Grupo Supervielle (SUPV) 26 Aug 212021 Q2 Earnings call transcript

Good morning, everyone. And welcome to the Grupo Supervielle Second Quarter 2021 Earnings Call. This is Ana Bartesaghi, Treasurer and IRO. A slide presentation will accompany today's webinar, which is available in the Investors Section of Grupo Supervielle's Investor Relations website, gruposupervielle.com. Today's conference call is being recorded.

participants in all listen-only reminder, a will a be mode. As you be presentation. questions an will to opportunity today's There of for ask end at the Instructions] Officer. Supervielle, be and call during Biglia, Chairman Mariano Financial and CEO; [Operator Patricio Chief our Speaking today's our will are Board; Second Vice for us Grupo member several Alejandra and Naughton, the Chairman Vice First Supervielle Stengel, Jorge also call. of us and Board today's CEO; Ramirez, Alejandro be subsidiaries, Chairman joining of Board Also Bank of joining will the of will available for the All session. Q&A be Note we that rule Hyperinflation accordance starting Bank XQ 'XX as IFRS began Accounting per Central with IAS regulations, applying XX. reporting results in Therefore, adjusted unless for all XX, are XXXX, this otherwise June results presentation inflation noted. as in of

effective have XXXX, of January all quarters In restated. been for Xst, the addition, following the A-XXXX, application figures XXXX retrospective of Communication Central Bank

For report your market includes managerial yesterday in close also after convenience, nominal terms. earnings results filed our

make mid-term discussing CEO, obligation our update filings Mariano our Chairman Today, Biglia, forward-looking no the performance new call with uncertainties, with are Patricio term strategic pandemic will Supervielle, forward-looking SEC. of safe management's subject refer revise the we events a We like start follow an I following beliefs and and outlook, for our number or harbor proceed, to which the circumstances. near our call of result to the statements, as the any and you or forward-looking are our the or update a our Today's statement to of assume statement. and earnings based and expectations quarter release on statements recent to contain and risks would and will changed I to initiatives. including, and reflect section current Before COVID-XX on will CFO,

us Thank Good you earnings of X everyone. our you, joining Please presentation. for morning, to today. turn Slide Thank Ana.

past below activity resulting last higher been in at also inflation provisions further taxes, system banking loan environment AR$ recessionary loss penalized regulations Central in have finalize growing assets ROE in COVID-XX, with NIM putting significant and March, along Bank volumes of the negative pressure of demand XXX in This, loan the million in liabilities net historical for second lows. deferral resulted prices We wave are increased X.X% quarter, turnover and navigating with to and loss by a of of together this and after programs quarters. the with quarter. remaining

in non-recurring have For the income first of excluding half X.X%. a terms real will ROE approximately reported the of severance we AR$ net and year to an million, charges, XXX

terms efficiency, retirement severance in XX% ratio our efficiency the XX% mid yearly in comparable to non-recurring flat. expenses single while revenues, quarter. digit were decline comparable In relatively an total of mainly excluding payments charges This earlier prior reflects from and deteriorated

non-recurring six first year-on-year. comparable down months the expenses when year, at Looking dropped were X% while X%, excluding charges, the of personnel expenses

Finally, strong liquidity sequentially. quarter capital with and Tier base closing points ratio a we X basis XX.X%, of a solid up XX maintained a the

we are Now commitment Keeping digital on discuss creation, how advancing value will our to long-term turning Patricio initiatives. shortly our strategic agenda. transformation to our

Slide our loan X. on on to Moving performance

Our was as increased loan loan policies. SME tight digits although sequentially contraction, a stable, sequentially, decline mandatory demand. Consumer the credit we book and remained portfolio reflecting single to in posted loans relatively a retail The peso financing overall maintained corporates lines. portfolio weak standards offset loan slight mid in scoring credit by underwriting sequential partially finance

XX preferential mandatory close Note loans currency to basis accounted that XX% the US in of points up rates. loan credit government were SME includes sequentially dollar sequentially. loans billion Finally, our at X% XXX in portfolio, AR$ lines for original up and

