hybrid BRLX.X billion vehicles First rose solar for financing and financing the electric all which for purchase panels,

For partnership proud are we'd our to like importance out we historical of. environmental point initiatives the an the Foundation, [Indiscernible] issues, of that with

is Egypt, XXXX Climate XX And Slide include We trees the trends all million in On is and have Bradesco maintaining supported in. XXth since over at ensure which place major its line planted over strategy on SLS Brazilian the have Conference agenda, reserve and issue. are this states been on in We now We the pioneering sustainability climate in to finally that spirits. Change participating spirits XX. UN follow taking relevant the and we and to significant move native

With level insurance to wholesale as lower for to for return This believe performance the we on for the On Our cycle further provisions to recovered line credit mentioned to billion $XX.X our positive performance performance market for NII. to levels client the in Thank XXXX. XXXX be top better we'll but and markets. earlier, Quarter, reflects be the the range the you strong shall very growth we the part begin In Q&A we that will range decided credit the the of quality $XX.X despite the will Considering fourth mass markets, the to of remain provisions, of NII our guidance. last third and quarter. to the At According attention. slide a negative, credit today. able quarter, revised. the range in loan the than session. points loan we third fees. from and regards revise in should in costs, this billion much And now we projections,

you. Thank

the begin Thank Instructions] now session. will We question-and-answer [Operator you.

Mollin with first comes Our question Jason from Scotiabank.

Portuguese. call just Hello, wanted comments questions. everyone. and on I conference to previously in the the Thanks ask to making were you some for opportunity clarify

outlook the can second look the macro You Bradesco expecting end second quarter, at quarter. today, change. seeing doesn't-- the now if allowances in versus outlook general you talked down something were from of looks the clarify loss top the in the than about I talked in that material index for you better it at wonder just is the looks see versus about change forecast numbers, you the inflation quarter second in when if the we And better. provisions just we you're and don't the the your price

one to related Were that would we But that asset second asset And more my so about you're how what loans quarter worsening. calculate to quality? third mean, we just telling second. sold impacts to quarter BRLX So was how in we And days in that much next? I'm understand you there quality that sales in up sales saw understand provisioning us trying consider to loan or the we impact delinquency your those trying could if then billion if the tell how metrics. that outlook I'm the XX question just to Thank how in changed doing. past loan the is clearly, and billion understand you you've I And due a BRLX.X loans that, wanted us you. those been from

question. you thank the [indiscernible]. Jason, is for This Hi,

Regarding results, basically, in the of outlook. on change It fair kind your also the guidance second In guidance in we that credit the view probably to evolution in I than our more the view. in brings the materialized saw our revised the actually is little best say quality. the above we first terms for what Basically, question in a And that we changed advise loan provision was the our were quarter provide impact our on line. would and outlook of term in expenses already. bit that trend coming more seeing moment book

a of nutshell, the itself. there say I the things defiance. change this evolution outlook, in something. that of the one terms for outlook, the The drove what And next but more quality big outlook though don't considering situation the our was wasn't in big high us So the the in actually basically, is I we're like the know in to is would seeing revision. in driver and that do say inflation, hit markets. change would to Even you if really numbers a that the position

of impact NPS. something of were increase as XX sale this more credit terms that basically sale the retail in said that XX considering as I pointing mostly the or in in the these delinquency And loans were in were were Basically, loans by personal war segments, loans. book bps the have ones our around loans. negotiated days more Okay. loans portfolio, affected the we cards, NPL, of basically been of Yeah, is than kind

[ph]. Enrico Hi, Pareto Jason. It's

about important I clarify especially much to after performance, highlight to all Especially think due the we the vintage December before. XXXX, events and before XXXX that are proceed the portfolio that adjustments highlighted Leandro about than the performing Just and approval vintage XXXX, credit rates to the the that better in it's the fact XXXX.

we start, process. So tightening the tightening And by with continue then. we policies since a

our the crisis XX%. XXXX, level in before of approval reached rate So the

During gradually to has December And up XX%. XXXX, the went decreased pandemic, then to XX%. after it

has through So And below percentage that our points XX credit. before according we profile points, at experienced it's to a been what lot. door the the improved

