This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.
spk06: Good afternoon and thank you for standing by.
spk09: Welcome to the first quarter of 2023 Earnings Conference. We have the speakers for the first quarter of 2023 Earnings Conference. Our speakers today are João Victor Menin, CEO, Alexandre Vitio, VP of Technology, Operations and Finance, Helena Caldeira, CFO of Santiago Estel, Strategy and IRE. We advise that today's conference is being recorded and a replay will be available at the company's IRI website. At this time, all participants are in listening mode only. After the presentations, there will be a Q&A session, and in this session, we ask you to write your question via the Q&A icon on your screen. and he announced that you'll be able to ask your question live. At that point, a request to activate your microphone will appear on your screen. If you do not want to open your microphone live, please write down your microphone at the end of your question. In this case, our operator will read your question. Please note that Observe that there is an interpretation button on the screen where you can choose the language you want to hear, English or Portuguese. Throughout this conference call, we will be presenting non-IFRS financial information. These are important financial measures for the company that are not financial measures defined by IFRS. as defined by the IFRS. The reconciliation of the company's non-IFRS financial information with the IFRS information is available in the appendix for the disclosure of the results of the presentation of the income results. Today's discussion may include prospective statements that are not guarantees of future performance. Consult the disclosure of prospective statements in the income statement and in the presentation of the company's income results. Now I would like to pass the floor to Mr. Santiago Stel, The floor is yours, Mr. Stell.
spk10: Thank you, Operator.
spk09: Good afternoon, everyone. Thank you for attending our first quarter 2020 earnings call. Let's cover the agenda. Let me present the phrase that summarizes the results of the moment in which we are at, summarizing the results of the moment in which we are at, from solid foundations. This phrase captures the essence of who we are and where we are today. to give more details in its opening. On page 4, I will present the agenda for the day. João Vítor will then start the presentation by talking about his vision and the main achievements of the quarter. Then Alexandre will cover the credit engine part. I will present the financing capabilities and the transaction platform, and Helena will talk about the financial performance part, and João will then finish with his final comments. João, you have the floor. Thank you, Sanchi. Good afternoon everyone. Before going to the details of the quarter, let me share my vision for Inter on page 6. I was reflecting on this, considering that we had the fifth year anniversary of our IPO, and since then we have been able to attract management and what gave us the ability to have the best super app in the americas and the best super app in the americas allowed us to build a unique deposit franchise that quickly managed to reach critical mass in the Brazilian banking system the result was a strong balance sheet with massive capital and liquidity and all this possible for more than our 26 million customers. And with that, also through an incredible journey of innovation with the creation of solid foundations in which we are today. but as with everything else in life, we are always developing, evolving, and with the need to adapt to the contexts in which we operate. In the next slide, I would like to share the way we are then operating the company in the next five years. Regarding customers, we are adapting from a massive growth to an approach to growth and engagement. Regarding loans, instead of just being directed by the market share, we are more sensitive to prices. With regard to capital, we went from a phase of implementation to the tactical use of this important pillar. With regard to efficiency, we have a concept as a result, and now it has become one of the most important guidelines for our business. With that said, on page 8, I will present a vision of the value that can be produced with this strong harvesting approach. In terms of deposits, we increased our market share to 21 BPS, reaching 3.6% share and sixth among all Brazilian banks. In terms of activation, we increased 50 BPS and now we have a record number active customers in our history, 1 million new active customers in this period. In relation to operational leverage, our efficiency ratio reached 62%, impressive, in this tremendous discipline, and re-pricing our loan portfolio also allowed us to increase the MIM to 30 BPS in this period. We also produced profitability, which led to and finally we conclude the quarter with 23% CET1, which according to our estimates is twice the level of the top five banks in the country. With that said, I'll now pass the microphone to Alexandre, who will then explain our credit engine. Thank you, João, and good afternoon, everyone. I will start talking about the growth of our loan portfolio on page 10. We were able to start the year with 20% manual loan growth, growing 5% tri to tri with a portfolio of R$ 24 billion. As you can see, the growth was with the main focus on the lower risk segments such as FGTS loans, increased 58% in just one trip. With regard to credit cards, we grew by 6%, reflecting on this more conservative position of non-quantified credit that we had at the beginning of last year. With regard to payroll and real estate, we continued to increase will evolve with the repricing initiative that is leading to much higher profitability levels in these portfolios. In addition, in this quarter, our financial data will also include the portfolio that will be divided according to the revenue, according to the product and profitability of each loan. The rates increase for all products as, of course, o nosso portfólio fica cada vez mais reprecificado. Observamos que as S&Ps tiveram impacto nos estratos também devedores de janeiro e fevereiro. Finalmente, a lucratividade anualizada no portfólio aumentou de 20,3% a 22,8%, também impressionante. Na página 11, vamos destacar The metric, the quality of the metric of our assets is in excellent performance. Starting