Itau CorpBanca

Good morning, ladies and gentlemen. Welcome to Itaewoo Unibanco Holdings Conference Call to discuss 2020 second quarter results. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. Questions can be submitted via telephone by pressing asterisk 1 or via WhatsApp mobile app by scanning the QR code provided, or WhatsApp desktop app through the hyperlink provided. If you should require assistance during the call, please press the star key followed by zero. As a reminder, this conference is being recorded and broadcasted live on the Investor Relations website at www.itau.com.br slash investor dash relations. A slide presentation is also available on this site. Before proceeding, let me mention that forward-looking statements are being made under the safe harbor of the Securities Litigation Reform Act of 1996. Actual performance could differ materially from that anticipated in any forward-looking comments as a result of macroeconomic conditions, market risks, and other factors. With us today on this conference call in San Paolo are Mr. Candido Brancher, President and CEO, Mr. Milton Moley-Fido, Executive Vice President, CFO and CRO, Mr. Alexandro Boydel, Executive Director, Group Head of Finance and Investor Relations, and Renato Lulia Jacob, Head of Investor Relations and Market Intelligence. First, Mr. Candido Bransher will comment on 2020 second quarter results. Afterwards, management will be available for a question and answer session. It is now my pleasure to turn the call over to Mr. Candido Bransher.

Thank you for taking time to attend to our 2020 second quarter earnings call. I hope you're all well and safe. Let us now please move to slide number two. I'd like to start by briefly discussing the macroeconomic backdrop which influenced our performance and the management strategy during this trying period. So we have just been through what can arguably be considered the worst quarter in Brazilian history from a macroeconomic point of view. This becomes evident in our expectation of a GDP contraction of just over 10%. as well as in the extinction of around 1.3 million formal jobs in this period. To face the scenario, government reacted and cut interest rates to new historical lows, 2.25%. Additionally, to this date, it has injected approximately 370 billion reais into the economy, roughly 5% of GDP. This very complex dynamic can be seen in the charts at the bottom of the slide. where we plot the daily variation of the Itaú Economic Activity Index. This index was built upon the high-frequency data that we gathered from our credit and credit card transactions and enabled us to monitor the economy reactions close and granularly. The economic activity bottomed out at the end of March with a 45% contraction when compared to pre-pandemic levels. we have already seen encouraging signs of a recovery over the following months. And last week's data showed that we are already at 90% of pre-COVID-19 activity levels.

Moving to the next slide now.