Banco Itau Chile ADR

Ladies and gentlemen, thank you for standing by and welcome to the Banco Itau Chile second quarter 26 financial results conference call. This presentation and the earnings release are available on our Investor Relations website. During the company's presentation, all microphones will be disabled. Later, we'll begin the Q&A session. To ask questions on audio, click on Raise Hand. Once called upon, you'll receive a request to activate your microphone. Please activate it to ask the questions. For questions in writing, just cue the question in the Q&A button. Please beware that your company's name should be visible for your question to be taken. I will now like to turn the conference over to Matias Venezuela, Head of Planning and Corporate Strategy.

Good morning, everyone, and thank you for joining our second quarter earnings conference call. I would like to note that the voices used in this presentation were generated using artificial intelligence. My name is Matias Valenzuela, head of planning and corporate strategy at Itau Chile, and I am joined today by our CEO, Andre Gailey, our CFO, Emiliano Muratore, and our chief economist, Andres Perez. I would also like to remind you that this presentation may include forward-looking statements. Itau Chile ADR

Good morning everyone and thank you for joining us today. Let me begin with the key developments of the quarter. We maintained strong commercial momentum with growth in both loans and deposits, outpacing the Chilean banking industry. Itau Chile ADR In Chile, improvements across our main revenue lines helped offset the more challenging conditions seen earlier in the year. At the consolidated level, Colombia's higher profitability made a meaningful contribution to our results. In June we received approval from the Competition Authority for the acquisition of CLAP followed by approval from the CMF in July. We expect to begin consolidating the business during the fourth quarter of this year. The acquisition will strengthen our payments and merchant acquiring capabilities. Broaden our presence across the merchant ecosystem and create new opportunities to deepen client relationships, generate fee income and leverage transactional data to develop new financial solutions. Itau Chile ADR Finally, Extel once again ranked us first for best research team in Chile. Itau BBA also secured the top position in both Latin American macro research and Latin American research. These recognitions underscore the quality of our teams, the depth of our analytical capabilities, and the value of the insights we provide to clients and investors across the region. Let me now turn to Colombia and provide more detail on the divestment of our retail banking business. Before the transaction, our Colombian retail business operated with a market share below 3%. This limited scale constrained our ability to dilute costs, acquire clients efficiently, and generate returns in line with our cost of capital. Even under a reasonable operating scenario, we estimated that the previous business model would generate an ROE of between 5% and 10%, compared with a cost of capital of approximately 15%. Since announcing the agreement in December 2025, we have executed each stage according to plan. On July 28, we completed a capital increase of approximately US$75 million in our Colombian operation. From a consolidated perspective, this represents an internal relocation of capital rather than an additional economic cost for the group. In July, we also recognized approximately US$158 million in non-recurring expenses associated with the transaction. Effective August 1st, approximately US$2,011 million in assets and US$1,499 million in liabilities were transferred at book value. As a result, we received approximately US$512 million in net cash proceeds, with no economic discount applied to the net assets transferred. while releasing close to US$1,185 million in risk-weighted assets. For the remainder of 2026, we expect to incur approximately US$18 million in additional nonrecurring expenses, mainly related to completing the separation and transition activities. As part of the separation, Itau entered into a transition services agreement, under which it will temporarily provide certain operational and support services through the end of 2026. This arrangement will ensure business continuity and facilitate an orderly migration following the transfer of the retail portfolio. Itau Chile ADR Itau Chile ADR Itau Chile ADR Itau Chile ADR The transaction creates value through three main channels. First, it reduces the capital allocated to a business generating returns structurally below our cost of capital. Second, it improves the expected return on the capital that remains invested in Colombia by concentrating resources on businesses where we have stronger capabilities and competitive advantages. It increases our financial flexibility and strengthens the management of capital, liquidity, and balance sheet risk. From a balance sheet perspective, the divestment reduces structural mismatches by better aligning the duration and composition of our assets and liabilities. With the longer duration retail portfolio transferred, the remaining corporate loan book will have a shorter duration allowing us to manage liquidity and interest rate exposure more efficiently. Itau Chile ADR Itau Chile ADR Under our current profitability assumptions, we estimate an economic payback period of approximately three to four years. Overall, this repositioning should result in a more focused, flexible, and structurally profitable Colombian franchise with a clearer path toward returns consistent with our cost of capital. With that, I will hand the floor to Andres Perez, who will walk us through the macroeconomic outlook for Chile and Colombia. Good morning, Andres.