with 15 to 20 NPLs from 15 to 90 days, it isolates the impact of the growth of loans, and we were constant throughout the quarter. In the 90 days, there was an impact on our loan deceleration, which was a year ago, and then increased the rate by 30 BPS, according to the general market trend. The main driver of this increase in NPL was, of course, inadmissible in the old cohorts of credit cards, including at this point a graph that shows, then, the NPL of credit cards per cohort. We see here a consistent improvement in each one of them, which is a result of both our choice to be more conservative and also the improvement of credit underwriting, and we finally achieved to publish a 1.5% NPL formation, also aligned with market trends and our past performance. To finish, on page 12, we will show that our risk cost reached 6% in the TRI, and this increase, as mentioned earlier, is mainly associated with the older credit cards cohorts. To give a better idea of this effect, we included in this slide the breakdown the expenses and provisions for each quarter, showing in orange how much is due to the origin of that same quarter, compared to how much came from the portfolio of previous quarters. This shows that the increase in provision is explained by the older cuts. Once these non-implemented loans of older cuts pass the 360-day mark, then they are lowered and the the NPL ratio, then, and the risk should improve. And finally, the coverage ratio, it was constant, 130%, with an alignment with the NPL formation trend. I will now pass the word to Santiago, who will cover the part of... of the financing platforms. Thank you very much. On page 13, we see the evolution of our financing base, which is one of the main competitive advantages of our platform. Deposits have grown by 13% year-on-year, with R$ 30.8 billion. Comparing this number to the loan balance described by Alexandre, we see here Here we had a rate below 100%, quite significant. It is interesting that this quarter there was also an increase in the market share of deposits, reaching 3.58%, that is, it is among the sixth largest, it is the sixth largest bank in Brazil. We have here a highly fragmented base of deposits with more than 12 million customers who trust us. We are happy to say that the financing course continues to have a good performance and the cost of the industry's best financing, with a cost of 65%, with the CBI percentage, even with the seasonality of these deposits being more adverse in the quarter. We are able to get more and more shares, and with these deposits we are able to to maintain our strong competitive advantage. And now let's talk about the main issues of the transactional platform on page 17. As João mentioned, we reported our highest level of net new clients in Brazil, adding one million this quarter. of clients this quarter. This combined with a lower number of clients from 1 to 6 million, showing that our conversion rate to active clients improved significantly from 59% to 59% from 38% a year. You can also see on the left side of the graph that our activation rate also showed strong progress this quarter, a dynamic that is the result of the effort to build new activation opportunities as customers navigate our Super App. For example, we implemented our personalized version of our Super App along with other material improvements in our user experience and interface processes. Our focus is to add a high-quality client base, continuing to optimize our CAC, which decreased to less than R$ 30. With all this, we see that our profitability profile and our CAC investment has really increased significantly, because we have better understanding of the behavior and preferences of our customers. On the web page, in relation to the transactional volume in debit cards and credit cards as FIX, we reached R$ 181 billion, which demonstrates our very strong position in banking. In relation to the volume of cut transaction, we see that the most new ones reach higher levels than the older ones, because we have better quality clients and we also have better engagement and activation campaigns. On page 19 now, students transact more than 180 million per quarter in their daily banking activities, with a greater propensity to adopt our transactional platforms at InterShop, we reached 2.5 million clients who traded throughout the quarter. That is, with our e-commerce, we continue to increase our net take rate, which is now 6.5%, which is our highest level. In Inter Insurance, a similar pattern occurs. We improved our upselling and cross-selling initiatives to 1.3 million secured clients. And finally, at Inter Invest, we have with a strong adoption, also with 3.3 billion customers, with a level of 168 billion reais. As we said before, they are high return on investment products because they do not consume capital. On page 20, we see our newest initiative, which is Interglobal. which has a much higher performance than expected, starting with the number of clients. We have approximately 1.5 million clients and we started just a year ago. These are clients who have an account and have a number of routing in the United States, that is, really bank clients. Compared to other new banks in the United States, we are at number 12, the 12th position. The clients, then, they trust us, they transfer to our global platform, and we have more than $140 million deposited, more investment. And to achieve this, we are also replicating our Brazilian offer here in the United States, with minimal investment, leveraging our existing platform, our learning curve. I will now pass the word to Helena, who will talk about the financial performance part. Thank you, Santiago. Hello everyone. Let's start with our financial performance on page 22. I would like to highlight our revenue growth. We recorded R$ 1.8 billion of gross revenue in the quarter, which is a run rate level of R$ 7.2 billion. Percentage-wise, it means a 40% growth year-on-year, or 23% of annual growth. in relation to the financing cost base. This dynamic is mainly due to the re-pricing of our portfolio, as Alexandre said before. On page 23, we can see that the ARPAC In terms of cohort, the cohort continues to increase over time with new cohorts that are now performing better than the old ones, which reflects our improvement in engagement and also in the Cross-Selling initiative leading to higher monetization.
