Banco Bradesco Sa American Depositary Shares

Hello, good morning everyone, how are you? I am Marcelo Noronha, I am directly here from the City of God, at the headquarters of Bradesco, to present some details of our results from the third quarter of the year 2025. You must have already seen that we published the results last night and certainly had the opportunity to read and see some elements of our results. I bring here So, the first opening, the recurring liquid profit, as you could see, was 6.2 billion this quarter, an increase of almost 19% in the euro. We also raised our ROE by 10 bps to 14.7%. The summary of the opera here is that I think we have a solid and consistent result with everything we have been talking about in these seven trimesters of presentation of results after our transformation plan. Basically, here we talk about profitability, which maintains growth step by step and is safe, with operational consistency. Just look at all the lines here, revenue advances in practically all lines, Brutal, liquid financial margin, which is more important than bottom line. Service loan receipts, insurance group, other linked ones. And with a highlight, obviously, here for the margin of customers. Absolutely controlled inadimplency. The restructured portfolio falls, as you will see a little later. And our portfolio, with guarantees, grows proportionally, tri-to-tri, reaching almost 60%. Operational expenses in line with the expected and counted. The expenses are very controlled, I will talk a little later about it. And we were ahead of the revision movement of our footprint. We are already with a number above that number that we expected. And once again, we delivered a solid performance of the insurance group for another quarter with Maruí exceeding 21%. So, I open a little more details here for you. Our total revenue reached 35 billion, a growth of 13.1% in the euro, total financial margin almost 17% growth, service revenue almost 7% growth, and the insurance group, together, with a growth of 13%. You can see that the growth is constant. And what explains this growth in revenue? Naturally, the commercial traction, the penetration on the basis of clients. I will repeat this in another credit slide a little later. If we did not have penetration on the basis of a physical person, of a legal person, with consistent improvement, da experiência dos clientes em todos os segmentos de negócio, a gente não teria um crescimento constante em todas essas linhas de receita como a gente vem observando aqui. And then, moving on to the credit card, we reached 1 trillion and 34 billion, a new consistent growth, 9.6% in the euro. Here, without going through the whole thing, then I'll open another slide to make specific comments, we can see that the growth, both in physical and legal people, are in much more collateralized lines. So, you can see here that the biggest highlight occurred exactly in micro, small and medium-sized companies, with a growth of almost 25% and with a portfolio very well managed, with a lot of collateral, for us to have the life insurance to grow consistently. And I'll move on to the next slide, zooming in, in some credit topics that I consider important because they are growth levers, as I said in the revenue slide. So, what does this portfolio reflect? Good commercial traction in all customer segments. Second, if we didn't have a client base and penetration in that base, we wouldn't have the capacity to grow this way. And the other is the credit modeling in the business unit that we created, including with this portfolio management area that I bring here in these boxes down here, with a lot of use of machine learning. increasingly better models. We hired more than 200 people for our credit B.U. We did upskilling. And what we are seeing is a constant evolution in all segments, but not only for the physical person, for SMI, but also for the attack bank, with all the balance we want. And then I bring this Zoom to you to bring some points, because they also address a little of the future. See, the consigned credit in Bradesco, it closed now the TRI with almost 102 billion in the total portfolio. We have a share of approximately 14.2%. Among the private banks, we are the largest. We lost here in this commercial dispute for public banks. Now, notice the following. Our NASDAQ portfolio is 15.4% share. We have a public share of 14.3%. Here, we grew share. And the private sector, 7.5%. We have a small participation. We were conservative in this release of private credit. After the Q&A, if anyone wants to explore this a little more, we can comment. But we adopted a more restrictive credit policy at the beginning, exactly so as not to take certain risks. What happens here? We adopted a policy of working with the companies that we worked with before and for those collaborators of these companies that had at least one year of work. What happened in the accruals? In the first accrual, the level of inadimplency due to lack of accrual was higher than 12%. It has been falling. In this last accrual, it has already fallen well, that is, the market is getting oiled operationally. But on average, and I'm not talking about any specific institution here, on average, the level of inadimplence in this portfolio here, for these new futures after the CTPS, is around 11%. Ours is 3%. So we didn't grow, we decreased the portfolio in the private sector, in the real estate sector, In the year-to-date, now, when we look at the third TRI, the Central Bank even disclosed the September portfolio, and you can follow it there. We have already grown back in the private sector, now we accelerate with a slightly more open policy, but absolutely controlled in here. We are growing well in the public sector. The INSS, with several modifications that were made in the first quarter of this year, it left a total production in the market of R$ 7.5 billion to R$ 3.5 billion. And of course, what happens here? When we had this largest portfolio among private banks, we had a bigger monthly and periodic liquidation. So you also look at the Central Bank, a decrease in the portfolio of INSS, which now we start to grow again. So we accelerated very well in the public, we are well positioned here. And what is my expectation for the future? To grow in the TRI? and grow next year with consistency in all these lines of NSS, public and private. This is a great opportunity for us. Look at our share, we don't have to lose here, we just have to win. Second, credit card. Note that we had an expressive growth. In high income, with a lower credit risk, as we have shown. In real estate, we have a share of around 20%. There are three or four banks that have bigger shares here. In the last quarter, which we... In fact, this year, in general, we have preserved margin. Now we see the opportunity, including with some modifications as well, to accelerate our real estate credit again. The Rural, just to show the portfolio, only here from the bank, that the growth is 25%, very collateralized. SMI, we grow, as I said, consistently, in the TRI and in the year, almost 25%, and we continue here. You can remember that when we released the plan, we said we would always fight to continue in the leadership of SMI. I'm talking about companies that have revenue or revenue up to 300 million a year, according to the Central Bank, and all the banks report to it, and we won share. also here at SMI. So, to tell you that we must continue to grow our credit portfolio, remembering that we made a write-off in the last year of that restructured portfolio of almost 10 billion, And big companies, we didn't have that growth. If it wasn't for that, if they were unstable, if they hadn't done write-off, if they hadn't decreased the portfolio of big companies, we would have grown our credit portfolio even more. well tracked where we want, with the desired customer, we have demand and we will continue to grow and make it happen. I have the expectation of winning the market share in consigned, right? Of continuing to grow real estate in SMI, which we won the share, also very tracked. And then, obviously, the consequence of this attraction is a growth in the total financial margin to almost 17%, and the total liquid margin, which is the most important that we have been talking about, tri to tri, which is what hits the bottom line with 10.2 billion, 14.4% growth, but when we look at the portfolio, at the margin with the client, we reached 9% with this growth, 19% in the gross margin, but in the liquid margin, that you are balancing the portfolio with the cost of credit, 4.8%, 18% growth, we reached 10 billion, and we have been growing, and the expectation is to continue growing here. Speaking here of expenses with PDD, I saw some questions, we even did a collective with journalists, they also asked, 500 million of variation in the cost of credit tri-contra-tri. We have two cases that justify this here. First, a specific case of the attack bank that we made a provision, and I comment with you here, I can't, obviously, name names, but if you go to the complete publication, just download it, you go to the provision page, and we have the provision, the cost of credit for Massificado and the cost of credit for Banco do Atacado. When you look at it, Banco do Atacado makes R$ 200 million for each TRI, R$ 300 million, it has that regularity. this TRI goes up from 200 to 300, to 500 approximately, right? It was a specific case, but we can be making credit in the middle, which is also from the attack bank, and when you do certain modalities, you also call provision in advance. So we have a regularity here, which is natural. Now, if we took that and also what was added to the John Deere bank, which had a slightly higher inadimpliance, is a fact, we would be flat. So, we don't have any problem. The coverage level that we made for this case leaves us absolutely calm, right? So, it is a specific case, they are not cases, and we decided to actually make the provision that we had to make and move forward, turning the page, so that we can continue to grow and with If it were flat, the credit cost would be much higher here, for 3.2% than for 3.3%. So, there is no concern here, our portfolio is growing. And then I also say here, this slide, after talking a lot with Cassiano, who will be here with me in the studio, who is already here, André too, and André likes to say, this... This slide here, this screen, is just good news. I also only see good news here, but I'll comment on one, because there was a specific question about it. So, look down here at the representativeness of the portfolio by stage. Stage 3 falls from 7.9 to 7.7, it could even be a little lower, stage 2 also from 4.6 to 4.5, and obviously stage 1, it grows, which is the portfolio with the highest quality, and which also refers to this here, the restructured portfolio. We have a drop of almost 10 billion. year after year. It's very significant. If you go back to the beginning of 2024, it's over 12 billion. And look, even the cured portfolio has improved. So here, look at the representativeness of this. It's been falling in relation to our total portfolio. Another super important and positive data is also this level of coverage with a guarantee of almost 60% that we reached in the portfolio. So imagine the following, in production we are doing much more than that to have this type of performance here. And in the flat dimple, There's a little note here, a footnote, if we, this deviation is a little bigger for the physical person, basically it was also the case of John Deere, which I also don't see any problem, he has a greater capillarity of equipment financing at different levels. of companies, of agribusiness, right? So, it affects because we consolidate all this, but here we have an absolutely controlled and quiet portfolio for us to follow, tracked and making the business happen and generating