Banco Santander (SAN) 26 Apr 222022 Q1 Earnings call transcript

Good morning, everybody, and welcome to this conference call to discuss our financial results for the first quarter of 2022.

Just as a reminder, both the results report and the presentation we will be following today are available to you on our website. I'm joined here today by our CEO, Mr. José Antonio Alvarez; and our CFO, Mr. José García Cantera.

will may floor session. have we all any presentations, you questions in their open for the and Following the Q&A this, over hand I With to Mr. will yours. José Alvarez, floor is the Antonio,

Thank Thank group X quarter our you I'm growing you, million in good customer activity, to meeting the the starting the continue quarter with quarter, where the start customer morning levels keep with million satisfaction. XXXX. Begonya. to base, and customers the to going since a have for us customer X activity this Good joining more morning. activity. first results, with customer the we everyone. of growing in March We increased more the This business reflect

goals, X the rank As you and know, we in in this top markets now. our in is NPS of one

channels the XX than While XX, March transactions pace, keeps and million adoption is not more a X digital pace. digital growing transactionality a and in good growing good at the digital the are million XXXX, at option customers, XX%, digital almost in

see growth being you're of translate As sheet the this balance and grown, and customer and deposits volumes kept into revenue in result this, both to we P&L. our going quarter-on-quarter a in launched our year-on-year, that

that when performance, year-on-year the this year. year, we versus was we €X.X compare don't first costs have The with results billion, last to that going XX% million QX restructuring it So attributable XX% profit bring underlying Q profitability. and attributable Remember profit. and we profit around 'XX €XXX the in

quarter-on-quarter, high our getting will ratio improve the allow inflationary and in below us efficiency ratios this is to year-on-year. we our XX%. cost On line inflation important do well particularly this side, with profitability improved of the unexpected and in We guidance cost to our remain environment,

the 'XX. tangible on to XX% went at QX return compared growing and equity XX.X% EPS with Our

in up the credit at stood credit quarter-on-quarter, €X.XX, whole at continue guidance We X.XX%. look we the second ratio basis quarter, something asset X% without QX of new value basis XX for dividend basis for risk share net generation, earnings and relatively XX% the ratio stable XX.XX%, like-for-like from sheet or like shareholders. NPL while from follow we and -- year-on-year, cash And that we off cost at I risk, dividends. the and particularly create tangible When share including buyback started to stays year. above this balance points that per going at go have Remember is organic like value equity X.XX% below to core accrual the a that. XX%, and to good buyback the far the capital our remains up The go finishing the X The 'XX was points points Tier XX -- XX basis minus mid-March. on NPL

So our going to P&L.

Let center in corporate points will profits. exchange is a offset that positive have our euros in expected euros that by have in me -- elaborate of to say hedging that current we due column slide, the or -- in constant rates euros hedging X percentage on partially in later the and third a you current play percentage X way, the remark points that the X, the X the more CFO negative

inflation. amount, extraordinary bank we on. no from at and the billion, see attributable the around a When As the revenues €X.X to underlying the and Europe, In in well, growing had outlook same we charges. the profit strongly elaborate below received I and later the are digital will XX% different Well, regions, around we earlier, the recorded XX%. America of also and than quarter, profit P&L average South consumer look I an regions, mentioned in the we are addition at that, lines of we year-on-year. more main each in America costs profit on North growing the

loan loss quarterly Consumer revenue on series I bucket, sustained lower profit what Santander reflects affected the later our minority growth, NII interest The you count, of see will provisions growth comparison We as following and know. control quarter-after-quarter mainly minorities. of is the mentioned, by but the U.S. acquisition customer quarterly the

seasonality on majority So to America, in in mainly in in NII. quarter-on-quarter, of a Brazil. Costs of to offset quarter income X% decreased fourth we the the performance due thanks in adjustment euros fee to continued to bonus XXXX. are countries, like-for-like the partly and core positive basis, X% growing increase, constant partially Q-on-Q by our discipline South

loss quarter-on-quarter in million. as Trends from up constant as better, €XXX quarter In provision in provisions fourth circa rates the by in I and addition, were impact the our were in driven euros than benefiting of said, FX the remained release euros growth flat higher, positive the year-on-year quarter.

mix Net So by income income. total income executed of in higher plus year NII interest XX%, into Brazil and fee Portugal recorded By when and XX%, constant X% disposals plus 'XX. X% accounted and Mexico, income high portfolio billion, in changes to in go revenue, ALCO country value-added we constant in in And driven notably revenues activity, hand, to amounted of we X%. QX grew rate, and U.K. in that Net the and constant and other was were rates billion. lower Spain ALCO plus services. by improved interest rises north due were affected exchange Poland, the products €XX by volumes by euros, XX% X%, on of line greater deep the significant portfolio

in the beginning, inflationary the have translated a we activity and all across mentioned all figures significant high increase in insurance fees. well, higher at I cost, You in levels fees inversion cars, In mutual the are the slide. premiums, in turnover, environment. world, activity a into as of Good working levels the

That's this than the And the is X.X% going second here XX%. focusing to achieved. terms make that points. improving is and particularly our efficiency in X grow minus to our important. sure inflation, are X in X.X% improved costs real to We main is keep One that we the that less

of go is delivering our difficult targets. our key as we by one this you As according in environment, expected, more to much we yes. When a plans regions, are in Europe know,

it's different but with reporting showing in true here far So we are the Europe, that not we are away.

in that I we in CFO Portugal the but is €X million think in In well North to the difficult more minus achievement. by already That X.X%. North and below much American progressing grow. affected America, somehow more plans a that of our be by U.S. deliver is U.K., very to high you inflation billion savings to and inflation. in we environment, growing cost inflationary affected €XXX Poland according Spain, the guide continue non-personnel and to inflation, going in well also both are good expenses in region [indiscernible], a are

our running XX% to And less quarters the a than higher on year to consumer inflation do plans. unions You've of players there. well, last bit Brazil I markets the been seen quarters control the difficult they South other in sector Argentina figure is inflation. growing bank But above same Brazil, above X Brazil X the XX%, was signed to No into expenses America, costs that in expect of world than grew back September with the translating where efficiency region the of change XX% agreement cost in the in initiatives to of is higher significant digital also in significant enter remain the the credit in well, where seems And from cost inflation The the growing year. has Ukraine. due results credit, impact last the perimeter is and some stable. in achieve. the and of indicators and last in line, our quality having the in in the high. pretty that

