B3 Sa Brasil Unsp/Adr

Good morning, ladies and gentlemen, and welcome to the audio conference call of B3's earnings result for the second quarter of 2024. We would like to inform you that all participants will be in list and only mode during the company's presentation. After the company's remarks are completed, there will be a question and answer section when further instructions will be given. As a reminder, this conference is being recorded and broadcasted live via webcast. The replay will be available after the event is concluded. I would now like to turn the conference over to André Milanes, B3 CFO, who will be joined by Fernando Campos, Investor Relations Associate Director. Please, André, you may proceed.

Thank you very much. Good morning, everyone, and thanks for joining our call for the second quarter results. A quarter that reinforces the efficiency of our business model where we saw a 10% growth in our total revenues, double-digit growth in all business lines of setting the challenging scenario that we still saw for the cash equities market. I think I'm going to start with a few highlights in terms of the performance of this quarter. The first one, the listed derivative segment, where we saw a 10% growth in revenue. reflecting a more volatile scenario in terms of interest rate curves, but also reflecting some pricing adjustments that we've introduced last year, which have helped to increase volumes, especially in the derivatives involving Brazilian interest rate contracts. Another highlight, I think, goes to the OTC market, to the good performance that we saw on the fixed income market, where we saw a 16% growth in revenues, mainly driven by the good moment that we are seeing in terms of the local DCM market in Brazil. Inequities. The 11% decrease in the average daily traded volume, as we discussed, still reflects this challenging macro scenario, even though that was partially offset by the good performance that we saw in the derivatives of indexes. I think here it is worth highlighting the good performance that we have seen on other cash instruments other than equities, such as BDRs, ETFs, and real estate investment funds, which during this quarter accounted for 13% of the ADTV. Compared to a percentage of 10% in the second quarter of 23, demonstrating the relevance of our product development agenda and its importance in helping to stabilize, to maintain the ADTV performance. around the level that we are seeing, which has been the case for the last six months. And we are seeing that ADTV almost stabilizing around that level of 24 and 26. So I think here, even though It doesn't seem that we're going to see any short-term trigger to drive these volumes much higher. At least we are starting to see these volumes stabilizing at this kind of level, even though we are still facing this more challenging scenario for equities. And I guess in other segments, the infrastructure for finance posted a 34% growth, reflecting a more positive scenario for the auto industry and for vehicle financing activity, as well as the impact of the Desenhalla program, which ended in last May. Also in technology, data and services, we saw a growth of 11% with the consolidation of Neurotech and higher revenues coming from our OTC platforms. Fernando will talk now about more the operational performance, and I'll come back later to discuss a little bit about other topics as well.

Thank you, André. Good morning, all. Starting with the cash equity segment, we saw ADTV of $24 billion in cash equities, which was an 11% decrease when you compare it to the second quarter of 2023, but it was almost stable to the first quarter of 2024, and pretty much in line with André's comment earlier. on the segment. The turnover was 135%, which was lower than the 161% that we saw in the second quarter last year, but higher than the 128 to 28 in the first quarter, 24. Regarding the fees, the increase that we saw compared to last year was due to the lower non-tariff volumes, mainly exercise of options, and less the lower participation of market makers and liquidity providers in the volumes. A highlight in the segment, as Andrea mentioned, was the 18% growth in the ADV of indexes contracts, which helped to offset the lower cash equity volumes. Going to the listed derivatives, which was the highlight of the quarter, we saw an all-time record with an ADV of 8.2 million contracts, which was a 20% growth. compared to second quarter last year, reflecting mainly the 31% growth in the BRL interest rate ADV. RPC decrease also influenced by the BRL interest rate contracts, mainly due to the higher volume and higher concentration of contracts with shorter maturities and the adjustments in price, as Andrea mentioned. OTC, we saw positive performance in all lines, starting with the fixed income. The outstanding balance of bank funding instruments grew by 26% compared to the second quarter last year. But in here, obviously, we have the T-time deposits, but it's worth noting the growth in RDB, CPR, and LCI as well. And here is worth highlighting that despite the hot corporate debt market that we are seeing recently, we had a relevant amount of leasing debentures maturing at the end of 2023, which impacted the outstanding balance in comparison of this product. In OTC derivatives, issuances grew by 20% and the outstanding balance grew by 14% compared to the second quarter of 2023. In the infrastructure for finance, the improvement in the auto industry and the credit market for this segment, it reflected on the number of finance vehicles growing by 26% compared to the second quarter of 2023. And finally, in technology data and services, I think here it's worth highlighting the growth in OTC access, a growth of 7% compared to the second quarter of 2023. And that this grows with the funding industry. And it's also worth noting that the data revenue includes Neurotech revenue, which was 32 million reais this quarter. And when compared to the 12 million reais that we saw in the second quarter last year, which was the quarter that Neurotech was incorporated only, but was co-incorporated in May. So I'm returning the call to André to talk about the other highlights and some strategic advances.