more and more revenue. The service service revenue is also another highlight. If we don't have commercial traction, and don't deliver better and better experiences to the clients, right? Adequate models, adequate levels of relationships, we don't do service delivery receipts, which grew by almost 7%. I highlight the cards, almost 14%. Here, in consortium administration, look at the growth, 22.1%. Of course, this product is demanded by clients of different ranks, by legal people, right? When you have a rate, like the one we have today, which is a little higher than 15% of SELIC. It is even more attractive. Fund administration. I draw Abram's attention to these levels of growth, but above all because it reached 1 trillion in volume under management. And here, I also draw attention to credit operations, with this growth of 11%, we continue to be attracted to this business here, and also to our investment bank. Look, the investment bank, it appears here with a quarterly decline of 29.9%. But why? The baseline of the past three was 75% growth. So, when we look at the year-to-date, this year, it comes with a growth of 24.1%. And it's not a divine work. It had investments, team growth, team structure, engaged team, and, naturally, generation of pipeline from all segments of attack, and the middle market as well, in addition to the service of custodian and brokerage that also grow in the TRI and in the year, as you have seen. Operational expenses. Before talking about them, the adjustment in our footprint. we have been moving beyond what was foreseen in the footprint. You can see that this year it was almost 1,259 points, and a year ago, in 12 months, 1,600 points. So we were ahead, which is positive, We are able to do this, I think, with a lot of talent from our team and with a lot of intelligence behind us. And we will continue this trend until the end of the year, and then we will give you a perspective when we talk about Guidance for 2026, what our expectations are for next year. Expenses are growing, 9.6%. But note that we were also asked for this. In terms of staff and administrative expenses, growth is 5.5% and it would increase. If we took the effect of the PLR, which is the result of a higher variable remuneration, we would have a growth of 2.5%. Our expenses are absolutely controlled, and I will draw attention to some details. Without Elopar and Cielo, it would be 8.4% and not 9.6%. But let me give you some data. Also in our complete publication, it is there, If I'm not mistaken, on page 21, we look at operational expenses. Looking at administrative expenses, for example, we consolidate everything. Administrative expenses, year-to-date, in these nine months, and in the year-over-year, they have negative growth. We decrease. Now, if you are curious to look at it line by line, you will notice the following. The expenses, some grow and others decrease, such as facilities, for example, transportation decreases. There is a line that is of technology. The line of technology, if there was no trimester variation, we would also decrease administrative expenses in the quarter. Now, also note the following. In this TRI, The absolute growth was of 140 million reais. To draw your attention to a data, when you look at our numbers, at our balance, we consolidate the connected companies. So when I take, for example, Allelo and Livelo, the growth in administrative expenses is over 20%. So, here it drags up to 140 million reais. I can tell you that a good part is coming from these two companies, because it affects us by equivalence. So, the expenses in here are very controlled. Personal expenses. Cielo did not have an impact on this TRI in administrative expenses. When I go to personal expenses, Cielo also had a growth of around 7% in personal expenses. If I take the variable remuneration and look at the fixed remuneration, which is in the first line of operational expenses, you can see there too, we will see that people's expenses would fall to an index that is perhaps less than 3% if we weren't doing this equivalence of Cielo. So, when we look at this, we have to look at the picture and think that we have equivalences or consolidations that are released here. So, I can tell you very calmly that our expenses are controlled, we naturally had a greater impact, a greater result, which is a cost that we consider positive. And the other side here is that you also adjust all the provisions that you have when we make the collective agreement, which was higher than 5%. It's not even possible to index people's expenses. So, that's what we see here. We see absolutely controlled expenses in the next TRI and forward as well. Now, the holding group, as I had also commented on the first slide, consistent liquid profit, we continue to make a very good profitability. When we look at the year-to-date, 11.4%, the year-over-year, 6.5% growth, an ROI higher than 21%, as I commented with you, and I call attention to the operational result. that guarantees the consistency of the insurance group's result, with the total result growing, this magnitude here, Ieroveria 13%, the operational result 10.2%, the financial 18%, but the growth of the insurance group is very consistent and it is also not a divine work. All customer segments, practically all lines have been growing, delivering positive variations year-on-year, but not only here, within our customer segments, but also with all distribution channels that the Group Segurador has, with brokers, digital channels. Ivan drew attention to this now in our collective interview as well. And our technical provisions reach the level of 435 billion, with growth higher than 10.5%. I'm going to a final line here of my presentation, folks. Our capital, even growing the credit card in this way, it grows the main 30 BIPs to 11.4% and the level 1, it grows 40 BIPs to 13.4%, as you could see. Our guidance, I talk a little about it here. Literally, if you look at that, we should walk, in the year, when we close this TRI, into the guidance, but in the higher interval, in all items, including expenses, taking into account everything I told you. So, look, the credit card, for example, From 4 to 8. We are growing 9.6. If you go there, in our presentation of results of the fourth quarter of 2024, you will find that we have grown the portfolio well, 981 billion. If you take the portfolio, which today is 1 trillion and 34 billion, and you say, I'm going to put 16 billion to make a round account, here, of growth 981, the baseline takes us to 7.1. So, I would say that we will grow between 7 and 8, a little more, perhaps, tending to 7, but with consistent growth in here. And also, liquid financial margin at the upper interval, and so on, for each of the topics, all at the upper margin of our guidance. We will deliver the guidance no final desi desi trimestre balanço rápido do nosso projeto transformação que a gente vai fazer um balanço um pouco mais acurado quando a gente fechar o ano né a gente vem evoluindo muito bem em todos os quesitos de pessoas físicas aqui com cada um dos segmentos Bradesco principal encerrou setembro com 41 escritórios expandindo I'll talk a little bit more about that. I've already talked about the footprint, surpassing expectations. We launched Global Solutions and enabled the platform for 100% of our clients to attack. It's our cash management. We already have more than 11,000 people working with Enterprise Agility within our organization and advancing well and fast here. And with everything we've been doing at TI, with the intensive use of GNI, our productivity in development has grown 109% this year. Looking forward to the next TRI and also to the next year, we have here, I will draw your attention to four topics, without going into each one of these items here of our mandala. First, the principal. A gente deve fechar o ano com 300 mil clientes aproximadamente, com 62 escritórios em quase 40 cidades do Brasil, e o Prime, que vem evoluindo no seu velho proposition, já com 3 milhões de clientes, talvez um pouquinho mais do que eles. A gente já tem mais de 14 bilhões de clientes que são eminentemente digitais, não usam mais pontos físicos para atendimento, e eles estão também sendo suportados pelo nosso Bradesco Expresso, que... Cresceu e tem mais de 39 mil correspondentes bancários em todo o Brasil, em todas as cidades do Brasil, nos mais de 5.600 municípios. No SMI, a gente viu a atração que a gente tem. Eu tinha falado no tripassado desse novo app. A gente expandiu o app, por exemplo, para pequena e microempresa. They hire the PRONAMP and PROCREDIT directly from the app, with a new and very fluid experience. And obviously, our entire segmentation process has shown itself to be effective, with a growing penetration in this segment here. And I call attention to another topic down here, in this box of our theme of culture, of Sobradesco. Last year, we showed that we had done the research with 74% of participants with high engagement. This year, 84% of all our collaborators engaged, responded to our research and showed the evolution that we have here in this regard, in addition to all the other initiatives that we have in each of the areas. Two pieces of information before I finish my presentation and we go to Q&A. I have always talked about GNI, and this time I said, guys, I'm not going to talk anymore, I keep talking, talking, talking in all the forums I go to and here in the results presentations, and I said, let's put Bia to talk. And then I was surprised when people brought me the video, because they put an avatar But it's the last time you're going to see this avatar. In the next video, I'm going to bring another avatar, much more sympathetic than this avatar that I'm going to tell you about. It's a minute long video, it's not much more than that. Let's watch this video and I'll be right back with the conclusions here. Please. The digital transformation, through Enterprise Agility and the massive leverage of GNI, is generating impressive results. Look here, I highlight four fronts of progress here for you. Increased productivity, hyper-personalization, risk management and also the engagement and customer journey. We have already achieved an increase in productivity of 109% this year and we have built a new income model with a drastic reduction of 95% in the time of creation and an expressive increase in accuracy. Simultaneously, we strengthen safety with sophisticated biometrics and offer hyper-personalized experiences. And in customer service? Total engagement with 90% de retenção no chat da Bia e inovações como Pix por Voz. Aqui no Bradesco, a GNI vai além da tecnologia. Ela é parte integrante da nossa transformação a serviço do nosso cliente e negócio. É isso aí, pessoal. Muito obrigado. Agora é com você aí no estúdio, Marcelo do Mundo Real. Até mais. Valeu, gente. It's hard, isn't it, guys? But the next one doesn't come with this avatar, let's do it with another one. I'm going to my conclusions here, so I reaffirm what I said at the beginning of the presentation, of our commitment to increase profitability. We are approaching the return on capital costs, but step by step, as we said from the beginning of our plan. receitas como principal driver de aumento da rentabilidade com despesas controladas, carteira de crédito com crescimento equilibrado, e priorizando sempre retorno ajustado ao risco. Apetito ao risco, que eu tinha falado lá no final do ano passado, continua moderado, But, well, indexes in the market, wallets and safras, absolutely under control, right? So, we're very interested in Run the Bank, in Change the Bank, and confident that we're going to make a good TRI at the end of the year, and we're also going to make good TRIs next year, in 2026. Now, I invite you to be here in our Q&A with my colleagues Cassiano Scarpelli, who is the CFO, and our colleague André Carvalho, the director of RI. André, it's with you, my dear.