exposure Russia. Ukraine no to have We or

you basis of know, cost As credit, already our points. XX

last If XX at months, look X points. the the you it's only basis

normalize are Otherwise, coming ratio implications relatively later now the be QX. quarters, see in default. the and releases in the remains conflict. of loan reserves NPL situation impact that of the country quality duration like-for-like the of the stable. basis we the XX on review business and don't and current the The from understand credit can still basis coverage you the relatively the of new [indiscernible]. provisions X.XX%, geopolitical definition ratio, through NPL points come The As will and our performance uncertain, In after

solid. However, starting very point I should is that say our

great parts us So mentioned I the face diversification the the in to crisis. the negligible. the resiliency to enabled our is exposure conflict that

of basis relatively a are quarters, models results our went minor XX% the coming basis minor in to for it good quarter the markets and have regulatory Gross the basically us expected yen our we we allocation points We enough and achieving the growing capital, shareholder even below implementation risk In we of assets this measures points the the XX the the risk targets are announced will below we other of remuneration, impacts policy. capital basis had buyback scenario. points the good In maintain back relatively When capital for across our points capital payout delivered growth. meet we in -- regard, you. loan will just our credit in a of X% ratio, generation. cost capital our comes share accrual on and QX. basis the group of weighted -- X tools organic in very confident to the and of was new of that XX make presented to the organic and generation That's disciplined effects. focus XX to I hands

in our split do the in front our cost not is already keeps good falling assets buybacks. billion Our We XX-XX risk-weighted this future and equity return. the of The cover ROA remunerate is sign shareholders. XXXX. risk-adjusted share dividends dividend high delivering and policy of to The €X.X of is percentage X.X% the that dividends, Well, generate cash profitability. of in book QX a

speak. and maximum buyback million started execution program March we we under -- The share are second is on as with XX, of a €XXX

ratios, tangible of per back know the -- the basis. the on the and excellent a look X% see and you direction at As tangible net AGM. you the equity, capacity result, by a we dividend can in policy on €X.X our the Board was In stated EPS, shareholder both the value return to billion, capital in bank recurring yield. -- right in that our going When reiterate of profitability sustainable results policy share XXXX, slide, elation generate the total we in asset is

I commitments I ESG. to to strong like would highlight hand Finally, Santander's José, before to

our the that Green by where already our with the in we progressing You billion commitments XXXX. originated common XXXX have on been in slide since we how €XX billion have Finance, in we're different commitments

going this. demand are we and there good field, this in see to continue We participating and in significant is investment

system progress information order We allows targets. are developing in that track we an same portfolio we -- are developing important COX implement our this time, track to green products. also with starting behaves to here. need to an all asset that At relation our management the emissions. the tool industry, us in to in have Well, And a is develop we how

world that very the long-term with are are in -- alliances particularly ESG in mainly there These in progress know I committed have are how we You the micro the particularly. our target, field. are scorecard incentive space order we show commitments, progressing screen and have related with the targets, our we Latin included this the here But particularly also that leaders, the decarbonization target executives' we energy, the figures social in well, America. credit social the in to in referring And and this you in in we power active the. in you screen were make are in renewable with and line to signing goals The are targets. sector. in both

the José global So over and Jose I with regions presentation continues hand businesses. results the by to that

and morning, you, Thank José everyone. good Antonio,

and brief will regions, summary countries I to on move the will then usual, bit detail. to a discuss As more I with start a the in of

America, making the model. in a capital a We on in We tangible global and improving we and and XX%. profit, Europe, regions all developing -- We transformation in our In growth maintaining and of operating return XX.X% in a performance scale, of and common the refocusing is which a operating achieved volumes significant reaching continue X return U.S. our business we [indiscernible] to one double-digit on our of operating while a disciplined growth the position model, businesses. equity diversification the generated leverage are tangible accelerated strengths In North allocation. net are the income equity. of

lending Obviously, in South increased And America, on by bank, then opportunities, the digits of almost we of the regions. tangible new XX%. capturing enhancing and and and global XX%. In equity. with earned Wealth on almost to equity profits consumer investment XX%. business was growing return are of equity all number SCIB, this our XX% rose we return return connectivity customers consumer bank of and corporate business tangible way, equity a Insurance, XX% digital new on double an delivering on return sorry, And while achieved with a this -- the and tangible a Management

make in high about will XX%. profitability that equity to in PagoNxt, return minute, with a I talk continue progress tangible We car maintaining development the in around a our business on of

€X significant develop year-on-year. was So common improvements mortgages increased and X%, moving operating delivering by up simpler X%, quarter, a volumes. billion to consumer grew mutual a up higher Especially in up in hikes to model the greater rate in but NII good individuals, interest X%, strongly, funds satisfaction the Europe, by results reached experienced the business grew surveys and X%. in transformation X%, lending U.K. Fee customer in were Revenue We is was time. the up Profit XX% activity. Poland and volumes at income increasing same supported with

for credit driving remain meet the fruit normalize mentioned as equity loss the X%, continue bear notably provisions Loan of and XX%, most Spain. terms, X% cost rank before, went reached, to ratio as by plans up XX%. our net started down Our All improved all, across to in year. percentage XX.X%, X as the we efficiency year-on-year. cost targets real the in income countries, track XX% dropped to operating Return up in efficiency tangible points day on on to I around

planes Europe support our implemented donations as results, all regard, customers and in performance initiatives collaborated its affected Portugal the from those Spain. we facilitate NGOs In measures Our only of with stood and special out and help employees as for X cash chartered set war. transfers made refugees Warsaw not as this also Ukrainian such to by positive financial to to the but to provided refugees withdrawals, and the and for well

cost quarter-on-quarter lending, and the and the Spain into Revenue the in charges credit. we loss to year-on-year, the execution new cost control grew higher customers loss to loan supported the in and under X releases Going of supported by deposit quarter by would business pressure quarter-on-quarter enabled affected maintained credit Loan basis net 'XX XXX,XXX Spain, the the helped our quarter rose growth loss exceeded the a And first sales of by details especially quarter, volumes also negatively levels pre-pandemic provisions. in which comparison credit. and we efficiency XX%, of of income, Fee from the due be mortgage guarantee the ALCO We provisions the interest were XX fourth obviously of we to fourth percentage record which U.K. volumes, points, in credit, and drove which in under We change rose NII increased provision and our double-digit normalization bank in the level. of customer rates, is the lending and in quarter, GBP of cost had X%. -- efforts in dynamics. in cost better XX% lower following mix. branch. XXXX improved Investment by by comparison the billion remained much income revenue. comparison Bank from of doubled obviously costs with supported the performance grow by In first is was base in higher the first the points. to fee the consumer doubled quarter. cost by X.X efficiency the U.K., positive Profit income to a London compared in near plans fund operating around fee income. transfer which to loan In Gross The affected activity but Corporate expect keep very mortgage benefited the thus the lower increased