June. Peso payment of quarter, reaching the sequentially deposits increase original deposits and remains were in ratio rose XX% sequentially, continued of in over Turning Total deposits the XX%. retail that single balance X% seasonal in to in the accounting posted Liquidity to loan record The deposits increases XXth nearly over following to X. this solid. core low X% of currency compared by salary funding on XX% average sequentially. contract for up of driven deposit low the digit Slide deposits mainly prior Note in of slightly to XX% XX% total year-over-year peso quarter. a

the to this granted quarters, higher moving of pressured Net digits on to the credit income new peso demand. loans, financial sequentially of levels a macro. Bank of XXXX peso preferential earning right peso XX% Peso assets shows compressed average repricing, government single quarter, the NIM NIM. in in volumes chart controls XX.X% total overall and rates the loan over interest including contracting bonds. several negatively and Slide of on lines also P&L together X. with mandatory stabilized to yields recessionary since The SMEs by of the the total reflecting Now increased bottom XX at billion, AR$ after interest first of to XX% to weak mainly has average regulatory government contributed how highs Loan offset share consecutive impacting the Leliqs, low at volumes increased Central quarter

our quarter of net lifting billion, XXXX March anticipatory deferrals billion X.X versus this prior Loan net Moving resulted loss quarter. billion the did in on end, to Taking AR$ of as X.X% credit anticipatory with quarter-on-quarter asset higher of the related the COVID-XX The an cards although quarter, rising we on provisions loan billion Keep our X.X% the contract, since with to from NPL X March. in non-performing amounted banks. NPLs. points By apply on the to chart total to conservative a of COVID-XX XX. performance June but loans levels. X.X end basis below this loans. X, to risk from information. customers XXXX of X.X%, by in cost corporate period and driven depicts provisions AR$ delinquency served other AR$ mind, were provisioning with X.X asset reclassifications observed quality X.X%, grace on by performing Supervielle, mandatory up The not March, is stance, which provisions X. for right ratio in this improvement provisions to Higher after update and Slide ratio, July. automatic quality page top an in of in we AR$ in we increased increased XX managerial the in increase On these Slide of At provide

July X.X% a loan single, in that lesser was much collateralized and of which from In NPLs quality, driven to retail by Bank corporates, as terms fully classified following reflects Central by a to asset customers increased for mainly second quarter, NPL X.X% the regulations. extent

of collateralized. loans non-performing our XX% are Importantly, commercial

Now on Slide XX.

last see has deposits thus remunerative the above time impacting quarters. deposits. restrictions ahead. Peso growing and On which XX, While today to by cost main funds guidance at same views the denominated side we expected we as been both been drivers inflation continued are below inflation, consumer deposits historical limited inflation, mix the suspended of loans. to on with our below remains the At business FX dampened but Note non-remunerative the growing of when four and lows grow changing loans, has remainder growing above, slide deposits case time, are the year. visibility in the share of for the commercial due interest rate, the but

terms peak the the the periods and expiration quarter, of loan asset programs NPLs In in in to deferral expect third grace we March. reflecting quality, of

our credit the subsidized be interest asset the transformation. to and And we on in XXXX remain rates the short-term the below monitoring expect of risk above costs historical loss administrative on remain expected loans. continue respect deposits are current but NIMs to addition, by We level quality, and With and above impact cost time pressured with average the of to of inflation by line comfortable models. several funds the factors, with deployment restructuring digital of we weak of in for and expenses provisions. likely rates margins, demand, impacted grow quarter cost levels Personnel

these excluding anticipated expenses items, are in terms. to However, decline non-recurring real

grow turn are anticipated line expected to expenses. inflation. addition, with taxes In continue impacting to are higher Fees rates turnover in in

Finally, we remain levels, liquidity at long-term to expect comfortable sustainability. capital and supporting

XXX% I capital earlier, mentioned against that inflation. of note our hedged As is

call on will Patricio, strategic turn our initiatives. please ahead. let who Now update the Supervielle, Patricio an me provide go to

Mariano. you, Thank

remainder years of X address loan results the You've expectations financial Mariano as by demand and by recession, industry pandemic, deepened our year, the we characterized the further of lows. to for heard economic challenging backdrop a drove historical which navigate

creation. value and Central decided Mariano time, transformation volumes also liabilities since and of As and regulations NIM. to accelerated pressure put continued prioritizing remote efficiencies the context, program same working. our assets on In banking have significant and increase XXXX adoption this digital the to increasing discussed pandemic long-term At prices we accelerate Bank on