Thank you. Thank you, Marcelo. Thank you, Cassiano. It's a pleasure to be here with you. Good morning to everyone. I would like to remind everyone that our CEO of the insurance group, Ivan Gontijos, is here participating remotely. And in relation to questions, anyone who wants to send us questions, please. Thank you, André. Good morning, Noronha. Good morning, Cassiano.

Good morning to everyone. I would like to talk a little about costs and this review of Footprint, which you have accelerated a lot in the last two years, closing much more points than was expected, both in 24 and now in 25, I think you have accelerated beyond the goal. So my question is about 26, if you can imagine this same closing rate, Or is the trend that the focus changes to start collecting gain of operational efficiency for you to walk towards the goal of those 40%, which I think was 8%, 8% less than 48% at the time when you were announcing your strategic plan. And then, the second question in terms of costs as well. You mentioned Elo and Alelo growing 20% year-on-year, even more than that in costs. Can you imagine that this is the pace of pace that you continue forward? Is there any one-off, any specific situation for you to be accelerating costs, specifically in these two companies? Thank you.

Well, I'll start with the second one. Thank you, Daniel. I'll tell you the following. They don't grow at the expense of staff, right? I was in the wrong hand, right, Dacielo? I just quoted that to say, because we have different dynamics, right? So... they have been growing their volumetry, their revenue, their return, and have been investing. So, naturally, when you grow customer base, you also increase processing costs. This kind of cost is natural for you to grow. I don't expect you to grow indefinitely, at a 20% level. I don't see that. But they are well balanced, they are giving back. Now, I think it's worth it. When we showed the transformation plan, I commented the following. We have a plan to reach this level of efficiency, which is very important. We are pursuing and controlling expenses with great quality, with a very refined execution and discipline. Now, if you tell me that I have the opportunity to spend R$ 1 billion to win two, we won't hesitate, right? To walk and adjust, because life is dynamic, right? So, opportunities arise and you do that. So, that's not our expectation, it's having well-controlled expenses, as I said here. But when you consolidate, sometimes you look, wait a minute, it shouldn't be reducing, eventually you will have a deviation here and a deviation there, okay? Regarding the footprint, we talked about 1.6 of revision in the last 12 months. The expectation for the future, if you look at 12 months, is a smaller adjustment, Daniel. We are closing this number according to our transformation plan, but it must be less than 1,000, this expectation for next year.

Just to complement Marcelo's answer, when we anticipate the footprint adjustment, we naturally call for more labor provision, it appears in our OPEX line. When we actually reduce this footprint adjustment, we must have a deceleration of the labor provision, this will be clear from now on.

I would even add, Daniel, we can't forget about investment, which is also in there, which is depreciation, a strong investment that we have made naturally, in all parts of technology, in the bank, as in all parts of depreciation, so there is a bit of that. theoretically offensive, but in fact, they are the impetus of the new standard of bank efficiency.

Of course, and of competitiveness, right, Cassiano, above all. What we are saying, and we even spoke with a more conservative guidance at the end of last year, but we will not give up any investment in terms of competitiveness. Thank you, Daniel.

Thank you, Daniel. Thank you. Moving on to the next question, from Pedro Leduc, from Itaú BBA.