spk00: Jumping to page 24.
spk09: On page 24, we discussed the evolution of our margin of interest and we also saw the effect of our pricing strategy from now on. Starting on the left side, we see our NIM of 1.0, which considers all portfolios, including receivables cards, that do not accumulate interest with what is called saldo à vista no Brasil. Com relação aos trimestres, o NIM de 1.0 aumentou 20 BPS. Do lado esquerdo, vemos o nosso NIM de 2.0, que considera apenas o portfólio de juros. E com essa métrica, a gente viu um aumento de 30% de 30, desculpe, BPS comparado ao TRI anterior e um aumento de 70 BPS comparado a um ano atrás. Vale a pena notar that the growth in financing is clear in relation to the most expensive deposits, that is, having this increase in NIM in this context is a testimony of this repricing exercise that we are carrying out very carefully. On page 25, on the expense side, we register that we believe it to be a very significant progress. Our of spending, then, decreased by 13% compared to the previous quarter, showing a nominal decrease in most of them significantly. In particular, personal expenses decreased by 17%, despite the impact of the annual increase of the fourth quarter, which is the impact of the decision. The other lines are under control, reflecting a fairly robust focus on spending management to lead to our clients the best and in the most effective way possible in terms of cost. On page 26, the improvements can also be seen in our operational leverage. The evolution of our rate of active clients per employee is in a positive trend and has accelerated even more this year. We went from 2.6 thousand to Clientes ativos por funcionário atrás a 3,5 milhões de clientes ativos por funcionário no primeiro tri.
spk07: Consequentemente,
spk09: We reduced the cost of service, which is now at 13.8%. Finally, I'd like to highlight the impressive improvement in our efficiency ratio. This is a result of our re-pricing strategy and also the cost control initiative.
spk05: We reached 62% in this metric, with an improvement of 9 percentage points.
spk09: This is a strong sign of our commitment to our five-year business plan, presented in the last Investor Day, and also emphasized in the last Investor Day. Moving to page 27, we recorded a 23% CET1 ratio a CT1 rate of 23% in this TRI, which is the lowest level of capital consumption since our IPO. In addition, we consider the impact we expect from the new Bassem rules that will take effect in July of this year. Our CT1 rate will increase by an additional will increase by 150 BPS. Finally, if we put our capital in context, which includes, of course, high-quality assets without any hybrid capital instrument, it is clear that it is twice as big as the average of the five main banks in Brazil.
spk06: On page 28, I'm going to talk about our profitability profile.
spk09: Net income continues to have a positive trend, with 24 million reais. On a pre-tax basis, we ended the quarter with 6 million reais. How long are we trading underwriting? I'll pass the word back to João for his comments. Thank you, Helena. Well, then, ending on page 30, I would like to conclude by saying that, as we said before, we are now gathering the results of our solid foundations. For all these masterpieces, Virgil, encouraging improvements in terms of market share, customer activation, operational leverage, NIMS, and also our bottom line. That is, it's the best year we've had so far. And last but not least, I'd like to thank our amazing team, who are always motivated, engaged, and always very excited to continue with us on this journey. I thank everyone for their presence here at our teleconference. Operator, we can now begin the Q&A session. We will now begin the Q&A session. At this point, a request to activate the microphone will appear on screen. If you prefer not to open it live, please write no microphone at the end of your question and our operator will read your question out loud.
spk06: Our first question comes from Mr. Tiago Batista from UBS. Sir, we are now opening the audio, so you can ask your question live. Please, go ahead.