Good morning Andre, good morning everyone. On this slide I will provide a brief overview of Chile's recent economic performance and outlook. Economic activity remained weak during the second quarter, extending the softer momentum observed at the beginning of the year. The weakness reflected temporary disruptions in specific sectors, together with subdued credit growth, fragile labor demand, and weaker household confidence. Itau Chile ADR Itau Chile ADR We expect the central bank to maintain the monetary policy rate at 4.5% through 2026 and 2027. This level allows the bank to balance renewed inflation risks against still weak activity while retaining a data-dependent approach to future decisions. On the currency front, we forecast the Chilean peso at approximately 900 Chilean pesos per US dollar at the end of 2026 and 880 Chilean pesos at the end of 2027. The currency may continue to face pressure from narrow interest rate differentials with the United States and swings in global risk aversion. Even so, strong copper prices and a sizable trade surplus provide an important external buffer. In summary, the Chilean economy continues to face a demanding near-term environment characterized by weak activity and renewed inflationary pressure. At the same time, stronger investment fundamentals and progress on pro-growth reforms support a more constructive medium-term outlook. Turning now to Colombia. Economic activity was stronger than expected during the second quarter, supported by resilient domestic demand, services, and manufacturing. Consumer confidence reached its highest level in a decade, while retail sales, imports, and consumer lending continued to show solid momentum. Consequently, our macro research team revised its 2026 GDP growth forecast upward to 2.5% from 2.3%. Itau Chile ADR Despite the stronger activity, the inflation outlook remains challenging. Annual inflation reached 6.1% in June and is expected to rise further, ending 2026 at approximately 7.5%, mainly due to persistent services inflation and higher food and energy prices associated with El Nino. Inflation is then expected to gradually decline to 5.8% in 2027, remaining above the central bank's 3% target. This backdrop implies that monetary policy will remain restrictive for longer. Following the 75 basis point increase in June, which brought the policy rate to 12%, we expect Banrep to continue tightening and reach a terminal rate of 13% during 2026, although risks lean toward a lower terminal rate. A gradual easing cycle is expected thereafter, with the policy rate declining to approximately 11.5% by the end of 2027. For the Colombian peso, we forecast an exchange rate of approximately 3,400 Colombian pesos per U.S. dollar at the end of both 2026 and 2027. The recent appreciation has been supported by high interest rate differentials and a decline in the country's risk premium. Even so, fiscal execution remains an important variable to monitor as the incoming administration begins implementing its consolidation strategy. In summary, Colombia combines stronger than expected economic activity with persistent inflationary pressures and restrictive monetary conditions. This environment reinforces the importance of disciplined risk management and supports our strategic focus on more resilient and capital-efficient businesses in the country. Emiliano Muratore, our CFO, will now continue the presentation. Good morning, Emiliano.