Good morning everyone, Noronha Cassiano, André, thank you for taking my question. The first one, I think you already answered here, André, this high level of labor provisions that we are seeing this year. In fact, it is a stock being made that may normalize next year. I think you already understood it well, it was a great offender here of the result. The other question is about credit quality. We saw a slight increase in inadimplency over 90% of physical people, and then I wanted to help explain this here a little, maybe the question of John Deere, if it has already passed, if you have more to pass in provision, and also in SME inadimplency, which came to fall quite curious, even contrary to market trends. Congratulations, but I also wanted to understand a little more here, perhaps the relevance of the government lines to be growing, if you can give us an order of magnitude here, if 10, 20, 30% of the SME portfolio, how is the performance of these government lines, as they go out of need, and if there is any great concentration there that we need to pay attention to. a elas no final todo tentando entender se alta de custo de crédito que a gente observou nesse tri é algo que é uma tendência daqui para frente Obrigado Obrigado viu ele do que então é boas perguntas aqui obrigado prazer

First of all, regarding the physical person's inadimplence, it was João Dias who pulled it. We don't have any other problems. We have a very secure portfolio, good profits, you'll see. a good TRI in the fourth TRI, in relation to this issue too, in relation to the attack bank, which was the case that we did, going back to João Dias that you asked, see, he has a much greater capillarity, and you have smaller and larger financing, depending on the size of the business that was done in agribusiness. So it's natural, it's not breaking any history, than they already had, and there are recoveries that come with time. That's what we observed there. So, this moves a little bit because you consolidate, but it doesn't take our sleep or our spirit away from the business of John Deere, of our growth in agribusiness, both in the attack bank and directly in retail companies, in the physical people as well. So, we are excited with the sector, obviously we are careful, we have always worked with collateral here within this type of line, we do not have deviations in our rural credit portfolio. Regarding the attack bank, that provision that I mentioned, you have a regularity there, in a specific case, It came out of the market logic, because the market is there. So, we decided to provide it. There is a good level of coverage now. I don't see any other problems here. So, I see a well-balanced credit cost. If you took this case from the attack bank, and also the deviation we had in João Dias, we were going to be flat, okay, Eduque? We were going to be flat. The order of magnitude for you, in relation to this case, I'm not going to give a specific number, okay? But it's around 200 million, okay? Around there, of reais that we made, okay? So, we are very calm in relation to our portfolio. In relation to SMI, Why does it fall? Because we obviously have a numerator-denominator effect, because we are growing well, but it's not just that, we are growing well with collateral. We chose modalities, and at FGI and FGO, do you remember that I said that we had a share of around 18%? We were second last year, right? At the closing I said, at the beginning of this year, this year we are the leader in volume, with more than 20% of share. This pushed and made us grow. with quality, because our models take into consideration those intervals, so that you can eventually have a break in those limits that are accepted by the FGI and the FGO as well. So we are doing very well, delivering very good quality creating a colossal credit risk culture in our segment of companies, in our segment of business 1, business 2, which are companies up to 50 million years of turnover. So, a controlled portfolio, without fear. Obviously, this is the attack bank, you can have something different here and there, but it is worth remembering what I commented on during the presentation. I have a corporate, which is the middle segment. I start with 50 million and geographically I will have a greater extension, up to 1 billion. And depending on the expected loss or the modality we operate in, you call a little more provision in the future. because of the expected loss. This doesn't mean that there is no influence. I didn't see the movement there in stage 3. No, because he's there in stage 1, it's good, but you have that expected loss for that type of target you're working on. But always with that, right? Adjusted return to risk. This is valid for everything, okay? This is valid for SMI, this is valid for the bank to have attacked, this is valid for vehicles, right? Anyway, for all of them, okay? Thank you, Pedro.

Thank you, Pedro. The next question comes from Mário Pierre from Bank of America. Mário, please.

Good morning, guys. Congratulations on the result. Let me ask two questions too. The first one, Noronha, is a provocation, right? You are saying that the credit rates are coming well, that the inflation rate is totally under control. but at the same time we are waiting for a slowdown in credit, in the growth of credit until the end of the year. I wanted to understand why then this caution with credit, if you are seeing that everything is going well, why not give an acceleration in the growth of credit? And the second question has to do with your margin with the market, clearly about pressure, with the increase of Selic, how do you expect the margin for the market to perform next year with the expectation of the fall of Selic. Thank you.

Well, I'm going to ask Cassiano to start with the market margin, and I'll complement here and answer the question of acceleration, right?

Hello, Mário, how are you? Good morning, good to see you again. Well, the market margin, we did a super important job, I think it's the first we recognize this year, the important work of the Treasury as a whole, of balance within our L&M. We keep that soft guidance of R$ 1 billion that we were talking about, with you as a whole, with investors in general. So, we recognize this work and understand that this will be normalized by the end of the year, raising R$ 1 billion here. Obviously, the Selic Minor next year brings an improvement of this perspective, we are exactly now studying within the budget process, we will not give any news in the sequence of numbers for next year, but it is without a doubt a possibility of improvement in the market margin next year.

I'd like to add here, first of all, thank you, Mário, for the question and also for the provocation that you made, that we should have a positive expectation for 2026, but not in the first three, from the second three. This is a little bit of the expectation... It's like the curve of the L.M. Exactly. In the L.M., as I said. Now, in fact, as Cassiano commented, the other lines as well. And then I respond to your provocation of deceleration, saying the following, if you take the Central Bank's disclosure, which I think came out yesterday, if I remember correctly, and we were looking, you will see the following, I commented on the private consignation. The private consignation, we fell into the year-to-date, we fell into the year-over-year. In TRI, we went up again and we started to accelerate more. And we will follow the growth of the market here. So, we are not decelerating. Another portfolio that we also saw in the rest of the consigned, in the public and in INSS, we went back to accelerating. The portfolio of INSS still falls, but we are going back to accelerating. In the public, we have a good traction, we are growing. We will gain share. The other, we are well-trained in SMEs, we are not decelerating. It is obvious that you have to deliver the right lines to the right customers. Vehicles, the same thing, the market dynamics, if you look at the Central Bank data, I'm not bringing any privileged information here, you will see vehicles. In the year, we grew slightly below the market. In the quarter, we grew above the market. We have an appetite for risk. So, I can be, for example, I'm doing a modality level with a little more risk, but the important thing is the liquid financial margin. If you pay, have the return adjusted to the adequate risk, So I can tell you that we will be fighting in this market and it will continue to grow. I am not pessimistic about what we are doing. We are cautious not to do any kind of adventure, lines that are at greater risk, we don't want that. So I want good customers, with good ratings, A controlled expected loss in modalities that bring a margin, possibly a little smaller, but that guarantee us the trustworthiness of our assets. It's a good portfolio, isn't it? Exactly. That's what we're seeing. You saw how the portfolio is restructured, how it's falling. So, man, we're going up. So your provocation is, the answer is yes. We have caution. but accelerating where we have the opportunity and penetration.

It's an important data, right, Marcelo? September 25, the financial system grew 1.07, more or less, we almost 1.30, right? Exactly. So we continue with an appetite, with caution, but an important appetite.

Exactly, that's it. If we didn't have the portfolio of PJs, of large companies, had fallen, we would have grown more than 10%, right? Yes. In the Ieroveria, right? Mario, thank you.

Thank you for the questions, Mario. The next question comes from Thiago Batista, from UBS. Thiago.

How are you, guys? How are you, Noronha, Cassiano, André? Thiago, how are you? I have two questions, too. The first one, back to the strategic plan. You indicated a strategic plan for the end of 2024, so almost a year and a half, two. There you had passed more or less three or four indicators, one was a market share of 15 to 19, the other was an SME of 2 to 2.5, better efficiency of 800 bps, and then you indicated ROE reaching near the cost of equity. After this time, some of the diagnoses you had vis-à-vis what you are seeing in fact, is it more challenging, less challenging? For example, capital costs. Apparently, they will deliver, maybe in the next quarter, very close or even above the capital cost, it depends on the capital cost of each one, but capital costs and ROE seems to have already been addressed. Efficiency, maybe there is investment before collecting. So just to try to pass the strategic plan points, what is more challenging or what is more calm. And the second, about the regulation change, about real estate that was announced maybe a month ago, When we look at Bradesco today, the bank has about 112 billion in real estate, 120 billion in savings and about 90 billion in LCI and LIG. What was your view of this change? Do you see an incentive to issue more LCI and LIG to finance this real estate in the future, after the transition? How are you seeing this change in financing or funding of real estate?

