Banco De Sabadell Sa Ord

The presentation will be given by our CEO, Cesar Gonzalez-Bueno, and our CFO, Leopoldo Alvear. They will cover the main highlights and details of the commercial and financial performance in the second quarter of the year. The presentation will be followed up by a Q&A session. We have a schedule around an hour and 15 minutes for the whole session. Let me now hand it over to our CEO, Cesar Gonzalez-Bueno.

Thank you Gerardo. Good morning everyone and welcome to Sabadell's second quarter 24 results presentation. I would like to start by sharing our view on Banco Sabadell's profile, its performance and its prospects. Sabadell is a simple, low-risk and increasingly profitable bank with further value to be unlocked. Why do we say that? First, profitability keeps improving and has not peaked yet. Even though our return on tangible equity has increased significantly over the last three years, it hasn't reached its peak. As a matter of fact, we have improved again our ROTE, Return on Tangible Equity, guidance for 2024 and 2025. Second, our improved profitability is sustainable over time, and we have high visibility on future earnings. On the one hand, 97% of our profit comes from Spain and the UK, so we have negligible exposure to volatility emerging markets. On the other hand, we have clear levers which support our profitability looking forward. Third, our commitment to shareholders' remuneration is strong. As a proof of that, an interim cash dividend will be paid in October 24. Moreover, we have improved the prospectus for capital distribution over 24 and 25 results. Fourth, the transformation deployed over the last three years will keep delivering results in the upcoming future, and we are already boosting growth. We are very proud of our top-performing SMEs franchise, recognized by the market and by our customers as a leading franchise. Transformation has significantly improved our capabilities and value proposition in all business units, as we have repeatedly shared with you over the last three years. As a result, commercial momentum is strong and volumes are growing steadily with good margins and improving asset quality. All in all, very positive momentum and great prospects for Banco Sabadell. Moving to the second quarter results in slide 5. Let me share some key messages of the quarter. First of all, commercial activity is performing well. As an example, performing loans grew by 3% quarter on quarter. Secondly, net interest income increased by 2.5% quarter on quarter. Customer margin currently stands at 3.18%, an increase of nine basis points in the quarter. Thirdly, asset quality remains strong, with a remarkable 5% increase of NPAs while increasing coverage by one percentage point in the quarter. This asset quality improvement is impacting positively on the total cost of risk currently standing at 46 basis points. Fourthly, group net profit reached €791 million in the first half of 2024. DSB contributed with 95 million euros. On the back of this solid progression, our return on tangible equity stood at 13.1%, and our common equity tier one fully loaded ratio reached 13.48%, increasing by 18 basis points in the quarter. Finally, as I will explain with greater detail, Later, the Board of Directors has decided to increase our payout ratio to 60% and has also approved the distribution of an interim dividend of 8 cents of euro per share. On slide six, evolution of performing loans. Loans increased by 2.9 quarter on quarter, 2.7 at constant effects. We observed this increase across all geographies, segments, and products. Moreover, the good performance in the quarter supports a turning point in the annual trend. In this regard, lending volumes increased by 0.9% year-on-year or 0.5% at constant effects. On balance sheet funds, at the right-hand side of the slide, increased by 1.1% in the quarter. Of balance sheet funds, increased by 3.4% in the quarter, driven by positive net inflows and market performance. All in all, total customer funds increased by 1.6% in the quarter and by 2.1% in the year. Slide 7. Lending origination to individuals in Spain. New mortgages in Q2 increased by 65% quarter-on-quarter and 37% year-on-year. In the first six months of 2024, new mortgages increased by 14% compared to 2023. Let me remind that early-stage applications in Q1 already anticipated this significant increase of mortgage origination in Q2. As you can see, applications keep growing in Q2, so we expect our positive momentum in new mortgages to continue. I would like to emphasize that we are growing in a healthy way, as key indicators show. The risk-adjusted return on capital, RAIROC, of new mortgages remains stable in the quarter. New mortgages at fixed rate increase, and both loan-to-value and affordability remain at low levels. Regarding new consumer loans, we continue to perform remarkably well. In the first half of 2024, new lending increased by 17% year-on-year. Front book yields in Q2 are at the same level than in Q1, and 86% of the origination comes from pre-approved loans to targeted customers. To sum up, strong and healthy growth in both mortgages and consumer loan origination. Now let's go to slide 8, lending origination in business banking. New loans and credit facilities in Q2 increased by 23% quarter on quarter and by 26% year