So used a and very portfolio, better that portfolio, average as and just today in also the bucket we door in risk, XX%. are at low big before of the the performance we end to sized a we These of than collections up know book in the to indicators the risk above it's we XX%, I'm between XXXX very because acquisitions. low first risk more highlighting low acquisition. the year through are first we're gonna have XX% highlight we one the XXXX, of current And mention, crisis. that what through performing. door, with new kinds see do We the have in And

decrease and a the experienced months. few in the last on also indicator So we

bit second that little course, half and in the of over go is to Of days you're be the a going first than in to quarter of believe it quarter that's the XXXX. XXXX, why will when and you higher we and the talk decrease growth gradually still second about then used delinquency the stabilized up in portfolio reason are there, XX before rates

it's sales recovering. to asset say is our asset important of about strategy, client that question your the focused probability on sales low to strategy with Regarding

days. low of XXB new to recover identify the do? we the what and of of segment can portfolio collection these that use in asset because than And words, sales strategy. XX% backed So to this is the by and that average trained of all portfolio the off important delinquency we most mean, before It's a and our over XXX the portion analyze there with this probability delinquency sales this we other the quarter do attracted written is portfolio non-performing we low we of fully client recovery, these focus the that already for probability clients say turn portfolio sales that and with of we every off recovery is is We chain provisions.

is on a with it's makes our really our the high that, team collection and on in our our new standards low portion you're to part continue assets the very we talking those most That recovery, probability for the us. we're And delinquent. of do And and relationship order So important or that probability what practices. going with strategy, of to delinquents recovering we release portfolio. any to about going sense protecting are to customers to specific for of see continue don't focus

appreciate I are answers you And do helpful. provisions. that the you and rising, the see very in when you. risk making appreciate appropriately that That's the acting Thank color. I

Thank you.

from Our Batista UBS. next question comes Chuck with

will discuss was on the at on questions in segment. I this completed of equality call Declaration positive look point. that Yes, we on and call of expectation most the those income our the low the

the have The the for checks The been are they loan month, one. staying the compliance. defining with and view And flagger seen going kind first this in are is kind that of, fintachs one, in last goes low one impact you a in final adverse one, of any higher is second selection income income if bad to you the the this instance? good low already believe clients, are if, if paid be so of maybe but show will of third clients

that in traditional profile, you discuss of clients, loan on If Bradesco explain in clients, the traditional the the any any you're [indiscernible] difference went to Bradesco, see if Next, client income after compliancy or differences quality doing the there? next, low way performance actual in the or

digital just Max would all, And different. of our pretty in an we the are we have of as strategies own has XX% Therefore, share, Chuck, as any it's clients, and banks. clients. Well income is overlap its there lion's speaking. of have Leandro first or banks much other

the our we we have the more profile, clients we with high can clients their it try understand with clients don't we XX% penetration basically, at times think work into selection, adverse and of most more we segments. with than know increased income their do like record that to to that payments, track we so that Regarding existing we by

we not of natural there a our in adverse your as bid low the that in terms And pretty C, income basically, day, E. think conference the in those highest have rates choosing first Brazil. the do by above It's that delinquents selection D, came said racing call. So from much clients. of an end was you we the and Because segments

the banks much only are We bank different capital. basically as and every from single pretty mainsheet municipality that's clients have those that

of think low micro I much the its course, we and So profile income, individual bank times to more And share basically as are that's has and a of of good bad because the they talking like the and clients. else. well, that companies profile anything small times

hasn't during with Chuck, changed adverse I the profile Leandro. see that their before pandemics. that and kind that through don't application I pandemic is this Jualito good is see agree way [ph]. different of any selection. The to after

is that E profile So to used higher interest the of C, it's and linked class profile clearly by inflation and D same we and class, the has been these see we profiles, course to that affected the rates. our is have. But

see selection, we of we days But rates seeing why indication terms adverse of the any that. liquids are increase see right in I don't that's So now. that in

time. all Yeah, you the him could ratings in for with much origination, it improved maybe they share how have

terms made that acquisition. in day Okay, of you

on around low going XX% going used risk low low mentioned hope have customers of before new portfolio, current And risk. and to new and very from risk card actually of the to profiles. close And XX% now to and very risk low I we over As year believe XX% for we're that we're cards. these we

the end of heavily. with much situation That's better pretty working you by day, basically, when the than -- their are deteriorated before, situation we the financial has but proportion, So point the see their clients

connected very the to Because portfolio.