Thank you, Andrés, and good morning, everyone. I would like to begin with a few highlights in digital innovation, culture and market recognition. Starting with digital innovation, we continue to enhance the client experience through new capabilities. For individual clients, we introduced voice-activated bank transfers in our app, making everyday transactions simpler, faster and more intuitive. We also launched the new Itau Empresas app, providing corporate clients with a simpler, faster, and more secure experience together with enhanced self-service capabilities. Culture remains a fundamental enabler of our strategy. For the third consecutive year, Itau Chile was recognized as one of the best places to work for LGBTI plus talent by Equidad CL, Pride Connection, and the Human Rights Campaign. In addition, employee satisfaction reached 85% in June, 2026. Itau Chile ADR Itau Chile ADR Itau Chile ADR The transaction reinforces our commitment to supporting clients in achieving their sustainability goals and demonstrates our ability to deliver financial solutions linked to measurable targets. The market also recognized the strength of our businesses and teams during the quarter. Euromoney named us Chile's best investment bank for DCM while our asset management subsidiaries received three awards at the 2026 Premios Salmon. As Andre noted, Extel ranked us first for best research team in Chile, while Itaú BBA secured the top position in both Latin American macro research and Latin American research. Together, these recognitions highlight the quality of our advisory capabilities, the depth of our market expertise, and the value we provide to clients and investors. Turning now to loan growth in Chile. Itau Chile ADR Looking at the segment breakdown. In commercial lending, the portfolio grew 9.5% year on year and 2.2% quarter on quarter compared with industry growth of 3% year on year. This was the third consecutive quarter in which we outperformed the industry on both a year on year and quarter on quarter basis, supported by stronger client activity, sustained origination, and deeper relationships across our target segments. Itau Chile ADR Itau Chile ADR supported by our mortgage value proposition and high participation in the Fondo de Garantias Especiales program. Turning now to our funding base and assets under management. On the funding side, deposit growth remained strong. Deposits continue to be a central pillar of our strategy and an important driver of deeper client relationships. In Chile, demand deposits grew 12.8% year-on-year, significantly outperforming both the banking system, which expanded 7.1%, and our peer group, which grew 6.1%. This positioned us as the leading bank within our peer group in demand deposit growth over both the last three and 12 months, reflecting continued progress in our Principality strategy. Growth was broad-based across client segments. Demand deposits from individuals increased 5.9% year-on-year above the system's 3% growth, while deposits from companies expanded 16.7%, well above the industry's 9.2%. Time deposits rose 15.5% year-on-year compared with 4.3% for the system. This result reflects our disciplined funding strategy and ability to maintain a balanced and diversified deposit mix. Assets under management increased 12.0% year on year, supported by sustained net inflows and favorable commercial activity. We also continue to diversify our funding sources and expand our access to international markets. During the quarter, we completed our first international public bond issuance under our MTN program, denominated in Swiss francs. The issuance broadened our global investor base, provided access to a new currency and market, and increased the flexibility and resilience of our funding structure. The next slide summarizes our main performance indicators for the quarter. Our consolidated loan portfolio reached 30.8 trillion Chilean pesos, up 3.4% quarter over quarter and 11.3% compared with the second quarter of 2025. In Chile, loans totaled 25.2 trillion Chilean pesos, increasing 2.4% quarter-over-quarter and 9.6% year-over-year, reflecting continued commercial momentum across our portfolios. Consolidated financial margin with clients reached 335.7 billion Chilean pesos, increasing 5.8% quarter-over-quarter, While in Chile, it rose 3.5% to 254.3 billion Chilean pesos. Commissions and fees increased 19.1% quarter over quarter at the consolidated level and 17.1% in Chile. Cost of credit remained broadly stable. At the consolidated level, it decreased 0.6% to 75.0 billion Chilean pesos, Itau Chile ADR Itau Chile ADR Itau Chile ADR In Chile, recurring net income rose 25.0% to 89.4 billion Chilean pesos. This drove recurring return on tangible equity up by 3.4 percentage