spk09: Hi, guys. Good afternoon. I have two questions.
spk02: The first one is about the FGTS loans.
spk05: About FGTS loans, they reached 1 billion. in just a couple of quarters.
spk09: So, can you show us the study of Inter in terms of what should we try to achieve with this level of loan portfolio with this PS?
spk05: And also, what about the Gross ARPAC? Gross ARPAC has been relatively stable for the last five to 47 reais per month.
spk09: Do you believe that Inter has achieved already the cap of this ARPAC? Or will we see some expansion from now on?
spk08: Thiago, João Vitor speaking. Thank you for the question.
spk09: I'm going to go over the FGTS section and Santi will go over the rest of the question. So FGTS, just to highlight, I really love this part. It has a very good ROI for a business. It has a very good debt service for a client. and this service is really good for all customers. Why were we able to achieve that impressive number in just a few semesters? First of all, we have a very good market for our clients for this product. We have many young clients, people who have outstanding balance, FFT, which is the first reason why we were able to attract and underwrite a lot of a good balance, and that also attracts them. We did the best design, the best user experience, the best interface so that customers could engage and also get the funds released as quickly as possible in their current accounts. In other words, it took a while to get to the market, but it went very well and the results are really good and we hope to continue increasing with this product. Santi will talk about the other part of your question. Thank you, João. We believe that we still have space to grow even more. In this quarter, what happened is that we recorded a record growth in the number of active customers, 8%, With regard to the levels of December, as João already said, this is a consequence of the market approach of increasing monetization with the best possible ARPAC, especially with the activation of clients and also with less revenue growth due to seasonality, this led to this ARPAC trend reaching this level. I highlight the growth of clients. This is the first point we see in the quarter, the combination of these factors.
spk10: We believe that in the second quarter we will have a normalization of this trend. Thank you very much.
spk06: The next question comes from Mr. Yuri Fernandes from JP Morgan.
spk09: Mr. Fernandes, we're now opening the audio, so you can ask your question live, please.
spk04: Hi, everybody. Good afternoon. I have a question regarding the cost of risk.
spk09: If you could provide an outlook for the year, I want to put it from a 6% discourse, so where should it be? Like, where is the... on your Excel, on your... Congrats on that. Congratulations, but I would like to have a little more information about renegotiated loans and portfolio sales. If you could give us a little more details about how this was negotiated within the company and if any portfolio sales were made this quarter or not. Thank you very much. Yuri, thank you for your question. I'll start by talking about the cost of risk, what we see from now on, and to start, I'll talk about what is being built, what is building our cost of risk, the main impact of the NPL formation due to the credit card portfolio and with the main pressure coming of the 2021 cohort. You saw that this became visible, right? We have two information in our disclosure. The first, the NPL by cohort card. We see a sequential improvement in the new cohorts and also the breakdown of the risk cost of the provisions that come from the new cohorts compared to the old ones. What is the conclusion? Most of what we see in our P&L It's not about first payment default, it's really about just a macro deterioration. What we see in the macro perspective is that what we see actually is a high correlation between the SELIC rate and the monetary frequency of the SELIC credit, given the pressure at these high rates in the capacity of families to serve their needs.
spk11: Although we do not provide
spk09: and we also do not give orientation regarding the forecast for 2023, we see a continuation of the current trend in NPLs and cost of risk. We believe that this trend is aligned with the market in general and from the second half of 2021 we expect better numbers for several factors. First, the improvement of our underwriting collection model, also the improvement of older codes, and also a better mix of new originations. This all goes in the trend of new customers, that is, With that, the models tend to behave better. In the second part of your question, both renegotiation and asset sales are the same as always. We did not have any portfolio sales this quarter. Thank you very much, Yuri. Thank you very much, Alexandre. Just a follow-up on the first part of your answer. You mentioned 2021 courts, right? And, of course, credit cards are generally short-term. These are the clients for any, I don't know, like maybe our risk appetite was higher back in 2021, you add some clients that maybe they were good for the history, but now they are showing that we are right, like they were bad, so we will continue to see from those clients, because what What's the question is, the credit card is a very short-term product, it should be clean quickly, and for some clients that are somewhat riskier, we see this worsening trend. Does it make sense? Yuri, it does make sense, but there are a few things here that I'd like to have.
spk11: First, when the best... In the past, we've talked about FPP, which is First Finance Default.