Very well. Thank you, Yuri, for the questions. I'll start with the second question, this issue of real estate credit. We have a portfolio of a little more than 140 billion when you take the business plan as well. but we have seen how positive the change is. It is an opportunity, it makes sense to reduce the amount of savings for us to encourage this. We think there is growth, we had preserved the margin, as I said in the presentation, that's why we decelerated a little, but we have demand and capacity to grow again, and we will grow again. You will see, this more towards the end of the year, at the beginning of next year too, that we will go up, taking off. We have capacity for growth here. Now, I think it is positive for the system that operates, eminently four banks have a greater role in this business here. Now, when you look to the regulation, it brings some complexities that I would take a few minutes to explain to you, but you should cover them. But from 27, what we have to look at in relation to the release of the compulsory and the new requirement is that we can have a long-term eviction, because those 15% of free resources are removed from the set. So, in the vote of the CMNE, they say that they will review this every year. So, I think there will naturally be some degree of flexibility for us to adjust this, so you don't create a reverse incentive of not having appetite. But now, at this moment, I think it's positive and we have appetite to do it. This client is a client that is linked and is linked in the long term. He is a client, by the way, more profitable. So I think there is everything to be done. Obviously, the higher interest rate that also challenges the issue of real estate credit, it's falling, it's getting better. So that's the first thing. The second thing I think that here, in relation to the challenges, and I ask that Cassiano and André also complement me, I'm going to make some comments. First, you said, the ROE, we're getting there, right? In capital cost. This was a challenge, right? Because when we presented the plan there on February 8, 2024, we were talking about a capital cost... 13, 13 and a half, I think that was it, if I'm not mistaken, right Yuri? See, we would have already surpassed this here, so this was a tagging challenge, we were knocking on his door, right? So he turns, right? Normally I don't make that promise, but it's very much there, right? In front of us, right? So that's the first thing. Secondly, the growth of customer base. We saw, for example, we cleaned the base of inactivity savings. This is just the cost you have of processing. It makes no sense to have inactivity here and not even bring customers who will not perform, will not have profitability. So we have worked very effectively with this. For example, in that customer who is more digital, with express, with all this capillarity. I think this is the case for the whole of Brazil in relation to a mass of customers with a slightly higher income. in Bradesco Principal. I haven't brought NPS here yet for you, but the expectation is that we, in the next demonstration of results, we talk a little more about the segments of the physical person and that we also bring these indicators to you. So, we're seeing a lot of good things happening here at Principal, at Prime, at SMI, at the attack bank as well. So, I think it's the challenge obviously, there is a joint challenge of a smaller GDP growth. The paradox is a very low unemployment rate and, obviously, this level of interest rate that tightens a little more medium-sized and small-sized companies, that's why we are looking to be in collateralized lines. So, I think that, in the future, maybe we will see more opportunity to deliver some indicators that we will bring at the right time for you, right, Cassiano?

Marcelo, all right. Thiago, thank you. What I... No, Yuri. No, Thiago, sorry. Thiago, forgive me. I'm vulgar, Yuri. I'm vulgar, kidding aside. Here, Thiago, thank you. I would add two things. One thing that seemed to be an accessory, but it was as important as the engagement of our team, right Marcel? Our sobriety and culture. I think this is an important change, Marcelo mentioned it on the screen, 84% of our team Responding to a research, coming with us, I think this is a cultural change of engagement in the purpose of the transformation of the bank. I think this is an item that seemed to be challenging, but it was perhaps the biggest positive surprise for us in the program, in addition to those that Marcelo mentioned. Obviously, the macro environment was that. We are born in a strategic plan. with a completely different market environment, there was no rise in interest rates, there was a GDP rising, there was a lower capital cost, as you said, and even so, we continue to invest despite all this macroeconomic movement, and an important part that we can't stop, besides people, is technology. The investment in technology, reskilling, the change of mentality, the tribes, the concept of restructuring all the infrastructure, the upskilling of this team as a whole and the intensive use of GNI proposes a super important productivity. that is allied to all the processes, footprint, our adjustments, the new pattern of segments that Marcelo talked about, I think we managed to move forward. There is the scale of efficiency, which is still important, we talked about it. We have 800 BIPs, we left there at 48, would go close to 50, 52 and started going. It's been four years, we're going to the second closing, so I think They are all challenging, but I think they are all very well defined.

We are on the way and we will bring, in the next disclosure, Cher. And here for us to take a look. So we are growing where we have confidence, a high level of penetration. SMI is an example of this, you remember that I said Thiago, we weren't going to give up the leadership, we were going to fight until the end. And we're fighting and delivering more and more. So you'll see that in other lines. Now, it's obvious, the group, as I said, is a challenge. We have the natural challenge of time inefficiency, as Cassiano commented, and obviously the demand for capital all the time, because regardless of the level of capital, when we get to the turn of the year of 2026, There are already new requirements in relation to operational risk and other items. I think there is a requirement of 30 more BPs of required capital. We do not stop having capital requirements. This is also the challenge of the sector, Thiago. Thank you, Thiago.

Thank you, Thiago. The next question comes from Yuri Fernandes, from JP Morgan. Yuri, good morning.

Thank you, André. Thiago always asks good questions. I'm going to take a break here. Now we call you Thiago, right, Yuri?

Yes, I'm going to call Thiago from UBS. Hi, Yuri. I think she had to put the sign that you were in line. And then I apologize to Thiago again, please.

Great to be confused with him. I wanted to ask about the image of your client. I think it's one of the great surprises of the year. Bradesco has grown in a more defensive niche, but funding improvements, something of a spread, we have seen your anime very good, this 9% that you presented now. I wanted to get a little bit of your vision, Noronha, Castelho and André, if this improves even more, if you believe that this 9 can continue to rise, or if from here it is a scenario of more stability, and if there is improvement, what will bring this improvement in your line? This is question 2, question 1, and question 2, inspired by Thiago, I know it's hard to talk about medium and long-term ROE, but I think that today the market believes that Bradesco will return to generate returns above capital costs. We saw Ação Negociar 1.15 book, so there is already some expectation that this ROE will improve. I think the efficiency that Cassiano said is a reality. The TRI, we also understand, as you said, there were corporate cases that played against, but the reality is that the ROE only improved 10 bps, TRI to TRI. which is a shy improvement. And when we look at the detail, the insurance company that brought a large part of the improvement, the bank's ROE, it falls in the triathlete. If you could just say again, going back to Thiago's question, what would we expect from the improvement speed of this ROE? I think it's clear that it keeps going up, I just wanted to understand from you, if you feel comfortable giving a medium or super long-term number, but maybe understand a little how you see this improvement in profitability for the next years.

Thank you. André, you start and I'll finish.