points to 11.4% at the consolidated level and by 2.5 percentage points to 11.6% in Chile, reflecting stronger earnings momentum during the quarter. Turning to financial margin with clients in Chile, it increased 3.5% quarter over quarter to 254.3 billion Chilean pesos, although it declined 3.2% year over year, resulting in a net financial margin with clients of 3.2% for the period. Itau Chile ADR Itau Chile ADR Itau Chile ADR The quarterly improvement was driven mainly by higher average loan volumes and wider spreads in the corporate segment. The funding mix also contributed positively supported by growth in demand deposits while derivatives management and client FX transactions delivered solid results. The year-on-year decline was primarily explained by narrower loan spreads and the lower average monetary policy rate. These pressures were partly offset by stronger derivatives and FX activity with clients. Taken together, the quarter showed a recovery in client-related revenues, supported by stronger commercial activity and a more favorable funding mix. Even so, margins remained below the levels recorded in the same period last year. Turning to financial margin with the market, the result remained negative at 2.4 billion Chilean pesos, but improved materially from the 8.9 billion Chilean pesos loss recorded in the first quarter. Throughout the first half of the year, the banking book delivered consistent results, reflecting disciplined management of our fixed income positions. However, this positive contribution was more than offset by trading performance, which continued to be affected by a volatile market environment. For the second half of the year, we expect the banking book to remain a stable contributor. Our priority will be to restore profitability in trading while maintaining disciplined risk management. Turning now to commissions and fees. Fee income reached 49.6 billion Chilean pesos in the second quarter, increasing 17.1% quarter over quarter and 3.6% year over year. The recovery was broad-based and supported by stronger commercial activity across most of our key businesses. Insurance brokerage revenues increased 47.5% quarter over quarter, driven by higher income from consumer credit related insurance. Fees from credit operations and guarantees grew 5.3%, supported by stronger trade finance activity and greater momentum in the commercial segment. Financial advisory and other fees increased 18.4%, reflecting higher transaction activity and improved credit card revenues. Asset management fees rose 6.4% quarter over quarter and 18.7% year over year, supported by growth in assets under management. Commissions therefore represented 16.4% of operating revenues during the quarter, up from 15.2% in the first quarter. This higher contribution supports a more diversified revenue mix and reflects continued progress in deepening client relationships across our businesses. Turning to cost of credit, it totaled 58.4 billion Chilean pesos in the second quarter, remaining broadly stable quarter over quarter and declining 11.3% year over year. The cost of credit ratio remained at 1.0% at the lower end of our guidance range. The quarterly evolution reflected higher provisioning associated with stronger loan growth in Itau Corporate. This was partially offset by lower provisions related to rating adjustments and changes in collateral, Itau Chile ADR Itau Chile ADR Itau Chile ADR The total NPL ratio closed the quarter at 1.9%, broadly stable and below the level recorded one year ago. Consumer NPLs increased moderately due to higher short-term delinquency, but the portfolio continues to show a structurally improved risk profile, supported by a healthier client mix and lower levels of refinanced and renegotiated loans. Commercial NPLs continued to improve, while the mortgage delinquency ratio remained stable despite the strong growth of the portfolio. Finally, the NPL coverage ratio increased to 139%, reinforcing the strength of our provisioning position. Turning now to non-interest expenses. Non-interest expenses totaled 140.4 billion Chilean pesos in the second quarter, increasing 4.3% quarter over quarter and 5.0% year over year. Personnel expenses increased 3.2% quarter over quarter, mainly due to higher severance costs associated with headcount reductions, performance bonuses, and inflation adjustments. IT and telecommunications costs and operational losses. Year over year, the more moderate increase of 1.6% mainly reflected higher marketing expenses, operational losses, and IT-related services. Revenue growth outpaced the increase in expenses during the quarter, driving a 168 basis point sequential improvement in our efficiency ratio to 46.6%. We remain focused on disciplined cost management