America. North to Moving

a value of efficiencies. position. operations commercial to generate in to Pierpont profitable Our is the basis, in improve progress doubled the higher, Bluestem strategy U.S. acquisition Securities we and creating Loans towards focus Consumer, experience, CIB growth U.S. Amherst On shares, and our core Auto acquisition U.S. first quarter, X% Mexico business along U.S., The was model while we to management the customer LatAm growth and and half outstanding simplifying our profit there our proposition a the we benefiting with to the CIB, across and continue Commercial, Consumer portfolio In Credit individuals by the Agricole, accelerate NII simplifying grew Santander X need to in of In a solid CIB increases disposal Management. in from will loans make competitive in recorded minorities backed and virtually businesses: pandemic. the wealth We before strategic our in Wealth in Wealth had like-for-like auto exclude COVID-XX [indiscernible]. better the business Management. profit joint X%, improve and and

period, decreased, funds During to shortage overall value auto high early originations in the while pushing of cost index the all-time by continued strong exhibit performance, the the to impacted Manheim increased. XXXX. Customer an semiconductor funds

a basis, by driven basically cost of higher On normalization loss in Moving dropped to loan to the the profits credit. provisions due X% P&L. like-for-like

XX% to recorded year-on-year We related the was XXXX. we at in attraction in in increase income. Due high this excellent first in successful 'XX, the revenues pressured repurchase We both the by also than interest great we profit a quarter, supported to Program profit in NII, to an share the of customer increase All and great quarter our Paycheck the rates strategy. XX% due had higher the more more in Mexico, quarter in had relative In all, NII the quarter quarter, in to very in due leasing 'XX. purchased an balances. delivered also a runoff were of XX% Protection a dealership normalized volumes and reflecting first doubling activity lease higher increase vehicles the fee returns, and profit, and of by level in rise of average net profitability.

loans we lower dynamics customers in business connectivity loss most focus South across attracting In in region. leveraging demand had our also X%, portfolio. due with in positive to provisions rose by both and synergies countries. recorded time America, new opportunities, and the overall growth strengthening on to driven in and good We Deposits deposits. loan performance lending individual We continue

In revenue X% customer with terms of especially and affected results, we profit the inflation, double-digit Brazil grew year-on-year cost growth, in heavily Argentina.

Although cost by driven -- Brazil, lower costs terms, total in higher Also in real growth a mainly virtually in were provisions had we individuals. flat taxes.

Bank, maintained in top inflation and Customer acquisition. attraction car volumes, digital initiatives. XX% turnover cost launched Brazil. lower in very to revenues trends and customer the in which credit. Moving year-on-year, rose up positive grew sheet, for grew we balance up and year-on-year, growth and several digits, XX%, Digital We XX% performance positive Superdigital had reinforced initiatives as In we quarter, Life, multichannel year-on-year our our was XX% deposits. customers below P&L, strategy. and position up our a strong as In double mortgages active increased also solid growing with and and maintained we activity expand with cost both we This year-on-year, growth In customer we strategic cost a of in in loans to we XX%, had a new Santander result, XX%, We And Consumer customer position. to the very In provisions X.XX%. enabled were very individuals. absorb Getnet. risk Chile, in the NPS, maintain great our and launching we Cost continue the auto. at stood to leadership us rising higher of the due

gaining Europe. quickly are market in We share very

signed new We subscriptions year-on-year, our We in year-on-year. all Wobi also new the Pago. leasing experienced XXXX, with Stellantis now markets over launched our generated strategic alliances in subscriptions. in launched buy solution in or and an XX% business We which contracts agreement XX% cars. signed up cars -- new having million which levels above pre-COVID growth XX% increased is months. later with Wilsenia, has in businesses we Germany, a contracts XX% in now used XX activity pay in Moreover, just in new X.X new new

strongly, share, obviously, income market and in increasing cars. in and are were Openbank activity new inorganic grow and Costs greater this to to mentioned, up fee global transactions. I platforms as terms and number We used growth. due both investment reflected in continued in And sheet leasing was some markets, of balance both revenue transformation customers.

more terms. increased costs these, X% real X%, less in minus Excluding or

We in credit the also reduction had points XX further positive quality in cost a with trends very of basis credit.

very increased a again, the very results Consumer results, XX%. overall, Digital the So excellent which Bank in good by quarter

banks Europe, Turning continue is Bank, to Corporate our businesses. in U.S. growth and Investment and accelerate Latin the leadership America our of to In to leading global one our in in consolidating goal become the investment

less comes in record our relative grew, in performance. globally our to Additionally, risk-weighted Management, led money summary, X than were to banks businesses mix group's insurance, our crisis plan and Revenue Wealth to year-on-year, one top CIB best profit new up to asset good higher as and proposition financial consulting addition on growth, a contribution WayCarbon, digital to X% sales, It market-related X% good on noting channels. quarter quarter remained from with strong sales sustainable and a high very completed private Management despite in a net with XX%. impacted XX% €X XXXX, Investment in basis. through increase billion Insurance digital market XX% named come from group Wealth 'XX, within of activity strong on up the thanks ESG growth activities, value-added the XX% the achieved leaders revenue customers. growth by our a the asset a history profit. valuations only and year-on-year. In non-related like-for-like firm. as had sphere, a was diversified we In value-oriented assets. to in to levels based business April previous return profit that In we revenue XX% and In flows attributable were rose sustainable our XX% which quarter. global Brazil-based We QX due Euromoney around leading total was very in global were in worth and of volatility, to contribution acquire of is revenue, in which already XX% the the up

PagoNxt. Brazil, to increasing our in Getnet first several the by merchant Turning In one acquiring, to by continued had very payments growth, quarter, of we drivers. XX%, deliver high and backed total and customers achievements And growth One main Spain, X increased our In trade, platform thanks connects to countries. merchant our strategy volume international Trade customer acquisition currently Mexico. in in activity also our

We continue to our services. capabilities Brazil. Cards, instant Spain to international provide quarter, revenue our improve between other global quarter-on-quarter payments card its doubled international in In I seasonality. corridors quarters. year-on-year is to to obviously, the affected like by real-time payments summary, in and in would coming efforts highlight We to launch the expand plan In

number group. throughout to first and Christmas, above strong we XX almost which and revenue, which a XX% revenue regions. -- working in is how the first We worth good the grow you had in was manage million in transactions year-on-year. Turnover see the reflected debit are We positive globally the increased still, quarter-on-quarter, Black cards Friday the performance through €X the to and in shows XXXX, cards the In mentioning This is continue quarter both well strongly. also billion, XX%. quarter reached of of performance Obviously, higher of seasonally the It group higher. quarter that comparison across fourth fourth quarter, we 'XX was. and very credit, had quarter

to revenue. we number continue grow to turnover and accounts of Looking the forward, expect