Starting with Roy's question, in fact, what we are seeing this year is that the revenues have been surprising throughout the quarter due to commercial attraction, proximity to customers, and this has allowed us not only to maintain that decision at the beginning of the year to preserve investments, but to speed up the footprint adjustment and strengthen the balance. We saw in the third TRI, an increase not only in PDD, but also in labor provision, in a clear effort to strengthen the balance. One-off measures. We were able to do this because the revenue was very strong. In other words, we delivered step by step the improvement in profitability in the quarter, but we decided to anticipate and we are making a very accelerated transformation plan. I think this gives us more tranquility in the medium and long term, that we will be able to go further in this process. So, the idea here of ROI improvement, we've been talking about it. Today, it depends basically on revenue. From now on, it's the efficiency index that we have to focus on, which is a mixture of revenue going well and a very controlled expense, which makes this efficiency index fall 10 percentage points in the next three years. three years, 26, 27, 28. I think this is a big ROI driver that is not yet priced. It is one of the super important parts here for us to highlight here in this discussion. In the NIM part, our NIM reached 9%. Now, in September, we promised this 9% for December. We managed to deliver a little earlier. We are still predicting 9% in December. Certain stability here in the fourth quarter is the base scenario. We have some variables that will still help us from now on in this NIM. For example, the cost of capture, the capture margin is still improving a little. not so much because of the quick wins that we saw in 2025, but because of cash management measures, capture and things that are maturing over time. Marcelo highlighted Global Solutions, we have other cash measures that help, other measures that help NIEM, for example, restructured portfolio reducing. When we reduce the restructured portfolio, particularly problematic assets, we increase within our credit portfolio the amount that yields interest. This also improves our NIN. And, as Marcelo said, wherever we have the opportunity, with a good RAR, we go up, we accelerate, and this ends up helping our profitability, and then it would be NIN liquid.

Look, Yuri, I'm going to be bold here. I think André has already given the overview in relation to this, but I'm going to be bold and tell you the following. Inaei is pulled. Anin, for this trio, I have no expectation of variation. Now, Next year, depending on our mix, which we are still discussing in the light of the plan, and with the budget, and how we are tracked, we might even be surprised. I wouldn't rule that out. I'm not making promises, but I wouldn't rule that out. And when you talk about medium and long-term ROE, of course we are here looking to deliver ROE at the cost of capital and then take another step. Now, when we did the diagnosis, what did we see? Brazil, depending on their positioning. We are an organization, like other conglomerates here, that has around 80,000 collaborators with capital, with a specific business model of a universal bank. Others that have another business model. So here you have in Brazil a market that offers ROE in the long term, between 15% and 20% depending on your positioning. We can see that, yes, in the long term horizon, depending on the positioning of each organization. It's not just for Brazil, it's for the market. I think we have such a large market that there is room for you to have a set of organizations, as we have always had in Brazil, dividing a share into different segments of customers and businesses. Thank you, Yuri, for the questions. A big hug.

Thank you, Yuri. The next question is from Henrique Navarro, from Santander. Navarro.

Good morning, guys. Congratulations on the results. Two questions. The first... It's about the specific corporate cases. We know that we can't comment on the case of Sugilo, but if you could give us a little bit of color within what is possible, these 354 million, we're talking about one, two, maybe three specific cases. The biggest case we can imagine, how much does it represent? And was it 100% subsidized? I think the idea here is also for us to understand what would have been a clean balance, let's put it that way. although losing is part of the loan business, but what would have been a clean balance for Bradesco in the third TRI? And also understand if there was any need for provisioning of these specific corporate cases for the fourth TRI. This is the first question. The second is in the Guidance. You are rolling above the top of the Guidance in several good items. Why not review this now in the third TRI? That would give us a little bit of light to have a more correct number of 25 and imagine what it could be for 26, especially in the issue of insurance, which you are moving much above the top of GAIDAS. That's it.

Thank you, guys. Thank you, Davarro. It's a pleasure to see you here. Regarding this specific case here of Corporate, No, we made a significant provision. We have no expectation of provisioning any of this case forward here in the next TRI. This is the answer for you. And it is this case that has a greater deviation from our set. You have smaller cases there and other specific cases, and also the growth of the portfolio of the corporate itself, which I said was the middle market in here. So, there is no expectation of making a new provision in here. And regarding the guidance review, as we are seeing that we are going inside the guidance and it is the interval, as I told you, we are seeing ourselves in the upper interval, in the upper band of the guidance for practically all these items. I have marked the credit card there, between 7 and 8, maybe a little more to 7, but all the others in the upper band of the guidance. That's why we decided not to review it now, in a little while we will be talking about the guidance for... Thank you again, Navarro.

Thank you, Navarro.

A hug for you. Thank you, Navarro.

The next question comes from Gustavo Schroden, from City. Gustavo.

Good morning, guys. Good morning, Marcelo, Cassiano, André. Thank you for the opportunity. Congratulations for all the delivery from the strategic plan presented. I'm going to ask two questions too. I think the first one is more specific, about capital and tax credit, perhaps more for Cassiano. Capital had an evolution from 11.4% to 11.2%. There is the issue of profit, but looking at our explanations, it seems to me that there was some acceleration in tax credits. I just wanted to understand if part of this capital improvement comes from the reversal of injured tax credits. And if you could also tell us what is the bank's policy in relation to the realization of these assets. If there is a plan to accelerate the realization from now on. The second question, maybe for Marcelo, here a little more strategic. It's been a while since we've talked about Cielo from the point of view let's say, commercial. Marcelo brought up the issue of expenses at the beginning of Cielo and EloPai, but Cielo, I remember at the time of the presentation of the strategic plan, Cielo, together with the part, especially small and medium-sized companies, It was super important. Marcelo, if you could give us an update on Cielo's strategic plan, especially after the social restructuring that was done, with the company's delisting. If you could make an update for us in terms of Cielo's strategy, I would appreciate it.

Thank you. Okay. Let's start with capital. Castelo, would you like to answer?

I can speak. All right, Gustavo. Good morning again, good to see you. Well, you know our policy. Our policy, we have as a basic premise to make the best possible optimization of capital, including among our companies, the group. I think this is a relevant part. of this change and this increase in capital, also increased by a smaller reduction of the tax credit, the fiscal loss that you saw in the note, in which despite having increased our tax credit as a whole, we had an improvement of lines, we reduced the fiscal loss and the traditional PDD and the tax credit of PDD had a traditional increase. this mix of things that makes us have this effect, a piece of this positive effect within the capital as a whole. Obviously, we are still working to reduce, I think there is a project, we are very convinced of reducing this tax credit forward within the operation itself, the growth of the operation itself and all the optimization that we do. So, I think it is within the virtuous cycle of the balance as a whole for the next few years, Gustavo. So, in this specific case of this quarter, that's exactly what I told you, the exchange of tax credit and fiscal damage to the PDD, where there is a lower effect in the assessment, which made us have a positive effect, specifically in this quarter.

To complement this answer a little, just saying that our main capital, which closed in September in 11.4, the prospect in December is that it will basically stay at this level. And at the end of next year, maybe closer to 11, where we would like to keep this optimization process, it will take us to that.

Well, Gustavo, speaking of Cielo, we will naturally bring a balance in the next TRI, as I commented during the presentation, about physical people, about share here. Now, there is a set of initiatives made at Cielo to gain competitiveness as well, and they have worked with specific teams in the two banks, with us here and with Banco do Brasil, both with the attacking segment and the segment of small and medium-sized companies. So we have teams working together with the Cielo teams. There are several initiatives incorporating all customer experience within the channels here at the bank. It has sensitively improved its entire logistics for the delivery of equipment and putting new solutions for the companies there. We have seen the expansion of the affiliations with much more fluidity. by our commercial teams and also Cielo's channels. So, I will bring a much more specific balance on this, but we continue, effectively, in this development work. There is a timeline, including this week, I was giving a lead in this timeline, because there is a planned plan that we follow periodically with them and with our teams, right? Our growth here and other initiatives that we will bring to you here also in the next balance sheet. But it continues making their transformation plan and in a much more connected work than we have ever had in all times. I think we are working together and delivering a new experience to customers with a much higher competitive capacity.

for example, integrated into the SME app.