We fronts. are working on three key

First, transformation Supervielle. accelerating Banco operational digital the and at

digital is Consumer IUDU, banking service. full our subsidiary Second, Finance a building

diversifying Third, Argentina. generation beyond revenue

the slides, and this a I description of line. our more well find In KPIs as these progress the as additional On you earnings our information and few time can presentation, next at transformation. detailed on provide the visibility on will exhibit of the greater digital of call initiatives back

Moving to Slide XX.

our the of the Let's of and group. start accelerating strategy with digital transformation operational

are goals twofold. Our

billion the does Banco and of loyalty billion to the expect discuss Note, XXXX. and of efficiencies, XX% expand AR$ resumes. billion preserving in remain At this X by deployed initiatives, next an real over terms, investments while approximately when year, close XX to transformation regionalization in AR$ to which be retaining relationship position same cost ratio time, this slightly X base, in billion in client AR$ a goals hand, accelerate solid X.X Starting I AR$ one X we investments were to will our primary anticipated which the of seek Supervielle. include the banking On briefly. are we with These not XXXX. demand year while to Tier

hybrid IT become data-driven First, to us data flexibility with to required time strategy, a to APIs the to lake digital market, and we and migrating to executing provide to enterprise are our development grow efficiently. multi-cloud a accelerate adding a

into of experience. at We speed a to advancing customers the transform superlative are journeys full our

has the reach vision technologies facility using our anytime expand Second, been of network and best-in-class transformed banking to banking. branch and SMEs everywhere self-service with

providing reducing headquarters in our our sense, branch rightsizing hybrid X are over savings network colleagues. are efficiencies. In among gradually with infrastructure the we moving flexibility this and corporate accelerating towards optimizing cost reduction a we our and million more of next for years. $X are headcount Fourth, model, space rental the real we our estate Third, workplace

that months bank revenue will cost XX. through and in turn XX repaid be XX Slide these savings the We to measures to growth, when Please while expect efficiency resumes.

step transformation revenue, retail are growth and revenue customers, of to while IUDU, of first in fee retail offer cost of our division, best construction platform up Consumer XX by best deposits. mobile funds the IUDUs individuals. digital of August lowering mobile-first the the for terms Finance In of and services on banking our launch savings the digital banking attracting for The goals digital stepping accounts

planned We banking six services. have next us looking months wallet, for US-denominated only products, an wellbeing for services. income pipeline investment the attractive allows This payment higher insurance, also digital addition of accounts move target with customers and to the

the Group, in Walmart Importantly, we with recently renewed conditions. under flexible financial agreement which Argentina acquired Narvaez operations more services The

please Slide XX. move to Now

diversifying applications. two of our through this Argentina, origination online products to goal US offer apps terms revenue In beyond we invertironline. Brazil, with businesses. through and in countries approach to select broker LatAm, is The excluding to IOL Starting investment mobile plan

the next to submitted XX investment Our expect a from the approval gradually where Bank financed subsidiary This recently as market to customers. will in in in to request digital is access by the to operate of Uruguay mobile be to the online for US key initiative first marketplace subsidiary. region fully trading Central a end of broker. securities months, launch high we a In has and countries filings expand limited

satisfy we this month, again will through the to a in strategy, core selling service are IOL and the Argentina, to concentrating third current region, individuals the be possibility the wallet stock our to of needs. deploy will powered plan This which Directors offer customers business, In also by and InvertirOnline in offered of aims cryptocurrencies and market in party. a crypto to same addition, we of platform. buying the crypto approved investments Board and asset tapping

Now to please Page turn XX.

of everyday countries services in BXBXC IUDU lives. aim XX LatAm which The to health years of in other the business nonfinancial we or provided certain We leverage well-being contribute a experience These their leading diversification for that as will in well-being under in service parties BXC our will of industry geographical by aggregator services of areas marketer Argentina. services excluding third and seek in customers our successful in format health, the ophthalmology tap to Brazil. over to among unmet banking dentistry, other and services that demand spearhead