on year. In the first half of 2024, they increased by 35% compared with 2023. Working capital financing at the lower left-hand side of the slide increased by 8% quarter-on-quarter, while it's a little bit below 2023. As we explained in the previous quarter, we are observing stabilization here after posting relevant increases during 2022 and the first half of 2023. As I just explained, for mortgages and consumer lending, there is a strong and healthy growth in business banking new lending. The railrock of our portfolio remains stable, and the percentage of new lending granted to target customers keeps increasing. Looking forward, demand for mid- and long-term borrowing may be structurally higher. First of all, we observe a healthy starting point for the Spanish business sector as corporates and SMEs have undergone a huge deleveraging process over the past decade. Furthermore, the Bank of Spain is predicting that gross capital formation, a proxy of capex of private investment, will grow at positive rates above 2% in 2024 and at the following years. In brief, we are currently more optimistic on business lending volumes than we were at the beginning of the year. Moving to slide 9, in the first half of 2024, cart turnover increased by 7%, while point-of-sale turnover increased by 10%, compared to the previous year in both cases. Payment-related services continue to perform remarkably well. In the bottom of the slide, we can see the evolution of customer funds in savings and investment products in Spain, which reached a total of 60.6 billion euros in June 24. This represents an increase of 1.9 billion euros in the quarter, mainly driven by 1.4 billion increase in off-balance sheet products. Having reviewed the performance of payment service in slide 10, I would like to update you on the status of our agreement with Nexi. All regulatory approvals have already been obtained and the deal will be closed after the hostile tent offer ends. Thus, we expect the closing and the capital gain to take place in 2025. Let me highlight that postponing the closing of the deal will have no negative impact in the 24 P&L beyond the aforementioned delay in the accounting of the capital gain. In that sense, I would like to remind you that we never took this capital gain into consideration in any of the guidance we have been sharing with you, nor it is now included in our 2025 plan. Our guidance is always provided on the back of recurrent profits. In slide 11, we see the performing loan book XDSB. Performing loans in Spain grew by 3% quarter on quarter, with all products and segments growing in the quarter. Mortgage lending has now grown, supported by the strong levels of new lending we reviewed just a minute ago. Year on year, the mortgage book will still deleverage, but at a slower pace than we have been seeing in recent quarters. The stock of consumer loans maintains the positive momentum observed in previous quarters. The SME and corporate loan book also increased in the quarter due to the high dynamism we have just discussed. As a result, year-on-year variation is already flat. Finally, other lending is positively impacted by the seasonal effect of the Social Security payroll, which will revert next quarter. In the right-hand side of the slide, our international business loan book grew significantly with quarterly and yearly growth in our three international businesses ex-TSB. Moving on to the UK, in slide 12. Strong new mortgage lending keeps driving growth of the lending stock, which grew by 0.3% in the quarter. On the liability side, the gradual trend of customer funds switching from current accounts to savings accounts largely explains the increase in the cost of deposits. Cost of deposits at TSB closed the quarter at 152%, five basis points above last quarter's cost. However, this increase is much, much lower than in previous quarters, especially the ones of 23. In slide 13, we review TSB's financial performance. TSB contributed €49 million to Group's net profit this quarter. Accumulated contribution of the year stands at €95 million, equivalent to half of its contribution in 2023. NII grew by 1.3% on the quarter. Positive dynamics are gradually kicking in, mainly due to the larger volume in mortgages and to the structural hedge, which is just starting to increase its contributions. On a first half of the year comparison, NII decreased year-on-year as it bottomed in Q4-23, but it has already started to pick up. Fees are down year-on-year in the first six months, affected by a one-off this quarter related to cards. Total recurrent cost decreased by 2.7% year-on-year, in line with our guidance of 3% reduction for the whole of 2024. Provisions in the first six months add up to £24 million, with a total cost of risk of 13 basis points. In terms of solvency, TSB has achieved a 16.3 quartier one fully loaded. Return on tangible equity for TSB stands at 7.5%. Adjusted to the benchmark capital ratio of our UK peers, that would be equivalent to 8.9%. As we have said earlier, this year, 2024, is a transition year for TSB, so TSB is performing as expected. However, the prospects are very positive, as we are explaining in the next slide. If we go to slide 14, we present the main levers for TSB to improve its profitability in 2025. We see TSB's return on tangible equity back to