Exactly.

Thank you, Gustavo.

Thank you, Gustavo.

The next question comes from Bernardo Gutmann, from XP. Bernardo.

Good morning, Cassiano, Noronha. Thank you for the space here and congratulations for the evolution in the results of the bank. I wanted to talk a little bit about private consignado and your appetite for this return. You commented that they were very conservative at the start of the private consignado, but now they have grown again, with inadimplency well below the average of the system. What changed in the origination to allow this return? Can you say that the bank has already found a scalable risk model for the for the new modality of private consignation? Thank you.

Look, thank you, Bernardo. The answer is yes. We have our process very oiled for this. The question is appetite and risk. because of this issue of advertising. You go to the more open market, and we have to have everything very well oiled, because you approve the credit here for the company and for the collaborator, right? E tem de ter a segurança de que aquilo será averbado, né? Então, a gente está bem azeitado com isso aqui, o apetite aumentou, a gente mudou política, né? Estamos acelerando agora, como eu te falei ali, né? A gente vinha caindo no year to date e no year over year, e agora voltamos a subir e a gente acelera, a gente vai ver uma aceleração enorme. certainly in this TRI and next year in relation to the private consignation. I think that here there is a great opportunity for those who have even a smaller participation like ours. I only see the opportunity here, okay? But to continue accelerating in INSS and in the public as well, because we have high penetration. So I think that here in the consignation we will show Good growth for next year as well. Let's see what we will be looking at from the budget point of view, for us to see in our guidance. But I'm very optimistic about everything we've been delivering and everything we've been doing with modeling and intelligence back here. This is fundamental for us to be successful in this business. But we were, in fact, insecure with process aspects. That's what changed. There are deliveries, like Dataprev, they will do, there was a delivery postponed to the beginning of the year, there is a delivery further on throughout 2026. So, there is no problem, this does not change our appetite, it gets better in the future, but we have a great opportunity of growth and we will be growing and we will gain share. I am talking here in the set of the work, not only in the private sector, but in the INSS and in the public consignation as well.

Thank you, Bernardo. The next question comes from Renato Meloni, from Autonomous. Renato, good morning.

Good morning, guys.

Good to see you here.

Thank you for the space for the question. How are you? There are two questions. The first is about the massification in the physical person. You have grown a lot in high income, I think it's the right strategy for this year. But I wanted to understand if growing again and gaining relevance in the massification will be a relevant part of the strategy. looking for next year, for the next few years, and what indicators are you waiting for to be comfortable again taking a risk here in this segment? And the second question is just a follow-up on your comment on SMEs. I wanted to understand if you see any limit being reached here in the lines collateralized with the government and if you think you can continue to grow at the same pace that you presented in the last semesters in this segment. Thank you.

Well, in relation to the massification, I said that we already have more than 14 million clients, eminently digital, right? And what are the challenges here? It is to have very oiled credit models, because the risk of credit here is much higher, isn't it, Renato? So we know that, and we are investing testing and making the business happen. But we've been working with this level of engagement in the customer's life cycle and doing that NBO, next best offer in different segments, obviously. This is valid for high income and valid for this more digital segment as well. And we have been testing the channels with different alternatives and value proposition within our physical world as well, because you have clusters that they would be much more connected to this segment because of the level of profitability they can offer, but they still need physical care, and we've been testing all this with our Bradesco Expresso. So, talking about a country with the continental dimension of Brazil, it's not trivial to think that everyone adheres to digital simply. We have a great social stratification, different profiles, different people in this group, and we have been working with all of them, so we can have the best service and the capacity to continue growing for this public, but now with the proper security. because here, lower income, you have a level of natural fragility to grant certain lines of credit. But we have been learning again some things that we already knew in the past and that we brought to a much larger intelligence model behind. So, all this story of machine learning, of GNI, to support né aquilo que é gerenciado e aquilo que não é gerenciado e que é eminentemente digital né tá sendo usado aqui com talento pelos nossos times tá então a gente vai continuar evoluindo aqui no momento certo a gente vai trazer mais elementos em relação a esse massificado no SMI pode haver Yes, there is a line limitation. We will check it next year. I think we have been doing it for a good year, right? I commented on this with another question that came out here, both at FGI and at FGO. We are well-trained. Now, there may be a little more line limitation. Thank you, Renato.

The next question comes from Carlos Gomes Lopez from HSBC. Carlos.

Good to see you. Hello, Andre. Good to see you and thank you for taking my call. So I had, like everybody else, two questions. The first one is about funding that we haven't talked about. And in particular, we saw a big decline in demand deposits and saving deposits. Is that, in your opinion, related to the reduction in footprint? And what do you think your current market share is in those two lines, in demand deposits and in saving deposits? And second, on insurance, again, you continue to deliver very, very good results. And I'm going to ask once more about the sustainability of the results, specifically in health insurance, where your earnings are now twice the level that you had last year. Thank you.

Thank you, Carlos. André, you can start the subject of deposits, right?

So, to start talking about deposits, we have been doing a very important performance this year to optimize customer resources, and one of the measures was to reduce our LCR, which was in the range of 190% last year, A gente trouxe para a faixa de 150%, o mínimo regulatório é 100%, ou seja, a gente ainda trabalha com uma folga bastante grande, mas a gente abriu mão de recursos caros, particularmente do atacado. Isso gera, sim, uma redução aqui da captação, mas isso foi uma decisão estratégica nossa para continuar reduzindo aqui o nosso cost of funding, melhorar margem de captação e otimizar recurso de clientes. Olhando para frente, I think we have these cash management initiatives that translate into two important platforms, one of financial solutions for SME companies and others for attack companies, which we called Global Solutions. which are measures that can greatly improve the experience in payments, they can improve our performance in this part of catchments and be a structuring measure favorable to our catchment margin, which starts to have an impact in 2026 and this impact will probably increase in the following years. So, catchment from next year, counting on cash management measures, to help us.

I would like to add something, Carlos, if possible. Thank you for your question. If the footprint has any relation to the impact of the deposit, we understand that it doesn't, because our clients are notably digital, they already are. Marcelo commented here that 14 million are already working remotely. We continue to work and sell the main part of both the deposit and the savings. We haven't seen any drop due to the reduction of the footprint, on the contrary. We see more opportunities working at the NBO, including for this client, to bring the best offer for the client of low, average and high income. So, in some way, the footprint does not bring any relationship, possibly, of reduction of the two stocks that you mentioned, Carlos.

There is another question about insurance. Ivan is here with us, connected. Ivan, do you want to answer this question that raised the sustainability of the results of the insurance group? Thank you.

Thank you, Marcel. Regarding the sustainability of the result of the insurance group, we see, looking at it in a retrospective way, we will find in the last three quarters, consistently and linearly, a growth not only in our operations, but also in our result. It has no oscillations, neither up nor down, and this gives us comfort to look at it in a very positive perspective. In the last quarter, we had a growth in the health sector of 9%, We had a growth in the last quarter in life insurance of almost 10% and Previdência, with all its challenges, also grows mainly in the PGBL and in the portability of the VGBL and also, obviously, in the products that we create, adding the prize, adding the risk and that are making all the difference for our growth. In the elementary sector, in the business sector, in the residential sector, in the housing sector and in the equipment sector, we have grown by about 15%. This gives us comfort to look at it in a prospective way and say that we must continue in this same line of growth, in this same diapason, reaching the top of the guidance that we committed ourselves to at the beginning of this year. Specifically, regarding health, the subscription discipline, obviously showing an increase in the number of clients, we increased about 75 thousand liquid lives in this quarter and October already demonstrates this same growth, at this same level and scope that we have treated in recent periods. Regional products developed specifically for the region by the health company also give us a growth comfort, given that our product is obviously that every Brazilian wants to have, obviously, for him and for his family. The growth was mostly in the operational lines and, obviously, the conducts adopted in the fight against abuses and eventual frauds practiced give us comfort for this sinisterness that the Bradesco Saúde group has reached this quarter. These are my considerations. Thank you, Carlos, for the question.