spk09: What that tells us is that what's the quality of the risk that we're moving that 50% or more left here on this first This is a prediction that we will see better NPLs in the future. This is what we also saw in the courts that we showed in the presentation. What we see in 2021 now is another dynamic. Another dynamic, we usually see a cut of a credit card in 26 months. It means that not every client will be in the first payment, or in the second, or even in the third. Considering the deterioration in the credit scenario, this can happen more in the future. That's what we see. The tendency is that is that with the passage of time, it improves the remaining customers of each group of each sector. This has a better performance in the long term. Was that clear? Yes, very clear. Thank you very much.
spk06: The next question comes from Mr. Tito Laberta from Goldman Sachs.
spk09: Mr. Laberta, we're now opening the audio, so you can ask your question live.
spk01: Please, go ahead, sir. Hi, good afternoon. Thanks for the question. The questioner already was answered, but another question on expenses right here. We're talking about the cost to serve.
spk09: Is there room to improve this product from here, or this is a
spk01: Or do you think it's a recurring level now? And then, just a second question in terms of your profitability and your capital. I mean, we saw capital not falling less in the prior quarters, but still coming down a bit.
spk09: When do you think you'll be able to start generating capital, or in other words, are you still confident you'll get a longer target of 30%? But do you think you'll be able to generate capital by the end of the year? In other words, do you have a level of profitability that will allow you to generate capital? with the capital generation, will there be a deflection? How will things develop?
spk08: Tito, João Vitor speaking here. Regarding expenses, which at the end of the day drives down our costs of service, on the personal front, regarding your question, we are improving a lot, in two angles, actually. from two angles, from two points of view. First, we started the year with 4.1 thousand employees.
spk09: Currently, we are 3.7 thousand. This evolution happened due to CAC adjustments and also without replacing the people who will leave. We were able to improve expenses in this direction throughout the year. Secondly, as important as this first one, we also want an adequate management structure with consultancies, for example, and with a new structure, this will help us to reduce our personal expenses. We are very satisfied with what we have achieved, but we believe that there is more to come in the next few months. Santi will talk about the rest of the question. Thank you.
spk10: On the capital side, we are excited with the trend we are seeing.
spk09: We still see a strong relative buffer with the high-income banks, 100% of the CDOs. And with regard to organic capital, we see that we are once again building, creating an even greater financing capital, as you said, in January.
spk10: We expect a fully funded business plan from a capital perspective, and this consumption, as we continue building this organization, to build this material.
spk09: In relation to the improvement of the revenue, we see that it is also in accordance with business plans.
spk01: Thank you very much, very clear Santiago. One more question.
spk09: In relation to when you will see this year, will there be a capital reduction? around 20% by the end of the year. Will you receive any organic capital by next year? We don't have this profitability guidance.
spk10: What I can say is that we expect to continue having a sequential improvement of our income in terms of long-term growth, In capital, we're running, or we started running, 20% of the growth of the year, which is the 5% of the quarter. We monitor macro conditions to see if it goes up a bit, like today, and by 2020, it will be around that zip code.
spk09: Expansion of net income, we review that there.
spk10: we see a capital level that sustains about 20% around the end of the year.
spk09: Okay, that's good. Thank you.
spk06: Our next question comes from Mr. Flavio Yoshida from Bank of America.
spk09: Mr. Yoshida, we're now opening the audio, so you can ask your question live. Please go ahead, sir.
spk11: Hi, good afternoon, everyone. So my question is on NIA trends going forward. So on this quarter, we saw a little bit of an acceleration.
spk09: The deceleration of the loan portfolio in this TRI, but also in the loans, for example, of payment sheets and real estate loans, are more resilient, emerging.
spk11: On the other hand, you guys showed strong repricing efforts.
spk09: This improved NL.
spk11: What do you expect from now on, considering all these aspects?
spk09: Thank you very much. Thanks, Flavio, for the question. On NIM, we're truly excited about the dynamic that we're seeing. We don't think we've printed the highest NIM in terms of motors, and we declined the size of the portfolio, the lower range of the portfolio,
spk10: And also, of course, financing the logistics chain. Much richer in relation to originations, in relation to IPCA shares as well, in relation to payment sheets.
spk09: We have done diligent origination. SMBs, small and medium-sized companies, we increased the rate.
spk10: and also FGTS, which has a monthly rate of 2.15% which includes the mass of the EU, and all these factors together have a positive result with expansion of up to 30 BPS, perhaps not in the next two quarters, but it is a good indication, yes, of a growing trend of quarantine. Thank you.
