Grupo Supervielle S.A.

Good morning, everyone, and welcome to the Grupo Supervielle Second Quarter 2023 Earnings Call. This is Ana Bartesaghi, Professor and IRO. A slide presentation will accompany today's webinar, which is available in the Investors section of Grupo Supervielle's Investor Relations website. Today's conference call is being recorded. As a reminder, all participants will be in listen-only mode. There will be an opportunity for you to ask questions at the end of today's presentation. If you want to ask a question, you need to be connected to a Zoom platform from any device. We will not be able to answer questions if you are connected from a phone line. Also, please make sure your first and last name appear in the Zoom platform you are using. You will be able to ask a question by voice or send questions in written form via the Q&A box in the Zoom platform. any time during the call. Speaking during today's call will be Patricio Supervielle, our chairman and CEO, and Mariano Biglia, our financial officer. Also joining us is Alejandro Stengel, first vice chairman of the board and CEO at Banco Supervielle.

All will be available for the Q&A session.

As a reminder, today's call will contain forward-looking Statements based on management's current expectations and beliefs and subject to severe risks and uncertainties. I refer you to a forward-looking statement section of our earnings release and recent filings with the SEC. We assume no obligation to update or revise any forward-looking statements to reflect new or changed events or circumstances. Patricio Supervielle, our chairman and CEO, will start the call discussing the key highlights for the quarter and priorities for 2023, as well as an update on macro views for this year and 2024. Afterwards, Mariano Biglia, our CFO, will take a deeper look at our performance and near-term perspectives. This will be followed by a Q&A session. Patricio, please go ahead.

Thank you, Ana. Good morning, everyone. Thank you for joining us today. I will begin my presentation with slide three. We continue executing our strategic plan while navigating complex macro and political environment with weak loan demand. The momentum that we saw at the beginning of the year continued through the second quarter with profitability across all business units. Our program is on track with ROE improving to 18% in real terms in the quarter. For the first half of the year, ROE increased to 10% from a negative 6% in the same period last year. Our results for the first half reflect strong asset and liability management, prudent approach to lending, and significant progress in streamlining operations. This resulted in revenue growth, healthy asset quality, significant improvement in operating efficiency and profitability. We continued deepening our transformation, driving digitalization and innovation while capturing customers beyond our physical footprint. Starting June 3rd, we were the first bank in Argentina to expand the timeframe for money market investment to 24-7. and many more. As we look to the remainder of the year, our key priorities include continued focus on profitability and cross-selling products to existing customers. In particular, we are cross-selling Insurance, Investment Products, and Cash Management Services, while also driving loans above market growth. Invertir Online, our online brokerage business, continues to deliver very strong performance, active customers, double year-to-date, with assets and the management up 49% in real terms since December last year. Second, we're closely monitoring market conditions and managing assets and liabilities to protect financial margins and the Group's Capital and continued with a prudent credit risk approach. Our shareholder equity remained fully hedged against inflation while we are also long in US dollars. Now please turn to slide four. Foreign exchange reserves have continued to decline further impacted by the negative commercial balance while the central bank continued to increase the reference interest rates on the bank On the back of accelerated inflation. After the primary elections, the central bank devalued the peso by 22%. The reference rates of Lelics increased from 97% to 118%. Against this backdrop, the blue-chip swap rate experienced higher volatility, reflecting increased political uncertainty. According to certain early indicators, the pass-through effects of the exchange rate devaluation is anticipated to have further accelerated inflation in August and into September. In turn, the fiscal balance has deteriorated as revenues have been declining and expenses declined in real terms but at a slower pace than in previous months. The IMF original fiscal primary deficit target of 1.9% has been exceeded and is currently estimated to reach 3%. Turning to slide five. As we head towards the presidential election in October, let me share our macro views for the remainder of 2023 and expectation for 2024. Well, the government is maintaining a fiscal balance restraint. The recent piece of the evaluation has established a new and higher flow on inflation. On August 23, the board of the IMF completed the fifth and sixth reviews of the extended funds facility for Argentina, enabling an immediate disbursement of around $7.5 billion. The next review is scheduled for November 2023. In this context, we expect economic activity to continue falling in the second half of the year, leading to a GDP contraction of approximately 3% of the year. Looking to 2024, the primary elections suggest that a clear majority of Argentines favor fiscal and monetary normalization, which would lead to a growth scenario in the medium term as the economy stabilizes. We anticipate a significant increase in the country's commercial surplus driven by growing agricultural exports, higher energy production, and more favorable trade regulations. Contraction in economic activity is anticipated to continue during the first quarter of 2024, with activity levels turning to positive terrain in the second half. To conclude, we have a proven track record of operating in stable conditions and are certain of our ability to navigate through these challenges. While microeconomic headwinds are expected to persist as we move through the remainder of the year, we are well positioned to address these challenges. In the meantime, we maintain ample liquidity and safeguard our capital against inflation, which positions us well to rebound and resume growth once the economy stabilizes. With this, let me turn the call to Mariano. Please go ahead.