and structural efficiency while continuing to invest selectively in technology and the capabilities needed to support our growth strategy. Turning to Colombia, our operation delivered a significant improvement in the second quarter. On a constant currency basis, total financial margin reached 104.4 billion Chilean pesos, up from 85.9 billion Chilean pesos in the previous quarter. The result was supported by financial margin with clients of 86.5 billion Chilean pesos and a strong 18.9 billion Chilean pesos contribution from financial margin with the market. Commissions and fees rose to 11.1 billion Chilean pesos supported by stronger advisory activity during the quarter. Higher revenues and disciplined cost management drove the efficiency ratio down to 53.5%, its lowest quarterly level in recent periods, and a significant improvement from 64.4% in the first quarter. This translated into recurring net income of 20.4 billion Chilean pesos, up from 5.1 billion Chilean pesos in the previous quarter. Recurring ROE reached 10.6%, reflecting a significant improvement in the profitability of our Colombian operation. Turning now to slide 16, our capital position remains strong, supported by disciplined capital management and consistent earnings generation. As of June, our CET1 ratio stood at 11.5% following the payment in April of dividends equivalent to 60% of 2025 net income. Even after the distribution, our capital ratios remained within the bank's risk appetite. Our CET1 ratio also remained above the 11.2% median of our peers, leaving sufficient capacity to support sustainable business growth and execute our strategic priorities. In July, the CMF issued a second draft regulation for public consultation, proposing changes to the methodology for measuring market risk-weighted assets. Based on the regulator's estimates, these changes could reduce market risk-weighted assets across the Chilean banking system by up to 36%. While the ultimate impact will depend on the final regulation and each bank's portfolio composition, the proposal could improve capital efficiency across the Chilean banking system. Turning now to the performance of Itau Chile's stock. Over the last 12 months, our shares delivered a cumulative return of 63.4%, outperforming both the 52.9% weighted average return of our peers and the 34.6% return of the IPSA. The share price increased from 12,900 Chilean pesos at the end of June 2025 to 21,000 Chilean pesos as of July 31st, 2026. Over the same period, our price to tangible book value multiple expanded from approximately 0.8 times to 1.2 times, reflecting growing market recognition of our progress in profitability, capital discipline, and strategic execution. We also broadened our sell-side coverage with Bank of America initiating research coverage of our shares. The addition should further increase the visibility of our investment proposition, deepen engagement with investors, and support the liquidity of our shares. On the final slide, let's review our performance against our 2026 guidance for Chile. Loans grew 9.6% year over year as of June, above our 6% to 8% guidance range, and reflecting sustained commercial momentum across our priority portfolios. Itau Chile ADR The sequential improvement observed in the second quarter, together with a more favorable outlook for spreads, supports better prospects for the second half. Commissions and fees grew 3.3% year to date, remaining below our full year guidance of 12% to 14%. However, the 17.1% quarterly recovery reflects stronger commercial activity and improved momentum across our main fee generating businesses. Itau Chile ADR Non-interest expenses increased 2.8% year-to-date, above our guidance of approximately 2%, mainly reflecting specific personnel and administrative items. Looking ahead, we expect the expense base to remain well-controlled through year-end, with full-year growth ending in line with our guidance. Itau Chile ADR Itau Chile ADR Itau Chile ADR Itau Chile ADR If the legislation is enacted under the terms currently proposed, we estimate a non-recurring impact of approximately 30 billion Chilean pesos to 40 billion Chilean pesos. Finally, ROTI reached 10.4%, below our 12% to 13% guidance range. Itau Chile ADR To conclude, the second quarter delivered solid business growth, a meaningful recovery in earnings, and continued progress across our strategic priorities. We entered the second half of the year with a stronger franchise, a sound capital and funding position, and confidence in our ability to continue generating sustainable value for our clients, employees and shareholders. This concludes today's presentation. Thank you for your attention and continued trust in Itau Chile. We will now be happy to take your questions.