As of we over In with health and the demand the profitability overall presence month. transformation in many to care Argentina services with continue two of region, adding pressure of and world-class term remain expect been closing, and we next near weak with needs the for agreements we by costs with providers plan have coupled required we working today, which impacted in have to investments strategy. reached one years, on the

We stepping digital to are anticipate clients, banking clients. our and new new up demands of while meet the transformation wellness strategy and also our attracting

position, goals. expect We ambitious and our while working have strategies and we streams in our Argentina. set workforce opportunities, achieve capital offering to diversify revenue pursuing savings hybrid a structure are cost our expand to to aggressively beyond flexibility comfortable motion With to a

ready call you. questions. we're we to the for Now Thank - are open

Thank of America] Gabilondo from Patricio. Instructions] question [Operator first [Bank The Ernesto you, comes

Hi, team. for and And first is opportunity. hi, good My Mariano asset all thanks good on question Patricio, And Ana. Thank morning, you, morning. the your quality.

are You in in so to potential in that the third numbers, Also are continued you range presenting peak. XXX%. presentation, presentation quarter, expecting and that the have coverage the NPLs to they of wondering you already for that just if reserve a mentioned normalize July peak your ratio NPL you're showing

delta level the of potential coverage year? Thank from third you. rest the you're it's a COVID-XX. the be expecting if considering the just of wave wondering would for impact what ratio And of So that reserve the of the

Ernesto. you, Thank

position risk your on - specific the Mariano let's restructuring me coverage what more the like happened fully state And going and basically anticipated. comfortable let the that this the we reviewed I say, constantly, question. please. and with is would reflects which in results to details program mainly quarter to models what is of continue we give to have answering with this First, are

NPL Ernesto. Hello, Patricio. coverage and give in you me ratio Sure, let Yes, US. color some regarding

of that done as didn't Thus been we regarding resume that know, have XX March, you That's in in the in Bank. ratio and Central ended figures managerial deferrals As June, far haven't than the more days showing debtors automatic of thus by some the fact payments as any being are past July. NPLs. entering showed NPL so why and information due April July

of months NPLs. increase haven't So or July X of in reflects little what one maybe X bit six all in this percentage month. payment you an point maybe a in that made more you're see year, for is seeing And debtors together for and them all

automatic and new September. we For these July the in would similar peak or that been we new quarter the of the after figures NPLs or quarter next referrals. that as as year, hasn't of end slightly be entering that originated the higher end August have of think third any as NPLs And July may then the the shown to in portfolio

this during And first provisions XXXX, month then have regarding we in haven't them two So is in as the being mentioned but increase we the are than should we specific COVID we presentation, we in figures, be coverage, seeing we released created July slightly NPLs quarters. biggest and higher the showing.

we third have that probably be fourth the during So mainly and the to third used quarter. provisions in quarter,

So bit level, XXX%, of the will coverage little be up. the year, a probably was as of that probably at on end it July

my your second transformation. question for much. digital then Excellent. Thank very you And is on

region to have We different traditional the digital banks banks. exploring seen in independent create

digital digital So initiatives the incorporate you such an and have explored have all as cryptocurrencies, idea you to those the considering in bank? online investments, insurance, independent you that IUDU other initiatives, have

answer you this do to Alejandro, question? like

that transformation. make a Right of first very goes our It's Supervielle Banco Ernesto. the is now, successful traditional bank, sure interesting a strategy through you, Thank digital our question. Yes.

initiatives, with that We it do experience this sure excellent a IT boosting are end provide through series our capabilities our end to doing of but basically, for has making to customers. we and

good been great and in reluctant made also segments. would channels are in which adopt do progress progress channels, to thought taking funding progress Notably, be even pandemic there. automatic the which the digital has on we their we're Grupo and retirees to to and are We have making digital There different consumer adoption from making that of segment, during the the reasons the what to deploys the the with Walmart make focus unit that on public. division business with deposits agreement Narvaez network standalone the capabilities sustainable, de model, our was with increasing great by

We and of to and bank IOL, of journeys the an are, throughout that integrated aspects however, on initiative, the companies other would different will customer insurance contemplate certain which like that working are ones the you online many broker, integrate ecosystem included journeys mentioned division. be

a long to you the them a assessing one it are possibility ecosystem, close an forward of So which is are yes, point digital say, independent ecosystem, we one bank. looking this is call we to this yes, into integrating wouldn't to But answer integrating out. I concept the

so you Thank much.