Thank you, Patricio, and good day, everyone. Please turn to slide six for an overview of our performance for the first six months of the year. As Patricio just noted, the consistent execution of our strategy has driven a positive swing in profitability in line with our expectations. Net income improved and many others. Our brokerage business also performed very well, driving fee income growth of slightly over 2%, or close to 500 million pesos. On the cost front, right-sizing and operating efficiencies initiatives implemented in 2022 contributed to a 9% decline in personal expenses, or 3.6 billion pesos. In addition, our tight focus on cost controls resulted in a mid-single-digit year-on-year reduction in administrative expenses and DNA equivalent to savings of 1.1 billion pesos. We also reported a good performance in loan loss provisions, down nearly 35%, or close to 3.3 billion pesos. together with growth in middle market financing. Lastly, other income losses declined nearly 6% or 736 million pesos, reflecting a drop in credit card benefits together with lower turnover taxes paid. Now, for a quick update on turnover taxes. There's more detail provided in our earnings release. Since 2021, the City of Buenos Aires started to tax income from Lelix and RIPOS with the Central Bank, and since 2023, the province of Mendoza did the same with Lelix. Before, these instruments were exempt, as they are issued by a national entity. As a consequence, the Central Bank filed a claim with the Supreme Court of Justice against the tax authorities from Buenos Aires and Mendoza, alleging that Lelix and monetary policy instruments and the Monetary Authority that can't be interfered with by a local government. In addition, both banking associations, ADEBA and ABA, and the majority of financial institutions operating in these three jurisdictions followed suit. Accordingly, we are not taxing the leaks in Buenos Aires and Mendoza since April and January this year respectively, following the opinion of our internal and external legal advisors. and approximately 500 BBS of ROE. This is in line with the central bank claim for the unconstitutionality of this tax and we believe it's in the best interest of our stakeholders. These contributions to profitability were partially offset by higher taxable income and exposure of deferred tax assets to inflation. Now, looking at our performance for the second quarter, starting with slide seven. Total assets increased sequentially above inflation and significantly above industry growth, with deposits also expanding considerably above the industry trend. Our effective assets and liability management allowed us to leverage the higher spread of short-term central bank securities and maximize NIM in an increasingly volatile environment. Our short-term and many more. The growth in public sector deposits increased 16% sequentially, driven by growth in public sector deposits, corporates and the positive impact from the 13th salary. Moving on to slide 8. Total lending lacked inflation and the industry trend reflecting our prudent approach, together with over a week credit demand. As a result, total lending fell As we continue to prioritize high-value customers, particularly loans to payroll, SMEs, and middle-market customers, consumer finance customers continue to seize share of total loans. Moving on to slide 9. The total NPR ratio declined to 2.5% in the quarter, one of the lowest levels ever as we maintained tight credit scoring criteria and Healthier Loan Meets, as I mentioned earlier. Early delinquency in turn improved sequentially. All segments contributed to the lower NPR ratio. Moreover, the sale of a delinquent consumer loan portfolio together with the upgrade of the corporate customers to stage two from stage three contributed to bringing the coverage ratio to 148% up from 116% in the prior quarter. Now please turn to slide 10. That financial market increased 20% sequentially to over 48 billion pesos in the quarter. Higher investment portfolio volumes, along with increased returns driven by sustained interest rate hikes following rising inflation, contributed to higher NIM in the quarter. Expanding 470 basis points sequentially The high level of NIMH continued into July and August. As shown on slide 11, the efficiency ratio for the quarter improved to 62.5% from nearly 72% in the prior quarter and just over 81% a year ago. This sequential improvement reflects revenue growth of over 16% coupled with were adjusted ahead of inflation. Expenses for the first half of the year decreased to close to 7% when revenues were up 9%. Moving on to capitalization on slide 12, we continue to build capital in the quarter with our tier one ratio Thank you very much. Taking into account the recent macro trends discussed by Patricio, we have revised our perspective on the following line items. With respect to asset quality, although MBL is at very low levels, we now anticipate net cost of risk for 2023 to range between 4.5% to 5%. This is about the cost of risk for first half 2023 and many more. In a higher interest rate environment and given the good year-to-date mean performance of We expect NIM for the year to remain similar to the level reported in the first half. In terms of fees, in the current context, we now expect softer insurance fees in real terms than earlier in the year. By contrast, brokerage fees will be higher this year as this business benefits from higher volatility. Our view on the bulk of bank fees to individuals remains unchanged, with these fees expected to reprice in line with inflation. With respect to profitability, we now anticipate ROE to remain at levels observed in the first half of the year, where before we expected a positive but lower ROE. Note that while ROE reported in the We are also increasing our TM1 ratio expectation in the range of 14% to 16% by year-end, up from 13% to 14% before. As a reminder, 100% of our capital remains hedged against inflation. Now we are ready to open the floor for questions. Ana, please go ahead.