We Now million, FX the €XXX the Spain. we results. in operating those finish businesses Center. impact was to higher of which which a buffer reported by than the more by quarter me the recorded the results loss let were is with rates results tax offset in negative relatively also by affected attributable negative impacted exchange positive of high an also due Corporate the hedging of performance country's higher liquidity The obviously

we On back in loss the had it other recorded And provisions. we changes loan final turn to let now CEO material provisions decrease significant the and in hand, other no remarks. and costs, me for his a

Thank you, José.

finish you outlook we business. we are the to in Just the share the questions, quarters, for situation to me go into the developing account our let presentation taking this before with coming which

consensus situation, environment triggering As countries shifting we and growth of the And in in before will some lower the mentioned the war. central I are of reaction which rates an the environment an and a as environment is towards market those inflationary a this geopolitical facing a result in interest bonds of that of in otherwise others, high result be is expecting the increase to the increased. some is be case

I this, say, So taking of all things. account couple into a should of

Our starting point is extremely solid.

You the see the business. results, the you see trends in in activity our

gathering. customer our see You

a from very the And strong position. face we environment starting So solid. is this point

below at cost -- and think you a the inflation, need quarter. capacity customers Naturally growing attract profitable matching revenues first to this the as that higher in scenario, we to the environment, you're inflationary be, always, well going the looking in significant growth to rate, our showed big we uplift to provide business deliver more our So in a in can we continue cost. as We to

in control to the shared markets, are risk our tangible with in in maximize capacity customer markets continue that targets We guidance make right profitability based we the that and some with drive of This equity should to our the Third, capital. we strategy anticipation confident. to of the are make AGM below cost return we cost us and our efficiency, XXXX the you track in returns. revenues, allocation our and capital to shared improvement the our as gave cycle some in to achieve comfortable risk and in doing knowledge shareholder we with you, our keep both across me average and it on you

leave for it we'll we your the disposals here, now may remain at you So and questions Thank you. have.

Instructions]. first UBS. is our Ignacio coming Cerezo from And from [Operator question

Two things for me.

you lines guidance situation looks back is then. probably mean most one I the gave of of first Brazil. kind expectations on like it probably below the the versus has are December, The in deteriorated

basically how can And So information on in you information lines any can you actually, one X versus up timing, shared Mexico any if to update be Brazil? on expecting information, is 'XX main second one you interest, the shaping provide you're ago? incremental of the process months [indiscernible] in the the

Okay. questions. Thank your for you

elaborate expectations Brazil. last say I we should materially me our not than the had on that Let quarter. different in ones first the are

with in me you Let Brazil. share where we

back in know, we tightened September year. you as credit standards our So last

for feel line As portfolio a result, But with comfortable we the I less. year, whole portfolio growing inflation. in the are growing the our

bit or inflation country, more line a with in So around a the bit more. less, XX%, so less in

So expectation. this is our

collapse. were points, on you you percentage the significant customer NII XXX in Our and ALCO from basis full it XX the spread the other so naturally see points. is what back of increasing It's the very is NII. in spread rates this than -- the this on compositions And positions the NIM was ALCO the went more business, side, almost coming -- by the up offset what than more expansion combination, customer see, true that spread

the difficult optimistic the let No problems costs. I can So can me here. digits. revenue-wise, we control on seasonality some The been year fee we grow that say, And high have more to for on the income get digit, in there. to feel costs even that income, be the same, net show single interest double quarter whole

we're back the September with panel salaries this the to -- to to the in September. probably the agreement to year. in second, be And going increased going are get in quarter, whole to the trend felt inflation around the match growth, we're showing what mentioned, in As unions I able the cost exactly this I is XX%. for going the we and agreement we But see that down will unions with third

Finally, above going year, the you confident to And that or like see figure the an we you between the to remain the X%. match -- range a P&L, from through yes. we're that X.X% something in we in see to for be cost of increase whole risk the X.XX% X%, anticipating. were in went that quarter, going while I

say, a we're equity the around to growing nicely -- deliver going case deterioration I country continue In this particular This of at it return that war Ukraine. should view. environment, in good complex probably my a to on this, in that's or having in and which in the in more results should be when So say XX% should neutral north to Well, also positive Brazil although Brazil, a XX%, I regard. I Brazil. look environment tangible not and for

you I'm to the in not seem as as So about trends be pessimistic Brazil.

Banamex, yes. question, little well, add, second this yes, can to So very I

participating said said we're going -- to we of deal. analysis our the well, the our the So for in -- requirements we participate conditions, Chairman

public can I haven't Our is as And add conditions, time that but started we far as information I at the this have additional know. X nothing because information. than don't has the officially -- other we not process

from Our next question coming Sofie is Peterzens.

And could agreements on So in next my what your kind first also you be, new How question could are? U.S. fee just partner just You the the in agreement had agreements new remind order Europe. we should us would think year? you your if comes some in of of that Chrysler remind agreements. about us

the what So cost talk related low, if potential are? us impact from could the that, could the And of it in U.S. just below because remains risk you remind also basis you about XX points. very Europe agreements to

how the the loan expect you So my level in U.S.? do go to U.S. Brazil. second question would risk about back And then a we of losses And when think normalize? to should in normalized

of of some time, signs asset see Brazil XXX%. of we of coverage higher was fell the risk, and at terms cost to X.X% quality, same NPL in ratios In also starting higher to and but are kind

are bubble that So credit much? concerned so up the How given Brazil? rates quality how have asset about we you gone potential think should the in outlook about

for Okay. your Thank Sofie, you, questions.

first X The related with our with agreement Stellantis, Stellantis.