Ernesto. Thank you,

comes with next Gabriel Our Citi. question from Gabriel, go ahead. Nóbrega

everyone. the Hi, ask thank opportunity question. to [Technical and Difficulty] you for morning Good

you. lost we think I

Sorry. hear Can me you now?

perfect. Yes,

Okay.

digital we efforts investments So at see on question Pago looking up seeing Mercado are looking but the Argentina. necessarily really the just even you [ph] the they But I to the at I spur were know Viola here. my recent valuation as is efforts transformation, we well. that from were increased all of understand And starting we so of so thing, understand in wanted wanted and it? we [ph] how to fintech same also also competitive aren't I to you saw this understand more the We as acknowledge landscape how

second my so whether And seeing environment? of you terms you. understand here And wanted in question competitive just afterwards. were ask to I Thank I'll the

Alejandro pass - pass Gabriel. you, will I I again. this you. to will thank question Thank

It's actually. Good great a question Gabriel. morning,

different where profit value fintech do to for the and competitive have pools pools XX able to in in up, in Having have when difficult fintechs made we create has pick had difficult been found, but in Argentine risen typical at the two very They the banks that from of have free that The of you charge. is more that developing And to in been that you Argentina that, accounts, accounts integral the basically as sprung with that long and you some immediate other in scenarios. of also that conditions the you banks and the typically being of scenario world US available very cost competitive Argentine Argentina First fintechs of them been will the in have of cherry for now, what proposition difficulties savings have region. account start example, the digital profit and to they find reason universal including we said had for significant have maintenance had difficulty to other a asset parts of remember zero, cost the state. and These Bank the significant years detail, and relationships. have or reduced all, must side. have the lending that they've to the compared balances on have least the Central to transfers transfers been the at the look

as operations be large of be In with those otherwise, narrow in you and forward principality a the know, what Argentina digital be So a a very the see actually bank. going case through developed of we've will And in be Bank done by into moved a clients. extremely are of operating yet not have license creating integral an merger Viola, mode and requesting operations relationships And banks agreement we have Willow funding players the digital they and like proven. remains banks of other so to is operating still the of narrow bank. as in a But to those the far they profitable. profitability because successful amount to

transform a be costs, of marginal and we costs a And models providing very fintechs traditional see managed is there field costs what costs to for into acquisition expand. digital. is marginal to their banks, like that close significant for think skilling us is able we so and getting And evening traditional the banks scaling this acquisition to opportunity banks playing to actually and significant

In a figures shareholder I and been very last And your terms of is follows clearing platform there Supervielle progress don't we creation responded able US of banks for by to grow recruit MODO is the the successfully. a I've good payment is if MODO that Banco and a continuing doing sell, well. on a what has it been banks, Mercado recall, MODO. covered very as pretty a in recall that done and platform This, has X recall [ph] of group million launched the I Gabriel. is last merchants is MODO, know point, payments at which pattern Pago, to question, platform by I to call of might you here, its it's your if

a - they of Sorry, Concerning Alejandro. they say, experience Gabriel, - they effort. banks I achieved further with bit answer like far, I'd in to have have a seen the the little customer pure so have Argentina, been, digital the good think, let's

a is Argentina. they are digital the for in assets. no this that their So banks But operating have business, plus

so in So and lend to the leagues they Central on. only Bank, -

we believe sort are advantage last case, recently they we'll generation credit create in also because out for in valuations be like to have or I capability are that they in the we have we this raisings why already reason basically, or the fintechs beyond of IUDU is we of that deposits at task we're is that will will that attracting cards. our - the what have which strong because of customers also that. So we years, the that recent situation we loans, case be think, launch, launched assets, personal competitive of to Argentina. digital beyond on the This And we Viola, with a we easier - believe Argentina basically, I'd revenue assets the in is making we our provided point XXX,XXX the we an a IUDU. application where built to will do problem already and region, capability which, get moves with this we the the and have case over - better a for have IUDU expectations few instance, in banks, have is reflect, Concerning capabilities, operating why capital aspect have we might need move reflect businesses the we some believe that is they making. another certain revenue And to this they assets

makes That with right. you. don't I know billion. been completely agree has sense. bank you if All I trying guys of saw, New $XXX but valuation a