Thank you, Mariano. At this time, we will be conducting the Q&A session. As a reminder, to ask a question, you need to be connected to the Zoom platform. And first, you need to raise your hand and press it again to withdraw your question. via the Q&A box. We will ask you to limit yourself to one question and then follow up, and then you can raise your hand again in another round. One moment while we call for questions. Our first question comes from Ernesto Gabilondo at Bank of America. Hi, Ernesto, how are you?

Hi, Ana. Thank you very much. Hi, good morning, Patricio, Alejandro, and Mariano. Congrats on your results and thanks for the opportunity. My question will be on your impressions on the economic and political outlook. After the primaries, we have seen Millet got the preference on the voters. So I would like to hear your thoughts. If Millet is elected president, he will likely need to make agreements to pass some of his campaign proposals, which I think could prevent a fast dollarization of the economy or to protect the central bank. However, at the same time, it could be a challenge to get into agreements to approve structural reforms, which I think are highly needed, especially when Argentina has inflation and interest rates above 100%. So I would like to hear your views on what are your first impressions on the economic and the political outlook going forward.

Thank you, Ernesto. I will refer the answer to Alejandro. Simply, I would like first to start by saying that, of course, these results were sort of a surprise for all of us and we did not expect a one-third scenario, which For each candidate, more or less, and this reflects uncertainty. But at the same time, the majority of Argentines are demanding a change towards a lower size of government, lower taxes, and more of a private economy creating jobs. But as you well said, we need, I mean, the next government will need teams. We need to make agreements because there are many structural changes that need to be done in the country. And this is quite a challenging scenario for next government.

Alejandro, do you want to add? Yes, good. Good morning, Ernesto. Thank you for your question. I think that basically the surprise in the actual outcome has introduced a greater degree of volatility than we've seen in the markets. However, having said that, the levels of deposits in pesos and dollars have remained pretty stable and the devaluation of 22% followed by an increase from 97% to 118% in the reference peso interest rate are trying to anchor future expectations of inflation. And judging by the ROFEX contracts we saw as of yesterday, this could hold up to some point in September or the middle of October. That is that after an initial turbulence, the guidelines of the government by which with these two movements, they would try to anchor the future devaluations and future increases in interest rates up to October, it seemed to be, as of now, reasonably in line with what the government would like to happen. Having said that, what we saw is that the gap with the financial exchange rate moved up, moved and maintained the 100% gap and this will create a pass-through situation and therefore we are expecting inflation over the next months to go into the double digit zone for August and September for sure. Now going back to that's overall as what we see going on with the macro, if you extend that beyond October, we think that the government will do everything in its hand, in its reach to avoid further devaluations and having reached an agreement with the IMF and having some boost Even if used to pay back debt in our central bank reserves is a help in that direction. And therefore, we think that they will try to definitely avoid further devaluations after October. But there is a chance that that might happen when you look at the rate of inflation that we expect. In terms of what would happen with Millet becoming elected, I think you're quite right in terms of alliances. If his performance at the ballot box in October was similar to the one he had on August 13, he would get roughly 40 representatives in the House of Representatives and eight senators, and that clearly is Very far from the majorities needed to pass legislation. Therefore, he would go into alliances, which would probably make it more difficult to move too quickly into totalization or changing the charter or even eliminating the central bank. We think that he probably prioritized together with his allies a very quick Thank you very much. Thank you very much. To pass through Congress, we think that on many areas, for example, labor reform, there will be a consensus in moving forward. And probably the most radical of his proposals will take longer, something that he and his team more recently have been acknowledging that will take a little bit more time. and require a little bit more of understanding of the situation they get before they change government and understand what the situation that they're receiving is. I hope I've given you sort of a broad brush answer to a rather complex