double digit in 2025 and from then onwards. Regarding NII, the structural hedge shall contribute with a delta above £100 million in 2025 and even higher in 2026. This significant tailwind, along with increased volumes, should lead NII to grow at a high single digit in 2025 and 2026. On the cost front, TSB will benefit from £53 million in savings, 77% of which are due to materialise in 2024, with the rest coming through from 2025. This leap forward in cost contention, together with the evolution of NII, shall bring TSB's cost-to-income ratio closer to its peers. In terms of provisions and impairments, we see no pressure on cost of risk. It shall remain at 20 basis points, a stable level. We can consider 2023 provisions as the run rate going forward. In slide 15, we present a summary of our financials on a group basis. We recorded net profit of 483 million euros in the quarter, which drove our half-year net profit to 791 million euros, 40% more than last year. These results entailed a return on tangible equity of 13.1%. Our core results, which include NII plus fees minus total recurrent costs, grew by 11% year-on-year. In this regard, NII performance was very positive. It grew by 2.5% in the quarter and by 9.8% in the first six months of 2024 compared to 2023. Provisions decreased by 16.9% in the year, underpinning by improved asset quality and benign macroeconomic environment. In terms of solvency, our capital ratio stands at 1348%, which implies a solid increase of 61 basis points in the last 12 months. And finally, I would like to emphasize that today we are announcing an increase of our payout ratio to 60% and the distribution of an interim cash dividend of 8 cents to be paid on October 1st. With this, let me hand over to Leo, which will cover the financials of the bank in more detail.

Thank you, Cesar, and good morning, everyone. Now, moving on to the financial results and starting with slide 17, we show the quarterly and half-year results evolution. Net profit in Q2 reached 483 million euros, having increased by more than 55% Q on Q. When added to the first quarter results, half-year profits stand at 791 million euros, more than 40% higher than last year's first half figure. The aforementioned net profit represents 12-month rolling return on tangible equity of 13%, 13.1%. In terms of P&L, we will take a closer look at the figures in a minute. But before we do, I would like to say that overall, the quarterly evolution evidences the good momentum of the business. As we see, NAI grew 2.5% in the quarter, with a year-on-year growth close to double the rates at 9.8%. This evolution was primarily driven by higher customer margin in all geographies, as well as increased average volumes at group level. Despite the expected pressure on fees, core banking revenues grew at 1.6% in the quarter and 6.8% on a year-on-year basis. Total costs increased by 1.7% Q&Q, while the year-on-year 2.5% increase remains within our guidance for the year. Taking a look at our core results, this is the addition of NII plus fees minus costs. They grew 1.6% Q&Q and 11% in the year. These core results, combined with a continued downward trend in provisions consistent with enhanced risk management actions and benign context for asset quality, as we anticipated, drove the aforementioned increase in net profits. We will now go through different P&L items in more detail. Starting with NII in slide 18, group NII increased by 2.5% on a Q&Q basis and shows a sound year-on-year growth of 9.8%. On the top right-hand side, you can see the drivers that explain the quarterly evolution. Moving from left to right, customer NII was by far the main driver, contributing €48 million. Within it, customer margin added €34 million, explained by the repricing of the loan book, and specially, by a very controlled cost of deposits. Volumes had also a very positive impact in the quarter, experiencing an acceleration that brings the contribution of 13 million euros. This supported the good dynamics observed in the loan book that Cesar mentioned earlier, and FX was marginally positive and added 1 million euros. Alcohol contribution has been neutralized by lower contribution from the excess liquidity. In terms of alcohol, we had an increased fixed income portfolio in the quarter by 0.5 billion. And this, along with the management of some hedgers, has allowed us to further reduce NII sensitivity to downward rate movements. The higher hostel funding costs are explained by new issuances, totaling more than €3 billion YTD, together with fewer maturities in the quarter. And finally, other items represented an impact of €4 million. Moving to the following slide, we show that NII keeps performing better than what we estimated at the beginning of the year. As we have seen in the previous slide, one of the main drivers of this NII outperformance is the evolution of our customer margin. Customer margin at group level improved by nine basis points in the quarter, supported by an increasing loan yield and, very important to note, a cost of customer funds that reduces one basis point in the quarter. Loan yield gained eight basis points, still driven by the last distribution contributions from Euribor repricing, but also underpinned by the rollover of fixed SME rate loans into new higher yields. On the right-hand side of