So exactly I capital you to the Just But And going lot here. here. clients I it's players. with other were wanted to are you have said seeing advantage coming over really say wanted client doing maybe a over of raise. a a just just the understand line allow how Are value I great just good to things think good digital months. to I that how well? engagement? products? follow really higher You you as moving gains on to in understand products into see you using you. trying launching up But which XX here, understand are recent the what Thank competitive these are understand XX efficiency if they you me products,

to Alejandro, answer that? want do you

Sure.

this we meters, is the what are have and satisfaction. call of in to square of shot investments in And format new closely. up, digital customer in as has that of the very NPS. in panning in track and self XXX this out We average, actually customer automatic from levels. well and adoption you're are our our driven And partial Things areas significant are a as customer we service to the satisfaction Gabriel. very that around at satisfaction lobbies. significant satisfaction retirees right, On used seeing in meters increasing question, great successful. which a segment, our increase square We a different very, is increase moving has the that which something increase terms Another channel do proven we of XX be segments including

a there recognition be been satisfaction. have the We that several change, And getting introduced very up in typically also this when has to having our customers it great picks in is mobile that a see also and changes then a app. We some configuration, but is usability initially which - is change proving better. there complain you to quickly actually booster about of pattern,

increasing. is engagement client think I So

We this enterprises we small explore medium enterprises them. on And also network a hubs some not a we small did to virtual of and as will for, proposition deploy seeing that of where continue and value this format, the experience have medium allow and in hubs including we kind are points too. we customer of very believe, our enhanced

you were question, Gabriel. addressed are quarter. publish we're investing and exhibits I've in as to There starting them your see we So help the KPIs can if results. that track some know we them every I don't

attracting another we as and bank, I in We particularly will management be is There's and funding important you me very and for are customers. our strong services development relationship building and your let individual strategy. a this very the which build working in cash answer. that know, of case, think our aspect Alejandro, - powerful customers, on believe which we in with

investment investment And This connected our an let's broker so investment we work be platform started that with InvertirOnline. our management our with that and ecosystem, company asset platform integrated to will say, will our with fund the connected on, bank InvertirOnline making for last so automatic, start have of exchange in experience instance, of, results stock let's or superlative the on. say, quarter dollar enrollment map provide to for and begin at of transactions the a this through will year and to

very going platform. an investment one think of is the very features and the So few And we also important. me, to will are forward, looking our And this excuse strategy. doing we banks of I with - part believe strong have also this IUDU is be connected this same a

really All is much. right, these new Alejandro. very clear, efforts. and This congratulations on Patricio, thank you

you, Thank Fernandes question. JPMorgan. Gabriel. our your proceed with next And Yuri, now Hello, question with from come Yuri

specifically guess more a also everyone. the Thank want potentially fee NII right, service-oriented good mix, Mariano, model, a more and I about hi, regarding right? well you. follow-up go Patricio you related products, I And investment morning, clear that strategy, more business. have digital to services, the it's to being a and hi, fee like the

the So percentage I like I just I things, you assume would regulation to are free requirements ROEs on also those in right? term only would can in have more mind. can how - to that's because like to what access strategy, right? in that, one not confirm not I lower you is right? maybe of first you're improve after confirm would will charge trying Thank I - here capital that, are the less Argentina because those is Central on kind because base I'm of if powers don't capital you on your the I long required You're to your But that regulated, - have I this. do allocation, know a So you. Bank also another like and to my guess have has but that's transactions, maybe that. question, more the where services of in of

an to Mariano, you answer on like provide that? would

Sure.