Yes, no, no, thank you very much. Just kind of a follow up in terms of a potential dollarization of the economy. I believe Bullrich is also proposing to dollarize the economy, but at a much lengthier pace now when compared to Millet. But I think both of the candidates are going into that direction. So if we go into this dollarized economy, what could be the impact for the Argentine banks? And what is your current strategy in paper linked to inflation and dollars at the moment?

Sure, I can take a short and then if Patricio and Mariano can answer. First of all, our information about what The Bullrich team is looking into this. They've been talking more of a bimonetary economy rather than going full-fledged to dollarization. At least that's the information we have so far. Now, in terms of what the impact of dollarization would be on banks, we see positive and negative effects. On the positive side, what you would very quickly see is a sharp decline in interest rates. and therefore this sharp decline would probably create significant credit demand. Remember that currently credit to private sector as a percentage of GDP is close to all-time lows at around 7.5%. If you would like to have a proxy of what the upside could be, you could go back to the convertibility where it was close to 25%. A sharp decline in interest rates would probably boost demand and increase significantly from current levels credit demand of the private sector. You'd also see a very likely an extension of durations in these loans. And you would also see a much better functioning of the capital markets to provide long-term financing both to the market and to the banks. So all these would be actually very good effects, very positive effects. On the negative effects, one very important difference is that you lose the lender of last resort and the role of the lender of last resort in case of a financial crisis. And this would probably make banks, at least initially, very prudent in the policies that they have to whom and under what conditions they extend credit. I think that's like a broad brush summary of positive and negative effects. I don't know if Mariano or Patricio would like to add to that.

I would like to add a few other positive effects, but I, of course, building on what Alejandro said, I think another positive effect would be, there would be a dollarization, it would imply also more liquidity and for the banking system in the sense and a substantial growth in deposits because Argentines have the custom of saving part of their wealth abroad and then they would have the opportunity to invest in the deposit in Argentine banks. There's another thing also important I think that Thank you very much. Thank you very much. Thank you. If you look at what happened in the past 25 years, the only moment of consolidation, the real moment of consolidation, was when there was a crisis in 2002, a big financial crisis. Then afterwards, there were just some transactions in terms of M&A, but there were only a few of them. There was not a drive of consolidation. And I think it has to do a lot with a risk sensation from management of banks towards making potential moves. When you remove the currency effect and you have, let's say, dollar deposits, I think it's a major change and that major change could lead to

I think you made very interesting points. Just thinking if we have this dollarized economy, as you mentioned, that could help to have lower rates and to improve the lending activity in Argentina. How should we think about next year if that happens, considering that this year most of the Argentine banks have benefited a lot from the asset liability management and investing in the leaks, passes, in government paper. So how do you think that will be sustainable for next year?

I think that with consolidation at a certain point in time, there will be, I'm sorry, with the fiscal consolidation and fiscal normalization at a certain point in time, there will be a pickup in loan demand and then the The assets that banks have today, particularly on central bank securities, they will be transformed into loans, which is very healthy, by the way. Do you want to build on this answer?

Yes. Hello, Ernesto. I think for next year, we will see at the beginning more or less what is happening now. Until the macro stabilizes, we will most probably see high levels of inflation, high levels of interest rates. and many others. In this context, what we believe is that we will see a pickup in low demand, first from the corporate sector and then from individuals, which will in turn replace So that will allow us to replace the financial margin generated or obtained from central bank notes to financial margin obtained from loans, which would be our main business. Remember that and many more. We are now at a very high level and similar to the industry because all banks are doing the same. We are capturing deposits and investing in the leaks and treasury bonds. So what we expect for the mid-term is that the leaks and most all central bank instruments, leaks and repos will be finally replaced Long-Term Neem.