Thank you, Ivan. And well remembered, our Bradesco Saúde. It's premium, right? Very good, André.

Thank you, Ivan. Thank you, Carlos. The next question comes from Eduardo Nichil, from Genial. Nichil, good morning.

Good morning, André. Good morning, Marcelo. Good morning, Cassiano. Regarding the credit cycle, I would like to take the physical person and SME as the verticals for you to comment. We saw a very good performance of SME, both in the part of inadimplency and growth, and it has an effect that one helps the other. I would like to know if you still see room for improvement in the SMI inadimplency and perhaps in the individual as well. Looking at some pairs, despite the improvement, your inadimplency is still superior to some pairs. I would like to know if there is still room for improvement, in what stage of the balance cleaning cycle are you? If you have already cleaned everything and you are now already going to growth, right? The 2021 cycle that impacted both the physical person and SMI in a way. I would like to know if you have already done this cleaning and if you are ready to grow again and if there is still room for improvement in the

André, I think you can start, and I'll add something. Thank you.

Thank you, Nishio. So, first, about our over 90, which was 4.1 in September, the base scenario, 4.1 in December. Small deviations in relation to this natural number, but base scenario, absolute stability of our inadimplency in the aggregate. In S&M specifically, Marcelo has been highlighting a lot, first, our caution, the concentration in lines with collateral, capital of turnover, Unreceivable discounts, rural credit with collateral. As we have been maintaining this discipline, the new safras are having a very good performance and that is what is bringing the unemployment down. So it can fall a little more, it can fall a little more, but the base scenario is of a certain stability, given the economic deceleration that we have ahead. So I think this is an important aspect. In the restructured portfolio, you saw, as Marcelo showed, in 12 months the problematic part of it receded almost R$ 10 billion. So an important cleaning has already been done, but it is still possible to continue doing the risking here of our credit portfolio.

Well, Nishio, thank you for your questions too. I'll just complement André here by saying that at SMI I still see a drop in inadimplency, yes. In the whole project, everything is very well controlled, right? But in the physical person, for example, if I look at the horizon, not for this trio, I'm looking at the horizon already from 2026, it depends on the mix of modalities that we have, right? So, I said that In the year, the market grew more than we did in vehicles, for example. But in the tri, we started to grow more than the market. So, in the mix, you can even have a level of inadimplency a little higher. Eventually, folks, I'm not saying there isn't. So, if you change the mix of vehicles, for example, grow more than in the consigned, for example, right? So, you can have this balance The next question comes from Tito Labarta from Goldman Sachs.

Tito.

Thank you, Andre. Good morning, Marcelo. Thank you for taking my question. My question, you've talked a little bit about growth and you're growing in some segments where you feel more comfort, particularly more than secure lines and the other segments you're not growing, but you may increase your risk appetite going forward. Marcelo, if we go back, you know, after you became CEO, part of your strategic plan was to potentially increase market share and loans. from the 14% to maybe 15% to 19%. Since then, your market share is still relatively stable. Just thinking, how important do you think it will be to increase your market share in order to keep improving profitability? Or should the focus be more maybe focus on the segments that are more profitable, where your overall market share maybe matters less? Just how should we think about your ability to gain market share from here? and how important that will be for you to improve your profitability going forward.

Thank you. Cassiano, you start and I'll finish here, regarding the plan, right? Yes.

Do you want to start?

You can start. When we announced the ambition to increase the credit market share by 14% to the range of 15% to 19%, it was last February, it was a five-year plan. And in these five years, of course, we have to take into account the economic context. At that time, interest rates were falling, and what we saw next was an increase in the Selic to 15%, and at this moment we are seeing the deceleration of the Brazilian economy as a consequence of this monetary pressure. So, considering the economic context, it is time to keep the risk appetite at bay. As the interest rate starts to fall next year, The financial conditions of the companies, of the families, are improving. Naturally, the risk appetite of the banks is gradually increasing and we can fight for an increase in market share in a more vehement way. At this moment, be careful and, as Marcelo said, we will make a very line-by-line approach here, where we have the opportunity, as capital of the turn, FGI and FGO, have the opportunity to gain market share, let's fight for this market share, a good quality line, high RAR, we want to increase our participation here. So, in all the lines that we have these opportunities, we will grow, market share in the short term is not the goal itself, the goal is to increase profitability consistently.

That's what I was going to add, that's it. Well, so I add here, Tito, thank you for your question. When I look ahead, we continue with the ambition of winning and staying in that interval that we showed in the plan. Now, what do I see on the shorter horizon here? We had a good growth. If we hadn't, as I commented here in the presentation, dropped the portfolio of large companies, we would have grown more than 10%, right? But here, where we are more tracked and have the ability to effectively make a share. So, the credit card assigned to the physical person, we have, it represents almost 15% of our portfolio, right? And we will make a share here. Real estate credit, together, you can even have a bank or another that can earn a little more than market share, but we will also earn share here in real estate credit on both sides, business plan, in the physical person, keeping there also a significant portion of this set, which I said we have almost 20% of share there. um good relationship and good appetite here to do in the physical person and in the legal person. And on the legal side, you have different categories with receivables, these lines of FGI and FGO, that we were very good so far this year. We continue to have space for growth and share gain. I can tell you that we have been gaining share in SMI, as I showed here in our presentation. So there is room for us to grow. In SME, in this capital of Giro, always with guarantee. In business plan, also. In rural, idem. In heavy and vehicles, idem. So we have these lines Prioritarily as lines that are focus for us here inside the organization. But the idea is that at the end of 2028, we can be in that interval that we presented in the transformation plan. So I'm very confident in this traction of us, but with choices. um apetite a risco adequado, com modelos adequados, gestão de portfólio e crescimento em modalidades que a gente consegue tracionar, penetrar muito pelo digital, muito também pelo mundo físico e a gente vai em frente aqui para tentar... exactly to gain more participation with risk-adjusted return. I also talked about vehicles, complementing that we were growing less than the market, we grew more than the market in the last three, but always with risk-adjusted return.

Tito, thank you. Thank you, Tito.

First of all, I'd like to thank you, André Cassiano, and all the colleagues who are here with us in our studio in the City of God. I'd like to thank the entire Bradesco team, all the collaborators who are here, the team that is very engaged by all the work that has been done, from the technology area to each segment of customers, passing through all the cross areas in our organization, including our allies, the insurance group, partners, Bradesco Finance, and so on. And I would like to thank you, the analysts here at Celside, who have always been interested in participating in our event. We are always open here with the DRI team, with me too, with Cassiano, to talk about the results, our perspectives. And also Byside, who also accompanies us. Clients who are watching us right now. So I thank you all. Again, I highlight my confidence in everything we've been doing. Forgive me again for the avatar, for the video. We ended up asking Bia for a joke. They made my avatar here, André left it. But next time, I promise you that there won't be this avatar here. But guys, let's go forward. We have a lot of confidence that we will deliver a next tri also up. A hug to everyone and have a good weekend. Have a good week, actually. A hug.

Thank you, thank you.