As with Stellantis. And I first I us. say, you should very an know, satisfactory relationship we thing, Europe, have in we agreement, reached say, agreement an for should excellent

and Europe. billion. agreement, As I Spain sir, going to with grow is number, result a Europe France, of Italy don't €XX in result a in of €X result -- portfolio billion to total in this extra a of add comes they plan this Stellantis company, an develop €X Stellantis, bought reached When know, we're going small Stellantis to The as billion, billion the going Chrysler billion, to something, €X an to with that as and finance billion them portfolio to main of our of you the a markets U.S., remember, €X we're we as agreement this in couple agreement Europe, is focus it the the company.

is While fairly small. this company

it significant provider the of we're company will Mitsubishi, as significant preferred continue evolves. other we're Chrysler in said having while. fast that a long last? on provider that, reached with It How We as going Having underwrite Mitsubishi. how long the become this, to other depends we U.S. the Stellantis to feel -- on the for originations going PagoNxt of agreement result originators. we continue a be As an to to with

certain I business going online going with car stable, agreements origination is to that the do car own. to in the space. relatively comfortable the we dealers, to car underwrite have our feel In originators space, We the continue with the have that market And remain at we're recovers levels. in near provided subprime I least the think the certain activity evolves U.S., prime level in traditional,

Chrysler. So agreements this in with developments I'm with and the front pleased the Stellantis

seeing in risk and cost the of low the on cost of U.S. cost in of back -- that levels, mentioned unemployment levels, the markets, car are of lowest not particular Europe at used price You the good any It's we one very Europe. of risk true -- the in here. and of the is development the risk

employment to So the I rate, me, KPI the is will here more focus is, yes. main on --

to go here more is to as comfortable as the levels remains the In are the risk market in low can as normalized stay and see of lower as In little car dynamics José employment in a this. back expire, markets And the changed back or I on refers U.S., feel and changed this current rate us go to the bit Jose already with you that the in the on. bit in in the continue sense to leases a our And selling lessors car that to dynamics trends. when U.S. So we market. back will giving is the the trend even U.S. the us it used special situation different. has the prefer going the of of has it's P&L. instead the today keep and this trends labor cost of even the the solid, long

on the and of lessors just the of prefer the get of right over gets But risk -- going to income themselves. disposal other the in -- in elaborate cost -- time. I reduced is as risk. a leases gains cars to because of not elaborate questions, The to the previous you response more I normalized the the keep cost P&L Brazil, making already just result not

You said guess of the mentioned in potential. to higher Well, outlook now based information of get cost I have for my the on NPL the coverage region yes. X.X%, and ratios, is I the best risk that a

significant out, last consumer income in questions. in as a So hope X we fourth first rightly pointed this were rates. to split quarters in combined you the here. the more, I year my Well, estimation had not result best answered advise this probably before of, higher decrease the come X same that position. us expecting and of is quarters reduce quarter, but and quarter we Nothing more your the we back, lending the disposable is that with I in the our

from coming Santander. from is question next Lopez Our Ignacio

have strong. growth been in on I the On quarter Just Spain, performance side two outlook in has lending I mean, questions. one

If guess, just question Spanish and also, [indiscernible] side. us on the a update I for outlook you the the on And NII rate could the a sensitivity have bit I domestically?

very that the going just changes just it's may, just in would we very a Bank? announced do Prime initiatives what of What Consumer a early on bit you of if I the measures useful. expect forward? bit impact it mean the expect elaborate perimeter in give should probably, of I Minister, the you what the we you Digital If from could If sense the or were could in but a yesterday be Poland by are posting

Okay.

probably question third a bit the information yesterday, early. The got is I

But than know -- department system, or our I'm on the space positive be share more, more you probably at challenge and So our the to will to for not guide sorry, Once weeks. happy elaborate days be to we with we but bit now impact. stage any early. the say can't coming views. trends this definitively I with -- the it's IR difficult a banking Naturally, this in will you more

this. income come significantly or well, NII are has And to sensitivity. come is you're Lending Spain, on one Spain, see. we'll this We'll quite strong the mortgage side, will the Well, results. net other been this you drivers. X stellar lending franchise main has harm X the growth, that measures, growth in the in market potential last the expect been quarters generation, that I quarters, results -- in last measures in and these do of not that We'll but On seeing back this see. the

CIB. we of, there the you active. are other been the also spaces, more comes middle strong side, were on would CIB And in mortgages elaborate, we renewal a from this? we were back we've market, energy X but sector haven't José see pretty north José, billion €X NII SMEs, the there. lending you and The where of the space particularly seen sensitivity. growth driver where these is In it's referring elaborate to that the [indiscernible] the referring we activity want energy, other on

of group we rate we Europe. should In in the year. million right sensitivity neutrality in €XXX The is curve, the in the billion approximately and around Europe be next Yes. rates interest points in €X approaching U.S. Continental second have the the South XXX are is shift parallel in and half basis million in rates positive now already in U.K. point after earlier, America, €XXX to probably the raised having the

Okay.

consumer about Finally, the bank. your get I was question, if

perimeter. Greece [indiscernible], market. bought what in company last the venture, You the a -- as was in way XX-XX, year, a have we've a the with mentioned are the miners others the company same leasing mentioning yes, Pago along means usual, changing in with also done we businesses. And are say a other from is will we developing we this Well, Germany, and with joint this the we cars of is the we hosting and importer And other the developments main you enter bought time business by agreements we grow perimeter to the can that business. at Greece, somehow is presentation, the business that in

from Our Carlos Peixoto is coming next question CaixaBank from BPI.

like there a Then are wondering the rising the obviously the front. some there? first year, acquisition, in any fourth I that you -- to would the guided you I see full related roughly going the XX actually in And references the for minimum quarter, question, of was be So basis on I keep outlook is the on that changes give have where of on points what points you color changes if quarter you Ukraine And the for on cost currently math, for see for you capital. guidance but an us be question if execution or in the some around risk you was the Spain. war question and prices, with believe would have mean on some in first on context second to level regulatory equity regarding that common in the basis energy year wondering my full in could the an would say, if the XX to down to impact that XXXX? pending the be XXXX? willing

new [indiscernible] cost I It's year. affect I in the the risk basis some this remain to we you, Carlos. for think going is last going said XX uncertainties guidance, on José cost going points. of this regulatory the we're the close the the outstanding not many impact still to it's yes, to I've Spain. scenario. true have behave. to basis that will in to of are well, elaborate expectation the going Having I even if XX we're expiration of for to our those change of or region risk materially and risk don't with volumes of the times this. Spain, I we of And XXX materially Basically, in to -- help the XX% in In about how in leave now cost our comfortable you that we Outlook have to in that remember in uncertainty, some that, capital been and for risk well here of talking Thank points. Okay. was said year come. got cost the you is will April, customers only the extensions whole around like outlook, that starting the this amount going risk of