Perfect. Thank you very much. You're welcome.

Thank you, Ernesto. We have a second question now, a new question from Carlos Gomez-Lopez. Hi, Carlos. How are you? I'm sorry. Please, Carlos, go ahead.

Hello. Good morning. Can you hear me?

Yes. Perfect.

Okay, very good, thank you. So you talked about the surprise in the past elections. I've been surprised by the good results of the banks in this second quarter. And I was wondering, and it applies to all the banks, right? All of you have had a particularly good second quarter. Should we understand that there is some element of Thank you, Carlos. Please, Mariano.

Yes, sure, as you said, this border was somehow extraordinary, but nonetheless, we are seeing similar memes and spread during So we will probably see a third quarter still probably in line with the second queue, but more probably stabilizing in the fourth quarter. So maybe this is not the level of express that we expect for mid or longer term, but it still has some time to run, particularly into the third quarter.

I would also like to add that the swing factor that you have seen in our case also reflects all the structural changes and consolidations that we have been conducting over the past year by basically benefiting from the fact Also, we've been doing, I think, a pretty good job in terms of consolidating branches that are one close to the other. And we have built digital capabilities today that expand the footprint and we can open individual accounts or enterprise accounts out of our branch network. And so we are we are very happy on that. And so we are sort of we have we are preparing the company to for the next for for a stabilized economy and preparing for growth again.

Okay, thank you. And no, it is true. The gap in profitability with the other banks is narrower. So again, my question will refer to all the industry, because all the industry has been quite profitable. But you're right, Supervielle has gotten closer to the other banks. There's no question about that. If I can follow up a little bit, going into 2024 and 2025, and I know that you wish you knew, like all of us did, But realistically, I mean, it seems reasonable to expect that there has to be some type of adjustment, of real adjustment, of the variables becoming more real, the foreign exchange, the tariffs, everything has to adjust, has to go back to a more normal level. From the outside, that would seem contractionary, and therefore that the next, I would say, year, year and a half, might be tough. Now, that's one perspective. How do you see it and how are you positioning the bank for the next two years?

Alejandro,

We are focusing on middle to high income individuals on one hand and trying to give them the best digital experience. We are also focusing on SMEs and we're making good progress there as we do significant cross-sell and innovation in those parts. Now, in terms of the impact of the stabilization plan, We think that initially it will be recessionary. We are imagining 2024 with a decline in GDP of roughly 2.5%, 2.3%. And that will probably affect certain customer segments that are linked to consumption.

But at the same time, two or three very positive things and many more are exposed.

One is a significant change in the commercial balance for the energy sector. As you are probably aware, we are going from a deficit in our energy trade to a very significant surplus, which will probably be heightened towards the second half of next year. And we also have significant growth and investment in mining And at the same time, the impact of the drought will have gone, so you're likely to have a big swing also that will help you in terms of central bank reserves creating a difference estimated by some economists at around $20,000 million. All this will have An extremely positive effect towards the second half of the year on these sectors to which we are exposed. So the answer would be 2024 is going to be a very binary year. You're going to see a very complicated first half with high inflation and deep recession as interest rates go up, probably to control as best as possible. but then a second half with a significant change in expectations and being exposed to some of these sectors I mentioned should help us drive growth in the direction we want it because these are export-oriented segments that will have a significant advantage after the stabilization and the foreign currency adjustment. I would like to add on what Alejandro said

In all the sectors that Alejandro mentioned, we have started to grow more aggressively and we see also today already results that we are going above the market. So the decline that you were seeing in the first two quarters, we want to change this to grow. In terms of market share. But also, the other thing is that we have, if you look into our past history, a large part of the high NIMS was due to a big percentage of mid-market share in personal loans. and many more, due to our large segments of individuals that get their salaries or their pensions, particularly senior citizens. When inflation goes down, we will start to see again the effect of high names in personal loans, probably in the second half of 2024. And that will help us to resume growth, to get profitability from that side also. That I wanted to, that I think is, I don't know, you want to add something?

I can maybe just a brief summary on the very short term view. So how we are positioned to go through this upcoming month where we for sure are going to see a lot of volatility. Yes, we'll be interested.