To ask questions on audio, click on Raise Hand. Once called upon, you'll receive a request to activate your microphone. Please activate it to ask the questions. For questions in writing, just cue the question in the Q&A button. Please beware that your company's name should be visible for your question to be taken. Please wait as we compile the questions. Our first question comes from Ernesto Gabilondo with Bank of America. Your microphone is open.

Thank you. Thank you, Matias. Hi, good morning, Andre, Emiliano, and Andres. And thanks for the opportunity to ask questions and congratulating your results. My first question is on the tax reform. So if we assume a normalized inflation of 3% over the next years, how should we think about the evolution of your effective tax rate with this new tax reform? And my second question is on your return on tangible expectations for the year. As you pointed out, you're still expecting something around 12 to 13% for the year. The return on tangible equity stood at 10% in the first half. So just wondering what will be the drivers to reach your guidance, how comfortable do you think it could be, I don't know, between the low or the high end of the range. And also after the completion of the sale of the Colombian retail banking business, How do you see that helping to improve the sustainable return on tangible equity on a consolidated basis? I know you're guiding that you are currently in Colombia at a 5% and that it could go in the next three, four years to a much higher ROE, but on a consolidated basis, how should we think about that helping you to think about your long-term return on tangible equity? Thank you.

Hello, can you hear me?

Yes, perfect.

Hello, this is Emiliano. Thank you for your question. First, regarding effective tax rate for 2027, as you pointed out, so inflation going down would take the effective tax rate up, but now with the with the fiscal reform or the reform that the government is passing in Congress that should tend to balance out and to have more like a flat effect on effective tax rate with the It's also worth noting that this year we have the negative effect on deferred tax assets of the reform that we estimate to be between 30 to 40 billion pesos in tax for 2026. It will be like a one-off and then we will benefit from the

Itau Chile ADR Itau Chile ADR Itau Chile ADR Itau Chile ADR

regarding the drivers for second half ROE I would say the main driver is financial margin with the market kind of normalizing to a more long term Itau Chile ADR 12-13% range as of now so you can kind of take a midpoint of the best guest today but still some months to go and to see how high or low we are and regarding Colombia I know Andre if you want to comment

The overall impact on the banks ROE will depend on the size of Colombia. With the elections in Colombia, we expect the opportunity to grow the operation there. We also have the challenge to reduce our costs and to reach a better efficiency ratio in Colombia it will be a gradual process but looking at a longer turn that will help Chile and Colombia the consolidated to have an ROE that we expect to be above the 15% consolidated ROE in line or above excellent now this is super helpful thank you very much Andrea and Emiliano

Our next question comes from Alonso Aramburu with BTG. Your microphone is open.

Yes. Hi. Thank you for the call. Good morning. I just wanted to follow up on the comments regarding Colombia and your guidance for 2028 of 10% to 15%. We just wanted to see if you can give us some color on how to bridge where you are today to that 10% to 15%. So how should we think about Itau Chile ADR

The two main drivers, as I mentioned, is the scale and efficiency. The first is to grow the portfolio. And we believe that Colombia has a positive trend over the next years. And we as a niche corporate and market actor will be able to grow above the market and that will allow us to dilute the current cost structure that we have. And the other hand, even though we made significant efficiencies and are making during 2026, we will have additional efficiencies to be made during 2027 and 2028. So that will help us both by growing revenues and by reducing costs to increase our utilities and to during those two years to grow our ROE consistently. So that's the main plan. I think that when we look at the variables, I think everything is in place for us to follow that path

Okay, thank you. But is it fair to say that the profitability of the business following the divestment of these assets and liabilities, loans and deposits, is already more profitable or is still a similar profitability to what you had in the last couple of quarters, what you have today in Colombia?

The current corporate operation in Colombia is already above our cost of equity. The problem is that we have now to dilute all the other costs that are now borne only by the corporate transaction, the corporate operation. So we believe that over time we'll be able to grow and dilute costs and that will help us to quickly reach the ROEs we mentioned before.

Okay, thank you.

Our next question comes from Daniel Mora with Credicorp. Your microphone is open.

Hi, good morning. Thank you for the presentation. I have a couple of questions. The first one is very simple regarding the Colombian operation. Do we expect additional non-recurring expenses in 2027 or all the non-recurring expenses will be executed in this year in 2028? That will be my first question. And the second question, it's regarding fees, observing that the fees have been below guidance. What will be the drivers that you expect to improve the net fee grow in Chile in the second half of this year? Do you expect insurance brokerage and also financial advisory to keep the positive momentum that we observe in the second quarter? Thank you so much.