Let we target, level. me minimum have a don't we is state for a such as our as but have level elaborate target on minimum your we have this a asking and -- we minimum to a level, don't be XX%

that to asking Ignacio. again, Banamex, now You're said remains Banamex. we Maybe we parent do and the in what in about company a buy issue the Banamex, potentially Mexico, remains. what said we in shares for that stated was was question plan this or in say think I not should I state I the to as subsidiary question we time, last

remains capital. buy So establish potentially in on do shares. you including to elaborate regulatory place, Banamex the want we not And conditions to José, issuing

models and the charges year regulatory quarter, this year, previous same basis XX of mentioned less. XX we terms this estimation, in Yes, in or to more points

little. very significant still know For amount 'XX, far any But very but today, it's we we obviously very, what away. wouldn't expect with is

expect do very [indiscernible]. the For first time, we

Our coming from Zuluaga from next Credit question Bank. Suisse is Pamela

ask a want follow-up. first to I

generation. again, you, would to to Banamex, without organic acquiring rely capital issuing If quoting in CT possibility be you the interested capital, on of were you

without upside still So such in the if One, the I potential come would divestitures? quarter allocating targets you for that of any the quite the payout currently? year, rate how interest Or provisions for high Spain year? do do may, the Around this you the are evolving? the in potential to so the around extension COVID some guarantee cost How Have risk kind another the about, potentially in year? of from more The have required rising an models? risk talking if give you could continues guidance do Europe. any the that seen prices the I book? you shortfall releasing growth -- the how from I this I far? change was mix funding questions. country to were cost there energy anticipate for see the with a any Or Do the And you risk. the of even weakness you cost were mix of was revitalizing this updates then, XXXX. at could than the the the so what below any impacting developing? IFRS had And Or offer your overlay, loan now provisions year? maybe understand last I'm pickup waiting the see guidance was sorry, the you macro see to far you ALCO some in X So is but case. was the color looking aim on which later at what in at you us corporate Have inflation disclosed may, one. change? interest the Carlos giving sensitivity Can segment you It's of perspective, lower line consumer and of end see for

Okay. Pamela. Thank you,

remember growing. growth think to on into going do you risk-weighted and probably capital into taking And is intention I'm significant. going And see was the no we payout may to this, well, with the be the we're account account on I there It's with policy again, to return that affect keep buybacks, in back policy and positive is asset growing in the payout of if I going shares, Well, generation, having this. was taking that's having war relation talk question. risk-weighted the capital shares this dividend the cash, Banamex, your intention the third public. year the with so the well, this me questions. for Let XX%, But yes? fairly our quarter quarter. equity So to X%, having assets continue keep of in change there, buying question the is that tangible Organic to generation,

mortgages the across cycle. the I'm consumer seeing and coming the elaborate corporate risk update, to to on sector activities, well, And Other I were you yes. X% to main the to Those can to Our growth Spain mentioned are of you M&A from sector, sector The going expect capital of is of on the X.XX% we the risk Spain, Cost book, yes, is I to the presentation. of to and strong. this not the much do changes. we general, in have seen are we which continue be I do mentioned the perspective, activity certain at Brazil, elaborate in of of at from of optimistic I stage. do where not significant. go what main the not that remain main tell sources the drivers I one normalization sector this and are back final areas strong you the mentioned energy-related seeing And energy ones demand on José. the infrastructure, accumulation and cost this X.X%. corporate also see I Those not the going And well, to on going as space. SME That's loan up we of The changes plenty the in you there. are our significant question. in see And the continue significant than that, at Carlos' corporate we're be parts, the you and the question, presentation, expected X trends confident moving be major demand And U.S. seeing the to the in below in back mortgages, are stage. be mortgages demand seeing stage,

Yes.

also already obviously, have again, is NII. had geared. So basis was it's these to rates, a Brazil, roughly, because in and going we through as the by, have least higher now, lower highly points we originally slightly but U.K. compensated had in Poland, time another XX increase it turn that already more a basis again, sensitivity at Mexico, is because significant where increase, And the for coming May. bit sensitivity negative, increase lower I countries positive. outlook But of are, XX points and goes in to that's in by two in we gave that we expect

Europe well, capture in in interest you're to positive to plus when negative with like going XXX%. you say relation Europe, you sensitivity, go should X.X%, territory, we I from minus that in and Okay. going the very -- are come rate likely from into X%

don't on XXX%. So to it's going I this if capture you're that. beyond Elasticity or X% will know going X.X% to space, change. be

high, is beginning, and that makes rate up to the at very as So to on the the and is extremely one but goes sense it's utilization, dependent sensitivity rate close high. is

U.K. the the least the if of Poland, points in at and beginning not by go XXX rates, but elasticity José Central start you the Europe increasing official already what change rate, Banco revision in keeps the is to market so innings that basis need, extremely is in away we start where rate, in high, changes, is As in well, at sensitivity happening elasticities and explained, relatively U.K. rates banking yes. use yet quickly to may this

shower sensitive, SME sheet all at asset -- on how that the think on in is to in and large space least you for tend be CIB know, to because the of tend be this Euribors mortgages our is because should balance corporate. lending extremely this the as the So that you CIB

So highly the elasticity from with sensitivity rates changing the increase central that keeps banks. to in rates along

Stanley. Our next is Morgan Serrano Alvaro from coming from question

questions, X think and follow-up capital. you said NII I I growth, on understood correctly, Antonio, José you Brazil think maybe you Brazil, confident. on remain got I single-digit X I who high on still if

to a Can comments. quarter, off sort Given the a correct, done, on referred I to on if follow-up significant should sort be difficult print. sort driving going recovery rebound? you maybe quarters. there's -- and that confident would capital, correctly me, to -- some be the slowing of mean, confirmed curves have have continue imply at can your in the of seems that's going that given And growth, actually you least With you've you're and to recovery most pulled the pretty capital few you minus that decent of that what grow. been X% quarter-on-quarter, I've again, QX of mentioned that to next still what

year, think -- Or up, in of at if the the do -- normalizing up thinking, management happen doesn't out you you you thoughts what and XX.X%, grow If or can don't do Board into you know, do or faster? it X I preference from come whatever, pay to you from extra of discussions Would with buffer your keep maybe some the our end it Banamax would end might top to be capital? -- M&A, you the there? but the sort is you think distribute would just you

Alvaro. Thank Okay. you,

elaborate me again in Let Brazil yes.

mentioned see you trend. sheet. balance why the I So do to dynamics I this in the

is spread producing quarter have customer know, around XX%, or year I one this now year. something like XX.XX% XX% that you the to have portfolio zero. went first of close around side, to revenues X €X was or XX% the on don't billion You up ago and And that side, in ALCO last from on the other year that

other one me is the to you gave is into guidance is the give what to account -- I the allow you. you take the two if customers, dynamics, So be ALCO to

see with So based forward dynamics you these dynamics the you line much on are on it from in before. much you from revenues I get increase ideas. where mentioned project increase and the how with and the the customers numbers customers I you can -- can spreads, in put hope helps to rates we these how you the what expect to the coming

in growth you seems we ALCO it's me case, than see I've is and well, well, portfolios -- Europe been capital well, I bit our is other smaller pretty we've And in non-assistant think our our capital -- the jurisdiction and is very base. the in good strongly nonexistent more in available impact based position generation. to sale of the in capital. that least, Second, seen what a other So the on And well, say in growing. telling on this pretty is yes? at some were we many good downbeat. banks impacting results that well, markets It's you back banks portfolio the this for probably And and capital, than I keep decent, decent, --

we already you. and -- expectation gave going capital guidance Board, And Going keep on we're impacts it's the elaborated with regulatory line year, year the not for that to regulatory well, of Discussion next also José generating in forward, the this impacts. potential well, transparent.