the slide, you can see that Spain is also contributing positively in terms of customer margin, driven by a loan yield that gains three basis points and a cost of deposit that only increases one basis point. This contained cost of deposit evolution in Spain. It's driven by lower front book prices below back book yield, as well as low migration from side accounts to term deposits. This positive performance of the customer margin, both in Spain and group level, allowed to offset the negative contribution from capital markets and ALCO, explained earlier, and drive NIM to business point ahead to 2.1%. With all this in mind, with Javier behind us, together with the observed growth in dynamics and volumes, we revised upwards our guidance and believe that Group NII in 2024 will grow by mid-single digit. Moving on to the next slide, we show why NII will keep on growing in 2025. As usual, we have split NII in three different reprising blocks. First, customer NII excluding TSB. Secondly, the contribution of capital markets. In other words, ALCO, wholesale funding, and excess liquidity. And third, TSB's evolution. We still see the ex-TSB customer margin contributing negatively, but... we see it more favorable than last quarter due to several factors. On the one hand, the interest rate environment is more supportive than what we had taken into account in our budget. You can see that current e-river levels for 2024 and 2025 are higher than what we had budgeted at the beginning of the year. And on the other hand, we see commercial activity substantially more dynamic than what we had budgeted for the year. And beyond this contribution in 2024, this shall be especially supportive for 2025's NII. Year-to-date, we are growing our performing loan book by 4%, whereas we have budgeted a negative evolution in 2024 and a very small growth for 2025. With regards to ALCO, wholesale funding, and excess liquidity, we continue to see them overall as positive contributors in NII in 2025, as we further reduce our NII sensitivity to interest rate movements. And finally, NII TSB should increase in 2025 by a high single digit, mostly driven by higher contribution coming from the structural hedge. That would imply an incremental contribution in 2025 north of 100 million pounds. This positive lever will also be supported by positive loan growths, thus offsetting other potential headwinds. To conclude, on the back of all these moving parts, we are upgrading our 2025 guidance and now estimate that NII in 2025 will be higher than in 2024. Leaving the NNI line, let's move to fees. First, let me remind you as a context that in 2023, Banco Sabadell, excluding TSP, was the Spanish leader in terms of fees over either RWAs, business volume, or total assets. The line posted a decrease of 1.4% in the quarter and a decline of 3.3% on an annual basis. This performance in the quarter was mainly attributable to €5 million negative impact from card costs treatment in TSB. Excluding this impact, fees would have been broadly stable in the quarter, driven by a steadiness in credit fees and asset management fees and a slightly better performance of services. Finally, it is important to mention that these fees include a contribution from our merchant and client business. As explained by Cesar, the closing of the deal with Nexi will be postponed until the tender offer ends. Therefore, we will continue to receive fees for this activity, although, as you know, and we have guided before, this is a neutral impact in the bottom of the P&L. Maintaining the good perimeter implies an upgrade of guidance and pushes upwards from a mid-single-digit decline to a 3% decline. Now, leaving the revenue lines to one side and moving to costs on slide 22, this quarter, total cost increased by 1.7%. In our year-on-year terms, cost increased by 2.5%, well in line with our guidance for the year. As you can see on the right-hand side of the slide, the cost-to-income ratio improved this quarter half of the year by almost four percentage points when compared to the first half of 2023's ratio. Excluding TSB, the cost-to-income ratio stands at 42.2%. In this context, we are confirming our guidance for 2024 of 2.5% growth versus 2023's recurrent costs. In the following slide, we cover cost of risk and the other P&L items between pre-provision profit and profit before taxes. The group's credit cost of risk stood at 33 basis points supported by the good evolution of asset quality, as we will review later, the results of management actions taken in the past, and a supportive macroeconomic backdrop. Group total cost of rates for the quarter stood at 46 basis points, which implies an improvement, this is a reduction, of 9 basis points versus 2023's year-end, and is ahead of our expectations. Take a look at the breakdown of total provisions on the top right-hand side. From left to right, we can see that we booked €109 million of loan loss provisions, equivalent to the 33 basis points that I just mentioned. 10 million euros in real estate assets impacted by branch mergers that offsets recurrent foreclosed assets sold at a premium. 