pointer that crisis, before has a an has So a the credit the deteriorated. you'll performance the severity erratic of have but performance has and upward

do it's these something with portfolios about anyway. an can worthwhile So extremely equity

Okay, checks, the okay. In review. the back the fee from

that, some impact performance. be Actually, hadn't if credit be would and did collections, see of any significant. there to even seen recoveries But and Chuck any seen We we anything we perform impact? terms on in haven't analysis that was we honest, and to

Got you. Thanks.

Thank you.

you. Thank

comes Stanley. question from Morgan with next Cody Our George

already good Hi, original just loans are portfolio the Is said. impact. the a impact been written correctly of everyone. assault I will at sales I on Did understand morning, or that or were that clarify be were Because wanted points XXX% loan basis was to were I portion? off? sales. sold there something why believe, that on novel, will fit the the the don't they there was from the XX if understand center But read NPLs an that

Just -- clarify

had were that billion written books. and BRLX.X there off that involve Basically, billion in BRLX.X on we're loans been still our already

The impact the NPLs come from the X.X bps.

correct the And it. the number? Got that impact is XX Is points. basis

Yeah. Yeah.

with, the important they same sorry. Just It's highlight to correspond profile. both have that a minute,

probability have sold. they reason And the low very of So recovery. why been that's

strategy portfolio, pre-written off the of that very if net out we that we few a though regardless really is even people that sell our low ago. rate probability of high I understand of the minutes to even is recovery, know these and So as that then stage has population a interest workflow they pointed language

what you. of Thank what you portfolio percentage the corporates. SMEs composition guessing And can sold? individuals But comment on versus you've I'm what of that was is not versus

individuals. as majority Vast

you're the a isn't? card the there Heel, been is credit mean, talking that is cards, sort I you've book? of like Achilles that particular seeing is product And that cards, about credit credit defaults more

are on concentrated product. concentrated That low are on the income the They segments.

loans basically, and installment -- So

Personal loans.

Okay, got it. Thank you.

Thank you.

Thank you.

Goldman Our next question from comes Sachs. Daer from Labarta

why saw the deterioration the one versus NPLs. you up I color some within consideration lower Any digital from my seen extent been holding channels of thank clients, worse your some side income some you other in of peers that aggressive from bit your the it's think the was came we've up what follow Thiago's are on give do or now those that of taking questions. Thank you you there seen do hurting earlier about NPLs fines in guess industry, in terms too terms banks, for than growth looking you banks. think versus can better the on maybe digital the some from we've question coming to clients a digital branches. And We NPL you.

speaking. sort the [Indiscernible] Enrico of see Well, channels, of basically, that the to of answer. compared do to you, traditional from well add not going from digital group group Then any that came Thank channels. clients as difference clients came as between the is to when through we

strategy, groups the digital among make difference to And who of those getting select itself now as on business, results these they referring thought of we not We are as the clients, strategy. ones a different them and better the you When on focused are the no monetizing base focus a you to and was morning, best there the So as to as and from clients. far grew reference we out where score concerned. trying max, then is point are you them. statistics

talking So physical between to no channels. are we difference and there regarding worlds. about was two Bradesco, different digital But

mix different. different the and though that It's the made. not within the performance the Leandro the even is say just the important generals channels, are Just to between within that complement to profiles much point that profile

we channel have So in digital general. very, what more A B, happens, will attract a Class normally E, and attract C, a D, when very we and