So the paying intention the Board payout, XX%. and go insurance, to intention health cash said, to we of XX% established an housing

when first to step, Board So expect will not the up the go I Board, from to me. up me this the asked to in you the it's only XX% Well, the first it. take I discussion is expect will this XX%. Board to naturally, is is But we to

up take the As quarters I to don't from now to when Board needs discussion two it's I know, said, discuss the place. probably, to is

next Filtri from question coming Mediobanca. Andrea is from Our

Back again but sorry, on it's a capital, clarification.

You are targeting now XX% CETX.

Or the it But maintain Should in NPL that? you to shares a XX%target, have kind case of you yes is and if the compromise given to question expect just the you IFRS plan be that or hard level. or change? just strategy quick charge please, the the from no. And is this included in that. subsidiary of in increase QX you an upside just evolution elaborate, could quarter Banamex? new genuine guidance macroeconomic ALCO along, at And in definition already you want on of scenario? taxes happened we issue or Second quarter? X If due a your one, what broader to very if have Brazil. have on your this it parent the a finally, the default target? What's to the could You would we maintain is or if do Is a Banamex at came

can I Okay. capital, well, On add.

do probably a expect case. what with with in be less in that wall moving activity the will we levels be established. target XX%, is XX% probably Naturally, too growing And bit board achieve -- and and going the to remains speculative. to the growth is otherwise Our to that the keep parts this the target the is the so plan growth we here scenario, this in would are line than we're current less

third this. elaborate difficult question, dispose if to You're We capital. tools securitize. what can to can have things, many happens do our asking we match happens, We the okay. well, afterwards, But We a something the on can tools, assets.

Those So ratio, more the for have we advisable is elaborate intention payout we forward issue to we convenience the and that our commitments on shareholders, the is going that this payout on stance capital shares. an to are the not a have, go can have when to this. and you higher

new they up the we don't you call -- outlook need one we this When scenario, that, euros, or changed expect X this review cost that years, like that when material The something [indiscernible]. charge a is something have expect nothing that. the of know charge taxes. affect the own In of over do market or that last you they IFRS we happens, sovereign free risk. funds question, quarter-on-quarter, year. dividends [indiscernible] pay I equity don't plenty is they this but how Brazil, material to parts pay the of moving there. interest dividend this capital GCP like couple taxes, And not a apply Second there. well, charge, for is Naturally, what our main special

definition quarter, Brazil. basis of in the the Sometimes I NPLs, the basis we quarter, [indiscernible] in know [indiscernible] is in have that in everywhere, default called gave Brazil, sometimes XX but give much the and I reduce don't so Brazil. for remember how well, for I particular XX mind provide NPL, was, you in it XX was probably NPLs in impact the this of Brazil NPLs of naturally, it affect don't how new points IR in points, a quarter. if happens group new that the in this fall-up -- this with you the happens number I you what definition including And much is one Brazil. different can you in

Riquel from Francisco from Alantra. question next is coming Our

also my just on ask mortgage stronger we business. wanted questions I Most the very answered. I of for volumes thought, that than are have low. U.K. to understand but are spreads lending been The the

NII the overall U.K. you front mortgage on the book, in the update new business? the If of and dynamics back profitability book and can in guidance

of see, evolving Okay. start spreads mortgage of the your and a U.K., the well, Francisco, go you that, has been in back the positive news in on Thank new for NII the mortgages last swap couple the the you, to to produced in relation rates in we mortgage, into on expect the way translation this overall, question. said NII. of the when as up good rates NIM volumes, quarters volumes, the good mortgages. do new the some of continue attrition in Having the increase the

this in grow to expect probably, we mid-single U.K. digits to the continue to in grow We continue Low line. expect to NII

positive. are have in not So show to okay? that the we rates, So that naturally, is starting On the of top changes have you to up. while you rates, sensitivity this,

So it months the the until well, first increase takes less in goes in December, rates was, or this P&L. if I remember more into X

another So to increase is up. in show we going rates saw that

what is probably side. on the an yet traditional is not now is going plenty the see elasticity So in affect in to liability on liability may side are the U.K. well we that new where of players the will happen there what ecosystem

happens, the you, is immediately we're doesn't This players it bit see have We'll going this growing The at this transparent fear participants general, may -- this. I with an for just market constructive back market stage. some keep change a transparent -- -- So be unknown going flat outlook that there costs. of with a XXX% to to aggressive in this we're is this on the to But higher feel rates. if -- happen. very

in U.K. the a going trends we're good So to have very operationally,

is Cobo Societe Our Carlos coming next Generale. Catena question from from

but around other expectations basis higher And of points, point the that still that of gradual Shall basis risk. guidance in should the have on Is that the in of my been it's Brazil? other couple cost loan you XX risk this provision if the after is parts the converge driven to remains XX below conflict cost in main Or quarter, is is risk driver? of answered, XX moving losses that the kind follow-ups higher That of [indiscernible] How the guidance? much have your the Most by also, increase basis used year. XX, one, are I haven't of Ukraine. XX revised of you the guidance point slightly left? I to The that provided expect that really this a a remember. quarter? questions cost And And you have for we lay specific target. full

So We're risk, going basis points. X%. This to below. to cost close this the going we cost of going expected our in to is using cycle, we're remain the across the guidance the XXX we're what of expected below be Of be elaborated is approaching of expectation on in which the main trending risk. we I are in Brazil can changes. Spain up. Those I up risk. trending parts elaborate And U.S. trending that of explain the that the moving this already said, this. cost expect markets -- down. for

the provision overlay. see You

that haven't much. used We

telling So here me there. than less €XXX they and million are that

where change. do losses that head before, in going the macro necessarily in need said not macro. the But as into run lease quarter. to not used unexpected exercise the X, we basic in remember we to I But scenario new IFRS we material deal this expect when update So this we're and

Quinn Daragh coming Next question is from from KBW.

equity, in why could think capital a as there in the the negative from just was et then impacted bit I improvement -- color the Spanish about market revenues. question quarter? but to that was comprehensive portfolios, impact and you billion, more Maybe quarter, parts translate where moving curious in question FX First on on valuation just provide improved or by other cetera, they improving a in capital how €X.X I valuations? adjustments of an income, bond little on didn't which then the second And around into

this expect some to good on growth of which in maybe very Firstly, delivered normally the QX. fees, versus relative quarter we would QX seasonality

that remainder just is of is doing And a of you business. growing little a fee provide sustainable you're of the for level So what of year? bit color the that if growth could the