35 million euros of MPA management costs as a running level. And finally, other provisions which are mainly associated with litigations and other asset impairments, which stood at 27 million euros. Now, going forward, the more favorable macroeconomic context for household and companies, together with our idiosyncratic risk management actions, lead us to improve our guidance, as we now see that cost of risk should remain below 50 basis points, not only in 2024, but also in 2025. In summary, as we can see on slide 24, the risk management actions that were put in place in the last few years are already yielding positive results. Let me share with you the developments we have seen on the consumer loan portfolio, which was our first focus back in 2022. In 2021, we noticed that the default levels in our consumer loan portfolio were excessively high, and therefore we stopped this activity and undertook a review of the lending process. We deployed new models, refocused the whole business on a more pre-approved risk approach, and then relaunched the activity. A reflection of the success of these efforts is the reduction of cumulative default rates shown on the right-hand side of the slide. As you can see, consumer loan default rates have been declining consistently across vintages since 2021, driven by better discrimination of creditors within our risk origination models. Now, on the back of this success, we have replicated the process and strategy in other segments. Although it is still very early to appreciate the full impact of this new risk management approach, as it has only been in place for a few quarters, we can already see improvements in the profitability of default levels as the first half averages of the new lending across all segments are materially lower than in 2023. In this context, we believe that the improved credit risk profile of the new lending across segments will continue driving lower provisions in the future. Now, moving on, in the next section, I'll walk you through as a quality, liquidity, and solvency. In the first slide of this section, number 26, we take a look at the group's non-performing loans, which showed a material decrease of almost 5% in the quarter, bringing the NPL ratio down to 3.2%, while the coverage ratio increased by one percentage point to a stand at 60%. On a year-on-year basis, the stock of NPLs has decreased by 8%, proving that ASA quality has remained more resilient than anticipated. with figures for the half year looking substantially better than our budget. Looking at the exposures by stages and by coverage, on the right-hand side of the slide, our Stage 2 exposure as a percentage of the total loan book dropped by 82 basis points year-on-year, reflecting a reduction of more than $1.3 billion. We also managed to reduce the Stage 3 loans by around €450 million in the year, driven by a reduction of NPL entries, as well as more recoveries. Moving on to the next slide, we can see how stock of foreclosed assets has been reducing quarter after quarter. When we look at this development on an annual basis, the reduction amounts to 17% of the stock. 95% of these assets are finished buildings, while coverage remained broadly unchanged at 39%. During the last 12 months, 20% of the stock has been sold, with an average premium of 7%, which shows that these assets are properly marked to market in our balance sheet. Overall, total NPAs, including both NPLs and foreclosed assets, are down by 9% year-on-year. Our gross NPA ratios stand at 3.7% and 1.6%, respectively, improving both in the quarter and in the year. In other words, in the last 12 months, we have seen a significant positive evolution of all the asset quantity cycle. where MPAs were down 9%, while coverage was up 4 percentage points, while cost of raises coming down, among other factors, because the good development of the new vintages, which are expected to continue. Turning now to liquidity and credit ratings. As you can see, the group once again ended the quarter with a very comfortable liquidity position. Our LCR remains at sound levels, close to 200%, while our NSFR reached 146%. Loan-to-deposit ratio stands at 96%. Total liquid assets remain broadly stable at 59 billion euros, of which 44 billion euros are high-quality liquid assets. Moving on to the credit ratings, I would like to highlight the recent upgrade of our Fitch rating to BBB, underpinned by our position as an established SME franchise, by our strengthened profitability, adequate funding, and capitalization. Furthermore, S&P has upgraded our outlook from stable to positive, driven by the significant improvement in profitability by Spanish banks during 2023. Altogether, in the last three years, the bank has benefited from four notches uplifts and two outlook upgrades to positive from the rating agencies that cover us. Turning to the following slide, we can see our current embryo position. We are comfortably meeting embryo requirements in terms of both risk-weighted assets and leverage ratio exposure. And we're already compliant with both the absolute and subordinated requirements. On top of this, we have built a comfortable management buffer across all requirements, which eases our funding plan needs for 2024. During the first half of the year, we have printed north of 3.2 billion euros across the capital structure, including tiered tuitions, senior preferred, senior non-preferred, and a couple of cover bonds. Turning now to capital. With the publication on the 19th of June of the final capital regulation