So right now,

We are very liquid. It's important to highlight that we're very liquid both in pesos and US dollars. After the elections, for instance, we didn't see any reduction in deposits. In particular, dollar deposits were very stable, but we keep them with levels of liquidity of about 7%. 40% of our assets is in the leaks or reports with the central bank. Reports are one day. The leaks are 28 days, but they are issued every week. So they have a tenure of about 14 days on average. So that and adding cash on very short We have real estate, we have mortgages that are just by UVA, and we have treasury bonds that are just by CERN. by the inflation index. And then on top of that, we have also a position in treasury bonds that is more tactical, where we can be long in U.S. dollars. Remember that our position in U.S. dollar must be net, that's a net position of zero, but we can go long through dollar-linked bonds or dual bonds, which pay the higher of inflation or dollars. So that's... and also makes a profitability that will allow us to build capital for growth.

Okay. Technical question. The dual bonds, as you say, you can receive your payment in dollars or in pesos. They are counted as foreign currency or as local currency?

No, they are paid in pesos. The valuation is higher than inflation. They pay the difference in the exchange rate, but they are paying pesos and they don't count for the foreign currency position. So that's why we don't have a limit on those bonds because they are accounted for as if there were 100% pesos.

So effectively you can go long dollars through the dual bonds?

Correct. We can go up to 30% with total linked bonds and beyond that because they don't count in the foreign exchange position through dual bonds.

So is there a limit to the dual bonds?

No, there's no limit. Thank you, Carlos. We have a question from Rodrigo Níctor at Latin Securities. Hi, Rodrigo, please go ahead. Good morning, everyone.

In light of the

In the prevailing inflationary environment, we have seen a rise in terms of deposits as a proportion of the banking sector funding base and some deposits moving to the money market funds. So I also was thinking of Patricio's comment before. So do you think this can limit your margins once exposure to the public sector reduces? And then if you can provide us with a brief comment Juan Cuccia, Mariano Biglia, Matias Gonzalez Carrara

Regarding funding, as you said, more funds are being allocated by corporates and individuals to mutual funds or money market funds, mainly money market funds. So that's why savings accounts and current accounts in the industry, not only of our case, are growing below inflation because with so high rates of inflation, people and companies But on the other hand, we see a growth in deposits also from the institutional side. So that partially offsets the extremely high need that we will have if all funds will stay in saving accounts or current accounts. But as deposits are growing more or less in line with inflation, we expect That's not a big difference. So that growth in deposits allows us to keep margins quite at high levels. I don't know if I answered the first part of the question. So maybe Alejandro or Patricio want to comment on the second part.

Yeah, I mean, I think you raised the point of and many others. I think that when inflation is over 100% people, Argentines, they want to have certain protection for themselves. We believe that there is a threat, particularly, yes, of fintechs because they offer a very simple way of protecting their savings or salaries or whatever. We were the first bank in Argentina to have a simple way of investing in a very rapid way, seven days a week. You can invest or remove the funds from your investment any day of the week at any time. And this is a way of protecting because it's exactly what the fintechs were doing. And it's kind of strange that still we You don't see the bulk of banks that reacted to that, but I think that there will be changes. What we have done probably will be copyrighted by others at a certain point in time.

I don't know if you want to add. I was thinking the same. That was really helpful. Thank you.

Thank you, Rodrigo. We have a question in the Q&A box from Guido Bisocelo Atalaria. First, it says, which will be the turnover tax change charge, I'm sorry, in third Q23, considering you are not paying anymore? And what can we expect for the second half 23 in severance payments and early retirement charges?

Yes, Mariano. Yes, thank you for the question, Guido. Let me first take the part of the turnover tax. First, I would like to point out that it's not that we are not paying turnover taxes. We are not paying only in regards to LELICs and central bank instruments. As we explained during the presentation, these are monetary and other local governments. So that's why we stopped paying since April but we keep paying and other sources of revenue. So the tax revenue charge for the third quarter could be in line with the second quarter where we had already stopped paying on the leaks, but as interest rate increase our revenues and many more. Thank you. The turnover tax charge was 5.7 billion, so we would expect a bit more, slightly higher in the third quarter. And regarding severance payments and early retirement, We will probably increase a bit during the second half of the year because we keep through the merge of branches and all the Thank you very much. Thank you.

So this was the last question. We have reached the end of today's Q&A session. Thank you for joining us today. We appreciate your interest in our company. We look forward to meeting more of you over the coming months and providing financial and business updates next quarter. In the interim, we remain available to answer any questions that you may have. Have a good day.