FX. is due to the Valuation

to and here So the main a this beginning, share valuation due effect But to FX at were. played the net we'll go the And tangible significant the -- -- equity. back affect per changes the this role changes driver you this the in is the as and I explain FX. the where because naturally mentioned asset the value

you this you impact As in our on work, through elaboration that against it, had know, transactionality than almost grew has business. mentioned And you were the than IR currency every mentioned, you QX. QX, was depreciated due significantly better CIB the expecting. which specific QX details need but happy this euro to you to that and Well, levels Fees, also and more department. that we do better expected seasonality you the fee mentioned was income and

activity, You our business, fee of saw the CIB going investment also The X% is very results. corporate banking growing nicely. income

gathering Our that should as is Also, are of And quarter-on-quarter CBI for asset of has and CIB digit. management business good -- been XX% wealth well is growing And quarter, business management generation fee our the performed years. and a and [indiscernible] not income mention income wealth in we than the the growth it asset so and traction up business, fee also due couple I that business our very is it results gathering the good the to to feed applies did traction, this this got. and generation the double they partially, less on well. that was very management back went management

with impact the in it sale to the regards was for X available capital And X, quarter, points. basis on

basis the capital portfolio points. on So was impact X, ALCO X

Autonomous Britta from from coming is Research. question next Schmidt Our

Mexico moved, to months sort for do rate coming you with when theme Just the of that? our And we start Spain back having XXXX? seeing planning impact XX what And rate have in the rundown a can in U.S. will expectations incorporated well? Brazil, as for maybe your the of give months what you XX expect in you U.K., already us you maybe

memory, billion Spain. mortgage to let We our provide Okay. Euribor, effect like the Spain, do XX-month portfolio is In me speak in in our €XX one, information on Euribor book, my that this. of the

and So to takes -- €XX to of this Euribor apply when it months, of X year. portfolio we affect June, X the months, months of renewal on the billion X Euribor the a before April

like €X is [indiscernible] something So far amount billion or that.

the months. Euribor Euribor in is more this So X sensitivity are

the is the less of going but you go Spanish in in related months And see Euribor sense So to a effect billion, another the give billion this X asset renewal, it's companies depends in book. to the more in €XX Euribor you sensitivity €XX start to don't this or on when up.

with countries, data. we You other also mentioned provide you the

Chile bit clearly, Mexico, toward more Poland We a high Brazil, And the is including much negative Europe, seeing are and already. geared are rates in we is area, U.K., difficult. and in Euro that

inflation much way with tend specific in a between trade another [indiscernible] on something rates is have We it inflation a bit a nominal complex. another -- depends one in volatile. other, in is do that fairly And going to in add, have you But when general, more the way so but maybe offset to quarters, José? quarter, and

from de The from coming Santivañes is next question Barclays. Gil Fernando

expect portfolio. I up? how I you this the have portfolio. update question And the up has outlook this that the just if see gone among billion was your this wondering have can size by I strategy quarter. if to you you included provided. do the far European on one €X is ALCO forecasted up? in And When that you go can go more

stage. euro have don't this portfolio We at

I We €X in billion have, think, Portugal.

forecasting, Spain. portfolio. in And any in we ALCO nothing in [indiscernible], not are counting it's our So

in euro increase rate. to in referred didn't already any of we ALCO exchange Antonio terms José in country The again, size quarter. the And the the is this, increase portfolio because

last Creelan-Sandford Jefferies. is question from from Our coming Benjie

Two quick growth and questions lending revenue outlook. on

more market change the whether I the in whether looks to expect just in the European and was this you the through system. wondering book restrictive consumer on mix Brazil to continuing all, Brazil, the kind of the of versus you're year remain second are the to And below you aiming of it First rest going like grow of business. was forward?

seeing this growth unemployment consumer year? and in but inorganic loan a from the risk revenue for expect levels through inorganic the do lead about in about the a pressure of time? obviously indicator You've being trend of outlook you at to inflationary business, perhaps point in aside opportunities. opportunities the that are talked data, demand important How what talked very rest the leaving this terms you customer given we

Okay. elaborate We're standards. see till are Lending in point in we going as in stabilization long to lending where Brazil, we risk a relation the yes. our remain as the with premium, you

case, to So risk part if start that If year. last we against have we the stabilization we we in in are quarters right, the to of were may premium. expect the But this to become next more confident strongly change X the my the data, grow maybe our is -- I'm at vintages, to stance behave vintage look lending how coming -- the the we do they how expectation, look you we at the Brazil. consumer need is sharing towards with in our and until lending

other know business inorganic. consumer don't well, mentioned opportunities I we add do from at that in is is this question our new to other before inorganic, a aside when that you portfolio. The were I a Europe, OEM deem how finance

happen. this You you is as very inorganic may organic. likely or tell continues can I to deem What

many opportunities going significant that to are we are are likely expand there. we to partner capture So And share. Europe of into gaining very for OEMs we're a and willing choice

from that new Well, or Aside is think weak. how you is The cars. see supply organic as is we there the know, other, may demand? customer do some in that, inorganic, you scarcity

seeing this stock the are in We finance.

This or dealers, Our stock now finance normally is in Europe the new the tells of the stays at less. supply/demand situation stays for this the about €X industry. dynamics billion car X/X with cars. This in you of

what supply than cars, restrict the to is When more origination volumes the is the there we there, opposite is demand. So used happening. go

So strong. is -- up strong prices prices the went due up pretty the demand origination has there, to and and been demand our went

how position the not the opportunity that our in in importers, you only to Europe. time, the strong -- But but If we in Chinese on the particularly traditional leader the while to there. the which look markets, in Germany, see Germany. OEMs okay, in remind of was to is recognized, we main grow and and coming the do dynamics all seeing. speed XX%. The expect going and the I our for at And the market plenty new car keep best share combination in particularly car are same gain the a bit, market in the overall, used this origination, that Those operator the are us market are the sure. business share. When is recognition many the are that pretty associations, of volumes. the That's going market dealers is origination do we I -- Germany, to in decreased but tells of on in agreements we cars parts than of moving depends with grow more This through for I reach sense. is you grew a agreements market OEMs, lending Europe And new at at in gaining our back this auto quarter,

that's answered hope I my expectation. So your I question.

that the Is last Okay. question?

was you. last Thank Yes, the that question.

Thank Bye. you being all you there. of for Thank you.