Hello Daniel thank you for your question first regarding non-recurring in Colombia basically no I mean we don't expect any further non-recurring beyond 2026 so all the non-recurring will be recorded most of them already in July and the rest in the coming months of 2026 but no no no further for the future and regarding fees I would say basically two drivers first advisory fees I mean all the corporate finance M&A DCM pipeline is very strong even though it hasn't already been reflected in the actual results in the first half but we do have a Itau Chile ADR Itau Chile ADR Itau Chile ADR and third, the good growth in the number of clients going forward.

Perfect, thank you. Very clear. Just one last question regarding fees. The insurance brokerage that we observed in the second quarter presented any non-recurring positive effect or should we expect this line to continue presenting the results that you already presented in the second quarter?

Yes, there was around like 3.5 billion pesos one-off effect regarding a model we have for provisioning the fees we charge when we grant a loan and then some of them we need to pay them back when the client prepays the loan. Itau Chile ADR Itau Chile ADR Itau Chile ADR

Okay, perfect. Thank you so much. Very clear.

Our next question comes from Yuri Fernandes with JP Morgan. Your microphone is open.

Hi, everybody. Good morning. Good afternoon. Thank you for the opportunity of asking questions. I have one regarding margins. They spread from clients in Chile. It's tracking below your guidance. Just checking if you believe you can go to the guidance here. Second cue is kind of the inflection point and things should improve. So any view on... And again, this is not the market NII, just the client NII that has been tracking lighter. And then I have a second one regarding your cost of risk, right? Because this is on track. This is doing fine. But we note some higher NPLs on consumers in Chile. So just checking if like given the economic outlook should be better if you're also comfortable with your cost of risk guidance. Thank you.

Hi, Yuri. Thank you for your question. I mean, starting with the second one, yes, I mean, we are pretty comfortable with the guidance in cost of risk. I mean, all the work we have been doing in the consumer portfolio, reducing the restructure and refinance is basically showing in the cost of risk numbers. And we are confident with the one to 1.1 and maybe even Itau Chile ADR Itau Chile ADR Itau Chile ADR And in terms of clients, Nim, basically what we took us below our range in the first half is the competitive environment, especially in commercial lending, where we have seen a strong competitive pressure. Going forward, we expect to be within the range, closer to the bottom part of the range for the year, basically because, as I said before, the Itau Chile ADR Itau Chile ADR Itau Chile ADR Super clear. Thank you very much.

Once again, to ask questions on audio, please click on Raise Hand. For questions in writing, just cue the question in the Q&A button. Please beware that your company's name should be visible for your question to be taken. Please wait as we compile the questions.

Yes, there's a question from Antonio Janes regarding how the non-recurring cost of the Colombia transaction would affect dividends. I mean, as we pointed out before the transaction, in terms of capital ratio, the transaction in Colombia, it's kind of neutral because even though we have a lower net income ratio, Itau Chile ADR The payout ratio on the basically all-in net income should be significantly higher and to have a payout on the recurrent part in line with the 50 to 60% that we paid last year.

Our next question is also from Daniel Valenas and it's the following. Given the retail plus retail fees, would you no longer record from day one while the OPEX reduction should be gradual? Should we expect negative earnings from Colombia in 2027 as a transition year?

So I'm not sure if I understood the question. Let me read it. So first, there's a question regarding the impact in July in terms of P&L. Basically, all of it, the $160 million, it's impacting P&L in July. The capital injection is kind of indirectly related to the transaction because it has to do with the P&L impact of the transaction because as I said before the P&L impact is counterbalanced by the reduction in Itau Chile ADR And the OPEX reduction for Colombia, I would say that even though there is a gradual transition in terms of efficiency cost, efficiency ratio, as Andres mentioned before, in general, let's say just the one-off we are paying now in July will affect cost immediately starting in July. in August and there is some further efficiency to capture during the next 12 to 18 months but most of it will impact immediately.

Once again, to ask questions on audio, click on Raise Hand. For questions in writing, just cue the question in the Q&A button. Please wait as we compile the questions. Thank you. This concludes today's presentation. You may disconnect now and have a very nice day.