So it's we because essence two different channels. for our very have different ranks from

two doesn't lot. itself, much to different profile the within change a the though Even channels, change just clear. be channel between So techniques it

within of than on or to combos worse, inside just it general safe that mix the partition channel provider. the itself, brand be the our of difference you deliquents the when channel, channel the the because mainly So and

up segments in some helpful. not mean, just that loan terms unsecured follow I systemic slow you how flowed could become question. More Okay, given do this significantly seen growth are but to that these the general, I the sort that should still already here? expect significantly in opportunities and growth, from we've or you segments down but them? of for question. those Thank we've seen issue I seeing deceleration, maybe, for a think potentially do pretty great. And guess, Bradesco, No, sure growth guess, that's system. in mean, of In two-point you. I

ones other Okay, among you all, well, is compare first the of most far as ourselves adherence geography we as banks, the the the concerned. guess I with are when

Other -- largest have are when as percentage. profile. concentrated more banks CDLE-rated a we compared are cities and capital. in we clients the main So,

do The process origination is are those second an more reducing to been ongoing to our more conservative on we want approval slowdown we the basis, regarding that and to thing have clients. and and

Okay, very Thank perfect. much. you

information portfolio and if in Leandro they're focus between on general on going the reduce to bad. classes Where reduced There that models of any to though there did But will lot reach work that we're new and terms. happened we is continues that we and good When to [ph]. CDLE separation constantly discrimination, it the said, both is other to have a portfolio, ways. a thinking have, general that be improve we're you to to concentrated try or out advice improve it's good it upgrade could for going something better the leverage of appetite that on and going any what going even try to

you. Thank Great. sense. Makes

Elliott question Geoffrey Our Instructions] Thank you, next from Autonomous. comes [Operator

where outlook in Hello, thanks the wanted much very being taking for earlier, the the lower. Portuguese big And months this inflation follow terms I inflation change call really of an to of call question. about why been provisions/ actually asked issue, one now, over but mentioned questions that on the you on were as last in up the bit on has few for you

coming of context the Outlook program, happened different in in to Brazil bit over the understand August? the some now, What's people fuel so the to [indiscernible] a from through outlook falling. three make struggling income back last the support more cuts, unemployment months just to down tax low So inflation

is this [indiscernible]. Geoff,

of would much question higher in former But actually I we the guidance. the that top just change range when transparent, be the year said, terms us the a be material, second call. really thought to guidance As English the clear in say I'd than in saw the especially segments hoped a in the in of the mentioned, of for NPLs, a range quarter former the range call, to the guiding the increasing it instead in top difference we above became call, the have call, of which more already we trend maybe continued was of that wouldn't had provisions

was old so kind upside improved, you of and it bit a other maybe of the of then sounds hoped to numbers XQ the there as way. went like range it those Okay, But left it

So that's why we've got the adjustment now.

that's Yeah, correct. Right.

Okay. All much. very Thanks right.

you. Thank

you. Thank

Mollin question Scotiabank. comes next Our Jason with from

the explain for were other about the to prior would wanted there seems me be question -- large. a can allowing income follow to the a on line, that thanks Hi, what to also question. were in the call was movements income. They from other if another up helpful. I be you And provision ask that

tax a We had the in that made. due we had IRS. of that the had recently, to won to the Brazilian to administrative we revert related discussion to and is It discussion Okay. body we provisions

dispute. was What reversal? provisions the a size that a tax was that of So of pay to reversal tax

million. BRLXXX

Thank you very much. Appreciate that.

decision. Yeah, it was definitive a

revert recurrent kept that and recurrent we a we it treated when when a we it really to as expense So had that reverted. as happened,

Okay. I appreciate that.

Thank since gentlemen, are questions, to like you. sir. I go ahead, for Leandro me, Please ladies his invite Miranda and remarks. further would there no closing Excuse

all you making time thank the for here. be to Well,

may you a have. is team we additional answer Have questions to ready email And by time. great any send you at IR week. Thank are to Our it clarify much. us can ready any follow to you so

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