documents, CRR3 and CRD6, after the final approval by the Parliament and the Council, we can now update our view on the impact of Basel IV. With all the available information and on the back of the current balance sheet and P&L and capital models, we estimate now the impact for Sabadell to be 20 basis points. The initial impact, as you may remember, was to be 50 basis points. Let me explain the two main differences that bring this down to 20. Firstly, we had been conservative and applied LGD floor to the whole loan portfolio, including both the performing loans and the NPL's RWAs. The final CRR3 text clarifies that this floor is only applicable to the performing portfolio's RWAs. This has an impact of a reduction of 20 basis points. Secondly, the dynamics in balance sheet and P&L have reduced the impact both in credit and operational risk going forward, since part of this impact has already been anticipated in 2024. This represents a further reduction of 10 basis points. In total, the capital impact of Basel IV has been reduced by 30 basis points, or 250 million euros. This is to 20 basis points, and this impact, let me remind you, will be recorded in January 2025. Let me share with you our solvency position. At the end of June, our fully loaded CET1 ratio reached 1348%, having increased by 27 basis points year-to-date, of which 18 basis points were gained this quarter. When we look at this quarter's evolution in more detail, we see an increase of 44 basis points derived from organic capital generation, which more than offsets the establishment of the payout in 60% from the previous 50, the small impact from the fair value reserve adjustments, as well as higher RWAs in a context of loan growth in the banking book. From a regulatory perspective, the CT1 ratio stood at 1348% on a phasing basis, which implies an MDA buffer of 454 basis points. This level of CT1 places us already above the threshold of excess capital distribution. Finally, in terms of shareholder value creation, tangible book value per share increased by 14% year-on-year, including the distribution of 6 euro cents through cash dividends based to shareholders in the last 12 months. Moreover, we identified the impact of the 2022's share buyback program and the executed part of the 2023's share buyback, suspended after the tender offer, which are equivalent to 5 euro cents per share. Moving on, in the next section of closing remarks, I will walk you through the first two slides and then Teso will take the floor to the end of the presentation. I would like to recap on our new updated guidance for 2024 in slide 23. With two quarters already behind us and most relevant variables turning out to be better than our initial budget, we are upgrading some of our 2024 guidance. Looking at our financial performance, NII grew in the first six months of the year by more than 9% year-on-year, and this makes us more confident that we will outperform our initial guidance. Therefore, we are raising our NII growth target for the year from circa 3% to mid-single-digit growth. Fees decreased by 3.3% on an annual basis. Due to the temporary delay of the Merchant Acquirement Partnership, we revised our year-end guidance upwards from a mid-single digit to a 3% decline. We reported total recurring costs increase of 2.5% this quarter, and we confirm this target for year-end. Total cost of risk for the first half reached 46 basis points, and we believe it will end the year below 50 basis points, which represents an improvement of 5 basis points versus our latest guidance. All this has brought our return on tangible equity up to 13.1%, which is already above our initial year-end profitability target. And therefore, we are grading our return on tangible guidance to above 13%. And finally, also very important, we see this profitability sustainable. And that's why we are also guiding our return on tangible in 2025 to be above 13%. This guidance upgrade is what we have been doing in the previous years. Once we gained confidence on the macro uncertainty, it was reduced, as we can see in the next slide. At the beginning of 2022, we guided for return on tangible north of 6%, which we upgraded six months later to north of 7%, and we finally ended the year with a return on tangible of 7.8%. Last year, 2023, a similar story. At the beginning of 2023, we provided a guidance for year-end above 9%, and for the next year, 2024, higher than in 2023. During the following quarters, we improved twice this guidance, as we had visibility and confidence that we could beat them, as we finally did. In January this year, we provided guidance for 2024, but we didn't give it for 2025 because there was significant uncertainty on the evolution of interest rates. In April, once interest rate curves stabilized and there was more visibility, we upgraded 2024's guidance as well as guided for 2025's profitability. Finally, this quarter, we have greater guidance again for 2024 and 2025, once we have seen the evolution of rates and commercial activity during the first half. We are already meeting the target set for the year, with Q2's return on tangible at 13.1%, and we have confidence that we will be able to meet or even surpass it, as we have done in the last three years. And with this, I hand over to Cesar, who will conclude our presentation today.