spk06: Our next question comes from Ms. Niha Agarwala from HSBC.
spk09: And we're now opening the audio, so you can ask your question live. Please go ahead. Hi, thank you for taking my question.
spk00: I think the question was already asked. I'm going to have a clarification on the growth and the potential for the...
spk09: You mentioned about 20% growth, is that expected for the year, or could it be a bit higher? Also, what are the focus segments for this year? And my second question is, how much more can we expect What can you expect about the cost of risk this year? I understand from your comments it will be more in the second half of the year, right? More than in the first half of the year. Niha, thank you for your question. I'll start with the second part. As you mentioned, we expect to see more stability during the year, and considering the expectations we have in the macro scenario, and also due to improvements in the underwriting collection and the aging of the courts in the oldest sectors, we see improvements in the risk cost in the second half of the year. In relation to the first part of the question, which is about the growth of the loan portfolio, as Santiago said, we had 5% growth in the first three, that is, 20% annually, And it's a little bit below what we expected, but it's a good position to be in the macro that we saw in the first quarter. We had a very big movement happening with American and other corporate events, and to think about market tensions. Yes, we observed a phase of tension that's fading away. a more aggressive growth towards volumes that we discussed during our Investor Day earlier this year, 40% level or something like that. Thank you. Can I ask one more question? In terms of your costs, you have shown a good performance in terms of increasing efficiency in your country.
spk00: What are the levers do you have? Are there any other low-hanging fruits that can help you further drive down the cost of income ratio and plan for the cost of income to be by the end of this year. Thank you.
spk08: Nia, João Vitor is speaking. Yes, we do have also other initiatives in that sense. And to your right, I would call them low-hanging fruit.
spk09: So we have three contracts that we're trying to renegotiate, which we know is a driver for our customers, not only the MasterCard, the AWS, Salesforce, and we're working hard on that front. And also, in the personnel, we still have room to improve, as I said.
spk08: And all of that combined, with all of the improvements on the NIMS, the pricing should help us on profitability. So, I don't know if that will reduce the cost of service even further.
spk09: We do have
spk08: Thank you so much.
spk06: The next question comes from Mr. Eduardo Rosman, PTG. Mr. Rosman, we're now opening the audio, so you can ask your question live.
spk02: Please, go ahead, sir.
spk04: Hi, hi, everyone. Congratulations on the quarter. We'd like to see the improvement in efficiency and also in performance. I have a quick follow-up on this question. Given the repricing efforts, the better cost control and the fact that the interest rates probably have increased, do you think it's fair to say that from now on, we should expect no growing results, no profit, no more?
spk09: I understand that there's a value on but you think the visibility on what we expect for the coming quarters improved? I'm trying to understand here the five-year view with QNAL. We all agree with that probably. that will improve profitability, but investors are having a hard time foreseeing what will happen in the next six months. So, if we can understand the trends, if they are clearly improving the results, it would be great if we could share this information with you. Here's João Vítor. Rosma, as I mentioned at the beginning of the presentation, I would say that in the previous five years of Inter, we were building our full day, with a lot of cost, greening the team, building the platform, working on all the features, and we're doing our IT with a lot of money and everything. And from now on, As I said, we are having a more cautious approach on price, on the use of capital, on growth in a better manner, looking for more engagement, trying to optimize the fixed cost of G&A, with personal expenses. What I'm trying to show is that we are now focusing not on the new environment, but this different moment for the company. We call it the period of the next five years, and so on. I'm sure that we will continue to improve our profitability with this cost approach also in relation to actions, better pricing, better cost control, that is, we will continue to improve quarter to quarter, week to week, improving our profitability. We have this very big focus, this commitment to this metric. And when I say the team, I'm talking about almost everyone here at Inter. And when you have everyone to pursue this goal, your chance to get there is very high. So I'm very excited and very, very excited to get there. So improving, growing, and far, far to get to a very good number that we have. So thank you. Thank you, João.
spk06: This concludes our question and answer session for today.
spk09: Now I turn the floor back to over to Mr. João Vitor Meni for his closing remarks. Thank you very much, Operator. I would like to thank everyone once again for participating in our teleconference. All the team at Inter, who have worked hard every day to improve the company. We hope to see you soon in another teleconference. Thank you very much.
spk06: The conference is now concluded.
spk09: And now our area is at your disposal to answer any additional questions. Thank you for attending today's presentation. Have a nice day.
Disclaimer