lot of at our level, as are in Right a initiatives, you net income. fee already place. new which increase the the restrictions bank basically they services, said, Regarding will we set now, have mainly

transfers, more see create restrictions all there's on been them further already ago. that fees of years don't restricted, So commissions much several to we on commissions loans individuals, to like like some those room have

as where that medical you services or fee like with So net is like mentioned, room non-financial of service more income, But our sale the on assistance. to increase we are environment. brokerage already we services see working

other That of the those complementary to impact will, or revenues having fee strategies and So as bank, deployment some net Argentina would customers these far thus our in increase for services the IUDU further it in beyond InvertirOnline for as income. sure, currencies. and with our we of

also, say would the that mean but Yes. I it that, now. Argentina - to in our And we the particularly of insurance of insurance to course. are - pandemic. was impacted, insurance with adding was by state business The to and prospects satisfied like are I - very we impacted

typical franchise. brokerage business, but going the traction medium-sized a is potential interaction, it part because Supervielle. enterprises more branches, of broker our in has we a of But And the had difficult strong a terms an people to this when In it reason, as insurance gaining for connect customers. is among forward was clients less Banco was this with of also huge

Thank you, guys.

think of trying a But for engagement high do that businesses definitely we not low to offering are we're of I fee looking a it that context looking in it's model a key has in CapEx greater the that of at inflation what too. terms are terms to purpose, terms generating these right income, to scale. and Yuri, and add products quite because increase is to cost vision, important in loyalty you that is and of some a off for in I would very feature the efficiency

guys,. Thank you,

half? going we we year? those second costs? seeing your make the Thank billion of this already And you the in should it 'XX? an happen, think second numbers to should impact we P&L, an for numbers are in see right, and D&A this are how the Should about also, X.X about to - How the ahead? capitalize investment all in those see the increase acceleration announced, in the this you be Just Like then capitalized the going we going plan 'XX, and numbers. to think to quarter should 'XX in Like you.

Sorry, you lost Yuri. Unfortunately, question, Could this we repeat you. please?

No, sure.

AR$ XXXX AR$X.X XXXX. XXXX, in investment plan X.X of AR$ and in terms an in announced billion billion real in you billion X.X So

you're are going your the Or directly going going see to how So to impact you I'm treat for think should to we numbers? how - to the this investment about Are plan? just from those asking Like capitalized? expenses? or P&L you they are be on going

again, bulk to answer lost Mariano, of want we your you do Again, but you this? question. Okay.

let question includes if treatment not me will your part you the we that's tell of you investment for severance costs be asked be what investment. the able Yes. That also standards. hear. another And investment that that of and couldn't But only accounting in traditional number to

and are is the in years. investments all to minor quarter, those everything not relates then the - to to changing are there capitalized. then accounting are the of between service those according a part that And the and standards be it amortized And - we model improvements all other incurred related was investments new where within that We that So will mentioned. branches XX% hand, Those being extended X in have also, we in to related severance developments. of XX% on capitalized. Alejandro

products. have to So investments those assets physical and do with

the Thank good with luck you, And guys. digital strategy.

Thank you.

We have I in - Q&A hear answer. we a our would read we the audience and this question received from Petri Santiago Templeton. so then with

contribute results expectation IMF on you mid the Do do expectations term policies? the agreement? more elections? economic you the about Would have to any potential have rational upcoming What

will this answer question. Alejandro

most some now, the the is and will today, an now, an against conducted that elections. on are is process pans show because victory Right mainstream rates be of we a probably obviously, impact likely fiscal alignment out way image is foresee in that of that. so first IMF, will this, before, the gradual rumors a the the will what the around opposition. exchange a President have the public incumbents, we difficulty the hope we which lines of somewhere the form there confirmation And adjustment, quarter not in I but of terribly with IMF addressing that of And use. have the policy that far an seems party year. would basically agreement, XX% we up X% from between into been official have addressed process said conduct come will this we have multiple could what this, allowing speculation There are be be But will incumbents. - those there that Santiago, Having around government to current and and no and would a the the stringent what that severe of think operating be saying have that his legal that the said policies polls some to question, are traditional there to come that something analysts the that come an difference that I have be agreement issue therefore, most the will with elections, but agreement Santiago. some some IMF the the Having next - rates the we your election the exchange favor to could into and right this basically that after is that, that believe this in impact incumbents seeing we between thought this or will happen.

Okay. have Q&A the is One So moment. end we the of session. any more this questions? Thanks. Do

session. interim, reached gentlemen, joining today. safe you, Thank for today's you more we you and of over meeting the stay of have quarter. updates end In We And appreciate your coming Thank may questions available financial you next business the healthy. to look the to we that answer ladies we any our months us question-and-answer and in So providing interest remain and company. forward and and have.

You may disconnect now.